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’02 Annual
Report
Dominion Resources, Inc. ’02 Annual Report

Table of contents

  • Page 1
    Dominion Resources, Inc. ' 0 2 A n n u a l R e po r t '02 Annual Report

  • Page 2
    ... companies. We're traded under the symbol "D" on the New York Stock Exchange and are proud to have the confidence of more than 350,000 shareholders. We're also privileged to serve 5 million retail energy customers in nine states. As one of the nation's largest producers of natural gas and electric...

  • Page 3
    ... of electric generation, 6.1 trillion cubic feet equivalent of proved gas and oil reserves, and nearly 7,900 miles of natural gas transmission pipeline. We also operate a natural gas storage system with 960 billion cubic feet of capacity, the nation's largest. Dominion '02 Annual Report 1

  • Page 4
    ... Dominion Resources Jay L. Johnson President and Chief Executive Officer Dominion Delivery operating segment Duane C. Radtke President and Chief Executive Officer Dominion Exploration & Production operating segment Mark F . McGettrick President and Chief Executive Officer-Generation Dominion...

  • Page 5
    ... longer view, I'm proud that our operating earnings per share are 60 percent higher than before our merger with Consolidated Natural Gas in early 2000. At the end of 2002, we'd delivered a 3-year total return of more than 60 percent. Yet, if you follow Dominion's share price on a regular basis, you...

  • Page 6
    ...fitable natural gas and electric power company serving customers in America's most energy-intensive market: the Mid-Atlantic, Northeast and Midwest. This market is home to our ever-growing base of 4 million retail utility customers, and about 1 million others served by Dominion in the deregulated...

  • Page 7
    ...Our product lines yield revenues from regulated retail natural gas and electric utilities in Virginia, North Carolina, West Virginia, Ohio and Pennsylvania. In a normal year, these franchises produce about 25 percent of our operating segment earnings. Commercial and large industrial customers bene...

  • Page 8
    ... electric rates until July 2007. The cap provides consumers with years of rate stability and Dominion with a stable revenue stream that we can use to improve our business. The balance of our generation is merchant power serving wholesale customers, most under long-term supply contracts. Operating...

  • Page 9
    Dominion drilled more than 875 onshore gas and oil wells during 2002, adding to its long-lived natural gas base in North America. 7

  • Page 10
    .... At Dominion, our internal and external accountants are fully empowered to speak their minds to me or the audit committee of our board of directors. As an investor, you should evaluate companies based not only on their pro-forma earnings, but also on their reported earnings to the Securities...

  • Page 11
    ... ï¬,ows and balance sheets also have become mainstream business issues. But per-share earnings remains the most popular way pundits like to separate winners from losers in the stock Generation: Unit Mix Current Generation: Fuel Mix Current Baseload 53.0% Coal Gas/Other Nuclear Purchases Oil 27...

  • Page 12
    ... annually from customers and employees who increase their investment in Dominion through dividend reinvestment, employee-matching stock and direct-stock purchase plans. Our world-class nuclear operations are a critical competitive advantage. Dominion's North Anna Unit 1 and Surry Unit 1 in 2002...

  • Page 13
    ... a big warehouse for gas in liquid form. Already, Cove Point is fully booked. Companies paying to import, store and move LNG through Cove Point will have access to high-growth energy markets throughout the Mid-Atlantic. Dominion Energy installed a new crack-resistant vessel head on North Anna Unit...

  • Page 14
    We completed our purchase of the Cove Point liquefied natural gas facility in southern Maryland in late 2002. When it resumes operations this year it will serve important regional gas markets. 12

  • Page 15
    ... of Chicago through 2012. Construction was completed on three natural gas-fired merchant generators in 2002 in Pennsylvania, Ohio and West Virginia. Unfortunately, they entered markets that softened substantially after construction started and aren't currently producing the returns we'd initially...

  • Page 16
    ... Plant Elwood State Line Troy Dresden Morgantown Armstrong Fairless Works New Generation Planned/Under Development Remington Mt.Storm Possum Point North Anna Bath Bremo Chesterfield Clover Roanoke Rapids Gaston Ladysmith Yorktown Surry Natural Gas Kincaid Pleasants Chesapeake 14 Dominion...

