Dominion Power 2006 Annual Report Download - page 107

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
Our 2006 results include the impact of the following sig-
nificant items:
First quarter results include a $94 million after-tax charge
resulting from the write-off of certain regulatoryassets related
to the pending sale of Peoples and Hope, a$222 million tax
benefit from the partialreversal of previouslyrecorded valu-
ation allowances on certain federal and state taxloss carryfor-
wards expected to be utilized to offset capital gain income that
will be generated from the sale and the establishment of $141
million of deferred taxliabilities associated with the excess of
our financial reporting basis over the taxbasis in the stock of
Peoples and Hope. Results also include a$76million after-tax
benefit resulting from favorablechangesin the fair value of
certain gas and oil derivatives that were de-designated as
hedges following the 2005 hurricanes.
Second quarter results include an $85 million charge resulting
from the impairment of aDCIinvestment forwhich no tax
benefit has been recognized.
Third quarter results include a $171 million after-tax benefit
from business interruption insurance revenuerelated to the
2005 hurricanes.
Fourth quarter results include a $164 million after-tax charge
associated with the impairment of the Peaker facilities as a
result of their pending sale.
Our 2005 results include the impact of the following sig-
nificant items:
First quarter results include a $47 million after-tax charge
resulting from the termination of along-term power purchase
agreement, $31 million of after-tax losses related to the dis-
continuance of hedge accounting for certain oil hedges, result-
ing from adelayinreaching anticipated productionlevels in
the Gulf of Mexico, and subsequent changes in the fair value
of those hedges and a$28million after-tax benefit due to the
recognition of business interruption insurance revenue asso-
ciated with the recovery of delayed gas and oil production due
to Hurricane Ivan.
Second quarter results include an $86 million after-tax benefit
due to the final settlement of business interruption insurance
claims associated with Hurricane Ivan.
Third quarter results include a $357 million after-tax loss
related to the discontinuance of hedge accounting for certain
gas and oil hedges, resulting from an interruptionofgas and
oil production in the Gulf of Mexico caused by the 2005
hurricanes, and subsequent changes in the fair value of those
hedges.
Fourth quarter results include a $51 million after-tax charge to
establish an allowance related to credit exposure associated
with thebankruptcy of Calpine Corporation and a$77mil-
lion after-tax benefit reflecting the impact of adecrease in gas
and oil prices on hedges that were de-designated following the
2005 hurricanes.
106 DOMINION2006 Annual Report