Dominion Power 2005 Annual Report Download - page 6

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4Dominion 2005
Dominion from a regulated electric utility into one of the
nation’s premier integrated energy enterprises has been the
highlight of my professional life, even a labor of love.
At year end, our market capitalization stood at nearly
$27 billion, making us the sector’s third-largest. When
I joined this company in 1984, our market cap was about
$2.5 billion. By year end, we were serving more than
five million retail customer accounts in nine states, up from
1.5 million in Virginia and North Carolina in 1984. Our
generation capability exceeds 28,000 megawatts, up from
10,000 in 1984, and our natural gas and oil reserves
stand at 6.3 trillion cubic feet equivalent, up from none
when I first joined the company 22 years ago. We are
the nation’s largest and the world’s third-largest natural
gas storage operator, and we own and operate America’s
busiest liquefied natural gas terminal.
For you, the investor, we’ve produced double-digit total
returns on investment since our groundbreaking merger with
Consolidated Natural Gas Co. in early 2000.
This success would not have been possible without the
energetic management team and the dedicated people who
work at Dominion. They keep the energy flowing 24/7 to our
customers’ homes and businesses. I’ve been privileged to
work with them. They deserve the credit for catapulting
Dominion into the ranks of the world’s largest corporations.
I salute their intelligence, drive and enthusiasm.
I pass the CEO’s baton to Tom Farrell in full stride, know-
ing that Tom will take our company to even higher levels of
performance. Like I was, Tom was trained as a lawyer. Over
the years he learned the ins and outs of our business from
In my younger days, I enjoyed practicing law. But that
experience pales in comparison to the satisfaction
I’ve found in running and growing Dominion, creating
value for you and our fellow investors.
I love a challenge. And leading your company through
a period of unprecedented industry change has not
disappointed. By the late 1990s, several competing schools
of thought were being bandied about by the industry’s
leadership. Each asked: How best to assure future success
in a business beset with rapid change in the political,
regulatory and financial landscape?
As I’ve written to you before, some argued for spin-offs
of generation, some for exclusive focus on core utility
businesses, others for global size and scope. I pushed a
common-sense approach: Build a fully integrated natural
gas and electric power company serving an energy-hungry
region of the United States.
Some said we zigged as others zagged. However you
choose to characterize our recent history, it worked. Thanks
for the confidence in our vision. The transformation of
Dear Fellow Investor
The transformation of Dominion
from a regulated electric utility into
one of the nation’s premier integrat-
ed energy enterprises has been
the highlight of my professional life,
even a labor of love.