Document:

<PAGE>

                                                                   EXHIBIT 4(ix)

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                      VIRGINIA ELECTRIC AND POWER COMPANY

                                      TO

                           THE CHASE MANHATTAN BANK

                                              Trustee.

                                 Eighty-Sixth

                            Supplemental Indenture

                            Dated ___________, 200_

                                 ____________
                                  $_________

          First and Refunding Mortgage Bonds of 200_,Series__, ____%,
                               due _______, 20__

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                A MORTGAGE OF BOTH REAL AND PERSONAL PROPERTY.

                                      -1-
<PAGE>

                             TABLE OF CONTENTS/1/

<TABLE>
<CAPTION>
                                                                                    Page
                                                                                    ----
<S>                                                                                 <C>
Parties............................................................................   1
Addresses..........................................................................   1
Recitals...........................................................................   1
Consideration Clause...............................................................   5
Granting Clause....................................................................   5
Exception Clause...................................................................   7
Habendum Clause....................................................................   7
Grant in Trust.....................................................................   7

                                        ARTICLE 1.

                                 BONDS OF 20__, SERIES __

(S) 1.01    Establishment, form and terms..........................................   8
(S) 1.02    Registration, transfer and exchange....................................   9
(S) 1.03    Procedure for payment of interest......................................  10
(S) 1.04    Redemption.............................................................  10
(S) 1.05    Funds deposited for maturity to be immediately available...............  11

                                        ARTICLE 2.

                                MISCELLANEOUS PROVISIONS

(S) 2.01    References to Original Indenture or previous Supplemental Indentures...  11
(S) 2.02    The Trustee............................................................  12
(S) 2.03    Original Indenture and Supplemental Indentures to be read together.....  12
(S) 2.04    Date of execution......................................................  12
(S) 2.05    Execution in counterparts..............................................  12
Testimonium........................................................................  13
Signatures and Seals...............................................................  14
Acknowledgments....................................................................  15
</TABLE>

________________
 /1/ This Table of Contents does not constitute part of the Indenture or have
any bearing upon the interpretation of any of its terms and provisions.

                                      -2-
<PAGE>

     EIGHTY-SIXTH SUPPLEMENTAL INDENTURE dated the ____ day of _____, 200_, by
and between VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia corporation and a
transmitting utility (as such term is defined in Section 46-9-105(n) of the West
Virginia Code), One James River Plaza, Richmond, Virginia (the Company), party
of the first part, and THE CHASE MANHATTAN BANK (NATIONAL ASSOCIATION), a
national banking association, One Chase Manhattan Plaza, New York, New York (the
Trustee), party of the second part.

     The Company has heretofore made its Indenture of Mortgage dated November 1,
1935 (the Original Indenture) to The Chase National Bank of the City of New
York, predecessor Trustee, and various supplemental indentures supplementing
and/or modifying the Original Indenture as follows:

               Title                                           Dated
               -----                                           -----

First Supplemental Indenture............................... September 1, 1938
Second Supplemental Indenture.............................. February 9, 1940
Third Supplemental Indenture............................... March 1, 1941
Fourth Supplemental Indenture.............................. April 1, 1944
Fifth Supplemental Indenture............................... March 1, 1945
Sixth Supplemental Indenture............................... October 1, 1947
Seventh Supplemental Indenture............................. March 1, 1948
Eighth Supplemental Indenture.............................. October 1, 1948
Ninth Supplemental Indenture............................... June 1, 1949
Tenth Supplemental Indenture............................... November 1, 1949
Eleventh Supplemental Indenture............................ September 1, 1950
Twelfth Supplemental Indenture............................. December 1, 1951
Thirteenth Supplemental Indenture.......................... October 1, 1952
Fourteenth Supplemental Indenture.......................... May 1, 1954

and has heretofore made to The Chase Manhattan Bank, which on March 31, 1955,
became the Trustee under the Mortgage by virtue of the merger of The Chase
National Bank of the City of New York into President and Directors of the
Manhattan Company under the name of The Chase Manhattan Bank (now The Chase
Manhattan Bank (National Association)), further supplemental indentures
supplementing and/or modifying the Original Indenture as follows:

                   Title                                         Dated
                   -----                                         -----

Fifteenth Supplemental Indenture............................June 1, 1955
Sixteenth Supplemental Indenture............................September 1, 1956
Seventeenth Supplemental Indenture..........................December 1, 1957
Eighteenth Supplemental Indenture...........................June 1, 1958
Nineteenth Supplemental Indenture...........................April 1, 1959
Twentieth Supplemental Indenture............................September 1, 1960
Twenty-First Supplemental Indenture.........................June 1, 1961
Twenty-Second Supplemental Indenture........................May 1, 1963
Twenty-Third Supplemental Indenture.........................December 1, 1963
Twenty-Fourth Supplemental Indenture........................May 1, 1965
<PAGE>

Twenty-Fifth Supplemental Indenture.........................February 1, 1967
Twenty-Sixth Supplemental Indenture.........................December 1, 1967
Twenty-Seventh Supplemental Indenture.......................January 1, 1969
Twenty-Eighth Supplemental Indenture........................June 1, 1969
Twenty-Ninth Supplemental Indenture.........................April 1, 1970
Thirtieth Supplemental Indenture............................September 1, 1970
Thirty-First Supplemental Indenture.........................March 1, 1971
Thirty-Second Supplemental Indenture........................September 1, 1971
Thirty-Third Supplemental Indenture.........................June 1, 1972
Thirty-Fourth Supplemental Indenture........................July 1, 1974
Thirty-Fifth Supplemental Indenture.........................July 1, 1974
Thirty-Sixth Supplemental Indenture.........................February 1, 1975
Thirty-Seventh Supplemental Indenture.......................September 1, 1975
Thirty-Eighth Supplemental Indenture........................November 1, 1975
Thirty-Ninth Supplemental Indenture.........................March 1, 1976
Fortieth Supplemental Indenture.............................May 1, 1976
Forty-First Supplemental Indenture..........................September 1, 1976
Forty-Second Supplemental Indenture.........................March 1, 1977
Forty-Third Supplemental Indenture..........................March 1, 1978
Forty-Fourth Supplemental Indenture.........................May 1, 1978
Forty-Fifth Supplemental Indenture..........................July 1, 1978
Forty-Sixth Supplemental Indenture..........................April 1, 1979
Forty-Seventh Supplemental Indenture........................October 1, 1979
Forty-Eighth Supplemental Indenture.........................July 1, 1980
Forty-Ninth Supplemental Indenture..........................April 1, 1981
Fiftieth Supplemental Indenture.............................July 1, 1981
Fifty-First Supplemental Indenture..........................July 1, 1981
Fifty-Second Supplemental Indenture.........................September 1, 1982
Fifty-Third Supplemental Indenture..........................December 1, 1982
Fifty-Fourth Supplemental Indenture.........................June 1, 1983
Fifty-Fifth Supplemental Indenture..........................June 1, 1984
Fifty-Sixth Supplemental Indenture..........................September 1, 1984
Fifty-Seventh Supplemental Indenture........................November 1, 1984
Fifty-Eighth Supplemental Indenture.........................December 1, 1984
Fifty-Ninth Supplemental Indenture..........................April 1, 1986
Sixtieth Supplemental Indenture.............................November 1, 1986
Sixty-First Supplemental Indenture..........................June 1, 1987
Sixty-Second Supplemental Indenture.........................November 1, 1987
Sixty-Third Supplemental Indenture..........................June 1, 1988
Sixty-Fourth Supplemental Indenture.........................February 1, 1989
Sixty-Fifth Supplemental Indenture..........................June 1, 1989
Sixty-Sixth Supplemental Indenture..........................March 1, 1990
Sixty-Seventh Supplemental Indenture........................April 1, 1991
Sixty-Eighth Supplemental Indenture.........................March 1, 1992
Sixty-Ninth Supplemental Indenture..........................March 1, 1992
Seventieth Supplemental Indenture...........................March 1, 1992

                                      -2-
<PAGE>

Seventy-First Supplemental Indenture........................July 1, 1992
Seventy-Second Supplemental Indenture.......................July 1, 1992
Seventy-Third Supplemental Indenture........................August 1, 1992
Seventy-Fourth Supplemental Indenture.......................February 1, 1993
Seventy-Fifth Supplemental Indenture........................April 1, 1993
Seventy-Sixth Supplemental Indenture........................April 1, 1993
Seventy-Seventh Supplemental Indenture......................June 1, 1993
Seventy-Eighth Supplemental Indenture.......................August 1, 1993
Seventy-Ninth Supplemental Indenture........................August 1, 1993
Eightieth Supplemental Indenture............................October 1, 1993
Eighty-First Supplemental Indenture.........................January 1, 1994
Eighty-Second Supplemental Indenture........................January 1, 1994
Eighty-Third Supplemental Indenture.........................October 1, 1994
Eighty-Fourth Supplemental Indenture........................March 1, 1995

     The Original Indenture and such supplemental indentures are incorporated
herein by this reference and the Original Indenture as so supplemented and
modified is herein called the Mortgage.

