Utility & Infrastructure Investment for Economic DevelopmentMarch 20, 2015

VEDA Spring ConferenceDOMINION RESOURCES

Do

min

ion

Reso

urces, In

c.Method of Service

2

1. Involve us as early as possible in the site selection process so that we can determine the best method of service.

2. Determining the proper method of service helps optimize electric service.

Method of Service is determined by several factors:

1. Electrical load (DEMAND in kW and USAGE in kWh)

2. Nature of the prospect’s electrical load

3. Infrastructure available in proximity of a particular site

4. Cost and practicality (4:1 non-fuel revenue credit)

Do

min

ion

Reso

urces, In

c.

3

Method of Service

When a business requires new electric service, please keep in mind….

Loads greater than 15 MW generally will be evaluated to determine if service is provided directly from transmission system (115 kV or 230 kV).

Special service requirements, such as the need for alternate or dual feed service, will require additional charges.

Do

min

ion

Reso

urces, In

c.

4

How we Develop a Rate Quote

With some understanding of the customer’s operations, the utility professional can help determine load factor, which is helpful in estimating power cost.

We need:

Peak demand in kW (maximum rate at which power is consumed)

Consumption in kWh (amount consumed per month)

Delivery voltage required

Approximate hours of daily operation (if available)

Do

min

ion

Reso

urces, In

c.

5

Economic Development Site Info

Do

min

ion

Reso

urces, In

c.

6

Economic Development Site Info

7

Do

min

ion

Reso

urces, In

c.Economic Development Rider

Virginia SCC passed an Economic Development Rider (EDR) in June 2013 allowing for qualifying industrial customers (including data centers) to receive a 5-year discount adding up to approximately $1M depending on load.

7

Do

min

ion

Reso

urces, In

c.

8

About Dominion Virginia Power: Balanced, Diverse Fuel Mix

37%

2%

41%

18%

2%

Coal

Oil

Nuclear

Natural Gas

Renewables

2014 Electric Production by Fuel*

*Total production by regulated units. Excludes non-utility generation (NUG) under contract.

Do

min

ion

Reso

urces, In

c.

9

Dominion Industrial Rates Consistently Below the National Average Since Reregulation

Source for national average: Edison Electric Institute, Typical Bills and Average Rates Report, industrial, 1,000 kW demand and 650,000 kWh usage, monthly, annualized for rates effective January 1 and July 1, of each respective year. National average for July 2014-July 2015 reflects rates in effect July 1, 2014 – latest data available. .

July 2008: Price controls on fuel

factor expired

December 2008: Base rate cap expired

Dominion National Average

Cents per kWh -average

*Rate for April 2015 reflects generation rider adjustments,interim fuel reduction (including write-off of $85 million in deferred expenses)

Dominion Virginia Power’s typical industrial ratewill be 37.5 percent below the national averageas of April 2015

Do

min

ion

Reso

urces, In

c.

10

Dominion Industrial Rates:Lower than Statewide Averages in any CNBC “Top 10 for

Business” States

5.5

6.2 6.36.6 6.7 6.8 7.0

8.2 8.2 8.2

0

1

2

3

4

5

6

7

8

9

Dominion

Virginia Power

North

Carolina

Texas Utah North Dakota Minnesota Washington Colorado Nebraska Georgia

1476325

2008 rate Was 6.2

(¢/kWh)

Source: EEI “ Typical Bills and Average Rates Reports: Summer 2014” for rates effective July 2014 (based on 1,000 kW demand, 650,000 kWh monthly usage)

NE: U.S. EIA: “Electric Power Monthly: September 2014” for rates effective July 2014

DVP: Company information for rates effective April 1, 2015

CNBC rankings as of June 2014 shown in red. Virginia was tied for eighth place.

ATLANTIC COAST PIPELINE

Estimated

Cost

Ownership

Structure

Projected

Timeline

$4.5 - $5.0 billion**

Dominion Resources* 45%

Duke Energy 40%

Piedmont Natural Gas 10%

AGL Resources (Virginia Natural Gas) 5%

JOINT VENTURE AMONG THE FOLLOWING:

Submit FERC pre-filing October 2014

File FERC application Summer 2015

Receive FERC Certificate Summer 2016

In-Service Late 2018

* Dominion will construct, operate and manage the pipeline

** Excludes financing costs

11

Ownership, Structure and Timeline

PROJECT NEED

The ACP pipeline would improve the supply of natural gas to:

Utilities looking to meet new U.S. EPA clean air regulations.

Local gas utilities searching for new, less expensive supplies for residential and commercial customers.

Industries interested in building or expanding their operations.

12

PROJECT DETAILSLength: Approximately 554 miles

Pipe: West Virginia: 42-inch diameter Virginia: 42-inch diameter North Carolina: 36-inch diameterSecondary line: 20-inch diameter

Capacity: 1.5 billion cubic feet/day

Three compressor station locations: 1. Lewis County, West Virginia 2. Buckingham County, Virginia3. Northampton County, North Carolina

Route: A proposed route is being studied. Dominion is collecting data through surveys and consultations with landowners and other stakeholders to determine the best route with the fewest potential impacts to environmental, cultural and historical resources.

