2017 Summary Annual Report

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9:38 a.m. 7:00 p.m. 3:15 a.m. We deliver clean, safe, affordable and sustainable energy. On demand. All day. Every day.

When a Dominion Energy customer flips the light switch, lights the burner, or cranks up the furnace, our energy will be there like a lifelong friend – always dependable to make life easier.

Contents Headquartered in Richmond, Va., Dominion Energy Condition and Results of Operations, and Item 7A. (NYSE: D) is one of the nation’s largest producers and Quantitative and Qualitative Disclosures About Market 1 Company Profile transporters of energy, with a portfolio of approximately Risk in our Annual Report on Form 10-K for the year 6 CEO Letter 26,000 megawatts of electric generation; 66,600 miles of ended Dec. 31, 2017. transmission, gathering, storage and 15 Consolidated Financial Highlights distribution pipelines; and 64,500 miles of electric Shareholders receiving this Summary Annual Report in 16 Dominion Energy transmission and distribution lines. The company connection with our 2018 Annual Meeting of Performance Charts operates one of the largest natural gas storage systems Shareholders should read it together with our Annual in the U.S. with approximately 1 trillion cubic feet Report on Form 10-K for the year ended Dec. 31, 2017. 18 Our Businesses of capacity, and serves nearly 6 million utility and This Summary Annual Report includes only financial and 20 Operating and retail energy accounts. For more information about operating highlights and should not be considered a Service Areas Dominion Energy, visit the company’s website substitute for our full financial statements, inclusive of at www.dominionenergy.com.* footnotes, and Management’s Discussion and Analysis 22 GAAP Reconciliations of Financial Condition and Results of Operations, 23 Directors and Offcers *All numbers are as of Feb. 27, 2018. included in our 2017 Annual Report on Form 10-K. For such shareholders, a copy of our 2017 Annual Report on 24 Shareholder Information Form 10-K, including the full financial statements, Our statements about the future are subject to various accompanies this Summary Annual Report and may also risks and uncertainties. For factors that could cause be obtained free of charge through our website at www. actual results to differ from expected results, see Item dominionenergy.com/investors or by writing to our 1A. Risk Factors, Forward-Looking Statements in Item 7. Corporate Secretary at P.O. Box 26532, Richmond, Management’s Discussion and Analysis of Financial 23261-6532. Grid Modernization We’re delivering Smarter on our promise. Solutions

Our customers want cleaner energy Over the long-term, Dominion Energy plans to install modern solutions and more information about grid infrastructure to reduce the number and length of power their energy usage. Your company is outages at its electric utility in Virginia and . This would include spending on items such as smart meters and investing billions of dollars in clean, equipment that reports outages as they occur, improves power innovative infrastructure to keep quality for industrial and large commercial customers, and the lights on and the gas flowing for integrates additional renewable power generation. decades to come.

Cove Point

Clean Until the electric grid can be fully modernized to handle fluctuating voltages from intermittent Natural Gas generating sources such as solar and wind, electric utilities will continue to rely more heavily on lower-carbon-emitting sources such as natural gas. Beginning in March 2018, Cove Point, a facility in Maryland, is expected to provide clean-burning natural gas to utility customers in India and Japan. $40 MILLION in additional annual revenue for Calvert County, Md., from Cove Point

2 Dominion Energy, Inc. 2017 Clean Energy

Our long-term plan to keep our carbon emissions low relies on carbon-free nuclear power. Dominion Energy owns and operates six reactors in Connecticut and Virginia, including two at Millstone (pictured above). Your company is working with federal regulators and others to prepare for license extensions for our four nuclear units in Virginia, which, should we formally seek such extensions, would allow those units to operate safely, efficiently and reliably until 2050 and beyond.

Buckingham $900 MILLION in company solar Power From investments in 2017 the Sun In 2017, the company brought online 466 megawatts of solar generating capacity, including the 20-megawatt Amazon Solar Farm- Buckingham (pictured at left) – a total investment of more than $900 million. Dominion Energy is now the nation’s sixth-largest utility owner- operator of solar power. Over the next decade, you can expect us to continue harnessing the power of the sun to generate for our customers. In fact, your company could bring into service enough solar energy to serve hundreds of thousands of homes and businesses over the next 15 years.

Dominion Energy, Inc. 2017 3 We are building and delivering on decades-long sustainable growth.

As we begin construction on the $6-$6.5 billion Atlantic Coast Pipeline, conclude commissioning of the $4.1 billion Cove Point liquefaction project, and continue construction on the $1.3 billion Greensville County Power Station, Dominion Energy is shifting its growth priorities from big projects to big programs – such as strategic undergrounding and solar investments, and pipeline and wire replacement and modernization, among other things.

Remington Solar The 20-megawatt facility (pictured, in background), which entered service in 2017, is an innovative partnership among your company, the Commonwealth of Virginia and Microsoft.

4 Dominion Energy, Inc. 2017 $14-$15.5B Power Generation $4.4 Infrastructure $3.7–$4.2 BILLION Investments BILLION in growth capital expenditures in 2017 Cumulative Actual and Planned Growth Capital Power Delivery** Expenditures 2017–2020* $5.0–$5.5 * All planned expenditures are preliminary and may be subject BILLION to regulatory and/or Board of Directors approvals. ** Excludes any planned capital Gas Infrastructure*** expenditures for Power Delivery’s grid modernization program. *** Includes Dominion Energy’s $5.3–$5.8 portion of the projected cost of the Atlantic Coast Pipeline but BILLION excludes joint venture fnancing.

Progress on Our Programs and Projects In the next decade, your company’s capital investment plan will focus on programmatic growth, featuring diverse, clean energy businesses that we expect will provide reliable service and stable returns.

Power Generation Power Delivery Gas Infrastructure

Nuclear Life Extension Electric Transmission Distribution Pipeline Growth & Rebuild Replacement Hydroelectric Pumped Storage Substation Reliability Western Gas Reliability & Coastal Offshore Wind (phase 1) Expansion Critical Asset Security Solar Transmission Pipeline Strategic Undergrounding Expansions Dispatchable Gas Generation Grid Modernization Dominion Energy Transmission Infrastructure Modernization

Dominion Energy, Inc. 2017 5 The state-of-the-art Systems Operations Center in the Richmond, Va., suburbs, controls the company’s electric transmission system.

Thomas F. Farrell, II Chairman, President and CEO

6 Dominion Energy, Inc. 2017 Dear Investors:

On September 12, Aubrey Ellis and Alex Stephens were among 750 Dominion Energy employees and contractors who began a 12-day trip to Florida from Virginia. Aubrey, a lead lineman with 39 years of experience, and Alex, a lineman trainee with two and a half years at Dominion Energy under his belt, did not leave Dominion Energy Virginia’s Central Region operations center for sun and sand. Rather, they went to lend a helping hand.

