Dominion Power 2003 Annual Report Download

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Annual Report 2003

Table of contents

  • Page 1
    Annual Report 2003

  • Page 2
    Dominion Resources is one of the nation's leading energy companies. We're traded under the symbol "D" on the New York Stock Exchange and are proud to have the confidence of more than 400,000 shareholders. We're also privileged to serve 5.3 million retail energy customers in nine states. As one of ...

  • Page 3
    1 Dominion 2003

  • Page 4
    Thos. E. Capps Chairman and Chief Executive Officer Dominion Resources We want that kind of feedback. We love it. 2. Dominion 2003

  • Page 5
    ... of poles and transformers and string nearly a thousand miles of wire. also friends, neighbors and even fellow investors. Weeks after the storm, on Halloween, we got a photo by e-mail from a proud mother and customer whose little boy dressed up as a Dominion Virginia Power "bucket truck guy...

  • Page 6
    ... by a massive storm cleanup, restructuring costs or an investment gone bad. Gains created by asset sales or accounting changes also are excluded. Last year, excluding certain items, we fell short of operating earnings targets of $4.60 to $4.70 per share by reporting 2003 operating earnings of $4.55...

  • Page 7
    ... 600,000 customers were restored to power during the first 24 hours after Hurricane Isabel. By the end of the two-week restoration effort, the company had replaced thousands of utility poles, cross-arms, spans of wire and transformers. The likes of Isabel don't come around often. 5. Dominion 2003

  • Page 8
    ... of 15 percent. This includes At Dominion, we pay officers and middle management to strike a reasonable balance between making their annual earnings and productivity goals and sound Stable, Well-Covered Dividend Dollars Per Share 5.00 2003 Operating Earnings Hedged unregulated earnings provide...

  • Page 9
    ... the company pay out a steady dividend? Does it have growing cash flow and increasing earnings? Does its business plan ring true? Does it have a strong balance sheet and financial flexibility? Let's look at how Dominion did in 2003 compared with the pack. Our 21-percent year-end total return trailed...

  • Page 10
    ... risks, invest our cash flow wisely and operate superbly. Operating Earnings Operating Cash Flow Operating Earnings Based on Non-GAAP Financial Measures See page 24. Electric Franchise Area Natural Gas Franchise Area Corporate Headquarters Richmond, Virginia Service Areas 8. Dominion 2003

  • Page 11
    ... pipelines and retail distribution. Our Dominion Delivery business manages our distribution wires and pipes that serve about 3.9 million customers in five states, and Dominion Retail's 1.4 million customers in eight states. Delivery generated about 26 percent of our 2003 operating segment earnings...

  • Page 12
    ... million in 2003, up about 4 per* Includes reserves owned by the Exploration & Production segment and Dominion Transmission, Inc. cent compared with a year earlier. Page 24 also shows a comparison of these operating segment earnings to our reported earnings under GAAP. Reliable Production At Our...

  • Page 13
    ... to press, Virginia legislators were studying the possibility of a rate-cap extension. At our natural gas-utility service areas in Ohio, West Virginia and Pennsylvania, which serve about 1.7 million retail customers, we still operate under stable forms of traditional regulation. 11. Dominion 2003

  • Page 14
    ... customer- supply obligations, forward sales contracts with credit-worthy institutions and financial hedges, which are agreements to sell energy at a certain price on a future date. By the end of 2003, we had matched 90 percent of our electric generation with our retail and wholesale customers...

  • Page 15
    ... Retail Energy Customers Millions of Customer Accounts 2000 4 2001 3.8 2002 3.9 2003 3.9 3.8 3 2 1.4 1 0.7 0.8 1.0 0 Regulated Nonregulated Left: The Dominion Energy Clearinghouse, headquartered in Richmond, Virginia, is Dominion's energy trading and marketing operation, and...