  • Page 17
    .... It operates active drilling programs in seven major North American basins, including the Gulf of Mexico, west Texas and Appalachian regions, among others. We believe that declining production in the lower 48 states will constrict supplies and boost gas prices. Unplanned events-nuclear outages...

  • Page 18
    ... in the hallway at Dominion's offices in New Orleans. Our Gulf of Mexico shelf and deepwater programs are important contributors to our gas and oil operations. Proved Gas and Oil Reserves Trillion Cubic Feet Equivalent (Tcfe) 7.0 2001 2002 6.1 4.9 3.5 0.0 16 Dominion '02 Annual Report

  • Page 19
    ... / Electric Transmission Lines Natural Gas Transmission Pipelines Natural Gas Transmission Pipelines (Planned) Natural Gas Transmission Pipelines (Partnership) Natural Gas Underground Storage Pools Cove Point LNG Facility Electric Transmission Lines (Bulk delivery) Dominion '02 Annual Report 17

  • Page 20
    ... You saw how market and price volatility affected our stock price. You probably also read quite a bit about the risks of energy trading and may ask whether we should continue in that business. The fact is, our Dominion Energy Clearinghouse helps us minimize risks. 18 Dominion '02 Annual Report

  • Page 21
    .... We intend to be among that field, with trading operations backed by our own generation stations, oil and natural gas wells, and pipe and power line networks. As I have emphasized in past letters, there's really nothing like good old-fashioned iron in the ground. Dominion '02 Annual Report 19

  • Page 22
    ... stock price of a company down after they've shorted the stock. This is clearly wrong. Top: Employees staffing Dominion Virginia Power Storm Center work around the clock to restore service. Bottom: Cleon Dickson, auxiliary operator at State Line Power Station, operates a valve to place the boiler...

  • Page 23
    ...Clear We've seen some companies let down their shareholders and employees in high-profile bankruptcies and ï¬,ameouts. We've always known companies can fail with ï¬,awed business plans. In 2002, we saw that companies fail through poor leadership. Leaders at the top must set the tone for the entire...

  • Page 24
    ... by improving cash ï¬,ows, strengthening our balance sheet and making efficient use of your invested dollar. nourished and promoted beginning in the board room with individual directors, the chief executive and his or her senior management. At Dominion, this sentiment is loud and clear. We...

  • Page 25
    ...for competition among electric generators; an 11 cent per share ($21 million) charge related to the sale of the company's Latin American power generation businesses; transition costs of 2 cents per share ($4 million) associated with the company's merger with Consolidated Natural Gas; and 7 cents per...

  • Page 26
    ... Condition and Results of Operations Selected Consolidated Financial Data 55 56 Notes to Consolidated Financial Statements 96 Report of Management's Responsibilities 97 Independent Auditors' Report 98 Directors 99 Officers 100 Shareholder Information 24 Dominion '02 Annual Report

  • Page 27
    ...09 $ 1.85 $ 1.76 0.09 $ 1.85 $ 2.58 Electric fuel and energy purchases, net Purchased electric capacity Purchased gas, net Liquids, pipeline capacity and other purchases Restructuring and other acquisition-related costs Other operations and maintenance Depreciation, depletion and amortization Other...

  • Page 28
    ... Customer accounts receivable (net of allowance of $63 and $76) Other accounts receivable Inventories: Materials and supplies Fossil fuel Gas stored-current portion Investment securities-trading Derivative and energy trading assets Margin deposit assets Prepayments Escrow account for debt refunding...

  • Page 29
    ... 22, the debt securities issued by Dominion Resources, Inc. and certain subsidiaries constitute 100 percent of the trusts' assets. (2) 500 million shares authorized; 308 million shares and 265 million shares outstanding at December 31, 2002 and 2001, respectively. Dominion '02 Annual Report 27

  • Page 30
    ... of stock-public offering Issuance of stock-employee, executive loan and direct stock purchase plans Stock awards and stock options exercised (net of change in unearned compensation) Stock repurchase and retirement Accrued contract payments-equity-linked securities Comprehensive income Dividends and...

