Dominion News Releases

March 28, 2000

NYPA Rejects Dominion Bid for Two Nuclear Stations

RICHMOND, Va. -- Dominion (NYSE:D) said today that the company was not selected to own and operate two nuclear stations being sold by the New York Power Authority (NYPA).

A $946 million cash offer by Dominion, the nation’s top nuclear operator, to acquire 100-percent ownership of NYPA’s Indian Point 3 and James A. FitzPatrick nuclear stations was not accepted by NYPA trustees during a meeting today in New York.

Thos. E. Capps, president and chief executive officer, said:

"We are disappointed that NYPA presented us with a complex tax issue at the 11^th hour of its meeting on March 20 and gave us only eight days to resolve it. Given more time, we could have resolved the issue to the satisfaction of all parties.

"It’s a shame that NYPA was unwilling to wait for our company to resolve the tax issue and selected a competing bid that offered less cash. The authority is depriving New York of $35 million in additional cash value.

"We will continue to work to expand our presence in New York."

Capps also said that Dominion will continue to seek ownership of strategic generating assets in the Midwest, Northeast and Mid-Atlantic regions of the country as long as they are accretive to earnings.