Dominion Power 2007 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2007 Dominion Power annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Notes to Consolidated Financial Statements, Continued
N
OTE
19. L
ONG
-T
ERM
D
EBT
At December 31,
2007
Weighted-
Average
Coupon(1) 2007 2006
(millions, except percentages)
Dominion Resources, Inc.:
Unsecured Senior and Medium-Term Notes:
4.125% to 8.125%, due 2008 to 2012 5.38% $ 2,262 $ 3,050
5.0% to 7.195%, due 2013 to 2035(2) 5.61% 3,047 3,110
Variable rates, due 2007 and 2008 5.53% 400 1,400
Unsecured Convertible Senior Notes, 2.125%, due 2023(3) 220 220
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% to 8.4%, due 2027 to 2031 7.85% 268 516
Enhanced Junior Subordinated Notes, 6.3% to 7.5%, due 2066 6.75% 800 800
Unsecured Debentures and Senior Notes(4):
6.0% to 6.875%, due 2007 to 2011 6.22% 720 1,500
5.0% to 6.875%, due 2013 to 2027 5.28% 711 1,200
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.8%, due 2041(4) —206
Virginia Electric and Power Company:
Secured First and Refunding Mortgage Bonds, 7.625%, due 2007(5) —215
Secured Bank Debt, Variable rate, due 2007(6) —370
Unsecured Senior and Medium-Term Notes:
4.5% to 5.73%, due 2007 to 2012 5.03% 950 1,000
4.75% to 8.625%, due 2013 to 2037 5.83% 3,385 1,748
Unsecured Callable and Puttable Enhanced SecuritiesSM, 4.10%, due 2038(7) 225 225
Tax-Exempt Financings:(8)
Variable rate, due 2008 3.86% 60 60
Variable rates, due 2015 to 2027 3.80% 137 137
4.95% to 7.65%, due 2007 to 2010 5.42% 205 232
4.25% to 7.55%, due 2014 to 2031 5.26% 223 263
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.375%, due 2042 412 412
Dominion Energy, Inc.:
Secured Senior Note, 7.33%, due 2020(9) 204 213
Tax-Exempt Financing, 5.0%, due 2036 47 47
Dominion Capital, Inc.:
Notes, 12.5%, due 2007 —4
Senior Revolving Notes, Variable rate, due 2017(10) 5.71% 75 —
Senior Note, Variable rate, due 2017(10) 5.66% 385 385
14,736 17,313
Fair value hedge valuation(11) 9(6)
Amounts due within one year(12) 5.19% (1,477) (2,478)
Unamortized discount and premium, net (33) (38)
Total long-term debt $13,235 $14,791
(1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2007.
(2) At the option of holders in August 2015, $510 million of Dominion’s 5.25% senior notes due 2033 are subject to redemption at 100% of the principal
amount plus accrued interest.
(3) Convertible into a combination of cash and shares of our common stock at any time when the closing price of our common stock equals 120% of the appli-
cable conversion price or higher for at least 20 out of the last 30 consecutive trading days ending on the last trading day of the previous calendar quarter. At
the option of holders on December 15, 2006, December 15, 2008, December 15, 2013, or December 15, 2018, these securities are subject to redemption at
100% of the principal amount plus accrued interest. On December 15, 2006 less than $100 thousand of the debt was redeemed due to holders exercising
their put option.
(4) Represents debt assumed by DRI from the merger of our former CNG consolidated subsidiary.
(5) Substantially all of Virginia Power’s property ($13.1 billion at December 31, 2007) is subject to the lien of the mortgage securing its First and Refunding
Mortgage Bonds. Although there are no publicly issued bonds outstanding as of December 31, 2007, we may issue additional bonds in the future.
(6) Represented debt associated with certain special purpose lessor entities consolidated in accordance with FIN 46R. The debt was nonrecourse to us and was
secured by the entities’ property, plant and equipment, which totaled $337 million at December 31, 2006. This debt was repaid in August 2007, when the
lease terminated.
(7) On December 15, 2008, the securities are subject to redemption at par plus accrued interest, unless holders of related options exercise their rights to purchase
and remarket the notes.
(8) These financings relate to certain pollution control equipment at Virginia Power’s generating facilities. The variable rate tax-exempt financings are supported
by a $200 million five-year credit facility that terminates in February 2011. In February 2007, we exercised our call option and redeemed $62 million of
Virginia Power’s tax-exempt financings with a weighted average rate of 7.52%, with proceeds raised through the issuance of commercial paper.
(9) Represents debt associated with our Kincaid power station. The debt is non-recourse to us and is secured by the facility’s assets ($557 million at December 31,
2007) and revenue.
(10) As discussed in Note 28, in June 2006, DCI began consolidating a CDO entity, in accordance with FIN 46R. The debt is nonrecourse to us.
(11) Represents the valuation of certain fair value hedges associated with our fixed-rate debt.
(12) Includes $1 million of net unamortized discount and fair value hedge valuation.
90 Dominion 2007 Annual Report