-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BKUdNBe1IDmf459bYm9pxWlG6bNo/k+t4TXAM1nSycjLugO57zWYtXU+a19i5jfe nSNxISrfFU1IURfOtMnNdA== 0000930661-01-500360.txt : 20010502 0000930661-01-500360.hdr.sgml : 20010502 ACCESSION NUMBER: 0000930661-01-500360 CONFORMED SUBMISSION TYPE: U5S PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOMINION RESOURCES INC /VA/ CENTRAL INDEX KEY: 0000715957 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 541229715 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U5S SEC ACT: SEC FILE NUMBER: 001-08489 FILM NUMBER: 1618354 BUSINESS ADDRESS: STREET 1: 120 TREDEGAR STREET STREET 2: P O BOX 26532 CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8048192000 MAIL ADDRESS: STREET 1: P O BOX 26532 STREET 2: 901 EAST BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23261 U5S 1 du5s.txt ANNUAL REPORT FILED ON FORM U5S Commission File No. 1-8489 SECURITIES AND EXCHANGE COMMISSION Washington, DC FORM U5S ANNUAL REPORT For the year ended December 31, 2000 Filed pursuant to the Public Utility Holding Company Act of 1935 by Dominion Resources, Inc. 120 Tredegar Street, Richmond, VA 23219 DOMINION RESOURCES, INC. FORM U5S--ANNUAL REPORT For the Year Ended December 31, 2000 TABLE OF CONTENTS ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2000................................................ 3 ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS.......................... 8 ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES....................................................... 8 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES....... 10 ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES................. 13 ITEM 6. OFFICERS AND DIRECTORS........................................... 13 Part I. Names, principal business address and positions held as of December 31, 2000............................... 13 Part II. Banking connections................................... 21 Part III. Compensation and other related information............ 21 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS............................... 22 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS........................ 22 Part I. Contracts for services or goods between system companies............................................. 22 Part II. Contracts to purchase services or goods between system company and any affiliate............................. 23 Part III. Employment of any person by any system company for the performance on a continuing basis of management services.............................................. 23 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES............... 24 Part I. Information concerning interests held by system companies in exempt wholesale generators or foreign utility companies..................................... 24 Part II. Relationship of exempt wholesale generators and foreign utility companies to system companies, and financial data........................................ 27 Part III. Investment in exempt wholesale generators and foreign utility companies..................................... 27 ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS................................ 27 Financial Statements............................................. 27 Exhibits......................................................... 194 SIGNATURE................................................................. 195
2 DOMINION RESOURCES, INC. FORM U5S--ANNUAL REPORT For the Year Ended December 31, 2000 ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31, 2000
Number of Common % of Shares Voting Issuer's Owner's Name of Company Business Owned Power Book Value Book Value - --------------- -------- --------- ------ ---------- ---------- (Thousand of Dollars) Dominion Resources, Holding company Inc. (Dominion) Consolidated Natural Holding company 100 100% $1,965,552 $5,875,562 Gas Company (Consolidated Natural Gas, or CNG): (note 1) CNG Coal Company (CNG Held coal properties 2,236 100% 6,909 6,909 Coal)* (note 2) CNG Financial Finances gas powered 5 100% 34 34 Services, Inc. (CNG equipment Financial)* CNG International Energy related 23,855 100% 124,640 124,640 Corporation (CNG activities outside International) (note the United States 3) Unsecured debt 15,000 15,000 CNG Kauai, Inc. (CNG Special purpose 1 100% 2,486 2,486 Kauai) subsidiary (note 4) CNG Main Pass Gas Special purpose 1 100% 2,769 2,769 Gathering Corporation subsidiary (note 5) (CNG Main Pass) CNG Oil Gathering Special purpose 1 100% 4,995 4,995 Corporation (CNG Oil subsidiary (note 6) Gathering) CNG Power Company Nonutility energy 8,360 100% 10,230 10,230 (CNG Power) ventures CNG Market Center Special purpose 10 100% 1,572 1,572 Services, Inc. (CNG subsidiary (note 7) Market Center Services or CNGMCS)* Granite Road CoGen, Special purpose 1,000 100% 1 1 Inc. (Granite Road)* subsidiary (note 8) CNG Power Services Electric power 1,552 100% (2,325) (2,325) Corporation (CNG marketing Power Services) CNG Research Company Administers research 1,558 100% 80 80 (CNG Research)* activities Consolidated Natural Service company 100 100% (494) (494) Gas Service Company, Inc. (CNG Service Company or CNGSvc) Consolidated System Liquefied natural gas 100 100% 770 770 LNG Company (Consolidated LNG or LNG)* (note 9) Dominion Exploration Oil and gas 43,900 100% 741,262 745,809 & Production, Inc. exploration and (Dominion E&P) production (note 10) Unsecured debt 519,675 519,675 CNG Pipeline Company Oil pipeline 12,000 100% 1,205 1,205 (CNG Pipeline)