     First and Refunding Mortgage Bonds (the Bonds) are presently outstanding
under the Mortgage as follows [May 30, 1995]:

Series U, 5 1/8%, due February 1, 1997.......................$ 49,290,000

Bonds of 1988, Series A, 9 3/8%, due June 1, 1998............ 150,000,000

Bonds of 1989, Series B, 8 7/8%, due June 1, 1999............ 100,000,000

Bonds of 1991, Series A, 8 3/4%, due April 1, 2021........... 100,000,000

Bonds of 1992, Series B, 7 1/4%, due March 11997............. 250,000,000

Bonds of 1992, Series C, 8%, due March 1, 2004............... 250,000,000

Bonds of 1992, Series D, 7 5/8%, due July 1, 2007............ 215,000,000

Bonds of 1992, Series E, 7 3/8%, due July 1, 2002............ 155,000,000

Bonds of 1992, Series F, 6 1/4%, due August 1, 1998............75,000,000

Bonds of 1993, Series A, 7 1/4%, due February 1, 2023........ 100,000,000

Bonds of 1993, Series B, 6 5/8%, due April 1, 2003........... 200,000,000

Bonds of 1993, Series C, 5 7/8%, due April 1, 2000........... 135,000,000

Bonds of 1993, Series D, 7 1/2%, due June 1, 2023.............200,000,000

                                      -3-
<PAGE>

Bonds of 1993, Series E, 6%, due August 1, 2001...............100,000,000

Bonds of 1993, Series F, 6%, due August 1, 2002...............100,000,000

Bonds of 1993, Series G, 6 3/4%, due October 1, 2023..........200,000,000

Pollution Control Series 1994A, 5.45%, due January 1, 2024.....19,500,000

Bonds of 1994, Series A, 7%, due January 1, 2024..............125,000,000

Bonds of 1994, Series B, 8 5/8%, due October 1, 2024..........200,000,000

Bonds of 1995, Series A, 8 1/4%, due March 1, 2025............200,000,000

(*Subject to deletion of retired series or portions thereof and addition of new
series, as issued)

     Under the Mortgage, any new series of Bonds may at any time be established
by the Board of Directors of the Company in accordance with the provisions of
the Mortgage (up to an aggregate amount of $__________ outstanding at any one
time without further authorization of the stockholder of the Company) and their
terms may be described by a supplemental indenture executed by the Company and
the Trustee.

     The Company proposes to create under the Mortgage, as hereby supplemented
(the Indenture), a new series of Bonds to be designated First and Refunding
Mortgage Bonds of 200_, Series __, __%, due________ __, ____, to bear interest
from _______ __, 200_, and to be due _______ __, 20__ and proposes to issue
$______ aggregate principal amount of such Bonds.

     The aggregate principal amount of Bonds of the Company, issued or so to be
issued and outstanding under the provisions of and secured by the Indenture,
will then be $_______ , consisting of $_______ aggregate principal amount of
Bonds presently outstanding and $_______ aggregate principal amount of Bonds of
200_, Series __, which are to be issued after the execution and delivery of this
Eighty-Sixth Supplemental Indenture pursuant to Article 2 of the Original
Indenture. Additional Bonds of certain series herein mentioned and additional
Bonds of all other series hereafter established, except as may be limited in the
Indenture as at the time supplemented and modified, may be issued from time to
time pursuant to the Indenture as at the time supplemented and modified.

     The Company also desires to supplement the Mortgage and add new provisions
thereto pursuant to the provisions of (S)13.01 of the Original Indenture.

     All conditions necessary to authorize the execution, delivery and recording
of this Eighty-Sixth Supplemental Indenture and to make it a valid and binding
indenture of mortgage for the security of the Bonds of the Company issued or to
be issued under the Indenture have been done or performed.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH,

                                      -4-
<PAGE>

     That, in order further to secure equally and ratably the payment of the
principal of and interest on the Bonds at any time issued and outstanding under
the Indenture, according to their tenor and effect, and the performance of all
the covenants and conditions contained in the Indenture or in the Bonds, and for
the purpose, among others, of confirming the lien of the Indenture, the Company,
for and in consideration of the premises and of the purchase and acceptance of
the Bonds by the holders thereof, and of the sum of One Dollar ($1.00) and of
other valuable consideration to it duly paid by the Trustee at or before the
execution and delivery of these presents, the receipt whereof is hereby
acknowledged, has executed and delivered these presents and does hereby grant,
bargain, sell, convey, transfer, assign, mortgage, pledge and confirm to the
Trustee and its successors in the trust created by the Indenture and to its and
their assigns, [If specific property is to be mortgaged under the Supplemental
Indenture -- the property hereinafter described, to wit:] [If no specific
property is to be mortgaged under the Supplemental Indenture -- all property,
real, personal and mixed, tangible and intangible, rights, privileges,
franchises and immunities, now owned by the Company and within the Granting
Clauses covering after-acquired property.

     But expressly excepting (unless and until hereafter mortgaged, pledged or
assigned to the Trustee or otherwise made subject to the lien of the Indenture,
or required so to be by any provision therein) all properties that would be
excepted by clauses (A) through (H) of Part VI of the Granting Clauses of the
Fourteenth Supplemental Indenture as if such clauses were herein set out in
full.]

                                      -5-
<PAGE>

                       DESCRIPTION OF MORTGAGED PROPERTY

                                    PART I.

                                     LAND.

     All the tracts or parcels of land or interests in land, together with all
the improvements thereon, and all rights, privileges and appurtenances thereunto
belonging or in anywise appertaining, and all equipment, fixtures and apparatus,
property, real, personal and mixed, used in connection therewith, whether
attached to the freehold or not, conveyed to the Company as indicated in the
tables below:

                                  IN VIRGINIA
                                                                 Recordation
                                                                    Data
                                                                 -----------

     Grantor     Recording Office     Date of Deed     Book No.      Page
     -------     ----------------     ------------     --------      ----

                               IN [OTHER STATES]

                                                                 Recordation
                                                                    Data
                                                                 -----------

     Grantor     Recording Office     Date of Deed     Book No.      Page
     -------     ----------------     ------------     --------      ----

                                   PART II.

                                  FRANCHISES.

                                   PART III.

                          ELECTRIC LINES AND SYSTEMS.

     All electric lines and systems now owned by the Company, including those
described below:

     Beginning              Ending                        Length In Miles
     ---------              ------                        ---------------

                                   PART IV.

                                OTHER PROPERTY.

                                      -6-
<PAGE>

     All other property, real, personal and mixed, tangible and intangible, now
owned by the Company or hereafter acquired, except as herein excepted.

                                    PART V.

                                    INCOME.

     All tolls, revenues, earnings, income, rents, issues and profits of all
property hereby mortgaged and conveyed.

                                   PART VI.

                             PROPERTIES EXCEPTED.

     But expressly excepting (unless and until hereafter mortgaged, pledged or
assigned to the Trustee or otherwise made subject to the lien of the Indenture,
or required so to be by any provision therein) all properties that would be
excepted by clauses (A) through (H) of Part VI of the Granting Clauses of the
Fourteenth Supplemental Indenture as if such clauses were herein set out in
full.]

     TO HAVE AND TO HOLD all and singular the aforesaid property, rights,
privileges, franchises and immunities, whether now owned or hereafter acquired,
unto the Trustee, its successors in the trust created by the Indenture and its
and their assigns forever:

     BUT IN TRUST NEVERTHELESS, for the further and equal pro rata benefit,
security and protection of all present and future holders of the Bonds issued
and to be issued under and secured by the Indenture, and to secure the payment
of the principal of and interest on the Bonds thereon, in accordance with
provisions of the Bonds and of the Indenture, without any discrimination,
preference, priority or distinction as to lien or otherwise of any Bonds over
any other Bonds, by reason of priority in time of the issue or negotiation
thereof or otherwise howsoever, so that the principal and interest of every Bond
shall be equally and ratably secured hereby as if all the Bonds had been issued,
sold and delivered for value simultaneously with the execution of the Original
Indenture, and to secure the performance of and compliance with the covenants
and conditions of the Bonds and of the Indenture, and upon the trusts and for
the uses and purposes and subject to the covenants, agreements, provisions and
conditions set forth and declared in the Indenture.

                                  ARTICLE 1.

                           BONDS OF 200_, Series __

     (S)1.01. There is hereby established a new series of Bonds to be issued
under and secured by the Indenture, to be designated as the Company's First and
Refunding Mortgage Bonds of 200_, Series __, ___%, due ______ __, 20__ (the
Bonds of 200_, Series __).

     There are to be authenticated and delivered $________ principal amount of
Bonds of 200_ Series __, and no further Bonds of 200_, Series __ shall be
authenticated and delivered

                                      -7-
<PAGE>

except upon exchange or transfer pursuant to (S)1.11 of the Original Indenture.
The Bonds of 200_, Series __ shall be registered bonds, without coupons.

     The Bonds of 200_, Series __ shall be in substantially the form set out in
Article 2 of the Twenty-Fifth Supplemental Indenture with such insertions,
modifications and additions as may be required by the particular terms and
provisions of this Eighty-Sixth Supplemental Indenture (and in particular this
(S)1.01 and (S)1.04 hereof) for the Bonds of 200_, Series __.

     Each Bond of 200_, Series __ shall be dated the date of authentication
thereof and shall bear interest from the date of original issuance thereof or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for.

     All Bonds of 200_, Series __ shall be due on _______ __, 20__, and shall
bear interest at the rate of __% per annum, to be paid semi-annually on the
first day of _____ and on the first day of _____ in each year until payment of
the principal thereof. The principal, premium, if any, and interest on the Bonds
of 200_, Series __, shall be payable in lawful money of the United States of
America, at the office or agency of The Chase Manhattan Bank (National
Association), or its successor in trust under the Indenture, in New York, New
York. The Regular Record Date for the payment of the interest payable, and
punctually paid or duly provided for, on any Interest Payment Date with respect
to the Bonds of 200_, Series __ shall be the fifteenth day (whether or not a
business day) of the calendar month next preceding such Interest Payment Date.

     Definitive Bonds of 200_, Series __ may be issued in the denomination of
$______, or any integral multiple thereof.

     (S)1.02. The Trustee shall, by virtue of its office as Trustee, be the
Registrar and Transfer Agent of the Company for the purpose of registering and
transferring Bonds of 200_, Series __. The Company shall cause to be kept at the
office or agency of the Registrar books for such registration and transfer (the
Bond Register) and will permit Bonds of 200_, Series __ to be transferred or
registered thereon, in accordance with their terms and under such reasonable
regulations as the Company may prescribe.

     Upon surrender for transfer of any Bonds of 200_, Series __ at the office
or agency of the Registrar, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of 200_, Series __ of any authorized
denominations, of a like aggregate principal amount.

     At the option of the registered holder, Bonds of 200_, Series __ may be
exchanged for other Bonds of 200_, Series ___ of any authorized denominations,
of a like aggregate principal amount, upon surrender of Bonds of 200_, Series __
to be exchanged at the office or agency of the Registrar.  Whenever any Bonds of
200_, Series __ are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Bonds of 200_, Series __ which
the bondholder making the exchange is entitled to receive.

