Document:

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                                                                     EXHIBIT 4.6

                         SECOND SUPPLEMENTAL INDENTURE

                                    BETWEEN

                           DOMINION RESOURCES, INC.

                                      AND

                           THE CHASE MANHATTAN BANK

                          DATED AS OF JANUARY 1, 2001

                     8.4% JUNIOR SUBORDINATED DEBENTURES,

                             DUE JANUARY 15, 2031
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                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                   <C>
ARTICLE I DEFINITIONS............................................................................................      2
   1.1    Definition of Terms....................................................................................      2

ARTICLE II GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED DEBENTURES....................................      5
   2.1    Designation and Principal Amount.......................................................................      5
   2.2    Stated Maturity........................................................................................      6
   2.3    Form and Payment; Minimum Transfer Restriction.........................................................      6
   2.4    Exchange and Registration of Transfer of Junior Subordinated Debentures; Restrictions on Transfers;
   Depositary....................................................................................................      6
   2.5    Interest...............................................................................................      8
   2.6    Direct Action..........................................................................................      8

ARTICLE III REDEMPTION OF THE JUNIOR SUBORDINATED DEBENTURES.....................................................      9
   3.1    Tax Event or Investment Company Event Redemption.......................................................      9
   3.2    Optional Redemption by Company.........................................................................      9
   3.3    Notice of Redemption...................................................................................      9

ARTICLE IV EXTENSION OF INTEREST PAYMENT PERIOD..................................................................      9
   4.1    Extension of Interest Payment Period...................................................................      9
   4.2    Notice of Extension....................................................................................     10

ARTICLE V EXPENSES...............................................................................................     11
   5.1    Payment of Expenses....................................................................................     11
   5.2    Payment Upon Resignation or Removal....................................................................     11

ARTICLE VI FORM OF JUNIOR SUBORDINATED DEBENTURE.................................................................     12
   6.1    Form of Junior Subordinated Debenture..................................................................     12

ARTICLE VII ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBENTURES.....................................................     12
   7.1    Original Issue of Junior Subordinated Debentures.......................................................     12

ARTICLE VIII MISCELLANEOUS.......................................................................................     12
   8.1    Ratification of Indenture; Second Supplemental Indenture Controls......................................     12
   8.2    Trustee Not Responsible for Recitals...................................................................     12
   8.3    Governing Law..........................................................................................     13
   8.4    Separability...........................................................................................     13
   8.5    Counterparts...........................................................................................     13
</TABLE>

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EXHIBIT A.................................................................   1

                                      iii
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                         SECOND SUPPLEMENTAL INDENTURE

     THIS SECOND SUPPLEMENTAL INDENTURE, dated as of January 1, 2001 (the
"Second Supplemental Indenture"), is between DOMINION RESOURCES, INC., a
Virginia corporation (the "Company"), and THE CHASE MANHATTAN BANK, as trustee
(the "Trustee") under the Indenture, dated as of December 1, 1997, between the
Company and the Trustee (the "Base Indenture" and, together with the First
Supplemental Indenture, dated as of December 1, 1997, and this Second
Supplemental Indenture, the "Indenture").

     WHEREAS, the Company executed and delivered the Base Indenture to the
Trustee to provide for the future issuance of the Company's unsecured junior
subordinated debentures (the "Debentures") to be issued from time to time in one
or more series as might be determined by the Company under the Indenture, in an
unlimited aggregate principal amount which may be authenticated and delivered as
provided in the Base Indenture;

     WHEREAS, pursuant to the terms of the Base Indenture, the Company desires
to provide for the establishment of a series of its Debentures, to be known as
its 8.4% Junior Subordinated Debentures due January 15, 2031 (the "Junior
Subordinated Debentures"), the form and substance of such Junior Subordinated
Debentures and the terms, provisions and conditions thereof to be set forth as
provided in the Base Indenture and this Second Supplemental Indenture;

     WHEREAS, the Company desires that this series of Junior Subordinated
Debentures be originally issued on January 12, 2001 pursuant to the Indenture
and sold pursuant to the Underwriting Agreement (as defined below);

     WHEREAS, Dominion Resources Capital Trust III, a Delaware statutory
business trust (the "Trust"), has offered to the purchasers (the "Underwriters")
named in Schedule I to the Underwriting Agreement, dated January 9, 2001 (the
"Underwriting Agreement"), among the Underwriters, the Trust and the Company
$250,000,000 aggregate liquidation amount of its 8.4% Capital Securities (the
"Capital Securities"), representing undivided beneficial interests in the assets
of the Trust and proposes to invest the proceeds from the sale of the Capital
Securities, together with the proceeds of the sale by the Trust to the Company
of $7,732,000 aggregate liquidation amount of its Common Securities, in
$257,732,000 aggregate principal amount of the Junior Subordinated Debentures;
and

     WHEREAS, the Company has requested that the Trustee execute and deliver
this Second Supplemental Indenture and all requirements necessary to make this
Second Supplemental Indenture a valid instrument in accordance with its terms,
and to make the Junior Subordinated Debentures, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations of the
Company, have been performed, and the execution and delivery of this Second
Supplemental Indenture has been duly authorized in all respects;

     NOW, THEREFORE, in consideration of the purchase and acceptance of the
Junior Subordinated Debentures by the Trust, and for the purpose of setting
forth, as provided in the Base Indenture, the form and substance of the Junior
Subordinated Debentures and the terms,
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provisions and conditions thereof, the Company covenants and agrees with the
Trustee as follows:

                                   ARTICLE I
                                  DEFINITIONS

     1.1  Definition of Terms.

For all purposes of this Second Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

          (a) the terms not otherwise defined herein which are defined in the
Base Indenture have the same meanings when used in this Second Supplemental
Indenture;

          (b) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;

          (c) all other terms used herein which are defined in the Trust
Indenture Act of 1939, as amended, whether directly or by reference therein,
have the meanings assigned to them therein;

          (d) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles in the United States of America, and, except as otherwise herein
expressly provided, the term "generally accepted accounting principles" with
respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted in the United States of America
at the date of such computation; provided, that when two or more principles are
so generally accepted, it shall mean that set of principles consistent with
those in use by the Company;

          (e) a reference to a Section or Article is to a Section or Article of
this Second Supplemental Indenture unless otherwise stated;

          (f) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Second Supplemental Indenture as a whole and not to
any particular Article, Section or other subdivision;

          (g) headings are for convenience of reference only and do not affect
interpretation;

          (h) the term "Capital Securities" as used herein means "Preferred
Securities" as such term is used in the Base Indenture; and

          (i) the following terms have the meanings given to them in the Trust
Agreement: (i) Administrative Trustee, (ii) Business Day, (iii) Closing Date,
(iv) Delaware Trustee, (v) Distributions, (vi) Property Trustee, and
(vii) Common Security.

          "Additional Interest" has the meaning specified in Section 2.5.

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          "Capital Securities" has the meaning specified in the fourth recital
to this Second Supplemental Indenture.