A few days earlier, Hurricane Irma had Changing customer capacity reduction of 56 percent in just roared its way up the Florida peninsula, expectations 11 years. now accounts for less leaving devastation in its wake – and than 20 percent of Dominion Energy’s millions without power. electric generating capacity and less than Aubrey, Alex, their fellow employee Today, our customers want safe, effcient 15 percent of its electric production. and contract cohort, 34 bucket trucks and and reliable power and natural gas, and Meanwhile, we have brought online eight auger trucks trekked from Florida’s more than ever they want it cleaner and 3,300 megawatts of effcient, cleaner- east coast to its west coast, aiding a more responsibly sourced. burning gas-fred power stations, more massive power restoration effort. Take, for instance, coal. A decade than 1,200 megawatts of company-owned Their 12-to-14-hour-long work ago when I became CEO, natural solar energy and almost 300 megawatts days did not go unnoticed. A Fort gas prices were high, and coal was of wind – with more on the way. Lauderdale customer named Michelle king. Coal represented a third of our And our fleet of safe, reliable and called the Dominion Energy customer electric generating capacity and nearly carbon-free nuclear power plants that service line and praised our teams half of our electric production. totals 5,300 megawatts – producing for “doing a fantastic job.” In the decade since, technology has nearly 40 percent of the electricity Aubrey Ellis and Alex Stephens unlocked new natural gas supplies, gas generated at our power stations – embody the values defning Dominion prices have dropped precipitously and validates the vision of my predecessors. Energy: responsible, caring, committed to environmental regulations have targeted These decisions have made service and safety-conscious, above all. coal. We have sold, shut down, converted good business sense and have These fundamentals position or terminated contracts for nearly 4,300 helped in meeting the expectations Dominion Energy as one of Fortune’s megawatts of coal-fred generation since of our stakeholders. “most admired” energy companies. 2007, and plan to close or place into We are working to meet customer These will never change, not even in reserve another 720 megawatts over the demand for new technologies and fuel our fast-changing energy landscape. next year. That would result in a fleet sources, and more responsive service.

Dominion Energy, Inc. 2017 7 Hurricane Irma Relief

We delivered when it mattered most.

In mid-September 2017, Dominion Energy employees, contractors and equipment were sent to Florida to help restore electric power to 7 million customers affected by Hurricane Irma. These men and women sensed a civic duty to help their fellow utility workers and those in need.

MORE THAN 750 Dominion Energy employees and contractors were mobilized to respond to one of the largest electric industry restoration efforts in United States history.

Reliability Improvements Excluding Major Events

12 11 11 1 150 1 17 10 120 12 12 Dominion Energy continues 111 11 to focus on providing reliable 100 service to our customers. Over the past three years, customers have experienced

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8 Dominion Energy, Inc. 2017 Dominion Energy Annual DM LP Distributions Per Unit Midstream (Figures are fourth-quarter annualized; 2018-2020 results are estimated.)

Est. Our Shareholders Share in Growth Est. % As Dominion Energy Midstream grows and expands Est. – organically from current operations and through $1.27 22 acquisitions of Dominion Energy and third-party assets $1.04 ANNUAL – the partnership is expected to generate several billions $0.85 DISTRIBUTION $0.70 of dollars in cash, which can be used by your company GROWTH FORECAST to reduce debt, thereby strengthening our balance sheet; THROUGH 2020 support best-in-class dividend growth, subject to quarterly declaration and determination by the Board of Directors; 2014A 2015A 2016A 2017A 2018E 2019E 2020E and re-invest in new capital project opportunities.

These challenges – along with managing operationally resilient. As America’s new cost, service and effciency trade-offs – energy world evolves, we must seize require your company to grow. Increasing opportunities to survive and thrive. scale is a strategic imperative of our Like Dominion Energy, SCANA Board of Directors. is culturally committed to providing customers with reliable and clean energy, operating effciently, and giving back to Combination with SCANA the communities where they do business. In addition, the utilities owned by This is one reason we announced on SCANA – Electric & Gas $12.2 Jan. 3, 2018, our plan to combine with Company (SCE&G) and Public Service SCANA Corporation, a company Company of North Carolina, Inc. (PSNC BILLION headquartered in Cayce, S.C., serving Energy) – have a combined customer in SCE&G electric about 1.6 million gas and electric utility growth rate of 2 percent, nearly double customer benefits customers in the Carolinas. You can learn what we are seeing in Virginia. associated with our more about the company by visiting Expansion in the Carolinas is a natural proposed SCANA www..com. ft for our electric and gas operations – as combination In this stock-for-stock agreement, Dominion Energy owns and operates SCANA shareholders would receive several solar farms in the two states 0.6690 shares of Dominion Energy and an electric utility in North Carolina, common stock per share of SCANA and our Dominion Energy Midstream common stock. Including SCANA’s Partners, LP, subsidiary owns, and outstanding debt, the total value Dominion Energy operates, a 1,500-mile of the transaction is expected Federal Energy Regulatory Commission to be more than $14 billion. (FERC)-regulated pipeline system Several questions have been raised serving South Carolina and Georgia. regarding the combination, including: The Dominion Energy-SCANA (1) If Dominion Energy’s organic merger agreement is expected to beneft growth could result in a compound the state of South Carolina; SCANA’s annual earnings growth rate (CAGR) of employees, customers and shareholders; 6-8 percent through 2020, then why is and Dominion Energy’s stakeholders. there a need to pursue a merger? And Importantly, the merger offers an (2) In light of SCANA’s abandoned economic resolution for V.C. Summer nuclear development, why pay a Units 2 and 3, the construction of which premium to SCANA’s shareholders has been terminated by SCANA and while also absorbing billions of dollars its partner, Santee Cooper. Dominion in costs related to that abandonment? Energy’s offer introduces certainty to Both are fair questions. the debate in South Carolina regarding Consolidation is the imperative of all this decision and the rates customers industries in a growing global economy. have already paid or could continue To succeed, enterprises, including to pay for these abandoned nuclear those in the energy sector, must be units. Under the merger agreement, highly effcient and economically and the combined company is expected to

