Dominion Power 2004 Annual Report Download

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2004 Annual Report

Table of contents

  • Page 1
    2004 Annual Report

  • Page 2
    ...uid is optimum for current conditions at the site. 2. Tony Taylor prepares to secure a ship to the pier at Dominion Cove Point. 3. Brayton Point Power Station in Somerset, Massachusetts, is a 1,521-megawatt coal- and oil-fired facility. It's one of three power stations in New England added to our...

  • Page 3
    ... equity-reported Return on average common equity-operating* Common shares outstanding-average, diluted Common shares outstanding-year-end Number of full-time employees *Based on Non-GAAP Financial Measures. See pages 24 and 25. 11.8% 14.4% 330.5 340.2 16,500 3.0% 13.6% 318.8 325.2 16,700 D 2004...

  • Page 4
    ...0 Based on Non-GAAP Financial Measures. See page 24. Equity Market Capitalization Billions of Dollars As of December 31 2000 25 2001 2002 2003 20.8 2004 23.0 20 16.5 15 10 5 0 15.9 16.9 Operating Earnings & Operating Cash Flow Millions of Dollars 2000 3,000 2001 2,452 2002 2,448 2003...

  • Page 5
    ... Based on Bloomberg. 3 Year Total Return 5 Year Total Return Assets Billions of Dollars 2000 50 2001 2002 2003 43.5 2004 45.4 39.2 36.0 30.4 25 0 Dividend Coverage Dollars Per Share Unhedged Unregulated Hedged Unregulated Regulated Tariff-based 3.00 2004 Operating Earnings* 6.00 Hedged...

  • Page 6

  • Page 7
    ... gas indexes over the same period. A $100 investment in Dominion stock on the first day of 2000 was worth $215 at the end of 2004, including reinvested dividends. But as an investor, you rightly ask, "What have you done for us lately?" Let's first review the basics-earnings, dividends and free...

  • Page 8
    ...Northeast or mid-Atlantic nuclear station; replacing natural gas reserves through acquisitions if it's more effective than drilling; or continuing buying out uneconomic power supply contracts at Dominion Virginia Power. For the first time in 10 years, our quarterly dividend increased- by 3 percent...

  • Page 9
    ... can cover interest payments. At year's end, we had boosted this adjusted measure to 4.4 times and Dominion Virginia Power customers benefit knowing that electricity rates won't be going up. Investors gain revenue stability and upside from productivity and other savings that I'll highlight...

  • Page 10
    ... million annually in after-tax costs by hosting federally subsidized "synfuel" facilities. Long-time investors know we keep substantial portions of our natural gas and oil production hedged under contracts at pre-determined prices. I believe we will benefit in the long term. The trade-off between...

  • Page 11
    ...station with 2 its "Most Improved" award in July. 3 3 Theresa A. Davis (foreground) and Cheryl Rhodes clear debris at Appomattox River Park in Virginia, where Dominion employee volunteers cleared a trail, built benches and mulched. 4 President and CEO- Dominion Resources Services, Mary Doswell...

  • Page 12
    ... in deepwater Gulf of Mexico. 2 Ricky B. Humble calibrates production equipment at Devils Tower with a test pump and certified gauge. 3 4 2 The West Virginia Department of Environmental Protection named Dominion E&P driller of the year in 2004. 4 3 Cactus Rig 105 reaches more than 16,400...

  • Page 13
    ..., racking up nearly $100 million in hard savings. and assumed $213 million in debt, to buy out three old uneconomic power contracts at Dominion Virginia Power. These successful negotiations, now complete, are expected to reduce annual capacity payments by $75 million. Discussions with other parties...

  • Page 14
    ... exploration. Investors often ask me why Dominion, a gas and electric generation, transmission, distribution and pipeline company, should invest money in natural gas and oil exploration and production. the spar of about 300 million cubic feet equivalent (Mmcfe) of natural gas per day. Meanwhile...

  • Page 15
    ... Kewaunee Salem Harbor Manchester Millstone Brayton Point New Generation Planned/ Under Development Natural Gas Morgantown Pleasants Kincaid Planned Acquisitions Nuclear Bremo Elizabeth River Chesterfield Chesapeake Pittsylvania Clover Rosemary Mecklenburg Gaston Roanoke Rapids Brayton Point...