  • Page 16
    ... Cove Point facility. Natural Gas Transmission Pipelines Natural Gas Transmission Pipelines (Partnership) Natural Gas Underground Storage Pools Cove Point LNG Facility Electric Transmission Lines (Bulk delivery) Gas Transmission Pipelines and Storage/Electric Transmission Lines 14. Dominion 2003

  • Page 17
    ... the trading middleman. Below: Possum Point's new Unit 6, fueled mainly by natural gas, will play a significant role in providing reliable energy while helping improve the region's air quality. Wise Investing: Adding to our Btu Balance Sheet Assets In addition to our construction at Fairless Works...

  • Page 18
    ... Natural Gas Elwood State Line Troy Dresden Morgantown Pleasants Kincaid Gordonsville Bath Bremo Chesterfield Clover Mt.Storm Armstrong Millstone Fairless Works Remington Possum Point North Anna Ladysmith Yorktown Surry Chesapeake Planned Acquisitions Nuclear Roanoke Rapids Gaston capability by...

  • Page 19
    ... containment wall during vessel head installation. Above: The old vessel head is removed. Below: The new head was designed and fabricated by Mitsubishi Heavy Industries in Kobe, Japan. Long-time Dominion investors know we rank among the top three operators of nuclear plants in the nation. When...

  • Page 20
    ... in 2001 with our purchase of Louis Dreyfus Natural Gas. Time is money in Sonora - the faster you can get the gas out, the quicker it goes to market, the sooner sales hit the cash register. Our seasoned gas pros are using Six Sigma techniques to promote faster drilling. Lately, they've been racing...

  • Page 21
    An example at our Sonora natural gas properties in west Texas brings clear meaning to the term "process improvement." The average depth of a Sonora Field well in west Texas is 7,500 feet. 19. Dominion 2003

  • Page 22
    ... in part to a critical role that Dominion's high-voltage transmission assets and generating stations in the north and south played in helping to contain the blackout and return power. Our Millstone Power Station, said the chairman of Connecticut's Department of Public Utility Control, "stood as...

  • Page 23
    ... want to close my letter with a word about our customer goodwill balance sheet. In the hours, days and weeks after Isabel, I heard countless times about Dominion employees leaving behind their families in the dark so they could get the lights back on for others. Workers not usually involved in storm...

  • Page 24
    We showcased our company, our accomplishments and our New York Stock Exchange symbol in a Wall Street ad campaign. HAVE YOU SEEN D TODAY? NYSE: D FIND OUT MORE ABOUT THE ENERGY COMPANY THAT HAS PAID 304 CONSECUTIVE DIVIDENDS SINCE 1925. www.dom.com 22. Dominion 2003

  • Page 25
    ... to the little boy dressed up as a "bucket truck guy." Give us a call someday, son. There could be a good job with your name on it. Sincerely, Gifted Senior Management Each day, the company's gifted senior management team proves the best way to manage is to surround yourself with smart people, set...

  • Page 26
    ... Activities Common dividend payments Debt repayments net of issuances Common stock issuances Direct stock purchase, savings and dividend reinvestment plans Conversion of equity-linked debt securities Kewaunee acquisition Net cash used in financing activities Net Change in Cash Free Cash Flow...

  • Page 27
    ... Mid-Atlantic service areas in Ohio, Pennsylvania, West Virginia, Virginia and North Carolina, and up through New York and New England. The MAIN-to-Maine region is home to approximately 40% of the nation's demand for energy. Operating in all aspects of the energy supply chain positions Dominion to...

  • Page 28
    ..., nuclear, gas, oil, hydro and purchased power. Dominion's strategy for its electric generation operations focuses on serving customers in the MAIN to Maine region. Its generation facilities are located in Virginia, West Virginia, North Carolina, Connecticut, Illinois, Indiana, Pennsylvania and Ohio...

  • Page 29
    ...timing of development projects, as well as external factors such as severe weather. Dominion manages commodity price volatility by hedging a substantial portion of its near term expected production. Variability in Dominion Exploration & Production's expenses relates primarily to changes in operating...