Dominion Energy, Inc. 2017 9 give SCE&G electric customers $12.2 Sector Index (UTY, 12.8 percent), and billion in benefts, including a $1.3 those of the S&P 500 (21.8 percent). billion upfront, one-time cash payment. From past letters, you know we The combined company also would be focus on long-term growth. Had you prepared fnancially and operationally to invested in our company around Jan. address South Carolina’s energy future. 1, 2008, just months after we sold When completed, the transaction our non-Appalachian oil and gas would increase the combined businesses and embarked on our $30 company’s earnings-per-share billion regulated utility and pipeline CAGR to 8 percent or more. businesses growth investment plan Subject to receiving all necessary – your return would have been 155 approvals – from SCANA shareholders, percent at the end of 2017. For this same federal agencies and state utility period, the UTY’s return was 78 percent commissions – we expect to formally and the S&P 500’s was 126 percent. combine with SCANA in 2018. Record year in safety 2017 financial review & operations Earnings under Generally Accepted Accounting Principles (GAAP) were $4.72 I am very proud of and grateful to my per share in 2017, up from $3.44 per share colleagues for making safety our in 2016. top priority. As I wrote you last year, we We had a strong year in 2017. For the expected operating earnings per second consecutive year, our company share to decline from 2016’s $3.80 per achieved new records in the rates of Sarah Perkinson (left) and share* because of (1) lower anticipated OSHA recordable injuries and injuries Dan Beauchamp, at the revenues at our Millstone Power resulting in lost days or restricted duty. 20-megawatt Amazon Solar Station in Connecticut resulting from In more than 32 million Dominion Farm-Buckingham facility that two nuclear refueling outages and Energy employee hours, 96 workplace entered service in late 2017. It lower power prices in New England injuries were recorded – a rate of 0.60, was part of Dominion Energy’s and (2) a roll-off of import contracts better than the previous record of $900 million investment in solar energy in 2017. Buckingham at Cove Point, our liquefed natural 0.66 set in 2016. Forty-seven of those County, Va., is also home to gas facility on the . injuries caused lost time or restricted Bear Garden, a company- Your company reported 2017 operating duties – a rate of 0.29, beating the owned clean, efficient, gas- earnings of $3.60 per share, in the middle record of 0.30, also set in 2016. fired power station that has of our $3.40-$3.90-per-share guidance Based on industry benchmarks, our been operating since 2011. range, with mild weather accounting for company’s carbon intensity rate – the a 10-cents-per-share hit.* The difference amount of emitted per between reported earnings per share unit of electricity produced – ranks and operating earnings per share is among the best quartile. Between primarily attributable to an $851 million 2000 and 2016, our carbon intensity gain from federal tax reform legislation dropped 43 percent. Preliminary data passed by Congress in late 2017. indicate continued decline, as electric Your company also paid $3.035 production from coal fell and that of per share in dividends in 2017, and natural gas and solar rose. We will announced in September 2017 – prior post our fnal 2017 carbon emissions to the SCANA announcement – that results on our website by June 1, 2018. it anticipates increasing the dividend This long-term trend is based in large 10 percent per year through 2020, part on our decisions over the past 10 subject to quarterly declaration and years to replace 4,300 megawatts of determination by the company’s Board. coal-fred generation with more than Our one-year total return of 9.9 4,800 megawatts of cleaner natural percent – share appreciation plus gas, solar and wind generating capacity the quarterly dividend – trailed the and our ability to effciently operate returns of the Philadelphia Utility a large, carbon-free nuclear fleet.

* Based on non-GAAP Financial Measures. Please see page 22 for GAAP Reconciliations.

10 Dominion Energy, Inc. 2017 Our six carbon-free nuclear reactors dd The $1.3 billion, 1,588-megawatt in Connecticut and Virginia turned in gas-fred Greensville County Power their best operating year on record. Station in Southside Virginia, which is The fleet’s capacity factor – including 73 percent complete and expected to refueling outages and unplanned enter service by the end of 2018, outages – was 95.1 percent, an all- producing cleaner energy for our time high. We also posted an all-time utility customers in Virginia and low of 5.4 unplanned outage days. North Carolina. The good news in 2017 spread to Millstone, which houses two of dd The $4.1 billion Cove Point our nuclear reactors. Lawmakers in liquefaction project in Lusby, Md., Connecticut passed, and the governor which is expected to begin signed, legislation allowing the largest commercial operations in March, carbon-free power source in New providing clean natural gas to Japan England to participate in clean-energy and India and supporting goals to auctions. Later this year, we expect to reduce these nations’ dependence on bid a portion of Millstone’s capacity coal and oil. into such an auction, which would enable a more stable revenue source dd The $6-$6.5 billion Atlantic Coast for the station and retain about 1,500 Pipeline (ACP) and associated high-paying jobs in the region. $550-$600 million Supply Header project in North Carolina, Virginia and – which have received a Growth plan progress FERC permit and a Limited Notice to Proceed. We have begun tree-felling Last year, we also made signifcant activities in preparation for formal progress on our growth investments construction that would begin under our Board’s long-term strategic following receipt of fnal state plan. We advanced three of our large environmental permits and a FERC and environmentally benefcial Notice to Proceed. growth projects:

Your company has ramped up We are focused on adding fleet of carbon-free nuclear Solar its solar efforts – increasing its renewables to help meet reactors that have a smaller Energy company-owned and partnership our company-wide target of impact on the natural world. portfolio by 3,900 percent, from reducing carbon intensity Our plans include more 41 megawatts, in 2013 to 1,641 by 50 percent by 2030. solar energy, and your company megawatts in just four years – Dominion Energy plans could add thousands of and spending about $3.6 billion. to retain its diverse mix of megawatts of solar generating We are quite proud of power generating facilities, capacity to the grid serving our clean energy progress which helps keep electric Virginia and northeastern and commitment – and rates stable for customers. North Carolina over the next 15 of the additional 500-plus We aim to meet our mandate years – so long as customers, megawatts we deliver to of affordability and reliability investors, policymakers our utility customers under by adding cleaner generation and regulators continue to long-term power contracts. and maintaining our efficient demand cleaner energy.

Dominion Energy, Inc. 2017 11 Our Communities

Although our four core values do not specifically mention “charity,” “compassion” and “loving-kindness,” they are embedded in our company and our people, and are a part of our commitment to service, our ethos of responsibility and culture of caring. In 2017, our employees logged nearly 125,000 volunteer hours to help military veterans, improve access to parks, stuff backpacks for underprivileged children, and feed the needy at soup kitchens, among other things. The company and its philanthropic arm, the Dominion Energy Charitable Foundation, donated $20 million to more than 2,000 organizations promoting and supporting human needs, health, community development, education, the environment and the arts. Your company also contributed $8.8 million to energy assistance programs, helping more than 25,000 customers in six states pay their heating and cooling bills.

The ACP is designed to transport 120,000 homes and businesses; (2) place natural gas to underserved communities into service four pipeline expansion in North Carolina and Virginia. The need projects that increase access to clean- for this project was reinforced early in burning natural gas for other utilities and 2018 when extreme cold weather caused electric generators; (3) replace 290 miles natural gas spot prices in the region of aging distribution pipelines in , to surge 5,700 percent. Gas utilities and West Virginia with coated steel in this region were forced to interrupt or plastic pipes; (4) bring online new and service to several major industrial rebuilt substations and transmission customers for several days at a time. lines; and (5) convert nearly 300 miles of Once completed, the ACP will connect above-ground distribution lines to these vital customers and consumers to a underground; among others. steady supply of natural gas – stabilizing These programs – solar buildout, gas prices, keeping homes warm in gas pipeline expansions, gas pipeline the winter, and fueling the economy. replacements, electric transmission modernization and electric distribution undergrounding – will continue in Outlook for infrastructure 2018 and beyond. We expect them investing to reduce both the carbon intensity of our power generation fleet and methane emissions from our gas In 2017, Dominion Energy invested about infrastructure. They will improve the $2.6 billion to (1) add 466 megawatts of reliability of our delivery systems. solar energy, enough to power nearly With these investments – plus cash

12 Dominion Energy, Inc. 2017 from Dominion Energy Midstream (DM) on continued operations of our from an expected partial sale of Cove nuclear fleet. The company also Point to DM – your company expects an plans to reduce methane emissions operating earnings-per-share increase of through improvements to our gas about 10 percent in 2018, with a guidance infrastructure. We will participate range of $3.80 to $4.25 per share.* in CDP Worldwide’s air reporting of greenhouse gases in 2018.

