Dominion Power 2008 Annual Report Download

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There’s more to this light switch than meets the eye.
Behind it is an entire company.
2008 Summary Annual Report

Table of contents

  • Page 1
    There's more to this light switch than meets the eye. Behind it is an entire company. 2008 Summary Annual Report

  • Page 2
    ... the core values that have taken you so far. We look out for customers like a lifelong friend. Dependable service is a given. Helpful programs to manage energy use and costs are at the ready, as are smiling faces or friendly voices on the phone. We have been dependable for our investors, too, paying...

  • Page 3

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  • Page 5
    ... to be economically durable and resilient. Our ability to create and deliver electric power and natural gas efficiently, safely and cleanly is a major asset. As a result, we set earnings and dividend growth targets that we believe are realistic while maintaining our financial strength. Topping...

  • Page 6
    Flip a light switch, turn a heating knob. Easy, right? For our customers, it should be. Energy supply should seldom be on their minds. But we live it 24/7 . Our dedicated and energetic work force is committed to our core values of safety, ethics, excellence and One Dominion, our term for teamwork. ...

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  • Page 9
    ... purchase millions of compact ï¬,uorescent light bulbs. And we began offering customers a "green power" choice to offset their carbon footprints. As always, we will remain actively committed to and engaged in our communities as volunteers, corporate philanthropists and good neighbors. 2008 Dominion...

  • Page 10
    ... million energy-saving compact ï¬,uorescent light bulbs, bringing the total to 2.7 million since 2007 • Maintain a superior safety record • File with Virginia State Corporation Commission a base rate increase request • Offer a "green power" choice to customers interested in carbon offsets...

  • Page 11
    ...the November 2007 2-for -1 stock split 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 This Summary Annual Report includes financial and operating highlights which should not be considered a substitute for our full financial statements, inclusive of footnotes and MD&A, provided to all...

  • Page 12
    ... Ridge Morgantown NedPower Fairless Energy Bear Garden Kincaid Prairie Fork Bath Gordonsville Bremo Yorktown Surry Elizabeth River Chesapeake Virginia City Hybrid Energy Center Wise County Clover Gaston Chesterfield/ Bellemeade/ Hopewell Southampton Roanoke Rapids Dominion Generation As...

  • Page 13
    ... Point LNG Facility Regulated Natural Gas Distribution (OH) E&P Producing Area Dominion Virginia Power As of December 31 Regulated Electric Distribution (VA) and (NC) Electric Transmission Lines (Bulk Delivery) Does not reflect 1.6 million nonregulated retail customer accounts in 12 states. 2008...

  • Page 14
    To Our Investors Thomas F. Farrell II Chairman, President and Chief Executive Officer

  • Page 15
    .... Even now, we are installing new meters, laying new pipes and wires, building new generation, and storing and moving large volumes of natural gas to meet growing demand. Our ability to generate energy efficiently, We have dedicated employees, an outstanding business platform, and the good fortune...

  • Page 16
    ... to keep our infrastructure modernization and expansion plans on track. We will not lie dormant until an economic recovery bell suddenly goes off and, only then, begin. Siting, designing, permitting and constructing a generation facility takes time and large amounts of capital. Preparing now...

  • Page 17
    ...Total Return -21.5 Source: Bloomberg 64.4 3.3 1.0 -11.8 -27.9 -31.9 -5.5 -23.0 -37.0 -10.5 Dominion Dow Jones Utility DJIA S&P 500 from $3.88 per share in 2007. The 2007 results reï¬,ected one-time, after-tax gains related to the sale of our non-Appalachian E&P operations.* In late 2008, your...

  • Page 18
    Free Cash Flow Covers Operations, Maintenance-and Dividend. Revenue generated by our businesses gives us the cash needed to cover the costs of operating and maintaining them efficiently and safely. And it covers your dividend payments, as well as some of our spending for growth- an estimated $2.4 ...

  • Page 19
    ... ratings over time. Popular Stock Purchase Plans: Reliable Market for New Equity. In 2008 we issued $240 million of equity through our employee savings plans and direct stock purchase plan-including our dividend reinvestment plan-among other programs. These popular plans have historically generated...

  • Page 20
    ... hold a core competitive asset. Our authorized returns are established under constructive state regulation by the Virginia State Corporation Commission (SCC) and the North Carolina Utilities Commission. I will describe Virginia regulation later. Dominion Energy is our growing platform of natural gas...