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Number of Common % of Issuer's Owner's Shares Voting Book Book Name of Company Business Owned Power Value Value - --------------- -------- --------- ------ --------- --------- (Thousand of Dollars) Dominion Field Gas marketing and gas 1,722 100% $ 28,577 $ 28,393 Services, Inc. storage services (Dominion Field Services) (note 11) Dominion Products and Markets energy 399 100% 1,758 1,758 Services, Inc. related services (Dominion P&S) (note 12) CNG Technologies, Inc. Development of new 200 100% 579 579 (CNG Technologies) gas-related technologies Dominion Retail, Inc. Retail energy 600 100% (8,063) (8,063) (Dominion Retail) marketing (note 13) Dominion Transmission, Gas transmission 60,100 100% 792,159 792,235 Inc. (Dominion Transmission) (note 14) Unsecured Debt 337,426 337,426 CNG Iroquois, Inc. Special purpose 2,394 100% 44,152 44,152 (CNG Iroquois) subsidiary (note 15) Hope Gas, Inc. Gas utility 449,000 100% 63,362 62,258 (Dominion Hope) Unsecured debt 36,930 36,930 The East Ohio Gas Gas utility 4,759,353 100% 436,110 415,853 Company (Dominion East Ohio) Unsecured debt 298,259 298,259 The Peoples Natural Gas Gas utility 1,835,350 100% 284,409 274,795 Company (Dominion Peoples) Unsecured debt 131,344 131,344 Dominion Capital, Inc. Financial services 20 100% 522,607 522,607 (Dominion Capital) holding company (note 16) Catalyst Old River Electric power Hydroelectric Limited production Partnership -- 25% 22,798 28,035 Dominion Capital Middle market 100 100% 132,754 132,754 Ventures Corporation commercial lending (DCV) Dominion Land Real estate 100 100% 238 238 Management Company management (DLMC) Dominion Lands, Inc. Land development 10 100% 5,826 5,826 Dominion Mortgage Mortgage services 100 100% 343,537 343,537 Services, Inc. Dominion Venture Middle market 100 100% 49,615 49,615 Investments, Inc. commercial lending (DVII) Edgen, Inc. Real estate holding 541 100% 18,803 18,803 company Louisiana Hydroelectric Investment company 10 100% 9,430 9,430 Capital Corp. (Louisiana Hydro) OptaCor Financial Direct mail unsecured 100 100% 542 542 Services Company consumer loans (Optacor)
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Number of Common % of Issuer's Owner's Shares Voting Book Book Name of Company Business Owned Power Value Value - --------------- -------- --------- ------ --------- --------- (Thousand of Dollars) Rincon Securities, Investment company 1 100% $ 78,256 $ 78,256 Inc. Stanton Associates, Real estate holding 529,411 100% 9,560 9,560 Inc. company Vidalia Audit, Inc. Audit company for 100 100% 167 167 hydroelectric project Virginia Financial Commercial finance 100 100% 286,836 286,836 Ventures, Inc. (Virginia Financial) Dominion Energy, Inc. Holding company 10 100% 550,510 550,510 (Dominion Energy or DEI) (notes 17,18, and 19) Dominion Black Warrior Exploration and 10 100% 11,095 11,095 Basin, Inc. production Dominion Cogen, Inc. Cogeneration 100 100% 67,279 67,279 Dominion Cogen NY, Cogeneration in the 100 100% (351) (351) Inc. (note 20) State of NY Dominion Cogen WV, Cogeneration in the 100 100% 20,787 20,787 Inc. (note 21) State of WV Dominion Elwood, Inc. Holding company 100 100% 96,869 96,869 (note 22) Unsecured debt (19,150) (19,150) Dominion Elwood Services company 10 100% 319 319 Services Company, Inc. Dominion Energy General contractor 100 100% 0 0 Construction Company Unsecured debt 548 548 Dominion Energy Direct Gas and electric 100 100% (775) (775) Sales, Inc. marketing Dominion Energy Special purpose 100 100% 1 1 Exchange, Inc. subsidiary (Dominion Energy Exchange) Dominion Energy Special purpose 10 100% (128) (128) Management, Inc.* subsidiary Dominion Energy Services company 10 100% 7,963 7,963 Services Company, Inc. Dominion Fairless Holding company 100 100% 0 0 Hills, Inc. Dominion Kincaid, Inc. Holding company 10 100% 94,992 94,992 (note 23) Unsecured debt 776 776 Kincaid Generation, Non-regulated power N/A 100% 119,547 119,547 LLC generation Dominion Reserves, Exploration and 10 100% 219,299 219,299 Inc. production Carthage Energy Gas marketing 500 100% $ (234) $ (234) Services, Inc.
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Number of Common % of Issuer's Owner's Shares Voting Book Book Name of Company Business Owned Power Value Value - --------------- -------- ---------- ------ -------- -------- (Thousand of Dollars) Cypress Energy Inc. Exploration and 10 100% $(6,169) $(6,169) production Dominion Appalachian Exploration and 10 100% (6,804) (6,804) Development, Inc. production Dominion Appalachian Exploration and N/A 100% 13,319 13,319 Development production Properties, LLC (note 24) Dominion Gas Natural gas 10 100% 7,155 7,155 Processing MI, Inc. processing (note 25) Frederic HOF Limited Gas processing N/A 94% 14,741 14,741 Partnership (Frederic HOF LP) Dominion Midwest Exploration and 10 100% 107,457 107,457 Energy, Inc. production Dominion Reserves Exploration and 10 100% 50,374 50,374 Gulf Coast, Inc. production Dominion Reserves- Exploration and 10 100% (8,735) (8,735) Indiana, Inc. production Great Lakes Oil field services 10 100% 3,853 3,853 Compression, Inc. Dominion Reserves- Exploration and 10 100% 53,200 53,200 Utah, Inc. production Dominion San Juan, Holding company 10 100% 74,048 74,048 Inc. (note 26) San Juan Partners, Oil & gas investments 100% 74,048 74,048 LLC Dominion Storage, Inc. Special purpose 10 100% 359 359 subsidiary Dominion Energy Exploration and 73,886 100% 107,313 107,313 Canada Limited production (note 27) Domcan East Alberta Oil and gas 1 100% 20,989 20,989 Ltd. exploration and development Domcan Boundary Oil and gas 26,343,437 100% 86,324 86,324 Corp. exploration and (note 28) development Dominion Generation, Electric power 100 100% (404) (404) Inc. generation holding company Dominion Equipment, Special purpose 100 100% 100 100 Inc. subsidiary Dominion Elwood II, Special purpose 100 100% 0 0 Inc. (note 29) subsidiary Unsecured debt 42,552 42,552 Dominion Elwood III, Special purpose 100 100% (110) (110) Inc. (note 30) subsidiary Unsecured debt 70,369 70,369 Dominion Resources Service company 200 100% (24,317) (24,317) Services, Inc.