Changing expectations: dd Modernize the grid by including Call to action devices that recognize power outages before our customers call and improve the two-way communications Our nation’s energy landscape is between electrical equipment and our changing, and so are the expectations of control rooms. American consumers and investors. Consumers like choices. They dd Create a more diverse, inclusive have come to expect information workforce that better reflects the in real-time, from smart phones to communities we serve and flls the $3.7-$4.2 smart meters and even refrigerators expected vacancies that will be left BILLION that tell them how much energy when one-third of our employees they are using at any given time. who are 55 or older retire. Our Troops in annual growth capital Similarly, investors are changing. to Energy Jobs program is part of investment in clean Increasingly, they want to put their hard- this effort. In 2017, we hired 187 energy and reliability earned money in companies that value military veterans, about one-ffth of (2021 and beyond) environmental, social and governance all new hires. We aim to continue (ESG) activities. In fact, ESG investing this trend. In 2018, we also plan to has become a high-growth sector. increase internship opportunities ESG investors consider workforce for highly qualifed female and dynamics such as work-life balance minority candidates. and substantive diversity goals. They want companies to protect ecosystems dd Meet new customer expectations and reduce harmful impacts on the by increasing our focus on testing environment. Returns and earnings are no technological innovations and longer suffcient. Neither should they be. disruptions and partnering with startups to invent new processes and products. Our chief innovation offcer New business is leading this effort. opportunities & goals dd Seek non-traditional, energy-related business opportunities behind the % These new expectations create business meter that can (a) improve our 50 opportunities. And we are prepared to knowledge of our customers’ energy CARBON INTENSITY seize them. usage and (b) earn returns for our REDUCTION TARGET Here is what we plan to do: owners. And (2000-2030) dd Allocate $3.5 billion per year through dd Continue investing in our 2020 in growth capital – expanding to communities, allocating $3.7-$4.2 billion annually beginning in approximately $20 million per year to 2021 – focused on clean energy and support community needs and dependability of our delivery systems. contributing at least 100,000 volunteer hours from Dominion Energy dd Create, for the frst time, a targeted employees, much of it coming from decrease in carbon dioxide the eight hours of paid volunteer time emissions intensity of our electric offered to each company employee. generating stations of 50 percent between 2000 and 2030, based

* See page 22 for Reconciliation of 2018 Operating Earnings Guidance.

Dominion Energy, Inc. 2017 13 Investing in our generation, Virginia. It would serve as a large battery delivery & gas businesses – running water through up to 1,000 megawatts of turbines when the grid needs more electricity at times when In 2018 and beyond, you can expect our is unavailable. operating segments – Power Generation, We also anticipate investing Power Delivery and Gas Infrastructure $300 million on two 6-megawatt – to invest in innovations to maintain and offshore wind turbines, expected to expand our already best-in-class assets. be operational by the end of 2020. During the next 15 years, we expect Power Generation to add thousands of megawatts of Dominion Energy plans to seek additional solar energy and gas-fred generation 20-year operating license renewals from capable of ramping up and down quickly the Nuclear Regulatory Commission for to ensure a reliable grid. This includes our four nuclear reactors in Virginia, 300 megawatts of renewable energy which are integral to meeting the that would power a large Facebook company’s carbon intensity target. data center under development on To ensure safe operations over the outskirts of Richmond. These a longer period of time, we are clean energy investments could total identifying equipment and hardware more than $500 million per year. needs, considering instrumentation Combined with actions already and digital upgrades, and evaluating taken and the company’s continued “At Dominion Energy, we which plant equipment must be operation of our six nuclear reactors try to do right by our replaced. The company could spend – these initiatives are expected to customers and do good as much as $4 billion over the next reduce our carbon intensity. in our communities.” decade on this program, which has bipartisan support in Virginia. Power Delivery License renewals would enable To incorporate new generating – Johnny Walker these carbon-free energy sources to technologies, we need the right Supervisor, run safely and effciently for another infrastructure in place. Electric Distribution generation, long enough to fnd new, Because our electric grid will continue Construction Projects non-emitting replacement technologies, to rely on high-voltage and lower-voltage potentially including new nuclear. power lines, we expect to invest about Virginia Beach, Va. Energy from offshore wind, $800 million annually for the foreseeable hydroelectric pumped storage and future to build new transmission solar will play an increasing role infrastructure, replace more than 2,000 in creating a cleaner-burning fleet. miles of high-voltage transmission Natural gas will continue to generate lines, and upgrade physical security at electricity as a baseload source and substations. The rebuilds will increase also to fuel peaking plants serving as the capacity on our transmission lines, backup power to intermittent sources, which in part enhances our ability to thereby maintaining grid reliability. transport more renewable energy. Legislation has been proposed in the We plan to install new equipment 2018 Virginia General Assembly session that will automatically report to transform and secure the electric grid the location of outages as they in Virginia in bold new ways. It would occur and other equipment that support investment in innovative reduces voltage fluctuations. infrastructure that reduces power Dominion Energy also has begun outages and leads to faster restoration a decade-long investment to place times. It would increase contributions underground approximately 4,000 from wind, solar, battery storage and miles of vulnerable distribution energy effciency. tap lines and transformers at our In fact, we are exploring an investment electric utility in Virginia. of up to $2 billion to build a hydroelectric New equipment and underground pumped-storage facility in Southwest lines are expected to reduce the number

14 Dominion Energy, Inc. 2017 Consolidated Financial Highlights

Year ended December 31, 2017 2016 % Change

FINANCIAL RESULTS (millions)

Operating revenue $ 12,586 $ 11,737 7.2% Operating expenses 8,456 8,110 4.3% Amounts attributable to Dominion Energy: Reported earnings 2,999 2,123 41.3% Operating earnings (non-GAAP)* 2,289 2,347 -2.5%

DATA PER COMMON SHARE

Reported earnings $ 4.72 $ 3.44 37.2% Operating earnings (non-GAAP)* 3.60 3.80 -5.3% Dividends paid 3.035 2.80 8.4% Market value (intraday high) 85.30 78.97 8.0% Market value (intraday low) 70.87 66.25 7.0% Market value (year-end) 81.06 76.59 5.8% Book value (year-end) 26.59 23.27 14.3% Market to book value (year-end) 3.05 3.29 -7.3%

FINANCIAL POSITION (millions)

Total assets $ 76,585 $ 71,610 6.9% Total debt 37,324 35,095 6.4% Common shareholders’ equity 17,142 14,605 17.4% Equity market capitalization 52,249 48,081 8.7%

CASH FLOWS (millions)

Net cash provided by operating activities $ 4,549 $ 4,127 Net cash used in investing activities (5,993) (10,703) Net cash provided by fnancing activities 1,303 6,230

OTHER STATISTICS (shares in millions)

Common shares outstanding – average, diluted 636.0 617.1 Common shares outstanding – year-end 644.6 627.8 Number of full-time employees 16,200 16,200

* Based on non-GAAP Financial Measures. See page 22 for GAAP Reconciliations.

