Natural Gas as Part of a Clean Energy Portfolio - PowerPoint Presentation

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Natural Gas as Part of a Clean Energy Portfolio

Reliable. Affordable. Clean. Community.Slide2

Geographic Footprint

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A National PerspectiveSlide3

Electric Transmission

6,600

miles

of transmission linesFavorable regulatory environment

Electric Distribution

57,600 miles

of distribution l

ines2.6

million franchise retail customer accounts in VA and NC

Utility Generation

21,500 MW

of capacity

Balanced, diverse fuel mix

Favorable regulatory environment

Merchant Generation

4,700

MW

of capacity, including nuclear, gas and renewable powerActive hedging program for energy revenue/margins

Gas TransmissionTogether with Gas Distribution, operates one of the largest natural gas storage system in the U.S.15,000 miles of pipeline in eleven statesCove Point LNG import facilityWell positioned in Marcellus and Utica Shale regions Gas Distribution51,300 miles of distribution pipeline and 2.3 million natural gas customer accounts in five statesRetail

Electric Transmission &

Distribution

Gas Transmission &

Distribution

Generation

Profile December 2016

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Dominion energy Profile

Primary Operating Segments

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Corporate Transition

2000: $9 billion merger with Consolidated Natural Gas a major natural gas transmission and distribution company2002:

$217 million acquisition of Cove Point LNG a major LNG import facility2009: Dominion puts Cove Point Expansion Project into full commercial service

2014: Dominion begins construction for approximately $4 billion Cove Point LNG Export project2014: Dominion and partners announce proposed Atlantic Coast Pipeline -- $5 billion to $5.5 billion, 600-mile natural gas pipeline from West Virginia, southeast through Virginia and central North Carolina.

2015: Purchase of Carolina Gas Transmission from SCANA Corporation for approximately $492.9 million. CGT owns and operates interstate natural gas pipeline in South Carolina and southeastern Georgia. 2016:

Dominion Energy and Questar Corporation combine.

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Notable DevelopmentsSlide5

Generation Transition

Coal RetirementsChesapeake Energy Center - coal units retired 2014

Yorktown – retired in April 2017Converted coal-fired units to natural gas Possum Point - 2003Bremo

- 2014Converted coal-fired units to biomassHopewell - 2013Altavista - 2013

Southampton - 2013Hybrid coal and biomass, new technologyVirginia City Hybrid Energy Center - 2012

New combined cycle natural gas power stationsWarren County - 2014Brunswick County - 2016Greensville County - late 2018 projected startup

Notable Developments

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2007 vs. 2016

More Gas & Renewable Energy, Less Coal

Electric Generation* by Fuel Type:

Coal

Gas

Hydro

Nuclear

Solar

Fuel Cell

*

Electric

Production by Fuel proportions exclude Non-utility Generation (NUG) under

contract.

Coal 26.5%

Nuclear 33.8%

Gas 33.6%

Oil 0.5%

Renewables

3.2%

Pumped Storage2.4%

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Modern Natural Gas Generation

1,585 MW plant in Greensville County, VA 3-on-1 gas fired combined cycleThird similar project (similar to Warren and Brunswick Power Stations)Estimated Costs of $1.3 billion

Expected in-service late 2018Greensville Power Station

Charlottesville

Greensville

Richmond

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The Greensville 3x1 CC is expected to be the largest and most efficient in the U.S.Slide8

Atlantic coast pipeline

What is the Atlantic Coast Pipeline (ACP)?

A joint ownership venture with four energy companies to build an interstate natural gas transmission pipelineWill serve the growing energy needs of Virginia & North Carolina

Why Build the Atlantic Coast Pipeline?Cleaner energy for our customers and our community Provides access to low-cost natural gas supply

Increases reliability & security of gas supply Decreases nation’s dependence on foreign importsWho will benefit from it?

