Derivatives and Hedge Accounting Activities (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the volume of Dominion’s derivative activity as of March 31, 2012. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	315		74
Basis⁽¹⁾	861		484
Electricity (MWh):
Fixed price⁽¹⁾	21,953,642		21,718,420
FTRs	21,805,241		810,816
Capacity (MW)	63,825		272,968
Liquids (gallons)⁽²⁾	137,508,000		221,214,000
Interest rate	$	2,000,000,000	$	1,940,000,000


(1)	Includes options.


(2)	Includes NGLs and oil.

Cash Flow Hedges Included Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion’s Consolidated Balance Sheet at March 31, 2012:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(30	)	$	(16	)	33 months
Electricity	243			102			45 months
NGLs	(64		)	(27		)	33 months
Other	6			2			38 months
Interest rate	(97		)	(12		)	369 months
Total	$	58		$	49

Fair Value of Derivatives

The following table presents the fair values of Dominion’s derivatives and where they are presented in its Consolidated Balance Sheets:



	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
March 31, 2012
ASSETS
Current Assets
Commodity	$	312	$	472	$	784
Interest rate	38		—		38
Total current derivative assets	350		472		822
Noncurrent Assets
Commodity	295		99		394
Interest rate	56		—		56
Total noncurrent derivative assets⁽¹⁾	351		99		450
Total derivative assets	$	701	$	571	$	1,272
LIABILITIES
Current Liabilities
Commodity	$	206	$	492	$	698
Interest rate	158		15		173
Total current derivative liabilities	364		507		871
Noncurrent Liabilities
Commodity	151		85		236
Interest rate	—		3		3
Total noncurrent derivative liabilities⁽²⁾	151		88		239
Total derivative liabilities	$	515	$	595	$	1,110
December 31, 2011
ASSETS
Current Assets
Commodity	$	176	$	495	$	671
Interest rate	34		—		34
Total current derivative assets	210		495		705
Noncurrent Assets
Commodity	198		96		294
Interest rate	71		—		71
Total noncurrent derivative assets⁽¹⁾	269		96		365
Total derivative assets	$	479	$	591	$	1,070
LIABILITIES
Current Liabilities
Commodity	$	162	$	530	$	692
Interest rate	222		37		259
Total current derivative liabilities	384		567		951
Noncurrent Liabilities
Commodity	118		78		196
Interest rate	—		10		10
Total noncurrent derivative liabilities⁽²⁾	118		88		206
Total derivative liabilities	$	502	$	655	$	1,157


(1)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion’s Consolidated Balance Sheets.


(2)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion’s Consolidated Balance Sheets.

Gains and Losses on Derivatives in Cash Flow Hedging Relationships

The following tables present the gains and losses on Dominion's derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives - Effective Portion⁽¹⁾			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended March 31, 2012
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	64
Purchased gas				(30		)
Electric fuel and other energy-related purchases				(7		)
Total commodity	$	176		27			$	(1	)
Interest rate⁽³⁾	32			1			27
Total	$	208		$	28		$	26
Three Months Ended March 31, 2011
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	28
Purchased gas				(48		)
Electric fuel and other energy-related purchases				1
Purchased electric capacity				1
Total commodity	$	(142	)	(18		)	$	(5	)
Interest rate⁽³⁾	(1		)	—			(1		)
Total	$	(143	)	$	(18	)	$	(6	)


(1)	Amounts deferred into AOCI have no associated effect in Dominion’s Consolidated Statements of Income.


(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion’s Consolidated Statements of Income.


(3)	Amounts recorded in Dominion’s Consolidated Statements of Income are classified in interest and related charges.

Schedule of Derivatives not Designated as Hedging Instruments



	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended March 31,
Derivatives not designated as hedging instruments	2012			2011
(millions)
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue	$	69		$	19
Purchased gas	(10		)	(11		)
Electric fuel and other energy-related purchases	(27		)	16
Interest rate⁽²⁾	(2		)	—
Total	$	30		$	24


(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion’s Consolidated Statements of Income.


(2)	Amounts recorded in Dominion’s Consolidated Statements of Income are classified in interest and related charges.

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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