Dominion Disappointed in Union's Rejection of Settlement Proposal

August 1, 2002

RICHMOND, Va. - Dominion (NYSE: D) said Thursday that the leadership of the International Brotherhood of Electrical Workers Local 50 had turned down the company's latest labor contract proposal that called for a 16.5 percent compounded wage increase over five years along with other pension and medical benefits.

The IBEW Local 50 further notified the company that it was calling a work stoppage to begin at noon Friday. This would be the first labor action at Dominion Virginia Power since 1964.

"We are extremely disappointed that the union leadership rejected this proposal," said Edgar M. Roach Jr., president and chief executive officer of Dominion Virginia Power. "We worked long and hard to address issues that the union told us were important while achieving a balance among its members, the company and Dominion's other union and non-union employees.

"The negotiations have been very professional. It is unfortunate that we came so close this time, yet remain apart. While we have contingency plans in place and ready to keep our customers' lights on, we would prefer that our employees remain at work."

The company and the IBEW Local 50 began negotiating in January to craft a contract to succeed a three-year agreement that was ratified in 1995 and extended twice, each time for two years. IBEW Local 50 represents workers at Dominion Virginia Power and Dominion North Carolina Power, which deliver electricity to more than 2 million customers, and Dominion Energy's power stations in Virginia and Mt. Storm, W.Va. The workers represented include linemen, meter readers, electricians 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 http://www.dom.com.

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