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Number of Common % of Issuer's Owner's Shares Voting Book Book Name of Company Business Owned Power Value Value - --------------- -------- --------- ------ --------- --------- (Thousand of Dollars) Dominion Resources Special purpose 7,732 3% $7,732 $7,732 Capital Trust I entity 257,732 257,732 Unsecured debt Dominion Telecom, Inc. Telecommunications 158 100% 27,813 27,813 (note 31) services Dominion U.K. Holding, Holding company 100 100% (2,211) (2,211) Inc. Virginia Electric and Electric utility 171,484 100% 3,849,020 3,850,020 Power Company (Virginia Power) Virginia Power Fuel Nuclear fuel 1,000 100% 1 1 Corporation procurement 35,656 35,656 Unsecured debt Virginia Power Holding company Services, Inc. 1,590 100% 23,891 23,891 Evantage, Inc. Energy services 1 100% 17,280 17,280 Virginia Power Energy Fuel procurement 1,000 100% 9,521 9,521 Marketing, Inc. (VPEM) Virginia Power Fuel procurement 1 100% (5,701) (5,701) Services Energy Corp, Inc. (VPSE) Virginia Power Nuclear management 100 100% (2,138) (2,138) Nuclear Services and operational Company (VPNS) services VP Property, Inc. Real estate holding 490.8 100% 4,787 4,787 company VP Capital Trust I Special purpose 167,000 100% 4,175 4,175 Unsecured debt entity 139,175 139,175
- ------- * Indicates company is inactive. Notes: 1. Effective January 1, 2001, CNG transferred its interest in CNG Service Company to Dominion through a dividend, preliminary to the merger of CNG Service Company into Dominion Resources Services, Inc. on January 1, 2001. 2. CNG Coal formerly owned coal reserves and a related plant site. These properties were sold in 1996. 3. Effective May 31, 2000, CNG International transferred its investment in CNG Cayman One Ltd. and its subsidiary, CNGI Australia Pty Ltd., to CNG Cayman Two Ltd. for a 23.08% direct interest in CNG Cayman Two. CNG Cayman Two is held by DBNGP Finance Company LLC, which is owned 50% by CNG International. 4. CNG Kauai, an exempt wholesale generator, currently has a 1% general partnership interest and a 98% limited partnership interest in Kauai Power Partners, L.P. CNG International also holds a 1% limited partnership interest in Kauai Power Partners. Kauai Power Partners is an exempt wholesale generator involved in the greenfield development of a 26 MW advanced steam-injected combustion turbine power plant on the island of Kauai, Hawaii. 5. CNG Main Pass holds a 13.6% interest in Dauphin Island Gathering Partners which operates a gas gathering pipeline system in the Main Pass area of the Gulf of Mexico. 6. CNG Oil Gathering holds a 33.3% general partnership interest in Main Pass Oil Gathering Company which operates an oil gathering pipeline system in the Main Pass and Vioska Knoll areas of the Gulf of Mexico. 7. CNG Market Center Services held a 50% general partnership interest in the CNG/Sabine Center gas marketing hub. Effective January 1, 2000, the hub ceased operations. The partnership was dissolved and a liquidating distribution was made to the partners in July 2000. 8. Granite Road holds a 50% general partnership interest in Granite Road Limited, a partnership planning the development of a cogeneration facility. 9. Consolidated LNG ended its involvement in liquefied natural gas operations in 1982, and as of February 1998 had recovered its undepreciated investment, plus carrying charges and taxes, through a FERC-approved amortization surcharge. 7 10. Effective April 12, 2000, CNG Producing Company was renamed Dominion Exploration & Production, Inc. 11. Effective April 1, 2000, CNG Field Services Company was renamed Dominion Field Services, Inc. On May 1, 2000, CNG transferred the net assets of Phoenix Dominion Energy, LLC to Dominion Field Services. CNG had acquired the net assets of Phoenix Dominion Energy, LLC from a subsidiary of Dominion Energy, Inc. 12. Effective September 5, 2000, CNG Products and Services, Inc. was renamed Dominion Products and Services, Inc. 13. Effective September 5, 2000, CNG Retail Services Corporation was renamed Dominion Retail, Inc. Dominion Retail markets natural gas, electricity and related products and services to residential, commercial and small industrial customers. 14. Effective April 11, 2000, CNG Transmission Corporation was renamed Dominion Transmission, Inc. 15. CNG Iroquois holds a 16% partnership interest in Iroquois Gas Transmission System, L.P. 16. Dominion Capital holds a 50% interest in Trilon Dominion Partners, L.L.C., which is involved in venture capital investments. 17. Dominion Energy holds a 20% interest in Caithness BLM Group L.P. and a 23% interest in Caithness Navy II Group L.P. Both companies are involved in geothermal electric generation. 18. Dominion Energy holds a 15% interest in Luz Solar Partners Ltd. VII, L.P., which is involved in solar electric generation. 19. Dominion Energy holds a 10% interest in Rumford Cogeneration Company, Ltd., which is involved in wood burning electric generation. 20. Dominion Cogen NY, Inc. owns 1% general partnership interest in Middle Falls, NYSD and Sissonville hydropower plants and DEI owns a 49% interest. All investments in these plants have been written down to zero. 21. Dominion Cogen WV, Inc. is a wholly owned subsidiary of DEI that holds a 50% interest in Morgantown Energy Associates. 22. Dominion Elwood, Inc. is a wholly owned subsidiary of DEI that holds a 50% interest in Elwood Energy LLC, which is involved in the development of an electric power generating facility. 23. Dominion Kincaid, Inc. is a wholly owned subsidiary of DEI that holds a 99% interest in Kincaid Generation, LLC with DEI owning the remaining 1% interest. 24. Dominion Appalachian Development Properties, LLC, is owned 99% by Dominion Reserves, Inc. and 1% by Carthage Energy Services, Inc. 25. Dominion Gas Processing MI, Inc., holds a 50% interest in Wilderness Energy L.C., which in turns holds a 51% interest in Wilderness Energy Services Limited Partnership. Both Wilderness Energy L.C. and Wilderness Energy Services Limited Partnership are involved in natural gas gathering and processing. 26. San Juan Partners, Inc. is owned through Dominion San Juan, Inc. 27. Dominion Energy Canada Limited is owned 7.33% by Niton US, Inc., 46.34% by Dominion Storage, Inc., and 46.33% by DEI. Niton US, Inc. has no other activity. 28. Certain long-term debt of Domcan Boundry Corp. is owed to Domcan NS1 ULC. Domcan NS1 ULC is a special purpose entity owned 99% by Remington LLC and 1% by DEI. Remington LLC is a special purpose entity owned 100% by DEI. The only activity of Domcan NS1 LLC and Remington LLC relates to borrowings on behalf of Domcan Boundry Corp. 29. Dominion Elwood II, Inc. is a wholly-owned subsidiary of DEI which holds a 50% interest in Elwood Energy II, LLC, which is involved in the development of an electric power generating facility. 30. Dominion Elwood III, Inc. is a wholly-owned subsidiary of DEI which holds a 50% interest in Elwood Energy III, LLC. 31. VPS Communications, Inc. was transferred from Virginia Power to Dominion on August 1, 2000 and renamed Dominion Telecom, Inc., an exempt telecommunications company. ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS During 2000, Virginia Power had three transactions involving the sale of utility assets for consideration totaling $43,529. All three transactions are exempt pursuant to Rule 44(b). ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES During 2000, Dominion Transmission had several letters of credit outstanding to provide security to the Commonwealth of Pennsylvania for the Company's obligation to plug and reclaim gas wells as part of the 8 process of abandonment of gas storage properties. One-half the cost of one letter of credit is shared by nonaffiliated pipeline companies. As of December 31, 2000, the balance outstanding on these letters of credit totaled $7,500,000. Dominion maintained three indemnity agreements for surety bonds as of December 31, 2000. The indemnity agreements represented total outstanding obligations of $88,618,850. Effective April 16, 2001, a new indemnity agreement was entered into which had the effect of consolidating two of the previous agreements. At this time, Dominion maintains two separate indemnity agreements with two separate surety companies. CNG has issued guarantees, in addition to surety bonds, to the states of Pennsylvania and West Virginia to maintain worker's compensation self-insurance status for Dominion Transmission and Hope Gas. Self-insured status means that the subsidiary pays the worker's compensation claims directly instead of paying into the state maintained fund. CNG has also issued a guarantee to the U.S. Department of Labor for Dominion E&P to continue its self-insurance status in the state of Louisiana. All of the above transactions are exempt pursuant to Rule 45(b)(6). 9 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES Calendar Year 2000 (Thousands of Dollars)
Number of Name of Company Number of Shares or Name of Issuer Acquiring, Shares or Principal Amount and Title of Redeeming or Principal Amount Redeemed or Issue Retiring Securities Acquired Retired (Note 1) Consideration - -------------- ------------------- ---------------- ---------------- ------------- Registered Holding Company: Dominion Common stock, no Dominion 32,893,919 shares (note 3) $1,414,456 par............ Common stock, no par............ Dominion 5,219,647 shares (note 4) $227,064 Name of Issuer and Title of Commission Issue Authorization (Note 2) - -------------- ---------------------- Registered Holding Company: Dominion Common stock, no par............ Release No. 27113 (File No. 70-9477) Common stock, no par............ Rule 42 Subsidiaries of Registered Holding Company: Consolidated Natural Gas: Common stock, par value $2.75 Consolidated per share...... Natural Gas 9,996 shares (note 5) $ -- Subsidiaries of Registered Holding Company: Consolidated Natural Gas: Common stock, par value $2.75 per share...... Rule 42 Common stock, par value $2.75 per share...... Dominion 95,938,356 shares (note 6) 95,938,356 shares (note 6) $6,373,092 Common stock, par value $2.75 per share...... Release No. 27113 (File No. 70-9477) Consolidated Debentures...... Natural Gas $44,615 $45,254 Debentures...... Rule 42 Dominion Field Services: Capital stock, par value $10,000 per Consolidated share.......... Natural Gas 355 shares (note 7) $ -- Dominion Field Services: Capital stock, par value $10,000 per share.......... Rules 43 and 58 Virginia Natural Gas (note 8): Capital stock, Consolidated no par value... Natural Gas 5,273 shares $532,933 Non-negotiable Consolidated notes.......... Natural Gas $116,000 Virginia Natural Gas (note 8): Capital stock, no par value... Release No. 27113 (File No. 70-9477) Non-negotiable notes.......... Release No. 27113 (File No. 70-9477) CNG Service Company: Non-negotiable notes.......... CNG Service Company $23,672 $23,672 CNG Service Company: Non-negotiable notes.......... Rule 42 Dominion Transmission: Non-negotiable Dominion notes.......... Transmission $5,827 $5,827 Dominion Transmission: Non-negotiable notes.......... Rule 42 Dominion East Ohio: Non-negotiable notes.......... Dominion East Ohio $2,440 $2,440 Dominion East Ohio: Non-negotiable notes.......... Rule 42 Dominion Peoples: Non-negotiable notes.......... Dominion Peoples $1,261 $1,261 Dominion Peoples: Non-negotiable notes.......... Rule 42
10 Calendar Year 2000 (Thousands of Dollars)
Number of Number of Shares or Name of Company Shares or Principal Amount Name of Issuer and Acquiring, Redeeming or Principal Amount Redeemed or Title of Issue Retiring Securities Acquired Retired (Note 1) Consideration - ------------------ ----------------------- ---------------- ---------------- ------------- Dominion Hope: Non-negotiable notes......... Dominion Hope 474 $474 Name of Issuer and Commission Title of Issue Authorization (Note 2) - ------------------ ---------------------- Dominion Hope: Non-negotiable notes......... Rule 42 Dominion E&P: Non-negotiable notes......... Dominion E&P $4,450 $4,450 Dominion E&P: Non-negotiable notes......... Rule 42 CNG Power: CNG Bear Mountain, Inc. Capital stock, CNGpPower:ar value CNG$Bear10,000 per Mountain,sInc.hare.......... CNG Power 1 share (note 9) $-- Capital stock, par value $10,000 per share.......... non-jurisdictional CNG International: CNG Cayman One Ltd. Capital stock, par value $.01 per share...... CNG Cayman Two, Ltd. 990 shares (note 10) $-- CNGI Australia Pty. Ltd. Capital stock, par value $1 CNGper share...... CNG Cayman Two, Ltd. 100 shares (note 10) International: CNG Cayman One Ltd. Capital stock, Release Nos. 26608, par value $.01 26824 per share...... (File No. 70-8759) CNGI Australia Pty. Ltd. Capital stock, par value $1 per share...... CNG Cayman Three Ltd. Capital stock, par value $.01 Sempra Energy per share...... International 100 shares (note 11) $145,000 CNG Argentina S.A. Capital stock, par value ARP Sempra Energy CNG$Cayman1Threeper share.. International 12,000 shares (note 11) Ltd. Capital stock, par value $.01 per share...... non-jurisdictional CNG Argentina S.A. Capital stock, par value ARP $1 per share.. Dominion Energy: Dominion Energy Exchange Common stock no par............ Dominion Energy 100 shares (note 12) $1 Dominion Energy: Dominion Energy Exchange Common stock no par............ Rule 58 Dominion Energy Direct Sales, Inc. Common stock no par............ Dominion Energy 100 shares (note 13) $1 Dominion Energy Direct Sales, Inc. Common stock no par............ Rule 58 Virginia Power $5.58 Series Virginia Power 400,000 shares $40,000 Preferred Stock, $100 par........... $6.35 Series Virginia Power 1,400,000 shares $140,000 Preferred Stock, $100 par........... Medium Term Virginia Power $60,500 $60,500 Notes, various %, Series C... First and Refunding Mortgage Virginia Power $135,000 $135,000 Bonds, Series C, 5.875%, April 1, 2000.......... Virginia Power $5.58 Series Rule 42 Preferred Stock, $100 par........... $6.35 Series Rule 42 Preferred Stock, $100 par........... Medium Term Rule 42 Notes, various %, Series C... First and Refunding Mortgage Rule 42 Bonds, Series C, 5.875%, April 1, 2000..........
