Dominion Energy Update July 2018 - PowerPoint Presentation

1. Dominion EnergyUpdateJuly 2018

2. Carbon Reduction & Clean Energy1 of just 3 companies nationwide to reduce carbon intensity by +40%2

3. Carbon Reduction & Clean EnergyFleet Transformation and Cleaner Generation320072017

4. Key elements of TransformationCost-effective transition to cleaner generating sourcesReliability and security, both cyber and physical, are top-of-mindEnergy markets are increasingly competitiveNatural gas is abundant and prices are lowCustomers want the lowest cost resourcesCustomers want more renewable, self-generating optionsOlder fossil units such as the gas units struggle to compete economicallyWe regularly review our assets and act accordingly to keep rates lowThe gas units at Possum Point are far less efficient than the more modern, larger units we have developed in Warren County, Brunswick, and GreensvilleEvolving energy policy landscapeWHYReliability and SecurityFleet TransformationWHAT4

5. Enough solar energy to power 186,000 homes at peak solar productionNearly enough solar panels to stretch from Miami, FL to Seattle, WAMore than a 630% increase in solar capacity since 2015The carbon equivalent of taking over 260,000 cars off the road annuallyTotal solar capacity = 746 megawattsCarbon Reduction & Clean EnergyVirginia: Top 10 in solar and leading the way in offshore wind5

6. Reliability and SecuritySolar Generation Off-Peak6The grid is not a batterySolar does not generate at peak times when demand is high; therefore, there is the potential for solar generation to produce more energy than can be used at a given timeSolar PV Generation Curve

7. Reliability and SecurityThe Duck Curve7Source: California Independent System Operator

8. Significant progress continues Design, engineering essentially complete Executed construction contracts Materials procurement 94% complete Construction financing in place On schedule for in-service during 2019 Job fairs for local hiringNatural gas generation is a necessary complement to intermittent renewable energy8Reliability and SecurityRole of Atlantic Coast Pipeline in Transporting Cleaner Energy

9. Grid Transformation and Security Act of 20189Securing the energy gridUndergrounding certain lines Physical reinforcementCybersecurity investmentsReduce rates, issue refunds+$1 billion in customer refunds & rate reductions $200 million customer credit + ~$125 million rate reduction from tax reformEnd rate freezeRestores State Corporation Commission rate reviewsBipartisan support, broad coalition for energy reformTransform the energy gridUpgrade grid to handle renewable energyReplace 1970s-era electric meters, detect outages automatically, restore power faster, prevent certain outages

10. Grid Transformation and Security Act of 201810Bipartisan support, broad coalition for energy reformIncrease renewable energy 10-foldEnergy storage pilot program5,500 MW of wind and solar – including small solar, rooftop solar, up to 16 MW of offshore windEnables solar in localities where large ground-mounted systems are cost-prohibitiveAbility to provide new solar options for customersExpand EnergyShare & efficiency programs—ten year commitment $130 million to EnergyShare$870 million in energy efficiency programs – ends ‘RIM test’More than double current levels of energy efficiency Better tools for customers to understand and manage energy useLED streetlight conversionStakeholder engagementKey topics such as broadband access, economic development, solar

11. Grid Transformation & Security Act of 2018LED Streetlights11Legislation passed with enabling language that included LED conversions in the definition of “electric distribution grid transformation project”We are promoting smart, efficient, and sustainable communities through the deployment of LED street lightsPricing options and other details will be handled directly with the localitiesLED luminaires will offer 70 Watt, 100 Watt, and 150 Watt HID equivalencies. Options may include caps, bands, struts, clear or etched globes, chimney, and finials.