Dominion Power 2004 Annual Report Download - page 80

Notes to Consolidated Financial Statements, Continued
D 2004/Page 78
17. Long-Term Debt
2004
Weighted
Average
At December 31, Coupon(1) 2004 2003
(millions, except percentages)
Dominion Resources, Inc.:
Unsecured Senior and Medium-Term Notes:
2.25% to 7.82%, due 2004 to 2008 4.85% $ 2,002 $ 1,740
5.0% to 8.125%, due 2009 to 2033 (2) 6.25% 3,880 3,680
Unsecured Equity-Linked Senior Notes, 5.75% to 8.05%, due 2006 to 2008(3) 5.75% 330 743
Unsecured Convertible Senior Notes, 2.125%, due 2023(4) 220 220
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% to 8.4%, due 2027 to 2041 8.22% 825 825
Unsecured Nonrecourse Debt, Variable Rate, due 2004 — 18
Consolidated Natural Gas Company:
Unsecured Debentures and Senior Notes:
5.375% to 7.375%, due 2004 to 2008 6.16% 1,000 1,400
5.0% to 6.875%, due 2010 to 2027(2) 6.17% 2,350 1,950
Unsecured Senior Subordinated Debt, 9.25%, due 2004 — 88
Secured Bank Debt, Variable Rate, due 2006(9) 2.55% 234 234
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.8%, due 2041 206 206
Virginia Electric and Power Company:
Secured First and Refunding Mortgage Bonds:(5)
7.625% to 8.0%, due 2004 to 2007 7.63% 215 465
7.0% to 8.625%, due 2024 to 2025 8.09% 512 512
Unsecured Senior and Medium-Term Notes:
5.375% to 7.2%, due 2004 to 2008 5.57% 1,370 1,445
4.50% to 7.25%, due 2010 to 2025 5.08% 936 830
Unsecured Callable and Puttable Enhanced SecuritiesSM, 4.10%, due 2038(6) 225 225
Tax-Exempt Financings:(7)
Variable Rate, due 2008 1.33% 60 60
Variable Rates, due 2015 to 2027 1.34% 137 137
4.95% to 9.62%, due 2005 to 2008 5.24% 108 107
2.225% to 7.65%, due 2009 to 2031 5.32% 397 295
Secured Bank Debt, Variable Rate, due 2007(9) 1.75% 370 370
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.375%, due 2042 412 412
Dominion Energy, Inc.:
Unsecured Medium-Term Notes, 5.72% to 6.1%, due 2005 to 2006(8) 5.94% 262 243
Unsecured Medium-Term Notes, 4.92%, due 2009(8) 191 —
Secured Senior Note, 7.33%, due 2020 231 238
Secured Bank Debt, Variable Rates, due 2006(9) 2.55% 347 347
Revolving Lines of Credit, Variable Rates, due 2004 — 150
Dominion Capital, Inc.:
Notes, 12.5%, due 2008 66
Dominion Resources Services, Inc., Secured Bank Debt, Variable Rate, due 2006(9) 2.34% 107 107
Dominion Fiber Ventures, Secured Senior Notes, 7.05%, due 2005(10) — 21
16,933 17,074
Fair value hedge valuation(11) 11 43
Amounts due within one year 6.02% (1,368) (1,252)
Unamortized discount and premium, net (69) (89)
Total long-term debt $15,507 $15,776
(1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2004.
(2) At the option of holders in October 2006 and August 2015, $150 million of CNG’s 6.875% senior notes due 2026 and $510 million of Dominion’s 5.25% senior notes due 2033, respectively, are subject to
redemption at 100% of the principal amount plus accrued interest.
(3) In November 2004, Dominion issued 6.7 million shares of its common stock to settle stock purchase contracts related to $413 million of 8.05% equity-linked senior notes. In connection with settlement,
the senior notes were remarketed and now carry 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 when the average closing price of Dominion common stock reaches $88.32 per share
for a specified period. At the option of holders on December 15, 2006, December 15, 2008, December 15, 2013, or December 15, 2018, these securities are subject to redemption at 100% of the principal
amount plus accrued interest.
(5) Substantially all of Virginia Power’s property ($12.0 billion at December 31, 2004) is subject to the lien of the mortgage, securing its mortgage bonds.
(6) On December 15, 2008, $225 million of the 4.10% Callable and Puttable Enhanced SecuritiesSM due 2038 are subject to redemption at par plus accrued interest, unless holders of related options
exercise rights to purchase and remarket the notes.
(7) Certain pollution control equipment at Virginia Power’s generating facilities has been pledged to support these financings. The variable rate tax-exempt financings are supported by a stand-alone $200
million three-year credit facility that terminates in May 2006.
(8) Aggregate principal amount of CAD$545 million of securities denominated in Canadian dollars and presented in US dollars, based on exchange rates as of year-end.
(9) Represents debt associated with certain special purpose lessor entities that are consolidated in accordance with FIN 46R. The debt is nonrecourse to Dominion and is secured by the entities’ property,
plant and equipment, which totaled $963 million and $997 million at December 31, 2004 and 2003, respectively.
(10)Debt was redeemed in December 2004.
(11) Represents changes in fair value of certain fixed-rate long-term debt associated with fair value hedging relationships.