XML 77 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Credit Risk
9 Months Ended
Sep. 30, 2014
Risks and Uncertainties [Abstract]  
Credit Risk
Credit Risk
The Companies' accounting policies for credit risk are discussed in Note 23 to the Consolidated Financial Statements in Dominion's and Virginia Power's Annual Report on Form 10-K for the year ended December 31, 2013 and Note 19 in Exhibit 99.11(b) to Dominion Gas’ Current Report on Form 8-K dated June 26, 2014.

At September 30, 2014, Dominion's credit exposure totaled $129 million. Of this amount, investment grade counterparties, including those internally rated, represented 60%. No counterparty exposure exceeded 9% of Dominion's total exposure.

Credit-Related Contingent Provisions
The majority of Dominion's derivative instruments contain credit-related contingent provisions. These provisions require Dominion to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered as of September 30, 2014 and December 31, 2013, Dominion would have been required to post an additional $117 million and $146 million, respectively, of collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. Dominion had posted approximately $99 million and $76 million in collateral at September 30, 2014 and December 31, 2013, respectively, related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. The collateral posted includes any amounts paid related to non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. The aggregate fair value of all derivative instruments with credit-related contingent provisions that are in a liability position and not fully collateralized with cash as of September 30, 2014 and December 31, 2013 was $225 million and $169 million, respectively, which does not include the impact of any offsetting asset positions. Credit-related contingent provisions for Virginia Power and Dominion Gas were not material as of September 30, 2014 and December 31, 2013. See Note 9 for further information about derivative instruments.

Dominion Gas
In the third quarter of 2014, DTI provided service to 235 customers with approximately 94% of its storage and transportation revenue being provided through firm services. The ten largest customers provided approximately 44% of the total storage and transportation revenue and the 30 largest provided approximately 77% of the total storage and transportation revenue. Approximately 97% of the transmission capacity under contract on DTI’s pipeline is subscribed with long-term contracts (two years or greater). The remaining 3% is contracted on a year-to-year basis. Less than 1% of firm transportation capacity is currently unsubscribed. All storage services are subscribed under long-term contracts.

East Ohio distributes natural gas to residential, commercial and industrial customers in Ohio using rates established by the Ohio Commission. Approximately 99% of East Ohio revenues are derived from its jurisdictional gas services. East Ohio’s bad debt risk is mitigated by the regulatory framework established by the Ohio Commission.