  • Page 30
    ... are discounted using its credit-adjusted risk free rate. AROs currently reported on Dominion's Consolidated Balance Sheet were measured during a period of historically low interest rates. The impact on measure28. Dominion 2003 Dominion sponsors noncontributory defined benefit pension plans and...

  • Page 31
    ... Change in Assumption (0.25%) (0.25%) 1% Pension Benefits (millions) $12 10 N/A Other Postretirement Benefits $ 6 1 22 Accounting for gas and oil operations Discount rate Rate of return on plan assets Healthcare cost trend rate Accounting for regulated operations Methods of allocating costs...

  • Page 32
    ... new power generation projects, as well as its corporate headquarters and aircraft. As a result, the Consolidated Balance Sheet as of December 31, 2003 reï¬,ects an additional $644 million in net property, plant and equipment and deferred charges and $688 million of related debt. 30. Dominion 2003

  • Page 33
    ...the benefits of higher natural gas prices during 2003 on sales of Dominion's gas and oil production as well as margins associated with gas trading activities. See Note 28 to the Consolidated Financial Statements for information about Dominion's operating segments. This increased contribution by the...

  • Page 34
    ... Power Station in 2003 and a full year's sales from generating units placed into service during 2002; • A $76 million increase in retail energy sales, primarily as a result of customer growth, including the acquisition of new customers previously served by other energy companies during 2003...

  • Page 35
    ... from retail energy sales, reï¬,ecting primarily customer growth over the prior year and • A $33 million increase in Clearinghouse electric revenue, net of applicable trading purchases, reï¬,ecting the effect of favorable price changes on unsettled contracts and higher margins. 33. Dominion 2003

  • Page 36
    ...261 million decrease in sales by Dominion's field services and retail energy marketing operations, reï¬,ecting to a large extent declining prices and • A $51 million decrease in Clearinghouse gas revenue, net of applicable trading purchases, due to unfavorable price changes on unsettled contracts...

  • Page 37
    ...to customer growth in the electric franchise service area, primarily reï¬,ecting an increase in new residential customers; • Scheduled decreases in capacity expenses under certain power purchase agreements; • Recognition of previously deferred fuel costs in connection with the Virginia fuel rate...

  • Page 38
    ...production described in Selected Information-Energy Trading Activities below; • A change in the allocation of electric base rate revenue among Dominion Generation, Dominion Energy and Dominion Delivery effective January 1, 2003; • An increase in electric transmission contribution due to customer...

  • Page 39
    ...-related derivative instruments held for trading purposes, including the economic hedges, during 2003 follows: Amount (millions) Dominion Delivery Dominion Delivery includes Dominion's electric and gas distribution and customer service business, as well as retail energy marketing operations. 2003...

  • Page 40
    ... Trading Activities. (2)Excludes $43 million of revenue recognized in 2003 under the volumetric production payment agreement described in Note 12 to the Consolidated Financial Statements. Presented below are the key factors impacting Dominion Exploration & Production's operating results: 2003 vs...

  • Page 41
    ... & Production ($1 million aftertax) and • Corporate and other ($1 million after-tax); Specific Items Attributable to Operating Segments - 2001 • A $136 million after-tax charge related to the termination of certain long-term power purchase contracts attributable to Dominion Generation. DCI...

  • Page 42
    ... catastrophic damage to Dominion's electric distribution and transmission systems; • Exposure to unanticipated changes in prices for energy commodities purchased or sold, including the effect on derivative instruments that may require the use of funds to post margin deposits with counterparties...

  • Page 43
    ... of $683 million resulted from a public offering. The remainder of the shares issued and proceeds received were through Dominion Direct ® (a dividend reinvestment and open enrollment direct stock purchase plan), employee savings plans and the exercise of employee stock options. 41. Dominion 2003

  • Page 44
    ...notes due 2033. In addition to the senior notes described above, Dominion borrowed $18 million to complete a power generation project at Virginia Power's Possum Point power station. In January 2004, Dominion Resources, Inc. issued $100 million of variable rate senior notes due 2006 and $200 million...

