Dominion Power 2006 Annual Report Download - page 21

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20 DOMINION 2006 Annual Report
Electric
Natural Gas (PA) and (WV)*
Natural Gas (OH)
Corporate Headquarters
Richmond, Virginia
REGULATED UTILITIES SERVICE AREAS
As o ecem er
STRATEGIC REFOCUS ON CORE VALUES AND KEY BUSINESSES
VITAL ECONOMIES
Dominion Virginia Power serves more than 2.2 million
homes and businesses in Virginia and about 100,000 in
northeast North Carolina as Dominion North Carolina
Power. Demand for power will only increase as Virginia’s
population grows at an annual rate of nearly 7 percent. In
fact, Virginia—which includes the nation’s fastest growing
region for high-tech jobs—exceeds the U.S. growth rate
by 1.5 percentage points. Ranked No. 1 among “Top States
for Business” by Forbes.com, Virginia ranks 10th in terms
of low tax burden. It is one of only seven states with a
AAA bond rating.
Dominion East Ohio is one of Ohio’s largest natural
gas distribution companies, serving more than 1.2 million
residential, commercial and industrial customers in
Cleveland and other Ohio markets. The unit operates
more than 19,000 miles of natural gas transmission,
distribution and gathering lines in a service area covering
more than 4,700 square miles.
DOMINION DELIVERY:
OUR ANCHOR UTILITY FRANCHISE BUSINESSES
Upon completion of the sale of two smaller natural gas
utilities later this year, our company will be anchored
by our two major franchise utilities: Dominion Virginia
Power and Dominion East Ohio.These two utilities
provide electric and gas services to about 3.5 million
homes and businesses. Together, they are adding more
than 40,000 new customer accounts annually over a
65,000-square-mile service area that includes the major
metropolitan areas of suburban Washington, D.C., and
the cities of Richmond and Norfolk, Va., and Cleveland,
Akron and Canton, Ohio.
*he pre iousl announced
sale o ominion Peoples (PA) and
ominion Hope (WV) local gas
distri ution companies are e pected
to close in the irst hal o ,
su ect to regulator appro al
will be driven by vital economies, constructive regulation
and excellent service.
From these utilities, investors can expect steady cash
flow that would continue to strengthen Dominion’s
credit profile.
Both subsidiaries’ retail customer relationships are
managed by Dominion Delivery, an operating unit that
also includes Dominion Retail, our business that offers
competitive pricing in nonregulated energy markets.
Overall, Dominion Delivery is expected to contribute
long-term average annual operating earnings growth of
between 2 percent and 3 percent. This contribution to
Dominion’s consolidated projected long-term operating
earnings growth rate of 4 percent to 6 percent annually