Visit us online at: www.dom.com/investorsDominion’s common stock trades under ticker D:NYSE

Morgan Stanley Global Electricity & Energy Conference

New York, NY

March 15, 2007

New Dominion

2

This presentation contains certain forward-looking statements that are subject to various risks and uncertainties. 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 fluctuations in energy-related commodity

prices, including changes in the cost of fuel for our regulated electric business, the timing of the closing dates of acquisitions or

divestitures (including any divestiture of our natural gas and oil assets), additional risk exposure associated with the termination

of business interruption and offshore property damage insurance related to our exploration and production operations and our

inability to replace such insurance on commercially reasonable terms, estimates of future market conditions, estimates of proved

and unproved reserves, the company’s ability to meet its natural gas and oil production forecasts, the behavior of other market

participants, and the effects of hurricanes on our operations, gas and oil production and realized prices. Other factors include, but

are not limited to, weather conditions, governmental regulations, economic conditions in the company's service area, risks of

operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and

electric rates collected by Dominion, risks associated with the realignment of our operating assets (including the potential dilutive

effect on earnings in the near term and costs associated with any sale of our exploration and production business and the

redeployment of proceeds from any sale), changes to rating agency requirements and ratings, changing financial accounting

standards, trading counter-party credit risks, risks related to energy trading and marketing, and other uncertainties. Other risk

factors are detailed from time to time in Dominion’s most recent quarterly report on Form 10-Q or annual report on Form 10-K

filed with the Securities & Exchange Commission.

 

 

Important Notes to InvestorsImportant Notes to Investors

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New Dominion Asset Mix New Dominion Asset Mix Focus Area = East of MississippiFocus Area = East of Mississippi

RetailRetailRetailRetail

Plus 1.5 million unregulatedretail energy customer accounts in 11 states

4 million franchise gas and electric delivery customers in 5 states

TransportationTransportationTransportationTransportation7,800 miles of naturalgas pipeline

Nearly 1 trillion cubic feetof natural gas storage

Cove Point LNG Facility6,000 miles of electric transmission

ManufacturingManufacturingManufacturingManufacturing

~1.0 trillion cubic feet equivalent of proved gas reserves*

~100 Mmcfe of daily production

~ 26,300 MW of electric generation

*Appalachian proved reserves as of 12/31/06 ~1.0 Tcfe

Includes 164 Bcfe of proved reserves owned by Dominion Transmission and reported in Dominion Energy.

Map does not reflect pending sales of LDC’s or certain merchant gas-fired generation plants; does reflect potential divestiture of non-Appalachia E&P properties

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Current Initiatives Become 2008 DriversCurrent Initiatives Become 2008 Drivers

2006

2008 & Beyond

•E&P Divestiture

•VA Legislation

•ROIC Focus

•Operational Excellence

•Reduced commodity price

sensitivity

•Greater earnings stability & predictability

•Core Growth Opportunities

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E&P Divestiture on TrackE&P Divestiture on Track

Reserves as of 12/31/06:• Audited Proved reserves: 6.53 Tcfe

• Unaudited 2P, 3P, 4P estimates:

– Probable: 3.21 Tcfe

– Possible: 3.86 Tcfe

– Potential: 25 Tcfe

Data Room opened February 2007

Expected close of any sale by mid-2007

Use of proceeds to reduce debt, buyback stock

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Legislative Initiatives Stabilize EarningsLegislative Initiatives Stabilize Earnings

VA Fuel Reset: • Effective July 1, 2007

• Traditional fuel pass through to consumer

Hybrid Regulatory Model:• Recognizes retail choice did not develop in Virginia

• Identifies need for baseload generation to be built

• ROE based on peer group average of southeast utilities

• ROE adder for new build: nuclear, coal, combined cycle

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ROIC FocusROIC Focus

Focuses on risk-adjusted returns for individual assets Spans all operating units Fundamental approach to improving our business 2006 Summary:

• Energy: Sale of Hackberry Storage– Completed in 2006

• Generation: Sale of Peakers– Closed first quarter 2007

• Delivery: Sale of LDC’s– Expected to close first half 2007

2006 Operational Excellence:

A Strong Foundation for the Future

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DeliveryDeliveryImproving Electric Service ReliabilityImproving Electric Service Reliability