.0 .0 . . .2 1.0 . 7.0 7. .0 2.0 . 7. 2. 2.0

13 14 15 16 17 13 14 15 16 17 14 15 16 17 18

Operating Earnings (non-GAAP)* Year-End Stock Price Targeted Dividend Increase* Dollars per share Dollars per share Dollars per share

*Based on non-GAAP Financial Measures. Source: Bloomberg *Dividends are subject to quarterly declaration See page 22 for GAAP Reconciliations. and determination by the Board of Directors.

Dominion Energy, Inc. 2017 15 Dominion Energy Performance Charts

Total Return Comparison Infrastructure Investment Dominion Energy vs. Indices 1-, 3- and 5-Year Total Returns Cumulative Actual and Planned Growth Capital Expenditures* Percent /Through Dec. 31, 2017 Dollars in Billions Dominion Energy S&P 500 Index Philadelphia Utility Index S&P 500 Utilities Index 1.01.

11.012.0

100 107.2 77. .0.2 0 7.

0 1.0 .

0 .22 2.11 2.00 21.0

20 17. 12.77 12.0 .0 0 1 YEAR 3 YEARS 5 YEARS 17 17-18 17-19 17-20 Source: Bloomberg * All planned expenditures are preliminary and may be subject to regulatory and/or Board of Directors approvals.

Dominion Energy Carbon Intensity Reductions Improving Air Emissions - Dominion Energy Carbon Intensity Reductions — 2000–16 Emissions Intensity Reductions (lbs/MWh) Compared to Increases in Generation (MWh) 43% Reduction in Carbon Intensity

52% Increase in Generation (MWh) SO2 Hg NOx All Generation Net MWh

1,00 120 0 120

1,00 +52% 110 20 110 1,200

1,100 100 0 100 1,000

00 0 0 0 e ercen ecion iion o e 00 iion o e 0 0 0 700 -93% -97% 00 70 100 -98% 70

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Through 2016, Dominion Energy's power generation fleet has reduced carbon emissions rate (in pounds per net MWh) by 43 percent since 2000, based on ownership, which includes assets acquired and divested during this time period.

Dominion Energy Methane Reductions Reported to EPA from Natural Gas Businesses Natural Gas Businesses include: Dominion Energy Transmission, Inc.; Dominion Gathering & Processing; Dominion Energy Ohio; Dominion Energy Questar Pipeline; Dominion Energy Utah; Dominion Energy Wexpro; Dominion Energy West Virginia; Dominion Energy Cove Point; and Dominion Energy Carolina Gas Transmission.

0

0

70

0 0 * *2016 results, shown in light blue, 0 included new reporting requirements 0 for Dominion Energy Transmission, Inc. (pipeline blowdowns); Dominion on eric on 20 Gathering & Processing (gathering 10 and boosting); and Dominion Energy 0 Ohio (gathering and boosting). 11 12 13 14 15 16

16 Dominion Energy, Inc. 2017 and length of power outages on our other parts of our country are immense. system. We anticipate that they will The people of Dominion Energy are improve power quality for industrial proud to have contributed their skills, and large commercial customers and know-how and courage to improve more reliably meet the on-demand the lives of and bring hope to Puerto energy and information needs of Ricans. David Perez, an electrical all our electric utility customers. engineer in our Power Generation Group and a graduate of the University Gas Infrastructure of Puerto Rico at Mayaguez, was Dominion Energy plans to spend between among those volunteers. Many of his $325 million and $350 million annually to family members on the island still are replace aging pipeline infrastructure at without power. He said he was “more our three gas utilities. The spending than proud, more than glad” to help. would increase safety and reliability, Alexandra “Alex” Garcia took reduce methane leaks, and expand our temporary leave from her job as an distribution pipeline systems. engineer at North Anna and spent six In addition to pipeline replacement weeks as a disaster-relief volunteer programs, in Utah we have several in her native Puerto Rico. During her expansion projects planned for our time there, she also helped install utility boasting at least 2 percent annual solar panels shipped by Dominion customer growth. We expect to invest Energy, which she facilitated. about $300 million over the next few This is what Dominion Energy years to both increase high-demand employees – like Aubrey Ellis, Alex “The response from capabilities and reach underserved Stephens, David Perez and Alex Dominion Energy in communities in southern Utah. Garcia – do every day. I am inspired Puerto Rico has been We have also identifed at least by their example, expertise and incredible. The company 950 million cubic feet per day of new compassion for their fellow man. did more than I ever capacity needs from smaller pipeline We are a great company – expected. It’s humbling. expansion projects across the Dominion because they make it great. It makes me feel like Energy footprint, totaling about $775 Our changing industry brings I’m where I’m supposed million. We expect to identify more opportunities. I have shared how we projects as increasing commodity and plan to seize them in 2018 and beyond. to be, and I’m proud to maintenance costs and environmental Know this: Our commitments say I work here.” rules force shutdowns of costlier, less- to service, to doing what is right, effcient, high carbon-emitting power and to getting a job done the best – Alexandra “Alex” Garcia stations, particularly in the Southeast. way we know how – all underscore our purpose and mission. They will Engineer II, Auxiliary always guide Dominion Energy. Systems/Programs Committed to serve Thank you for your North Anna Power Station investment in our company. I am ending my letter to you the way I began it. Sincerely, With service. For more than 30 days earlier this year, 71 Dominion Energy men and women volunteered to go to Puerto Rico as part of a combined U.S. utility industry effort to help restore the power system destroyed by Hurricane Maria. The needs Thomas F. Farrell, II of vulnerable people on the island and in Chairman, President and CEO

Dominion Energy, Inc. 2017 17 Our Businesses

Dominion Energy operates in 19 states – from Connecticut to Power California – offering clean, safe, reliable and affordable energy Generation to all of our customers.

Operates the company’s diverse-fuel fleet of power stations serving electric % utility customers in Virginia and North Carolina and supplying electric power to 45 wholesale markets and to other utilities under long-term power purchase OF 2017 PRIMARY agreements. These power facilities OPERATING account for 26,000 megawatts of SEGMENT electric generating capacity. EARNINGS

Dominion Energy Safety Metrics* Principal Business Lines dd Utility power production 17 0.2 0.0 dd Merchant power production

0.0 16 0.