          "Comparable Treasury Issue" means, with respect to any redemption
date, the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the time period from the redemption date to
January 15, 2031 that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to such time period. If no United States
Treasury security has a maturity which is within a period from three months
before to three months after January 15, 2031, the two most closely
corresponding United States Treasury securities shall be used as the Comparable
Treasury Issue, and the Treasury Rate shall be interpolated or extrapolated on a
straight-line basis, rounding to the nearest month using such securities.

          "Comparable Treasury Price" means, with respect to any redemption
date, (A) the average of up to five Reference Treasury Dealer Quotations for
such redemption date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (B) if the Trustee obtains fewer than five such
Reference Treasury Dealer Quotations, the average of all such Quotations.

          "Coupon Rate" has the meaning specified in Section 2.5(a).

          "Debentures" has the meaning specified in the first recital to this
Second Supplemental Indenture.

          "Definitive Debenture Certificates" means Debentures issued in
definitive, fully registered form.

          "Extension Period" has the meaning specified in Section 4.1.

          "Global Debenture" has the meaning specified in Section 2.4(a).

          "Interest Payment Date" has the meaning specified in Section 2.5.

          "Investment Company Event" means the receipt by the Trust of an
opinion of a nationally recognized independent counsel (an "Investment Company
Act Opinion"), to the effect that, as a result of the occurrence of a change in
law or regulation or a written change in interpretation or application of law or
regulation by any legislative body, court, governmental agency or regulatory
authority (a "Change in 1940 Act Law"), there is more than an insubstantial risk
that the Trust is or will be considered an "investment company" that is required
to be registered under the 1940 Act, which Change in 1940 Act Law becomes
effective on or after the initial Closing Date.

          "Junior Subordinated Debentures" has the meaning specified in the
second recital to this Second Supplemental Indenture.

          "Liquidation Amount" means the stated amount of $1,000 per Capital
Security.

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          "Optional Redemption Make-Whole Amount" means an amount equal to the
greater of (i) 100% of the principal amount of the Junior Subordinated
Debentures or (ii) as determined by a Quotation Agent as of the redemption date,
the sum of the present value of the scheduled payments of principal and interest
on the Junior Subordinated Debentures from the redemption date to January 15,
2031 discounted to the redemption date on a semi-annual basis (assuming a 360-
day year consisting of twelve 30-day months) at a discount rate equal to the
Treasury Rate plus 50 basis points.

          "Quotation Agent" means either Merrill Lynch, Pierce, Fenner & Smith
Incorporated or Morgan Stanley & Co. Incorporated and their respective
successors as selected by the Company; provided, however, that if both of the
foregoing shall cease to be a primary United States Government securities dealer
in New York City (a "Primary Treasury Dealer"), the Company shall substitute
therefor another Primary Treasury Dealer.

          "Record Date" has the meaning specified in Section 2.5(a).

          "Reference Treasury Dealer" means (i) both Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated and their
respective successors; provided, however, that if either of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer; and (ii) up to three other Primary Treasury
Dealers selected by the Trustee after consultation with the Company.

          "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.

          "Special Event Redemption Make-Whole Amount" means an amount equal to
the greater of (i) 100% of the principal amount of the Junior Subordinated
Debentures or (ii) as determined by a Quotation Agent as of the redemption date,
the sum of the present value of scheduled payments of principal and interest on
the Junior Subordinated Debentures from the redemption date to January 15, 2031,
discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at a discount rate equal to (a) the
Treasury Rate plus 225 basis points before January 15, 2002, and (b) the
Treasury Rate plus 50 basis points if on or after such date.

          "Special Event Redemption Price" has the meaning specified in Section
3.1.

          "Tax Event" means the receipt by the Trust of an opinion of
independent tax counsel experienced in such matters ("Tax Event Opinion"), to
the effect that, as a result of (a) any amendment to, change in or announced
prospective change in the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority thereof or therein, or
(b) any official administrative written decision, pronouncement or action, or
judicial decision interpreting or applying such laws or regulations, which
amendment or change is effective or which proposed change, pronouncement,
decision or action is announced on or after the Closing Date, there is more than
an insubstantial risk that (i) the Trust is, or will be within 90

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days of the date of such opinion, subject to the United States federal income
tax with respect to income received or accrued on the Junior Subordinated
Debentures, (ii) interest payable to the Trust by the Company on the Junior
Subordinated Debentures is not, or within 90 days of the date of such opinion
will not be, deductible, in whole or in part, by the Company for United States
federal income tax purposes, or (iii) the Trust is, or will be within 90 days of
the date of such opinion, subject to a material amount of other taxes, duties or
other governmental charges.

          "Treasury Rate" means (i) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated "H.15(519)" or any successor
publication which is published weekly by the Federal Reserve and which
establishes yields on actively traded United States Treasury securities adjusted
to constant maturity under the caption "Treasury Constant Maturities," for the
maturity corresponding to the time period from the redemption date to January
15, 2031, (if no maturity is within three months before or after such time
period, yields for the two published maturities most closely corresponding to
such time period shall be determined and the Treasury Rate shall be interpolated
or extrapolated from such yields on a straight-line basis, rounding to the
nearest month) or (ii) if such release (or any successor release) is not
published during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date. The Treasury
Rate shall be calculated on the third Business Day preceding the redemption
date.

          "Trust" has the meaning specified in the fourth recital to this Second
Supplemental Indenture.

          "Trust Agreement" means the Amended and Restated Trust Agreement of
Dominion Resources Capital Trust III dated as of January 1, 2001 among the
Company, as Sponsor, The Chase Manhattan Bank, as Property Trustee, Chase
Manhattan Bank USA, National Association, as Delaware Trustee, the
Administrative Trustees named therein and the holders, from time to time, of
undivided beneficial interests in the assets of the Trust.

          "Trust Securities" means the Common Securities and the Capital
Securities.

          "Underwriters" has the meaning specified in the fourth recital to this
Second Supplemental Indenture.

          "Underwriting Agreement" has the meaning specified in the fourth
recital to this Second Supplemental Indenture.

                                  ARTICLE II
      GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED DEBENTURES

     2.1  Designation and Principal Amount.

There is hereby authorized one series of Debentures, to be designated the "8.4%
Junior Subordinated Debentures due January 15, 2031," in the initial aggregate
principal amount of $257,732,000, which amount shall be as set forth in

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any written orders of the Company for the authentication and delivery of Junior
Subordinated Debentures pursuant to Section 2.1 of the Base Indenture and
Section 7.1 hereof. Additional Junior Subordinated Debentures without limitation
as to amount, and without the consent of the holders of the then Outstanding
Junior Subordinated Debentures, may also be authenticated and delivered in the
manner provided in Section 2.1 of the Base Indenture. Any such additional Junior
Subordinated Debentures will have the same Stated Maturity and other terms as
those initially issued.

     2.2  Stated Maturity.  The Stated Maturity of the Junior Subordinated
Debentures is January 15, 2031, which may not be shortened or extended.

