December 16, 2005
RICHMOND, Va., December 16, 2005 — Thos. E. Capps announced today that he will retire as chief executive officer of Dominion (NYSE: D) effective December 31, 2005. In accordance with previously announced succession plans, the Dominion Board of Directors elected Thomas F. Farrell II, president and chief executive officer, effective January 1, 2006. Farrell is currently president and chief operating officer.
Under Capps’ leadership, Dominion grew during an era of unprecedented industry change from a regulated electric utility serving most of Virginia and northeastern North Carolina into one of America’s largest and most successful integrated energy companies. Capps will remain as non-executive chairman of the board after his retirement. He will also serve as a management consultant.
In announcing his retirement, Capps, who has been Dominion’s CEO since 1990, said:
“Ultimately, a company’s success rests in the quality of its business plan and in the hands of its people and their drive to give each working day their best shot. We’ve been fortunate to have both. Our plan to serve a strong regional market for power and natural gas with a balanced mix of regulated and unregulated assets has yielded triple-digit total returns to our shareholders and provided a reliable and efficient service platform for millions of retail customers. Our dedicated and innovative employees are the industry’s finest. In addition, we’ve hired and developed hands-on managers and leadership who have exhibited consistent entrepreneurial spirit. Our professional success is theirs, and their workplace legacy is ongoing.
“As CEO, I’ve tried to promote a culture and work ethic focused on customer service, shareholder value, employee empowerment and community involvement. Tom Farrell is a natural leader dedicated to these core values. He is perfectly suited to lead the company. He is a deep thinker with a bias for action.
“Tom has mastered the intricacies of our unique business model and a fast-changing industry. He has the confidence and respect of our investors, board, management and employees. He is well-suited to guide Dominion to even higher levels of success.”
Farrell said: “It’s an honor and privilege to take managerial responsibility for one of the nation’s outstanding energy companies. Our customers, employees and shareholders are all beneficiaries of Tom Capps’ vision and ability to translate that vision into reality. Thanks to these qualities, Dominion is strategically aligned to achieve superior long-term investor returns and service to our customers.”
Capps is credited with conceiving and executing one of the industry’s most successful mergers. Under his leadership, Dominion initiated a $9 billion merger that unified Dominion Resources and Pittsburgh-based Consolidated Natural Gas Company, a buyout that closed in early 2000, and produced a company doing business under the one-word name “Dominion.”
Since the merger, Dominion has provided its investors with a total return of nearly 160 percent with dividends reinvested. Market capitalization now exceeds $28 billion, up from under $5 billion when Capps became CEO.
On the public policy front, he emerged as an early proponent of competition in the industry and a proponent of building and enhancing the nation’s energy infrastructure. He has long championed a coherent national energy policy and supported many initiatives that are now national policy.
Under Capps’ guidance, Dominion built upon its reputation as a responsible corporate citizen. From a philanthropic budget of slightly more than $2 million just six years ago, Dominion has built a $10 million charitable contributions program that funds diverse organizations in 27 states. Capps’ special commitment to higher education has made Dominion one of the nation’s top corporate backers of minority engineering programs and historically black colleges and universities.
Today, Dominion operates safely, reliably and profitably as a fully integrated natural gas and electric power company serving more than 5 million customers in the mid-Atlantic, Midwest and Northeast. Using industry terminology, the company labeled the region MAIN-to-Maine soon after the merger that created its existing service platform. MAIN is an acronym in the power industry for the power network that covers much of the Midwest. It stands for Mid-America Interconnected Network. The MAIN-to-Maine region would be the world’s third-largest economy on a stand-alone basis.
After the CNG merger, Capps directed Dominion through a series of profitable acquisitions to build the company’s existing service platform. These mergers made more than news: they made profits under a Capps’ policy that acquisitions must be immediately accretive.
Acquisitions included Louis Dreyfus, another major E&P company headquartered in Oklahoma City; Cove Point, the nation’s most active liquefied natural gas import terminal in southern Maryland; the Millstone and Kewaunee nuclear power stations in Connecticut and Wisconsin respectively; and fossil-fuel merchant generation and other natural gas properties and storage facilities in the MAIN-to-Maine region.
Dominion’s geographically focused asset portfolio manufactures, transports and sells energy to customers through local distribution companies and a competitive retail energy services group throughout the MAIN-to-Maine economic region. The company’s business assets are widely recognized by investment analysts as one of the sector’s best.
On the manufacturing side, Dominion features about 6 trillion cubic feet equivalent of natural gas reserves and more than 28,000 megawatts of electric generation. On the transportation side, the company owns and operates more than 7,900 miles of natural gas pipeline, owns more than 6,000 miles of electric transmission line now operated by a regional coordinator, and has nearly 1 trillion cubic feet of natural gas storage. Dominion serves about 4 million franchise gas and electric customers in five states, as well as 1.2 million unregulated customers in nine states. It employs more than 17,000 people.
A native of Wilmington, N.C., Capps joined Dominion in 1984 as executive vice president of Virginia Power. He held a series of officer positions before becoming CEO in 1990. Over his tenure, Capps served on a variety of boards and is currently a member of the board of visitors of The College of William & Mary, the board of trustees of the Virginia Foundation for Independent Colleges, and the board of directors of Amerigroup Corp. His biography can be found on the company website, www.dom.com.