January 26, 2004

RICHMOND, Va. - Dominion (NYSE: D), one of the nation's largest energy companies, endorsed Monday a 500-megawatt advanced coal-fired power station proposed for Southwest Virginia by state Sen. William Wampler, R-Bristol.

"Dominion will likely need baseload generation to meet the demands of a growing state and specifically the demands of those customers who may decide not to choose another supplier in the restructured utility world," said Thomas F. Farrell II, president and chief operating officer. "Sen. Wampler's vision of economic development in Southwest Virginia will have lasting, positive effects throughout the Commonwealth.

"Whether we, another utility or an independent power producer build this station does not need to be decided immediately, but the state should start the process today to ensure reliable supplies of electricity in the future," Farrell said.

Wampler proposed the power station in an amendment to a bipartisan bill from Gov. Mark Warner and Attorney General Jerry Kilgore and endorsed by the legislature's Commission on Electric Utility Restructuring. The bill would extend capped rates for electricity in Virginia for 3 ½ years, from July 1, 2007, to Dec. 31, 2010. Sen. Thomas Norment, D-James City, chairman of the CEUR, is the bill's patron.

The Wampler amendment would allow a utility that has been designated a default service provider to seek permission from the State Corporation Commission to build or partner with an independent power producer to construct the station in Southwest Virginia and use Virginia coal. The station's electrical output would ensure a reliable supply of electricity, protect the native load and allow the supplier to meet its default service obligation.

"Default service is the 'safety net' for those customers who decide not to choose another supplier or cannot find a supplier willing to serve them. The electricity from this station would be for them," said Farrell. "We have looked at the sites identified by the Coalfield Economic Development Authority. Any of them could sustain a clean, advanced coal-fired power station."

Dominion is one of the nation's largest producers of energy, with an energy portfolio of more than 24,000 megawatts of generation, 6.2 trillion cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural gas transmission pipeline. Dominion also operates the nation's largest underground natural gas storage system with more than 960 billion cubic feet of storage capacity and serves 5.3 million retail energy customers in nine states. For more information about Dominion, visit the company's Web site at www.dom.com.

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