1. Penn State Investment AssociationUtilities Sector Dominion Resources D (NYSE) Eric Sterns Alex Abramowitz Ryan Dubin

2. Team Recommendation: Buy Top Three Reasons to Purchase: 2

5. 25% Unregulated Electric

6. 13% Unregulated Nat Gas Distr.

7. 10% Nat Gas Transport/Storage

8. 3% Commodity Sales

9. 2% Regulated Nat Gas Distr.4

10. Geographic Breakdown 5

12. Encouraging rebound in sales to commercial and industrial customers

13. 2010-2015 $10+ billion cap-ex program budgeted for regulated infrastructure in electric service area and in regulated gas business

14. Regulatory outcomes important for growth

15. Fundamentally, transmission growth and renewable generation are where you want to be

16. Highest realized ROE’s and greater probability of favorable rulings

17. New projects include two natural-gas plants, one coal/biomass plant, and several small renewable generation projects as well as transmission

18. Dominion is in the early stages of developing a 4-megawatt solar facility in Halifax County and is evaluating biomass and onshore wind farms as well

19. Meadow Brook to Loudoun line and Carson to Suffolk line are scheduled to be in service mid-year 2011. The two 500-Kilovolt transmission lines are on time and budget

20. Dominion Zone expected electric load growth  2.1% per year

21. Highest in the PJM Interconnection’s 20 zones

22. Forecasted peak demand growth equivalent to adding 1.1M homes to the system6

24. Virginia Economy

25. Unemployment rate  6.3% in March

26. Consistently ranked one of the best states for business

27. Aggressive economic development program

28. State ranked 2nd by Forbes and CNBC for business

29. Due to proximity to Washington, area is largely recession-resistant

30. Geographic advantage

31. Serves Midwest, Mid-Atlantic and Northeast United States

32. Potential market of 50 million homes where 40% of the nation’s energy is consumed

33. Access to Marcellus Shale through its WV and OH regulated distribution business7

35. Significant opportunity for value if power prices see a rebound

36. Until then, still generating good cash flows for the company

37. Virginia and North Carolina are historically very friendly to utilities

38. Dominion has sold $18 billion of unregulated energy businesses since 2006 as it shifts towards a regulated utility in the wake of a favorable shift in Virginia regulation

39. Current allowed ROE through forward-looking rider is 12.3% for the regulated utility

40. Recent settlement keeps Dominion’s rate base in Virginia in place until at least December 2014 and eliminates 2009 as a rate base review year

41. Settlement highlights Dominion’s ability to work with stakeholders to maintain a supportive regulatory environment

42. Dominion is also planning ~$5B in environmental compliance CAPEX which is recoverable in Virginia through rate riders8

44. Reduction in market cap and dividend risk

45. 8% hike in annual dividend to $1.97

46. Dividend yield of 4.40% vs. NLF Utilities 2.86%

47. Targeting a payout ratio of 60-65% in earnings

48. Dominion will diversify the Utilities portfolio

49. High dividend yielding stock

50. Makes up 6.62 % of the XLU

51. Less reliant on robust economic trends

52. Organic Growth Opportunities

53. Company is still a growth oriented utility targeting 5-6% EPS growth

54. Continuing to shift into regulated business model

55. Management continues to add shareholder value

56. Projected 400M-700M in buybacks in 2011, following 900M in 2010

57. ROE 24.23% vs. Industry average 14.04%9

58. 10 Comparable Analysis

59. 11 Ratio Analysis

60. 12 Five Year Summary & CAGRs

61. 13 Growth Analysis & CAGRS

62. 14 Projections

63. 15 Discounted Cash Flow

65. Dominion generates power from coal, natural gas, nuclear, and oil

66. Increases in inputs of power generation will result in less revenue from individual households

67. Diverse portfolio of inputs reduces overall risk

68. Regulation

69. Disallowance of major capital spending projects which are priced into earnings growth outlook will have a negative impact

70. Unfavorable changes to Virginia’s regulatory framework, which continue to be propose periodically in the legislature, would also be a negative16

72. Dividend yield of 4.41% versus NLF Utilities 2.86%

73. EPS Growth rate of 5-6% versus XLU Utilities mean of 4%

74. Dominion generates 28% of power from nuclear, however over half of the XLU benchmark has nuclear exposure. D’s business model has shown future generation projects will be fueled by natural gas and other renewable sources

75. Holding Dominion reduces our market cap and benchmark risk, and gives us a 4.41% yield while having strong regulated EPS Growth17

76. Correlation & Debt Distribution 18

77. Risk Analysis 0 1 2 3 4 5 Notes Favorable Virginia economy $26.37 B market cap Beat 2010 Earnings expectations Beta = 0.78 28% of Generation from Nuclear Reactors 19

78. Stock Chart 20

79. Team Recommendation: Buy Top Three Reasons to Purchase: 21

80. Questions or Comments?