Nuclear’s Role in the Clean Energy Mix The Energy Bar Mid-Year Meeting on Energy Markets, Renewable Energy and Change Washington, DC December 3, 2009 David Heacock President and Chief Nuclear Officer, Dominion Nuclear

2 Dominion at a Glance Dominion Generation Dominion Energy Dominion Virginia Power  Regulated Generation  Merchant Generation  Gas Distribution  Gas Transmission and Storage  Producer Services  Appalachian E&P  Electric Distribution  Electric Transmission  Unregulated Retail

3 Diverse, Balanced Generation Mix

4 100 Largest U.S. Power Producers (Pounds CO 2 per MWh Output) Source: Natural Resources Defense Council, 2008 Study Dominion Low Carbon Intensity

5 Increasing Demand for Energy

6 Peak Demand (Megawatts) 18,000 20,000 16,000 22,000 Current generating capacity Projected Dominion peak demand—PJM Forecast Additional Deficit of 4,600 MW by 2019 Mounting Energy Gap *Updated 2009 to reflect projected demand growth between 2009 and 2019.

7 Additional Usage By Existing Customers 40% of Growth  Added Sq Ft per House  Flat Screen TV  Home Computer Networks  New Appliances  Digital Displays New Usage By New Customers 60% of Growth  Historically, 50,000 Connects  2009: 30,000 Connects  Transportation Growth  Military Expansion  Data Centers Dominion 2.2% US 1.7% Distribution Growth Drivers

8 Ft. Belvoir  22 Projects on Base  19,000 New Residents in 3 Yrs  Initial Capacity 56 MVA  230 kV Transmission Supply  Eventual Build Out 100 MVA Ft. Lee  6 Major Facilities  7 million Additional Sq Ft  Initial Capacity 15 MVA  Eventual Build Out 33 MVA Military Expansions: Base Realignment and Closure (BRAC)

9 New Silver Line Rail Northern Virginia  Phase I ; Phase II  Tyson’s Corner Impact –88 million Sq Ft added –100,000 new jobs –83,000 residents –Build Out MVA  Relocation Work Begins January 2009 Norfolk Light Rail  $232 M Project  7.4 miles across Downtown Norfolk  11 Passenger Stations  Began 2007; Complete 2010  Transport 6,000–12,000 daily New Transportation Corridors

10 Existing  36 Data Centers  200 MW of Existing Load  3% of Northern Virginia Load Future (by 2013)  50 Data Centers  700 MW of Future Load  10% of Northern Virginia Load Data Centers, 2009 and Beyond: 24 / 7 Load Factor

11 Strategy for Meeting Growing Demand

12  Conservation will help meet Virginia’s growing energy needs while protecting the environment  Dominion is fully committed to state’s goal of reducing energy consumption by 10 percent by 2022 Conservation: Critical to Virginia’s Future  Dominion is developing portfolio of demand-side management programs and evaluating “smart” technologies

13 Demand Response:  Reduces peak electricity demand, often by shifting usage to off-peak hours  Improves reliability  Easily measured and verified Conservation:  Reduces consumption of electricity  Produces environmental benefits  Poses new set of challenges: ­Requires change in customer behavior ­Harder to measure and verify Demand-Side Management: Two Key Elements

14  Key component of Dominion’s Energy Conservation strategy  Customers in Midlothian and Charlottesville participating in smart metering demonstration projects  Customers save through the delivery of more efficient operating voltages to their homes  Other benefits include: –improved outage reporting –new time-sensitive pricing Smart Metering Technology

15  Trabue Demonstration: 6,700 meters  Charlottesville Demonstration: 45,000 meters  Initial loss reduction focus areas include –Conserving off-peak voltage and monitoring through AMI technology  Successful demonstration of project on Trabue Circuit (Midlothian) –5% voltage reduction using AMI technology has been demonstrated –Average energy savings per 1% reduction exceeds 0.8% –Trabue test results confirm full deployment savings of 2.34 million MWH per year or 2.79% of the total system load –Demonstrated energy savings from Voltage Conservation confirms previously announced customer savings (and have risen to $1.7 billion over 15 years) Voltage Conservation

16  Federal RPS is under development  Dominion’s existing utility-owned renewable assets reach 2% level  Dominion is growing its renewable project portfolio  To comply with RPS requirements, Dominion needs: – 4% by 2010 – 7% by 2016 –12% by 2022 –15% by 2025 (recently signed by Gov. Kaine)  Evaluating all available options to meet targets: –Existing utility-owned renewable generation –Build new renewable facilities in Virginia –Purchase RECs / renewable energy Virginia RPS

17 Dominion’s Renewable Assets Biomass Wind Hydro 89 MW 282 MW 327 MW Operating Under Development 217 MW 695 MW Total 306 MW 977 MW 327 MW TOTAL RENEWABLE ASSETS: 1610 MW Bath County: Dominion’s pumped storage facility helps make renewable energy dispatchable.

