Dominion Power 2000 Annual Report Download - page 11

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We surpassed the average total returns on the Dow Jones and S&P
Utilities indexes, which closed the year with total returns of 51 percent
and nearly 60 percent, respectively. Last year’s total company return beat
our goal of 15 percent—a mark we’ve set for future years.
It’s tempting to give ourselves all the credit for last year’s share price run-
up. Make no mistake: The increase reflected the market’s confidence in our
ability to deliver solid long-term earnings, dividends and share price appreciation.
But our share price run-up also marked a return to sanity by the stock
market in general. Last year, investors in so-called “New Economy” stocks
and dot.com darlings saw their billion dollar investments shrink to millions.
Renewing their interest in companies with real earnings and real cash flow,
they returned to “Old Economy” investments like those in the utility and
energy sectors.
And our sector had its own share of volatility in 2000. Nightly newscasts
and headlines publicized problems in California, where surging power prices
and chronic short supply gave deregulation critics plenty of false ammo.
Short on hydropower and facing natural gas constraints, California actually
imposed curtailments early in the winter. It’s become increasingly clear to
everybody—even anti-competition proponents—that problems in the Golden
In 2000 our new company produced a record-setting year and
successfully completed one of our industry’s biggest mergers.
I’m proud of our talented and energetic team. Our share price
closed the year at $67, just a fraction shy of our all-time high.
Combined with four quarterly dividends, the increase in
share price produced a total return exceeding 80 percent.
9
Dear Fellow Shareholders
The Market’s Return to Sanity
Last year’s total company return beat our goal of 15 percent
–—a mark we’ve set for future years.