Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans funded status

The following table summarizes the changes in Dominion's pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans' funded status:



	Pension Benefits						Other Postretirement Benefits
Year Ended December 31,	2011			2010			2011			2010
(millions, except percentages)
Changes in benefit obligation:
Benefit obligation at beginning of year	$	4,490		$	4,126		$	1,707		$	1,555
Service cost	108			102			48			56
Interest cost	258			266			94			101
Benefits paid	(215		)	(211		)	(83		)	(82		)
Actuarial (gains) losses during the year	340			210			(210		)	36
Transfer⁽¹⁾	—			(48		)	—			—
Plan amendments	—			1			(70		)	—
Settlements and curtailments⁽²⁾	—			34			(1		)	35
Special termination benefits⁽³⁾	—			10			—			1
Medicare Part D reimbursement	—			—			5			5
Early Retirement Reimbursement Program	—			—			3			—
Benefit obligation at end of year	$	4,981		$	4,490		$	1,493		$	1,707
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	5,106		$	4,226		$	1,031		$	918
Actual return on plan assets	247			532			26			92
Employer contributions	7			665			19			56
Benefits paid	(215		)	(211		)	(34		)	(35		)
Transfer⁽¹⁾	—			(106		)	—			—
Fair value of plan assets at end of year	$	5,145		$	5,106		$	1,042		$	1,031
Funded status at end of year	$	164		$	616		$	(451	)	$	(676	)
Amounts recognized in the Consolidated Balance Sheets at December 31:
Noncurrent pension and other postretirement benefit assets	677			710			4			2
Other current liabilities	(3		)	(4		)	(3		)	(3		)
Noncurrent pension and other postretirement benefit liabilities	(510		)	(90		)	(452		)	(675		)
Net amount recognized	$	164		$	616		$	(451	)	$	(676	)
Significant assumptions used to determine benefit obligations as of December 31:
Discount rate	5.5		%	5.9		%	5.5		%	5.9		%
Weighted average rate of increase for compensation	4.21		%	4.61		%	4.22		%	4.62		%


(1)	Represents transfer of pension plan assets and obligation for all active Peoples employees as of February 1, 2010. See Note 4 for more information on the sale of Peoples completed in February 2010.


(2)	2010 amounts relate to the sales of Peoples and Dominion's Appalachian E&P operations and a workforce reduction program.


(3)	Represents a one-time special termination benefit for certain employees in connection with a workforce reduction program.

Benefit obligation in excess of plan asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets:



	Pension Benefits				Other Postretirement Benefits
As of December 31,	2011		2010		2011		2010
(millions)
Benefit obligation	4,416	⁽¹⁾	$	121	$	1,375	$	1,583
Fair value of plan assets	3,903	⁽¹⁾	27		920		905


(1)	The decrease primarily reflects a decrease in the discount rate as of December 31, 2011.

Accumulated benefit obligation in excess of plan assets

The following table provides information on the ABO and fair value of plan assets for pension plans with an ABO in excess of plan assets:



As of December 31,	2011	2010
(millions)
Accumulated benefit obligation	95	$	80
Fair value of plan assets	—	—

Benefit payments expected future service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:



	Estimated Future Benefit Payments
	Pension Benefits		Other Postretirement Benefits
(millions)
2012	$	226	$	94
2013	233		92
2014	245		96
2015	280		99
2016	307		102
2017-2021	1,643		544

Fair values of pension and post retirement plan assets by asset category

The fair values of Dominion's pension plan assets by asset category are as follows:



	Fair Value Measurements
	Pension Plans
At December 31,	2011								2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	1	$	84	—		$	85	1		$	264	—		$	265
U.S. equity:
Large Cap	805		123		—		928		937		197		—		1,134
Other	359		197		—		556		436		96		—		532
Non-U.S. equity:
Large Cap	253		58		—		311		231		—		—		231
Other	190		81		—		271		119		365		—		484
Fixed income:
Corporate debt instruments	36		834		—		870		32		694		—		726
U.S. Treasury securities and agency debentures	304		392		—		696		168		216		—		384
State and municipal	2		77		—		79		2		42		—		44
Other securities	8		40		—		48		—		3		—		3
Real estate:
REITs	16		—		—		16		51		—		—		51
Partnerships	—		—		304		304		—		—		271		271
Other alternative investments:
Private equity	—		—		448		448		—		—		400		400
Debt	—		—		243		243		—		—		262		262
Hedge funds	—		—		290		290		—		—		345		345
Total⁽¹⁾	$	1,974	$	1,886	$	1,285	$	5,145	$	1,977	$	1,877	$	1,278	$	5,132


(1)	Includes net assets related to pending sales of securities of $26 million at December 31, 2010.

The fair values of Dominion's other postretirement plan assets by asset category are as follows:



	Fair Value Measurements
	Other Postretirement Plans
At December 31,	2011								2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	—	$	5	$	—	$	5	$	—	$	13	$	—	$	13
U.S. equity:
Large Cap	38		288		—		326		43		293		—		336
Other	17		44		—		61		20		41		—		61
Non-U.S. equity:
Large Cap	77		3		—		80		87		—		—		87
Other	9		4		—		13		5		17		—		22
Fixed income:
Corporate debt instruments	2		149		—		151		1		106		—		107
U.S. Treasury securities and agency debentures	14		246		—		260		8		248		—		256
State and municipal	—		6		—		6		—		8		—		8
Other securities	—		2		—		2		—		—		—		—
Real estate:
REITs	1		—		—		1		2		—		—		2
Partnerships	—		—		24		24		—		—		22		22
Other alternative investments:
Private equity	—		—		63		63		—		—		61		61
Debt	—		—		36		36		—		—		40		40
Hedge funds	—		—		14		14		—		—		17		17
Total⁽¹⁾	$	158	$	747	$	137	$	1,042	$	166	$	726	$	140	$	1,032


(1)	Includes net assets related to pending sales of securities of $1 million at December 31, 2010.

Pension plan and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category

The following table presents the changes in Dominion's pension and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category:



	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
	Pension Plans															Other Postretirement Plans
	Real Estate			Private Equity			Debt			Hedge Funds			Total			Real Estate			Private Equity			Debt			Hedge Funds			Total
Balance at December 31, 2008	$	438		$	267		$	191		$	324		$	1,220		$	32		$	47		$	28		$	15		$	122
Actual return on plan assets:
Relating to assets still held at the reporting date	(91		)	128			19			—			56			(9		)	13			3			—			7
Relating to assets sold during the period	(1		)	1			—			—			—			—			—			—			—			—
Purchases	18			53			35			64			170			4			6			7			4			21
Sales	(20		)	(105		)	(4		)	—			(129		)	(1		)	(12		)	(2		)	—			(15		)
Balance at December 31, 2009	$	344		$	344		$	241		$	388		$	1,317		$	26		$	54		$	36		$	19		$	135
Actual return on plan assets:
Relating to assets still held at the reporting date	8			56			27			27			118			—			9			2			1			12
Purchases	56			90			36			—			182			3			9			8			—			20
Sales	(137		)	(90		)	(42		)	(70		)	(339		)	(7		)	(11		)	(6		)	(3		)	(27		)
Balance at December 31, 2010	$	271		$	400		$	262		$	345		$	1,278		$	22		$	61		$	40		$	17		$	140
Actual return on plan assets:
Relating to assets still held at the reporting date	38			70			10			10			128			3			11			1			—			15
Relating to assets sold during the period	(8		)	(34		)	(10		)	(15		)	(67		)	—			(4		)	(1		)	(1		)	(6		)
Purchases	57			76			34			48			215			3			8			3			2			16
Sales	(54		)	(64		)	(53		)	(98		)	(269		)	(4		)	(13		)	(7		)	(4		)	(28		)
Balance at December 31, 2011	$	304		$	448		$	243		$	290		$	1,285		$	24		$	63		$	36		$	14		$	137

