Dominion Power 2004 Annual Report Download - page 21

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Residential 71%
Commercial 21%
Industrial 4%
Other 4%
Residential 46%
Commercial 31%
Industrial 10%
Public Authority 10%
Other 3%
Regulated Revenue by End-User Customer Class
For the Year 2004
Electricity Natural Gas
D 2004/Page 19
The risks simply became too great. The
market was no longer trading on funda-
mentals which we knew well. We like to
be in markets where our knowledge of
the fundamentals of the electric and gas
markets can gain us a competitive advan-
tage, and will bow out when we can’t.
Today, the Clearinghouse’s primary
mission is to boost the earnings of other
Dominion business operations. It does
this by making commodity purchasing,
sales and contracting decisions. These
high-energy pros also negotiate to get
the best prices for the energy we pro-
duce by executing favorable contracts
with counterparties. For example, the
Clearinghouse sells output from
Dominion’s merchant stations such as
Fairless Energy in Pennsylvania and
Millstone in Connecticut.
Hit: New Stations Expected to
Add More Power Sales
Flexibility in New England
Last year, we made a successful bid and
paid $642 million for three fossil-fuel
power stations in New England, a
high-price power market heavily depen-
dent 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 of ownership in mere months.
I’ve been in this business north of
two decades. Their accomplishment is
breathtaking.
Included in the purchase are the
1,521-megawatt coal- and oil-fired
Brayton Point Station and the 743-
megwatt coal- and oil-fired Salem Harbor
I’ve been in this
business north of
two decades. Their
accomplishment is
breathtaking.