Dominion Power 2003 Annual Report Download - page 94

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92.Dominion 2003
Notes to Consolidated Financial Statements, Continued
Remaining DCI Assets
Dominion is required by the SEC under the 1935 Act to divest of
all remaining DCI investment holdings by December 31, 2006.
Dominion’s Consolidated Balance Sheet reflects the following DCI
assets as of December 31, 2003:
(millions)
Current assets $38
Available for sale securities 413
Other long-term investments 122
Property, plant and equipment, net 26
Deferred charges and other assets 69
Total $668
28. Operating Segments
As a result of changes in the management reporting structure dur-
ing the fourth quarter of 2003, the nature and composition of
Dominion’s primary operating segments have changed, as follows:
• Dominion’s electric generation operations, formerly in the
Dominion Energy segment, have been presented as a separate
segment, Dominion Generation;
• Dominion retail energy marketing operations, formerly in the
Dominion Energy segment, have been included in the Dominion
Delivery segment and
• DFV and related discontinued operations, formerly in the
Dominion Delivery segment, have been included in the Corporate
and Other segment.
All segment information for prior years has been recast to
conform to the new segment structure. Dominion segments are
as follows:
Dominion Generation includes the generation operations of
Dominion’s electric utility and merchant fleet.
Dominion Energy includes Dominion’s electric transmission,
natural gas transmission pipeline and storage businesses, certain
natural gas production, as well as Clearinghouse (energy trading
and marketing) and field services (aggregation of gas supply and
related wholesale activities) operations.
Dominion Delivery includes Dominion’s electric and gas dis-
tribution systems and customer service operations, as well as
retail energy marketing operations.
Dominion Exploration & Production includes Dominion’s gas
and oil exploration, development and production operations.
Operations are located in several major producing basins in the
lower 48 states, including the outer continental shelf and deep-
water areas of the Gulf of Mexico, and Western Canada.
Corporate and Other includes the operations of DCI, DFV
and related telecommunications operations, and Dominion’s cor-
porate, service company and other operations (including unallo-
cated debt). In addition, the contribution to net income by
Dominion’s primary operating segments is determined based
upon a measure of profit that executive management believes
represents the segments’ “core” earnings. As a result, certain spe-
cific items attributable to those segments are not included in profit
measures evaluated by executive management in assessing the
segments’ performance or allocating resources among the seg-
ments. Those specific items are reported in the Corporate and
Other segment and include:
• 2003 cumulative effect of changes in accounting principles;
• 2003 incremental restoration expenses associated with
Hurricane Isabel;
• 2003 charges for the termination of a power purchase
contract and restructuring of certain electric sales contracts;
• 2003 severance costs for workforce reductions;
• 2001 restructuring activities;
• 2001 charge for credit exposure associated with the
bankruptcy of Enron
• 2001 charge related to the termination of certain long-term
power purchase contracts.
Intersegment sales and transfers are based on underlying
contractual arrangements and agreements and may result in
intersegment profit or loss.