  • Page 16
    ... in a job well done. Miss: Hurricane Ivan Dominion President and Chief Operating Officer Tom Farrell says he doesn't like hurricanes that start with "I." In 2003, Isabel took its terrible toll on investors and customers. In 2004, Ivan set back our production in the Gulf of Mexico. strength. The...

  • Page 17
    ... power stations from USGen New England. Baseload Intermediate Peaking 48% 33% 19% Coal Gas/Other Nuclear Purchases Oil 28% 32% 18% 11% 11% 3 Andy Sussman operates a valve at Dominion's Fairless Energy. 4 Randy * Includes Brayton Point, Salem Harbor and Manchester Street power stations...

  • Page 18
    ...Morales Franchise Service Areas As of Year End reads one of nearly 1.8 million gas meters in Dominion's threestate gas franchise service territory. 2 Dominion is Electric Franchise Area Natural Gas Franchise Area Corporate Headquarters Richmond, Virginia relocating distribution and transmission...

  • Page 19
    ... Outlook for success? Let history note he was working entirely by feel and by his own wits. affected more than 1,500 Dominion customers. Heroic efforts by our employees could fill an action movie. In one small Pennsylvania town, ï¬,oodwater submerged a gas regulating station, over-pressurizing the...

  • Page 20
    Regulated & Nonregulated Retail Energy Customers Millions of Customer Accounts 2000 4 2001 3.8 2002 3.9 2003 3.9 2004 4.0 3.8 2 1.4 0.7 0 0.8 1.0 1.2 Regulated Nonregulated governor to declare a state day in honor of the station. Our natural gas and oil exploration unit is the only ...

  • Page 21
    ... stations in New England, a high-price power market heavily dependent on natural gas-fired generation. From the moment we announced the deal in September until we closed it in early January 2005, our employees jumped into action 24/7. They pulled off a smooth, glitch-free integration and transfer...

  • Page 22
    ... to add assets at prices that add immediately to the bottom line don't come around often. Companies can't time Hit: Expanding The Crown Jewel, Dominion Cove Point Some have used the term "crown jewel" of U.S. liquefied natural gas facilities to describe our Dominion Cove Point LNG facility, which...

  • Page 23
    ..., we raised $476 million Hit: Well-Timed Sale of Assets to Raise Funds In early 2004, we sold interests in reserves representing about 83 billion cubic feet of future natural gas production from both onshore and offshore through the sale of select natural gas and oil properties in British Columbia...

  • Page 24
    debt. Substantial premiums on recent sales of Canadian natural gas and oil reserves helped prompt our decision to sell the assets, which produced about 30 Bcfe annually. We'll hold onto our remaining oil and gas assets north of the border in Alberta. more patient cases, long term might extend to ...

  • Page 25
    ..., employees successfully completed unloading the 100th 2 ship since Dominion reactivated the liquefied natural gas import facility in August 2003. 3 Construction of the fifth tank completes the reactivation of Dominion Cove Point 3 and positions it for expansion. 4 Don King secures a line...

  • Page 26
    ... for sale Severance costs for workforce reductions Restructuring of certain electric sales contracts Dominion Capital related charges (186) Termination of power purchase contracts Expenses related to the sale of E&P assets Class action lawsuit settlement Cumulative effect of changes in accounting...

  • Page 27
    ... Definitions of abbreviations VEPCO: Virginia Electric and Power Company CNG: Consolidated Natural Gas Company DEI: Dominion Energy, Inc. E&P: Dominion Exploration & Production Page 5: The range of estimated 2005 operating earnings excludes an estimated after-tax charge of approximately $46 million...

  • Page 28
    ... coal, 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...

  • Page 29
    ...and northeastern North Carolina. Gas distribution operations serve residential, commercial and industrial gas sales and transportation customers in Ohio, Pennsylvania and West Virginia. Retail energy marketing operations include the marketing of gas, electricity and related products and services to...

  • Page 30
    ...the ability to exercise within a range of quantities. For contracts with unique characteristics, Dominion estimates fair value using a discounted cash flow approach. If pricing information is not available from external sources, judgment is required to develop estimates of fair value. For individual...

  • Page 31
    ... using present value techniques, in which Dominion makes various assumptions including estimates of the amounts and timing of future cash flows associated with retirement activities, credit-adjusted risk free rates and cost escalation rates. AROs currently reported on Dominion's Consolidated Balance...