Residential Customers Customers with BusinessesOverall Economy in these States

Project Overview

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Air Pollutant performance

Dramatic Reductions

Emission Rates of Sulfur Dioxide (SO2), Oxides of Nitrogen (

NOx

), and Mercury (Hg) have decreased even as power generation (demand) has increased since 2000.

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CarBON PERFORMANCE

Continued Success

CO2 emissions intensity has decreased as generation increased (Includes divestitures)

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A Megawatt is not a megawatt

Energy Sources Compared

Generation Type

Capacity FactorCarbon-free?

Dispatchable?Solar PV

24%YES

NOOnshore Wind

39%YES

NOOffshore Wind

45%YES

NO

Biomass83%

*YES

Advanced

Combine Cycle Natural Gas

87%

NO (about 1/2 carbon of coal)

YES

Advanced Nuclear

90%

YESYES*EPA has viewed biomass as carbon free but is reviewing this determination

Source: U.S. Energy Information Administration, Estimated LCOE (simple average of regional values) for new generation for plants entering service in 2022, April 201711Slide12

ACP Benefits

Reliability and diversity of supplyCleaner airEconomic development activity potentialEconomic activity during construction and operationSupport growth of intermittent renewable power sources

Employment opportunitiesProperty tax revenuesEconomic & Environmental

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Relicensing nuclear

2017 Nuclear Relicensing Cost Recovery LegislationLicense extension for North Anna & Surry to allow them to operate for the next 20 years -- currently scheduled to retire between 2032 and 2040. Potential loss of existing zero-emitting nuclear would significantly complicate compliance with any carbon reduction program in the post-2030 timeframe.

To achieve electric output compatible with NA and Surry (3,346 MW) would require over 98,000 acres of solar panels (over 2 times the size of Richmond, VA)

Supports Fuel Diversity

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Pumped Storage—SB 1418

Declares one or more pumped storage hydro facilities in the coalfields region to be in the public interest:Enjoys broad bipartisan support

Also declares associated renewable generation in the coalfields region to be in the public interestPumped storage is the only large-scale source of energy storage commercially available at present

Major economic development potential for Southwest Virginia2017 General Assembly

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Residential Rates

Very Competitive

As of May 2017, Dominion’s typical residential bill

is: - 8.4% Below the VA Statewide Average - 24.2% Below the East Coast Average

- 15.4% Below the National Average - 34.9% Below the RGGI States Average - 16.5% Below the D.C. Regional Average

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Residential Rate Comparison, Typical Monthly Bills, 1,000 kWh

Source: Edison Electric Institute,

Typical Bills and Average Rates Report: Winter 2017

. Rates effective Jan.1, 2016. Annualized, monthly residential bills, 1,000 kWh usage. Latest data available. Slide16

Industrial Rates

Extremely Competitive

As of

May 2017,

Dominion’s

average industrial rate is:

- 21.2% Below Southeast Peer Group Avg - 44.7% Below East Coast Average - 24.6% Below CNBC “Top States for - 52.7% Below RGGI States Average

Business” 2016 Average - 35.8% Below National Average

Source: Edison Electric Institute, Typical Bills and Average Rates Report : Winter 2017

. Rates effective Jan. 1, 2017. Annualized, monthly industrial bills, 1,000 kW demand & 650,000

kWh usage. Latest data available. Nebraska industrial rates from U.S. Energy Information Administration, Electric Power Monthly, April 2017

, for rates effective February 2017.

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(¢/kWh)

Industrial Rate ComparisonSlide17

Project resistance

A Vocal Minority

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aCP environmental & Safety best practices

Industry-leading, best-in-class program for construction, emission controls, methane reduction measures Program to avoid landslides on steep slopes

100% X-ray inspected pipeline welds Hydrostatic pressure tests prior to operation 24-7/365 monitoring from Dominion’s gas control center

Remote-controlled shut-off valves State-of-art inspection program

Extensive Planning & Precautions

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Renewable energy 2000

Dominion Energy’s Renewable Portfolio

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Hydroelectric in operation: 318 MW

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Renewable energy today

Dominion Energy’s Renewable Portfolio

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Questions?

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