18 Infrastructure Growth Plan Expanding Renewable Generation Portfolio FacilityStatusCapacity >>>> PittsylvaniaOperating83 MW AltavistaOperating6 MW VCHEC 1 Construction117 MW UndisclosedDevelopment MW Biomass Subtotal >>>306 MW >>>> NedPower 2 Operating132 MW Fowler Ridge I 2 Operating150 MW Fowler Ridge IIDevelopment MW Prairie ForkDevelopment MW Virginia Wind 2,3 Development MW Wind Subtotal >>>977 MW Total Biomass and Wind1,283 MW 1) Assumes 20% co-firing 2) Dominion’s 50% share 3) Includes Wise County and Tazewell County as well as other undisclosed facilities 4) Development projects are subject to change Pittsylvania Altavista NedPower Fowler Ridge I-II Prairie Fork VCHEC Tazewell County/VA Wind Wise County/VA Wind

19 Nuclear - Part of the Solution

20 U.S. Electric Net Generation by Source, 2008 Source: NRC Information Digest – DOE/EIA Monthly Energy Review, March 2009

21 Fuel Type Average Capacity Factors (%) Nuclear91.5 Coal (Steam Turbine)70.8 Gas (Combined Cycle)41.7 Gas (Steam Turbine)14.6 Oil (Steam Turbine)12.6 Hydro27.4 Wind31.1 Solar21.1 U.S. Capacity Factors by Fuel Type Source: NEI - Ventyx Velocity Suite / Energy Information Administration Updated: 4/09

22 U.S. Nuclear Industry Capacity Factors (1971 – 2008) Source: NEI - Energy Information Administration Updated: 4/09

23 U.S. Average Plant Production Expenses $/Mwhr Source: NRC 2009 – 2010 Information Digest – FERC Form 1 and DOE/EIA Electric Power Annual 2008

24 U.S. Electricity Production Costs , In 2008 cents per kilowatt-hour Production Costs = Operations and Maintenance Costs + Fuel Costs. Production costs do not include indirect costs and are based on FERC Form 1 filings submitted by regulated utilities. Production costs are modeled for utilities that are not regulated. Source: Ventyx Velocity Suite Updated: 5/09

25 Nuclear Economic Benefits  $430 M in sales of goods and services  $40 M in total labor income  Every $1 spent by plant => creates $1.07 in local community  $20 M/yr in state and local tax revenue  $75M/yr in federal tax payments  permanent jobs at operating units  1,400 – 1,800 during construction  Forward price stability – fuel costs small Source: NEI

26 Value of Environmental Benefits  Avg nuclear plant avoids  10,000 tons of nitrogen oxides  32,000 tons of sulfur dioxide  Equates to value of $4.7 M/yr  Avg nuclear plant prevents 7 M metric tons of carbon dioxide  Equates to projected value of $130 – 208 M/yr  Currently 20+ new reactors under consideration in U.S.  Investment of $6 – 8 B /per unit, depend on size Source: NEI

27 Two Ways to Increase Nuclear Slice Uprates  Improved measurement  More efficient turbines New Build  5 Technologies  Least Costly Alternative  Carbon free  Challenge – can they be built in time

28 Uprate Facts  Jan uprates => 5,640 Mwe, equivalent to five new reactors  NRC reviewing or anticipating additional applications totaling 2,333 Mwe  March 2009 nuclear accounts for approximately 19.7% of U.S. net electrcial generation at 806 billion kilowatthours Source: NRC Information Digest

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30 New Nuclear  ESP – Early Site Permit  NRC has issue three (including one at the North Anna site)  DC – Design Certifications  Issued four  Five under review  Combined Operating License  Reviewing 13 applications for 22 reactors Source: NRC Information Digest

31 Timing – The Real Challenge  1980’s:  Worldwide power reactors, average of one every 17 days  U.S. – average of one every 77 days  Today  China as of October 2009  11 operable, 8587 MWe  17 under construction, 17,540 MWe  34 planned, 36,380 MWe  90 proposed, 79,000 Mwe  U.S. as of October 2009  104 operable, 101,119 MWe  1 under construction, 1,180 MWe  11 planned, 13,800 MWe  19 proposed, 25,000 Mwe  Act Now Source: World Nuclear Association

32 Nuclear – Is the Solution

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34 Positive Trend in Safety Performance Reactor ScramsActuations

35  Wise County project meets baseload energy needs and has strong environmental features  Will produce 585 MW of power using DOE-designated clean coal technology Virginia City Hybrid Energy Center  Complete environmental package: –Protects air quality; minimizes water use –Uses waste coal and biomass  Sponsoring research at Virginia Tech to determine feasibility of carbon capture and storage technology  Small-scale testing under way near Center Delete? Or change previous slide

36  Uprates add approximately 300 MW of new nuclear generation across our nuclear fleet (except Kewaunee)  North Anna Unit 3 will use advanced nuclear technology with no carbon emissions –Early Site Permit (ESP) received approval in November 2007; submitted Combined Operating License (COL) application to build and operate in November 2007 –Commercial operation by 2016 / 2017 –Third unit would boost Dominion’s percentage of power produced by nuclear almost 10 percent in about 10 years Increasing Nuclear Capacity: Uprates and North Anna Unit 3