     All Bonds of 200_, Series __ issued upon any such transfer or exchange
shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under the Indenture, as the Bonds of 200_, Series
__ surrendered upon such transfer or exchange.

                                      -8-
<PAGE>

     Every Bond of 200_, Series __ presented or surrendered for transfer or
exchange shall (if so required by the Company or the Trustee) be duly endorsed,
or be accompanied by a written instrument of transfer in form satisfactory to
the Company and to the Registrar duly executed, by the holder thereof or his
attorney duly authorized in writing.

     No service charge will be made for any transfer or exchange of Bonds of
200_, Series __, but payment will be required of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection therewith.

     [The provisions of (S)1.06, (S)1.08 and (S)1.09 of the Original Indenture
shall (not) be applicable to the Bonds of 200_, Series __.]

     The Company shall not be required (a) to issue, transfer or exchange any
Bonds of 200_, Series __ during a period beginning at the opening of business 15
days before the day of the mailing of a notice of redemption of less than all of
the outstanding Bonds of 200_, Series __ and ending at the close of business on
the day of the mailing, or (b) to transfer or exchange any Bonds of 200_, Series
__ theretofore selected for redemption in whole or in part.

     (S)1.03. Reference is made to (S)1.03 of the Twenty-Fifth Supplemental
Indenture for provisions concerning the procedure for the payment of interest on
the Bonds of 200_, Series __.

     [(S)1.04. The Bonds of 200_, Series __ shall be subject to redemption at
the option of the Company, as a whole or in part, at any time or from time to
time, on or after _______ __, ____, at the percentages of the principal amount
thereof specified in the following table under the heading "Regular Redemption
Price". The Bonds of 200_, Series __ shall also be subject to redemption at the
option of the Company, as a whole or in part, at any time or from time to time,
on or after _____ __, ____, at the percentages of the principal amount thereof
specified in the following table under the heading "Special Redemption Price",
if redeemed (a) by the application of cash from the Maintenance and Improvement
Fund provided by (S)3.01 of the Third Supplemental Indenture, (b) by the
application of Funds in Escrow as defined in (S)6.02 of the Original Indenture
or (c) as a whole within 12 months after acquisition of not less than a majority
of the outstanding Common Stock of the Company by any municipality or
governmental body, agency, instrumentality or authority, or any non-profit
cooperative body, or any nominee thereof:

[TABLE]

together with any unmatured interest accrued to the Redemption Date, payable on
surrender for redemption (the interest installment payable on the Redemption
Date, if such date is an Interest Payment Date, to be paid to the holder of
record at the close of business on the Regular Record Date for such Interest
Payment Date).

     [But prior to ______ __, ____, the Company may not redeem any of the Bonds
of 200_, Series __, directly or indirectly from or in anticipation of moneys
borrowed involving an interest cost to the Company (calculated in accordance
with accepted financial practice) of less than __% per year.]

                                      -9-
<PAGE>

     Notice of redemption shall be given by first-class mail, postage prepaid,
mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each holder at his address appearing in the Bond Register and shall contain the
information required by (S)3.02 of the Original Indenture. There need be no
publication of such notice despite the provisions of such (S)3.02.

     [The Company shall not redeem, purchase or otherwise acquire for a
consideration any of the Bonds of 200_, Series __, except by redemption thereof
pursuant to this (S)1.04.]

     [No supplemental indenture entered into pursuant to (S)14.01 of the
Original Indenture shall amend or otherwise modify any provision contained in
this (S)1.04 (other than provisions regarding the manner, form and timing of
notice pursuant to the second paragraph of this (S)1.04) without the consent of
all the holders of Bonds of 200_, Series __, then outstanding; nor shall any
default by the Company in the performance of its obligations under this (S)1.04
(other than the manner, form and timing of notice pursuant to the second
paragraph of this (S)1.04), and the consequences thereof, be waived pursuant to
(S)7.24 of the Original Indenture without like consent.]]

     [(S)1.05. Irrespective of any provision of the Indenture or of the Bonds of
200_, Series __ to the contrary, so long as any purchaser under one of the
Purchase Agreements (as hereinafter defined), or a nominee thereof, shall be a
registered holder of any of the Bonds of 200_, Series __, or if any other
institutional investor or its nominee or nominees shall at any time be the
registered holder or holders of at least __% of the aggregate principal amount
of Bonds of 200_,

     Series __ then outstanding, payment of principal of and interest on any
Bond of 19 __, Series __ of which such purchaser or its nominee or such other
institutional investor or its nominee is the registered holder shall be made,
without presentation thereof, by check payable to the order of such holder
mailed to its address as it appears on the Bond Register maintained in
accordance with (S)1.02 hereof on the Interest Payment Date or (in the case of a
redemption in part only of any Bond of 200_, Series __ of which such purchaser
or its nominee or such other institutional investor or its nominee is the
registered holder) the Redemption Date, as the case may be, or to such other
person and address and by such other manner as may be specified by such
purchaser or other institutional investor in Schedule 1 to the Purchase
Agreements, or otherwise, in a written order filed with the Company at least
five days prior to the Interest Payment Date or (in the case of a redemption in
part only of any Bond of 200_, Series __ of which such purchaser or its nominee
or such other institutional investor or its nominee is the registered holder)
the Redemption Date, as the case may be.  As a condition to making any such
payment, there shall be filed with the Trustee by such purchaser or other
institutional investor an agreement (designating its nominee or nominees, if
any, and which, in the case of such purchaser, shall be a copy of its Purchase
Agreement referred to in the penultimate paragraph of this (S)1.05) that prior
to the delivery by it upon disposition of any such Bond of 200_, Series __ so
redeemed in part it will make an appropriate endorsement thereon as to all
payments on account of principal thereof.]

     [The indemnity agreement of any such purchaser or any such other
institutional investor, without security therefor, shall constitute sufficient
indemnity to the Company and the Trustee for the purposes of (S)1.11 of the
Original Indenture.]

                                     -10-
<PAGE>

     [Any provision of the Indenture or of the Bonds of 200_, Series __ to the
contrary notwithstanding, so long as any such purchaser or its nominee shall be
a registered holder of any of the Bonds of 200_, Series __ or any such
institutional investor or its nominee shall be a registered holder of at least
__% of the aggregate principal amount of the Bonds of 200_, Series __, then
outstanding, in case of the redemption in part only of the Bonds of 200_, Series
__, the Trustee shall prorate the principal amount of such Bonds to be redeemed
among all such Bonds in proportion to the outstanding principal amount thereof
(treating as one Bond all of the Bonds held by registered holders who are not
such purchasers or institutional investors or who are such institutional
investors and hold less than __% of the aggregate principal amount of the Bonds
of 200_, Series __ then outstanding) and shall then designate for redemption
particular Bonds of such series or portions thereof (of $1,000 or any integral
multiple thereof) equal to the principal amount of Bonds to be redeemed so
prorated; provided, however, that in any such prorating pursuant to this
paragraph, the Trustee shall, according to such method as it shall deem proper
in its discretion, make such adjustments by increasing or decreasing by not more
than $1,000 the amount which would be allocable on the basis of exact proportion
to any one or more Bonds, as may be required to provide that the principal
amount so prorated shall be in each instance an integral multiple of $1,000; and
provided, further, that, in case of such a redemption pursuant to the final
sentence of the first paragraph of (S)1.04 hereof, the Trustee shall not prorate
the principal amount of Bonds of 200_, Series __ to be so redeemed among all
Bonds of such series but shall designate for redemption particular Bonds of such
series or portions thereof (of $1,000 or any integral multiple thereof) held by
any registered holder opting for such redemption in accordance with such
holder's instructions contained in the notice of redemption given by such holder
to the Trustee pursuant to the second paragraph of (S)1.04 hereof.]

     [In the case of any such purchaser or institutional investor which acquires
Bonds of 200_, Series __, with funds of a separate account, as such term is
defined in Section 3 of ERISA, or guaranteed fund, such holder shall, with
respect to each such separate account or guaranteed fund, be treated as a
separate registered holder of Bonds of 200_, Series __, for the purposes of the
Indenture.]

     [As hereinabove used, the term "Underwriting Agreement" shall mean the
[several] Underwriting Agreement[s], [each] dated ______, 200_, between the
Company and the purchaser[s] named in Schedule I thereto providing for the
original issuance and sale by the Company of the Bonds of 200_, Series __, true
and correct copies of such Underwriting Agreement, certified as such by the
Corporate Secretary or an Assistant Corporate Secretary of the Company, having
been lodged with the Trustee and being available for inspection at its principal
corporate trust office.]

     [No supplemental indenture entered into pursuant to (S)14.01 of the
Original Indenture shall amend or otherwise modify any provision contained in
this (S)1.05 without the consent of all the holders of Bonds of 200_, Series __
whose rights or obligations under this (S)1.05 would be affected by such
amendment or modification; nor shall any default by the Company in the
performance of its obligations under this (S)1.05, and the consequences thereof,
be waived pursuant to (S)7.24 of the Original Indenture, without like consent.]

     [(S)1.06. The Company covenants that on depositing or leaving with the
Trustee funds for the payment of the principal and premium (if any) and interest
on any Bonds of 200_, Series ___

                                     -11-
<PAGE>

when the same become due, either at maturity or otherwise, [or at the date fixed
for redemption thereof, pursuant to (S)3.03 or (S)10.03 of the Original
Indenture], it will make effective arrangements with the Trustee whereby such
funds will be immediately available for payment to the holder of such Bonds, and
prior to, or within 5 days after, so depositing or leaving such funds, will give
a notice, to be given as in the case of a notice of redemption of Bonds of 200_,
Series __, stating that such funds have been or will be deposited or left with
the Trustee and are or thereupon will be immediately so available for payment to
the holders of such Bonds and, as full compliance with this Section, shall
deliver to the Trustee proof satisfactory to the Trustee that such notice has
been given, or that arrangements have been made insuring that such notice will
be given, or a written instrument executed by the Company under its corporate
seal, and expressed to be irrevocable, authorizing the Trustee to give such
notice for and on behalf of the Company. In the case of a redemption of Bonds of
200_, Series __, such notice may be a part of any redemption notice published or
given prior to or within such 5-day period after any such deposit or leaving of
such funds.]

                                  ARTICLE 2.

