Derivatives and Hedge Accounting Activities

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedge Accounting Activities

Derivatives and Hedge Accounting Activities

The Companies' accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in the Companies' Annual Report on Form 10-K for the year ended December 31, 2015. See Note 8 in this report for further information about fair value measurements and associated valuation methods for derivatives.

Derivative assets and liabilities are presented gross on the Companies' Consolidated Balance Sheets. Dominion's derivative contracts include both over-the-counter transactions and those that are executed on an exchange or other trading platform (exchange contracts) and centrally cleared. Dominion Gas' and Virginia Power's derivative contracts consist of over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a counterparty. Exchange contracts utilize a financial intermediary, exchange, or clearinghouse to enter, execute, or clear the transactions. Certain over-the-counter and exchange contracts contain contractual rights of setoff through master netting arrangements, derivative clearing agreements, and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency, or other conditions.

In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit, and in some cases other forms of security, none of which are subject to restrictions. Cash collateral is used in the table below to offset derivative assets and liabilities. Certain accounts receivable and accounts payable recognized on the Companies' Consolidated Balance Sheets, as well as letters of credit and other forms of security, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure.

Dominion

Balance Sheet Presentation

The tables below present Dominion's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	173	$	—	$	173	$	217	$	—	$	217
Exchange	88		—		88		138		—		138
Interest rate contracts:
Over-the-counter	19		—		19		24		—		24
Foreign currency contracts:
Over-the-counter	8		—		8		—		—		—
Total derivatives, subject to a master netting or similar arrangement	288		—		288		379		—		379
Total derivatives, not subject to a master netting or similar arrangement	7		—		7		9		—		9
Total	$	295	$	—	$	295	$	388	$	—	$	388

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	173	$	20	$	—	$	153	$	217	$	37	$	—	$	180
Exchange	88		63		—		25		138		82		—		56
Interest rate contracts:
Over-the-counter	19		10		—		9		24		22		—		2
Foreign currency contracts:
Over-the-counter	8		4		—		4		—		—		—		—
Total	$	288	$	97	$	—	$	191	$	379	$	141	$	—	$	238

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	43	$	—	$	43	$	70	$	—	$	70
Exchange	63		—		63		82		—		82
Interest rate contracts:
Over-the-counter	307		—		307		183		—		183
Foreign currency contracts:
Over-the-counter	4		—		4		—		—		—
Total derivatives, subject to a master netting or similar arrangement	417		—		417		335		—		335
Total derivatives, not subject to a master netting or similar arrangement	5		—		5		8		—		8
Total	$	422	$	—	$	422	$	343	$	—	$	343

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	43	$	20	$	—	$	23	$	70	$	37	$	—	$	33
Exchange	63		63		—		—		82		82		—		—
Interest rate contracts:
Over-the-counter	307		10		—		297		183		22		—		161
Foreign currency contracts:
Over-the-counter	4		4		—		—		—		—		—		—
Total	$	417	$	97	$	—	$	320	$	335	$	141	$	—	$	194

Volumes

The following table presents the volume of Dominion’s derivative activity at September 30, 2016. 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)	104		23
Basis	261		626
Electricity (MWh):
Fixed price	8,274,639		659,440
FTRs	72,352,190		—
Liquids (Gal)(2)	39,269,554		—
Interest rate(3)	$	2,200,000,000	$	1,600,000,000
Foreign currency(3)(4)	$	—	$	280,000,000

(1) Includes options.

(2) Includes NGLs and oil.

(3) Maturity is determined based on final settlement period.

(4) Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the three and nine months ended September 30, 2016 and 2015, gains or losses on hedging instruments determined to be ineffective and amounts excluded from the assessment of effectiveness were not material. Amounts excluded from the assessment of effectiveness include gains or losses attributable to changes in the time value of options and changes in the differences between spot prices and forward prices.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion’s Consolidated Balance Sheet at September 30, 2016:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(2	)	$	(2	)	39 months
Electricity	44			42			15 months
Other	(1		)	(1		)	6 months
Interest rate	(304		)	(26		)	378 months
Foreign currency	2			—			117 months
Total	$	(261	)	$	13

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated sales) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in market prices, interest rates, and foreign currency exchange rates.

