Dominion Power 2007 Annual Report Download - page 115

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Our 2007 results include the impact of the following
significant items:
‰Second quarter results include a $341 million after-tax charge
due to the discontinuance of hedge accounting for certain gas
and oil derivatives associated with the sale of our
non-Appalachian E&P operations, a $252 million after-tax
impairment charge associated with the sale of Dresden, a
$158 million after-tax extraordinary charge due to the
reapplication of SFAS No. 71 to the Virginia jurisdiction of
our utility generation operations and a $108 million after-tax
charge for the recognition of certain forward gas contracts that
no longer qualified for the normal purchase and sales exemp-
tion due to the sale of our U.S. non-Appalachian E&P
operations.
‰Third quarter results include a $2.1 billion after-tax gain from
the disposition of our U.S. non-Appalachian E&P operations.
Results also include a $140 million after-tax charge for the
recognition of a long-term power sales agreement at State Line
that no longer qualified for the normal purchase and sales
exemption due to the termination of the agreement in the
fourth quarter of 2007.
Our 2006 results include the impact of the following
significant items:
‰First quarter results include a $94 million after-tax charge
resulting from the write-off of certain regulatory assets related
to the planned sale of Peoples and Hope, a $222 million tax
benefit from the partial reversal of previously recorded valu-
ation allowances on certain federal and state tax loss carryfor-
wards expected to be utilized to offset capital gain income
that would have been generated from the planned sale and
the establishment of $141 million of deferred tax liabilities
associated with the excess of our financial reporting basis
over the tax basis in the stock of Peoples and Hope. Results
also include a $76 million after-tax benefit resulting from
favorable changes in 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 a DCI investment for which no tax
benefit had been recognized at that time.
‰Third quarter results include a $171 million after-tax benefit
from business interruption insurance revenue related to the
2005 hurricanes.
‰Fourth quarter results include a $164 million after-tax charge
associated with the impairment of the Peaker facilities that
were sold in March 2007.
Dominion 2007 Annual Report 113