136.5

139.3

128.3

121

110

115

120

125

130

135

140

2003 2004 2005 2006

8% Improvement

Min

utes

out

6% improvement

Bested goal of 125 minutes out

Average Customer Minutes Out

Excluding Major Storms

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Generation’s Nuclear and CoalGeneration’s Nuclear and CoalOngoing ExcellenceOngoing Excellence

2006 Nuclear Accomplishments:

•Nuclear Fleet Capacity Factor of greater than 90% for third year running

•Millstone 3 achieved a capacity factor of 100%

•North Anna 2 achieved a capacity factor of 99.7%

2006 Coal Highlights:

•Utility Large Coal Equivalent Availability of 88.5%, the best in the last six years

•Utility Large Coal Capacity Factor of 83.9%, up from 78.6% in 2005

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Generation’s Air Quality ImprovementsGeneration’s Air Quality ImprovementsAhead of the Curve Ahead of the Curve

VA and WVA: pre-2000 controls ($400 million) Scrubber at Mt. Storm

Monitors and NOx controls (system wide)

Clover scrubbers

U.S. EPA Agreement and Related Controls: since 2001 and in progress ($1.7 billion)

Scrubbers: Mt. Storm, Chesterfield (Unit 6 by 2008 & Unit 5 by 2010)

SCRs: Chesterfield, Mt. Storm, Chesapeake

SNCRs: Clover, Chesapeake, Yorktown

Converted Possum Point 3 & 4 from coal to gas

Built gas-fired Possum Point 6

CAIR, CAMR: ($1.3 billion) VA and Merchant: CAIR, CAMR

Scrubbers

Additional SCRs

Mercury control equipment

New England: Related state specific regulations Scrubbers

SCRs

Mercury control equipment

1

Chesterfield Unit 6 SCR

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Dominion EnergyDominion EnergySolid Improvement, Continued SuccessSolid Improvement, Continued Success

Improving the electric and the gas side of the business year over year through maintenance, efficiency.

0

1,000

2,000

3,000

4,000

5,000

6,000

2005 2006

Electric Transmission Inspections

Natural Gas Liquids Production atHastings Extraction Plant

0

50

100

150

2005 2006

Hel

ico

pte

r M

iles

Insp

ecte

d

Mill

ion

s o

f G

allo

ns

~ 300%

Up 6%Result = less than 4 minutes out

New Dominion

=

Increased Shareholder Value

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Lower Sensitivity, Reduced RiskLower Sensitivity, Reduced Risk

As commodity prices rise and fall, New Dominion’s earnings have two-thirds less corresponding sensitivity.

EPS

Com

modities

Current Dominion

New Dominion

EPS

Com

mod

ities

Price Movement

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Cornerstones of the New DominionCornerstones of the New Dominion

Strong electric utility franchise area Major gas LDC Successful, growing retail program Profitable merchant generation Expanded LNG facility Largest natural gas storage system Strategic natural gas pipeline Low-risk E&P operation

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Growth Drivers and OpportunitiesGrowth Drivers and OpportunitiesIn Place for 2008, BeyondIn Place for 2008, Beyond

High growth electric service territory Dominion East Ohio infrastructure

opportunities Dominion Retail 10-15% growth

High quality, low-cost generation fleet

Merchant generation assets located in NE market

Uprates, site expansions, and other organic growth potential

Well situated mid-stream assets High value service offerings Organic infrastructure growth

High drilling success rate 300 wells drilled annually High potential drilling prospects Very low decline rate ~5%

Key Attributes

Appalachia

Energy

Generation

Delivery

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ResultingResulting Growth Rate: 4-6%* Growth Rate: 4-6%*

*Projected operating segment earnings growth rate off 2008 base year.Percent contribution of each Business Unit represents approximate percent of 2008 operating segment earnings.

Energy ~20% 5-6% growth

Delivery ~20% 2-3% growth

Generation >55% 5-6% growth

Appalachia <5% 2-3% growth

Please refer to the “Important Note to Investors” on page 2 of this presentation for risks and uncertainties related to projections and forward looking statements.