     2.3  Form and Payment; Minimum Transfer Restriction.

          (a) The Junior Subordinated Debentures shall be issued to the Property
Trustee in fully registered definitive form without coupons in minimum
denominations of $1,000 and integral multiples of $1,000 in excess thereof.
Principal and interest on the Junior Subordinated Debentures issued in
definitive form will be payable, the transfer of such Junior Subordinated
Debentures will be registrable and such Junior Subordinated Debentures will be
exchangeable for Junior Subordinated Debentures bearing identical terms and
provisions at the principal office of the Trustee; provided, however, that
payment of interest may be made at the option of the Company by check mailed to
the registered holder at such address as shall appear in the Register.
Notwithstanding the foregoing, so long as the registered holder of any Junior
Subordinated Debentures is the Property Trustee, the payment of the principal of
and interest (including Additional Interest and Additional Tax Sums, if any) on
such Junior Subordinated Debentures held by the Property Trustee will be made at
such place, or by wire transfer of immediately available funds to such account,
as may be designated by the Property Trustee.  The Register for the Junior
Subordinated Debentures shall be kept at the principal office of the Trustee and
the Trustee is hereby appointed registrar for the Junior Subordinated
Debentures.

          (b) The Junior Subordinated Debentures may be transferred or exchanged
only in minimum denominations of $1,000 and integral multiples of $1,000 in
excess thereof, and any attempted transfer, sale or other disposition of Junior
Subordinated Debentures in a denomination of less than $1,000 shall be deemed to
be void and of no legal effect whatsoever.  Any such transferee shall be deemed
not to be the holder of such Junior Subordinated Debentures for any purpose,
including but not limited to the receipt of payments in respect of such Junior
Subordinated Debentures and such transferee shall be deemed to have no interest
whatsoever in such Junior Subordinated Debentures.

     2.4  Exchange and Registration of Transfer of Junior Subordinated
Debentures; Restrictions on Transfers; Depositary. If distributed to holders of
Capital Securities pursuant to Section 8.2 of the Trust Agreement, the Junior
Subordinated Debentures will be issued to such holders in the same form as the
Capital Securities that such Junior Subordinated Debentures replace in
accordance with the following procedures:

          (a) So long as Junior Subordinated Debentures are eligible for book-
entry settlement with the Depositary, or unless required by law, all Junior
Subordinated Debentures that are so eligible will be represented by one or more
Junior Subordinated Debentures in global

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form (a "Global Debenture") registered in the name of the Depositary or the
nominee of the Depositary. Except as provided in Section 2.4(c) below,
beneficial owners of a Global Debenture shall not be entitled to have Definitive
Debenture Certificates registered in their names, will not receive or be
entitled to receive physical delivery of Definitive Debenture Certificates and
will not be registered holders of such Global Debentures.

          (b) The transfer and exchange of beneficial interests in Global
Debentures shall be effected through the Depositary in accordance with the
Indenture and the procedures and standing instructions of the Depositary and the
Trustee shall make appropriate endorsements to reflect increases or decreases in
principal amounts of such Global Debentures.

          (c) Notwithstanding any other provisions of the Indenture (other than
the provisions set forth in this Section 2.4(c)), a Global Debenture may not be
exchanged in whole or in part for Junior Subordinated Debentures registered, and
no transfer of a Global Debenture may be registered, in the name of any person
other than the Depositary or a nominee thereof unless (i) such Depositary (A)
has notified the Company that it is unwilling or unable to continue as
Depositary for such Global Debenture or (B) has ceased to be a clearing agency
registered as such under the Exchange Act and no successor Depositary has been
appointed by the Company within 90 days after its receipt of such notice or its
becoming aware of such ineligibility, (ii) there shall have occurred and be
continuing an Event of Default, or any event which after notice or lapse of time
or both would be an Event of Default under the Indenture, with respect to such
Debenture, or (iii) the Company, in its sole discretion, instructs the Trustee
to exchange such Global Debenture for a Junior Subordinated Debenture that is
not a Global Debenture (in which case such exchange shall be effected by the
Trustee).

          The Depositary shall be a clearing agency registered under the
Exchange Act.  The Company initially appoints The Depository Trust Company to
act as Depositary with respect to the Global Debentures.  Initially, any Global
Debentures shall be registered in the name of Cede & Co., as the nominee of the
Depositary, and deposited with the Trustee as custodian for Cede & Co.

          Definitive Junior Subordinated Debentures issued in exchange for all
or a part of a Global Debenture pursuant to this Section 2.4(c) shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee.  Upon execution and authentication, the Trustee
shall deliver such definitive Junior Subordinated Debentures to the person in
whose names such definitive Junior Subordinated Debentures are so registered.

          So long as Junior Subordinated Debentures are represented by one or
more Global Debentures, (i) the registrar for the Junior Subordinated Debentures
and the Trustee shall be entitled to deal with the clearing agency for all
purposes of the Indenture relating to such Global Debentures as the sole holder
of the Junior Subordinated Debentures evidenced by such Global Debentures and
shall have no obligations to the holders of beneficial interests in such Global
Debentures; and (ii) the rights of the holders of beneficial interests in such
Global Debentures shall be exercised only through the clearing agency and shall
be limited to those established by law and agreements between such holders and
the clearing agency and/or the participants in the clearing agency.

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          At such time as all interests in a Global Debenture have been paid,
redeemed, exchanged, repurchased or canceled, such Global Debenture shall be,
upon receipt thereof, canceled by the Trustee in accordance with standing
procedures and instructions of the Depositary. At any time prior to such
cancellation, if any interest in a Global Debenture is exchanged for definitive
Junior Subordinated Debentures, redeemed by the Company pursuant to Article 3 or
canceled, or transferred for part of a Global Debenture, the principal amount of
such Global Debenture shall, in accordance with the standing procedures and
instructions of the Depositary be reduced or increased, as the case may be, and
an endorsement shall be made on such Global Debenture by, or at the direction
of, the Trustee to reflect such reduction or increase.

     2.5  Interest.

          (a) Each Junior Subordinated Debenture will bear interest at the rate
of 8.4% per annum (the "Coupon Rate") from January 12, 2001 until the principal
thereof becomes due and payable, and will bear interest on any overdue principal
at the Coupon Rate and (to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the
Coupon Rate ("Additional Interest"), compounded semi-annually, payable (subject
to the provisions of Article 4) semi-annually in arrears on the 15th day of
January and July of each year (each, an "Interest Payment Date"), commencing on
July 15, 2001 to the Person in whose name such Junior Subordinated Debenture is
registered, subject to certain exceptions, at the close of business on the
Record Date next preceding such Interest Payment Date.  The "Record Date" for
payment of interest will be the Business Day next preceding the Interest Payment
Date, unless such Junior Subordinated Debenture is registered to a holder other
than the Property Trustee or a nominee of the Depositary, in which case the
Record Date for payment of interest will be the fifteenth calendar day preceding
the applicable Interest Payment Date, whether or not a Business Day. Until
liquidation, if any, of the Trust, each Junior Subordinated Debenture will be
held in the name of the Property Trustee in trust for the benefit of the holders
of the Trust Securities.

