Tom Farrell Chairman, President & CEO Barclays Capital Energy/Power Conference September 6, 2012
Todays Agenda Continued Business Model Refinement Regulated Growth 2006 2012 Merchant Generation Actions & Outlook 5-Year Planned Growth Capital Update 2013 Operating Earnings Guidance 2013 Financing Plan New Technology…
Business Model Refinement 4
Business Model Refinement Operating Earnings Mix* 2006 2009 2011 2013+ Actual Target Mix Actual Target Mix Regulated 42% 65-75% 76% 80-90% 58% 25-35% 24% 10-20% Unregulated Continue transition to a more regulated earnings…
Regulated Growth 2006 to 2012 6
Utility Generation Growth Projects 2006 to 2012 New CTs 4,900 1,100 MWs 2,300 MWs of of Ladysmith 3,4,5 New New Capacity Capacity Uprates 32% increase Fossil Nuclear Mt. Storm Warren County Bear Garden (2014) Remington…
Electric Transmission Growth Projects 2006 to 2012 Incentive ROE Projects Pleasant View to Hamilton Meadow Brook to Doubs Loudoun Mt. Storm Hamilton Pleasant View Carson to Suffolk Meadow Brook Loudoun Bristers Ongoing &…
Gas Transmission Growth Projects 2006 to 2012 Natural gas transmission, gathering and storage pipeline LNG Natural gas storage operated Cove Point Expansion Pier Modernization Pipeline Projects USA Storage Dominion Hub I-III…
Growth in Regulated Net Plant (in billions) 30 75% growth 25 11 billion increase 20 in 6 years 15 10 5 0 2007 2008 2009 2010 2011 2012e Net Plant at 2006 Regulated Electric Growth Regulated Gas Growth Please refer to page 2…
Merchant Generation Actions & Outlook 11
Merchant Fleet History 2006 Kewaunee Rumford In 2006, Salem Harbor Dominions Brayton Point Elwood Armstrong Manchester merchant fleet State Line Troy Millstone Fairless was at its Kincaid Pleasants Morgantown largest size…
Merchant Fleet History 2006 2011 Sold Peakers Rumford Salem Harbor Morgantown Brayton Point Elwood State Line Manchester Pursuing Sale of Fairless Millstone Kewaunee Kincaid Retired Salem Harbor *Excludes wind assets…
Merchant Fleet History 2012 Sold Salem Harbor Brayton Point Elwood Manchester Millstone Retired / Sold Kincaid Fairless State Line *Excludes wind assets Capacity of 7,000 MWs Please refer to page 2 for risks and…
Change in Power Markets Dark Spreads 45 40 Significant decline in ATC dark 35 spreads since 2007 30 25 /MWh 20 15 Kincaid 10 5 Brayton Point 0 -5 2007 2008 2009 2010 2011 2012 2013 NI Hub Mass Hub Represents generic…
Downsizing of Merchant Fleet Market conditions have changed Exiting merchant coal & western PJM Pursuing sale of Brayton Point, Kincaid, & Elwood Anticipated benefits Re-deploy capital to regulated businesses Reduce 2013 equity…
Merchant Fleet Going Forward Positive spark spread CC Complements Millstone Manchester Lowest-cost baseload in NE Significant potential upside Millstone with modest gas price Fairless recovery Positive spark spread CC…
5-Year Planned Growth Capital Update 18
Last Years Plan Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 19
This Years Plan Planned growth capital (billions) Additional capex of 2.5 - 3.5 billion 16.0 - 17.0 billion for Cove Point liquefaction 13.5 11.3 4.8 9.1 3.8 7.2 3.0 2.5 5.2 4.5 4.4 3.6 1.5 2.5 2.6 0.8 1.6 3.6 0.7 2.5…
2013 Operating Earnings Guidance and Financing Plan 21
2013 Financing Plan Equity Debt 1.8 - 2.4b Merchant Sales Eliminate need for additional market equity Reduce some debt need 1.5b Avoided Equity Issuance 300m DRIP Program . Maturities Issuances Note: Plan excludes Cove…
EDGE Energy Distribution & Grid Efficiency Dominion-developed voltage control algorithm technology Enables conservation voltage reduction Benefits Reduces demand & impact on environment Conserves energy Marketing partners…
Summary 27
Summary Exiting merchant coal & western PJM Continue our strategy of de-risking the company Regulated infrastructure investment plan Continues to support future earnings growth 2013 operating earnings guidance Midpoint is 5-6%…
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Appendix 30
Utility Generation Projects 2012 2013 2014 2015 2016 2017 VCHEC 4.8 billion Uprates planned growth capex Biomass Conversions 2012-2017 Bremo Conversion Warren County Brunswick County Future CC Please refer to page 2 for…
Gas Transmission Projects 2012 2013 2014 2015 2016 2017 Appalachian Gateway 2.3 billion Ellisburg to Craigs planned growth capex Northeast Expansion 2012-2017 Natrium Phase I 2.5 - 3.5 billion Tioga Area Expansion additional capex…
GAAP Reconciliation 2011 Original Earnings Earnings Per Share (diluted) Reconciliation of measures prepared in accordance with Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures The net effects of the following…
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