August 9, 2002

RICHMOND, Va. -- Dominion (NYSE: D) said Friday it would review a contract proposal from the union that represents its electric workers during the weekend and respond next week.

"We have always been willing to listen to the union," said Edgar M. Roach Jr., president and chief executive officer of Dominion Virginia Power. "We will carefully consider and analyze this proposal. We want our employees to return to work with an agreement that is fair to the union, the company and all Dominion employees."

The International Brotherhood of Electrical Workers Local 50 presented its latest proposal to the company and the federal mediator at a meeting Friday afternoon. Dominion and the union began negotiating a contract in late January. The 3,700 employees represented by the union began a work stoppage Aug. 2. Dominion has been able to maintain smooth operations during the strike through the use of its salaried employees and contractors.

Last week, Dominion offered a five-year term, guaranteed annual wage increases and pension and medical benefits that brought the overall benefits package for the union more in line with that of the rest of the Dominion work force.

The company's settlement proposal included:
 

• A five-year contract that will provide a total compounded wage increase of 16.5 percent, which would bring the average annual base salary to $52,000. The contract would expire March 31, 2007.
• Improved health care benefits. The plan includes doubling the lifetime maximum to $2 million, enhanced prescription drug program and preventive-care coverage, the addition of chiropractic coverage for the first time and improved vision and dental benefits.
• A comprehensive retirement program that retains the current pension formula. In every example requested by the union, employees would do as well or better than in the old contract. Retirees would continue to pay nothing for medical health insurance premiums over the life of the contract. The company would contribute $5 million to a fund that pays the premiums for the retirees.

IBEW Local 50 represents workers at Dominion Virginia Power, which delivers electricity to more than 2 million customers, and Dominion Energy's power stations in Virginia and Mt. Storm, W.Va. The workers represented include meter readers, linemen and power station operators.

Dominion is one of the nation's largest producers of energy, with a production capability of more than 3 trillion British thermal unit of energy per day. Dominion also serves 3.9 million franchise natural gas and electric customers in five states. For more information about Dominion, visit the company's Web site at www.dom.com.

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