          (b) The amount of interest payable for any period will be computed on
the basis of a 360-day year of twelve 30-day months.  In the event that any date
on which interest is payable on the Junior Subordinated Debentures is not a
Business Day, then payment of interest payable on such date will be made on the
next succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the next
preceding day which is a Business Day, in each case with the same force and
effect as if made on the date such payment was originally payable.

          (c) The Company will also pay any Additional Tax Sums as additional
distributions on the Junior Subordinated Debentures if the Trust is required to
pay any additional taxes, duties or other governmental charges as a result of a
Tax Event.

     2.6  Direct Action.  In addition to any right of Direct Action granted
under Section 6.5 of the Trust Agreement to the holders of Capital Securities,
if the Property Trustee fails to enforce its rights under the Trust Agreement or
the Indenture to the fullest extent permitted by law and subject to the terms of
the Trust Agreement and the Indenture, then a holder of Capital Securities may
directly institute a proceeding against the Company to enforce

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the Property Trustee's rights under the Trust Agreement or the Indenture without
first instituting a legal proceeding against the Property Trustee or any other
person.

                                  ARTICLE III
               REDEMPTION OF THE JUNIOR SUBORDINATED DEBENTURES

     3.1  Tax Event or Investment Company Event Redemption.

If a Tax Event or Investment Company Event (either a "Special Event") shall
occur and be continuing, the Company may redeem the Junior Subordinated
Debentures at any time within 90 days after the occurrence of that Special
Event, in whole but not in part, at a redemption price (the "Special Event
Redemption Price") equal to the Special Event Make-Whole Amount plus accrued and
unpaid interest thereon to but excluding the redemption date.  The Special Event
Redemption Price shall be paid prior to 2:00 p.m., New York City time, on the
date of such redemption, provided that the Company shall deposit with the
Trustee an amount sufficient to pay the Special Event Redemption Price by 11:00
a.m., New York City time, on the date such Special Event Redemption Price is to
be paid.

     3.2  Optional Redemption by Company.  The Company shall have the option to
redeem the Junior Subordinated Debentures at any time, in whole but not in part,
at a redemption price (the "Optional Redemption Price") equal to the Optional
Redemption Make-Whole Amount plus accrued and unpaid interest thereon to but
excluding the redemption date.  The Optional Redemption Price shall be paid
prior to 2:00 p.m., New York City time, on the date of such redemption, provided
that the Company shall deposit with the Trustee an amount sufficient to pay the
Optional Redemption Price by 11:00 a.m., New York City time, on the date such
Optional Redemption Price is to be paid.

     3.3  Notice of Redemption.  Subject to Article Three of the Base Indenture,
notice of any redemption pursuant to this Article Three will be mailed at least
20 days but not more than 60 days before the redemption date to each holder of
Junior Subordinated Debentures to be redeemed at such holder's registered
address.  Unless the Company defaults in payment of the applicable redemption
price, on and after the redemption date interest shall cease to accrue on such
Junior Subordinated Debentures called for redemption. The Company will notify
the Trustee of the amount of the redemption price promptly after the calculation
thereof and the Trustee will not be responsible for such calculation.

                                  ARTICLE IV
                     EXTENSION OF INTEREST PAYMENT PERIOD

     4.1  Extension of Interest Payment Period.

So long as no Event of Default under Section 6.1 of the Base Indenture has
occurred and is continuing, the Company shall have the right, subject to the
provisions of Section 2.10 of the Base Indenture, at any time during the term of
the Junior Subordinated Debentures, from time to time to defer the payment of
interest by extending the interest payment period of such Junior Subordinated
Debentures for a period not exceeding 10 consecutive semi-annual periods (an
"Extension Period"), during which Extension Period the Company shall not have
the right to make partial payments of interest.  No Extension Period shall end
on a date other than an Interest Payment Date or extend beyond the Stated

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Maturity of the Junior Subordinated Debentures.  To the extent permitted by
applicable law, interest, the payment of which has been deferred because of an
Extension Period imposed pursuant to this Section 4.1, will bear Additional
Interest compounded semi-annually.  At the end of the Extension Period, the
Company shall pay all interest then accrued and unpaid on the Junior
Subordinated Debentures, including any Additional Interest and Additional Tax
Sums, if applicable, to the holders of the Junior Subordinated Debentures in
whose names the Junior Subordinated Debentures are registered in the Register on
the first Record Date preceding the end of the Extension Period. Before the
termination of any Extension Period, the Company may further extend such
Extension Period, provided that such period together with all such further
extensions thereof shall not exceed 10 consecutive semi-annual periods, or
extend beyond the Stated Maturity. At any time following the termination of any
Extension Period and upon the payment of any accrued and unpaid Additional
Interest and Additional Tax Sums, if applicable, then due, the Company may elect
to begin a new Extension Period, subject to the foregoing requirements. No
interest shall be due and payable during an Extension Period, except at the end
thereof.

          During any such Extension Period, the Company shall not (i) declare or
pay any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Company's Capital Stock or (ii)
make any payment of principal of or interest on or repay, repurchase or redeem
any debt securities of the Company that rank on a parity with or junior to this
Debenture or make any guarantee payments with respect to any DRI Guarantee or
other guarantee by the Company of the debt securities of any Subsidiary of the
Company that by its terms ranks on a parity with or junior to this Debenture
(other than (a) dividends or distributions in Common Stock, (b) any declaration
of a dividend in connection with the implementation of a Rights Plan, the
issuance of any Capital Stock or any class or series of preferred stock of the
Company under any Rights Plan or the redemption or repurchase of any rights
distributed pursuant to a Rights Plan, (c) payments under any DRI Guarantee
relating to the Capital Securities issued by the DRI Trust holding the Junior
Subordinated Debentures, and (d) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Company's benefit plans for
its directors, officers, employees, consultants or advisors).

     4.2  Notice of Extension.

          (a) If the Property Trustee is the only registered holder of the
Junior Subordinated Debentures at the time the Company elects to begin or extend
an Extension Period, the Company shall give written notice to the Property
Trustee, the Administrative Trustees and the Trustee of its election to begin or
extend any Extension Period at least five Business Days prior to the earlier of
(i) the next succeeding date on which Distributions on the Capital Securities
issued by the Trust would have been payable but for the election to begin or
extend such Extension Period or (ii) subject to applicable principles of federal
securities law, the date the Administrative Trustees are required to give notice
to any securities exchange or other applicable self-regulatory organization or
to holders of such Capital Securities of the record date or the date such
Distributions are payable, but in any event not less than five Business Days
prior to such record date. An Administrative Trustee shall give notice of the
Company's election to begin or extend an Extension Period to the holders of such
Capital Securities.

