Dominion Power 2009 Annual Report Download - page 17

2009 Dominion 15
Further Minimizing Variables, Underscoring Depend-
ability Dominion has essentially become a “regu-
lated plus” business model, one that does not get
whip-sawed by factors beyond our control. Some
things about the power business we will never com-
mand—Mother Nature, for one—but where we can
minimize the effect of events and circumstances on
our performance, we will.
Recall that when we sold substantially all of our
E&P assets, the first and obvious question was:
“Why?” The business made money. In fact, by the
end of 2006, Dominion E&P represented 34 percent
of our operating earnings.
But our E&P operations on the Gulf Coast, in the
Rockies, in Canada and elsewhere seldom provided
earnings as consistently or as predictably as we and
our investors preferred. Today, with more than half
of our operating earnings coming from state- and
federally regulated energy businesses, we can chart
the course ahead with greater certainty and, conse-
quently, with better results. Operating earnings are
growing, dividends are increasing, and our credit
ratings are remaining stable and strong.
Continued Economic Strength in Our Electric Utility
Franchise Service Area As I freely admit, we deliver
our promises with terrific home-court, natural
advantages.
While weaker commodity prices and declining pow-
er sales are affecting the entire sector, we have the
continuing good fortune to serve one of the nation’s
best regional economies, with demand for new en-
ergy and new infrastructure still growing.
At our service area core is Virginia—one of the na-
tion’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 a principal venue for national military and
intelligence centers—including the Pentagon, the
world’s largest naval base in Norfolk and the only
U.S. location capable of aircraft carrier construction
—Virginia began emerging a couple of decades
ago as the global hub of Internet activity. Today,
more than 50 percent of the nation’s Web traffic
flows through 36 data centers in the portions of
Northern Virginia served by Dominion Virginia
Power. Collectively these data centers require an
enormous amount of electricity—enough to power
nearly 325,000 average residential households.
While weaker commodity prices and
declining power sales are affecting
the entire sector, we have the con-
tinuing good fortune to serve one of
the nation’s best regional economies,
with demand for new energy and new
infrastructure still growing.
Dominion is headquartered
in Richmond, Va., and
serves more than 5 million
customer accounts in the
mid-Atlantic, Midwest and
Northeast.
Trolley cars rolled through
Richmond for almost 100
years. This photograph, look-
ing west from 11th Street,
shows a car along Main
Street in the early 20th
Century.