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Investments

6 Months Ended

Jun. 30, 2011

Note 11. Investments

Dominion

Equity and Debt Securities

Rabbi Trust Securities

Marketable equity and debt securities and cash equivalents held in Dominion's rabbi trusts and classified as trading totaled $98 million and $93 million at June 30, 2011 and December 31, 2010, respectively. Net unrealized gains on trading securities totaled $1 million and $4 million for the three and six months ended June 30, 2011, respectively. Net unrealized losses on trading securities totaled $3 million and $1 million for the three and six months ended June 30, 2010, respectively. Cost-method investments held in Dominion's rabbi trusts totaled $17 million and $18 million at June 30, 2011 and December 31, 2010, respectively.

Decommissioning Trust Securities

Dominion holds marketable equity and debt securities (classified as available-for-sale), cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Dominion's decommissioning trust funds are summarized below.


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses ⁽¹⁾			Fair Value
(millions)
June 30, 2011
Marketable equity securities
U.S.:
Large Cap	$	1,187	$	597	$	—		$	1,784
Other		41		11		—			52
Marketable debt securities:
Corporate bonds		274		18		(1	)		291
U.S. Treasury securities and agency debentures		499		14		(1	)		512
State and municipal		213		13		(1	)		225
Other		22		—		—			22
Cost method investments		110		—		—			110
Cash equivalents and other⁽²⁾		44		—		—			44

Total	$	2,390	$	653	$	(3	)⁽³⁾	$	3,040

December 31, 2010
Marketable equity securities:
U.S.:
Large Cap	$	1,161	$	515	$	—		$	1,676
Other		39		11		—			50
Marketable debt securities:
Corporate bonds		310		18		(1	)		327
U.S. Treasury securities and agency debentures		380		12		(1	)		391
State and municipal		244		7		(4	)		247
Other		19		—		—			19
Cost method investments		108		—		—			108
Cash equivalents and other⁽²⁾		79		—		—			79

Total	$	2,340	$	563	$	(6	)(3)	$	2,897

(1)	Included in AOCI and the decommissioning trust regulatory liability.

(2)	Includes pending purchases of securities of $25 million and $43 million at June 30, 2011 and December 31, 2010, respectively.

(3)

The fair value of securities in an unrealized loss position was $235 million and $252 million at June 30, 2011 and December 31, 2010, respectively.

The fair value of Dominion's marketable debt securities held in nuclear decommissioning trust funds at June 30, 2011 by contractual maturity is as follows:


	Amount
(millions)
Due in one year or less	$	100
Due after one year through five years		300
Due after five years through ten years		316
Due after ten years		334

Total	$	1,050

Presented below is selected information regarding Dominion's marketable equity and debt securities held in nuclear decommissioning trust funds.


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(millions)
Proceeds from sales	$	437	$	627	$	939	$	1,140
Realized gains⁽¹⁾		18		17		32		73
Realized losses⁽¹⁾		12		28		20		54

(1)	Includes realized gains or losses recorded to the decommissioning trust regulatory liability.

Dominion recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(millions)
Total other-than-temporary impairment losses⁽¹⁾	$	10		$	41		$	15		$	48
Losses recorded to decommissioning trust regulatory liability		(4	)		(13	)		(6	)		(16	)
Losses recognized in other comprehensive income (before taxes)		(1	)		(1	)		(1	)		(2	)

Net impairment losses recognized in earnings	$	5		$	27		$	8		$	30

(1)	Amount includes other-than-temporary impairment losses for debt securities of $1 million for the three months ended June 30, 2011 and 2010, and $2 million and $3 million for the six months ended June 30, 2011 and 2010, respectively.

Virginia Power

Decommissioning Trust Securities

Virginia Power holds marketable equity and debt securities (classified as available-for-sale), cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Virginia Power's decommissioning trust funds are summarized below.