  • Page 32
    ... the expected payments to be made under Dominion's plans. Due to declines in bond yields and interest rates, Dominion reduced the discount rate used to calculate 2004 pension and other postretirement benefit cost to 6.25% compared to the 6.75% and 7.25% discount rates that it used to calculate...

  • Page 33
    ... new power generation projects, as well as its corporate headquarters and aircraft. As a result, the Consolidated Balance Sheet as of December 31, 2003 reflects an additional $644 million in net property, plant and equipment and deferred charges and $688 million of related debt. In 2004, Dominion...

  • Page 34
    ... higher natural gas prices during 2003 on sales of Dominion's gas and oil production as well as margins associated with gas trading activities. This increased contribution by the operating segments was more than offset by significant specific charges recognized in 2003 and reported in the Corporate...

  • Page 35
    .... Regulated gas sales revenue increased 13% to $1.4 billion, largely resulting from a $198 million increase due to higher rates for regulated gas distribution operations primarily related to the recovery of higher gas prices and a $20 million increase resulting from the return of customers from...

  • Page 36
    ... to CNGI's generation assets that were sold in December 2003. These benefits were partially offset by the following charges and incremental expenses recognized in 2004: • A $184 million charge related to the valuation of Dominion's interest in a long-term power tolling contract; • $96 million...

  • Page 37
    ... outage days at the Millstone Power Station in 2003 and a full year's sales from generating units placed into service during 2002; • A $76 million increase in revenue from nonregulated retail energy marketing operations, primarily as a result of customer growth, including the acquisition of new...

  • Page 38
    ... is classified as held for sale. The loss includes the following: • Impairment of network assets and related inventories of $566 million. Dominion did not recognize any deferred tax benefits related to the impairment charges, since realization of tax benefits is not anticipated at this time based...

  • Page 39
    ... previously deferred fuel costs in connection with the 2003 Virginia fuel rate settlement; and • Increased utility outage expenses, reflecting the refueling activities at nuclear facilities in 2003. Dominion Energy Dominion Energy includes Dominion's electric transmission, natural gas transmission...

  • Page 40
    ... price volatility on natural gas option positions and the effect of unfavorable price changes on electric trading margins; • A decrease attributable to unfavorable price movements in 2004 on the economic hedges of Dominion Exploration & Production gas production described in Selected Information...

  • Page 41
    ... below, on an after-tax basis, are the key factors impacting Dominion Exploration & Production's operating results: 2004 vs. 2003 Increase (Decrease) Amount (millions, except EPS) EPS VPP revenue Business interruption insurance Gas and oil-production Gas and oil-prices Operations and maintenance DD...

  • Page 42
    ...: • A $184 million charge ($112 million after-tax) related to the valuation of Dominion's interest in a long-term power tolling contract, attributable to Dominion Generation; • $96 million of losses ($61 million after-tax) related to the discontinuance of hedge accounting for certain oil hedges...

  • Page 43
    ... location and timing of delivery or settlement for each energy commodity in relation to market price activity. In addition, the Clearinghouse held a portfolio of financial derivative instruments to manage Dominion's price risk associated with a portion of its anticipated sales of 2004 natural gas...

  • Page 44
    ...cost-of-service utility rate regulation. Credit Risk • $132 million in advances and $806 million in reimbursements related to the Fairless generation project in Pennsylvania. Financing Cash Flows and Liquidity Dominion, Virginia Electric and Power Company (Virginia Power) and Consolidated Natural...

  • Page 45
    ... of stock purchase contracts associated with Dominion's 2000 issuance of equity-linked debt securities. 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...

  • Page 46
    ...or withdrawal at any time by the assigning rating organization. The credit ratings for the Dominion Companies are most affected by each company's financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the rating agencies and "event...

  • Page 47
    ... defer distributions related to its junior subordinated notes payable to affiliated trusts. (3) Amounts exclude open purchase orders for services that are provided on demand, the timing of which cannot be determined. (4) Represents the summation of settlement amounts, by contracts, due from Dominion...

  • Page 48
    ... of extreme weather, Dominion's higher fuel costs from running costlier plants are expected to be mitigated by additional revenue as customers use more electricity. Dominion has an agreement with a voting interest entity (lessor) to lease the Fairless power station in Pennsylvania, which began...

  • Page 49
    ... rate authority to charge market based rates for sales of electric energy and capacity to loads located within Dominion's service territory upon its integration into PJM. Dominion has made filings with both the Virginia Commission and North Carolina Utilities Commission (North Carolina Commission...