0. 2017 Highlights 15 0.7 dd Invested more than $900 million in solar energy,

0. bringing online more than 460 megawatts of solar 14 0.7 generating capacity in four states.

0. dd Developed a new renewable energy schedule to 13 0. support a $1 billion investment by Facebook in Virginia. 12 0. 0.2 dd Established a new nuclear fleet net capacity factor record of 95.1 percent, topping 92 percent for the 0.2 11 0. sixth consecutive year.

0. 10 1.0 2018 Expectations 0. 09 1.2 dd Maintain a superior safety record.

0. dd Complete the $1.3 billion, 1,588-megawatt Greensville 08 1.2 County Power Station in late 2018. dd Continue investing in clean energy, including solar, Lost Time/Restricted Duty Rates OSHA Recordable Rates offshore wind, and, potentially, a new hydroelectric pumped-storage power station. * Recast to reflect the inclusion of certain incidents of hearing loss that may be work-related and therefore recordable under OSHA regulations. dd Participate in a clean-energy auction in Connecticut

2017 results include combined results for Dominion Energy and Dominion with carbon-free nuclear energy production from Energy West (formerly Questar). Millstone Power Station.

18 Dominion Energy, Inc. 2017 Power Gas Delivery Infrastructure

Operates regulated electric transmission Operates one of the nation’s largest and distribution franchises in Virginia and % natural gas storage systems; 14,800 % northeastern North Carolina, providing miles of natural gas transmission, electric service to about 2.6 million 20 gathering and storage pipelines; natural 35 customer accounts in the two-state area. gas distribution systems serving 2.3 OF 2017 PRIMARY million customer accounts in five states; OF 2017 PRIMARY OPERATING a liquefied natural gas terminal; and OPERATING SEGMENT Dominion Energy Solutions. It also SEGMENT EARNINGS includes our partnership in Atlantic Coast EARNINGS Pipeline, LLC.

Principal Business Lines Principal Business Lines dd Electric transmission dd Natural gas transmission and storage dd Electric distribution dd Natural gas distribution dd Liquefed natural gas services dd Retail energy marketing 2017 Highlights dd Connected 33,550 new franchise customer accounts. dd Energized 13 new data centers. 2017 Highlights dd Placed 777 overhead tap lines underground – dd Entered fnal stages of construction on the $4.1 billion resulting in 294 miles of underground lines. Cove Point liquefaction project, expected to be dd Invested more than $800 million, and placed into operational in March. service more than $500 million, in transmission dd Received a Federal Energy Regulatory Commission assets, and began construction of the Skiffes Creek (FERC) Certifcate of Public Convenience and Necessity transmission line in southeastern Virginia. for the Atlantic Coast Pipeline and associated Supply Header project – totaling $6.55-$7.1 billion – enabling both to remain on track for late 2019 completion. 2018 Expectations dd Brought online four pipeline expansion projects totaling $460 million in investment. dd Maintain a superior safety record. dd Continue to invest in capital growth projects to meet the needs of our utility customers, including hardening the physical security of our substations and 2018 Expectations modernizing the grid. dd Maintain a superior safety record. dd Continue our long-term plan to rebuild the system’s dd Continue to develop and construct three projects high-voltage transmission lines. totaling $315 million in investment serving gas and dd Advance our long-term, $2 billion undergrounding electric utilities across the company’s footprint. program to reduce the number and length of dd Initiate an investment of nearly $300 million in the power outages. Western gas region. dd Receive fnal FERC Notice to Proceed to begin formal construction of the Atlantic Coast Pipeline.

Dominion Energy, Inc. 2017 19 Our Operating and Service Areas

Your company’s businesses are principally based along the Eastern Seaboard and in the western Rockies of the United States. 16,200 EMPLOYEES

IN THE 19 STATES WHERE DOMINION ENERGY OPERATES

Our Footprint

Dominion Energy began as a canal navigation company in Virginia. We found our niche as an electric power company in 1909, and – through mergers, expansion and growth – now own and operate energy infrastructure in some of the fastest-growing regions in the nation.

Electric Distribution Electric Transmission Coal Lines (Bulk Delivery) Fuel Cell Gas Transmission Pipelines Hydro Proposed Atlantic Coast Natural Gas Pipeline Planned Natural Gas Blue Racer Facilities Facility Cove Point LNG Facility Nuclear Hastings Facility Oil/Gas Utica Shale Boundary Solar Marcellus Shale Proposed Solar Facility Boundary Wind Natural Gas Proposed Offshore Underground Storage Wind Pools Electric and Gas Regulated Gas Service/Base Distribution Privatization

20 Dominion Energy, Inc. 2017 Power Generation Power Delivery Gas Infrastructure

This operating segment consists This operating segment consists This operating segment has of a power generation fleet of 57,900 miles of distribution assets in the Appalachian Basin, fueled by nuclear, coal, natural lines and 6,600 miles of the mid-Atlantic, the Southeast gas, oil, biomass, fuel cells, transmission lines, and serves and the western Rockies. It has water, wind and the sun. It about 2.6 million electric utility gathering, processing, provides electricity to utility customer accounts in Virginia and fractionation, storage, customers and wholesale power North Carolina. transmission, distribution and markets, and under long-term liquefied natural gas facilities in contracts with other utilities 12 states and retail energy and municipalities. customer accounts in 14 states.

Dominion Energy, Inc. 2017 21 Reconciliation of Reported Earnings (GAAP) to Operating Earnings (non-GAAP)

2013 2014 2015 2016 2017 (Millions, Except Per Share Amounts)

REPORTED EARNINGS (GAAP) $ 1,697 $ 1,310 $ 1,899 $ 2,123 $ 2,999 Adjustments to reported earnings¹:

Pre-tax loss (income) 284 1,166 220 359 235 Income tax (100) (473) (79) (135) (945) 184 693 141 224 (710)

OPERATING EARNINGS (non-GAAP)* $ 1,881 $ 2,003 $ 2,040 $ 2,347 $ 2,289 EARNINGS PER COMMON SHARE — DILUTED:

REPORTED EARNINGS (GAAP) $ 2.93 $ 2.24 $ 3.20 $ 3.44 $ 4.72 Adjustments to reported earnings (after-tax) 0.32 1.19 0.24 0.36 (1.12)

OPERATING EARNINGS (non-GAAP)* $ 3.25 $ 3.43 $ 3.44 $ 3.80 $ 3.60

1 Adjustments to reported earnings are reflected in the following table:

2013 2014 2015 2016 2017

PRE-TAX LOSS (INCOME): Future ash pond and landfll closure costs — 121 99 197 — Merger-related transaction and transition costs — — — 74 72 Charges associated with equity method investments in wind-powered generation facilities — — — — 158 Loss from discontinued operations 135 — — — — Charges associated with North Anna and offshore wind facilities — 374 — — — Producer Services repositioning 127 319 — — — Charges associated with liability management exercise — 284 — — — Other items 22 68 121 88 5 $ 284 $ 1,166 $ 220 $ 359 $ 235

INCOME TAX EXPENSE (BENEFIT):

Tax effect of above adjustments to reported earnings** (100) (433) (85) (123) (94) Remeasurement of deferred tax balances*** — — — — (851) Other income tax adjustments — (40) 6 (12) — $ (100) $ (473) $ (79) $ (135) $ (945)

* Dominion Energy uses operating earnings as the primary performance measurement of its earnings outlook and results for public communications with analysts and investors. Dominion Energy’s management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power. ** Income taxes for individual pre-tax items include current and deferred taxes using a transactional effective tax rate. *** Federal tax reform enacted in December 2017 reduced the corporate income tax rate from 35 percent to 21 percent, effective Jan. 1, 2018. Deferred taxes are required to be measured at the enacted rate in effect when they are expected to reverse. As a result, deferred taxes were remeasured to the 21 percent rate. For regulated entities, where the reduction in deferred taxes is expected to be recovered or refunded in future rates, the adjustment was recorded to a regulatory asset or liability instead of income tax expense.

