Presentation to The Virginia

Economic Developers Association

March 20, 2015

George Faatz, Director, External Affairs

757-616-7507

gfaatz@aglresources.com

Counties/Cities

• Charles City

• Chesapeake

• Essex

• Gloucester

• Hampton

• Hanover

• James City

• King and

Queen

• King William

• Mathews

• Middlesex

• New Kent

• Newport News

• Norfolk

• Poquoson

• Suffolk

• Virginia Beach

• West Point

• Williamsburg

• York

Virginia Natural Gas Service Territory

Serves• Over 284,000 residential, commercial

and industrial customers

2GREEN = VNG territory served

Lanexa to West Point Pipeline Project

2012 NEED Legislation – HB 559 & SB 511

Natural Gas Infrastructure Expansion for Economic

Development Legislation (NEED)

• Provides a new tool to more proactively expand natural gas infrastructure to

support economic development

• Allows natural gas service to be extended if certain requirements are

met:

1. Located where adequate infrastructure is not available

2. Must provide future economic development opportunities

3. Developer/customer/locality must provide a binding commitment

for at least 5 years and 50% of the pipe’s capacity

4. After good faith negotiations, and developer/occupant cannot pay

CIAC

2015 MAIN Legislation – HB 1475 & SB 1163

Making Access to natural gas Infrastructure Now (MAIN)

• Allows Virginia’s natural gas utilities to implement programs to extend new

infrastructure into unserved areas of the utility’s service territory.

• Benefits of the program include:

• More Virginia consumers will have the opportunity to benefit from

natural gas and lower their energy costs.

• Existing customers will not subsidize expansion.

• When the cost of the expansion is recovered, rider is removed.

• Increased economic development opportunities

• SCC must review and approve MAIN program before they are

implemented.

Abundant. American. Affordable.

Reliability & Price Stability

Transco (Transcontinental)

165

185

195

ACP (Atlantic Coast Pipeline)

TCO (Columbia Gas)

DTI (Dominion Transmission Inc)

VNG (Virginia Natural Gas)