                    PROVISIONS SUPPLEMENTING THE MORTGAGE.

     (S)2.01. [Insert applicable provisions.]]

                                  ARTICLE 3.

                      ADDITIONAL COVENANTS OF THE COMPANY.

     (S)3.01. [Insert applicable provisions.]]

                                 ARTICLE [4].

                           MISCELLANEOUS PROVISIONS.

     (S)[4].01. All references herein to any article, section or provision of
the Original Indenture or any supplemental indenture refer to such article,
section or provision as heretofore supplemented and modified and as hereby
further supplemented and modified, unless, in any case, the context otherwise
requires. Terms used but not defined herein are used as defined in the Mortgage.

     (S)[4].02. The recitals in this Eighty-Sixth Supplemental Indenture except
the recital of the succession of The Chase Manhattan Bank (National Association)
(formerly The Chase Manhattan Bank) to The Chase National Bank of the City of
New York are made by the Company only and not by the Trustee, and all of the
provisions contained in the Mortgage in respect of the rights, privileges,
immunities, powers and duties of the Trustee shall be applicable in respect of
the Bonds of 200_, Series __ and of this Eighty-Sixth Supplemental Indenture as
fully and with like effect as if set forth herein in full.

     (S)[4].03. As heretofore supplemented and modified and as supplemented
hereby, the Original Indenture is in all respects ratified and confirmed, and
the Original Indenture, as

                                     -12-
<PAGE>

heretofore supplemented and modified, and this Eighty-Sixth Supplemental
Indenture shall be read, taken and construed as one and the same instrument.

     (S)[4].04. Although this Eighty-Sixth Supplemental Indenture is dated for
convenience and for the purpose of reference _____ __, ____, the actual dates of
execution by the Company and by the Trustee are indicated by their respective
acknowledgements hereto annexed.

     (S)[4].05. In order to facilitate the recording or filing of this Eighty-
Sixth Supplemental Indenture, it may be simultaneously executed in several
counterparts, each of which shall be deemed to be an original and such
counterparts shall together constitute but one and the same instrument.

                                     -13-
<PAGE>

     IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf, and its corporate seal to be hereunto affixed and
attested, by its duly authorized officers, all as of the day and year first
above written.

VIRGINIA ELECTRIC AND POWER COMPANY,
[SEAL]

By
Vice President

Attest:

Assistant Corporate Secretary

THE CHASE MANHATTAN BANK
(NATIONAL ASSOCIATION),

[SEAL]

By
Vice President

Attest:

Assistant Secretary

                                     -14-
<PAGE>

COMMONWEALTH OF VIRGINIA:)
) SS.:
CITY OF RICHMOND:)

     I, __________, a notary public duly qualified, commissioned, sworn and
acting in and for the City and Commonwealth aforesaid, hereby certify that on
this _____ day of______, 200_:

     (Virginia)_____________ and _________________, whose names as Vice
(Maryland) President and Assistant Corporate Secretary of VIRGINIA ELECTRIC AND
POWER COMPANY, a corporation, are signed to the writing above, bearing date on
the _____ day of ______, 200_ have acknowledged the same before me in my City
aforesaid; and

     (West Virginia) ______________, who signed the writing above and hereto
annexed bearing date on the ____ day of ______, ____ for VIRGINIA ELECTRIC AND
POWER COMPANY, has in my said City, before me, acknowledged said writing to be
the act and deed of said corporation; and

     (North Carolina) ______________ personally came before me and acknowledged
that he is Assistant Corporate Secretary of VIRGINIA ELECTRIC AND POWER COMPANY,
a corporation, and that, by authority duly given and as the act of the
corporation, the foregoing instrument was signed in its name by a Vice
President, sealed with its corporate seal, and attested by himself as its
Assistant Corporate Secretary.

     My commission expires: ____________, ____

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this
____day of _________, ____.

Notary Public

[SEAL]

                                     -15-
<PAGE>

STATE OF NEW YORK:)
) SS.:
COUNTY OF NEW YORK:)

     I, _________, a notary public duly qualified, commissioned, sworn and
acting in and for the County and State aforesaid, hereby certify that on this
____ day of _______, ____:

     (Virginia) ___________ and ___________, whose names as Vice President and
(Maryland) Assistant Secretary of THE CHASE MANHATTAN BANK (NATIONAL
ASSOCIATION), a corporation, are signed to the writing above, bearing date on
the ____ day of _____ , ____ have acknowledged the same before me in my County
aforesaid; and

     (West Virginia)__________, who signed the writing above and hereto annexed
bearing date on the ____ day of _______, ____ for THE CHASE MANHATTAN BANK
(NATIONAL ASSOCIATION), has in my said County, before me, acknowledged said
writing to be the act and deed of said corporation; and

     (North Carolina) _____________ personally came before me and acknowledged
that he is Assistant Secretary of THE CHASE MANHATTAN BANK (NATIONAL
ASSOCIATION), a corporation, and that, by authority duly given and as the act of
the corporation, the foregoing instrument was signed in its name by a Vice
President, sealed with its corporate seal, and attested by himself as its
Assistant Secretary.

     My commission expires: _________, ____

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this
______ day of _________, ____.

Notary Public

[SEAL]

                                     -16-<PAGE>

Exhibit 4(x)
Form of Guarantee Agreement

                              GUARANTEE AGREEMENT

                         DATED AS OF __________, 2000

                                BY AND BETWEEN

                      VIRGINIA ELECTRIC AND POWER COMPANY
                                 AS GUARANTOR

                                      AND

                           THE CHASE MANHATTAN BANK,
                                  AS TRUSTEE
<PAGE>

                            CROSS REFERENCE TABLE*

SECTION OF TRUST                                                 SECTION OF
INDENTURE ACT OF                                                 GUARANTEE
1939, AS AMENDED                                                 AGREEMENT
----------------                                                 ---------
310(a).........................................................  4.1(a)
310(b).........................................................  2.8; 4.1(c)
310(c).........................................................  Inapplicable
311(a).........................................................  2.2(b)
311(b).........................................................  2.2(b)
311(c).........................................................  Inapplicable
312(a).........................................................  2.2(a); 2.9
312(b).........................................................  2.2(b); 2.9
312(c).........................................................  2.9
313(a).........................................................  2.3
313(b).........................................................  2.3
313(c).........................................................  2.3
313(d).........................................................  2.3
314(a).........................................................  2.4
314(b).........................................................  Inapplicable
314(c).........................................................  2.5
314(d).........................................................  Inapplicable
314(e).........................................................  2.5
314(f).........................................................  Inapplicable
315(a).........................................................  3.1(d); 3.2(a)
315(b).........................................................  2.7(a)
315(c).........................................................  3.1(c)
315(d).........................................................  3.1(d)
316(a).........................................................  2.6; 5.4(a)
316(b).........................................................  5.3
316(c).........................................................  Inapplicable
317(a).........................................................  2.10
317(b).........................................................  Inapplicable
318(a).........................................................  2.1(b)

--------
*     THIS CROSS-REFERENCE TABLE DOES NOT CONSTITUTE PART OF THE AGREEMENT AND
SHALL NOT HAVE ANY BEARING UPON THE INTERPRETATION OF ANY OF ITS TERMS OR
PROVISIONS.
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                            <C>
ARTICLE 1 INTERPRETATION AND DEFINITIONS....................................................................   2
      SECTION 1.1  Interpretation and Definitions...........................................................   2

ARTICLE 2 TRUST INDENTURE ACT...............................................................................   6
      SECTION 2.1  Trust Indenture Act; Application.........................................................   6
      SECTION 2.2  Lists of Holders of Securities...........................................................   6
      SECTION 2.3  Reports by Guarantee Trustee.............................................................   6
      SECTION 2.4  Periodic Reports to Guarantee Trustee....................................................   7
      SECTION 2.5  Evidence of Compliance with Conditions Precedent.........................................   7
      SECTION 2.6  Guarantee Event of Default; Waiver.......................................................   7
      SECTION 2.7  Guarantee Event of Default; Notice.......................................................   7
      SECTION 2.8  Conflicting Interests....................................................................   7
      SECTION 2.9  Disclosure of Information................................................................   8
      SECTION 2.10  Guarantee Trustee May File Proofs of Claim..............................................   8

ARTICLE 3 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE....................................................   8
      SECTION 3.1  Powers and Duties of Guarantee Trustee...................................................   8
      SECTION 3.2  Certain Rights of Guarantee Trustee......................................................  10
      SECTION 3.3  Not Responsible for Recitals or Issuance of Guarantee....................................  12

ARTICLE 4 GUARANTEE TRUSTEE.................................................................................  12
      SECTION 4.1  Guarantee Trustee; Eligibility...........................................................  12
      SECTION 4.2  Appointment, Removal and Resignation of Guarantee Trustee................................  12

ARTICLE 5 GUARANTEE.........................................................................................  13
      SECTION 5.1  Guarantee................................................................................  13
      SECTION 5.2  Waiver of Notice and Demand..............................................................  14
      SECTION 5.3  Obligations Not Affected.................................................................  14
      SECTION 5.4  Rights of Holders........................................................................  15
      SECTION 5.5  Guarantee of Payment.....................................................................  16
      SECTION 5.6  Subrogation..............................................................................  16
      SECTION 5.7  Independent Obligations..................................................................  16

ARTICLE 6 LIMITATION OF TRANSACTIONS; SUBORDINATION.........................................................  16
         SECTION 6.1  Limitation of Transactions............................................................  16
         SECTION 6.2  Ranking...............................................................................  17
         SECTION 6.3  Subordination of Common Securities....................................................  17
ARTICLE 7 TERMINATION.......................................................................................  17
         SECTION 7.1  Termination...........................................................................  17
</TABLE>
                                       i
<PAGE>

<TABLE>
<S>                                                                                                            <C>
ARTICLE 8 INDEMNIFICATION....................................................................................  18
         SECTION 8.1  Exculpation............................................................................  18
         SECTION 8.2  Compensation, Expenses and Indemnification.............................................  18

ARTICLE 9 MISCELLANEOUS......................................................................................  19
         SECTION 9.1  Successors and Assigns.................................................................  19
         SECTION 9.2  Amendments.............................................................................  19
         SECTION 9.3  Notices................................................................................  19
         SECTION 9.4  Benefit................................................................................  20
         SECTION 9.5  Governing Law..........................................................................  20
</TABLE>
                                      ii
<PAGE>

                              GUARANTEE AGREEMENT

     This GUARANTEE AGREEMENT (the "Guarantee"), dated as of _______,
____, is executed and delivered by VIRGINIA ELECTRIC AND POWER COMPANY, a
Virginia corporation (the "Guarantor"), and THE CHASE MANHATTAN BANK, a New York
banking corporation, as trustee (the "Guarantee Trustee"), for the benefit of
the Holders (as defined herein) from time to time of the Securities (as defined
herein) of VIRGINIA POWER CAPITAL TRUST II, a Delaware statutory business trust
(the "Trust").