  • Page 45
    ... the sale of securities, primarily related to investments held in nuclear decommissioning trusts; • $633 million for purchase of DFV senior notes; • $385 million in advances related to a generation project under construction in Pennsylvania. The asset, when completed, will be leased to Dominion...

  • Page 46
    ...to all of its Virginia regulated electric customers as of January 1, 2003. Base Rates As of December 31, 2003, Dominion was party to an agreement with a voting interest entity (lessor) in order to construct and lease a new power generation project in Pennsylvania. Project costs totaled $695 million...

  • Page 47
    ... a new PJM South Region and integrate its control area into the PJM energy markets. The agreement also allocates costs of implementation of the agreement among the parties. In June 2003, Dominion made a filing as required by the Virginia Restructuring Act requesting authorization from the Virginia...

  • Page 48
    ... of Operations, Continued Changes to Cost Structure While the Virginia Restructuring Act did not define specific generation-related costs to be recovered, it did provide for generation-related cash ï¬,ows (through the combination of capped rates and wires charges billed to customers) through...

  • Page 49
    ... in 2000 from the Environmental Protection Agency (EPA) and related proceedings, Virginia Power, the U.S. Department of Justice, the EPA, and the states of Virginia, West Virginia, Connecticut, New Jersey and New York agreed to a settlement in April 2003 in the form of a proposed Consent Decree. The...

  • Page 50
    ... of 2003, Dominion announced an agreement with Wisconsin Public Service Corporation, a subsidiary of WPS Resources Corporation (WPS), and Wisconsin Power & Light Company (WP&L), a subsidiary of Alliant Energy Corporation, to purchase the Kewaunee Power Plant, a nuclear power station in northeastern...

  • Page 51
    ... requirements and ratings; changes in accounting standards; collective bargaining agreements and labor negotiations; the risks of operating businesses in regulated industries that are becoming deregulated; the transfer of control over electric transmission facilities to a regional 49. Dominion 2003

  • Page 52
    ... on changes in the fuel factor, to suspending customer choice and returning to cost-based regulation. See Future Issues and Other Matters - Status of Deregulation in Virginia in MD&A and Note 23 to the Consolidated Financial Statements for additional information. Dominion's merchant power business...

  • Page 53
    ..., the bankruptcy of an unrelated energy company or changes to Dominion's credit ratings. Restrictions on Dominion's ability to access financial markets may affect its ability to execute its business plan as scheduled. Changing rating agency requirements could negatively affect Dominion's growth...

  • Page 54
    ...operations before extraordinary item and cumulative effect of changes in accounting principles per common share - diluted Net income per common share - diluted Dividends paid per share Total assets Long-term debt Preferred securities...,683 10,101 385 1.48 1.48 2.58 19,132 6,936 385 52. Dominion 2003

  • Page 55
    ... at any time. Management recognizes its responsibility for fostering a strong ethical climate so that Dominion's affairs are conducted according to the highest standards of personal corporate conduct. This responsibility is characterized and reï¬,ected in Dominion's code of ethics, which addresses...

  • Page 56
    Independent Auditors' Report To the Shareholders and Board of Directors of Dominion Resources, Inc. Richmond, Virginia We have audited the accompanying consolidated balance sheets of Dominion Resources, Inc. and subsidiaries as of December 31, 2003 and 2002, and the related consolidated statements ...

  • Page 57
    ... and related charges: Interest expense Distributions - mandatorily redeemable trust preferred securities Subsidiary preferred dividends Total interest and related charges Income before income taxes Income tax expense Income from continuing operations before cumulative effect of changes in accounting...

  • Page 58
    ... supplies Fossil fuel Gas stored - current portion Derivative and energy trading assets Margin deposit assets Prepayments Escrow account for debt refunding Other Total current assets Investments Available for sale securities Nuclear decommissioning trust funds Other Total investments Property, Plant...

