Gas News Release

September 29, 2000

Dominion Peoples Ready for Winter with Adequate Gas Supplies; Increasing National Prices Force Increase in Customer’s Bill

PITTSBURGH -- Dominion Peoples customers will see an increase in natural gas costs beginning in October. William McKeown, director of rates for Dominion Peoples, attributed the increase to higher national market prices for natural gas. The gas company will be filing a gas cost recovery (GCR) with the Pennsylvania Public Utility Commission (PUC) to be effective October 1, 2000.

Despite national forecasts of 50 per cent or more increases in natural gas prices, McKeown said Dominion Peoples customers should expect an 18 per cent average increase in their total monthly bill during the upcoming heating season, as compared to the last heating season.

Under the new filing, the GCR, which represents two-thirds of a customer’s bill, will increase from $5.16 per thousand cubic feet (MCF) to $6.20 per MCF. The average residential customer using 111 MCF per year would see an increase of about $13 per month, as compared with a year ago. Dominion Peoples does not earn a profit on the gas costs and is required to purchase the least cost gas available. Actual bills will vary, depending on weather, home energy efficiency, the number of natural gas appliances and household usage patterns.

Company officials attributed the increase in the GCR to sharply rising prices for natural gas on the national market, which have doubled since the beginning of the year. Warmer-than-normal weather the past two winters depressed market prices, prompting many producers to drill fewer new wells. Less exploration and drilling activity eventually reduced the supply of natural gas on the market, while demand remained high, thanks to a strong economy. This supply-demand imbalance resulted in rising prices, which Dominion Peoples and other distribution companies are passing along to consumers.

“Despite significant national market price increases, our company has continued purchasing and injecting natural gas into our storage fields, as scheduled, to ensure that we’ll have sufficient supplies to serve our customers this winter,” noted Edgar M. Roach Jr., Dominion Peoples chief executive officer.

As an alternative, all customers may choose to participate in the Dominion Peoples Energy Choice Program. Dominion Peoples will deliver the natural gas to the customer’s home or business and continue to provide customer service. Customers using this option may shop around and take advantage of competitive natural gas prices. Although customers may choose to remain under Dominion Peoples as their energy provider, the company encourages customers to explore other options under the Energy Choice Program.

Customers can begin to take steps now to ensure that they use energy wisely when colder weather comes. They can schedule an inspection of their home-heating, water-heating and other natural gas equipment to make sure it’s operating efficiently and safely, arrange a home energy audit, consider replacing older natural gas equipment with newer, more efficient units and talk to their local utility about special payment arrangements or energy assistance grants.

Regardless of the size, any change in natural gas prices has an impact on our customers who are on a fixed or low income. Dominion Peoples reminds customers that programs such as the Low Income Heating Assistance Program (LIHEAP), and CRISIS are both available for qualifying customers beginning November 13th and Dollar Energy Fund (DEF) beginning October 2nd. Dominion Peoples’ customer service representatives also stand ready to help customers with special payment arrangements.

Dominion Peoples is a subsidiary of Dominion (NYSE: D), the nation’s largest fully integrated natural gas and electric company, providing energy to more than 4 million customers in five states. More information on Dominion can be found on the Internet at www.dom.com.