- ------ Notes to ITEM 4. appear on page 12. 11 - -------- Notes: 1. Except as noted, all securities redeemed or retired have been cancelled. 2. Public Utility Holding Company Act of 1935 (1935 Act). 3. On January 28, 2000, in connection with the acquisition of CNG, Dominion completed the first step transaction in which 32.9 million shares of Dominion common stock were repurchased for $1.4 billion. 4. In February 2000, Dominion repurchased approximately 3.2 million shares of stock through the implementation of a total return swap facility for approximately $145 million. The remaining shares were repurchased in connection with the Executive Stock Loan Program. 5. At December 31, 1999, CNG held 10,443 shares of its common stock as treasury stock. During the period January 1 through January 27, 2000, a total of 447 shares of treasury stock were reissued under CNG's then existing employee incentive plans at an average price of $60.75 per share, or approximately $27,000. Immediately prior to the merger with Dominion, the remaining 9,996 shares of treasury stock held by CNG, valued at $596,000, were retired. 6. On January 28, 2000, Dominion acquired all of the outstanding shares of CNG's common stock for $6.4 billion, consisting of approximately 87 million shares of Dominion common stock valued at $3.5 billion and approximately $2.9 billion in cash. The acquisition was completed by merging CNG into a new subsidiary of Dominion. The name of the new Dominion subsidiary was changed to Consolidated Natural Gas Company at the time of the merger. 7. On May 1, 2000, Dominion Field Services issued to CNG 355 shares of its common stock, par value $10,000 per share, and received a capital contribution of $44,665 from CNG, with respect to the transfer by CNG of the net assets of Phoenix Dominion Energy, LLC. CNG acquired the net assets of Phoenix Dominion Energy, LLC from subsidiaries of Dominion for $3,594,665 in cash. 8. On October 6, 2000, CNG completed the sale of Virginia Natural Gas, Inc. (VNG), formerly a wholly-owned subsidiary, to AGL Resources Inc. for $532,933,000 in cash. CNG was required to spin-off or sell VNG pursuant to conditions set forth by the Virginia State Corporation Commission and the Federal Trade Commission in connection with their approval of the acquisition of CNG by Dominion. CNG used a portion of the proceeds from the sale to retire the $116,000,000 of outstanding non-negotiable notes between VNG and CNG. 9. CNG Bear Mountain, Inc., formerly a wholly-owned subsidiary of CNG Power, was dissolved on March 17, 2000. 10. Effective May 31, 2000, CNG International transferred its investment in CNG Cayman One Ltd. and its subsidiary, CNGI Australia Pty Ltd., to CNG Cayman Two Ltd. for a 23.08% direct interest in CNG Cayman Two. CNG Cayman Two is held by DBNGP Finance Company LLC, which is owned 50% by CNG International. 11. On October 12, 2000, CNG International completed the sale of CNG Cayman Three Ltd. and its subsidiary, CNG Argentina S.A., to Sempra Energy International. 12. On September 21, 2000 Dominion Energy Exchange was formed as a wholly owned subsidiary of Dominion Energy for the purpose of investing in EIP Holdings, LLC which owns 66.34% of Tradespark, LP, an electronic and telephonic marketplace for transactions in natural gas, electricity, coal, sulfur dioxide and nitrogen dioxide emissions allowances and weather financial products. 13. On February 22, 2000 Dominion Energy Direct Sales, Inc. was formed as a wholly-owned subsidiary of Dominion Energy to engage in the business of providing energy services, including retail sales of electricity to commercial and industrial users, engineering, consulting and construction activities and other energy related services. 12 ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES The aggregate amounts of investments at December 31, 2000, in persons operating in the system's retail service area are shown below.
Number of Aggregate Name of Owner Persons Business of Persons Investment - ------------- --------- ------------------- ---------- Dominion Transmission.. One State Development Fund $ 100,000 Dominion Hope.......... One State Development Fund $ 100,000 Dominion Hope.......... One Economic Development Small $2,475,000 Business Investment Company (Note)
Note: Investment made pursuant to the West Virginia Capital Companies Act and under 40(a)(5). The above do not include investments in securities of nonsystem companies which have been authorized by Commission order under the Public Utility Holding Company Act of 1935 and which are subject to Rule 24 Certificate filing requirements. Other investments in securities of non-system companies included the following:
Type of Shares Owned/ Name of Owner Issuer Business of Issuer Book Value Investment % Ownership - ------------- ------ ------------------ ---------- ---------- ------------- Dominion Resources Pantellos, Corp. Investor in electronic $2,678,556 Common 268,235 shares marketplace Stock EIP Holdings, LLC Investor in electronic $2,500,000 Partnership 9.90% Dominion Energy Exchange marketplace interest