  • Page 50
    ... prudent. Common stock dividends are declared on a quarterly basis by the board of directors. Statoil ASA (Statoil) Agreement In June 2004, Dominion executed 20-year contracts with Statoil for the increased capacity planned for its Cove Point LNG facility and related gas transmission services. Under...

  • Page 51
    ... 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 nuclear power plant, located in northeastern Wisconsin. Under terms of the agreement, the aggregate purchase price...

  • Page 52
    ...million in 2004 and 2003, respectively. Dominion also sponsors employee pension and other postretirement benefit plans that hold investments in trusts to fund benefit payments. To Market Rate Sensitive Instruments and Risk Management Dominion's financial instruments, commodity contracts and related...

  • Page 53
    ... requirements, tax law changes, costs related to hurricanes or other weather events, inflation, the cost of obtaining replacement power during unplanned plant outages and increased capital costs. In addition, under the 2004 amendments to the Virginia fuel factor statute, Dominion's current Virginia...

  • Page 54
    ...affect the reported fair value of these contracts. In addition, Dominion uses financial derivatives to hedge future sales of its gas and oil production. These hedge arrangements generally include margin requirements that require Dominion to deposit funds or post letters of credit with counterparties...

  • Page 55
    ... Enron Corp. bankruptcy and $68 million of after-tax charges associated with a senior management restructuring initiative. (4) Dominion's 2000 results include $198 million of after-tax restructuring and other acquisition-related costs resulting from the merger with Consolidated Natural Gas Company...

  • Page 56
    ...Audit Committee and have free access to the Committee at any time. SEC rules implementing Section 404 of the Sarbanes-Oxley Act of 2002 require Dominion's 2004 Annual Report to contain a management's report and a report of the independent registered public accounting firm regarding the effectiveness...

  • Page 57
    Report of Independent Registered Public Accounting Firm 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 (the "Company") as of December 31, 2004 and 2003...

  • Page 58
    ... Public Accounting Firm To the Shareholders and Board of Directors of Dominion Resources, Inc. Richmond, Virginia We have audited management's assessment, included in paragraphs 5-9 of the accompanying Management's Annual Report on Internal Control over Financial Reporting, that Dominion Resources...

  • Page 59
    ... 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 principles Loss from discontinued operations (net of income tax benefit of...

  • Page 60
    ...$51) Other accounts receivable Inventories: Materials and supplies Fossil fuel Gas stored Derivative assets Deferred income taxes Prepayments Other Total current assets Investments Available for sale securities Nuclear decommissioning trust funds Other Total investments Property, Plant and Equipment...

  • Page 61
    At December 31, (millions) 2004 2003 Liabilities and Shareholders' Equity Current Liabilities Securities due within one year Short-term debt Accounts payable, trade Accrued interest, payroll and taxes Derivative liabilities Other Total current liabilities Long-Term Debt Long-term debt Junior ...

  • Page 62
    ... of stock - public 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 awards and stock...

  • Page 63
    ... on energy trading contracts Depreciation, depletion and amortization Deferred income taxes and investment tax credits, net Other adjustments for non-cash items Changes in: Accounts receivable Inventories Deferred fuel and purchased gas costs, net Prepaid pension cost Accounts payable, trade Accrued...

  • Page 64
    ... retail natural gas sales and related distribution services; • Nonregulated electric sales consist primarily of sales of electricity from utility and merchant generation facilities at market-based rates, sales of electricity to residential and commercial customers at contracted fixed prices...

  • Page 65
    ... 2002 As for electric fuel and purchased energy expenses, effective January 1, 2004, Dominion's fuel factor provisions for its Virginia retail customers are locked in until the earlier of July 1, 2007 or the termination of capped rates, with a one-time adjustment of the fuel factor, effective July...

  • Page 66
    ... normal sales contracts, respectively, are included in earnings at the time of contract D 2004 / Page 64 Fair value is based on actively quoted market prices, if available. In the absence of actively quoted market prices, Dominion seeks indicative price information from external sources, including...

  • Page 67
    ... time of contract performance, settlement or termination. Prior to 2003, all energy trading contracts, including non-derivative contracts, were recorded at fair value with changes in fair value reported in revenue on a net basis. Investment Securities Dominion accounts for and classifies investments...

  • Page 68
    ...-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will allow for the recovery of current costs through future rates charged to customers, Dominion...

