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 $95 million at March 31, 2013 and December 31, 2012, respectively. Cost method investments held in Dominion’s rabbi trusts totaled $13 million and $14 million at March 31, 2013 and December 31, 2012, 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, 2013
Marketable equity securities:
U.S.:
Large Cap	$	1,153	$	879	$	—			$	2,032
Other	44		18		—				62
Marketable debt securities:
Corporate bonds	336		28		—				364
U.S. Treasury securities and agency debentures	628		19		(1		)		646
State and municipal	236		23		—				259
Other	8		—		—				8
Cost method investments	113		—		—				113
Cash equivalents and other⁽²⁾	63		—		—				63
Total	$	2,581	$	967	$	(1	)	⁽³⁾	$	3,547
December 31, 2012
Marketable equity securities:
U.S.:
Large Cap	$	1,210	$	732	$	—			$	1,942
Other	40		13		—				53
Marketable debt securities:
Corporate bonds	295		30		—				325
U.S. Treasury securities and agency debentures	523		19		(2		)		540
State and municipal	248		26		—				274
Other	6		1		—				7
Cost method investments	117		—		—				117
Cash equivalents and other⁽²⁾	72		—		—				72
Total	$	2,511	$	821	$	(2	)	⁽³⁾	$	3,330


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


(2)	Includes pending purchases of securities of $14 million and $6 million at March 31, 2013 and December 31, 2012, respectively.


(3)	The fair value of securities in an unrealized loss position was $208 million and $195 million at March 31, 2013 and December 31, 2012, respectively.

The fair value of Dominion’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2013 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	162
Due after one year through five years	333
Due after five years through ten years	367
Due after ten years	415
Total	$	1,277

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



	Three Months Ended March 31,
	2013		2012
(millions)
Proceeds from sales	$	554	$	415
Realized gains⁽¹⁾	63		28
Realized losses⁽¹⁾	6		4


(1)	Includes realized gains and 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, 2013 and 2012.

Blue Racer

In December 2012, Dominion formed Blue Racer to provide midstream services to natural gas producers operating in the Utica Shale region in Ohio and portions of Pennsylvania. Blue Racer is an equal partnership between Dominion and Caiman, with Dominion contributing midstream assets and Caiman contributing private equity capital. In March 2013, DTI contributed Line TL-404 to Blue Racer and received approximately $47 million in cash proceeds resulting in an approximately $25 million ($14 million after-tax) gain. The Natrium natural gas processing and fractionation facility is expected to be completed in the second quarter of 2013, and is expected to be contributed to Blue Racer upon completion.

Virginia Power

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, 2013
Marketable equity securities:
U.S.:
Large Cap	$	490	$	373	$	—			$	863
Other	21		9		—				30
Marketable debt securities:
Corporate bonds	198		16		—				214
U.S. Treasury securities and agency debentures	248		5		(1		)		252
State and municipal	95		9		—				104
Other	1		—		—				1
Cost method investments	113		—		—				113
Cash equivalents and other⁽²⁾	31		—		—				31
Total	$	1,197	$	412	$	(1	)	⁽³⁾	$	1,608
December 31, 2012
Marketable equity securities:
U.S.:
Large Cap	$	481	$	298	$	—			$	779
Other	20		7		—				27
Marketable debt securities:
Corporate bonds	179		17		—				196
U.S. Treasury securities and agency debentures	231		4		(1		)		234
State and municipal	106		11		—				117
Other	1		—		—				1
Cost method investments	117		—		—				117
Cash equivalents and other⁽²⁾	44		—		—				44
Total	$	1,179	$	337	$	(1	)	⁽³⁾	$	1,515


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


(2)	Includes pending sales of securities of $2 million and $6 million at March 31, 2013 and December 31, 2012, respectively.


(3)	The fair value of securities in an unrealized loss position was $111 million and $104 million at March 31, 2013 and December 31, 2012, respectively.

The fair value of Virginia Power’s marketable debt securities at March 31, 2013 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	44
Due after one year through five years	160
Due after five years through ten years	202
Due after ten years	165
Total	$	571

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



	Three Months Ended March 31,
	2013		2012
(millions)
Proceeds from sales	$	189	$	191
Realized gains⁽¹⁾	16		11
Realized losses⁽¹⁾	3		2


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

Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds for Virginia Power were not material for the three months ended March 31, 2013 and 2012.