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VIRGINIA POWER CUSTOMERS TO BE OFFERED AMERICA'S UTILITY FUND: THE NATION'S FIRST

 VIRGINIA POWER CUSTOMERS TO BE OFFERED AMERICA'S UTILITY FUND:
 THE NATION'S FIRST
 RICHMOND, Va., May 13 /PRNewswire/ -- Virginia Power customers are being offered a new investment opportunity in their monthly bills -- America's Utility Fund. It will be the nation's first utility mutual fund available for direct purchase by electric customers through monthly installments without brokerage fees.
 America's Utility Fund is being offered alongside a more familiar investment opportunity -- the Customer Stock Purchase Plan. For 12 years that plan, the nation's first and largest, has enabled customers to purchase stock in Dominion Resources, Inc. (NYSE: D), the parent company of Virginia Power.
 Current electricity bills contain inserts describing each investment option. Interested customers may request enrollment packages, which contain a prospectus for each program.
 "We're offering customers two options to invest and save money when well-managed utility stocks and mutual funds are finding increasing favor," O.J. Peterson, III, senior vice president and chief financial officer of Dominion Resources, Inc., said.
 "It seems that today you can buy virtually everything on installment -- stocks and mutual funds should not be exceptions," Peterson said. "Now, any of our customers who want to invest in a diversified mutual fund of utility stocks will be able to do so without paying large minimum amounts or paying commissions to brokers."
 "This mutual fund creates a new investment opportunity for people with smaller sums of money to save and invest," he said.
 Under the new program, customers can pay as little as $20 per month. Their money will be invested in shares of the fund on receipt. Customers may invest as much as they want.
 The fund will be managed by Lord, Abbett & Co., a prominent investment management company headquartered in New York.
 Under the current Dominion Resources Customer Stock Purchase Plan, customers can pay as little as $20 per month toward the purchase of Dominion Resources stock. The money is held by Dominion Resources for 12 months. It earns 6.5 percent interest during the holding period. At the end of the 12-month collection period, the accumulated principal and interest is used to purchase shares of company stock. The purchase price is determined by averaging the price of shares over the preceding 12-month period.
 Peterson noted that the company's stock purchase plan has contributed favorably to customer relations.
 "Naturally, past performance is never an indicator of future performance, but we are gratified by our successful efforts to date," Peterson said. "Since we introduced direct stock purchase in 1980, our customers have invested $185 million. This now has a market value of almost $400 million, if you assume all dividends have been reinvested.
 "It surpassed our most ambitious expectations and has become a reliable source of new equity. It is a major reason we have not had to make a public offering of common stock since 1982."
 Nearly 75 percent of respondents to a 1991 survey of customer stock plan participants said they would welcome the introduction of a utility mutual fund as a direct-purchase investment option.
 After the plan is introduced in Virginia, other major utilities will be invited to offer similar programs. American's Utility Fund Service Co., a subsidiary of Dominion Capital, Inc., would use its resources to administer the programs for companies that participate. Dominion Capital is the financial services subsidiary of Dominion Resources.
 -0- 5/13/92
 EDITOR'S NOTE: Peterson will be available by telephone today for further information and comment.
 /CONTACT: Mark G. Lazenby, Dominion Resources, 804-775-5704/
 (D) CO: Dominion Resources ST: Virginia IN: UTI SU: PDT


JZ -- CH003 -- 9545 05/13/92 10:02 EDT
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Publication:PR Newswire
Date:May 13, 1992
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