EX-99 5 allocmatrix.txt Exhibit H-8 DRS ALLOCATION MATRIX Changes to Allocation Methods Effective 1/1/2001
Service Department or Function Current Allocation Method New Allocation Method Comments Financial Accounting & Reporting Number of financial related Total operating Given the differences in the related transactions, expenses, excluding businesses across our companies records and reports purchased gas expense, (gas, electricity, E&P, generated and account code purchased power delivery, generation, etc.), there combinations for the expense (including is no one "financial account combination" preceding year ended fuel expense), and that would provide for fair allocation December 31st. other purchased products of accounting services. and royalties, for the preceding year ended December 31st. Treasury Total operating expenses, Total capitalization New method is more closely tied excluding purchased gas recorded at preceding to the cost drivers of the service. expense, purchased power December 31st. expense (including fuel expense), and other purchased products and royalties, for the preceding year ended December 31st. Cash Management Number of customer payments Total capitalization New method is more closely tied to processed during the recorded at preceding the cost drivers of the service. preceding year ended December 31st. December 31st. Security Total operating expenses, The number of employees New method is more closely tied to excluding purchased gas as of the preceding the cost drivers of the service. expense, purchased power December 31st. expense (including fuel expense), and other products and royalties, for the preceding year ended December 31st. Corporate Secretary/Investor The weighted average of the Total operating expenses, The larger the segment, as indicated Relations/Shareholder Activities previous three years of excluding purchased gas by its expenses, the more services it total service company expense, purchased power can be expected to consume, directly billings for the prior three expense (including fuel or indirectly. years ended December 31st. expense), and other purchased products and royalties, for the preceding year ended December 31st. Corporate Planning - Capital Total investment in plant Total capitalization The corporate planning services have Budgets recorded at preceding recorded at preceding been combined. New method is more December 31st. December 31st. closely tied to the cost drivers of the combined service. Corporate Planning - Operating Total operating expenses, Total capitalization The corporate planning services have & Maintenance Budgets excluding purchased gas recorded at preceding been combined. New method is more expense, purchased power December 31st. closely tied to the cost drivers of expense (including fuel the combined service. expense), and other purchased products and royalties, for the preceding year ended December 31st. Payroll Number of employees on the Number of employees on New method is more closely tied to previous December 31st the previous December the cost drivers of the service. or the number of payroll 31st. payments generated during the previous year ended December 31st. Accounts Receivable Processing N/A Number of accounts The processing of miscellaneous receivable documents accounts receivable is a new function processed during the of the services company effective preceding year ended 1/1/2001. December 31st. Engineering - General Services Gas pipeline and/or N/A No allocation method required as this electric supply line footage is no longer a service company as of the preceding year function. ended December 31st. Engineering - Transmission and Total investment in storage N/A No allocation method required as this Storage Services and transmission plant as is no longer a service company of the preceding year ended function. December 31st. Electricity Supply Electricity load purchased N/A No allocation method required as this for each affiliate for the is no longer a service company preceding year ended function. December 31st. Regulated Fixed Assets Regulated companies fixed Dominion companies Changed to "Fixed Assets Accounting" assets added, retired or fixed assets added, and incorporates all companies, not transferred during the retired or transferred just regulated companies, as fixed preceding year ended during the preceding assets accounting for all companies December 31st. year ended December 31st. is centralized in DRS. Medical Services Total operating expenses, Number of employees on New method is more closely tied to excluding purchased gas the previous December the cost drivers of the service. expense, purchased power 31st. expense (including fuel expense), and other products and royalties, for the preceding year ended December 31st. Marketing - Shared Projects Annual marketing plan Annual marketing plan New method is more closely tied to budget for the current year expenses for the the cost drivers of the service. of allocation. preceding year ended December 31st. Company Group Formulas: All retail companies Volume of gas and quantity Specific allocator not If it becomes necessary to allocate to of electricity sold at considered necessary this group of companies, it will follow retail during the preceding based on services the "All Companies" method for the year ended December 31st provided by DRS. appropriate group of companies. (converted to dollar value). All production companies Production plant budget Specific allocator not If it becomes necessary to allocate to for the current year of considered necessary this group of companies, it will follow allocation. based on services the "All Companies" method for the provided by DRS. appropriate group of companies. Appalachian production Gross investment in Specific allocator If it becomes necessary to allocate to companies Appalachian production not considered necessary this group of companies, it will follow plant recorded at preceding based on services the "All Companies" method for the December 31st. provided by DRS. appropriate group of companies. All storage companies Gross investment in storage Specific allocator not If it becomes necessary to allocate to plant, excluding noncurrent considered necessary this group of companies, it will follow inventory, recorded at based on services the "All Companies" method for the preceding December 31st. provided by DRS. appropriate group of companies. All regulated companies Total regulated companies' See Comments If it becomes necessary to allocate to operating expenses, excluding this group of companies, it will follow purchased gas expense, the "All Companies" method for the purchased power expense appropriate group of companies. (including fuel expense),other purchased products and royalties, for the preceding year ended December 31st. All unregulated companies Total unregulated companies' See Comments If it becomes necessary to allocate to operating expenses, excluding this group of companies, it will follow purchased gas expense, the "All Companies" method for the purchased power expense appropriate group of companies. (including fuel expense), other purchased products and royalties, for the preceding year ending December 31st. All Dominion Companies Total operating expenses, Total operating Has been modified to encompass (excluding DRS) excluding purchased gas expenses, excluding allocation to a specific group of expense, purchased power purchased gas expense, companies. expense (including fuel purchased power expense expense), and other purchased (including fuel products and royalties, for expense), other the preceding year ended purchased products and December 31st. royalties, for the preceding year ended December 31st for the affected Dominion companies.