VEDA Spring Conference DOMINION RESOURCES Utility & - PowerPoint PPT Presentation

VEDA Spring Conference DOMINION RESOURCES Utility & Infrastructure Investment for Economic Development March 20, 2015

Dominion Resources, Inc. Method of Service 1. Involve us as early as possible in the site selection process so that we can determine the best method of service. 2. Determining the proper method of service helps optimize electric service. Method of Service is determined by several factors : 1. Electrical load ( DEMAND in kW and USAGE in kWh ) 2. Nature of the prospect’s electrical load 3. Infrastructure available in proximity of a particular site 4. Cost and practicality (4:1 non-fuel revenue credit) 2

Dominion Resources, Inc. Method of Service When a business requires new electric service, please keep in mind….  Loads greater than 15 MW generally will be evaluated to determine if service is provided directly from transmission system (115 kV or 230 kV).  Special service requirements, such as the need for alternate or dual feed service, will require additional charges. 3

Dominion Resources, Inc. How we Develop a Rate Quote With some understanding of the customer’s operations, the utility professional can help determine load factor, which is helpful in estimating power cost. We need :  Peak demand in kW (maximum rate at which power is consumed)  Consumption in kWh (amount consumed per month)  Delivery voltage required  Approximate hours of daily operation (if available) 4

Dominion Resources, Inc. Economic Development Site Info 5

Dominion Resources, Inc. Economic Development Site Info 6

Dominion Resources, Inc. Economic Development Rider Virginia SCC passed an Economic Development Rider (EDR) in June 2013 allowing for qualifying industrial customers (including data centers) to receive a 5-year discount adding up to approximately $1M depending on load. 7 7

About Dominion Virginia Power: Dominion Resources, Inc. Balanced, Diverse Fuel Mix 2014 Electric Production by Fuel* 2% Coal 18% Oil 37% Nuclear Natural Gas 41% Renewables 2% *Total production by regulated units. Excludes non-utility generation (NUG) under contract. 8

Dominion Industrial Rates Consistently Below the Dominion Resources, Inc. National Average Since Reregulation July 2008: Price controls on fuel Cents per kWh - Dominion Virginia Power’s typical industrial rate factor expired average will be 37.5 percent below the national average as of April 2015 December 2008: Base rate cap expired *Rate for April 2015 reflects generation rider adjustments, interim fuel reduction (including write-off of $85 million in deferred expenses) Dominion National Average Source for national average: Edison Electric Institute, Typical Bills and Average Rates Report , industrial, 1,000 kW demand and 650,000 kWh usage, monthly, annualized for rates effective January 1 and July 1, of each respective year. National average for July 2014-July 2015 reflects rates in effect July 1, 2014 – latest data available. . 9

Dominion Industrial Rates: Dominion Resources, Inc. Lower than Statewide Averages in any CNBC “Top 10 for Business” States (¢/kWh) 9 8.2 8.2 8.2 2008 rate 8 Was 6.2 7.0 6.8 6.7 6.6 7 6.3 6.2 6 4 1 5.5 5 2 3 6 7 5 4 3 2 1 0 Dominion North Texas Utah North Dakota Minnesota Washington Colorado Nebraska Georgia Virginia Carolina Power CNBC rankings as of June 2014 shown in red. Virginia was tied for eighth place. Source: EEI “ Typical Bills and Average Rates Reports: Summer 2014 ” for rates effective July 2014 (based on 1,000 kW demand, 650,000 kWh monthly usage) NE : U.S. EIA: “Electric Power Monthly: September 2014 ” for rates effective July 2014 DVP: Company information for rates effective April 1, 2015 10

ATLANTIC COAST PIPELINE Ownership, Structure and Timeline * Dominion will JOINT VENTURE AMONG THE FOLLOWING: construct, Dominion Resources* 45% Ownership operate and Duke Energy 40% Structure manage the Piedmont Natural Gas 10% pipeline AGL Resources (Virginia Natural Gas) 5% ** Excludes Estimated $4.5 - $5.0 billion ** Cost financing costs Submit FERC pre-filing October 2014 File FERC application Summer 2015 Projected Timeline Receive FERC Certificate Summer 2016 In-Service Late 2018 11

