Dominion Power 2013 Annual Report Download - page 7

09 DOMINION RESOURCES, INC.
In 2007, your company embarked on a
long-term regulated growth plan to meet
the heightened demand of our customers
while remaining flexible to take advantage of
new possibilities as they arise. Dominion has
executed and will continue to execute that
plan on time and on budget.
All told, we have spent billions of dollars
to expand our electric and gas infrastructure
throughout the mid-Atlantic. And, over the
next five years, we plan to spend nearly
$14 billion more for growth in assets with
long-term contracts and in businesses whose
returns are subject to federal and/or state
oversight. Last year, and into the future,
80 percent to 90 percent of our operating
earnings have and will come from these
stable businesses.
APPALACHIAN OPPORTUNITY
Dominion has had good fortune to be in
the right place.
Our company traces its ancestry to the
Colonial era in Virginia, and we found our
calling in the electric utility business in
1909. A merger with Consolidated Natural
Gas (CNG) in 2000 brought to Dominion a
century of valuable experience in the gas-
production and gas-transportation areas of
the Appalachian Basin.
While we will spend growth capital at our
electric and gas utilities to provide service to
new customers and businesses and enhance
the reliability of those systems, new business
opportunities lie in the Marcellus and Utica
Shale regions of the Appalachian Basin. It is
anareawherewehavedonebusinesssince
1891 and where natural gas production is
expected to more than double over the
next 10 years.
Our century of excellent service in the
area and our rock-solid reputation as a gas
infrastructure company have earned us trust
among producers and have put us in a good
position to maximize our opportunities there.
We have been in the right place and have
done the job well for more than 100 years.
Combine new and exciting gas business
development with the stable yet always
growing Dominion Virginia Power utility,
and you can expect (a) solid returns on your
investment, (b) strong earnings per share
growth and (c) commensurate increases
in the dividend.*
FINANCIAL REVIEW OF 2013
Dominion is dierent not only because we
have electric and gas businesses, but also
because both sides of your company
are growing.
Dominion Virginia Power is expanding
to serve new customers and heavy data
center load. And there is a dire need for
more infrastructure where our natural gas
businesses reside.
In 2013, Dominion earned $3.25 per
share in operating earnings, up from $3.09
per share in 2012, and within our guidance
range of $3.20 per share to $3.50 per
share.** Earnings under Generally Accepted
Accounting Principles (GAAP) in 2013 were
$2.93 per share, up from 53 cents per share
in 2012.
Operating earnings per share increased
in part because of a regulated infrastructure
growth plan we began in earnest in 2007.
Also contributing to higher earnings
per share in 2013 were cost-control and
cost-cutting measures.
DEAR INVESTORS
Every day Dominion delivers on our promises to provide reliable
electric and gas service at reasonable rates and leverage business
opportunities to add shareholder value.
* All dividend declarations are subject to Board of Directors
approval.
** Based on non-GAAP Financial Measures. See page 22 for
GAAP Reconciliations.