Dominion Power 2004 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2004 Dominion Power annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

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 Decem-
ber 31, 2004 and 2003, and the related consolidated statements of income,
common shareholders’ equity and comprehensive income, and of cash
flows for each of the three years in the period ended December 31, 2004.
These financial statements are the responsibility of the Company’s man-
agement. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with the standards of the Pub-
lic Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant esti-
mates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in
all material respects, the financial position of Dominion Resources, Inc.
and subsidiaries as of December 31, 2004 and 2003, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 2004, in conformity with accounting principles gener-
ally accepted in the United States of America.
As discussed in Note 3 to the consolidated financial statements, in
2003 the Company changed its methods of accounting to adopt new
accounting standards for: asset retirement obligations, contracts involved
in energy trading, derivative contracts not held for trading purposes, deriv-
ative contracts with a price adjustment feature, the consolidation of vari-
able interest entities, and guarantees.
We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the effectiveness of
the Company’s internal control over financial reporting as of December 31,
2004, based on criteria established in
Internal Control
—
Integrated Frame-
work
issued by the Committee of Sponsoring Organizations of the Tread-
way Commission and our report dated February 28, 2005, expressed an
unqualified opinion on management’s assessment of the effectiveness of
the Company’s internal control over financial reporting and an unqualified
opinion on the effectiveness of the Company’s internal control over finan-
cial reporting.
Richmond, Virginia
February 28, 2005
D 2004/Page 55