Dominion Power 2002 Annual Report Download - page 6

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34.4
37.9
1 Year Total Return
3
Year Total Return
5
Year Total Return
Assets
Billions of Dollars
Per GAAP
Financial Statements.
2001 2002
0
20
40
Our natural gas and electric
power utilities serve a
growing base of 4 million
retail customers and about
1 million others in
deregulated retail markets.
4Dominion ’02 Annual Report
Volatility in National Energy Markets Difficult energy market and stock
market conditions played a key role in yet another volatile year.
As wholesale power markets collapsed, margins earned from energy
trading compressed substantially. More than 160,000 megawatts of new electric
generation nationally and more than 50,000 new megawatts being built in our
own markets were cancelled. Energy markets weakened further under the weight
of allegations of fraud and manipulation in California. As a result, some compa-
nies that specialize in building new generation and in energy trading now face
possible bankruptcy.
Through it all, though, we never got distracted from our core
businesses.
Vision, Fundamental Strengths Remain the Same Our vision is the same:
we continue to operate—and will grow to an even more substantial position—
as a profitable 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
marketplace. Roughly speaking, the region comprises about a quarter of the
nation’s land mass, but it accounts for 40 percent of the energy consumed.
Our strategy is the same: With $37.9 billion in assets, we have the
opportunity to earn profits at all points along what academics call the “value
chain” of the natural gas and electric power industries—wholesale production,
natural gas storage, regulated transportation and regulated retail utilities.
Through it all, we never
got distracted from our
core businesses.