Dominion Power 2007 Annual Report Download - page 8

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To tal Return
Comparison
1200
Dominion DJIA S&P Electric S&P 500
17.0
55.6
108.7
8.9
31.8
78.0
23.1
78.3
179.7
5.5
28.1
82.8
Source: Bloombe
1
6Dominion 2007 Annual Report
the Standard & Poor’s 500, and an
8.9 percent total return for the Dow
Jones Industrial Average. In 2006 we
lagged those key indices. By year-end
2007 we still trailed the S&P 500
Electric Utilities Index, which pro-
duced a total shareholder return of
23.1 percent. We want to improve our
share valuations relative to our peers.
Dominion debt-holders also
gained from our decision to refocus
the business model. Late last year
Standard & Poor’s raised the corpo-
rate credit rating for Dominion and
its Virginia Electric and Power
Company (Virginia Power) subsidiary
by two notches, to A- from BBB.
This demonstrates improvement of
our risk profile and strengthens our
ability to raise needed debt to sup-
port future growth.
The timely upgrade came as we
embark on “Powering Virginia,” our
plan to responsibly meet rising
demand from our electric power dis-
tribution customers, who also benefit
from our repositioning. Subject to
regulatory approval, the plan will be
built on a foundation of conservation
and efficiency; a balanced portfolio
of new electric generation fueled by
renewable resources, advanced-tech-
nology coal, natural gas and nuclear
power; and investments in the
infrastructure delivering that energy.
Like the dividend increase,
“Powering Virginia” might not have
been possible as Dominion stood one
year ago. Our plan will require the
largest capital investment and build-
ing program in Dominion’s history—
estimated at $11.8 billion for growth
and maintenance from 2008 through
2010 alone, including about $7 bil-
lion for Virginia. It took our new
structure—and forward-looking new
laws governing the regulation of elec-
tric utilities in Virginia—to provide
us with the way and the means.
We also can continue our substan-
tial investments in environmental
improvements—about $4 billion in
air and water emissions controls—
further improving one of the nation’s
cleanest electric generating fleets.
And Dominion’s commitment to
our communities and employees is as
strong as ever.
SEIZING OPPORTUNITYIN
CHALLENGE
The challenges that we now face
present real opportunities.
They include:
•Responsibly meeting energy needs
in growing markets.
•Protecting the environment and
building on business opportunities
presented by climate change
concerns.
•Keeping rates low while earning
competitive rates of return in
regulated and unregulated markets.
•Acting as profitable and respon-
sible stewards of your capital.
•Living our core corporate values
and giving back to our communities.
DOMINION IS EXTREMELY
FORTUNATE TO PROVIDE
VITAL ENERGY AND ENERGY
SERVICES IN STRONG
MARKETSIN THE
MID-ATLANTIC, MIDWEST
AND NORTHEAST.