  • Page 69
    ... contracts in its efforts to reduce the cost structure of its generation-related operations. In November 2004, Dominion paid $92 million to terminate its power purchase agreement and to acquire the related generating facility from one of the potential VIE suppliers that had not provided information...

  • Page 70
    ... the difference between (a) the amount payable by Dominion for energy and capacity under the long-term contract and (b) amounts recoverable through sales to retail electric customers in its service territory or wholesale market transactions; or 2) if the potential VIE supplier fails to perform, any...

  • Page 71
    ... the trust preferred securities. As a result in 2004, Dominion reported interest expense on the junior subordinated notes rather than preferred distribution expense on the trust preferred securities. Pro Forma Information Reflecting Adoption of New Standards Disclosure requirements associated with...

  • Page 72
    ... State taxes, net of federal benefit Utility plant differences Preferred dividends Amortization of investment tax credits Nonconventional fuel credit Other benefits and taxes/foreign operations Employee pension and other benefits Employee stock ownership plan deduction Other, net Effective tax rate...

  • Page 73
    ...in the price of natural gas, electricity and other energy-related commodities marketed and purchased as well as the currency exchange and interest rate risks of its business operations. Dominion uses derivative instruments to mitigate its exposure to these risks and designates derivative instruments...

  • Page 74
    ... of an independent appraiser and subsequently updated the fair values based on preliminary bids received in connection with the sale of Dominion Telecom. Since realization of tax benefits related to the impairment charges will be dependent upon Dominion's future tax profile and taxable earnings...

  • Page 75
    ... EPS because the exercise and purchase prices included in those instruments were greater than the average market price of the common shares. 11. Available-For-Sale and Other Investment Securities Dominion holds marketable debt and equity securities in nuclear decommissioning trust funds, retained...

  • Page 76
    ... selected information regarding the sales of investment securities. In determining realized gains and losses, the cost of these securities was determined on a specific identification basis. 2004 (millions) 2003(1) 2002 Utility Generation Transmission Distribution Storage Nuclear fuel Gas gathering...

  • Page 77
    ... of natural gas annually. Dominion recorded expenses of $10 million in other operations and maintenance expense related to the sale. Jointly-Owned Utility Plants Dominion's proportionate share of jointly-owned utility plants at December 31, 2004 follows: Bath County Pumped Storage Station (millions...

  • Page 78
    ...30, 2007 without a return on unrecovered balances. (1) Reported in other current assets. (2) Costs recognized in excess of amounts included in regulated rates charged by Dominion's regulated gas operations before rates were updated to reflect the new method of accounting and the cost related to the...

  • Page 79
    ... has AROs related to its natural gas gathering, storage, transmission and distribution systems, including approximately 2,300 gas storage wells in Dominion's underground natural gas storage network. These obligations result from certain safety requirements to be performed at the time any pipeline...

  • Page 80
    ...an annual interest rate of 3.66%. As a result of settlement of the stock purchase contracts, the 3.66% senior notes are reported as a component of Unsecured Senior and Medium-Term Notes. (4) Convertible into a combination of cash and shares of Dominion's common stock at any time after March 31, 2004...

  • Page 81
    ... 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 82
    Notes to Consolidated Financial Statements, Continued Selected information about Dominion's equity-linked debt securities is presented below: Total Longterm Debt Senior Notes Annual Interest Rate Stock Purchase Contract Annual Rate Stock Purchase Settlement Date Date of Issuance (millions, except ...

  • Page 83
    ... debt securities. Net proceeds were used for general corporate purposes, principally repayment of debt. The remainder of the shares issued and proceeds received in 2004 occurred through Dominion Direct® (a dividend reinvestment and open enrollment direct stock purchase plan), employee savings plans...

  • Page 84
    ...2004, Dominion had a total of 47 million shares reserved and available for issuance for the following: Dominion Direct®, employee stock awards, employee savings plans, director stock compensation plans, stock purchase contracts associated with equity-linked debt securities and a forward equity sale...

  • Page 85
    ... restrictions on dividend payments by Dominion and certain subsidiaries in connection with the deferral of distribution payments on trust preferred securities. 21. Employee Benefit Plans Dominion and its subsidiaries provide certain benefits to eligible active employees, retirees and qualifying...

  • Page 86
    ... benefit pension plans was $3.0 billion and $2.7 billion at December 31, 2004 and 2003, 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...

