Dominion Hub III Project Moves Forward

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Dominion Hub III Project Moves Forward
               - Open Season draws 570,000 Dt/day of interest
             - Dominion will seek binding precedent agreements
          - Follows Dominion Hub I, which will move 200,000 Dt/day

    RICHMOND, Va., Jan. 8 /PRNewswire-FirstCall/ -- Dominion (NYSE: D)
announced today that its Dominion Transmission subsidiary has received more
than 570,000 dekatherms per day (Dt/day) of interest in its proposed
Dominion Hub III project during a recent open season, and will move forward
with obtaining binding precedent agreements.

    "The strong response to our open season demonstrates a high level of
interest from our core customers in having Rockies supply as an option for
their supply portfolios," said Jeff Keister, director-Wholesale Marketing.
"We are pleased we can offer this additional flexibility to our customers."

    This is the second Dominion project aimed at bringing Rockies supplies
into its system from a planned interconnect with the Rockies Express
pipeline in Clarington, Ohio. The first project, Dominion Hub I, will move
up to 200,000 Dt/day of supplies into the Northeast markets on behalf of a
Rockies shipper. Dominion has entered into interconnect agreements with
Rockies Express and filed an application with the Federal Energy Regulatory
Commission seeking approval of Dominion Hub I.

    Dominion Hub III would allow Dominion's firm transportation customers
to move a portion of their firm receipt rights to the planned
interconnection with the Rockies Express pipeline at Clarington. The
current design would allow approximately 300,000 Dt/day of existing firm
receipt point entitlements to be transferred to the Clarington
interconnect.

    By structuring the project to incorporate existing customer
entitlements, Dominion will be able to maximize the use of existing
pipeline infrastructure to move Rockies supplies to Northeast markets with
relatively minor facility additions. Because no major greenfield
construction will be required, the Dominion Hub III project can be put in
place with less disruption to landowners and the environment than other
proposed projects.

    Dominion Hub III participants will continue to have secondary access to
all other points on Dominion's postage stamp system, including access to
Dominion South Point.

    Dominion anticipates charging an incremental reservation surcharge for
the receipt point realignment, based on the expected cost of the required
facilities. The target surcharge is currently a unit rate of $0.06 per
dekatherm. Rates for this service will be based on the final design of the
project's facilities.

    For additional information, contact Jeff Keister at (804) 819-2820 or
Josh Eakle at (804) 819-2827.

    Dominion is one of the nation's largest producers and transporters of
energy, with a portfolio of approximately 26,500 megawatts of generation,
7,800 miles of natural gas transmission pipeline and 1 trillion cubic feet
equivalent (Tcfe) of proved natural gas and oil reserves. Dominion also
owns and operates the nation's largest underground natural gas storage
system with about 960 billion cubic feet of storage capacity and serves
retail energy customers in 11 states. For more information about Dominion,
visit the company's Web site at http://www.dom.com.
SOURCE Dominion
http://www.dom.com
CONTACT:
Dan Donovan of Dominion, +1-412-237-2900,
daniel.e.donovan@dom.com