Sustainability at Dominion Lisa Moerner Director Environmental Sustainability

Sustainability at Dominion Lisa Moerner Director Environmental Sustainability & Gas Environmental Services Dominion Resources May 9, 2013

About Dominion: One of America’s Leading Energy Companies New Generating Stations New Generating. Development Stations Planned/Under Development ~27, 500 MW of electric generation Coal/Biomass Natural Gas Wind Solar 6, 300 miles of electric transmission 11, 000 miles of natural gas transmission, gathering and storage pipeline 947 billion cubic feet of natural gas storage operated Cove Point LNG Facility 2. 4 million electric customers in VA and NC 1. 3 million natural gas customers in OH & WV 2. 2 million non-regulated retail customers in 15 states All planned capital expenditures are preliminary and subject to regulatory and/or Board of Directors’ approvals. Generating Stations Operation in in Operation Coal Natural Gas/Oil Nuclear Hydro Biomass Wind Coal/Oil/Gas Coal/Biomass Pending Sale Shut Down 2

Overview Dominion’s Sustainability Strategy • Reducing our environmental footprint • Investing in the technologies of tomorrow • Providing green opportunities for our customers and communities • Engaging our employees and stakeholders 3

REDUCING OUR ENVIRONMENTAL FOOTPRINT 4

Dominion Emissions Reductions Improving Air Quality by Reducing Emissions, 1998 -2020 Projected reductions in SO 2, NOx and Mercury Dominion Virginia Power Total Dominion 5

Protecting the Environment Dominion Environmental Expenditures

LEED Certified Buildings • Dominion has several LEED Certified buildings – The administrative building at our Cove Point LNG facility in Maryland is LEED silver certified. LEED certification is in the current project scope for Cove Point expansion project buildings. – The Sabinsville office building in north central Pennsylvania is LEED gold certified. – The administration and warehouse building at our Warren and Brunswick combined cycle power plants are being constructed to LEED standards. • Examples of LEED Measures at Sabinsville: – Natural daylight through use of skylights – Triple-pane operable windows – Cellulose insulation (made from recycled newspaper) that increases energy efficiency – Low-flow plumbing fixtures – Highly efficient heating, ventilating and air conditioning (HVAC) – Low VOC (Volatile Organic Compounds) finishes – Recycled stone veneer and siding – Occupancy and daylight sensors to help reduce electricity use, efficient light fixtures – Landscaping with native plant species that require no irrigation once established 7

Dominion: Low Carbon Intensity 100 Largest U. S. Power Producers (Pounds CO 2 per MWh Output) 2500 2000 1500 Dominion 1000 500 0 Dominion is among the lowest for CO 2 emissions for the largest U. S. power producers. Source: Benchmarking Air Emissions Report: July 2012 (2010 Data). Study supported by NRDC and others. 8

Dominion Generation Fleet: Metric Tonnes CO 2 e Emissions from Combustion Year 2005 DENE added, transition to PJM 2006 -07 9

Dominion Generation Fleet: Metric Tonnes per Gross MWh CO 2 e Emissions Intensity from Combustion At Ownership Year 10

INVESTING IN THE TECHNOLOGIES OF TOMORROW 11

Alternative Energy Solutions Role within Dominion • Evaluate emerging technologies and impact on Dominion’s business • Foster the development of new and emerging technologies • Develop the long-term strategic plan for incorporating new technologies into Dominion’s infrastructure plan • Participate in the shaping of state and federal regulatory and legislative energy policy • Identify business opportunities 12

Alternative Energy Solutions Technology Focus Transmission and Distribution Generation Smart Grid Offshore Wind Electric Vehicles Solar Distributed Generation Fuel Cells Solar Battery Storage

Emerging Technology: Offshore Wind Why Virginia? Opportunities • Economic development opportunity for Virginia - World’s greatest natural harbor - Premier maritime community • Potentially one of the largest sources of renewable, carbon-free energy in Virginia • Offshore winds stronger, more consistent than onshore Challenges • Substantially more costly to install and maintain than onshore wind 14

Virginia Offshore Wind Technology Advancement Project (VOWTAP) VOWTAP OFFSHORE FACILITIES Individual Turbine Power Output Rating VOWTAP Nameplate Electric Generating Capacity Hub Height (distance from sea to center of rotors) Rotor Diameter Maximum Tip Height Air Gap (distance from sea to rotor swept zone) Water Depth within Lease Area Distance Between Turbines Approximate Demonstration Project Area 6 MEGAWATTS 12 MEGAWATTS 328 feet (100 m) 492 feet (150 m) 574 feet (175 m) 84 feet (26 m) Max 80 feet (20 - 25 m) ~2, 300 -3, 950 ft(700– 1, 200 m) 2 to 3 aliquots 15

Virginia Commercial Leasing Process • Bureau of Ocean Energy Management (BOEM) is moving forward with commercial leasing process. • Ten companies have expressed interest in leasing the area. • BOEM published Proposed Sale Notice on Dec. 3, 2012. • Dominion expects the auction will occur in the 2 nd quarter of 2013. • BOEM planning to lease entire Wind Energy Area to one bidder using an ascending clock auction. Bureau of Ocean Energy Management Virginia Call for Information and Nominations Area – Nomination Density 24 miles 16

Renewable Power Generation Portfolio as of March, 2013 17

Dominion’s Renewable Assets: Pittsylvania Power Station (Biomass) • Pittsylvania Power Station (biomass) • Dominion Virginia Power asset • Capacity: 83 MW • Largest biomass facility in U. S. • High reliability • Base-load resource 18