                                      10
<PAGE>

          (b) If the Property Trustee is not the only holder of the Junior
Subordinated Debentures at the time the Company elects to begin or extend an
Extension Period, the Company shall give the holders of the Junior Subordinated
Debentures, the Administrative Trustees and the Trustee written notice of its
election to begin or extend such Extension Period at least 10 Business Days
prior to the earlier of (i) the next succeeding Interest Payment Date or (ii)
subject to applicable principles of federal securities law, the date the Company
is required to give notice of the record or payment date of such interest
payment to any applicable self-regulatory organization or to holders of the
Junior Subordinated Debentures.

          (c) The semi-annual period in which any notice is given pursuant to
paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the 10
consecutive semi-annual periods permitted in the maximum Extension Period
permitted under Section 4.1.

                                   ARTICLE V
                                   EXPENSES

     5.1  Payment of Expenses. In connection with the offering, sale and
issuance of the Junior Subordinated Debentures to the Property Trustee and in
connection with the offering, sale and issuance of the Trust Securities by the
Trust, the Company, in its capacity as borrower with respect to the Junior
Subordinated Debentures, shall:

          (a) pay all costs and expenses relating to the offering, sale and
issuance of the Junior Subordinated Debentures and the Trust Securities,
including commissions to the Underwriters payable pursuant to the Underwriting
Agreement and compensation of the Trustee under the Indenture in accordance with
the provisions of Section 7.6 of the Base Indenture;

          (b) pay all costs and expenses of the Trust (including, but not
limited to, costs and expenses relating to the organization of the Trust, the
fees and expenses of the Property Trustee and the Delaware Trustee, the costs
and expenses relating to the operation of the Trust, including without
limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, paying agent(s), registrar(s), transfer agent(s),
duplicating, travel and telephone and other telecommunications expenses and
costs and expenses incurred in connection with the acquisition, financing, and
disposition of Trust assets);

          (c) pay all costs and expenses related to the enforcement by the
Property Trustee of the rights of the registered holders of the Capital
Securities;

          (d) be primarily liable for any indemnification obligations arising
with respect to the Trust Agreement and the Underwriting Agreement; and

          (e) pay any and all taxes and all liabilities, costs and expenses with
respect to such taxes of the Trust (but not including withholding taxes imposed
on holders of Capital Securities or Common Securities of the Trust).

     5.2  Payment Upon Resignation or Removal.  Upon termination of this Second
Supplemental Indenture or the Base Indenture or the removal or resignation of
the Trustee

                                      11
<PAGE>

pursuant to Section 7.10 of the Base Indenture, the Company shall pay to the
Trustee all amounts owed to it under Section 7.6 of the Base Indenture accrued
to the date of such termination, removal or resignation. Upon termination of the
Trust Agreement or the removal or resignation of the Delaware Trustee or the
Property Trustee, as the case may be, pursuant to Section 6.6 of the Trust
Agreement, the Company shall pay to the Delaware Trustee or the Property
Trustee, as the case may be, and their respective counsel, all amounts owed to
them under Section 4.2 of the Trust Agreement accrued to the date of such
termination, removal or resignation.

                                  ARTICLE VI
                     FORM OF JUNIOR SUBORDINATED DEBENTURE

     6.1  Form of Junior Subordinated Debenture. The Junior Subordinated
Debentures and the Trustee's Certificate of Authentication to be endorsed
thereon are to be substantially in the form attached hereto as Exhibit A.

                                  ARTICLE VII
               ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBENTURES

     7.1  Original Issue of Junior Subordinated Debentures. Junior Subordinated
Debentures in the initial aggregate principal amount of up to $257,732,000 may
be executed by the Company and delivered to the Trustee for authentication by
it, and the Trustee shall thereupon authenticate and deliver said Junior
Subordinated Debentures to or upon the written order of the Company, signed by
its Chairman of the Board, any Vice Chairman of the Board, the Chief Executive
Officer, the President, or any Vice President (whether or not designated by a
number or word or words added before or after the title Vice President) and by
its Treasurer, an Assistant Treasurer, the Controller, its Corporate Secretary
or an Assistant Corporate Secretary, without any further corporate action by the
Company. Additional Junior Subordinated Debentures without limitation as to
amount, and without the consent of the holders the then Outstanding Junior
Subordinated Debentures, may also be authenticated and delivered in the manner
provided in Section 2.1 of the Base Indenture. Any such additional Junior
Subordinated Debentures will have the same Stated Maturity and other terms as
those initially issued.

                                 ARTICLE VIII
                                 MISCELLANEOUS

     8.1  Ratification of Indenture; Second Supplemental Indenture Controls.
The Indenture, as supplemented by this Second Supplemental Indenture, is in all
respects ratified and confirmed, and this Second Supplemental Indenture shall be
deemed part of the Indenture in the manner and to the extent herein and therein
provided. The provisions of this Second Supplemental Indenture shall supersede
the provisions of the Indenture to the extent the Indenture is inconsistent
herewith.

     8.2  Trustee Not Responsible for Recitals.  The recitals herein contained
are made by the Company and not by the Trustee, and the Trustee assumes no
responsibility for the

                                      12
<PAGE>

correctness thereof. The Trustee makes no representation as to the validity or
sufficiency of this Second Supplemental Indenture.

     8.3  Governing Law.  This Second Supplemental Indenture and each Junior
Subordinated Debenture shall be deemed to be a contract made under the internal
laws of the State of New York, and for all purposes shall be governed by and
construed in accordance with the laws of said State, without regard to the
conflicts of law principles thereof.

     8.4  Separability.  In case any one or more of the provisions contained in
this Second Supplemental Indenture or in the Junior Subordinated Debentures
shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provisions of this Second Supplemental Indenture or of the Junior
Subordinated Debentures, but this Second Supplemental Indenture and the Junior
Subordinated Debentures shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.

     8.5  Counterparts.  This Second Supplemental Indenture may be executed in
any number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

                                      13
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
Indenture to be duly executed as of the date first above written.

                                        DOMINION RESOURCES, INC.

                                        By:___________________________________
                                           Name:
                                           Title:

                                        THE CHASE MANHATTAN BANK,
                                        as Trustee

                                        By:___________________________________
                                           Name:
                                           Title:

                                      14
<PAGE>

                                   EXHIBIT A

                (FORM OF FACE OF JUNIOR SUBORDINATED DEBENTURE)

     [THIS DEBENTURE IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY.  THIS DEBENTURE IS EXCHANGEABLE FOR JUNIOR SUBORDINATED
DEBENTURES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS DEBENTURE (OTHER THAN A TRANSFER OF THIS DEBENTURE AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.]*

     [UNLESS THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBENTURE
ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT
HEREON IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
[CEDE & CO.], HAS AN INTEREST HEREIN.]*

     THE DEBENTURES EVIDENCED HEREBY WILL BE ISSUED, AND MAY BE TRANSFERRED,
ONLY IN BLOCKS HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000.  ANY TRANSFER,
SALE OR OTHER DISPOSITION OF SUCH DEBENTURES IN A BLOCK HAVING A PRINCIPAL
AMOUNT OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH
DEBENTURES FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO THE RECEIPT OF PAYMENTS
IN RESPECT OF SUCH DEBENTURES, AND SUCH TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH DEBENTURES.

