Dominion Power 2008 Annual Report Download - page 19

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2008 Dominion 17
Of course, our access to the capital markets depends strongly on our
credit ratings. You can be assured that the company will work to maintain its
solid ratings. Standard & Poor’s, Fitch and Moody’s rated Dominion Resources
senior unsecured debt A-, BBB+ and Baa2, respectively. Each maintains a
“stable” outlook on its rating. The agencies rate Virginia Electric and Power
Company senior unsecured debt A-, A- and Baa1 respectively, all with
stable outlooks. We manage our cash coverage ratios and balance sheet to
targets that we believe will maintain these 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 gener-
ated about $250 million per year, thanks to continued interest by our existing
shareholders in purchasing additional Dominion shares. This is an important
advantage. The amounts raised through these plans are expected to offset the
need for us to “time” the equity markets and issue large blocks of stock.
We still foresee the need to issue additional equity, more than half of
which will be handled through the reliable annual contribution of our employ-
ee savings plans and direct stock purchase plan, for a total of $500 million in
2009 and $400 million in 2010.
To help with the remaining needs, we have entered into at-the-market
sales agency agreements with major financial institutions that will allow
the company to offer common stock from time to time during the course of
those agreements. In light of Dominion’s total market capitalization—about
$21 billion at year-end—our planned equity issuances in 2009 and 2010
represent a relatively small amount of our equity base.
Proceeds Expected From Asset Sales. Hard cash from asset sales
plays a continuing role in Dominion’s management of your capital. It also
helps to neutralize the need to access capital markets and issue new shares.
You can be assured that the company will work
to maintain its solid [credit] ratings.