PROJECT NEED  The ACP pipeline would improve the supply of natural gas to:  Utilities looking to meet new U.S. EPA clean air regulations.  Local gas utilities searching for new, less expensive supplies for residential and commercial customers.  Industries interested in building or expanding their operations. 12

Secondary line PROJECT DETAILS Length: Approximately 554 miles Pipe: West Virginia: 42-inch diameter Virginia: 42-inch diameter North Carolina: 36-inch diameter Secondary line: 20-inch diameter Capacity: 1.5 billion cubic feet/day Three compressor station locations: 1. Lewis County, West Virginia 2. Buckingham County, Virginia 3. Northampton County, North Carolina Route: A proposed route is being studied. Dominion is collecting data through surveys and consultations with landowners and other stakeholders to determine the best route with the fewest potential impacts to environmental, cultural and historical resources.

Dominion Resources, Inc. 14 QUESTIONS!

Regulated Solar Initiatives - Overview 400 MW Utility-Scale Solar Virginia within 5 Years – Announced Feb. 2015 Up to 30 MW Solar Partnership Program – Approved Nov. 2012 Up to 3 MW Solar Purchase Program – Approved Mar. 2013 2 MW Community Solar Pilot Program – Filed Jan. 20, 2015 Schedule RG (not limited to solar) – Approved Dec. 2013 15

Commercial-Scale Offshore Wind Early Stage Development  Dominion won Bureau of Ocean Energy Management’s competitive auction on September 4, 2013 – DOJ to perform auction antitrust review – 30 days – Expect lease from BOEM early October 23.5 nautical miles 112,800 acres  Area auctioned as a single block; supports up to 2,000 MW  Lease term of 38 years (5-year development & 33-year operations) Next steps upon lease receipt: – Execute lease – File Site Assessment Plan by April 2014 – Perform site characterization surveys – File a Construction and Operations Survey Plan by October 2014 16 16 Please refer to page 2 for risks and uncertainties related to projections and forward looking statements.

Dominion Resources, Inc. Service Requirements It is also very helpful for the utility to receive the following information:  Load characteristics  Type of equipment employed  Power quality requirements  Power factor  Number of delivery points  Date electrical service is required  Construction power requirements 17

Dominion Resources, Inc. From Generation to the Customer Transmission Line Notes: Transmission Line – Very large industrial or commercial customers are sometimes served from transmission lines when load requirements or unusual circumstances justify Rights of Way – Transmission lines are located on purchased or leased rights of way – making them very expensive to maintain, alter or expand Can be from 100 ft up to 200 ft wide. Distribution - Underground distribution, 15 ft. wide. Overhead distribution up to 30 ft. wide. 18

Dominion Resources, Inc. Explanation of Typical Rates • Time-of-Use Rate – cost varies according to time of day; provides cost savings if a customer can adjust load to off-peak times. 19 19

Dominion Resources, Inc. Common Electric Industry Terms Amps (or Amperage) kWh Consumption Volts (or Voltage) kW Demand Hours Use kVA Three-Phase Power Power Factor Single-Phase Power Load Factor 20

Dominion Resources, Inc. Water-to-Electric Analogy Voltage (volts) is like pressure in the pipe (in pounds per square inch) kW Demand (of kW) is similar to the flow rate of water in the pipe (gallons per minute). Peak electric demand is highest used 30 minutes within a month. Consumption (of kWh) is similar to the gallons of water in the bucket. For determining the power bill, the period utilized is a month. 21

Dominion Resources, Inc. Power Reliability and Power Quality Utilities distinguish between these two terms, usually based upon how long the event lasts Power Reliability refers to whether the power is on or off – usually represents outages greater than five seconds. Power reliability is impacted by weather, animals, vehicles, equipment malfunction, and sometimes utility operations. Alternative feeds and generators are back- up power systems that may be purchased to improve reliability. 22

Dominion Resources, Inc. Power Reliability and Power Quality Power Quality relates to the “purity” of the power that flows into the facility. Power quality incidents include sags, surges, transients, bugs, and other “glitches.” These events usually have short durations (fractions of a second). Power quality requirements are often driven by the customer’s equipment needs. Power quality performance may be impacted by neighboring customers, the power company, or other equipment inside the customer’s facility. The solutions to power quality issues are highly customized and typically occur on the customer’s side of the utility meter. Some solutions include UPS (Uninterruptible Power Supplies) and other systems, which are designed for intermittent short-term voltage support. 23