Dominion’s Renewable Assests: Altavista, Hopewell & Southampton units converted from coal to wood • • • Conversions are cost effective for our customers Support Virginia’s and Dominion’s renewable goals Dispatchable source of renewable energy Technology is mature and reliable Expected to support reduction in carbon intensity Promotes a diverse fuel portfolio 19

Dominion’s Renewable Assets: Gaston Hydro Station • Gaston Hydro Station • Dominion North Carolina Power asset • Capacity: 220 MW • High reliability 20

Dominion’s Renewable Assets: Wind Farms Fowler Ridge Wind Farm Benton County, Indiana Total Size: No. of Turbines: Land Area: Completed: 300 MW 162 25, 000 acres March 2009 Ned. Power Wind Farm Grant County, West Virginia Total Size: No. of Turbines: Land Area: Completed: 264 MW 132 8000 acres December 2008 21

Dominion’s Renewable Assets: Bridgeport Fuel Cell Park Inputs Natural gas Water Air Outputs Electricity CO 2 Waste heat Waste water 1 x 2. 8 MW module is about the size of a tennis court: Bridgeport project contains five modules and a residual heat bottoming cycle turbine (Organic Rankine Cycle) 22

Dominion’s Renewable Assets: Solar Power • Solar resources are becoming more cost competitive − Rapidly dropping costs of solar modules − Standardization of installation − Federal tax credits available to January 1, 2017 • However, solar PV is not dispatchable and • • contributes less to peak load and reserve requirements than conventional resources Dominion is constructing a 7. 7. MW solar generating facility in Georgia. Future Community Solar Distributed Generation (DG) Program – Distributed Generation (DG) is the concept of decentralized, local energy – – production often utilizing wind and/or solar Solar DG penetration is rapidly increasing across the country Dominion has received approval for a Community Solar Program − 30 MW of utility-owned distributed solar on leased roof space − Tariff to purchase output from customer-owned solar DG installations Source: Southern California Edison 23

Renewable Energy: Challenges and Opportunities Challenges • Costs – Renewable generation is more costly when compared with conventional sources – Virginia’s low electric rates make renewable generation even less competitive • Intermittency • Regulatory approval process geared towards centralized, large-scale projects Opportunities • A more balanced, diverse fuel supply for our customers • Satisfaction of Virginia’s voluntary renewable goals • Additional economic development through creation of jobs and tax revenue • Improvement of technology via practical usage 24

PROVIDING GREEN OPPORTUNITIES FOR OUR CUSTOMERS & COMMUNITIES 25

Virginia and North Carolina RPS Goals • In 2007, Virginia passed into law a voluntary Renewable Portfolio Standard (RPS): Year 2010 -2015 2016 -2021 2022 -2025 Goal (% of 2007 sales) 4% 7% 12% 15% • Dominion is growing its renewable portfolio to reach 15% by 2025 • Evaluating all available options to meet targets – Existing utility-owned renewable generation – Build new renewable facilities in Virginia – Purchase Renewable Energy Credits (RECs) • North Carolina RPS requirements Year 2010 -2011 2012 -2014 2015 -2017 2018 -2020 2021 Goal (% of 2007 sales) 0. 2% solar 3% 6% 10% 12. 5% 26

Energy Efficiency and Peak Shaving: A Dominion Focus • Residential programs include: – Air Conditioner Cycling – Low-Income Audit – Residential Bundle • • Home Energy Check-Up Residential Duct Testing & Sealing Heat Pump Tune-Up Heat Pump Upgrade • Commercial programs include: – Commercial Audit – Commercial Duct Testing & Sealing – Commercial Distributed Generation 27

ENGAGING OUR EMPLOYEES & STAKEHOLERS 28

Communities • Energy assistance programs – Energy. Share program provides heating and cooling assistance to those in financial need in Virginia and heating assistance in North Carolina and Ohio • Funds come from Dominion, stockholders, employees and customers • Community investment program Save Pleasure House Point ! − Preserving Pleasure House Point • In December 2011, the Dominion Foundation provided the Trust for Public Land with a $500, 000 grant toward the purchase of Pleasure House Point in Virginia Beach, VA • Pleasure House Point is a 122 -acre tract of undeveloped land between the Lynnhaven River and the Chesapeake Bay • The Virginia Beach City Council on December 11, 2012, voted to approve a Conditional Use Permit for the Chesapeake Bay Foundation (CBF) to construct what will be the most environmentally sustainable building in Virginia, located at Pleasure House Point. 29

Stakeholders • Engaging stakeholders – Corporate Social Responsibility/Sustainability Report – IRP Stakeholder process – In 2012, Governor Mc. Donnell hosted a round table discussion on Corporate Sustainability – Dominion participated. – Jointed VMA’s Sustaining Virginia program, EPA’s Natural Gas Star program (DTI), EPRI Sustainability Interest Group, Arbor Day Foundation’s Tree Line USA program (DVP) – Created sustainability@dom. com – Completed Water Carbon Disclosure Project survey and added of water metrics to www. dom. com April 2012: Round table discussion with Governor Mc. Donnell 30

Employees • Engaging our employees – Created Director of Sustainability position, Staff Level Sustainability Team, Executive Sustainability Council – Pre-existing Nuclear Green Team – Created sustainability@dom. com – Created a Sustainability Speaker Series – Published multiple internal articles for employees on sustainability – Developed employee energy audit team 31

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