GAAP Reconciliation of 2018 Operating Earnings Guidance In providing its full-year 2018 operating earnings guidance, the company notes that there could be differences between expected reported (GAAP) earnings and estimated operating earnings for matters such as, but not limited to, acquisitions, divestitures or changes in accounting principles. At this time, Dominion Energy’s management is unable to estimate the aggregate impact, if any, of these items on reported earnings. Accordingly, Dominion Energy is unable to provide a corresponding GAAP equivalent for its operating earnings guidance.

22 Dominion Energy, Inc. 2017 Board of Directors*

William P. Barr John W. Harris Pamela J. Royal, M.D. Of Counsel, Chairman and Chief Executive Officer, President, Kirkland & Ellis LLP, and Lincoln Harris LLC Royal Dermatology and Former Attorney General (real estate consulting firm) Aesthetic Skin Care, Inc. of the United States Ronald W. Jibson Robert H. Spilman, Jr. Helen E. Dragas Retired Chairman, President Chairman, President President and Chief Executive Officer, and Chief Executive Officer, and Chief Executive Officer, The Dragas Companies Questar Corporation Bassett Furniture Industries, Incorporated (real estate development firm) Mark J. Kington Susan N. Story Adm. James O. Ellis, Jr., Managing Director, President and Chief Executive Officer, U.S. Navy (Ret.) Kington Management, LLC Company, Inc. Retired President and (private investments) Chief Executive Officer, Michael E. Szymanczyk Institute of Nuclear Power Operations Joseph M. Rigby Retired Chairman and Retired Chairman, President Chief Executive Officer, Thomas F. Farrell, II and Chief Executive Officer, Group, Inc. Chairman, President and Holdings, Inc. Chief Executive Officer, Dominion Energy, Inc.

* As of March 1, 2018.

Executive Leadership Other Senior Leaders

Thomas F. Farrell, II* Mark F. McGettrick* Edward H. Baine Scot C. Hathaway Chairman, President and Executive Vice President Senior Vice President, Senior Vice President, Chief Executive Officer and Chief Financial Officer Distribution, Commercial Services, Power Delivery Group Gas Infrastructure Group Robert M. Blue* Carter M. Reid Executive Vice President and Executive Vice President, P. Rodney Blevins Donald R. Raikes President & Chief Administrative & Senior Vice President and Senior Vice President, Chief Executive Officer – Compliance Officer and Chief Information Officer Dominion Midstream Power Delivery Group Corporate Secretary Operations, Anne E. Bomar Gas Infrastructure Group David A. Christian Mark O. Webb* Senior Vice President, Executive Vice President and Senior Vice President, Pipeline Services & Paul E. Ruppert Chief Innovation Officer Corporate Affairs and Optimization, President, Gas Transmission, Chief Legal Officer Gas Infrastructure Group Gas Infrastructure Group Paul D. Koonce* Executive Vice President and Thomas P. Wohlfarth Michele L. Cardiff* Daniel G. Stoddard President & Senior Vice President, Vice President, Senior Vice President and Chief Executive Officer – Regulatory Affairs Controller and Chief Nuclear Officer Power Generation Group Chief Accounting Officer Craig C. Wagstaff Diane Leopold* James R. Chapman President, Gas Distribution, Executive Vice President and Senior Vice President, Gas Infrastructure Group President & Mergers & Acquisitions Chief Executive Officer – and Treasurer Fred G. Wood, III Gas Infrastructure Group Senior Vice President, Katheryn B. Curtis Financial Management, * Executive Offcers pursuant to U.S. Securities and Senior Vice President, Gas Infrastructure Group Exchange Commission rules, as of March 1, 2018. Generation, Power Generation Group

Pamela F. Faggert Chief Environmental Officer and Senior Vice President, Sustainability

Dominion Energy, Inc. 2017 23 Shareholder Inquiries, Transfer Agent and Registrar, Annual Meeting Dividend Disbursing Agent, Plan Administrator This year’s Annual Meeting of Shareholders of Dominion Energy, Inc., Broadridge Corporate Issuer Solutions, Inc. (Broadridge), is the transfer will be held on Wednesday, May 9, 2018, at 9:30 a.m. (ET) at the agent, registrar and dividend-paying agent for Dominion Energy’s Greater Richmond Convention Center, 403 North 3rd Street, Richmond, common stock and is the administrator for Dominion Energy Direct®, Virginia 23219. Dominion Energy’s direct stock purchase and dividend reinvestment plan. Please contact Broadridge for a prospectus and enrollment form. Performance Graph The table and graph below show the five-year cumulative total returns based on an initial investment of $100.00 in Dominion Energy common Personal assistance is available for any inquires Monday through Friday stock with all dividends reinvested compared with the S&P 500 Index from 8:00 a.m. to 6:00 p.m. (ET). In addition, automated information is and the S&P 500 Utilities Index. available 24 hours a day through our voice-response system. Registered shareholders may view and manage their account online by visiting www.shareholder.broadridge.com/D. Indexed Returns

Value of Investment as of Dec. 31 Dominion Energy Shareholder Services (includes reinvestment of dividends) c/o Broadridge Corporate Issuer Solutions, Inc. 2012 2013 2014 2015 2016 2017 P.O. Box 1342 Brentwood, New York 11717 1 (800) 552-4034 (toll-free) Dominion Energy $100 $129.65 $159.46 $145.53 $171.01 $187.94 [email protected] S&P 500 100 132.39 150.51 152.59 170.84 208.14 S&P 500 Utilities 100 113.21 146.02 138.95 161.57 181.13 Major press releases and other company information may be obtained by visiting our website at www.dominionenergy.com.