  • Page 59
    At December 31, (millions) 2003 2002 Liabilities and Shareholders' Equity Current Liabilities Securities due within one year Short-term debt Accounts payable, trade Accrued interest, payroll and taxes Derivative and energy trading liabilities Other Total current liabilities Long-Term Debt Long-...

  • Page 60
    ... offering Issuance of stock - employee 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 Tax benefit from stock options exercised Dividends and other...

  • Page 61
    ... sale of loans and securities Purchases of securities Escrow release (deposit) for debt refunding Purchase of Dominion Fiber Ventures senior notes Advances to lessor for project under construction Other Net cash used in investing activities Financing Activities Issuance of common stock Repurchase...

  • Page 62
    .... 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. Its interstate gas transmission pipeline...

  • Page 63
    ...the plans and approximately 12 million of these shares are available for new grants as of December 31, 2003. Dominion measures compensation cost for stock-based awards issued to its employees in accordance with Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees, and...

  • Page 64
    ... with unique characteristics, Dominion estimates fair value using a discounted cash ï¬,ow approach deemed appropriate in the circumstances and applied consistently from period to period. If pricing information is not available from external sources, judgment is required to develop the estimates...

  • Page 65
    ... of its fossil fuel power stations and electric transmission and distribution property based on depreciation studies that indicated longer lives were appropriate. In 2001, Dominion increased the estimate of the useful lives of its nuclear property by 20 years in connection with license extensions...

  • Page 66
    ... as costs of the related tangible long-lived assets. Due to the absence of relevant market information, fair value is estimated using discounted cash ï¬,ow analyses. Dominion reports the accretion of the liabilities due to the passage of time as an operating expense. In addition, beginning in 2003...

  • Page 67
    ...Dominion had constructed, financed and leased several new power generation projects, as well as its corporate headquarters and aircraft. As a result, the Consolidated Balance Sheet as of December 31, 2003 reï¬,ects an additional $644 million in net property, plant and equipment and deferred charges...

  • Page 68
    ...third party investors. Dominion received the proceeds from the sale of the trust preferred securities in exchange for various junior subordinated notes issued by Dominion to be held by the trusts. Upon adoption of FIN 46R, Dominion's Consolidated Balance Sheet at December 31, 2003 reports the junior...

  • Page 69
    ... testing under SFAS No. 142. Millstone Power Station In March 2001, Dominion acquired Millstone Power Station (Millstone), a nuclear power station located in Waterford, Connecticut. The aggregate purchase price was $1.3 billion in cash, consisting of approximately $1.2 billion for plant assets...

  • Page 70
    ... Utility plant differences (0.4) Preferred dividends 0.4 Amortization of investment tax credits (0.9) Nonconventional fuel credit - Other benefits and taxes related to foreign operations (0.5) Goodwill amortization - Employee pension and other benefits (0.7) Employee stock ownership plan deduction...

  • Page 71
    ... of prices contemplated by the underlying risk management strategies. In connection with the December 2, 2001 Enron bankruptcy filing, Dominion's Enron derivatives designated as cash ï¬,ow hedges of anticipated purchases and sales of natural gas no longer qualified for hedge accounting and...

  • Page 72
    ... investment, due to the Investor Trust's equity investment and veto rights. In the fourth quarter of 2003, Dominion purchased the Investor Trust's interest in DFV for $62 million, including $2 million for accrued dividends. This transaction was accounted for as a purchase of a minority interest and...

  • Page 73
    ...) 2003 Equity securities Debt securities $1,092 1,102 2,194 489 758 $1,247 (1) Beginning in 2003, after adopting SFAS No. 143, Dominion accounts for its utility decommissioning trust investments as available-for-sale. (2)For 2002, $5 million of net realized and unrealized pre-tax losses related to...

