Profile: Dominion Resources Inc (D.N)
19 Dec 2014
Dominion Resources, Inc. (Dominion), incorporated on February 18, 1983, is a producer and transporter of energy. The Company is a provider of electricity, natural gas and related services to customers primarily in the eastern region of the United States. Dominion’s portfolio of assets includes approximately 27,500 megawatts of generating capacity, 6,300 miles of electric transmission lines, 56,900 miles of electric distribution lines, 11,000 miles of natural gas transmission, gathering and storage pipeline and 21,800 miles of gas distribution pipeline, exclusive of service lines of two inches in diameter or less. Dominion also operates one of the underground natural gas storage systems, with approximately 947 billion cubic feet of storage capacity, and serves nearly six million utility and retail energy customers in 15 states. In April 2014, the Company acquired six solar development projects from Recurrent Energy, one of North America's developers of utility scale solar projects.
The Company operates in three segments: Dominion Virginia Power (DVP), Dominion Generation and Dominion Energy. Dominion’s operations are conducted through various subsidiaries, including Virginia Electric and Power Company (Virginia Power). In January 2013, the Company purchased a 15-megawatt natural gas-powered fuel cell generating project.
Virginia Electric and Power Company
Virginia Power is a Virginia public service corporation, is a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and North Carolina. Virginia, Virginia Power conducts business under the name Dominion Virginia Power. In North Carolina, it conducts business under the name Dominion North Carolina Power. In addition, Virginia Power sells electricity at wholesale prices to rural electric cooperatives, municipalities and into wholesale electricity markets. Virginia Power manages its daily operations through two primary operating segments: DVP and Dominion Generation. Virginia Power has approximately 6,300 miles of electric transmission lines of 69 kilovolt or more located in the states of North Carolina, Virginia and West Virginia. In December 2012, Virginia Power completed construction of the Hayes-to-Yorktown line.
Dominion Virginia Power
The DVP Operating Segment of Virginia Power includes Virginia Power’s regulated electric transmission and distribution ,including customer service operations, which serve approximately 2.5 million residential, commercial, industrial and governmental customers in Virginia and North Carolina. Virginia Power has its five-year investment plan. Virginia Power has approximately 6,300 miles of electric transmission lines of 69 kilovolt or more located in the states of North Carolina, Virginia and West Virginia. Its retail energy marketing operations compete against incumbent utilities and other energy marketers in nonregulated energy markets for natural gas and electricity. The DVP Operating Segment of Dominion includes all of Virginia Power's regulated electric transmission and distribution operations. Virginia Power is converting three coal-fired Virginia generating stations to biomass, a renewable energy source.
The Dominion Generation Operating Segment of Virginia Power includes the generation operations of the Virginia Power regulated electric utility and its related energy supply operations. Virginia Power's utility generation operations primarily serve the supply requirements for the DVP segment's utility customers. Earnings for the Generation operating segment of Virginia Power primarily result from the sale of electricity generated by its utility fleet. Revenue is based primarily on rates established by state regulatory authorities and state law. Approximately 80% of revenue comes from serving Virginia jurisdictional customers.
The Dominion Generation Operating Segment of Dominion includes Virginia Power's generation facilities and its related energy supply operations described above as well as the generation operations of Dominion's merchant fleet and energy marketing and price risk management activities for these assets. The Generation operating segment of Dominion derives its earnings primarily from the sale of electricity generated by Virginia Power's utility and Dominion's merchant generation assets, as well as from associated capacity and ancillary services. Dominion Generation uses a variety of fuels to power its electric generation and purchases power for utility system load requirements and to satisfy physical forward sale requirements. Dominion Generation manages a portfolio of natural gas transportation contracts (capacity) that allows flexibility in delivering natural gas to its gas turbine fleet, while minimizing costs.
Dominion Generation purchases electricity from the PJM spot market and through power purchase agreements with other suppliers to provide for utility system load requirements. Dominion Generation also occasionally purchases electricity from the PJM, ISO-NE and MISO spot markets to satisfy physical forward sale requirements as part of its merchant generation operations. Dominion has three licensed, operating nuclear reactors, two at Millstone in Connecticut and one at Kewaunee in Wisconsin.
Dominion Energy includes Dominion's regulated natural gas distribution companies, regulated gas transmission pipeline and storage operations, natural gas gathering and by-products extraction activities, regulated LNG operations and its investment in the Blue Racer joint venture. Dominion Energy also includes producer services, which aggregates natural gas supply, engages in natural gas trading and marketing activities and natural gas supply management and provides price risk management services to Dominion affiliates.
The gas transmission pipeline and storage business serves gas distribution businesses and other customers in the Northeast, mid-Atlantic and Midwest. Included in Dominion's gas transmission pipeline and storage business is its gas gathering and extraction activity, which sells extracted products at market rates. Dominion's LNG operations involve the import and storage of LNG at Cove Point and the transportation of regasified LNG to the interstate pipeline grid and mid-Atlantic and Northeast markets. In connection with the increase in Eastern United States natural gas production, including from the Marcellus and Utica Shale formations, Dominion has requested regulatory authority to operate Cove Point as a bi-directional facility, able to import LNG, and vaporize it as natural gas, and liquefy natural gas and export it as LNG. Dominion will contribute to the joint venture a network of wet gas gathering assets, the Natrium extraction plant and other assets.
Revenue provided by Dominion's regulated gas transmission and storage and LNG operations is based primarily on rates established by FERC. Additionally, Dominion receives revenue from firm fee-based contractual arrangements, including negotiated rates, for certain gas transportation, gas storage, LNG storage and regasification services. Dominion's gas distribution operations serve residential, commercial and industrial gas sales, transportation and gathering service customers. Dominion Energy's gas distribution network is located in the states of Ohio and West Virginia. This network involves approximately 21,800 miles of pipe, exclusive of service lines of two inches in diameter or less.
Dominion Energy has approximately 11,000 miles of gas transmission, gathering and storage pipelines located in the states of Maryland, New York, Ohio, Pennsylvania, Virginia and West Virginia. Dominion Energy operates gas processing and fractionation facilities in West Virginia with a total processing capacity of 267,000 million cubic feet per day and fractionation capacity of 582,000 gallons per day. Dominion Energy also operates 20 underground gas storage fields located in New York, Ohio, Pennsylvania and West Virginia, with almost 2,000 storage wells and approximately 349,000 acres of operated leaseholds.
Dominion Resources Inc
120 TREDEGAR STREET
RICHMOND VA 23219