  • Page 31
    ... effect of a change in accounting principle, net of tax benefit of $106 Amounts reclassified to net income: Realized (gains) losses on investment securities, net of tax expense (bene... 11 (9) 4 (183) - 9 (4) (16) - - (8) (735) $ 627 (8) 32 312 $ 856 3 - (8) $428 Dominion '02 Annual Report 29

  • Page 32
    ... tax credits, net Changes in: Accounts receivable Inventories Deferred fuel and purchased gas costs, net Prepaid pension cost Purchase and origination of mortgages Proceeds from sale and principal collections of mortgages Accounts payable, trade Accrued interest, payroll and taxes Margin deposit...

  • Page 33
    ...) remain unchanged until July 2007 unless modified or terminated consistent with that Act. The capped rates and wires charges that, where applicable, are being assessed to customers opting for alternative suppliers allow Dominion to recover certain generation-related costs; '02 Annual Report 31

  • Page 34
    ... of Dominion's electric utility operations in Virginia is open to competition and is no longer subject to cost-based rate regulation. As a result, there is increased pressure to lower costs, including the cost of purchased electricity. Because Dominion's electric utility generation business has...

  • Page 35
    ... overall economic conditions. Dominion Delivery's electric and gas businesses are subject to cost-of-service rate regulation; changes in prices of commodities consumed or delivered are generally recoverable in rates charged to customers. However, certain rates may be subject to price caps, limiting...

  • Page 36
    ... conditions or using different assumptions. Accounting for Risk Management and Energy Trading Contracts At Fair Value Dominion uses derivative instruments to manage its commodity and financial market risks. In addition, Dominion purchases and sells commodity-based contracts in the natural gas...

  • Page 37
    ... federal or state cost-of-service rate regulation may differ from accounting methods generally applied by nonregulated companies. When the timing of cost recovery prescribed by regulatory authorities differs from the timing of expense recognition used for accounting purposes, Dominion's Consolidated...

  • Page 38
    ... of favorable weather conditions and growth in customer base. Nonregulated electric sales by Dominion's merchant generation ï¬,eet declined primarily due to lower electricity prices, partially offset by sales from recently acquired and constructed assets. Sales of gas and oil production increased...

  • Page 39
    ... gas sales revenue decreased $351 million. The decrease included a $239 million decrease in sales by Dominion's field services and retail energy marketing operations, reï¬,ecting to a large extent declining prices. Revenue associated with gas trading operations, net of related cost of sales...

  • Page 40
    ... to fair value accounting. During 2002, the Clearinghouse also held derivative financial contracts to manage the price risk of certain anticipated sales of Dominion Exploration & Production's 2002 and 2003 natural gas production (economic hedges). Dominion did not designate these derivatives as...

  • Page 41
    ... service in connection with the switch by distribution customers to other natural gas suppliers. The migration of customers does not generally affect net income, as the recognition of the cost of gas delivered for regulated gas sales customers is matched against rate recoveries. Other operations...

  • Page 42
    ... and contractor costs. Purchases of gas and oil for brokered sales decreased in 2001. Corporate and Other 2002 2001 2000 Operating revenue Operating expenses Net income contribution Earnings per share contribution Gas production (bcf) Oil production (million bbls) Average realized prices with...

  • Page 43
    ... electric energy in the event of longer-than-expected or unscheduled generation outages; â- contractual or regulatory restrictions on transfers of funds among Dominion and its subsidiaries; and â- timeliness of recovery for costs subject to cost-of-service utility rate regulation. External Sources...

  • Page 44
    ...has a liquidation preference of $100 per share plus accumulated and unpaid dividends. During 2002, Virginia Power used the proceeds from the sale of trust preferred securities to redeem its variable rate preferred stock October 1988 Series, June 1989 Series, September '02 Annual Report 42 Dominion

  • Page 45
    ... offerings. Net proceeds were used for general corporate purposes, principally repayment of debt. The remainder of the shares issued and proceeds received during 2002 occurred through Dominion Direct® (a dividend reinvestment and open enrollment direct stock purchase plan), employee savings plans...