Fair Value and Gains and Losses on Derivative Instruments

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)
At September 30, 2016
ASSETS
Current Assets
Commodity	$	59	$	105	$	164
Interest rate	9		—		9
Total current derivative assets(1)	68		105		173
Noncurrent Assets
Commodity	4		100		104
Interest rate	10		—		10
Foreign currency	8		—		8
Total noncurrent derivative assets(2)	22		100		122
Total derivative assets	$	90	$	205	$	295
LIABILITIES
Current Liabilities
Commodity	$	22	$	78	$	100
Interest rate	182		—		182
Foreign currency	4		—		4
Total current derivative liabilities(3)	208		78		286
Noncurrent Liabilities
Commodity	1		10		11
Interest rate	125		—		125
Total noncurrent derivative liabilities(4)	126		10		136
Total derivative liabilities	$	334	$	88	$	422
At December 31, 2015
ASSETS
Current Assets

Commodity	$	101	$	151	$	252
Interest rate	3		—		3
Total current derivative assets(1)	104		151		255
Noncurrent Assets
Commodity	3		109		112
Interest rate	21		—		21
Total noncurrent derivative assets(2)	24		109		133
Total derivative assets	$	128	$	260	$	388
LIABILITIES
Current Liabilities
Commodity	$	32	$	116	$	148
Interest rate	164		—		164
Total current derivative liabilities(3)	196		116		312
Noncurrent Liabilities
Commodity	—		12		12
Interest rate	19		—		19
Total noncurrent derivative liabilities(4)	19		12		31
Total derivative liabilities	$	215	$	128	$	343

(1) Current derivative assets are presented in other current assets in Dominion’s Consolidated Balance Sheets.

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

(3) Current derivative liabilities are presented in other current liabilities in Dominion's Consolidated Balance Sheets.

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

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 September 30, 2016
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	64
Purchased gas				(1		)
Electric fuel and other energy-related purchases				(1		)
Total commodity	$	7		$	62		$	—
Interest rate(3)	3			(10		)	(16		)
Foreign currency(4)	12			3			—
Total	$	22		$	55		$	(16	)
Three Months Ended September 30, 2015
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	87
Purchased gas				(2		)
Total commodity	$	64		$	85		$	—
Interest rate(3)	(71		)	(2		)	(69		)
Total	$	(7	)	$	83		$	(69	)
Nine Months Ended September 30, 2016
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	266
Purchased gas				(9		)
Electric fuel and other energy-related purchases				(8		)
Total commodity	$	193		$	249		$	—
Interest rate(3)	(107		)	(21		)	(258		)
Foreign currency(4)	4			1			—
Total	$	90		$	229		$	(258	)
Nine Months Ended September 30, 2015
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	103
Purchased gas				(9		)
Total commodity	$	117		$	94		$	3
Interest rate(3)	(72		)	(7		)	(27		)
Total	$	45		$	87		$	(24	)

(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.

(4) Amounts recorded in Dominion’s Consolidated Statements of Income are classified in other income.

	Amount of Gain (Loss) Recognized in Income on Derivatives(1)
	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments	2016			2015			2016			2015
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	25		$	2		$	19		$	20
Purchased gas	(21		)	(3		)	(14		)	(12		)
Electric fuel and other energy-related purchases	(12		)	(4		)	(43		)	5
Interest rate(2)	—			(1		)	—			(1		)
Total	$	(8	)	$	(6	)	$	(38	)	$	12

(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.

Virginia Power

Balance Sheet Presentation

The tables below present Virginia Power's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	88	$	—	$	88	$	101	$	—	$	101
Interest rate contracts:
Over-the-counter	2		—		2		13		—		13
Total derivatives, subject to a master netting or similar arrangement	90		—		90		114		—		114
Total derivatives, not subject to a master netting or similar arrangement	28		—		28		13		—		13
Total	$	118	$	—	$	118	$	127	$	—	$	127

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	88	$	2	$	—	$	86	$	101	$	3	$	—	$	98
Interest rate contracts:
Over-the-counter	2		—		—		2		13		10		—		3
Total	$	90	$	2	$	—	$	88	$	114	$	13	$	—	$	101

