Dominion Power 2005 Annual Report Download - page 78

Notes to Consolidated Financial Statements, Continued
76 Dominion 2005
Note 18. Long-Term Debt
2005
Weighted
Average
At December 31, Coupon(1) 2005 2004
(millions, except percentages)
Dominion Resources, Inc.:
Unsecured Senior and Medium-Term Notes:
2.25% to 8.125%, due 2005 to 2010 5.13% $ 3,212 $ 3,002
5.0% to 7.82%, due 2012 to 2035(2) 5.82% 3,880 2,880
Unsecured Equity-Linked Senior Notes, 5.75%, due 2008 330 330
Unsecured Convertible Senior Notes, 2.125%, due 2023(3) 220 220
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts, 7.83% to 8.4%, due 2027 to 2041 8.22% 825 825
Consolidated Natural Gas Company:
Unsecured Debentures and Senior Notes:
5.375% to 7.375%, due 2005 to 2010 5.96% 1,050 1,200
5.0% to 6.875%, due 2011 to 2027(2) 6.19% 2,150 2,150
Secured Bank Debt, Variable Rate, due 2006(4) 3.87% 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%, due 2007 215 215
7.0% to 8.625%, due 2024 to 2025 — 512
Secured Bank Debt, Variable Rate, due 2007(4) 3.76% 370 370
Unsecured Senior and Medium-Term Notes:
4.50% to 5.75%, due 2006 to 2010 5.42% 1,600 1,600
4.75% to 8.625%, due 2013 to 2032 5.51% 762 706
225 225
2.62% 60 60
2.61% 137 137
5.54% 237 242
5.02% 263 263
Unsecured Junior Subordinated Notes Payable to Affiliated Trust, 7.375%, due 2042 412 412
Dominion Energy, Inc.:
Unsecured Medium-Term Notes, 4.92% to 6.1%, due 2005 to 2009(8) — 453
Secured Senior Note, 7.33%, due 2020 222 231
Secured Bank Debt, Variable Rates, due 2006(4) 3.87% 347 347
Dominion Capital, Inc.:
Notes, 12.5%, due 2006 to 2008 66
Dominion Resources Services, Inc., Secured Bank Debt, Variable Rate, due 2006(4) 4.20% 107 107
17,070 16,933
Fair value hedge valuation(9) (52) 11
Amounts due within one year 4.69% (2,330) (1,368)
Unamortized discount and premium, net (35) (69)
Total long-term debt $14,653 $15,507
(1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2005.
(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. In the event of an early redemption, we have the intent and ability to refinance CNG’s 6.875% senior notes under our long-term credit
facilities. Accordingly, CNG’s 6.875% senior notes remain classified as long-term debt on our Consolidated Balance Sheets.
(3) Convertible into a combination of cash and shares of our common stock at any time after March 31, 2004 when the average closing price of our 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. In the event of an early redemption, we have the intent and ability to refinance this security under our long-term credit facilities. Accordingly, this security remains classified as long-
term debt on our Consolidated Balance Sheets.
(4) Represents debt associated with certain special purpose lessor entities that are consolidated in accordance with FIN 46R. The debt is nonrecourse to us and is secured by the entities’ property, plant
and equipment, which totaled $943 million and $963 million at December 31, 2005 and 2004, respectively.
(5) Substantially all of Virginia Power’s property ($12.3 billion at December 31, 2005) is subject to the lien of the mortgage, securing its mortgage bonds. Due to the early redemption of $512 million of First
and Refunding Mortgage Bonds in 2005, we incurred $25 million of prepayment penalties and related charges that were recognized in interest expense on our Consolidated Statement of Income.
(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. In February 2006 this facility was replaced with a five-year credit facility that terminates in February 2011.
(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 changes in fair value of certain fixed-rate long-term debt associated with fair value hedging relationships.
..
Unsecured Callable and Puttable Enhanced SecuritiesSM, 4.10%, due 2038(6)
Tax-Exempt Financings:(7)
Variable Rate, due 2008
Variable Rates, due 2015 to 2027
4.95% to 9.62%, due 2005 to 2010
2.30% to 7.55%, due 2014 to 2031