Investments

3 Months Ended

Mar. 31, 2012

Investments, Debt and Equity Securities [Abstract]

Investments

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 $95 million and $90 million at March 31, 2012 and December 31, 2011, respectively. Net unrealized gains on trading securities totaled $4 million and $3 million for the three months ended March 31, 2012 and 2011, respectively. Cost method investments held in Dominion’s rabbi trusts totaled $16 million and $17 million at March 31, 2012 and December 31, 2011, 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)
March 31, 2012
Marketable equity securities
U.S.:
Large Cap	$	1,178	$	724	$	—			$	1,902
Other	38		15		—				53
Marketable debt securities:
Corporate bonds	296		22		(1		)		317
U.S. Treasury securities and agency debentures	459		18		(1		)		476
State and municipal	267		21		—				288
Other	19		1		—				20
Cost method investments	117		—		—				117
Cash equivalents and other(2)	58		—		—				58
Total	$	2,432	$	801	$	(2	)	(3)	$	3,231
December 31, 2011
Marketable equity securities:
U.S.:
Large Cap	$	1,152	$	537	$	—			$	1,689
Other	36		10		—				46
Marketable debt securities:
Corporate bonds	314		19		(1		)		332
U.S. Treasury securities and agency debentures	437		20		(1		)		456
State and municipal	264		24		—				288
Other	23		1		—				24
Cost method investments	118		—		—				118
Cash equivalents and other(2)	46		—		—				46
Total	$	2,390	$	611	$	(2	)	(3)	$	2,999

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

(2) Includes pending purchases of securities of $20 million and $11 million at March 31, 2012 and December 31, 2011, respectively.

(3) The fair value of securities in an unrealized loss position was $192 million and $164 million at March 31, 2012 and December 31, 2011, respectively.

The fair value of Dominion’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2012 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	62
Due after one year through five years	324
Due after five years through ten years	338
Due after ten years	377
Total	$	1,101

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

	Three Months Ended March 31,
	2012		2011
(millions)
Proceeds from sales	$	415	$	502
Realized gains(1)	28		14
Realized losses(1)	4		8

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

Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds for Dominion were not material for the three months ended March 31, 2012 and 2011.

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)
March 31, 2012
Marketable equity securities:
U.S.:
Large Cap	$	469	$	294	$	—			$	763
Other	19		8		—				27
Marketable debt securities:
Corporate bonds	185		13		(1		)		197
U.S. Treasury securities and agency debentures	185		4		(1		)		188
State and municipal	121		8		—				129
Other	12		1		—				13
Cost method investments	117		—		—				117
Cash equivalents and other(2)	33		—		—				33
Total	$	1,141	$	328	$	(2	)	(3)	$	1,467
December 31, 2011
Marketable equity securities
U.S.:
Large Cap	$	460	$	218	$	—			$	678
Other	18		5		—				23
Marketable debt securities:
Corporate bonds	204		11		(1		)		214
U.S. Treasury securities and agency debentures	166		4		—				170
State and municipal	114		10		—				124
Other	16		1		(1		)		16
Cost method investments	118		—		—				118
Cash equivalents and other(2)	27		—		—				27
Total	$	1,123	$	249	$	(2	)	(3)	$	1,370

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

(2) Includes pending purchases of securities of $8 million and $13 million at March 31, 2012 and December 31, 2011, respectively.

(3) The fair value of securities in an unrealized loss position was $115 million and $99 million at March 31, 2012 and December 31, 2011, respectively.

The fair value of Virginia Power’s debt securities at March 31, 2012 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	2
Due after one year through five years	162
Due after five years through ten years	199
Due after ten years	164
Total	$	527

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

	Three Months Ended March 31,
	2012		2011
(millions)
Proceeds from sales	$	191	$	343
Realized gains(1)	11		5
Realized losses(1)	2		4

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

Other-than-temporary impairment losses on investments for Virginia Power were not material for the three months ended March 31, 2012 and 2011.