July 20 , 2007

CLEVELAND – Dominion East Ohio announced today that – for the first time since 1994 – it will propose a base rate increase.  Dominion East Ohio said it expects to file with the Public Utilities Commission of Ohio (PUCO) for an increase of approximately $73 million in about 30 days.

If approved, typical residential customers would see an increase of less than $4.50, or 4 percent, in total monthly bills. The new rates would apply to all of the 1.2 million customers in Dominion’s East Ohio and West Ohio service territories.  The company anticipates that the new rates will not go into effect until the second quarter of 2008. That means that current base delivery rates will remain the same over the upcoming winter heating season.

“We are proud that we haven’t increased base rates for 13 years,” said Thomas F. Farrell II, Dominion’s chairman, president and chief executive officer.   “Dominion East Ohio has controlled costs through prudent management, cost containment efforts and enhanced technology. However, virtually every area of the company has experienced increased costs of operation because of inflation, taxes, federal and state regulatory changes and required maintenance of nearly 31,000 miles of underground pipeline and related facilities.”

Natural gas commodity costs have increased considerably during the past 13 years, but Dominion East Ohio does not earn a profit on the natural gas commodity itself. Natural gas costs comprise approximately three-fourths of the customer’s bill.

As part of the base rate case proceedings, the PUCO will conduct public hearings throughout Dominion’s service area, where customers, local government officials and consumer groups will have the opportunity ask questions and make statements related to the company’s rate increase request.

Dominion East Ohio is a subsidiary of Dominion, (NYSE:D) one of the nation's largest producers of energy, with a portfolio of more than 26,500 megawatts of generation and 7,800 miles of natural gas transmission pipeline. Dominion also owns and operates the nation's largest underground natural gas storage system with about 960 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com.