Dominion Power 2009 Annual Report Download

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A Century of
Strength
and Excellence
2009
Summary
Annual
Report

Table of contents

  • Page 1
    A Century of Strength and Excellence 2009 Summary Annual Report

  • Page 2
    ... Highlights Dominion at a Glance Dominion Virginia Power Dominion Energy Dominion Generation CEO Letter GAAP Reconciliations Directors & Officers Shareholder Information Dominion celebrated its centennial in 2009 with an exhibit and scrapbook that have been displayed at company locations and...

  • Page 3
    ... and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage system with 942 billion cubic feet of storage capacity and serves retail energy customers in 12 states.* For more information about Dominion, visit the company's site at...

  • Page 4
    ... in millions) $ 3,786 (3,695) (112) $ 2,676 (3,490) 598 Return on average common equity-reported Return on average common equity-operating* Common shares outstanding-average, diluted Common shares outstanding-year- end Number of full-time employees * Based on Non-GAAP Financial Measures. See page...

  • Page 5
    Operating Earnings* Dollars Per Share 2.53 2.26 2.56 3.16 3.27 * Based on Non- GAAP Financial Measures. See page 25 for GAAP reconciliations. 2005 2006 2007 2008 2009 Year-end Stock Price Dollars Per Share 38.60 41.92 47.45 38.92 35.84 2005 2006 2007 2008 2009 2009 Dominion 3

  • Page 6
    ... the company's Appalachian-based natural gas and oil exploration and production business and producer services. It has operations in Ohio, Pennsylvania, West Virginia, Virginia, Maryland and New York. Dominion Generation Operates the company's fleet of regulated power stations serving its electric...

  • Page 7
    ... introductory energy conservation programs expected to reduce peak demand by electric customers in Virginia by 650 megawatts Natural gas transmission Natural gas distribution Natural gas storage Gas and oil exploration and production; producer services • Placed newly expanded Dominion Cove...

  • Page 8
    ... electric service and meet vital public need, we are constructing 11 power transmission projects, including one that will help transmit needed electric supply to the energy-hungry Washington suburbs of Northern Virginia.

  • Page 9
    1 Dominion Virginia Power As of December 31 3 Regulated Electric Distribution (VA) and (NC) Electric Transmission Lines Bulk Delivery Does not reflect 1.9 million nonregulated retail customer accounts in 12 states. 2009 Dominion 7

  • Page 10
    ...in the Appalachian Basin. Dominion Energy As o December Natural Gas Transmission Pipelines Natural Gas Transmission Pipelines (Partnership) Natural Gas Underground Storage Pools Cove Point LNG Facility Regulated Natural Gas Distribution (OH) and (WV) E&P Producing Area Marcellus Shale Formation 1

  • Page 11
    ..., which is designed to transport gas produced in West Virginia and southwestern Pennsylvania to storage fields and pipelines in Pennsylvania. 1 Our USA Storage Project entered service in late 2009. 2 A 60,000 gallon per day expansion of the Hastings Extraction Plant in Wetzel County is part of...

  • Page 12
    ... New England is a major beneficiary of our planned $3.7 billion in environmental spending. 4 We are using natural gas to fire the 580-megawatt Bear Garden facility under construction in Central Virginia that is expected to begin operating in 2011. 3% Generation Mix-Merchant Fleet 2009 Electric...

  • Page 13
    Dominion Generation As of December 31 Generation Stations in Operation Coal Hydro Natural Gas Nuclear Oil /Gas Biomass Wind New Generation Stations Planned/ Under Development Coal Natural Gas Biomass Wind 3 Phase 1 in Operation Wind 2 4 2009 Dominion 11

  • Page 14
    Dear investors Thomas F. Farrell II • Chairman, President and Chief Executive Officer Integrity in performance-doing what we say and doing it right-is the single most important legacy we carry to the future. 12 Dominion 2009

  • Page 15
    ... given Dominion's continued migration toward a more regulated business model. We ended last year with our payout ratio nearing 54 percent of operating earnings.* In early 2010, your board declared a 4.6 percent increase in its quarterly dividend-an annual rate of $1.83 per share of common stock...