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾			Fair Value
(millions)
June 30, 2011
Marketable equity securities:
U.S.:
Large Cap	$	474	$	243	$	—		$	717
Other		20		6		—			26
Marketable debt securities:
Corporate bonds		166		10		(1	)		175
U.S. Treasury securities and agency debentures		232		4		(1	)		235
State and municipal		76		2		—			78
Other		17		—		—			17
Cost method investments		110		—		—			110
Cash equivalents and other⁽²⁾		21		—		—			21

Total	$	1,116	$	265	$	(2	)⁽³⁾	$	1,379

December 31, 2010
Marketable equity securities
U.S.:
Large Cap	$	469	$	207	$	—		$	676
Other		20		5		—			25
Marketable debt securities:
Corporate bonds		205		10		—			215
U.S. Treasury securities and agency debentures		141		2		—			143
State and municipal		103		1		(2	)		102
Other		15		—		—			15
Cost method investments		108		—		—			108
Cash equivalents and other⁽²⁾		35		—		—			35

Total	$	1,096	$	225	$	(2	)⁽³⁾	$	1,319

(1)	Included in AOCI and the decommissioning trust regulatory liability.

(2)	Includes pending purchases of securities of $27 million and $35 million at June 30, 2011 and December 31, 2010, respectively.

(3)	The fair value of securities in an unrealized loss position was $134 million and $159 million at June 30, 2011, and December 31, 2010, respectively.

The fair value of Virginia Power's debt securities at June 30, 2011, by contractual maturity is as follows:


	Amount
(millions)
Due in one year or less	$	11
Due after one year through five years		157
Due after five years through ten years		199
Due after ten years		138

Total	$	505

Presented below is selected information regarding Virginia Power's marketable equity and debt securities.


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(millions)
Proceeds from sales	$	253	$	407	$	596	$	711
Realized gains⁽¹⁾		6		8		11		37
Realized losses⁽¹⁾		4		2		8		20

(1)	Includes realized gains or losses recorded to the decommissioning trust regulatory liability.

Virginia Power recorded other-than-temporary impairment losses on investments as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(millions)
Total other-than-temporary impairment losses⁽¹⁾	$	5		$	16		$	7		$	19
Losses recorded to decommissioning trust regulatory liability		(4	)		(13	)		(6	)		(16	)

Net impairment losses recognized in earnings		$1			$3			$1			$3

(1)

Amount includes other-than-temporary impairment losses for debt securities of $1 million for the three months ended June 30, 2011 and 2010, and $2 million for the six months ended June 30, 2011 and 2010.

Virginia Electric and Power Company [Member]

Investments

Note 11. Investments

Dominion

Equity and Debt Securities

Rabbi Trust Securities

Decommissioning Trust Securities


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses ⁽¹⁾			Fair Value
(millions)
June 30, 2011
Marketable equity securities
U.S.:
Large Cap	$	1,187	$	597	$	—		$	1,784
Other		41		11		—			52
Marketable debt securities:
Corporate bonds		274		18		(1	)		291
U.S. Treasury securities and agency debentures		499		14		(1	)		512
State and municipal		213		13		(1	)		225
Other		22		—		—			22
Cost method investments		110		—		—			110
Cash equivalents and other⁽²⁾		44		—		—			44

Total	$	2,390	$	653	$	(3	)⁽³⁾	$	3,040

December 31, 2010
Marketable equity securities:
U.S.:
Large Cap	$	1,161	$	515	$	—		$	1,676
Other		39		11		—			50
Marketable debt securities:
Corporate bonds		310		18		(1	)		327
U.S. Treasury securities and agency debentures		380		12		(1	)		391
State and municipal		244		7		(4	)		247
Other		19		—		—			19
Cost method investments		108		—		—			108
Cash equivalents and other⁽²⁾		79		—		—			79

Total	$	2,340	$	563	$	(6	)(3)	$	2,897

(1)	Included in AOCI and the decommissioning trust regulatory liability.

(2)	Includes pending purchases of securities of $25 million and $43 million at June 30, 2011 and December 31, 2010, respectively.

(3)	The fair value of securities in an unrealized loss position was $235 million and $252 million at June 30, 2011 and December 31, 2010, respectively.

