EX-12.A 7 d334692dex12a.htm EX-12.A EX-12.a

Exhibit 12.a

Dominion Resources, Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(millions of dollars)

 

 

     Years Ended December 31,  
     2016(a)     2015(b)      2014(c)     2013(d)      2012(e)  

Earnings, as defined:

            

Income from continuing operations including noncontrolling interest before income tax expense

   $ 2,867     $ 2,828      $ 1,778     $ 2,704      $ 2,265  

Distributed income from unconsolidated investees, less equity in earnings

     (32     12        (8     17        (13

Fixed charges included in income

     1,068       953        1,237       930        880  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total earnings, as defined

   $ 3,903     $ 3,793      $ 3,007     $ 3,651      $ 3,132  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Fixed charges, as defined:

            

Interest charges

   $ 1,033     $ 920      $ 1,208     $ 899      $ 845  

Rental interest factor

     35       33        29       31        35  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Fixed charges included in income

     1,068       953        1,237       930        880  

Preference security dividend requirement of consolidated subsidiary

     —         —          17       25        25  

Capitalized Interest

     124       67        39       28        24  

Interest from discontinued operations

     —         —          —         85        80  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed charges, as defined

   $ 1,192     $ 1,020      $ 1,293     $ 1,068      $ 1,009  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Ratio of Earnings to Fixed Charges

     3.27       3.72        2.33       3.42        3.10  

 

(a) Earnings for the twelve months ended December 31, 2016 include a $197 million charge associated with future ash pond and landfill closure costs; a $65 million charge associated with an organizational design initiative; $74 million in transaction and transition costs associated with the Dominion Questar combination; a $23 million charge related to storm and restoration costs; a $45 million charge related to other items; partially offset by $34 million of net gain related to our investments in nuclear decommissioning trust funds. Excluding the effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2016.

 

(b) Earnings for the twelve months ended December 31, 2015 include a $85 million write-off of prior-period deferred fuel costs associated with Virginia legislation; a $99 million charge associated with ash pond and landfill closure costs and a $78 million charge related to other items; partially offset by $60 million of net gain related to our investments in nuclear decommissioning trust funds. Excluding the effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2015.

 

(c) Earnings for the twelve months ended December 31, 2014 include a $374 million charge related to North Anna nuclear power station and offshore wind facilities; a $284 million charge associated with our liability management effort, which is included in fixed charges; $121 million accrued charge associated with ash pond and landfill closure costs; $93 million charge related to other items; partially offset by a $100 million net gain on the sale of our electric retail energy marketing business and $72 million of net gain related to our investments in nuclear decommissioning trust funds. Excluding the effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2014.


(d) Earnings for the twelve months ended December 31, 2013 include a $55 million impairment charge related to certain natural gas infrastructure assets; a $40 million charge in connection with the Virginia State Corporation Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2011-2012 test years; a $28 million charge associated with our operating expense reduction initiative, primarily reflecting severance pay and other employee related costs; a $26 million charge related to the expected early shutdown of certain coal-fired generating units; a $29 million charge related to other items; partially offset by $81 million of net gain related to our investments in nuclear decommissioning trust funds; a $47 million benefit due to a downward revision in the nuclear decommissioning asset retirement obligations for certain merchant nuclear units that are no longer in service; a $29 million net benefit primarily resulting from the sale of Elwood power station. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2013.

 

(e) Earnings for the twelve months ended December 31, 2012 include $438 million of impairment and other charges related the planned shut-down of Kewaunee nuclear power station; $87 million of restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina service territories; partially offset by a $36 million net gain related to our investments in nuclear decommissioning trust funds and $4 million net benefit related to other items. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2012.