                                   RECITALS

     WHEREAS, pursuant to the Trust Agreement (as defined herein), the Trust is
issuing on the date hereof $___,___,___ aggregate liquidation amount of trust
preferred securities, having a liquidation amount of $__ per security and
designated the "____% Trust Preferred Securities" [OR INSERT OTHER DESIGNATION]
of the Trust (the "Trust Preferred Securities") and $_________ aggregate
liquidation amount of common securities, having a liquidation amount of $__ per
security and designated the "____% Common Securities" of the Trust (the "Common
Securities" and, together with the Trust Preferred Securities, the "Initial
Securities");

     [WHEREAS, pursuant to the Amended and Restated Trust Agreement, the Trust
and Virginia Electric and Power Company, as Sponsor, have granted an Option (as
defined in Section 7.13(a) of the Trust Agreement) to certain underwriters or
initial purchasers, as the case may be, and such Option may be exercised on or
within [30] days after the initial Closing Date (as defined in the Trust
Agreement) such that an additional $_________ aggregate liquidation amount of
Trust Preferred Securities (the "Option Trust Preferred Securities") and an
additional $__________ aggregate liquidation amount of Common Securities
(together with the Initial Securities and the Option Trust Preferred Securities,
the "Securities") may be issued and sold pursuant to Sections 7.13(a) and (b) of
the Trust Agreement on such initial or second Closing Date, as the case may be;
PROVIDED that if the Option is not exercised by the underwriters or the initial
purchasers, as the case may be, then the defined term the "Securities" shall
mean only the Initial Securities;]

     WHEREAS, as incentive for the Holders to purchase the Securities, the
Guarantor desires irrevocably and unconditionally to agree, to the extent set
forth in this Guarantee, to pay to the Holders of the Securities the Guarantee
Payments (as defined herein) and to make certain other payments on the terms and
conditions set forth herein; and

     WHEREAS, if a Trust Enforcement Event (as defined herein) has occurred and
is continuing, the rights of holders of the Common Securities to receive
Guarantee Payments (as defined herein) under this Guarantee are subordinated to
the rights of

<PAGE>

Holders of Trust Preferred Securities to receive Guarantee Payments under this
Guarantee;

     NOW, THEREFORE, in consideration of the purchase by each Holder of
Securities, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of
the Holders.

                                   ARTICLE 1

                        INTERPRETATION AND DEFINITIONS

     SECTION 1.1 INTERPRETATION AND DEFINITIONS. In this Guarantee,
unless the context otherwise requires:

     (a)  capitalized terms used in this Guarantee but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.1;

     (b)  a term defined anywhere in this Guarantee has the same meaning
throughout;

     (c)  all references to "the Guarantee" or "this Guarantee" are to this
Guarantee as modified, supplemented or amended from time to time;

     (d)  all references in this Guarantee to Articles, Sections and Recitals
are to Articles, Sections and Recitals of this Guarantee, unless otherwise
specified;

     (e)  unless otherwise defined in this Guarantee, a term defined in the
Trust Indenture Act has the same meaning when used in this Guarantee;

     (f)  a reference to the singular includes the plural and vice versa and a
reference to any masculine form of a term shall include the feminine form of a
term, as applicable; and

     (g)  the following terms have the following meanings:

     "AFFILIATE" has the same meaning as given to that term in Rule 405 of the
Securities Act of 1933, as amended, or any successor rule thereunder.

     "BUSINESS DAY" has the meaning specified in the Trust Agreement.

     "COMMON SECURITIES" has the meaning specified in the Recitals hereto.

     "CORPORATE TRUST OFFICE" means the office of the Guarantee Trustee at
which at any particular time its corporate trust business shall be principally
administered,

                                       2
<PAGE>

which office at the date of execution of this Guarantee is located at 450 West
33rd Street, New York, New York 10001, Attention: Capital Markets Fiduciary
Services.

     "COVERED PERSON" means a Holder or beneficial owner of Securities.

     "GLOBAL SECURITY" means a fully registered, global Preferred Security
representing the Trust Preferred Securities.

     "GUARANTEE EVENT OF DEFAULT" means a default by the Guarantor on any of its
payment or other obligations under this Guarantee.

     "GUARANTEE PAYMENTS" means the following payments or distributions, without
duplication, with respect to the Securities, to the extent not paid by or on
behalf of the Trust: (i) any accumulated and unpaid Distributions (as defined in
the Trust Agreement) that are required to be paid on such Securities to the
extent the Trust has sufficient funds available therefor at the time, (ii) the
Redemption Price, including all accumulated and unpaid Distributions to the date
of redemption, with respect to any Securities called for redemption by the
Trust, to the extent the Trust shall have sufficient funds available therefor at
the time or (iii) upon a voluntary or involuntary dissolution, winding-up or
termination of the Trust (other than in connection with the distribution of
Junior Subordinated Notes to the Holders in exchange for Securities as provided
in the Trust Agreement), the lesser of (a) the aggregate of the liquidation
amount and all accumulated and unpaid Distributions on the Securities to the
date of payment, to the extent the Trust has sufficient funds available therefor
and (b) the amount of assets of the Trust remaining available for distribution
to Holders in liquidation of the Trust (in either case, the "Liquidation
Distribution").

     "GUARANTEE TRUSTEE" means The Chase Manhattan Bank, until a successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee.

     "HOLDER" means any holder of Securities, as registered on the books and
records of the Trust; provided, however, that, in determining whether the
Holders of the requisite percentage of Trust Preferred Securities have given any
request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor or any Affiliate of the Guarantor or any other obligor on the Trust
Preferred Securities; and provided further that in determining whether the
Holders of the requisite liquidation amount of Trust Preferred Securities have
voted on any matter provided for in this Guarantee, then for the purpose of such
determination only (and not for any other purpose hereunder), if the Trust
Preferred Securities remain in the form of one or more Global Certificates (as
defined in the Trust Agreement) and if the Depositary which is the holder of
such Global Securities has sent an omnibus proxy to the Trust assigning voting
rights to Depositary Participants (as defined in the Trust Agreement) to whose
accounts the Trust Preferred Securities are credited on the record date, the
term "Holders" shall mean such Depositary

                                       3
<PAGE>

Participants acting at the direction of the Beneficial Owners (as defined in the
Trust Agreement).

     "INDEMNIFIED PERSON" means the Guarantee Trustee, any Affiliate of the
Guarantee Trustee, or any officers, directors, shareholders, members, partners,
employees, representatives, nominees, custodians or agents of the Guarantee
Trustee.

     "INDENTURE" means the Subordinated Note Indenture, dated as of August 1,
1995, by and between  Virginia Electric and Power Company and. and The Chase
Manhattan Bank as Trustee, as supplemented and amended by a First Supplemental
Indenture dated as of August 1, 1995 and as further amended or supplemented by
any other indenture supplemental thereto, pursuant to which the Junior
Subordinated Notes are to be issued to the Property Trustee as defined in the
Trust Agreement.

     "JUNIOR SUBORDINATED Notes" means the series of junior subordinated notes
to be issued by Virginia Electric and Power Company designated the "____% Junior
Subordinated Notes due ____" held by the Property Trustee as defined in the
Trust Agreement.

     "LIST OF HOLDERS" has the meaning assigned to it in Section 2.2 hereof.

     "MAJORITY IN LIQUIDATION AMOUNT" means, except as provided in the terms of
the Trust Preferred Securities or by the Trust Indenture Act, Holder(s) of
outstanding Securities, voting together as a single class, or, as the context
may require, Holders of outstanding Trust Preferred Securities or Holders of
outstanding Common Securities, voting separately as a class, who are the record
owners of more than 50% of the aggregate liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accumulated and unpaid Distributions to the date upon which the voting
percentages are determined) of all outstanding Securities of the relevant class.
In determining whether the Holders of the requisite amount of Securities have
voted, Securities which are owned by the Guarantor or any Affiliate of the
Guarantor or any other obligor on the Securities shall be disregarded for the
purpose of any such determination.

     "OFFICERS' CERTIFICATE" means, with respect to any Person, a certificate
signed on behalf of such Person by two Authorized Officers (as defined in the
Trust Agreement) of such Person. Any Officers' Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Guarantee (other than pursuant to Section 314(a)(4) of the Trust Indenture Act)
shall include:

     (a)  a statement that each officer signing the Officers' Certificate has
read the covenant or condition and the definitions relating thereto;

     (b)  a brief statement of the nature and scope of the examination or
investigation undertaken by each officer on behalf of such Person in rendering
the Officers' Certificate;

                                       4
<PAGE>

     (c)  a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
on behalf of such Person to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

     (d)  a statement as to whether, in the opinion of each such officer acting
on behalf of such Person, such condition or covenant has been complied with.

     "PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "REDEMPTION PRICE" has the meaning specified in the Trust Agreement.

     "RESPONSIBLE OFFICER" means, with respect to the Guarantee Trustee, any
officer with direct responsibility for the administration of this Guarantee and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.

     "SECURITIES" has the meaning specified in the Recitals hereto.

     "SUCCESSOR GUARANTEE TRUSTEE" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.

     "TRUST AGREEMENT" means the Amended and Restated Trust Agreement, dated as
of __________ __, 200_, as amended, modified or supplemented from time to time,
among the trustees of the Trust named therein, the Guarantor, as sponsor, and
the Holders, from time to time, of undivided beneficial ownership interests in
the assets of the Trust.