  • Page 87
    ... assumptions used in determining the net periodic cost recognized in the Consolidated Statements of Income were as follows, on a weightedaverage basis: Pension Benefits 2004 2003 2002 2004 Other Postretirement Benefits 2003 2002 Discount rate Expected return on plan assets Rate of increase...

  • Page 88
    ... 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 had the following effects: Other Postretirement Benefits...

  • Page 89
    ... sites may contain environmental contamination. Dominion is not able to estimate the cost, if any, that may be required for the possible remediation of these sites. Nuclear Operations Nuclear Decommissioning-Minimum Financial Assurance-The NRC requires nuclear power plant owners to annually update...

  • Page 90
    ... funds available to NEIL. The current policy period's maximum assessment is $30 million. Old Dominion Electric Cooperative, a part owner of North Anna Power Station, and Massachusetts Municipal Wholesale Electric Company and Central Vermont Public Service Corporation, part owners of Millstone's Unit...

  • Page 91
    ... customers will not pay a fee if they switch from Dominion to a different service provider. 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...

  • Page 92
    ... including transmission services and retail energy sales. Dominion's exposure to credit risk is concentrated primarily within its sales of gas and oil production and energy trading, marketing and commodity hedging activities, as Dominion transacts with a smaller, less diverse group of counterparties...

  • Page 93
    ... by the new CDO. In connection with a review of the remaining assets in the CLO trusts, DCI recorded impairments totaling $23 million in 2003. Dominion received its distribution of the new CDO notes in the first quarter of 2004 upon liquidation of the trusts. $ 67 $ 268 Key Economic Assumptions...

  • Page 94
    ...LNG facility, certain natural gas production, as well as Clearinghouse (energy trading and marketing and aggregation of gas supply). Dominion Delivery includes Dominion's electric and gas distribution systems and customer service operations, as well as nonregulated retail energy marketing operations...

  • Page 95
    ...Dominion's operations: Dominion Generation (millions) Dominion Energy Dominion Delivery Dominion E&P Corporate and Other Adjustments & Eliminations Consolidated Total 2004 Total revenue from external customers Intersegment revenue Total operating revenue Interest income Interest and related charges...

  • Page 96
    ... expense and corporate overhead. 2004 Total (millions) United States Canada Total 2003 United States Canada Total 2002 United States Canada Revenue (net of royalties) from: Sales to nonaffiliated companies Transfers to other operations Total Less: Production (lifting) costs Depreciation, depletion...

  • Page 97
    ... flows relating to proved gas and oil reserve quantities owned by Dominion: 2004 Total (millions) United States Canada Total 2003 United States Canada Total 2002 United States Canada Future cash inflows(1) Less: Future development costs(2) Future production costs Future income tax expense Future...

  • Page 98
    ...2003 2002 Standardized measure of discounted future net cash flows 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 production Extensions, discoveries and...

  • Page 99
    ... million after-tax charge reflecting Dominion's valuation of its interest in a long-term power tolling contract that is subject to a planned divestiture in the first quarter of 2005 and a $61 million after-tax benefit due to the recognition of business interruption insurance revenue associated with...

  • Page 100
    ...Chief Executive Officer, Dominion Resources Services) Paul D. Koonce , 45 (Chief Executive Officer, Dominion Energy) M ark F. M cGettrick , 47 (President and Chief Executive Officer, Dominion Generation) Eva S. Hardy, 60 Senior Vice President - External Affairs & Corporate Communications G. Scott...

  • Page 101
    ... Center located at 5000 Dominion Boulevard, Glen Allen, Virginia. Corporate Street Address Dominion Resources, Inc. 120 Tredegar Street Richmond, Virginia 23219 M ailing Address Dominion Resources, Inc. P .O. Box 26532 Richmond, Virginia 23261-6532 Web Site w w w.dom.com Dominion's Annual Report...

  • Page 102
    ... Small photos left-to-right: 1. Dominion employees initiated a unique building approach using modularized pipe rack at the Fairless Energy generating facility in Pennsylvania. This innovation saved the company time and costs during construction. 2. Collaborating w ith the Virginia Park Service and...

  • Page 103
    ... of Financial Condition and Results of Operations in this report. ©2005 Dominion Resources, Inc. Richmond, Virginia Design: Graphic Expression Inc., New York, New York Printing: The Hennegan Company, Florence, Kentucky Financial Typography: Grid Typographic Services, Inc., New York, New York Front...

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