Dominion Power 2001 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2001 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 91

  • 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

75
Dominion has nonqualified pension and supplemental pen-
sion plans which do not have ‘‘plan assets’’ as defined by generally
accepted accounting principles. The total projected benefit oblig-
ation for these plans was $103 million and $93 million at Decem-
ber 31, 2001 and 2000, respectively, and is included in the table
above. The additional minimum liability recognized relating to
these plans was $33 million and $42 million at December 31,
2001 and 2000. The related intangible asset recognized as of
those dates amounted to $12 million and $14 million, respec-
tively. Adjustments of the additional minimum liability and
intangible asset due to changes in assumptions or the financial
status of these plans resulted in a pre-tax credit to other compre-
hensive income of $7 million for 2001 and a pre-tax charge to
other comprehensive income of $24 million for 2000.
The following tables summarize the changes in Dominion’s pension and other postretirement benefit plan obligations and plan
assets for each of the years ended December 31, 2001 and 2000, and a statement of the plans’ funded status as of December 31, 2001
and 2000:
(millions) Pension Benefits Other Postretirement Benefits
Year ended December 31, 2001 2000 2001 2000
Expected benefit obligation at beginning of year $2,304 $1,097 $ 799 $ 401
Acquisition of CNG
—
1,002
—
297
Acquisition of Millstone 66
—
21
—
Actual benefit obligation at beginning of year 2,370 2,099 820 698
Additional benefit obligation due to change in control
—
10
——
Service cost 71 65 39 30
Interest cost 173 161 63 52
Benefits paid (153) (141) (51) (43)
Actuarial loss during the year 114 112 107 82
ERP benefit costs
—
81
—
33
Change in benefit obligation (5)
———
Special termination benefits 15
———
Sale of VNG
—
(45)
—
(20)
Change in APBO due to curtailment
—
(20)
—
(6)
Plan amendments 8(18) 18 (27)
Expected benefit obligation at end of year 2,593 2,304 996 799
Fair value of plan assets at beginning of year 3,557 1,305 417 272
Acquisition of CNG
—
2,332
—
128
Actual return on plan assets (91) 64 (11) 3
Contributions 39 34 65 45
Benefits paid from plan assets (153) (141) (25) (20)
Sale of VNG
—
(37)
—
(11)
Fair value of plan assets at end of year 3,352 3,557 446 417
Funded status 759 1,253 (550) (382)
Unrecognized net actuarial loss 698 177 164 13
Unrecognized prior service cost 3(1) 11 (7)
Unrecognized net transition (asset) obligation (5) (9) 115 125
Prepaid (accrued) benefit cost 1,455 1,420 (260) (251)
Amounts recognized in the consolidated balance sheets at December 31:
Prepaid benefit cost 1,511 1,455
——
Accrued benefit liability (89) (77) (260) (251)
Intangible asset 12 14
——
Accumulated other comprehensive income 21 28
——
Net amount recognized $1,455 $1,420 $(260) $(251)