For Virginia Power's investments in securities of nonsystem companies, see Exhibit F-3. ITEM 6. OFFICERS AND DIRECTORS Part I. Names, principal business address and positions held as of December 31, 2000 The names, principal business address and positions held as of December 31, 2000, of the officers and directors of system companies is presented in the tables on page 15 through 20. The principal business address of each officer and director is indicated in such tables by the numbers (1) through (30). The addresses associated with these number designations are shown in the following address key. The symbols used to indicate the positions held by officers and directors are shown in the position symbol key below. ADDRESS KEY (1) 120 Tredegar Street, Richmond, VA 23219 (2) 701 East Cary Street, Richmond, VA 23219 (3) 5000 Dominion Boulevard, Glen Allen, VA 23060 (4) 625 Liberty Avenue, Pittsburgh, PA 15222 (5) 1450 Poydras Street, New Orleans, LA 70112 (6) 140 West Main Street, Clarksburg, WV 23601 (7) 347 West Main Street, Clarksburg, WV 23601 (8) 445 West Main Street, Clarksburg, WV 23601 13 (9) 1717 East Ninth Street, Cleveland, OH 44114 (10) 16945 Northchase Drive, Houston, TX 77060 (11) 5570 Hog Island Road, Surry, VA 23883 (12) 1022 Haley Drive, Mineral, VA 23117 (13) 2400 Grayland Avenue, Richmond, VA 23220 (14) 2700 Cromwell Drive, Norfolk, VA 23509 (15) Rope Ferry Road, Waterford, CT 06385 (16) 781 Weed Street, New Canaan, CT 06840 (17) 4 Derham Parc, Houston, TX 77024 (18) 100 North Tryon Street, Suite 2600, Charlotte, NC 28202 (19) 904 North First Street, Richmond, VA 23219 (20) 3805 Greenway, Baltimore, MD 21218 (21) One PPG Place, Suite 2970, Pittsburgh, PA 15222 (22) 29 Everett Street, Cambridge, MA 02138 (23) 1422 Euclid Avenue, Suite 1400, Cleveland, OH 44115 (24) 6 Whittaker's Mill, Williamsburg, VA 23185 (25) 1122 North 25th Street, Suite A, Richmond, VA 23223 (26) 314 Burnwick Road, Richmond, VA 23227 (27) 3559 Fairystone Park Highway, 2nd Floor, Bassett, VA 24055 (28) 600 Grant Street, Suite 700, Denver, CO 80203 (29) 1201 East 55th Street, Cleveland, OH 44103 (30) 400 3rd Avenue, SW, Calgary, Alberta, Canada T2P4H2 POSITION SYMBOL KEY CB -- Chairman of the Board CEO -- Chief Executive Officer P -- President EVP -- Executive Vice President CFO -- Chief Financial Officer COO -- Chief Operating Officer GVP -- Group Vice President
CAO -- Chief Administrative Officer SVP -- Senior Vice President VP -- Vice President S -- Secretary T -- Treasurer C -- Controller GC -- General Counsel D -- Director
14
Names of System Companies with Which Connected -------------------------------------------------------------------- Principal CNG Business Parent Service CNG CNG CNG Oil Power Address Company Company CNG Coal International Main Pass Gathering Services --------- -------- ------- -------- ------------- --------- --------- -------- Bamberg, T.J. (4) Barger, J.L. (8) Barker, K.D. (2) Barrack, W.S., Jr. (16) D Blount, R.H., II (11) Bolton, M.S., Jr. (2) Bowling, M.L., Jr. (3) Braswell, J.W. (3) Capps, T.E. (1) CB,P,CEO D,P,CEO Carter, G.B. (1) Chase, D.S. (1) VP Chewning, T.N. (1) EVP,CFO EVP,CFO D,P,CEO Christian, D.A. (3) Coudriet, C.E. (1) Cox, M.T., IV (1) P Davidson, G.A., Jr. (4) D Deacon, M.G., Jr. (3) Dodd, T.E. (4) VP Doswell, M.C. (2) Earwod, J.T., Jr. (13) Faggert, P.F. (3) VP Farrell, T.F., II (1) EVP D,EVP D,CEO Foo, W.K. (30) Galvin, R.E. (17) D Grier, R.S. (2) VP Haas, R.A., Jr. (4) Halbritter, M.A. (4) Hall, E.S. (29) Hall, W.C. Jr. (1) VP VP Hardy, E.T. (2) SVP SVP Harris, J.W. (18) D Hartz, L.N. (3) Hayes, R.M. (14) Heacock, D.A. (12) Hetzer, G.S. (1) SVP,T SVP,T SVP,T SVP,T SVP,T SVP,T Hilton, E.P. (1) Hodges, S.C. (1) VP VP Hunter, K.E. (2) VP VP Hyman, T.A., Jr. (4) Ivey, C.S. (2) Johnson, J.L. (1) Kamper, G.T. (2) VP Katz, L.D. (1) Klink, B.C. (9) Kochick, R.J. (5) Koonce, P.D. (1) Kovach, R.A. (9) Lake, G.E., Jr. (10) SVP SVP SVP
Address key and position symbol key are located on pages 13 and 14. 15
Names of System Companies with Which Connected ----------------------------------------------------------------------------- Dominion Dominion Dominion Products Consolidated Dominion Dominion Exploration & Field Dominion and Natural Gas Capital Energy Production Services Generation Services ------------ -------- -------- ------------- -------- ---------- -------- Bamberg, T.J. VP Barger, J.L. Barker, K.D. Barrack, W.S., Jr. Blount, R.J., II Bolton, M.S., Jr. Bowling, M.L., Jr. VP Braswell, J.W. VP Capps, T.E. CB,P,CEO D CB D D D D,CEO Carter, G.B. Chase, D.S. Chewning, T.N. EVP,CFO CB Christian, D.A. SVP Coudriet, C.E. P,CEO Cox, M.T., IV SVP Davidson, G.A., Jr. Deacon, M.G., Jr. VP Dodd, T.E. VP Doswell, M.C. Earwod, J.T., Jr. Faggert, P.F. VP Farrell, T.F., II D,EVP D,CEO D D,CEO D,CEO D Foo, W.K. SVP SVP Galvin, R.E. Grier, R.S. Haas, R.A., Jr. Halbritter, M.A. Hall, E.S. Hall, W.C. Jr. VP Hardy, E.T. SVP Harris, J.W. Hartz, L.N. VP Hayes, R.M. Heacock, D.A. VP Hetzer, G.S. SVP,T SVP,T SVP,T SVP,T SVP,T SVP,T Hilton, E.P. SVP Hodges, S.C. VP Hunter, K.E. VP Hyman, T.A., Jr. Ivey, C.S. Johnson, J.L. SVP Kamper, G.T. Katz, L.D. C C C Klink, B.C. Kochick, R.J. VP VP Koonce, P.D. SVP SVP Kovach, R.A. Lake, G.E., Jr. SVP SVP
Address key and position symbol key are located on pages 13 and 14. 16
Names of System Companies with Which Connected ------------------------------------------------------------------------------ Virginia Dominion Dominion Dominion East Ohio Peoples Electric and Retail Transmission U.K. Holding Hope Gas Gas Natural Gas Power -------- ------------ ------------ -------- --------- ----------- ------------ Bamberg, T.J. VP Barger, J.L. VP Barker, K.D. VP Barrack, W.S., Jr. Blount, R.J., II VP Bolton, M.S., Jr. SVP SVP SVP SVP Bowling, M.L., Jr. VP Braswell, J.W. Capps, T.E. D,CEO D D,P D D D CB Carter, G.B. VP Chase, D.S. Chewning, T.N. Christian, D.A. SVP Coudriet, C.E. Cox, M.T., IV Davidson, G.A., Jr. Deacon, M.G., Jr. Dodd, T.E. VP Doswell, M.C. VP VP VP VP Earwod, J.T., Jr. SVP Faggert, P.F. VP Farrell, T.F., II D D,CEO D D D D D,CEO Foo, W.K. Galvin, R.E. Grier, R.S. Haas, R.A., Jr. VP VP VP VP Halbritter, M.A. VP Hall, E.S. VP VP VP Hall, W.C. Jr. Hardy, E.T. Harris, J.W. Hartz, L.N. VP Hayes, R.M. VP VP VP VP Heacock, D.A. VP Hetzer, G.S. SVP,T SVP,T SVP,T SVP,T SVP,T SVP,T Hilton, E.P. SVP Hodges, S.C. Hunter, K.E. Hyman, T.A., Jr. SVP SVP SVP Ivey, C.S. VP Johnson, J.L. Kamper, G.T. Katz, L.D. C C Klink, B.C. VP VP VP Kochick, R.J. Koonce, P.D. SVP SVP Kovach, R.A. VP VP VP Lake, G.E., Jr.
