April 15, 2004

RICHMOND, Va. - Virginia Gov. Mark Warner announced Thursday that he has signed Senate Bill 651 into law. The centerpiece of the legislation was a proposal from the governor and attorney general that keeps retail electricity rates capped in Virginia until Dec. 31, 2010.

"This law sends a strong signal that Virginia is moving forward with the restructuring of the electricity market and is committed to securing a robust energy future for our customers," said Thomas F. Farrell II, Dominion president and chief operating officer. "It allows restructuring to continue in Virginia in a careful, methodical and deliberative way, all while saving customers money."

The Virginia Electric Utility Restructuring Act, as amended by SB 651, now guarantees stable prices for Dominion Virginia Power customers for the next 6½ years. The 2004 General Assembly voted decisively to keep the company's capped base rates, which cover all costs except fuel, in place through the end of 2010. The extension will provide more time for development of the Restructuring Act's goal of robust, competitive retail markets for the supply of electricity. As part of Virginia's efforts to restructure the electric industry, the company's base rates are capped—essentially frozen—at 1993 levels.

The law also holds the company's fuel rate at its present level until July 1, 2007, after which it can only be adjusted once more for the 3½-year period ending Dec. 31, 2010. Prior to SB 651, Dominion could seek an annual adjustment in the rate that customers pay to purchase fuel used at the company's electric generating power stations.

With strong support from Warner, Attorney General Jerry Kilgore, and a broad-based coalition of industries and associations, the Senate passed the bill, 29-10. It was then amended and passed overwhelmingly by the House of Delegates, 68-32. The Senate accepted the House version, 31-8.

SB 651 also:

• Ends wires charges on July 1, 2007. Wires charges are set by the SCC and are collected from customers who choose another supplier. It helps Dominion recover investments made while it was expected to serve all customers.
• Expands local government options to form buying groups, or aggregations, to save money on electricity for their citizens.
• Promotes the construction of new generation in the southwest Virginia coalfield region.
• Sets up procedures to make it easier for many large commercial and industrial consumers to switch electricity suppliers.

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