Dominion

Corporate Strategy

We are continuing to execute our multi-year, multi-billion dollar regulated infrastructure investment plan to achieve sustainable financial and operational excellence and meet the growing energy needs of our customers.

This major "concrete and steel" construction program is the equivalent of building a mid-sized energy company from the ground up. Its main drivers include:

• Expected customer demand growth at our electric utility serving Virginia and North Carolina – one of the nation’s fastest growing regions – equivalent to adding 1 million new homes to our system in the coming decade;
• A boom in natural gas production from the Marcellus and Utica shale formations in the Appalachian Basin – an area where we plan to help producers transport their gas to market; and
• Needed modernization of the pipes and wires supplying energy to our distribution customers in Virginia, North Carolina, Ohio and West Virginia; and new transmission pipes serving natural gas markets in the Northeast and mid-Atlantic regions.

Key Elements of Our Strategic Growth Plan Regulated operating earnings mix of 65-75 percent of the total; 5-6 percent annual operating earnings growth beginning in 2012; Dividend payout ratio – the portion of earnings returned to investors in the form of dividends – of 60-65 percent, subject to approval by the board of directors; Regulated infrastructure investment plan to support future earnings growth; and Maximum value from unregulated electric and gas operations.