Net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities

The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities are as follows:



	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2011			2010			2009			2011			2010			2009
(millions, except percentages)
Service cost	$	108		$	102		$	106		$	48		$	56		$	60
Interest cost	258			266			250			94			101			100
Expected return on plan assets	(440		)	(410		)	(405		)	(79		)	(69		)	(57		)
Amortization of prior service (credit) cost	3			3			4			(13		)	(7		)	(7		)
Amortization of net actuarial loss	96			59			38			12			12			30
Settlements and curtailments⁽¹⁾	—			136			3			1			37			—
Special termination benefits⁽²⁾	—			10			—			—			1			—
Plan amendments	—			—			1			—			—			—
Net periodic benefit (credit) cost	$	25		$	166		$	(3	)	$	63		$	131		$	126
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	534		$	95		$	(174	)	$	(157	)	$	13		$	(172	)
Prior service (credit) cost	—			1			—			(70		)	—			(1		)
Settlements and curtailments⁽¹⁾	—			(50		)	(2		)	(1		)	(1		)	—
Less amounts included in net periodic benefit (credit) cost:
Amortization of net actuarial loss	(96		)	(59		)	(38		)	(12		)	(12		)	(30		)
Amortization of prior service credit (cost)	(3		)	(3		)	(4		)	13			7			7
Total recognized in other comprehensive income and regulatory assets and liabilities	$	435		$	(16	)	$	(218	)	$	(227	)	$	7		$	(196	)
Significant assumptions used to determine periodic cost:
Discount rate	5.9		%	6.6		%	6.6		%	5.9		%	6.6		%	6.6		%
Expected long-term rate of return on plan assets	8.5		%	8.5		%	8.5		%	7.75		%	7.75		%	7.75		%
Weighted average rate of increase for compensation	4.61		%	4.76		%	4.79		%	4.62		%	4.79		%	4.78		%
Healthcare cost trend rate										7		%	7		%	8		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)										4.6		%	4.6		%	4.9		%
Year that the rate reaches the ultimate trend rate										2060			2060			2060


(1)	2010 amounts relate to the sales of Peoples and Dominion's Appalachian E&P operations and a workforce reduction program.


(2)	Represents a one-time special termination benefit for certain employees in connection with a workforce reduction program.

Components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost

The components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost are as follows:



	Pension Benefits				Other Postretirement Benefits
At December 31,	2011		2010		2011			2010
(millions)
Net actuarial loss	$	2,211	$	1,773	$	100		$	268
Prior service (credit) cost	14		17		(86		)	(28		)
Total⁽¹⁾	$	2,225	$	1,790	$	14		$	240

(1)

As of December 31, 2011, of the $2.2 billion related to pension benefits, $1.4 billion is included in AOCI, with the remainder included in regulatory assets and liabilities; the $14 million related to other postretirement benefits consists of $16 million included in regulatory assets and liabilities and $(2) million included in AOCI. As of December 31, 2010, of the $1.8 billion and $240 million related to pension benefits and other postretirement benefits, $978 million and $75 million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.

Components of AOCI and regulatory assets and liabilities that are expected to be amortized as components of periodic benefit cost in 2011

The following table provides the components of AOCI and regulatory assets and liabilities as of December 31, 2011 that are expected to be amortized as components of periodic benefit cost in 2012:

Effect of one percentage point change on benefit plans

A one percentage point change in assumed healthcare cost trend rates would have had the following effects:



	Other Postretirement Benefits
	One percentage point increase		One percentage point decrease
(millions)
Effect on total of service and interest cost components for 2011	$	20	$	(18	)
Effect on other postretirement benefit obligation at December 31, 2011	174		(139		)

Pension
Benefits

Other
Postretirement
Benefits

(millions)

Net actuarial loss

Prior service (credit) cost