  • Page 74
    ... interest Plant in service Accumulated depreciation Nuclear fuel Accumulated amortization of nuclear fuel Construction work in progress 60.0% $1,019 360 17 1 Amortization rates for capitalized costs under the full cost method of accounting for Dominion's United States and Canadian cost centers...

  • Page 75
    ...of goodwill due to transfer of Dominion Retail operations from Dominion Energy to Dominion Delivery Balance at December 31, 2003 $1,472 1,472 Goodwill Impairments In 2003, Dominion recorded goodwill impairment charges of $18 million related to the DCI reporting unit. During 2003, a DCI subsidiary...

  • Page 76
    ... to Dominion's asset retirement obligations during 2003 were as follows: Amount (millions) (1) Costs recognized in excess of amounts included in regulated rates charged by Dominion's regulated gas operations before rates were updated to reï¬,ect the new method of accounting and the cost related to...

  • Page 77
    ... amount was recognized under prior accounting policies and is reported as an asset retirement obligation on the Consolidated Balance Sheet at December 31, 2002. 16. Short-Term Debt and Credit Agreements Joint Credit Facilities In May 2003 and 2002, Dominion, Virginia Power and CNG entered into two...

  • Page 78
    ... to 2007(5) Revolving Lines of Credit, Variable Rates, due 2003 to 2004 Dominion Capital, Inc.: Notes, 7 .6% to 12.5%, due 2003 to 2008 Note, Variable Rate, due 2003 Dominion Resources Services, Inc., Secured Bank Debt, Variable Rate, due 2006(5) Dominion Fiber Ventures, Secured Senior Note, 7 .05...

  • Page 79
    ... interest payments on the senior notes and quarterly payments on the stock purchase contracts at the rates described below. Dominion has recorded the present value of the stock purchase contract payments as a liability, offset by a charge to common stock in shareholders' equity. Interest payments on...

  • Page 80
    ... in dividends, or in special statutory proceedings and as required by Virginia law (such as mergers, consolidations, sales of assets, dissolution and changes in voting rights or priorities of preferred stock). In 2002, Virginia Power purchased and redeemed, at par, all shares of its variable rate...

  • Page 81
    ... 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, repurchases...

  • Page 82
    ... shares issued and proceeds received in 2003 occurred through Dominion Direct® (a dividend reinvestment and open enrollment direct stock purchase plan), employee savings plans and the exercise of employee stock options. Repurchases of Common Stock Dominion is authorized by its Board of Directors to...

  • Page 83
    ... Act, registered holding companies and their subsidiaries may pay dividends only from retained earnings, unless the SEC specifically authorizes payments from other capital accounts. Dominion received dividends from its subsidiaries of $1.1 billion, $945 million and $806 million in 2003, 2002 and...

  • Page 84
    ... to pay dividends or receive dividends from its subsidiaries at December 31, 2003. See Note 19 for a description of potential restrictions on dividend payments by Dominion and certain subsidiaries in connection with the deferral of distribution payments on trust preferred securities. 22. Employee...

  • Page 85
    ...fit pension plans was $2.7 billion and $2.4 billion at December 31, 2003 and 2002, respectively. Under its funding policies, Dominion evaluates plan funding requirements annually, usually in the third quarter after receiving updated plan information from its actuary. Based on the funded status of...

  • Page 86
    ... (millions) 2003 % of Total securities; 8% non-U.S. equity securities; 22% debt securities; and 25% other, such as real estate and private equity investments. Financial derivatives may be used to obtain or manage market exposures and to hedge assets and liabilities. Dominion's pension plans and...

  • Page 87
    ...with cash ï¬,ows matching the expected payments to be made under Dominion's plans. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects...

  • Page 88
    ... adoption of FIN 46R. As of December 31, 2003, Dominion was party to an agreement with a voting interest entity (lessor) in order to construct and lease a new power generation project in Pennsylvania. Project costs totaled $695 million at December 31, 2003 of which $624 million was advanced to the...