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	9	$	—	$	9	$	5	$	—	$	5
Interest rate contracts:
Over-the-counter	267		—		267		59		—		59
Total derivatives, subject to a master netting or similar arrangement	276		—		276		64		—		64
Total derivatives, not subject to a master netting or similar arrangement	15		—		15		22		—		22
Total	$	291	$	—	$	291	$	86	$	—	$	86

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	9	$	2	$	—	$	7	$	5	$	3	$	—	$	2
Interest rate contracts:
Over-the-counter	267		—		—		267		59		10		—		49
Total	$	276	$	2	$	—	$	274	$	64	$	13	$	—	$	51

Volumes

The following table presents the volume of Virginia Power’s derivative activity at September 30, 2016. 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)	32		12
Basis	126		558
Electricity (MWh):
FTRs	70,978,901		—
Interest rate	$	1,200,000,000	$	600,000,000

(1) Includes options.

Ineffectiveness and AOCI

For the three and nine months ended September 30, 2016 and 2015, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at September 30, 2016:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(22	)	$	(1	)	378 months
Total	$	(22	)	$	(1	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated sales) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of Virginia Power’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)
At September 30, 2016
ASSETS
Current Assets
Commodity	$	—	$	25	$	25
Interest rate	2		—		2
Total current derivative assets(1)	2		25		27
Noncurrent Assets
Commodity	—		91		91
Total noncurrent derivative assets(2)	—		91		91
Total derivative assets	$	2	$	116	$	118
LIABILITIES
Current Liabilities
Commodity	$	—	$	19	$	19
Interest rate	142		—		142
Total current derivative liabilities(3)	142		19		161
Noncurrent Liabilities
Commodity	—		5		5
Interest rate	125		—		125
Total noncurrent derivatives liabilities (4)	125		5		130
Total derivative liabilities	$	267	$	24	$	291
At December 31, 2015
ASSETS
Current Assets
Commodity	$	—	$	18	$	18
Total current derivative assets(1)	—		18		18
Noncurrent Assets
Commodity	—		96		96
Interest rate	13		—		13
Total noncurrent derivative assets(2)	13		96		109
Total derivative assets	$	13	$	114	$	127
LIABILITIES
Current Liabilities
Commodity	$	—	$	23	$	23
Interest rate	57		—		57
Total current derivative liabilities(3)	57		23		80
Noncurrent Liabilities
Commodity	—		4		4
Interest rate	2		—		2
Total noncurrent derivative liabilities(4)	2		4		6
Total derivative liabilities	$	59	$	27	$	86

(1) Current derivative assets are presented in other current assets in Virginia Power's Consolidated Balance Sheets.

(2) Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power's Consolidated Balance Sheets.

(3) Current derivative liabilities are presented in other current liabilities in Virginia Power's Consolidated Balance Sheets.

(4) Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheets.

The following tables present the gains and losses on Virginia Power'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 September 30, 2016
Derivative type and location of gains (losses):
Interest rate(3)	$	(2	)	$	—		$	(16	)
Total	$	(2	)	$	—		$	(16	)
Three Months Ended September 30, 2015
Derivative type and location of gains (losses):
Interest rate(3)	$	(9	)	$	—		$	(69	)
Total	$	(9	)	$	—		$	(69	)
Nine Months Ended September 30, 2016
Derivative type and location of gains (losses):
Interest rate(3)	$	(26	)	$	(1	)	$	(258	)
Total	$	(26	)	$	(1	)	$	(258	)
Nine Months Ended September 30, 2015
Derivative type and location of gains (losses):
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Total commodity	$	—		$	(1	)	$	3
Interest rate(3)	(4		)	—			(27		)
Total	$	(4	)	$	(1	)	$	(24	)

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

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

	Amount of Gain (Loss) Recognized in Income on Derivatives(1)
	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments	2016			2015			2016			2015
(millions)
Derivative type and location of gains (losses):
Commodity(2)	$	(10	)	$	(6	)	$	(40	)	$	6
Total	$	(10	)	$	(6	)	$	(40	)	$	6

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

(2) Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.

Dominion Gas

Balance Sheet Presentation

The tables below present Dominion Gas' derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting.