AppendixAppendix

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New DominionNew Dominion Key Modeling Considerations - 2008Key Modeling Considerations - 2008

Proved E&P reserves estimate as of 12/31/06 (excluding Appalachia): 5.5 Tcfe Book value of E&P (excluding Appalachia): $10.5 billion Comparable transaction values

Suggested source: J. S. Herold financial database

Tax basis of E&P assets (excluding Appalachia): $3.8 billion Tax rate: 37% Average cost of debt: ~6.5% (Pre-tax) Credit objective: maintain existing credit metric targets

• Adjusted FFO/Debt >=20%• Adjusted FFO to Interest >= 4.2x• Adjusted Debt to Capitalization <= 50%

Estimated E&P earnings mix in 2008 (as % of operating earnings) Status Quo E&P: ~40% of total status quo earnings (excluding corp/other) Appalachian Only: <5% of total New Dominion earnings

New ongoing Dominion operating earnings projected growth rate: 4-6%

Please refer to the “Important Note to Investors” on page 2 of this presentation for risks and uncertainties related to projections and forward looking statements.

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New DominionNew Dominion 2008 Earnings Model (Post-Divestiture)2008 Earnings Model (Post-Divestiture)

Please refer to the “Important Note to Investors” on page 2 of this presentation for risks and uncertainties related to projections and forward looking statements.

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E&P Reserve LocationsE&P Reserve Locations

1

8

4

2

2

5

7

3

6

Proved reserves (Bcfe)as of December 31, 2006: 6,530

Daily Production (Mmcfe/day)YTD December 31, 2006: 1,280

1 CanadaProved Reserves (Bcfe): 267Daily Production (Mmcfe/day): 60

2 Gulf CoastProved Reserves (Bcfe): 428

Daily Production (Mmcfe/day): 131

3 Gulf of MexicoProved Reserves (Bcfe): 967Daily Production (Mmcfe/day): 503

4 Appalachia*Proved Reserves (Bcfe): 1,006Daily Production (Mmcfe/day): 107

5 Mid-ContinentProved Reserves (Bcfe): 780Daily Production (Mmcfe/day): 126

6 PermianProved Reserves (Bcfe): 2,146Daily Production (Mmcfe/day): 219

7 Rocky Mountain/OtherProved Reserves (Bcfe): 658Daily Production (Mmcfe/day): 113

  = 100 BCFe

Major Producing AreasNon-Appalachia

Appalachia

8 Michigan

Proved Reserves (Bcfe): 278Daily Production (Mmcfe/day): 21

* Includes 164 Bcfe of proved reserves owned by Dominion Transmission and reported in Dominion Energy.

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E&P 2006 Reserve DataE&P 2006 Reserve Data

Reserves by Operating Basin (Bcfe)

Basin Proved 1 Probable Possible Total 3P

Canada 267 156 119 542Gulf Coast 428 194 247 869Gulf of Mexico 967 551 647 2,165Michigan 278 10 29 317Mid-Continent 780 435 966 2,181Permian 2,146 737 1,416 4,299Rocky Mountain 658 973 308 1,939

Non-Appalachian Total 5,524 3,056 3,732 12,312Appalachian 1,006 154 126 1,286

Total 6,530 3,210 3,858 13,598

Proved Reserves (Gas vs. Liquids) 1

Basin Gas Liquids Equivalent(Bcf) (mmbbls) Bcfe

Appalachian 935 11.9 1,006Non-Appalachian 4,201 220.4 5,524Total 5,136 232.3 6,530

1) Audited proved reserves as of 12/31/06

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Natural Gas and Oil Hedge PositionNatural Gas and Oil Hedge Position

Hedge positions as of Jan. 31, 2007

Description 2007 2008

Natural Gas:Appalachia-related Commodity Hedges (Bcf) 1, 2, 3 37 36 Average Hedge Price ($/Mcf) 1, 2 $6.24 $8.32

Non Appalachia-related Commodity Hedges (Bcf) 1,3 196 143 Average Hedge Price ($/Mcf) 1 $5.99 $8.27