     "TRUST ENFORCEMENT EVENT" in respect of the Securities means an Event of
Default (as defined in the Indenture) has occurred and is continuing in respect
of the Junior Subordinated Notes.

     "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.

     "TRUST PREFERRED SECURITIES" has the meaning specified in the Recitals
hereto, and shall include the Trust Preferred Securities constituting Initial
Securities and the Option Trust Preferred Securities.

                                       5
<PAGE>

                                   ARTICLE 2

                              TRUST INDENTURE ACT

                 SECTION 2.1 TRUST INDENTURE ACT; APPLICATION.

     (a)  This Guarantee is subject to the provisions of the Trust Indenture Act
that are required to be part of this Guarantee and shall, to the extent
applicable, be governed by such provisions.

     (b)  If and to the extent that any provision of this Guarantee limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

     SECTION 2.2 LISTS OF HOLDERS OF SECURITIES.

     (a)  The Guarantor shall provide the Guarantee Trustee (i) except while the
Trust Preferred Securities are represented by one or more Global Securities at
least one Business Day prior to the date for payment of Distributions, a list,
in such form as the Guarantee Trustee may reasonably require, of the names and
addresses of the Holders of the Securities ("List of Holders") as of the record
date relating to the payment of such Distributions, and (ii) at any other time,
within 30 days of receipt by the Guarantor of a written request from the
Guarantee Trustee for a List of Holders as of a date no more than 15 days before
such List of Holders is given to the Guarantee Trustee, excluding from any such
list names and addresses received by the Guarantee Trustee in its capacity as
Security Registrar; provided that the Guarantor shall not be obligated to
provide such List of Holders at any time the List of Holders does not differ
from the most recent List of Holders given to the Guarantee Trustee by the
Guarantor. The Guarantee Trustee shall preserve, in as current a form as is
reasonably practicable, all information contained in Lists of Holders given to
it, provided that the Guarantee Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

     (b)  The Guarantee Trustee shall comply with its obligations under Sections
311(a), 311(b) and 312(b) of the Trust Indenture Act.

     SECTION 2.3 REPORTS BY GUARANTEE TRUSTEE. Within 60 days after May 15 of
each year (commencing with the year of the first anniversary of the issuance of
the Securities), the Guarantee Trustee shall provide to the Holders of the
Securities such reports as are required by Section 313(a) of the Trust Indenture
Act (if any) in the form and in the manner provided by Section 313 of the Trust
Indenture Act. The Guarantee Trustee shall also comply with the other
requirements of Section 313 of the Trust Indenture Act.  The Guarantor shall
promptly notify the Guarantee Trustee when the Securities are listed on any
stock exchange.

                                       6
<PAGE>

     SECTION 2.4 PERIODIC REPORTS TO GUARANTEE TRUSTEE. The Guarantor shall
provide to the Guarantee Trustee such documents, reports and information as
required by Section 314(a) (if any) of the Trust Indenture Act and the
compliance certificate required by Section 314(a)(4) of the Trust Indenture Act
in the form, in the manner and at the times required by Section 314(a) of the
Trust Indenture Act, provided that such compliance certificate shall be
delivered on or before 120 days after the end of each calendar year of the
Guarantor.

     SECTION 2.5 EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT. The
Guarantor shall provide to the Guarantee Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Guarantee that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) may be given in the form of an Officers' Certificate.

     SECTION 2.6 GUARANTEE EVENT OF DEFAULT; WAIVER. The Holders of a Majority
in Liquidation Amount of the Securities may, by vote or written consent, on
behalf of the Holders of all of the Securities, waive any past Guarantee Event
of Default and its consequences. Upon such waiver, any such Guarantee Event of
Default shall cease to exist, and any Guarantee Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Guarantee, but no such waiver shall extend to any subsequent or other default or
Guarantee Event of Default or impair any right consequent thereon.

     SECTION 2.7 GUARANTEE EVENT OF DEFAULT; NOTICE.

     (a)  The Guarantee  Trustee shall, within 90 days after the occurrence of a
Guarantee Event of Default actually known to a Responsible Officer of the
Guarantee Trustee, transmit by mail, first class postage prepaid, to the Holders
of the Securities, notices of all such Guarantee Events of Default, unless such
defaults have been cured before the giving of such notice; provided, that the
Guarantee Trustee shall be protected in withholding such notice if and so long
as a Responsible Officer of the Guarantee Trustee in good faith determines that
the withholding of such notice is in the interests of the Holders of the
Securities.

     (b)  The Guarantee Trustee shall not be deemed to have knowledge of any
Guarantee Event of Default unless the Guarantee Trustee shall have received
written notice thereof from the Guarantor or a Holder or a Responsible Officer
of the Guarantee Trustee charged with the administration of this Guarantee shall
have obtained actual knowledge thereof.

     SECTION 2.8 CONFLICTING INTERESTS. The Trust Agreement, the Amended and
Restated Trust Agreement of Virginia Power Capital Trust I dated as of August
31, 1995, among the Guarantor, as Depositor, The Chase Manhattan Bank (formerly
known as Chemical Bank), as Property Trustee, Chase Manhattan Bank Delaware
(formerly known as Chemical Bank Delaware), as Delaware Trustee and the

                                       7
<PAGE>

Administrative Trustees named therein, and the Guarantee Agreement, relating to
Virginia Power Corporate Trust I dated as of August 31, 1995, between the
Guarantor and The Chase Manhattan Bank (formerly known as Chemical Bank), as
Guarantee Trustee shall be deemed to be specifically described in this Guarantee
for the purposes of clause (i) of the first proviso contained in Section 310(b)
of the Trust Indenture Act.

     SECTION 2.9  DISCLOSURE OF INFORMATION. The disclosure of information as
to the names and addresses of the Holders of the Securities in accordance with
Section 312 of the Trust Indenture Act, regardless of the source from which such
information was derived, shall not be deemed to be a violation of any existing
law, or any law hereafter enacted which does not specifically refer to Section
312 of the Trust Indenture Act, nor shall the Guarantee Trustee be held
accountable by reason of mailing any material pursuant to a request made under
Section 312(b) of the Trust Indenture Act.

     SECTION 2.10 GUARANTEE TRUSTEE MAY FILE PROOFS OF CLAIM. Upon the
occurrence of a Guarantee Event of Default, the Guarantee Trustee is hereby
authorized to (a) recover judgment, in its own name and as trustee of an express
trust, against the Guarantor for the whole amount of any Guarantee Payments
remaining unpaid and (b) file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have its claims and those of the
Holders of the Securities allowed in any judicial proceedings relative to the
Guarantor, its creditors or its property.

                                   ARTICLE 3

                         POWERS, DUTIES AND RIGHTS OF
                               GUARANTEE TRUSTEE

     SECTION 3.1 POWERS AND DUTIES OF GUARANTEE TRUSTEE.

     (a)  This Guarantee shall be held by the Guarantee Trustee on behalf of the
Trust for the benefit of the Holders of the Securities, and the Guarantee
Trustee shall not transfer this Guarantee to any Person except a Holder of
Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of
its appointment to act as Successor Guarantee Trustee. The right, title and
interest of the Guarantee Trustee in and to this Guarantee shall automatically
vest in any Successor Guarantee Trustee, and such vesting and succession of
title shall be effective whether or not conveyance documents have been executed
and delivered pursuant to the appointment of such Successor Guarantee Trustee.

     (b)  If a Guarantee Event of Default actually known to a Responsible
Officer of the Guarantee Trustee has occurred and is continuing, the Guarantee
Trustee shall be entitled to enforce this Guarantee for the benefit of the
Holders of the Securities.

     (c)  The Guarantee Trustee, before the occurrence of any Guarantee Event of
Default and after the curing of all Guarantee Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Guarantee,

                                       8
<PAGE>

and no implied covenants shall be read into this Guarantee against the Guarantee
Trustee. In case a Guarantee Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of
the rights and powers vested in it by this Guarantee, and use the same degree of
care and skill in its exercise thereof, as a prudent person would exercise or
use under the circumstances in the conduct of his or her own affairs.

     (d)  No provision of this Guarantee shall be construed to relieve the
Guarantee Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

          (i)   prior to the occurrence of any Guarantee Event of Default and
     after the curing or waiving of all such Guarantee Events of Default that
     may have occurred:

                (A)  the duties and obligations of the Guarantee Trustee shall
          be determined solely by the express provisions of this Guarantee, and
          the Guarantee Trustee shall not be liable except for the performance
          of such duties and obligations as are specifically set forth in this
          Guarantee, and no implied covenants or obligations shall be read into
          this Guarantee against the Guarantee Trustee; and

                (B)  in the absence of bad faith on the part of the Guarantee
          Trustee, the Guarantee Trustee may conclusively rely, as to the truth
          of the statements and the correctness of the opinions expressed
          therein, upon any certificates or opinions furnished to the Guarantee
          Trustee and conforming to the requirements of this Guarantee; but in
          the case of any such certificates or opinions that by any provision
          hereof are specifically required to be furnished to the Guarantee
          Trustee, the Guarantee Trustee shall be under a duty to examine the
          same to determine whether or not they conform to the requirements of
          this Guarantee;

          (ii)  the Guarantee Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer of the  Guarantee
     Trustee, unless it shall be proved that the Guarantee Trustee was negligent
     in ascertaining the pertinent facts upon which such judgment was made;

          (iii) the Guarantee Trustee shall not be liable with respect to any
     action taken or omitted to be taken by it in good faith in accordance with
     the direction of the Holders of not less than a Majority in Liquidation
     Amount of the Securities relating to the time, method and place of
     conducting any proceeding for any remedy available to the Guarantee
     Trustee, or exercising any trust or power conferred upon the Guarantee
     Trustee under this Guarantee; and

                                       9
<PAGE>

          (iv)  no provision of this Guarantee shall require the Guarantee
     Trustee to expend or risk its own funds or otherwise incur personal
     financial liability in the performance of any of its duties or in the
     exercise of any of its rights or powers, if the Guarantee Trustee shall
     have reasonable grounds for believing that the repayment of such funds or
     liability is not reasonably assured to it under the terms of this Guarantee
     or if the Guarantee Trustee shall have reasonable grounds for believing
     that an indemnity, reasonably satisfactory to the Guarantee Trustee,
     against such risk or liability is not reasonably assured to it under the
     terms of this Guarantee.

