August 4, 2003

RICHMOND, Va. - Dominion (NYSE: D) will acquire the 240-megawatt Gordonsville power station in an approximately $52 million cash transaction expected to close in the fourth quarter. Under terms of the deal, Dominion also will pay off the facility's long-term debt, associated agreements and costs of approximately $98 million.

All of the facility's generation is currently sold to Dominion Virginia Power, Dominion's electric utility subsidiary, under a 30-year power purchase contract, which will be terminated at closing. Under Dominion's ownership, the facility will continue to serve Dominion Virginia Power's native load.

Dominion is buying the oil- and natural gas-fired combined-cycle facility in Louisa County, Va., from subsidiaries of Calpine Corporation (NYSE: CPN) and Edison International (NYSE: EIX). The transaction is subject to regulatory approval by the Virginia State Corporation Commission, Federal Energy Regulatory Commission and approval under the Hart-Scott-Rodino Act.

The transaction is expected to have a modestly positive impact on earnings after excluding an after-tax charge of approximately $65 million to $85 million expected to be recorded upon closing.

This release contains forward-looking statements including expectations relating to future earnings that are subject to various risks and uncertainties. Discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations may include factors that are beyond the company's ability to control or estimate precisely, such as estimates of future market conditions, weather conditions, economic conditions in the company's service area, fluctuations in energy-related commodity prices, changing financial accounting standards, and other uncertainties. Other risk factors are detailed from time to time in the company's Securities & Exchange Commission filings.

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