Common Stock Listing Comparison Of Cumulative Five-Year Trading symbol: D Total Return Dominion Energy S&P 500 S&P 500 Utilities Common Stock Price Range 20 2017 2016 $208.14 200 $187.94 $181.13 High Low High Low 10 First Quarter $ 79.36 $ 70.87 $ 75.18 $ 66.25

Second Quarter 81.65 76.17 77.93 68.71 100 Third Quarter 80.67 75.40 78.97 72.49 Fourth Quarter 85.30 75.75 77.32 69.51 0 Year 85.30 70.87 78.97 66.25 0 Source: Bloomberg 12 1 1 1 1 17

Source: Standard & Poor’s Dividends on Dominion Energy common stock are paid as declared by the Board. Dominion Energy paid $0.755 per share in the first through third quarters and $0.77 per share in the fourth quarter of 2017. Dividends are typically paid on the 20th of March, June, September and December. Dividends may be paid by check or electronic deposit, or they may be reinvested.

24 Dominion Energy, Inc. 2017 Photo Captions

Front Cover: Virginia. The company and its philanthropic arm, the Dominion Energy Dominion Energy delivers dependable power and natural gas to dads Charitable Foundation, annually contribute about $20 million in the and their daughters – and anyone else – making breakfast in kitchens communities we serve. One recipient is the Virginia Institute of Marine across our company’s footprint. Science, which received a $40,000 grant to enable high school and college students to establish, monitor, and collect data on oyster beds Inside Front Cover: in the Rappahannock, Piankatank and Lynnhaven Rivers (middle). Top row (left to right): Ellis Graves (9:38 a.m.), Erika Reyes (11:03 a.m.) and Kelly Balderson (1:42 p.m.), respectively, ensure safe, reliable and Page 18: sustainable operations of our company’s energy infrastructure. Power Generation: The North Anna Power Station in Mineral, Va., annually produces about one-sixth of the electricity generated at our Second row (left to right): Employees at the world’s largest battery – in utility fleet. We are working with regulators at the Nuclear Regulatory Bath County, Va. – prepare to pump water up at night (10:24 p.m.) to Commission and others to prepare for subsequent license renewals, meet the next day’s energy demand, while employee volunteers in Salt enabling the two reactors there to remain in safe operating condition Lake City (8:49 a.m.) make green cleaning kits for vulnerable members for decades to come. of the Utah community. Volunteers in Virginia (12:23 p.m.), meanwhile, are helping Hero Homes, a nonprofit organization dedicated to building Page 19: homes for wounded veterans in need. Power Delivery: Your company delivers energy over 6,600 miles of high-voltage transmission lines, including the 51-mile, 500-kilovolt Third row (left to right): Customer service employees (8:09 p.m.) are Elmont-to-Cunningham line, whose $106 million rebuild was there to help customers when they need assistance with their service, completed in late 2017. bills, etc. Workers at the Brunswick County Power Station (2:43 p.m.), which entered service in 2016, produce electricity from clean-burning Gas Infrastructure: Dominion Energy West, which includes the assets natural gas, powering 340,000 homes and businesses. Dominion from Questar Corporation that joined the company’s fold in 2016, keeps Energy Virginia lineworkers and other personnel (11:24 p.m.) joined one the gas flowing 24/7 for 1 million natural gas utility customer accounts of the nation’s largest power restoration efforts in Florida in the wake of in , Utah and . Hurricane Irma. Back Cover: Bottom row (left to right): Employee volunteers plant several native Dominion Energy serves Main Streets throughout the states where plants (9:38 a.m.) as part of a pollinator patch, in coordination with we do business. What we do every minute of every day – that is, Arlington County, Va., and NoVA Parks. Our company routinely tests provide reliable, efficient and affordable energy – fuels economic and emergency preparedness (7:00 p.m.) in Dominion Energy Virginia’s population growth in places like Leesburg, Va., a fast-growing, historic Mobile Command Center. The Ardell Station in Pennsylvania (3:15 a.m.) town nestled near the Potomac River in Loudoun County. ensures that gas is delivered to keep homes warm and industry thriving. Credits Page 2: © 2018 Dominion Energy, Inc., Top right: Dominion Energy Virginia has installed nearly 400,000 Richmond, Virginia state-of-the-art smart meters over the past decade throughout its service area. Over the next several years, we plan to deploy more to Design improve the two-way flow of communications between electrical Ideas On Purpose, equipment and our control rooms and reduce the length of power New York, New York outages when they occur. www.ideasonpurpose.com

Bottom left: The Cove Point liquefied natural gas (LNG) facility in Printing Lusby, Md., is a bidirectional LNG plant that, beginning in March, can Worth Higgins & Associates, both import and export natural gas for American energy customers and Richmond, Virginia energy customers in India and Japan, alike. worthhiggins.com Page 11: The 80-megawatt Amazon Solar Farm-Accomack facility, on Virginia’s Photography Cameron Davidson, front cover; inside front cover (third row, center); Eastern Shore, was the first of the six Dominion Energy-Amazon Web page 18; page 19 (left); back cover. Ted Kawalerski, inside front cover Services alliance projects, totaling 260 megawatts, to enter service. (bottom row, right). Dominion Energy, Inc., inside front cover (top row, When it came online in 2016, it was the largest solar array in the left, center and right; second row, left, center and right; third row, left mid-Atlantic region. It has been since eclipsed by the 100-megawatt and right; bottom row, left and center); page 2 (top and bottom); page 3 Amazon Solar Farm-Southampton facility, in southeastern Virginia. (bottom); page 4-5; page 8; page 10; page 11; page 12 (left, right center and bottom); page 14; page 17; page 19, right. Mark Mitchell, page 6. Page 12: William Taufic, page 3 (top). Doug Buerlein, page 12 (top right). Dominion Energy employees spent nearly 125,000 hours in 2017 volunteering their time for causes and organizations in which they believe. Those include community clean-ups such as the one at the historic Liberty Trail in Richmond, Va. (left), and transforming an unused outdoor courtyard at an elementary school into a learning lab in which students can grow vegetables and herbs (bottom). Our philanthropic programs include EnergyShare, which provides heating and cooling bill assistance, energy efficiency education and The FSC® trademark identifies products that contain fiber from well- weatherization services for those in need (top). EnergyShare annually managed certified to the FSC management standard. helps tens of thousands of families in North Carolina, Ohio and Shareholder Inquiries Mailing Address Dominion Energy Shareholder Dominion Energy, Inc. Services P.O. Box 26532 c/o Broadridge Corporate Issuer Richmond, Virginia Solutions, Inc. 23261–6532 P.O. Box 1342 Brentwood, New York 11717 Independent Registered Public [email protected] Accounting Firm Deloitte & Touche LLP Corporate Street Address Richmond, Virginia Dominion Energy, Inc. 120 Tredegar Street Richmond, Virginia 23219

Additional Information Copies of Dominion Energy’s Summary Annual Report, Proxy Statement and reports on Form 10-K, Form 10-Q and Form 8-K are available without charge. These items may be viewed by visiting www.dominionenergy.com, or requests for these items may be made by writing to:

Corporate Secretary Dominion Energy, Inc. P.O. Box 26532 Richmond, Virginia 23261–6532

7:15 p.m.

www.dominionenergy.com