  • Page 46
    ...term) or preferred securities, the Dominion Companies must enter enabling agreements. These agreements contain covenants that, in the event of default, could result in the acceleration of principal and interest payments; restrictions on distributions related to its capital stock, including dividends...

  • Page 47
    ... any type of credit rating or stock price trigger events. In February 2003, pursuant to the terms of its lease agreement, Dominion purchased the electric generation facility under construction in Dresden, Ohio for $266 million. This amount was included in total project costs of $1.6 billion as...

  • Page 48
    ...end of the capped rate period, any default service provided by Dominion will be based upon competitive market prices for electric generation services. The Virginia Commission has opened a proceeding to determine the components of default service in Virginia. North Carolina-The North Carolina General...

  • Page 49
    ... During the Transition to a Competitive Electric Marketplace in Virginia As previously discussed, Dominion will recover generationrelated costs through capped rates and wires charges, where applicable, assessed to those customers opting for alternative suppliers during the transition period, which...

  • Page 50
    ... managing the cost of its generation-related operations, Dominion may also seek opportunities to sell available electric energy and capacity to customers beyond its electric utility service territory. Using cash ï¬,ows from operations during the transition period, Dominion may further alter its cost...

  • Page 51
    ... tariff authorized by FERC but has agreed not to make wholesale power sales under this tariff to loads located within its service territory. In February 2002, Dominion's electric utility subsidiary received FERC approval of a tariff to sell wholesale power at capped rates based on its embedded cost...

  • Page 52
    ... includes electric service territories of the upper Midwest and is home to Dominion's Kincaid, State Line, and Elwood generating facilities. The target region extends east to Virginia Power's service territory and north to New England, where Dominion operates its Millstone power station. Dominion is...

  • Page 53
    ... Air Act at the Mt. Storm Power Station. Virginia Power also received notices from the Attorneys General of Connecticut and New Jersey of their intentions to file suit for similar violations. In December 2002, the Attorney General of Connecticut filed a motion to intervene as a '02 Annual Report...

  • Page 54
    ... from Millstone's operations, resulting from fewer planned outage days and more favorable sales prices; â- Expected Six Sigma cost savings; â- Potential decrease in regulated electric sales, as compared to 2002, assuming Dominion's utility service territories experience a return to normal weather...

  • Page 55
    ... the cost of providing benefits over employees' service period, it permits the delayed recognition of certain elements of retirement plan results. Dominion has reviewed the assumption used for expected long-term rate of return on plan assets to better reï¬,ect anticipated future market conditions...

  • Page 56
    ...energy and to manage related risks, Dominion manages a portfolio of commodity-based derivative instruments held for trading purposes. These contracts are sensitive to changes in the prices of natural gas, electricity and certain other commodities. Dominion uses established policies and procedures to...

  • Page 57
    ...2002 and $91 million for 2001. Risk Management Policies Dominion is subject to investment price risk due to marketable securities held as investments in decommissioning trust funds. In accordance with current accounting standards, these marketable securities are reported on the Consolidated Balance...

  • Page 58
    ... electricity and natural gas off-system. CNG operates in all phases of the natural gas business. Its regulated retail gas distribution subsidiaries serve approximately 1.7 million residential, commercial and industrial gas sales and transportation customers in Ohio, Pennsylvania and West Virginia...

  • Page 59
    ... on a straight-line basis over the stated vesting period of the award. See Note 24 for more information on stock-based awards. Current banking arrangements generally do not require checks to be funded until actually presented for payment. At December 31, 2002 and 2001, accounts payable included the...

  • Page 60
    .... For electric and gas distribution and transmission property subject to cost-of-service utility rate regulation, the cost of such property and related cost of removal, less salvage, are charged to accumulated depreciation at retirement. For generation-related property, cost of removal is charged to...

  • Page 61
    ... interest rate to be paid to investors participating in the securitizations. The determination of cash proceeds was also affected by estimates of prepayments, credit losses, servicing costs and non-refundable fees and premiums. Gains and losses realized on the sale of loans were recognized based on...

