UPDATE 1-Jefferies raises Dominion Resources to hold

Nov 5 (Reuters) - Jefferies and Co upgraded Dominion Resources Inc (D.N) to "hold" from "underperform", saying Virginia State Corporation Commission's permission to Virginia Electric Power Co (VEPCO) to issue $1.5 billion new equity will favor the power company.

"Based on the projected higher equity allowed at VEPCO, we believe that the utility will be able to earn at a higher level over the next several years," the brokerage said in a note.

Taking into consideration the current forward prices for oil and gas, Dominion was fairly valued, the brokerage said.

Dominion Resources, which operates in three main business segments -- Dominion Virginia Power, Dominion Energy and Dominion Generation, is structured under two legal entities -- Virginia Electric and Power Company, and Dominion Resources Inc.

Shares of the company closed at $35.10 Wednesday on the New York Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Jarshad Kakkrakandy)