     SECTION 3.2 CERTAIN RIGHTS OF GUARANTEE TRUSTEE.

     (a) Subject to the provisions of Section 3.1:

          (i)   The Guarantee Trustee may conclusively rely, and shall be fully
     protected in acting or refraining from acting upon, any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document believed by it to be genuine and to
     have been signed, sent or presented by the proper party or parties;

          (ii)  Any direction or act of the Guarantor contemplated by this
     Guarantee shall be sufficiently evidenced by an Officers' Certificate;

          (iii) Whenever, in the administration of this Guarantee, the
     Guarantee Trustee shall deem it desirable that a matter be proved or
     established before taking, suffering or omitting any action hereunder, the
     Guarantee Trustee (unless other evidence is herein specifically prescribed)
     may, in the absence of bad faith on its part, request and conclusively rely
     upon an Officers' Certificate which, upon receipt of such request, shall be
     promptly delivered by the Guarantor;

          (iv)  The Guarantee Trustee shall have no duty to see to any
     recording, filing or registration or any instrument (or any rerecording,
     refiling or re-registration thereof);

          (v)   The Guarantee Trustee may consult with counsel, and the advice
     or opinion of such counsel with respect to legal matters shall be full and
     complete authorization and protection in respect of any action taken,
     suffered or omitted by it hereunder in good faith and in accordance with
     such advice or opinion. Such counsel may be counsel to the Guarantor or any
     of its Affiliates and may include any of its employees. The Guarantee
     Trustee shall have the right at any time to seek instructions concerning
     the administration of this Guarantee from any court of competent
     jurisdiction;

          (vi)  The Guarantee Trustee shall be under no obligation to exercise
     any of the rights or powers vested in it by this Guarantee at the request
     or direction of

                                      10
<PAGE>

     any Holder, unless such Holder shall have provided to the Guarantee Trustee
     such security and indemnity, reasonably satisfactory to the Guarantee
     Trustee, against the costs, expenses (including attorneys' fees and
     expenses and the expenses of the Guarantee Trustee's agents, nominees or
     custodians) and liabilities that might be incurred by it in complying with
     such request or direction, including such reasonable advances as may be
     requested by the Guarantee Trustee; provided, that nothing contained in
     this Section 3.2(a)(vi) shall be taken to relieve the Guarantee Trustee,
     upon the occurrence of a Guarantee Event of Default, of its obligation to
     exercise the rights and powers vested in it by this Guarantee in the manner
     provided by Section 3.1(c);

          (vii)  The Guarantee Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Guarantee Trustee, in its
     discretion, may make such further inquiry or investigation into such facts
     or matters as it may see fit;

          (viii) The Guarantee Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents, nominees, custodians or attorneys, and the Guarantee Trustee shall
     not be responsible for any misconduct or negligence on the part of any
     agent or attorney appointed with due care by it hereunder;

          (ix)   Any action taken by the Guarantee Trustee or its agents
     hereunder shall bind the Holders, and the signature of the Guarantee
     Trustee or its agents alone shall be sufficient and effective to perform
     any such action. No third party shall be required to inquire as to the
     authority of the Guarantee Trustee to so act or as to its compliance with
     any of the terms and provisions of this Guarantee, both of which shall be
     conclusively evidenced by the Guarantee Trustee's or its agent's taking
     such action; and

          (x)    Whenever in the administration of this Guarantee, the Guarantee
     Trustee shall deem it desirable to receive instructions with respect to
     enforcing any remedy or right or taking any other action hereunder, the
     Guarantee Trustee (A) may request written instructions from the Holders of
     a Majority in Liquidation Amount of the Securities, (B) may refrain from
     enforcing such remedy or right or taking such other action until such
     written instructions are received and (C) shall be protected in
     conclusively relying on or acting in accordance with such written
     instructions.

     (b)  No provision of this Guarantee shall be deemed to impose any duty or
obligation on the Guarantee Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it in any jurisdiction
in which it shall be illegal, or in which the Guarantee Trustee shall be
unqualified or incompetent to act in accordance with applicable law, to perform
any such act or acts or to exercise any such

                                      11
<PAGE>

right, power, duty or obligation. No permissive power or authority available to
the Guarantee Trustee shall be construed to be a duty.

     SECTION 3.3  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE.

     The recitals contained in this Guarantee shall be taken as the statements
of the Guarantor, and the Guarantee Trustee does not assume any responsibility
for their correctness. The Guarantee Trustee makes no representations as to the
validity or sufficiency of this Guarantee.

                                   ARTICLE 4

                               GUARANTEE TRUSTEE

     SECTION 4.1  GUARANTEE TRUSTEE; ELIGIBILITY.

     (a)  There shall be at all times a Guarantee Trustee which shall:

               (i)  not be an Affiliate of the Guarantor; and

               (ii) be a corporation organized and doing business under the laws
     of the United States of America or any state or territory thereof or of the
     District of Columbia, or a corporation or other Person permitted by the
     Securities and Exchange Commission to act as an institutional trustee under
     the Trust Indenture Act, authorized under such laws to exercise corporate
     trust powers, having a combined capital and surplus of at least 50 million
     U.S. dollars ($50,000,000), and subject to supervision or examination by
     federal, state, territorial or District of Columbia authority. If such
     corporation publishes reports of condition at least annually, pursuant to
     law or to the requirements of the supervising or examining authority
     referred to above, then, for the purposes of this Section 4.1(a)(ii), the
     combined capital and surplus of such corporation shall be deemed to be its
     combined capital and surplus as set forth in its most recent report of
     condition so published.

     (b)  If at any time the Guarantee Trustee shall cease to be eligible to so
act under Section 4.1(a), the Guarantee Trustee shall immediately resign in the
manner and with the effect set out in Section 4.2(c).

     (c)  If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act, subject to the penultimate
paragraph thereof.

                                      12
<PAGE>

     SECTION 4.2  APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEE.

     (a)  Subject to Section 4.2(b), unless a Guarantee Event of Default shall
have occurred and be continuing, the Guarantee Trustee may be appointed or
removed with or without cause at any time by the Guarantor.  If a Guarantee
Event of Default has occurred and is continuing, the Guarantee Trustee may be
appointed or removed by the Holders of a Majority in Liquidation Amount of the
Trust Preferred Securities.

     (b)  The Guarantee Trustee shall not be removed in accordance with
Section 4.2(a) until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor
Guarantee Trustee and delivered to the Guarantor.

     (c)  The Guarantee Trustee appointed to office shall hold such office
until a Successor Guarantee Trustee shall have been appointed or until its
removal or resignation. The Guarantee Trustee may resign from office (without
need for prior or subsequent accounting) by an instrument in writing executed by
the Guarantee Trustee and delivered to the Guarantor, which resignation shall
not take effect until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee
Trustee.

     (d)  If no Successor Guarantee Trustee shall have been appointed and
accepted appointment as provided in this Section 4.2 within 60 days after
delivery to the Guarantor of an instrument of removal or resignation, the
removed or resigning Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a Successor Guarantee Trustee.

     (e)  No Guarantee Trustee shall be liable for the acts or omissions to
act of any Successor Guarantee Trustee.

     (f)  Upon termination of this Guarantee or removal or resignation of the
Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to the
Guarantee Trustee all amounts owing for fees and reimbursement of expenses which
have accrued to the date of such termination, removal or resignation.

                                   ARTICLE 5

                                   GUARANTEE

     SECTION 5.1  GUARANTEE.

                                      13
<PAGE>

     The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by the Trust), as and when due, regardless of any defense, right of set-off or
counterclaim that the Trust may have or assert. The Guarantor's obligation to
make a Guarantee Payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holders or by causing the Trust to pay such
amounts to the Holders. Notwithstanding anything to the contrary herein, the
Guarantor retains all of its rights under the Indenture to (i) extend the
interest payment period on the Junior Subordinated Notes pursuant to Section 4.1
of the Second Supplemental Indenture thereto and the Guarantor shall not be
obligated hereunder to make any Guarantee Payments during any Extension Period
(as defined in the certificate evidencing the Junior Subordinated Notes) with
respect to the Distributions (as defined in the Trust Agreement) on the
Securities and (ii) change the maturity date of the Junior Subordinated Notes to
the extent permitted by the Indenture.

     SECTION 5.2  WAIVER OF NOTICE AND DEMAND.

     The Guarantor hereby waives notice of acceptance of this Guarantee and of
any liability to which it applies or may apply, presentment, demand for payment,
any right to require a proceeding first against the Trust or any other Person
before proceeding against the Guarantor, protest, notice of nonpayment, notice
of dishonor, notice of redemption and all other notices and demands.

     SECTION 5.3  OBLIGATIONS NOT AFFECTED.

     The obligations, covenants, agreements and duties of the Guarantor under
this Guarantee shall be absolute and unconditional and shall remain in full
force and effect until the entire liquidation amount of all outstanding
Securities shall have been paid and such obligation shall in no way be affected
or impaired by reason of the happening from time to time of any event, including
without limitation, the following, whether or not with notice to, or the consent
of, the Guarantor:

     (a)  The release or waiver, by operation of law or otherwise, of the
performance or observance by the Trust of any express or implied agreement,
covenant, term or condition relating to the Securities to be performed or
observed by the Trust;

     (b)  The extension of time for the payment by the Trust of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Securities or the extension of time
for the performance of any other obligation under, arising out of, or in
connection with the Securities (other than an extension of time for payment of
Distributions, Redemption Price, Liquidation Distribution or other sum payable
that results from the extension of any interest payment period on the Junior
Subordinated Notes or any change to the maturity date of the Junior Subordinated
Notes permitted by the Indenture);

     (c)  Any failure, omission, delay or lack of diligence on the part of the
Property Trustee or the Holders to enforce, assert or exercise any right,
privilege, power

                                      14
<PAGE>

or remedy conferred on the Property Trustee or the Holders pursuant to the terms
of the Securities, or any action on the part of the Trust granting indulgence or
extension of any kind;

     (d)  The voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Trust or any of the a sets of the
Trust;

     (e)  Any invalidity of, or defect or deficiency in, the Securities;

     (f)  The settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

     (g)  Any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

     There shall be no obligation of the Guarantee Trustee or the Holders to
give notice to, or obtain consent of the Guarantor or any other Person with
respect to the happening of any of the foregoing.