  • Page 62
    ...lives of the new issues. 3 Accounting Change for Pension Costs Effective January 1, 2000 and in connection with Dominion's acquisition of CNG, Dominion adopted a new company-wide method of calculating the market-related value of pension plan assets used to determine the expected return on pension...

  • Page 63
    ... order to finance and lease several new power generation projects, as well as its corporate headquarters and aircraft. Under existing accounting guidance, neither the project assets nor related obligations are currently reported on Dominion's Consolidated Balance Sheets. As these variable interest...

  • Page 64
    ...of operations or financial position. Future Accounting Changes FASB's standard-setting process is ongoing. Some of the projects currently on FASB's agenda include: financial instruments, revenue recognition and procedures related to the purchase method of accounting used for business combinations...

  • Page 65
    .... State Line's assets include a 515-megawatt coal-fired generation facility located near Hammond, Indiana. Its operations are included in the Dominion Energy operating segment. Louis Dreyfus Natural Gas Corp. In January 2000, Dominion acquired all of the outstanding shares of CNG and accounted for...

  • Page 66
    ...regulated retail natural gas sales and related distribution services. Nonregulated electric sales consist primarily of sales of electricity from utility, independent power production and merchant nuclear plant resources at market-based rates and net operating revenue from electric trading activities...

  • Page 67
    ..., a voluntary early retirement program (ERP) and a transition plan to consolidate operations after the CNG acquisition. For the year ended December 31, 2000, Dominion recorded $460 million of restructuring and acquisition-related costs, including those incurred from exiting certain businesses of DCI...

  • Page 68
    ... the mortgage interest rate environment at the time of the assessment. In light of actual credit loss experience and actual prepayment activity of certain mortgage and commercial loans in the securitization trusts, Dominion increased its credit loss and prepayment speed assumptions used to estimate...

  • Page 69
    ...from: Utility plant differences Preferred dividends Amortization of investment tax credits Nonconventional fuel credit Other benefits and taxes related to foreign operations State taxes, net of federal benefit Goodwill amortization Employee pension and other benefits Employee stock ownership plan...

  • Page 70
    ... 2002 and 2001, stored gas inventory used in local gas distribution operations was valued at $52 million and $84 million, respectively, under the last-in-first-out (LIFO) method. Based on the average price of gas purchased during 2002, the current cost of replacing the current portion of stored gas...

  • Page 71
    ... balance. (3) Assets rated Caa1 and lower are defaulted using a cumulative default rate (CDR) vector based upon Moody's Cumulative Default Rates for Caa1-C securities. A 2 percent per annum CDR is applied to remaining assets with ongoing recoveries of 40 percent and 80 percent on bonds and loans...

  • Page 72
    ... to ï¬,uctuations in commodity prices and interest rates. Accounting Policy Dominion uses derivative instruments to manage the commodity and financial market risks of its business operations. Dominion manages the price risk associated with purchases and sales of electricity, natural gas and oil by...

  • Page 73
    .... Gains and losses on derivatives designated as hedges, when recognized, are included in operating revenue, expenses or interest and related charges in the Consolidated Statements of Income. Specific line item classification is determined based on the nature of the risk underlying individual hedge...

  • Page 74
    ... power plant, once operations have ceased, in accordance with standards established by the NRC. Through June 2007, amounts are being collected from Virginia jurisdictional ratepayers and placed in external trusts and invested to fund the expected costs of decommissioning the Surry and North Anna...

  • Page 75
    ... and the funds being collected and deposited in the external trusts. Beginning in March 2003, Dominion expects to substitute a guarantee to replace the surety bonds currently being utilized. Insurance The Price-Anderson Act limits the public liability of a nuclear plant owner to $9.5 billion for...

  • Page 76
    ... available to NEIL. The current policy period's maximum assessment is $29 million. Old Dominion Electric Cooperative, a part owner of the North Anna Power Station, and Massachusetts Municipal Wholesale Electric Company and Central Vermont Public Service Corporation, part owners of Millstone's Unit...