Address key and position symbol key are located on pages 13 and 14. 17
Names of System Companies with Which Connected --------------------------------------------------------------------- Principal CNG Business Parent Service CNG CNG CNG Oil Power Address Company Company CNG Coal International Main Pass Gathering Services --------- ------- --------- -------- ------------- --------- --------- -------- Lambert, B.J., III (19) D Leatherwood, R.L. (20) D Lego, P.E. (21) D Lewis, J.R. (5) SVP SVP Manning, A.E. (2) VP Marks, E.J., III (4) S Martin, J.K. (1) Matthews, W.R. (3) McClenaghan, N.E. (29) McDermid, M.E. (2) VP McGettrick, M.F. (2) McKean, T.D. (1) VP McKenna, M.A. (22) D Medvedo, P.P. (4) VP Mikuta, M.P. (1) Minter, S.A. (23) D Mistr, W.S. (1) VP Mola, E.C. (1) VP Moore, J.L. (1) Nichols, C.J. (5) O'Hanlon, J.P. (1) EVP EVP P Randall, K.A. (24) D Riekel, A.R. (1) Riely, H.C. (1) Rigsby, R.E. (2) EVP EVP Riley, H.P. (5) EVP D,EVP D,CEO D,P,CEO D,P,CEO Riley, P.E., Jr. (4) Rivas, E.J. (3) Roach, E.M., Jr. (4) EVP D,EVP Roberts, C.E. (6) Rogers, S.A. (1) VP,C VP,C Royal, F.S. (25) D Sanderlin, J.L. (1) SVP SVP Schools, M.R., Jr. (4) Schuyler, J.R. (10) SVP SVP SVP Shaw, J.A. (1) Simmons, S.D. (26) D Spilman, R.H. (27) D Staton, J.D. (2) Stutts, J.F. (1) VP,GC VP,GC Sypolt, G.L. (8) Thatcher, R.T. (3) Trueheart, J.L. (2) GVP,CAO D,GVP,CAO Vanzant, J.C., Jr. (6) Wester, T.E. (4) Wilkerson, P.A. (1) VP,S VP,S VP,S VP,S VP,S VP,S Wollard, D.A. (28) D Wood, F.G., III (5) SVP SVP SVP
Address key and position symbol key are located on pages 13 and 14. 18
Names of System Companies with Which Connected ----------------------------------------------------------------------------- Dominion Dominion Dominion Products Consolidated Dominion Dominion Exploration & Field Dominion and Natural Gas Capital Energy Production Services Generation Services ------------ -------- -------- ------------- -------- ---------- -------- Lambert, B.J., III Leatherwood, R.L. Lego, P.E. Lewis, J.R. SVP SVP Manning, A.E. Marks, E.J., III Martin, J.K. VP Matthews, W.R. VP McClenaghan, N.E. McDermid, M.E. McGettrick, M.F. McKean, T.D. McKenna, M.A. Medvedo, P.P. Mikuta, M.P. VP,C Minter, S.A. Mistr, W.S. SVP Mola, E.C. Moore, J.L. VP Nichols, C.J. C C O'Hanlon, J.P. EVP P,COO P P,COO Randall, K.A. Riekel, A.R. VP Riely, H.C. S Rigsby, R.E. EVP Riley, H.P. EVP D,P,CEO D,P,CEO Riley, P.E., Jr. SVP Rivas, E.J. SVP SVP Roach, E.M., Jr. D,EVP D D D D D Roberts, C.E. VP VP Rogers, S.A. VP,C Royal, F.S. Sanderlin, J.L. SVP Schools, M.R., Jr. Schuyler, J.R. SVP SVP Shaw, J.A. SVP SVP SVP Simmons, S.D. Spilman, R.H. Staton, J.D. Stutts, J.F. VP,GC Sypolt, G.L. Thatcher, R.T. Trueheart, J.L. GVP,CAO VP,C Vanzant, J.C., Jr. VP Wester, T.E. Wilkerson, P.A. VP,S VP,S VP,S VP,S VP,S VP,S Wollard, D.A. Wood, F.G., III SVP SVP
Address key and position symbol key are located on pages 13 and 14. 19
Names of System Companies with Which Connected ------------------------------------------------------------------------------ Virginia Dominion Dominion Dominion East Ohio Peoples Electric and Retail Transmission U.K. Holding Hope Gas Gas Natural Gas Power -------- ------------ ------------ -------- --------- ----------- ------------ Lambert, B.J., III Leatherwood, R.L. Lego, P.E. Lewis, J.R. Manning, A.E. Marks, E.J., III Martin, J.K. Matthews, W.R. VP McClenaghan, N.E. VP VP VP VP McDermid, M.E. VP McGettrick, M.F. SVP SVP SVP SVP McKean, T.D. McKenna, M.A. Medvedo, P.P. Mikuta, M.P. Minter, S.A. Mistr, W.S. VP Mola, E.C. Moore, J.L. Nichols, C.J. O'Hanlon, J.P. P P,COO Randall, K.A. Riekel, A.R. VP Riely, H.C. Rigsby, R.E. P P P P,COO Riley, H.P. Riley, P.E., Jr. SVP Rivas, E.J. SVP Roach, E.M., Jr. D D D D,CEO D,CEO D,CEO D,CEO Roberts, C.E. Rogers, S.A. VP Royal, F.S. Sanderlin, J.L. Schools, M.R., Jr. C C C C Schuyler, J.R. Shaw, J.A. SVP SVP Simmons, S.D. Spilman, R.H. Staton, J.D. SVP Stutts, J.F. VP Sypolt, G.L. SVP Thatcher, R.T. VP Trueheart, J.L. GVP Vanzant, J.C., Jr. Wester, T.E. VP VP VP Wilkerson, P.A. VP,S VP,S VP,S VP,S VP,S VP,S VP,S Wollard, D.A. Wood, F.G., III
Address key and position symbol key are located on pages 13 and 14. 20 Part II. Banking connections Information concerning all officers and directors of each system company who have financial connections within the provisions of Section 17(c) of the Public Utility Holding Company Act of 1935 as of December 31, 2000, follows:
Position Held Applicable Name of Officer or Name and Location of Financial in Financial Exemption Director Institution Institution Rule - ------------------ ------------------------------ ------------- ---------- George A. Davidson, The PNC Financial Services Group, Director 70(a) Jr..................... Inc. Pittsburgh, Pennsylvania Benjamin J. Lambert, Consolidated Bank and Trust Director 70(a) III.................... Company Richmond, Virginia Steven A. Minter........ KeyCorp Director 70(a) Cleveland, Ohio Frank S. Royal.......... SunTrust Banks, Inc. Director 70(b) Atlanta, Georgia.
