Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

General Discussion of Pension and Other Postretirement Benefits [Abstract]

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,	2013			2012			2013			2012
(millions, except percentages)
Changes in benefit obligation:
Benefit obligation at beginning of year	$	6,125		$	4,981		$	1,719		$	1,493
Service cost	131			116			43			44
Interest cost	271			268			73			79
Benefits paid	(229		)	(208		)	(75		)	(88		)
Actuarial (gains) losses during the year	(650		)	967			(170		)	191
Plan amendments⁽¹⁾	1			1			(220		)	1
Settlements and curtailments⁽²⁾	(24		)	—			(16		)	(6		)
Special termination benefits	—			—			1			—
Medicare Part D reimbursement	—			—			5			5
Benefit obligation at end of year	$	5,625		$	6,125		$	1,360		$	1,719
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	5,553		$	5,145		$	1,156		$	1,042
Actual return on plan assets	781			611			178			132
Employer contributions	8			5			12			16
Benefits paid	(229		)	(208		)	(31		)	(34		)
Fair value of plan assets at end of year	$	6,113		$	5,553		$	1,315		$	1,156
Funded status at end of year	$	488		$	(572	)	$	(45	)	$	(563	)
Amounts recognized in the Consolidated Balance Sheets at December 31:
Noncurrent pension and other postretirement benefit assets	$	913		$	701		$	29		$	1
Other current liabilities	(15		)	(2		)	(3		)	(4		)
Noncurrent pension and other postretirement benefit liabilities	(410		)	(1,271		)	(71		)	(560		)
Net amount recognized	$	488		$	(572	)	$	(45	)	$	(563	)
Significant assumptions used to determine benefit obligations as of December 31:
Discount rate⁽³⁾	5.20%/5.30%			4.40		%	5.00%/5.10%			4.40		%
Weighted average rate of increase for compensation	4.21		%	4.21		%	4.22		%	4.22		%


(1)	Relates to a plan amendment that changed medical coverage for certain Medicare-eligible retirees.


(2)	2013 amounts relate primarily to the decommissioning of Kewaunee. 2012 amount relates to the sale of Salem Harbor.


(3)	Pension rates are 5.20% for the gas union plans and 5.30% for the nonunion and other union plans. OPEB rates are 5.00% for the gas union plans and 5.10% for the nonunion and other union plans.

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,	2013		2012		2013		2012
(millions)
Benefit obligation	$	4,978	$	5,462	$	1,233	$	1,591
Fair value of plan assets	4,553		4,189		1,158		1,027

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:

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)
2014	$	264	$	91
2015	269		93
2016	283		96
2017	300		98
2018	319		100
2019-2023	1,868		507

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,	2013								2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	53	$	126	—		$	179	—		$	195	—		$	195
U.S. equity:
Large Cap	1,220		—		—		1,220		927		104		—		1,031
Other	514		—		—		514		425		99		—		524
Non-U.S. equity:
Large Cap	308		—		—		308		313		68		—		381
Other	391		—		—		391		228		167		—		395
Common/collective trust funds	—		1,387		—		1,387		—		—		—		—
Fixed income:
Corporate debt instruments	43		451		—		494		27		1,026		—		1,053
U.S. Treasury securities and agency debentures	2		229		—		231		331		304		—		635
State and municipal	69		107		—		176		1		71		—		72
Other securities	7		50		—		57		5		43		—		48
Real estate:
REITs	32		—		—		32		29		—		—		29
Partnerships	—		—		227		227		—		—		321		321
Other alternative investments:
Private equity	—		—		530		530		—		—		456		456
Debt	—		—		180		180		—		—		192		192
Hedge funds	—		—		187		187		—		—		221		221
Total	$	2,639	$	2,350	$	1,124	$	6,113	$	2,286	$	2,077	$	1,190	$	5,553

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,	2013								2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	3	$	14	$	—	$	17	$	—	$	13	$	—	$	13
U.S. equity:
Large Cap	472		—		—		472		378		5		—		383
Other	26		—		—		26		21		45		—		66
Non-U.S. equity:
Large Cap	111		—		—		111		93		3		—		96
Other	20		—		—		20		11		8		—		19
Common/collective trust funds	—		502		—		502		—		—		—		—
Fixed income:
Corporate debt instruments	2		23		—		25		1		160		—		161
U.S. Treasury securities and agency debentures	—		12		—		12		16		266		—		282
State and municipal	4		5		—		9		—		9		—		9
Other securities	—		3		—		3		—		2		—		2
Real estate:
REITs	2		—		—		2		1		—		—		1
Partnerships	—		—		19		19		—		—		24		24
Other alternative investments:
Private equity	—		—		60		60		—		—		58		58
Debt	—		—		27		27		—		—		31		31
Hedge funds	—		—		10		10		—		—		11		11
Total	$	640	$	559	$	116	$	1,315	$	521	$	511	$	124	$	1,156