  • Page 77
    Dominion's proportionate share of jointly-owned utility plants at December 31, 2002 follows: Bath County Pumped Storage Station (millions, except percentages) North Anna Power Station Clover Power Station of impairment. The discontinuance of goodwill amortization under SFAS No. 142 resulted in an ...

  • Page 78
    ...electric customers' fuel rates. (4) In 2001 the Public Utilities Commission of Ohio authorized the deferral of costs associated with certain uncollectible customer accounts not contemplated by current rates. Dominion expects recovery of such costs, which will be included in Dominion's next base rate...

  • Page 79
    ... Natural Gas Company: Senior notes 5.375% to 7.375%, due 2003 to 2027 6.48% 6.875%, due 2026(2) Senior subordinated debt, 9.25% due 2004 Virginia Electric and Power Company: First and refunding mortgage bonds, 6.0% to 8.625%, due 2002 to 2025 (3) 7.56% Senior and medium-term notes Variable rates...

  • Page 80
    ... for issuance in connection with the stock purchase contracts. Selected information about Dominion's equity-linked debt securities is presented below: Senior Notes Annual Interest Rate Stock Purchase Contract Annual Rate Date of Issuance (millions, except percentages) 2000 2002 Units Issued Total...

  • Page 81
    ...the payment of amounts by Dominion, Virginia Power or CNG when they are due on the junior subordinated debt instruments. If the payment on the junior subordinated notes is deferred, the company that issued them may not make distributions related to its capital stock, including dividends, redemptions...

  • Page 82
    ...equity offerings. Net proceeds were used for general corporate purposes, principally repayment of debt. The remainder of the shares issued and proceeds received in 2002 occurred through Dominion Direct® (a dividend reinvestment and open enrollment direct stock purchase plan), employee savings plans...

  • Page 83
    Stock-Based Awards The adjacent table provides a summary of changes in amounts of Dominion stock options outstanding as of and for the years ended December 31, 2002, 2001 and 2000. Generally, the exercise price of Dominion employee stock options equals the market price of Dominion common stock on ...

  • Page 84
    ... Dreyfus. Dominion's ability to pay dividends on its common stock at declared rates was not impacted by the restrictions discussed above during 2002, 2001 and 2000. The Virginia Commission may prohibit any public service company, including Virginia Power, from declaring or paying a dividend to an...

  • Page 85
    ... benefit obligation for these plans was $88 million and $94 million at December 31, 2002 and 2001, respectively. The additional minimum liability recognized relating to these plans was $34 million and $33 million at December 31, 2002 and 2001, respectively. Dominion '02 Annual Report 83

  • Page 86
    ... cost trend rates have a significant effect on the amounts reported for the health care plans. A onepercentage-point change in assumed health care cost trend rates would have the following effects: Other Postretirement Benefits Pension Benefits Service cost Interest cost Expected return on plan...

  • Page 87
    ...to the power purchase contracts which were terminated and resulted in a charge included in operation and maintenance expense. Fuel Purchase Commitments Dominion enters into long-term purchase commitments for fuel used in electric generation and natural gas for purposes other than trading. Estimated...

  • Page 88
    ...-related markets, including natural gas, electricity and oil. These agreements may cover current and future periods. The volume of these transactions varies from day to day, based on market conditions. See Note 15 for a discussion of Dominion's energy trading activities and risk management policies...

  • Page 89
    ...a Section 114 request for information about whether projects undertaken at Virginia Power's Chesterfield, Chesapeake, Yorktown, Possum Point and Bremo Bluff power stations were properly permitted under the Clean Air Act's New Source Review requirements, to which Virginia Power responded in a timely...

  • Page 90
    ... generation services market exists in Dominion's service area. Dominion believes capped electric retail rates and, where applicable, wires charges provided under the Virginia Restructuring Act provide an opportunity to recover a portion of its potentially stranded costs, depending on market prices...

  • Page 91
    ... held as margin deposits. Presented below is a summary of Dominion's gross and net credit exposure as of December 31, 2002. The amounts presented exclude accounts receivable for retail electric and gas sales and services, regulated transmission services and Dominion's provision for credit losses. At...