___________________

* Insert in Global Debentures.
<PAGE>

                      ==================================
                           DOMINION RESOURCES, INC.
                      ==================================

                             [Up to]* $___________

                            8.4% JUNIOR SUBORDINATED
                        DEBENTURE DUE JANUARY 15, 2031

                           Dated:__________________

NUMBER ____                                      [CUSIP NO: ___________________]

Registered Holder:

     DOMINION RESOURCES, INC., a corporation duly organized and existing under
the laws of the Commonwealth of Virginia (herein referred to as the "Company,"
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to the Registered
Holder named above, the principal sum [of __________________________
Dollars]**[specified in the Schedule annexed hereto]*** on January 15, 2031 (the
"Stated Maturity"), in such coin or currency of the United States of America as
at the time of payment is legal tender for the payment of public and private
debt. The Company further promises to pay to the registered Holder hereof as
hereinafter provided (a) interest on said principal sum (subject to deferral as
set forth herein) at the rate per annum specified in the title of this debenture
(the "Debenture"), in like coin or currency, semi-annually in arrears on the
15th day of January and July (each an "Interest Payment Date") commencing July
15, 2001, from the Interest Payment Date next preceding the date hereof to which
interest has been paid or duly provided for (unless (i) no interest has yet been
paid or duly provided for on this Debenture, in which case from January 12,
2001, or (ii) the date hereof is before an Interest Payment Date but after the
related Record Date (as defined below), in which case from such following
Interest Payment Date; provided, however, that if the Company shall default in
payment of the interest due on such following Interest Payment Date, then from
the next preceding Interest Payment Date to which interest has been paid or duly
provided for), until the principal hereof is paid or duly provided for, plus (b)
Additional Interest, as defined in the Indenture, to the extent permitted by
applicable law, on any interest payment that is not made on the applicable
Interest Payment Date, which shall accrue at the rate per annum specified in the
title of this Debenture, compounded semi-annually.

____________________

* Insert in Global Debentures and Debentures issued to the Property Trustee.
** Insert in Debentures other than Global Debentures and Debentures issued to
   the Property Trustee.
*** Insert in Global Debentures and Debentures issued to the Property Trustee.

                                      A-2
<PAGE>

     The interest so payable will, subject to certain exceptions provided in the
Indenture hereinafter referred to, be paid to the person in whose name this
Debenture is registered at the close of business on the Record Date next
preceding such Interest Payment Date. The Record Date shall be the Business Day
next preceding the Interest Payment Date, unless this Debenture is registered to
a holder other than the Property Trustee or a nominee of The Depository Trust
Company, in which case the Record Date will be the fifteenth calendar day
preceding such Interest Payment Date whether or not a Business Day. This
Debenture may be presented for payment of principal and interest at the
principal corporate trust office of The Chase Manhattan Bank, as paying agent
for the Company, maintained for that purpose in the Borough of Manhattan, The
City of New York; provided, however, that payment of interest may be made at the
option of the Company (i) by check mailed to such address of the person entitled
thereto as the address shall appear on the Register of the Debentures or (ii) by
transfer to an account maintained by the Person entitled thereto as specified in
the Register, provided that proper transfer instructions have been received by
the Record Date. Interest on the Debenture will be computed on the basis of a
360-day year of twelve 30-day months.

     So long as no Event of Default has occurred and is continuing, the Company
shall have the right, at any time during the term of this Debenture, from time
to time to defer the payment of interest by extending the interest payment
period of this Debenture for a period not exceeding 10 consecutive semi-annual
periods (an "Extension Period"), during which Extension Period the Company shall
not have the right to make partial payments of interest. No Extension Period
shall end on a date other than an Interest Payment Date or extend beyond the
Stated Maturity of this Debenture.  To the extent permitted by applicable law,
interest, the payment of which has been deferred because of an Extension Period,
will bear Additional Interest compounded semi-annually.  At the end of the
Extension Period, the Company shall pay all interest then accrued and unpaid on
this Debenture, including any Additional Interest and Additional Tax Sums, if
applicable, to the Person in whose name this Debenture is registered in the
Register on the first Record Date preceding the end of the Extension Period.
Before the termination of any Extension Period, the Company may further extend
such Extension Period, provided that such period together with all such further
extensions thereof shall not exceed 10 consecutive semi-annual periods, or
extend beyond the Stated Maturity. At any time following the termination of any
Extension Period and upon the payment of any accrued and unpaid Additional
Interest and Additional Tax Sums, if applicable, then due, the Company may elect
to begin a new Extension Period, subject to the foregoing requirements. No
interest shall be due and payable during an Extension Period, except at the end
thereof.

     During any such Extension Period, the Company shall not (i) declare or pay
any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Company's Capital Stock or (ii)
make any payment of principal of or interest on or repay, repurchase or redeem
any debt securities of the Company that rank on a parity with or junior to this
Debenture or make any guarantee payments with respect to any DRI Guarantee or
other guarantee by the Company of the debt securities of any Subsidiary of the
Company that by its terms ranks on a parity with or junior to this Debenture
(other than (a) dividends or distributions in Common Stock, (b) any declaration
of a dividend in connection with the implementation of a Rights Plan, the
issuance of any Capital Stock or any class or series of preferred stock of the
Company under any Rights Plan or the redemption or repurchase of any rights
distributed pursuant to a Rights Plan, (c) payments under the DRI Guarantee
relating to the

                                      A-3
<PAGE>

Capital Securities issued by the Trust, and (d) purchases of Common Stock
related to the issuance of Common Stock or rights under any of the Company's
benefit plans for its directors, officers, employees, consultants or advisors).

     If the Property Trustee is the only registered holder of the Debentures of
this series at the time the Company elects to begin or extend an Extension
Period, the Company shall give written notice to the Property Trustee, the
Administrative Trustees and the Trustee of its election to begin or extend any
Extension Period at least five Business Days prior to the earlier of (i) the
next succeeding date on which Distributions on the Capital Securities issued by
the Trust would have been payable but for the election to begin or extend such
Extension Period or (ii) subject to applicable principles of federal securities
law, the date the Administrative Trustees are required to give notice to any
securities exchange or other applicable self-regulatory organization or to
holders of such Capital Securities of the record date or the date such
Distributions are payable, but in any event not less than five Business Days
prior to such record date. An Administrative Trustee shall give notice of the
Company's election to begin or extend an Extension Period to the holders of such
Capital Securities.

     If the Property Trustee is not the only holder of the Debentures of this
series at the time the Company elects to begin or extend an Extension Period,
the Company shall give the holders of the Debentures of this series, the
Administrative Trustees and the Trustee written notice of its election to begin
or extend such Extension Period at least 10 Business Days prior to the earlier
of (i) the next succeeding Interest Payment Date or (ii) subject to applicable
principles of federal securities law, the date the Company is required to give
notice of the record or payment date of such interest payment to any applicable
self-regulatory organization or to holders of the Debentures of this series.

     The semi-annual period in which any notice is given pursuant to the two
preceding paragraphs shall be counted as one of the 10 consecutive semi-annual
periods permitted in the maximum Extension Period.

