Dominion Power 2015 Annual Report Download - page 15

DOMINION RESOURCES 2015 SUMMARY ANNUAL REPORT
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INVESTMENT CONSIDERATION
Dominion Midstream Partners, LP, was formed in 2014,
with your company as the general partner. Dominion
expects to contribute eligible assets into this subsidiary
and receive proceeds from the partnership that can be
used to fund growth projects and dividend payouts,
reduce debt and repurchase outstanding common
shares while allowing Dominion Midstream to achieve its
growth targets. Dominion will continue to operate those
assets and retain a percentage of their earnings — paid
to the company in distributions — as well as incentive
distributions that we expect to grow over time.
emergency flood conditions — with no
safety incidents, no service disruptions
and no damage to our facilities.
A January 2016 blizzard in our Virginia
Power service area featured strong winds
and dumped as much as 30 inches of ice
and snow. Despite the tough weather
conditions, only about 2 percent of our
2.5 million customers were affected —
most for only short periods of time. That
is a testament to our reliability improve-
ments and to the mobilized force of
4,000 men and women from Virginia
Power and unaffected utilities in other
states who lent a helping hand.
Speaking of, when Dominion employ-
ees are not performing a public service,
they are giving back to the communities
where they live. In 2015, they volunteered
nearly 110,000 hours of their time, often
after a long day on the job.
COMMITTED TO OUR COMMUNITIES
Our company learns a lot from our
employees, and their dedication to public
service — at Dominion and in their neigh-
borhoods — leaves a lasting impression
on our corporate culture and DNA.
Dominion and its philanthropic arm,
the Dominion Foundation, combined to
contribute more than $23 million in our
communities, supporting human needs,
community development, the environ-
ment, education and the arts.
In recent years we have focused on
donating to programs helping those
in need. In 2015, we announced an
expansion of EnergyShare, our signature
program of last resort for those needing
help paying their heating and cooling
bills. Dominion has promised an invest-
ment of $42 million through 2019 to
double participation and provide
weatherization services and educational
outreach to qualifying customers.
When devastating floods ravaged
South Carolina in the fall, Dominion
and its employees wanted to help.
We worked with local officials in the
Columbia, S.C., area to assist in recovery
efforts, providing 100,000 bottles of
safe drinking water, first-aid kits, hot
meals and other essential supplies —
all while maintaining superior service
to Dominion Carolina Gas customers.
BENEFITS OF OUR SPENDING
Of all the things we can control, one
that certainly benefits our investors,
our customers and the economy is our
capital growth plan. In 2015, your
company spent $6 billion on growth
and maintenance capital projects
across all business lines.
All of this spending has produced
more than mere iron in the ground.
How we have allocated your company’s
capital has reaped rewards for our customers.
After billions of dollars spent on new
and improved electric infrastructure —
Dominion had a record $1.06 billion in
electric transmission assets placed into
service in 2015 — the average amount of
time our customers lose power, excluding
during major storms, has fallen about
30 percent since 2007.
After more than $2 billion spent since
2000 on environmental equipment and
testing, we have recorded falling emissions
intensity — the amount of pollutant
emitted per unit of electricity produced —
and improvement in lost and unaccount-
ed for gas in our pipeline businesses.
Emissions intensity for sulfur dioxide,
nitrogen oxides and mercury has been
reduced by more than 80 percent, and
intensity of carbon dioxide emissions has
dropped more than 20 percent. Since
2008, methane leakage has been reduced
from Dominion Transmission’s pipes
by 49 percent and from Dominion East
Ohio’s by 77 percent.
PLANS TO INVEST $15.7 BILLION MORE
From 2016 through 2020, Dominion
intends to spend $15.7 billion in growth
capital across our business units,
excluding additional billions of dollars
in maintenance capital expenditures.
DOMINION
MIDSTREAM PARTNERS
YIELD — DM VS. HIGH-GROWTH PEERS
Percent Annualized Distribution Yield as of Dec. 31, 2015
Selected High Growth MLP’s by NYSE ticker symbol
Source: Bloomberg
PSXP
2.79
AM
3.58
EQM
3.59
CPPL
4.06
MPLX
4.78
CNNX
9.26
DM
2.61
VLP
2.38
SHLX
1.97