     No setoff, counterclaim, reduction or diminution of any obligation, or any
defense of any kind or nature that the Guarantor has or may have against any
Holder shall be available hereunder to the Guarantor against such Holder to
reduce the payments to it under this Guarantee.

     SECTION 5.4  RIGHTS OF HOLDERS.

     (a)  The Holders of at least a Majority in Liquidation Amount of the
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Guarantee Trustee in respect of this
Guarantee or to direct the exercise of any trust or power conferred upon the
Guarantee Trustee under this Guarantee, provided, that, subject to Section 3.1,
the Guarantee Trustee shall have the right to decline to follow any such
direction if the Guarantee Trustee shall determine that the action so directed
would be unjustly prejudicial to the Holders not taking part in such direction
or if the Guarantee Trustee being advised by counsel determines that the action
or proceeding so directed may not lawfully be taken or if the Guarantee Trustee
in good faith by its board of directors or trustees, executive committee, or a
trust committee of directors or trustees and/or Responsible Officers of the
Guarantee Trustee  shall determine that the action or proceedings so directed
would involve the Guarantee Trustee in personal liability.

     (b)  If the Guarantee Trustee fails to enforce this Guarantee, then any
Holder of Securities may, subject to the subordination provisions of Section
6.2, institute a legal

                                      15
<PAGE>

proceeding directly against the Guarantor to enforce the Guarantee Trustee's
rights under this Guarantee without first instituting a legal proceeding against
the Trust, the Guarantee Trustee or any other person or entity. In addition, if
the Guarantor has failed to make a Guarantee Payment, a Holder of Securities
may, subject to the subordination provisions of Section 6.2, directly institute
a proceeding against the Guarantor for enforcement of the Guarantee for such
payment to the Holder of the Securities of the principal of or interest on the
Junior Subordinated Notes on or after the respective due dates specified in the
Junior Subordinated Notes, and the amount of the payment will be based on the
Holder's pro rata share of the amount due and owing on all of the Securities.
The Guarantor hereby waives any right or remedy to require that any action on
this Guarantee be brought first against the Trust or any other person or entity
before proceeding directly against the Guarantor.

     SECTION 5.5  GUARANTEE OF PAYMENT.

     This Guarantee creates a guarantee of payment and not of collection.

     SECTION 5.6  SUBROGATION.

     The Guarantor shall be subrogated to all (if any) rights of the Holders of
Securities against the Trust in respect of any amounts paid to such Holders by
the Guarantor under this Guarantee; provided, however, that the Guarantor shall
not (except to the extent required by mandatory provisions of law) be entitled
to enforce or exercise any right that it may acquire by way of subrogation or
any indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee, if at the time of any such payment, any amounts
are due and unpaid under this Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the
Guarantee Trustee for the benefit of the Holders.

     SECTION 5.7  INDEPENDENT OBLIGATIONS.

     The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Trust with respect to the Securities, and that the
Guarantor shall be liable as principal and as debtor hereunder to make Guarantee
Payments pursuant to the terms of this Guarantee notwithstanding the occurrence
of any event referred to in subsections 5.3(a) through 5.3(g), inclusive,
hereof.

                                   ARTICLE 6

                   LIMITATION OF TRANSACTIONS; SUBORDINATION

     SECTION 6.1  LIMITATION OF TRANSACTIONS.

                                      16
<PAGE>

     So long as any Securities remain outstanding, if (i) there shall have
occurred an event of default under the Indenture with respect to the Junior
Subordinated Notes, (ii) there shall be a Guarantee Event of Default or (iii)
the Guarantor shall have given notice of its election of an Extension Period as
provided in the certificate evidencing the Junior Subordinated Notes and shall
not have rescinded such notice, or such Extension Period or any extension
thereof shall be continuing, then the Guarantor shall not, and shall not permit
any subsidiary of the Guarantor, to (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Guarantor's capital stock or (y) make any payment of
principal, interest or premium, if any, on or repay, repurchase or redeem any
debt securities of the Guarantor that rank on a parity with or junior in
interest to the Junior Subordinated Notes or make any guarantee payments with
respect to any guarantee by the Guarantor of the debt securities of any
subsidiary of the Guarantor if such guarantee ranks on a parity with or junior
in interest to the Junior Subordinated Notes (other than (a) dividends or
distributions in common stock of the Guarantor, (b) any declaration of a
dividend in connection with the implementation of a shareholders' rights plan,
or the issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (c) payments under this
Guarantee, and (d) purchases of common stock related to the issuance  of common
stock or rights under any of the Guarantor's benefit plans).

     SECTION 6.2  RANKING.

     This Guarantee will constitute an unsecured obligation of the Guarantor and
will rank subordinate and junior in right of payment to all Senior Indebtedness
of the Company (as defined in the Indenture) of the Guarantor in the same manner
and to the same extent as set forth in Article Thirteen of the Indenture.

     SECTION 6.3  SUBORDINATION OF COMMON SECURITIES.

     If a Trust Enforcement Event has occurred and is continuing under the Trust
Agreement, the rights of the holders of the Common Securities to receive
Guarantee Payments hereunder shall be subordinated to the rights of the Holders
of the Trust Preferred Securities to receive Guarantee Payments under this
Guarantee.

                                   ARTICLE 7

                                  TERMINATION

     SECTION 7.1  TERMINATION.

     This Guarantee shall terminate upon (i) full payment of the Redemption
Price of all Securities, (ii) distribution of the Junior Subordinated Notes to
the Holders of all the Securities or (iii) full payment of the amounts payable
in accordance with the Trust Agreement upon liquidation of the Trust.
Notwithstanding the foregoing, this Guarantee

                                      17
<PAGE>

will continue to be effective or will be reinstated, as the case may be, if at
any time any Holder of Securities must restore payment of any sums paid under
the Securities or under this Guarantee.

                                      18
<PAGE>

                                   ARTICLE 8

                                INDEMNIFICATION

     SECTION 8.1  EXCULPATION.

     (a)  No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Covered Person for any loss,
damage, liability, expense or claim incurred by reason of any act or omission
performed or omitted by such Indemnified Person in good faith in accordance with
this Guarantee and in a manner that such Indemnified Person reasonably believed
to be within the scope of the authority conferred on such Indemnified Person by
this Guarantee or by law, except that an Indemnified Person shall be liable for
any such loss, damage or claim incurred by reason of such Indemnified Person's
negligence or willful misconduct with respect to such acts or omissions.

     (b)  An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Securities might properly be paid.

     SECTION 8.2  COMPENSATION, EXPENSES AND INDEMNIFICATION.

     (a)  The Guarantor agrees to pay to the Guarantee Trustee from time to time
reasonable compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) and to reimburse the Guarantee
Trustee upon request for all reasonable expenses, disbursements and advances
(including the reasonable fees and expenses of its attorneys and agents)
incurred or made by the Guarantee Trustee in accordance with any provision of
this Guarantee.

     (b)  The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against any loss, liability or expense
incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending itself against, or investigating, any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder.

     (c)  The obligations of the Guarantor under this Section 8.2 shall survive
the termination of this Guarantee.

                                      19
<PAGE>

                                   ARTICLE 9

                                 MISCELLANEOUS

     SECTION 9.1  SUCCESSORS AND ASSIGNS.

     All guarantees and agreements contained in this Guarantee shall bind the
successors, assigns, receivers, trustees and representatives of the Guarantor
and shall inure to the benefit of the Holders of the Securities then
outstanding. Except in connection with a consolidation, merger, sale or
conveyance involving the Guarantor that is permitted by Article Eight of the
Indenture and pursuant to which the successor or assignee agrees in writing to
perform the Guarantor's obligations hereunder, the Guarantor shall not assign
its obligations hereunder.

     SECTION 9.2  AMENDMENTS.

     Except with respect to any changes that do not materially adversely affect
the rights of the Holders (in which case no consent of the Holders will be
required), this Guarantee may not be amended without the prior approval of the
Holders of at least a Majority in Liquidation Amount of the Securities. The
provisions of Section 11.2 of the Trust Agreement with respect to meetings of,
and action by written consent of, the Holders of the Securities apply to the
giving of such approval.

     SECTION 9.3  NOTICES.

     All notices provided for in this Guarantee shall be in writing, duly signed
by the party giving such notice, and shall be delivered by hand, telecopied or
mailed by registered or certified mail, as follows:

     (a)  If given to the Guarantee Trustee, at the Guarantee Trustee's mailing
address set forth below (or such other address as the Guarantee Trustee may give
notice of to the Guarantor and the Holders of the Securities):

          The Chase Manhattan Bank
          450 West 33rd Street
          New York, New York 10001
          Attention: Capital Markets Fiduciary Services
          Fax: (212) 946-8159/60

     (b)  If given to the Guarantor, at the Guarantor's mailing addresses set
forth below (or such other address as the Guarantor may give notice of to the
Guarantee Trustee and the Holders of the Securities):

                                      20
<PAGE>

               Virginia Electric and Power Company
               One James River Plaza
               701 East Cary Street
               Richmond, VA 23219

     (c)  If given to any Holder of Securities, at the address set forth on
the books and records of the Trust.

     All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

     SECTION 9.4  BENEFIT.

     This Guarantee is solely for the benefit of the Holders of the Securities
and, subject to Section 3.1(a), is not separately transferable from the
Securities.

     SECTION 9.5 GOVERNING LAW.

     THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT
OF LAWS PRINCIPLES.

                                      21
<PAGE>

     IN WITNESS WHEREOF, this Guarantee is executed as of the day and year first
above written.

                                   VIRGINIA ELECTRIC POWER COMPANY
                                   as Guarantor

                                   By: _____________________________________
                                   Name:
                                   Title:

                                   THE CHASE MANHATTAN BANK,
                                   as Guarantee Trustee

                                   By: _____________________________________
                                   Name:
                                   Title:

                                      22

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