  • Page 92
    ... primarily of generating units and power purchase agreements. It also manages Dominion's energy trading and marketing, hedging and arbitrage activities; and gas pipeline and certain gas production and storage operations. Dominion Delivery manages Dominion's electric and gas distribution systems, as...

  • Page 93
    ... segment information pertaining to Dominion's operations: Dominion Energy (millions) Dominion Delivery Dominion E&P Corporate and Other Adjustments & Eliminations Consolidated Total 2002 Total revenue from external customers Intersegment revenue Total operating revenue Interest and related charges...

  • Page 94
    ... and corporate overhead. 2002 Total (millions) United States Canada Total 2001 United States Canada Total 2000 United States Canada Revenue (net of royalties) from: Sales to nonaffiliated companies Transfers to other operations Total Less: Production (lifting) costs Depreciation, depletion and...

  • Page 95
    ... At January 1 Changes in reserves: Extensions, discoveries and other additions Revisions of previous estimates Production Purchases of gas in place Sales of gas in place At December 31 Proved developed reserves-Gas 4,090 3,517 573 2,337 1,858 479 1,114 600 514 874 158 (399) 381 (6) 5,098...

  • Page 96
    .... Dominion cautions that the disclosures shown are based on estimates of proved reserve quantities and future production schedules which are inherently imprecise and subject to revision, and the 10 percent discount rate is arbitrary. In addition, costs and prices as of the measurement date are used...

  • Page 97
    ... Common stock prices (high-low) $3,198 496 162 0.66 0.65 0.645 $68-55.31 $2,309 518 155 0.63 0.62 0.645 $69.99-59.47 $2,544 780 344 1.38 1.37 0.645 $64.15-55.13 $2,507 (9) (117) (0.45) (0.45) 0.645 $62.97-55.30 $10,558 1,785 544 2.17 2.15 2.58 Dominion '02 Annual Report 95

  • Page 98
    ... States of America. Other financial information in the annual report is consistent with that in the Consolidated Financial Statements. Management maintains a system of internal controls designed to provide reasonable assurance, at a reasonable cost, that Dominion's and its subsidiaries' assets are...

  • Page 99
    ... used to develop the market-related value of pension plan assets in 2000. Richmond, Virginia January 21, 2003 (February 19, 2003 as to the last two paragraphs of the Lease Commitments section of Note 27 and February 21, 2003 as to the last three paragraphs of Note 30) Dominion '02 Annual Report...

  • Page 100
    ... 66 Optometrist Richard L. Leatherwood, 63 Retired President and Chief Executive Officer, CSX Equipment Margaret A. McKenna, 57 President, Lesley University Steven A. Minter, 64 President and Executive Director, The Cleveland Foundation (community foundation) 98 Dominion '02 Annual Report

  • Page 101
    ... Mary C. Doswell, 44 Senior Vice President and Chief Administrative Officer (President, Dominion Resources Services) Eva S. Hardy, 58 Senior Vice President-External Affairs & Corporate Communications G. Scott Hetzer, 46 Senior Vice President and Treasurer Dominion '02 Annual Report 99

  • Page 102
    ...- 4034 (toll free) 1-804-775-2500 Annual Meeting The 2003 Annual Meeting of Shareholders of Dominion Resources, Inc. will be held Friday, April 25 at 9:30 a.m. at Dominion's Innsbrook Technical Center located at 5000 Dominion Boulevard, Glen Allen, Virginia. Corporate Street Address Major press...

  • Page 103
    ..., Inc., New York, New York Photography: Cameron Davidson (cover and most inside pages); Mark Mitchell (page 2); Doug Buerlein (page 13 bottom, page 19 bottom, page 20 top, page 21); Michael Terranova (page 16); Andrea Pistolesi / FoodPix / Getty Images (page 5 top). Dominion '02 Annual Report

  • Page 104
    Dominion Resources, Inc. ' 0 2 A n n u a l R e po r t Dominion Resources, Inc. P.O. Box 26532 Richmond, Virginia 23261-6532 www.dom.com