Secondary line

14

Do

min

ion

Reso

urces, In

c.

QUESTIONS!

Regulated Solar Initiatives - Overview

15

400 MW Utility-Scale Solar Virginia within 5 Years– Announced Feb. 2015

Up to 30 MW Solar Partnership Program – Approved Nov. 2012

Up to 3 MW Solar Purchase Program – Approved Mar. 2013

2 MW Community Solar Pilot Program – Filed Jan. 20, 2015

Schedule RG (not limited to solar) – Approved Dec. 2013

Dominion won Bureau of Ocean Energy Management’s competitive auction on September 4, 2013

– DOJ to perform auction antitrust review – 30 days

– Expect lease from BOEM early October

Area auctioned as a single block; supports up to 2,000 MW

Lease term of 38 years (5-year development & 33-year operations)

23.5 nautical miles 112,800 acres

1616

Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.

Next steps upon lease receipt:

– Execute lease

– File Site Assessment Plan by April 2014

– Perform site characterization surveys

– File a Construction and Operations Survey Plan by October 2014

Commercial-Scale Offshore WindEarly Stage Development

Do

min

ion

Reso

urces, In

c.

17

It is also very helpful for the utility to receive the following information:

Load characteristics

Type of equipment employed

Power quality requirements

Power factor

Number of delivery points

Date electrical service is required

Service Requirements

Construction power requirements

Do

min

ion

Reso

urces, In

c.

18

From Generation to the Customer

Transmission Line Notes:

Transmission Line – Very large industrial or commercial customers are sometimes served from transmission lines when load requirements or unusual circumstances justify

Rights of Way – Transmission lines are located on purchased or leased rights of way – making them very expensive to maintain, alter or expand Can be from 100 ft up to 200 ft wide.

Distribution - Underground distribution, 15 ft. wide. Overhead distribution up to 30 ft. wide.

19

• Time-of-Use Rate – cost varies according to time of day; provides cost savings if a customer can adjust load to off-peak times.

Do

min

ion

Reso

urces, In

c.Explanation of Typical Rates

19

Do

min

ion

Reso

urces, In

c.Common Electric Industry Terms

Amps (or Amperage) kWh Consumption

Volts (or Voltage) kW Demand

Hours Use kVA

Three-Phase Power Power Factor

Single-Phase Power Load Factor

20

Do

min

ion

Reso

urces, In

c.Water-to-Electric Analogy

Voltage (volts) is like pressure in the pipe (in pounds per square inch)

kW Demand (of kW) is similar to the flow rate of water in the pipe (gallons per minute). Peak electric demand is highest used 30 minutes within a month.

Consumption (of kWh) is similar to the gallons of water in the bucket. For determining the power bill, the period utilized is a month.

21

Do

min

ion

Reso

urces, In

c.Power Reliability and Power Quality

22

Utilities distinguish between these two terms, usually based upon how long the event lasts

Power Reliability refers to whether the power is on or off – usually represents outages greater than five seconds. Power reliability is impacted by weather, animals, vehicles, equipment malfunction, and sometimes utility operations. Alternative feeds and generators are back-up power systems that may be purchased to improve reliability.

Do

min

ion

Reso

urces, In

c.Power Reliability and Power Quality

23

Power Quality relates to the “purity” of the power that flows into the facility. Power quality incidents include sags, surges, transients, bugs, and other “glitches.” These events usually have short durations (fractions of a second). Power quality requirements are often driven by the customer’s equipment needs. Power quality performance may be impacted by neighboring customers, the power company, or other equipment inside the customer’s facility. The solutions to power quality issues are highly customized and typically occur on the customer’s side of the utility meter. Some solutions include UPS (Uninterruptible Power Supplies) and other systems, which are designed for intermittent short-term voltage support.

Do

min

ion

Reso

urces, In

c.

24

Power Reliability and Power Quality

Dominion can help design protective schemes to minimize interruptions on both sides of the meter:

Design coordination of production equipment

Onsite back-up generation

UPS systems

Alternate or dual feed service

Voltage regulation (on utility side of meter)

25

Solar Partnership

1. Up to 2 mW2. Rooftop or

on- site3. Lease payments

from Dominion4. 30 mW in

current queue5. “Greens” the

grid

Do

min

ion

Reso

urces, In

c.

26

• Customer contracts with Dominion to purchase specified amounts of renewable energy as determined by the customer.• Renewable energy supplier will sign a power purchase agreement with Dominion equal to the amount of renewable energy to be purchased under the customer’s contract.• The remainder of the customer’s energy requirements, as well as all of the customer’s capacity requirements, will continue to be provided under their existing Rate Schedule GS-3 or GS-4.

Schedule RG (Renewable Generation)D

om

inio

n R

esou

rces, Inc.