     This Debenture is issued pursuant to an Indenture, dated as of December 1,
1997, between the Company, as issuer, and The Chase Manhattan Bank, a New York
banking corporation, as trustee, as supplemented by a First Supplemental
Indenture dated as of December 1, 1997 and a Second Supplemental Indenture dated
as of January 1, 2001 (as further supplemented or amended from time to time, the
"Indenture").  Reference is made to the Indenture for a description of the
respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the Holders (the word "Holder" or
"Holders" meaning the registered holder or registered holders) of the
Debentures.  Capitalized terms used herein but not defined herein shall have the
respective meanings assigned thereto in the Indenture.  By acceptance of this
Debenture, the Holder hereof agrees to be bound by the provisions of the
Indenture.

     The Debentures of this series shall have an initial aggregate principal
amount of Two Hundred Fifty-Seven Million Seven Hundred Thirty-Two Thousand
Dollars ($257,732,000).

     The Debentures evidenced by this Certificate may be transferred or
exchanged only in minimum denominations of $1,000 and integral multiples of
$1,000 in excess thereof, and any

                                      A-4
<PAGE>

attempted transfer, sale or other disposition of Debentures in a denomination of
less than $1,000 shall be deemed to be void and of no legal effect whatsoever.

     The indebtedness of the Company evidenced by this Debenture, including the
principal hereof and interest hereon, is, to the extent and in the manner set
forth in the Indenture, subordinate and junior in right of payment to the
Company's obligations to Holders of Senior Indebtedness of the Company and each
Holder of this Debenture, by acceptance hereof, agrees to and shall be bound by
such provisions of the Indenture and all other provisions of the Indenture.

     This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by or on
behalf of the Trustee under the Indenture.

                                      A-5
<PAGE>

     IN WITNESS WHEREOF, DOMINION RESOURCES, INC. has caused this instrument to
be signed, manually or in facsimile, by its Chairman of the Board, or its Chief
Executive Officer, or its President, or any Vice President and by its Treasurer
or an Assistant Treasurer or its Controller or its Corporate Secretary or an
Assistant Corporate Secretary under the corporate seal of Dominion Resources,
Inc.

                           DOMINION RESOURCES, INC.

[SEAL]

                              By: ______________________________________
                                  Name:
                                  Title:

                              By: ______________________________________
                                  Name:
                                  Title:

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities, of the series designated herein, referred to
in the within-mentioned Indenture.

                                        THE CHASE MANHATTAN BANK, as Trustee

                                        By: __________________________________
                                            Authorized Officer

                                      A-6
<PAGE>

                             REVERSE OF DEBENTURE

     As provided in and subject to the provisions in the Indenture, the Company
shall have the option to redeem the Debentures of this series at any time, in
whole but not in part, at the Optional Redemption Price. In addition, if a
Special Event shall occur and be continuing, the Company may redeem the
Debentures of this series at any time within 90 days after the occurrence of
that Special Event, in whole but not in part, at the Special Event Redemption
Price.

     In the case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Debentures of this
series may be declared, and upon such declaration shall become, due and payable,
in the manner, with the effect and subject to the conditions provided in the
Indenture.

     Any consent or waiver by the Holder of this Debenture given as provided in
the Indenture (unless effectively revoked as provided in the Indenture) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Debenture and of any Debenture issued in exchange, registration of transfer, or
otherwise in lieu hereof irrespective of whether any notation of such consent or
waiver is made upon this Debenture or such other Debentures. No reference herein
to the Indenture and no provision of this Debenture or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Debenture, at the
places, at the respective times, at the rate and in the coin or currency herein
prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Debenture may be registered on the Register of the
Debentures of this series upon surrender of this Debenture for registration of
transfer at the offices maintained by the Company or its agent for such purpose,
duly endorsed by the Holder hereof or his attorney duly authorized in writing,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Securities registrar duly executed by the Holder hereof or his
attorney duly authorized in writing, but without payment of any charge other
than a sum sufficient to reimburse the Company for any tax or other governmental
charge incident thereto.  Upon any such registration of transfer, a new
Debenture or Debentures of authorized denomination or denominations for the same
aggregate principal amount will be issued to the transferee in exchange herefor.

     Prior to due presentment for registration of transfer of this Debenture,
the Company, the Trustee, and any agent of the Company or the Trustee may deem
and treat the person in whose name this Debenture shall be registered upon the
Register of the Debentures of this series as the absolute owner of this
Debenture (whether or not this Debenture shall be overdue and notwithstanding
any notation of ownership or other writing hereon) for the purpose of receiving
payment of or on account of the principal hereof and, subject to the provisions
on the face hereof, interest due hereon and for all other purposes; and neither
the Company nor the Trustee nor any such agent shall be affected by any notice
to the contrary.

     No recourse shall be had for the payment of the principal of or interest on
this Debenture, or for any claim based hereon or otherwise in respect hereof, or
based on or in respect of the

                                      A-7
<PAGE>

Indenture or any indenture supplemental thereto, against any stockholder,
officer, director or employee, as such, past, present or future, of the Company
or of any successor corporation, either directly or through the Company, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as a part of the consideration for the issue hereof,
expressly waived and released.

     The Company and, by acceptance of this Debenture or a beneficial interest
in this Debenture, each holder hereof and any person acquiring a beneficial
interest herein, agree that for United States federal, state and local tax
purposes it is intended that this Debenture constitute indebtedness.

     This Debenture shall be deemed to be a contract made under the laws of the
State of New York (without regard to conflicts of laws principles thereof) and
for all purposes shall be governed by, and construed in accordance with, the
laws of said State.

                                      A-8
<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

_______________________________________________________________________________.

    (please insert Social Security or other identifying number of assignee)

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
ASSIGNEE

the within Debenture and all rights thereunder, hereby irrevocably constituting
and appointing

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

agent to transfer said Debenture on the books of the Company, with full power of
substitution in the premises.

Dated: __________________ __, ____

                                                ________________________________

NOTICE:  The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

                                      A-9
<PAGE>

         [FORM OF SCHEDULE FOR ENDORSEMENTS ON GLOBAL DEBENTURES AND
       DEBENTURES ISSUED TO THE PROPERTY TRUSTEE TO REFLECT CHANGES IN
                               PRINCIPAL AMOUNT]*

    The initial principal amount of this Debenture is: $___________________

  Changes to Principal Amount of Global Debenture and Debenture issued to the
                               Property Trustee

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
                   Principal Amount by which this
                   Debenture is to be Decreased or         Remaining             Signature of
                   Increased and the Reason for the     Principal Amount      Authorized Officer
     Date               Decrease or Increase            of this Debenture         of Trustee
--------------------------------------------------------------------------------------------------
<S>               <C>                                  <C>                    <C>
--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

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</TABLE>

________________________

* Insert Schedule in Global Debentures and Debentures issued to the Property
  Trustee.

