Dominion Green Power Program

1. Reduced fuel factor. VEPGA new fuel factor, effective for January bills, will be 1.944 cents/kWh, as compared to the current interim fuel factor implemented in November 2009 of 2.178 cents/kWh. This represents a 0.234 cents/kWh reduction. The SCC approved a second interim fuel factor for jurisdictional customers on Wednesday, 12/16/09, and VEPGA asked Virginia Power if, consistent with VEPGA's contract, Virginia Power would also reduce VEPGA's fuel factor. Virginia Power informed VEPGA this morning of the amount of VEPGA's new fuel factor.



2. Tariff for purchasing renewable energy credits (RECs). VEPGA has reached agreement with Virginia Power on Rider G-CM, which gives VEPGA members the option of purchasing RECs as part of their electricity purchases. Accessible through this notice are (1) a description of the REC Green Power Program, (2) a VEPGA Member Enrollment Form, and (3) the REC tariff, Rider G-CM. Rider G-CM will be effective January 1st. The initial REC purchase price, which will be effective until 7/1/2010, is 0.5 cents/kWh, which compares favorably to the currently effective REC purchase price of 1.5 cents/kWh under Rider G, the REC tariff for jurisdictional customers. Rider G-CM is meant to provide more affordable RECs that still satisfy the requirements of nationally recognized green initiatives. VEPGA is currently in negotiations with Virginia Power for a second REC tariff that would satisfy more stringent sourcing requirements to be eligible for SIP compliance under the Clean Air Act: the pricing for this second tariff is expected to be more costly.