Alternative Energy Solutions at Dominion

October 7, 2011

Dominion Footprint

Alternative Energy Solutions

System Reliability

Energy Conservation

Smart Grid

Transmission and Distribution Technologies Renewables • Smart Grid • Fuel Cells

• Demand Side Management • Tidal • Distributed Generation • Storage

• Solar • Solar • Wind • Offshore Wind

• Electric Vehicles

A balanced and flexible portfolio of reliable, cost-effective energy resources including an offering of energy conservation programs

Environmentally friendly generation, including clean coal, natural gas, renewable, possible nuclear

Transmission and delivery system improvements

Powering Virginia

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Powering Virginia

4,500 megawatts needed over next decade Enough to power 1.1 million additional homes

$4.2 billion planned for regulated infrastructure in Virginia from 2010-12 New generation under construction

Virginia City, Bear Garden Warren County, NA3, wind projects on drawing board Uprates

Transmission and distribution upgrades Focus on energy efficiency, conservation Goal: Maintain competitive rates

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AES objectives • Evaluate emerging technologies and impact on Dominion’s

business • Foster the development of new and emerging technologies • Develop long-term strategic plan for incorporating new

technologies into Dominion’s infrastructure plan • Participate in the shaping of state and federal, regulatory and

legislative energy policy • Identify business opportunities

Strategic Step: Alternative Energy Solutions (AES) Group

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Transmission and Distribution Generation

Smart Grid

Electric Vehicles

Solar Distributed Generation

Offshore Wind

Large Scale Solar

Storage

Fuel Cells

AES: Areas of Focus

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AES: Areas of Focus

Transmission and Distribution

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Dominion Virginia Power Customer

PCT Web Portal Energy

Management

Smart Appliances

AMI Meter

Distributed Renewable Generation

Battery Storage

Plug-in Vehicle

Substation Automation

Automated Switchgear

Distributed Intelligence

Advanced Two-Way Communications Infrastructure

Distributed Renewable Generation

Voltage Conservation

Advanced Transformer &

Feeder Monitoring

Smart Grid and Tomorrow’s AMI-Enabled Home

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Uses readings from AMI meters to decrease the voltage during off-peak hours Results in ~ 3% reduction in total energy consumption Patent pending Announced partnership with Landis & Gyr to market CVR

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116

118

120

122

124

126

128

12:00am 6:00am 12:00pm 6:00pm 12:00am

Volts

Pre-AMI Range (Higher Voltages, Increased Losses)

Post-AMI Range (Tighter Range, Lower Losses)

Term

s an

d C

ondi

tions

Conservation Voltage Reduction (CVR)

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2010 2011 2012 2013

Ford Transit Connect

Tesla Roadster

CODA Sedan

Chevy Volt

Nissan LEAF

Mitsubishi i-Miev

BYD e6

Fisker Karma

Ford Focus

Toyota Prius PHEV

Toyota RAV4-EV

Smart Fortwo ED

Tesla Model S

Potential downward pressure on emissions, increasing CAFE standards, reductions in incremental cost, advancing battery technology, availability of tax incentives, and higher gasoline prices may provide

sustainable support for manufacturers

Electric Vehicles: Approximately 35 New Models by 2013

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Electric Vehicles: Proposed EV Pilot Program

Pilot program offering time-of-use pricing options DVP hopes to learn about the EV penetration, customer’s

charging patterns, and impacts on the grid Supports customers’ adoption of EVs while attempting to

minimize grid modifications by encouraging off-peak charging – EV-only rate: 35 cents/night for 40-mile commute – Whole-house rate: 33-41 cents/night for 40-mile commute – Compares to 86 cents/night using standard residential rate – Up to 750 participants in each rate option

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National cumulative growth trend indicates growing strong market interest in this sector – Tax credits available through

2016 for solar and small wind <100 kw

Significant growth in DVP Net-Metered Systems in 2010 – Total installed capacity is greater

than 2 MW – 330% annual increase from 2009 to

2010

2 3 1 3 13 21 43

77

258

48

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*

Annual DVP Net-Metering Customers

Net MeteringCustomers

VA

*Note: Includes all applications through March 11, 2011

0

20,000

40,000

60,000

80,000

100,000

120,000

2002 2003 2004 2005 2006 2007 2008 2009

Cumulative Number of Net Metering Customer-Generators

Customer-Generators

National

Proliferation of Distributed Generation

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Commonwealth of Virginia Legislation: HB 1686 - Solar DG Demonstrations – Authorizes SCC to approve petitions for:

• Utility-owned solar DG • Special tariffs to facilitate customer-owned solar DG

– Dominion intends to file for approximately 30 MWs of utility-owned DG

Distributed Renewable Generation

Source: Southern California Edison 14

AES: Areas of Focus

Generation

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Offshore Wind Generation

Potentially one of the largest sources of renewable, carbon-free energy in Virginia

More costly to install and maintain

than onshore wind

DOE grant to look at ways to reduce the cost

Virginia Offshore Wind Development Authority

Transmission studies

Expect Federal Call for Information in Q4 2011

Draft map of VA offshore parcels

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Dominion’s Solar with Integrated Battery Project

4 MW ground-mounted solar photovoltaic project in Halifax County 12.5 MW hrs of nickel-iron battery storage

Battery chemistry first developed by Edison in mid-1800’s Long shelf life and slow discharge rate

Dimensions: 40’x 61’ Battery Array Weight: 264,240 lbs Capacity: 12.5 MWH Voltage: 48V

Objective to test the integration of solar and battery storage on Dominion’s system

Gap exists between solar peak and utility’s peak load

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Energy Storage Technologies

Bath County Pumped Storage Station Evaluating other energy storage applications

- Batteries - Fuel cells

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Summary: Powering Virginia

2.5%2.3%

2.2%

1.9%1.8%

1.7% 1.7%

1.4% 1.4% 1.4% 1.4% 1.4% 1.4%1.3% 1.3% 1.3% 1.3%

1.2%1.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

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PEN

LC

BG

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JCPL

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APS

DLC

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DPL

PEC

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ATSI

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TON PS

REC

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PEPC

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4,500 megawatts needed by 2019 $4.2 billion planned for infrastructure

in Virginia over next three years Meet demand with balanced fuel mix,

competitive rates Renewable energy, smart grid

infrastructure, play important roles

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Considerable technology advancements

No “Silver Bullet”

Evolution, not revolution

Costs must come down

Scalability is critical

Summary: Role of Technology

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