Total Commodity Hedges (Bcf) 1, 2, 3 233 180 Average Hedge Price ($/Mcf) 1, 2 $6.03 $8.28

Locational Basis Differential Hedges (Bcf)1, 2 226 175Average Locational Basis Differential to Henry Hub ($/Mcf) ($0.32) ($0.45)

Liquids:Appalachia-related Commodity Hedges (mmbbls) 1, 2 0.011 0.013 Average Hedge Price ($/bbl) 1, 2 $30.80 $49.08

Non Appalachia-related Commodity Hedges (mmbbls) 1 10.01 4.99 Average Hedge Price ($/bbl) 1 $33.41 $49.36

Total Commodity Hedges (mmbbls) 1, 2 10.02 5.00 Average Hedge Price ($/bbl) 1, 2 $33.41 $49.36

Dominion Natural Gas and Oil Hedge Position

(as of January 31, 2007)

Description 2007 2008Natural Gas Equivalent:

Appalachia-related

Commodity Hedges (Bcfe) 1, 2, 3 37 37 Average Hedge Price ($/Mcfe) 1, 2 $6.23 $8.32

Non Appalachia-related

Commodity Hedges (Bcfe) 1,3 256 173 Average Hedge Price ($/Mcfe) 1 $5.89 $8.26

Total

Commodity Hedges (Bcfe) 1, 2, 3 293 210 Average Hedge Price ($/Mcfe) 1, 2 $5.93 $8.27

Dominion Internal Hedges

Dominion Virginia Power - Gas and Oil (Bcfe) 4, 7 25 --- Dominion Virginia Power - Coal (Bcfe) 5, 7 9 --- E&P Company Use (Bcfe) 6 16 17

Footnotes:(1) Excludes VPPs.(2) Includes Dominion Transmission, Inc.(3) Assumes a btu to Mcf conversion rate of 1.0.(4) Estimate of natural gas consumed under normal conditions at Dominion Virginia Power (DVP)

gas-fired units and DVP oil-fired units converted to Bcfe based on gas-oil correlation.(5) Estimate of unhedged coal consumed under normal conditions at DVP coal-fired units

converted to Bcfe based on gas-oil correlation.(6) Fuel used in E&P company operations.(7) For 2007, only includes estimated unhedged consumption for January 1st through June 30th.

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Generation and Coal Hedge PositionGeneration and Coal Hedge Position

Hedge positions as of Jan. 31, 2007

Net SummerCapacity

Power Hedge Position1(MW) 2007 2008

Utility Generation 17,628 100% 100%

Merchant GenerationMillstone 1,951 93% 82%Dominion New England Coal 1,436 99% 49%Dominion New England Oil 878 6% 0%Dominion New England Gas 432 0% 0%Kewaunee 556 100% 100%Kincaid 1,158 100% 100%Fairless Works 1,076 41% 25%Elwood 712 100% 100%State Line 515 100% 100%Other 42 100% 100%

Total Merchant2 8,756 79% 67%

Total Generation2 26,384 94% 90%

EFOR AdjustedCapacity

NEPOOL Capacity Hedging & Pricing (MW) 2007 2008

Dominion New England & Millstone 4,464 Capacity Percent Hedged 33% 15% Balance Subject to Transition Period Prices 67% 85%

Average Capacity Hedge Price ($/KW - month) $2.43 $3.04

Summer Capacity Ratings, Power Hedge and Fuel Hedge Positions(as of January 31, 2007)

Fuel Hedging & Power Pricing 2007 2008

Dominion Virginia Power Coal (Fuel) % Hedged 87% 53%Dominion New England Coal (Fuel) % Hedged 100% 46%

Millstone Energy Average Hedge Price ($/MWh) $63.60

1) Baseload units include the amount of available energy hedged. Non-baseload units include the amount of available capacity or "spark spread" hedged.Capacity shown represents only Dominion's interest in facility. Assume capacity remains constant in all periods shown.

2) Annual percentage calculations are capacity-weighted. Excludes Armstrong, Troy, and Pleasants gas-fired generation whose sale is expected to close in the first quarter of 2007.

Visit our website at: www.dom.com/investors/