Dominion Power 2006 Annual Report Download - page 15

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2006 Annual ReportDOMINION 13
■Increased focus on cash flow from our utility opera-
tions and the opportunity to invest in both new capacity
to benefit from evolving wholesale electric markets and
in urgently needed natural gas and electric infrastructure
projects.
■Potential to return capital to investors in the form of
increased dividends and share repurchases.
TRADITIONAL REMAINING BUSINESSES
EXPECT EARNINGS GROWTH
Each of our superbly operated remaining businesses will
have its own unique prospects for earnings growth.
Because we are refocusing the company, we have struc-
tured this year’s annual report to shareholders to highlight
these businesses, their growth prospects in the energy-
intensive U.S. economy, and their expected contributions
to future consolidated operating earnings. Looking
ahead, we would expect Dominion’s long-term operating
earnings to grow between 4 percent and 6 percent.
I will keep you updated on our progress throughout
the year. We expect any sale of our E&P assets to be
Thomas F. Farrell II President and Chief Executive Officer
completed by mid-2007. Following such a sale, and other
sales I will describe later, we would own and operate:
■One of the most rapidly expanding electric distribu-
tion franchises in the nation, Dominion Virginia Power,
which now serves more than 2.3 million homes and
businesses, as well as a premier natural gas distribution
company, Dominion East Ohio, which serves more than
1.2 million customer accounts in Ohio.
■More than 26,300 megawatts of electric generation
that provides energy not only to Dominion Virginia
Power customers but also to much of New England and
parts of the Midwest and mid-Atlantic regions.
■The nation’s largest natural gas storage system as well
as a major transmission pipeline network strategically
located within major gas-consuming markets. Our work
to physically inspect and maintain these critical fuel trans-
portation arteries at the highest standards has created a
network of unparalleled integrity.
■A smaller but geographically advantaged and low-risk
natural gas and oil production operation.
■A growing competitive retail business that provides
energy and energy services to more than 1.5 million
customer accounts in states where competitive markets
have developed.
THE SUREST WAY TO BUILD ON PAST
SUCCESS IS TO ACT AS YOUR OWN DEVIL’S
ADVOCATE. TEST ASSUMPTIONS. ASK HARD
QUESTIONS. LOOK AT THE BROADER
PICTURE AND CONSIDER ALTERNATIVES, EVEN
WHEN THINGS ARE WORKING WELL. WE DO.