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	6	$	—	$	6	$	11	$	—	$	11
Foreign currency contracts:
Over-the-counter	8		—		8		—		—		—
Total derivatives, subject to a master netting or similar arrangement	$	14	$	—	$	14	$	11	$	—	$	11

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	6	$	1	$	—	$	5	$	11	$	—	$	—	$	11
Foreign currency contracts:
Over-the-counter	8		4		—		4		—		—		—		—
Total	$	14	$	5	$	—	$	9	$	11	$	—	$	—	$	11

	September 30, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	2	$	—	$	2	$	—	$	—	$	—
Interest rate contracts:
Over-the-counter	—		—		—		14		—		14
Foreign currency contracts:
Over-the-counter	4		—		4		—		—		—
Total derivatives, subject to a master netting or similar arrangement	$	6	$	—	$	6	$	14	$	—	$	14

			September 30, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts
Over-the-counter	$	2	$	1	$	—	$	1	$	—	$	—	$	—	$	—
Interest rate contracts:
Over-the-counter	—		—		—		—		14		—		—		14
Foreign currency contracts:
Over-the-counter	4		4		—		—		—		—		—		—
Total	$	6	$	5	$	—	$	1	$	14	$	—	$	—	$	14

Volumes

The following table presents the volume of Dominion Gas' derivative activity at September 30, 2016. 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	6		—
Basis	6		—
NGLs (Gal)	33,095,554		—
Foreign currency(1)	$	—	$	280,000,000

(1) Maturity is determined based on final settlement period. Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the three and nine months ended September 30, 2016 and 2015, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to losses on cash flow hedges included in AOCI in Dominion Gas' Consolidated Balance Sheet at September 30, 2016:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
NGLs	$	(1	)	$	(1	)	6 months
Interest rate	(27		)	(2		)	339 months
Foreign currency	2			—			117 months
Total	$	(26	)	$	(3	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated sales) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in market prices, interest rates, and foreign currency rates.

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion Gas' 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)
At September 30, 2016
ASSETS
Current Assets
Commodity	$	1	$	5	$	6
Total current derivative assets(1)	1		5		6
Noncurrent Assets
Foreign currency	8		—		8
Total noncurrent derivative assets(2)	8		—		8
Total derivative assets	$	9	$	5	$	14
LIABILITIES
Current Liabilities
Commodity	$	2	$	—	$	2
Foreign currency	4		—		4
Total current derivative liabilities(3)	6		—		6
Total derivative liabilities	$	6	$	—	$	6
At December 31, 2015
ASSETS
Current Assets
Commodity	$	10	$	—	$	10
Total current derivative assets(1)	10		—		10
Noncurrent Assets
Commodity	1		—		1
Total noncurrent derivatives assets(2)	1		—		1
Total derivative assets	$	11	$	—	$	11
LIABILITIES
Noncurrent Liabilities
Interest rate	$	14	$	—	$	14
Total noncurrent derivative liabilities(4)	14		—		14
Total derivative liabilities	$	14	$	—	$	14

(1) Current derivative assets are presented in other current assets in Dominion Gas' Consolidated Balance Sheets.

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

(3) Current derivative liabilities are presented in other current liabilities in Dominion Gas' Consolidated Balance Sheets.

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

The following table presents the gains and losses on Dominion Gas' 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
(millions)
Three Months Ended September 30, 2016
Derivative Type and Location of Gains (Losses):
Commodity:
Operating revenue				$	1
Total commodity	$	—		$	1
Interest rate(2)	—			(1		)
Foreign currency(3)	12			3
Total	$	12		$	3
Three Months Ended September 30, 2015
Derivative Type and Location of Gains (Losses):
Commodity:
Operating revenue				$	3
Total commodity	$	11		$	3
Interest rate(2)	(7		)	—
Total	$	4		$	3
Nine Months Ended September 30, 2016
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	6
Total commodity	$	(7	)	$	6
Interest rate(2)	(8		)	(2		)
Foreign currency(3)	4			1
Total	$	(11	)	$	5
Nine Months Ended September 30, 2015
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	4
Total commodity	$	10		$	4
Interest rate(2)	(8		)	—
Total	$	2		$	4

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

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

(3) Amounts recorded in Dominion Gas' Consolidated Statements of Income are classified in other income.

	Amount of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments	2016		2015		2016		2015
(millions)
Derivative Type and Location of Gains (Losses):
Commodity:
Operating revenue	$	5	$	1	$	3	$	5
Total	$	5	$	1	$	3	$	5