  • Page 89
    ... Claims against the DOE in connection with its failure to commence accepting spent nuclear fuel. Dominion will continue to safely manage its spent fuel until it is accepted by the DOE. Litigation Virginia Power and DTI are defendants in a class action lawsuit pending in the U.S. District Court...

  • 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
    ... environmental compliance requirements, changes in tax laws, inï¬,ation and increased capital costs. At December 31, 2003, Dominion's exposure to potentially stranded costs included: long-term power purchase contracts that could ultimately be determined to be above market; generating plants that...

  • Page 92
    ... for the sale of loans to the new CDO structure, the trusts received $243 million of subordinated secured 3% notes in the new CDO structure and $119 million in cash, which was used by the CLO trusts to redeem all of their outstanding senior debt securities. As of December 31, 2003, Dominion still...

  • Page 93
    ... by the financial services subsidiary are reported as other operations and maintenance expense. 2003 (millions) 2002 $11 - - - - 13 - - $24 2001 $ 21 81 - 64 - - 94 21 $281 On a quarterly basis, Dominion assesses for impairment its retained interests from CMO securitizations using the guidance...

  • Page 94
    ... assets Available for sale securities Other long-term investments Property, plant and equipment, net Deferred charges and other assets Total $ 38 413 122 26 69 $668 28. Operating Segments As a result of changes in the management reporting structure during the fourth quarter of 2003, the nature and...

  • Page 95
    ... information pertaining to Dominion's operations: Dominion Generation (millions) 2003 Total revenue from external customers ...Dominion Energy Dominion Delivery Dominion E&P Corporate and Other Adjustments & Eliminations Consolidated Total Total operating revenue Interest and related charges...

  • Page 96
    ... and corporate overhead. 2003 Total (millions) United States Canada Total 2002 United States Canada Total 2001 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 97
    ... developed and undeveloped reserves - Oil (thousands of barrels) At January 1 Changes in reserves: Extensions, discoveries and other additions Revisions of previous estimates Production Purchases of oil in place Sales of oil in place At December 31 Proved developed reserves - Oil At January 1 At...

  • Page 98
    ...and end of each year. 2003 (millions) 2002 2001 Standardized measure of discounted future net cash ï¬,ows at January 1 Changes in the year resulting from: Sales and transfers of gas and oil produced during the year, less production costs Prices and production and development costs related to future...

  • Page 99
    ...periods may ï¬,uctuate as a result of weather conditions, changes in rates and other factors. As described in Note 9, Dominion reported the operations of DTI as discontinued operations beginning in the fourth quarter of 2003. Prior quarters for 2003 have been restated to conform to this presentation...

  • Page 100
    ... Officer, Dominion Generation) Eva S. Hardy, 59 Senior Vice President - External Affairs & Corporate Communications G. Scott Hetzer, 47 Senior Vice President and Treasurer James L. Sanderlin, 62 Senior Vice President - Law Thomas R. Bean, 48 Vice President - Financial Management William C. Hall...

  • Page 101
    ... Direct Stock Purchase Plan You may buy Dominion common stock directly from the company through Dominion Direct. Please contact Shareholder Services for a prospectus and enrollment form or visit www.dom.com. Common Stock Listing New York Stock Exchange Trading symbol: D Common Stock Price Range 2003...

  • Page 102
    ... in 2003 due to Isabel. Tresha McLean works at the Richmond center. 2. Switching stations at each Dominion generating station transform voltage so electricity can travel through the company's 6,100-mile transmission system to its 2.2 million electric customers. 3. Dominion plans to join a regional...

  • Page 103
    © 2004 Dominion Resources, Inc. Richmond, Virginia Design: The Graphic Expression, Inc., New York, New York Printing: The Hennegan Company, Florence, Kentucky Financial Typography: Grid Typographic Services, Inc., New York, New York Cover Photography by Cameron Davidson, except top row: no.1 from ...

  • Page 104
    Dominion Resources, Inc. P.O. Box 26532 Richmond, Virginia 23261-6532 www.dom.com