  • Page 16
    .... Expect more dividend increases in line with our payout ratio goals in coming years, subject to board approval. Superior Operations, Safety Performance Safety re- mains our No. 1 priority. In 2009, Dominion's U.S. Occupational Safety and Health Administration recordable incident rate equaled that...

  • Page 17
    ... for new energy and new infrastructure still growing. At our service area core is Virginia-one of the nation's most durable state economies. CNBC calls Virginia America's "Top State for Business." Forbes' Web site has weighed in with a "Best State for Business" distinction for the Old Dominion. Long...

  • Page 18
    ... turbulent 2009, Dominion Virginia Power connected more than 31,000 new accounts-down from 37,000 new connects in 2008 and nearly 50,000 in 2007. Yet, the regional transmission organization, PJM Interconnection, forecasts that peak demand for electricity will grow faster in Dominion's service area...

  • Page 19
    ... clauses (called "riders") are already in place for the company's two largest ongoing construction projects-a clean coal facility in Southwest Virginia (Virginia City Hybrid Energy Center) and a natural gas-fired station in Central Virginia (Bear Garden). The SCC sets rates on current recovery...

  • Page 20
    ... appropriate credit ratings. In early 2010, we completed our long-planned sale of Dominion Peoples, the natural gas distribution company in Pennsylvania serving about 359,000 homes and businesses. The sales price was approximately $780 million, adjusted for changes in working capital, capital...

  • Page 21
    ... on its rating. The agencies rate Virginia Electric and In short, we plan to use a prudent balance of debt and equity to build on a foundation of energy efficiency, new electric generation fueled by diverse sources and investments in transmission and distribution projects. Power Company senior...

  • Page 22
    ... preventing some West Virginia and Pennsylvania gas production from getting to customers in the Northeast and mid- Natural gas transmission pipeline expansions are another critical part of our business plan. The 1937 construction of New York State Natural Gas's Line No. 8. 20 Dominion 2009

  • Page 23
    ... Energy. It entered service in 2009 and produces 300 megawatts, enough electricity to power 75,000 residences and businesses. Dominion's ownership of wind farms under development or in operation would supply more than 900 megawatts of generating capacity to the grid. Overall, the company's renewable...

  • Page 24
    ... energy sources, along with the promise of new intercontinental gas pipeline capacity, and emerging delivery technology, such as smart metering, hold large potential benefits for Dominion shareholders and customers alike. Launching 'SmartGrid' Technology in Virginia In our electric utility service...

  • Page 25
    ... merchant and utility generating ï¬,eet. As pictured in the line charts below, mercury, sulfur and nitrogen oxides Cleaner Air in New England Projected emissions reduction Percent Dominion began ownership of Dominion New England (Brayton Point, Manchester Street and Salem Harbor Power Stations) Jan...

  • Page 26
    ... that our company is a place where employees volunteered approximately 125,000 hours of their time in 2009 to work in their communities-weatherizing homes, improving parks, stacking shelves at food banks, walking to raise funds to help find the cure for debilitating, sometimes fatal diseases. Most...

  • Page 27
    ... 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 2008 Millions % 2009 Millions % Common Shareholders' Equity...

  • Page 28
    ... and Chief Executive Officer, Dominion Virginia Power James K. Martin Senior Vice President, Regulation and Integrated Planning, Dominion Resources Services George A. Davidson, Jr. Retired Chairman, Dominion Resources, Inc. Robert H. Spilman, Jr. President and Chief Executive Officer, Bassett...

  • Page 29
    ... follow the directions for "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 Dominion has published its 2009 annual report to shareholders in a smaller...

  • Page 30
    Shareholder information, continued 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 & ...

  • Page 31
    ... center Credits: When asked why men take jobs working atop 60-foot creosote-covered poles in blistering heat or numbing cold, one VEPCO lineman replied in a 1949 interview, "I'd go crazy being cooped up inside an office all day." Lineman Jason George, of Fredericksburg, Va., is part of a Dominion...

  • Page 32
    Dominion RESouRCES, inC. • P.O. Box 26532 • Richmond, Virginia 23261-6532 • www.dom.com