July 6, 2004

RICHMOND, Va. - Under two separate transactions, Dominion Virginia Power, the electric utility subsidiary of Dominion (NYSE: D), will acquire an approximately 80-megawatt, wood-burning generating facility in Hurt, Va., and a 310-megawatt, gas-fired generating facility in Chesapeake, Va. Dominion will pay approximately $49 million in cash and assume or pay off each facility's long- term debt and associated costs of approximately $148 million for both facilities and their long-term power purchase agreements.

The Hurt facility, which consists of two units, is owned by Multitrade of Pittsylvania County, L.P. The Chesapeake facility, which consists of three simple-cycle, combustion turbine generators, is owned by Chickahominy River Energy Corp., a subsidiary of NRG Energy Inc., and James River Energy Co., a subsidiary of Dynegy Inc.

The generation from both facilities has been sold to Dominion Virginia Power under 25-year power purchase contracts, which will be terminated at closing, and are expected to result in an after-tax charge of approximately $90 million to $110 million. Under Dominion ownership, the facilities will continue to serve Dominion's electric customers in Virginia and North Carolina. Dominion's purchase of the stations is consistent with its continuing efforts to lower the cost of long-term power purchase contracts with non-utility generators. The expected accretion from these purchases is included in Dominion's current earnings guidance.

Because of greater-than-expected proceeds from Dominion's Customer Stock Purchase Program and options exercised in conjunction with executive stock loan repayments announced in May, these transactions will not require additional equity issuances.

Dominion expects to close on both sales in the fourth quarter of this year. The transactions are subject to regulatory approval, including the Virginia State Corporation Commission and Federal Energy Regulatory Commission, and, in the case of the Multitrade acquisition, certain bondholder consents.

Dominion is one of the nation's largest producers of energy, with an energy portfolio of more than 24,000 megawatts of generation, 6.4 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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