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, 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
Actual return on plan assets:
Relating to assets still held at the reporting date	21			46			17			21			105			1			3			4			1			9
Relating to assets sold during the period	(8		)	(41		)	(11		)	(2		)	(62		)	—			(1		)	—			—			(1		)
Purchases	35			79			15			—			129			2			6			1			—			9
Sales	(31		)	(76		)	(72		)	(88		)	(267		)	(3		)	(13		)	(10		)	(4		)	(30		)
Balance at December 31, 2012	$	321		$	456		$	192		$	221		$	1,190		$	24		$	58		$	31		$	11		$	124
Actual return on plan assets:
Relating to assets still held at the reporting date	15			98			32			21			166			(2		)	6			3			1			8
Relating to assets sold during the period	(36		)	(48		)	(34		)	(4		)	(122		)	1			3			—			1			5
Purchases	6			115			32			—			153			1			7			2			—			10
Sales	(79		)	(91		)	(42		)	(51		)	(263		)	(5		)	(14		)	(9		)	(3		)	(31		)
Balance at December 31, 2013	$	227		$	530		$	180		$	187		$	1,124		$	19		$	60		$	27		$	10		$	116

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 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,	2013			2012			2011			2013			2012			2011
(millions, except percentages)
Service cost	$	131		$	116		$	108		$	43		$	44		$	48
Interest cost	271			268			258			73			79			94
Expected return on plan assets	(462		)	(430		)	(440		)	(92		)	(79		)	(79		)
Amortization of prior service (credit) cost	3			3			3			(15		)	(13		)	(13		)
Amortization of net actuarial loss	165			132			96			7			6			12
Settlements and curtailments⁽¹⁾	(2		)	—			—			(15		)	(4		)	1
Special termination benefits	—			—			—			1			—			—
Net periodic benefit cost	$	106		$	89		$	25		$	2		$	33		$	63
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	(968	)	$	786		$	534		$	(255	)	$	139		$	(157	)
Prior service (credit) cost	1			—			—			(215		)	1			(70		)
Settlements and curtailments⁽¹⁾	(22		)	—			—			(7		)	(2		)	(1		)
Less amounts included in net periodic benefit cost:
Amortization of net actuarial loss	(165		)	(132		)	(96		)	(7		)	(6		)	(12		)
Amortization of prior service credit (cost)	(3		)	(3		)	(3		)	15			13			13
Total recognized in other comprehensive income and regulatory assets and liabilities	$	(1,157	)	$	651		$	435		$	(469	)	$	145		$	(227	)
Significant assumptions used to determine periodic cost:
Discount rate	4.40% - 4.80%			5.50		%	5.90		%	4.40% - 4.80%			5.50		%	5.90		%
Expected long-term rate of return on plan assets	8.50		%	8.50		%	8.50		%	7.75		%	7.75		%	7.75		%
Weighted average rate of increase for compensation	4.21		%	4.21		%	4.61		%	4.22		%	4.22		%	4.62		%
Healthcare cost trend rate⁽²⁾										7.00		%	7.00		%	7.00		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)⁽²⁾										4.60		%	4.60		%	4.60		%
Year that the rate reaches the ultimate trend rate⁽²⁾										2062			2061			2060


(1)	2013 amount relates primarily to the decommissioning of Kewaunee. 2012 amount relates to the sale of Salem Harbor.


(2)	Assumptions used to determine periodic cost for the following year.

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,	2013		2012		2013			2012
(millions)
Net actuarial (gain) loss	$	1,709	$	2,865	$	(40	)	$	229
Prior service (credit) cost	10		11		(271		)	(71		)
Total⁽¹⁾	$	1,719	$	2,876	$	(311	)	$	158

(1)

As of December 31, 2013, of the $1.7 billion and $(311) million related to pension benefits and other postretirement benefits, $1.0 billion and $(156) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2012, of the $2.9 billion and $158 million related to pension benefits and other postretirement benefits, $1.8 billion and $69 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 2014

The following table provides the components of AOCI and regulatory assets and liabilities as of December 31, 2013 that are expected to be amortized as components of periodic benefit cost in 2014:

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 net periodic cost for 2014	$	16	$	(18	)
Effect on other postretirement benefit obligation at December 31, 2013	140		(118		)

As of December 31,

(millions)

Accumulated benefit obligation

Fair value of plan assets