The fair value of Dominion's marketable debt securities held in nuclear decommissioning trust funds at June 30, 2011 by contractual maturity is as follows:


	Amount
(millions)
Due in one year or less	$	100
Due after one year through five years		300
Due after five years through ten years		316
Due after ten years		334

Total	$	1,050

Presented below is selected information regarding Dominion's marketable equity and debt securities held in nuclear decommissioning trust funds.


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(millions)
Proceeds from sales	$	437	$	627	$	939	$	1,140
Realized gains⁽¹⁾		18		17		32		73
Realized losses⁽¹⁾		12		28		20		54

(1)	Includes realized gains or losses recorded to the decommissioning trust regulatory liability.

Dominion recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(millions)
Total other-than-temporary impairment losses⁽¹⁾	$	10		$	41		$	15		$	48
Losses recorded to decommissioning trust regulatory liability		(4	)		(13	)		(6	)		(16	)
Losses recognized in other comprehensive income (before taxes)		(1	)		(1	)		(1	)		(2	)

Net impairment losses recognized in earnings	$	5		$	27		$	8		$	30

(1)	Amount includes other-than-temporary impairment losses for debt securities of $1 million for the three months ended June 30, 2011 and 2010, and $2 million and $3 million for the six months ended June 30, 2011 and 2010, respectively.

Virginia Power

Decommissioning Trust Securities


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾			Fair Value
(millions)
June 30, 2011
Marketable equity securities:
U.S.:
Large Cap	$	474	$	243	$	—		$	717
Other		20		6		—			26
Marketable debt securities:
Corporate bonds		166		10		(1	)		175
U.S. Treasury securities and agency debentures		232		4		(1	)		235
State and municipal		76		2		—			78
Other		17		—		—			17
Cost method investments		110		—		—			110
Cash equivalents and other⁽²⁾		21		—		—			21

Total	$	1,116	$	265	$	(2	)⁽³⁾	$	1,379

December 31, 2010
Marketable equity securities
U.S.:
Large Cap	$	469	$	207	$	—		$	676
Other		20		5		—			25
Marketable debt securities:
Corporate bonds		205		10		—			215
U.S. Treasury securities and agency debentures		141		2		—			143
State and municipal		103		1		(2	)		102
Other		15		—		—			15
Cost method investments		108		—		—			108
Cash equivalents and other⁽²⁾		35		—		—			35

Total	$	1,096	$	225	$	(2	)⁽³⁾	$	1,319

(1)	Included in AOCI and the decommissioning trust regulatory liability.

(2)	Includes pending purchases of securities of $27 million and $35 million at June 30, 2011 and December 31, 2010, respectively.

(3)	The fair value of securities in an unrealized loss position was $134 million and $159 million at June 30, 2011, and December 31, 2010, respectively.

The fair value of Virginia Power's debt securities at June 30, 2011, by contractual maturity is as follows:


	Amount
(millions)
Due in one year or less	$	11
Due after one year through five years		157
Due after five years through ten years		199
Due after ten years		138

Total	$	505

Presented below is selected information regarding Virginia Power's marketable equity and debt securities.


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(millions)
Proceeds from sales	$	253	$	407	$	596	$	711
Realized gains⁽¹⁾		6		8		11		37
Realized losses⁽¹⁾		4		2		8		20

(1)	Includes realized gains or losses recorded to the decommissioning trust regulatory liability.

Virginia Power recorded other-than-temporary impairment losses on investments as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(millions)
Total other-than-temporary impairment losses⁽¹⁾	$	5		$	16		$	7		$	19
Losses recorded to decommissioning trust regulatory liability		(4	)		(13	)		(6	)		(16	)

Net impairment losses recognized in earnings	$	1		$	3		$	1		$	3

(1)	Amount includes other-than-temporary impairment losses for debt securities of $1 million for the three months ended June 30, 2011 and 2010, and $2 million for the six months ended June 30, 2011 and 2010.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694
-Topic 320

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901
-Topic 320

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

+ Details