  • Page 21
    ... Virginia Power operating unit is another plus, Dominion Retail. One of the largest competitive mass-market retail energy companies in the U.S., Dominion Retail provides natural gas and electricity- as well as home warranty and protection products and services- to 1.6 million customer accounts...

  • Page 22
    ...military facilities, Fort Lee in the Richmond area and Fort Belvoir in Northern Virginia, for example, will create significant new demand. Virginia is also a global hub of Internet activity, with more than 50 percent of the nation's Web traffic ï¬,owing through 36 data centers in Northern Virginia...

  • Page 23
    ... last year, "Powering Virginia," our program to meet the electricity needs of our customers in Virginia and northeast North Carolina. We are building it on a foundation of energy efficiency, new electric generation fueled by diverse sources, and investments in transmission 2008 Dominion 21

  • Page 24
    ... a "green power" choice to offset some or all of the carbon dioxide produced in the generation of their electricity. Coal Generation: Last year we began constructing a 585-megawatt clean-coal facility in Southwest Virginia known as the Virginia City Hybrid Energy Center. The $1.8 billion station is...

  • Page 25
    ... ensure and improve system reliability, Dominion Virginia Power last year spent about $150 million on preventive maintenance, large cable replacement, tree-trimming and circuit-reconditioning programs. We strive to maintain a diverse mix of fuel sources for generation, both as a natural commodity...

  • Page 26
    consumers and electric power generators. Dominion Energy is one of the nation's leading operators of gas storage, transmission and distribution assets. Our system not only moves gas to the specific delivery points where customers request it, but it also stores new gas supplies much like a bank for ...

  • Page 27
    Our Brayton Point Power Station, New England's largest fossil-fueled power station, also defines our commitment to the environment and to the conservation of natural resources. Brayton Point is putting into place emissions and water usage controls that will benefit Massachusetts and Rhode Island. ...

  • Page 28
    ... reduction Percent Dominion began ownership of Dominion New England (Brayton Point, Manchester Street and Salem Harbor Power Stations) Jan. 1, 2005 0 -20 -40 -60 -80 SO2 -86% NOx -80% Mercury -88% -100 1998 2000 2002 2004 2006 2007 2010 2015 Cleaner Air in Virginia Projected emissions...

  • Page 29
    ... Basin completed 2008 with four consecutive years of no lost-time accidents. At the business unit that manages the company's generating facilities powered by fossil fuels and hydroelectric resources, our employees turned in the best safety performance on record. They reduced accidents by 45...

  • Page 30
    ...cient nuclear stations, respectively, in 2007 , the most recent data available. In addition, our regulated utility fossil ï¬,eet had an equivalent forced outage rate on demand of 3.8 percent in 2008, the best on record. Electric service was available to the typical Dominion Virginia Power customer...

  • Page 31
    ... every day to operating safely and reliably, getting the most from our business platform, maintaining high performance, and nurturing a customer-centric culture and constructive regulatory relationships. In our communities, we do our best to support education, the environment, human services, the...

  • Page 32
    ...communications with analysts and investors. Dominion management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power. Reconciliation of Operating (non-GAAP) Return on Equity to Reported (GAAP) Return on Equity 2007 Millions % 2008 Millions...

  • Page 33
    ... and Chief Operating Officer, Dominion Virginia Power George A. Davidson, Jr. Retired Chairman, Dominion Resources, Inc. Thomas N. Chewning Executive Vice President and Chief Financial Officer Robert M. Blue Senior Vice President, Public Policy and Corporate Communications Thomas F. Farrell II...

  • Page 34
    ... "New Member Sign Up." After you have signed up, you will be able to monitor your account, make changes and review your Dominion Activity Statements at your convenience. Direct Stock Purchase Plan You may buy Dominion common stock through Dominion Direct ®. Please contact Shareholder Services for...

  • Page 35
    Corporate Street Address Dominion Resources, Inc. 120 Tredegar Street Richmond, Virginia 23219 Mailing Address Dominion Resources, Inc. P.O. Box 26532 Richmond, Virginia 23261-6532 Web Site www.dom.com Independent Registered Public Accounting Firm Deloitte & Touche LLP Richmond, Virginia Shareholder...

  • Page 36
    Dominion Resources, Inc. P.O. Box 26532 Richmond, Virginia 23261- 6532 w w w.dom.com 34 Dominion 2008