                                     A-10<PAGE>

                                                                   EXHIBIT 4.8

                    CAPITAL SECURITIES GUARANTEE AGREEMENT

                         DATED AS OF JANUARY 12 , 2001

                                BY AND BETWEEN

                           DOMINION RESOURCES, INC.,
                                 AS GUARANTOR

                                      AND

                           THE CHASE MANHATTAN BANK,
                                  AS TRUSTEE
<PAGE>

                            CROSS REFERENCE TABLE*

<TABLE>
<CAPTION>
SECTION OF TRUST                                                                        SECTION OF
INDENTURE ACT OF                                                                        GUARANTEE
1939, AS AMENDED                                                                        AGREEMENT
---------                                                                                 ------
<S>                                                                                     <C>
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)............................................................................      1.1; 2.5; 3.2
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)
315(e)............................................................................      Inapplicable
316(a)............................................................................      2.6; 5.4(a)
316(b)............................................................................      5.3
316(c)............................................................................      2.2
317(a)............................................................................      2.10
317(b)............................................................................      Inapplicable
318(a)............................................................................      2.1(b)
</TABLE>

--------
* 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.......... ............................................................        1
      SECTION 1.1  Interpretation and Definitions..............................................................        1

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>

                    CAPITAL SECURITIES GUARANTEE AGREEMENT

     This CAPITAL SECURITIES GUARANTEE AGREEMENT (the "Guarantee"), dated as of
January 12, 2001, is executed and delivered by DOMINION RESOURCES, INC., a
Delaware 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 DOMINION RESOURCES CAPITAL TRUST III, a Delaware statutory business
trust (the "Trust").

                                   RECITALS

     WHEREAS, pursuant to the Trust Agreement (as defined herein), the Trust is
initially issuing on the date hereof (i) $250,000,000 aggregate liquidation
amount of Capital Securities, having a liquidation amount of $1,000 per security
and designated the "250, 000 8.4% Capital Securities" of the Trust and may, from
time to time, issue additional Tranches (as defined herein) of such securities
in the future (the "Capital Securities") and (ii) $7,732,000 aggregate
liquidation amount of common securities, having a liquidation amount equal to
approximately 3%of the total capital of the Trust and designated the "8.4%
Common Securities" of the Trust and may, from time to time, issue additional
Tranches (as defined herein) of such securities in the future (the "Common
Securities" and, together with the Capital Securities, the "Securities");

     WHEREAS, the Securities will be issued by the Trust and the proceeds
thereof will be used to purchase the Junior Subordinated Debentures of the
Guarantor, which will be held by the Trust as trust assets;

     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 Holders of Capital 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.
<PAGE>

                                   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.

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

     "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, which office at the date of execution of this Guarantee is located
at 450 West 33/rd/ Street, New York, New York 10001, Attention:  Institutional
Trust Services.

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

                                       2
<PAGE>

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

     "GUARANTEE EVENT OF DEFAULT" means a default by the Guarantor on  any of
its payment 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 funds legally and immediately 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 funds legally
and immediately 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 Debentures 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 funds legally and immediately 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 Capital 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 Capital
Securities; and provided further that in determining whether the Holders of the
requisite liquidation amount of Capital 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 Capital 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 Capital Securities are
credited on the record date, the term "Holders" shall mean such Depositary
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.

                                       3
<PAGE>

       "INDENTURE" means the Junior Subordinated Indenture, dated as of December
1, 1997, by and between Dominion Resources, Inc. and The Chase Manhattan Bank as
Trustee, as supplemented and amended by a First Supplemental Indenture dated as
of December 1, 1997, a Second Supplemental Indenture dated as of January 1, 2001
and as further amended or supplemented by any other indenture supplemental
thereto, pursuant to which the Junior Subordinated Debentures are to be issued
to the Property Trustee as defined in the Trust Agreement.

       "JUNIOR SUBORDINATED DEBENTURES" means the series of Junior Subordinated
Debentures to be issued, from time to time, by Dominion Resources, Inc.
designated the "8.4% Junior Subordinated Debentures due January 15, 2031" 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 Capital 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 Capital 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;

       (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

                                       4
<PAGE>

     (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.

     "TRANCHE" has the meaning specified in the Trust Agreement.

     "TRUST AGREEMENT" means the Amended and Restated Trust Agreement of the
Trust, dated as of January 1, 2001, 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 Debentures.

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

                                       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
Capital 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 September 15
of each year (commencing with the year of the initial 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 Capital Securities may, by vote or written consent,
on behalf of the Holders of all of the Capital 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 Dominion Resources Capital Trust I dated as of
December 8, 1997, among the Guarantor, The Chase Manhattan Bank, as Property
Trustee, Chase Manhattan Bank USA, National Association (successor to Chase
Manhattan Bank Delaware), as Delaware Trustee, and the Administrators named
therein,

                                       7
<PAGE>

and the Capital Securities Guarantee Agreement dated as of December 8, 1997,
between the Guarantor and The Chase Manhattan 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, and no implied covenants shall be read into this
Guarantee against the Guarantee Trustee.

                                       8
<PAGE>

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 Capital 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

          (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

                                       9
<PAGE>

     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 any Holder, unless such Holder shall have provided to the
     Guarantee Trustee such security and indemnity, reasonably satisfactory to
     the Guarantee Trustee, against

                                      10
<PAGE>

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

                                      11
<PAGE>

     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
Capital 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.

                                      13
<PAGE>

                                   ARTICLE 5

                                   GUARANTEE

       SECTION 5.1

       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 extend the interest
payment period on the Junior Subordinated Debentures pursuant to Section 2.10
thereof 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 Debentures) with respect to the Distributions (as
defined in the Trust Agreement) on the Securities.

       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

                                      14
<PAGE>

Distribution or other sum payable that results from the extension of any
interest payment period on the Junior Subordinated Debentures 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 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
Capital 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

                                      15
<PAGE>

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 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 Debentures on or after the respective
due dates specified in the Junior Subordinated Debentures, 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 Capital 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.

                                      16
<PAGE>

                                   ARTICLE 6

                   LIMITATION OF TRANSACTIONS; SUBORDINATION

       SECTION 6.1 LIMITATION OF TRANSACTIONS.

       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 Debentures, (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
Debentures 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 Debentures 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 Debentures (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 XIV 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 Capital Securities to receive Guarantee Payments under this Guarantee.

                                      17
<PAGE>

                                   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 Debentures
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 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.

                                   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

                                      18
<PAGE>

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.

                                   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 XI 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 Capital 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:

                                      19
<PAGE>

       (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 33/rd/ Street
            New York, New York  10001
            Attention: Institutional Trust 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):

            Dominion Resources, Inc.
            120 Tredegar Street
            Richmond, Virginia 23219
            Fax: (804) 819-2211

       (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.

                                      20
<PAGE>

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

                              DOMINION RESOURCES, INC.,
                              as Guarantor

                              By: _____________________________________
                              Name:
                              Title:

                              THE CHASE MANHATTAN BANK,
                              as Guarantee Trustee

                              By: _____________________________________
                              Name:
                              Title:

                                      21

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