Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Fair Value, by Balance Sheet Grouping

	Level 1		Level 2		Level 3		Total
(millions)
At June 30, 2011
Assets
Derivatives:
Commodity	$	37	$	469	$	82	$	588
Interest rate		—		85		—		85
Investments(1):
Equity securities:
U.S.:
Large cap		1,819		—		—		1,819
Other		58		—		—		58
Non-U.S.:
Large cap		12		—		—		12
Fixed Income:
Corporate debt instruments		—		291		—		291
U.S. Treasury securities and agency debentures		348		164		—		512
State and municipal		—		268		—		268
Other		—		22		—		22
Cash equivalents and other		—		70		—		70
Restricted cash equivalents		—		301		—		301
Total assets	$	2,274	$	1,670	$	82	$	4,026
Liabilities
Derivatives:
Commodity	$	9	$	529	$	204	$	742
Interest Rate		—		34		—		34
Total liabilities	$	9	$	563	$	204	$	776
At December 31, 2010
Assets
Derivatives:
Commodity	$	62	$	734	$	47	$	843
Interest rate		—		54		—		54
Investments(1):
Equity securities:
U.S.:
Large cap		1,709		—		—		1,709
Other		56		—		—		56
Non-U.S.:
Large cap		12		—		—		12
Fixed Income:
Corporate debt instruments		—		327		—		327
U.S. Treasury securities and agency debentures		228		165		—		393
State and municipal		—		286		—		286
Other		—		19		—		19
Cash equivalents and other		25		97		—		122
Restricted cash equivalents		—		400		—		400
Total assets	$	2,092	$	2,082	$	47	$	4,221
Liabilities
Derivatives:
Commodity	$	12	$	716	$	97	$	825
Interest rate		—		5		—		5
Total liabilities	$	12	$	721	$	97	$	830

(1) Includes investments held in the nuclear decommissioning and rabbi trusts.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(millions)
Beginning balance	$	(163	)	$	(60	)	$	(50	)	$	(66	)
Total realized and unrealized gains (losses):
Included in earnings		(22	)		12			(8	)		13
Included in other comprehensive income (loss)		35			61			(59	)		85
Included in regulatory assets/liabilities		(11	)		19			(32	)		14
Settlements		39			(3	)		23			(18	)
Transfers out of Level 3		—			3			4			4
Ending balance	$	(122	)	$	32		$	(122	)	$	32
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	$	27		$	3		$	31		$	(11	)

Fair Value, Unobservable Inputs, Gain (Loss) Included In Earnings

	Operating revenue			Electric fuel and other energy-related purchases			Purchased gas			Total
(millions)
Three Months Ended June 30, 2011
Total gains (losses) included in earnings	$	2		$	(24	)	$	—		$	(22	)
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date		27			—			—			27
Three Months Ended June 30, 2010
Total gains (losses) included in earnings	$	6		$	6		$	—		$	12
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date		3			—			—			3
Six Months Ended June 30, 2011
Total gains (losses) included in earnings	$	—		$	(8	)	$	—		$	(8	)
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date		31			—			—			31
Six Months Ended June 30, 2010
Total gains (losses) included in earnings	$	(10	)	$	26		$	(3	)	$	13
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date		(9	)		—			(2	)		(11	)

Cost and Fair Value of Financial Instruments Disclosure

	June 30, 2011				December 31, 2010
	Carrying Amount		Estimated  Fair Value(1)		Carrying Amount		Estimated  Fair Value(1)
(millions)
Dominion
Long-term debt, including securities due within one year(2)	$	15,578	$	17,323	$	14,520	$	16,112
Junior subordinated notes payable to affiliates		268		275		268		261
Enhanced junior subordinated notes		1,467		1,576		1,467		1,560
Subsidiary preferred stock(3)		257		264		257		249
Virginia Power
Long-term debt, including securities due within one year(2)	$	6,869	$	7,782	$	6,717	$	7,489
Preferred stock(3)		257		264		257		249

(1) Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. The carrying amount of debt issues with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2) Includes amounts which represent the unamortized discount and premium. At June 30, 2011 and December 31, 2010, includes the valuation of certain fair value hedges associated with Dominion's fixed rate debt of approximately $81 million and $49 million, respectively.

(3) Includes issuance expenses of $2 million at June 30, 2011 and December 31, 2010.