Part III. Compensation and other related information (a) The compensation of directors and executive officers of system companies: Information concerning the compensation of directors and the five highest paid executive officers of the system for the year 2000 is included in the Registrant's 2001 Proxy Statement which is filed as Exhibit F-4 to this Form U5S. Information presented under the captions "THE BOARD-- Compensation and Other Programs" on page 8 and "EXECUTIVE COMPENSATION" on page 15 in such proxy statement is hereby incorporated by reference. (b) Their interest in the securities of system companies including options or other rights to acquire securities: Information concerning the interests of directors and executive officers in the securities of system companies including options or other rights to acquire securities is included in the Registrant's 2001 Proxy Statement, which is filed as Exhibit F-4. Information presented under the following captions in such proxy statement is hereby incorporated by reference: "THE BOARD--Compensation and other Programs" on page 8; "SHARE OWNERSHIP TABLE" on page 9; "ORGANIZATION, COMPENSATION & NOMINATING COMMITTEE REPORT--Long- Term Incentives" on page 13; and "EXECUTIVE COMPENSATION" on pages 15 through 19. (c) Their contracts and transactions with system companies: Information concerning contracts and transactions by directors and executive officers with system companies is included in the Registrant's 2001 Proxy Statement, which is filed as Exhibit F-4 to this Form U5S. Information presented under the following captions in such proxy statement is hereby incorporated by reference: "THE BOARD--Compensation and Other Programs" on page 8; "EXECUTIVE COMPENSATION--Other Executive Agreements and Arrangements" on page 18; and "EXECUTIVE COMPENSATION--Executive Stock Purchase and Loan Program" on page 19. (d) Their indebtedness to system companies: None. (e) Their participation in bonus and profit-sharing arrangements and other benefits: Information concerning the participation by directors and executive officer in other benefits is included in the Registrant's 2001 Proxy Statement, which is filed as Exhibit F-4 to this Form U5S. Information presented under the following captions in such proxy statement is hereby incorporated by 21 reference: "THE BOARD--Compensation and Other Programs" on page 8; "ORGANIZATION, COMPENSATION & NOMINATING COMMITTEE REPORT--Annual Incentives and Long-term Incentives" on pages 12 and 13; "EXECUTIVE COMPENSATION--Retirement Plans" on page 17; "EXECUTIVE COMPENSATION--Other Executive Agreements and Arrangements" on page 18; and "EXECUTIVE COMPENSATION--Executive Stock Purchase and Loan Program" on page 19. (f) Their rights to indemnification: Pursuant to Section 13.1-697 and Section 13.1-698 of the Code of Virginia, the Company's articles of incorporation indemnify a director or officer who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent, against reasonable expenses incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The Company also purchases directors and officers liability insurance with limits of $250 million, and, in recognition of the scope of the foregoing by- law indemnification, certain other errors and omission and general liability insurance coverage's which are applicable to all employees as insured, including directors and officers. ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS There were no payments made to any citizens group, public relations counsel, political party, candidate for public office or holder of public office, or any committee or agent therefor by the system companies during the year 2000. Political contributions made by Dominion and its subsidiary companies, before becoming subject to the 1935 Act on January 28, 2000 are not disclosed. ITEM 8. SERVICES, SALES AND CONSTRUCTION CONTRACTS Part I. Contracts for services or goods between system companies:
Date of Contract Transaction (Note 1) Serving Company Receiving Company Compensation (Note 2) - -------------------- --------------------- ----------------------- ------------ ---------------- Management Services..... Dominion Transmission East Ohio Gas $1,847,243 January 28, 2000 Management Services..... Dominion Transmission Peoples Natural Gas $1,324,300 January 28, 2000 Management Services..... Dominion Transmission Hope Gas $ 811,796 January 28, 2000 Management Services..... Dominion Transmission Dominion Field Services $ 547,783 May 22, 1991 Management Services..... Dominion Transmission Virginia Natural Gas $ 307,963 (Note 3) Aircraft Services....... Dominion Transmission Virginia Natural Gas $ 18,133 (Note 3,4)
22 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Date of Contract Transaction (Note 1) Serving Company Receiving Company Compensation (Note 2) - -------------------- --------------- ----------------- ------------ ---------------- Management Services..... Dominion Energy Morgantown Energy $ 541,980 September 15, 1989 Services Associates Company, Inc. Management Services..... Great Lakes Dominion Midwest $ 7,973,181 July 1, 1995 Compression, Energy, Inc. Inc. Management Services..... Dominion Dominion Appalachian $ 2,403,914 October 1, 1995 Appalachian Development Properties Development, LLC Inc. Nuclear Fuel Procurement............ Virginia Power VP Fuel, Corporation $68,661,283 June 30, 1995 Telecommunications Services............... Virginia Power Dominion Telecom, $ 1,315,245 September 2, 1997 formerly VPS Communications, Inc. Nuclear Management & Operations............. Virginia Power VP Services, Inc. (VPNS) $ 1,429,608 September 3, 1997, as amended on October 30, 1998 Administrative Services............... Virginia Power VP Services, Inc. (VPEM) $ 3,028,201 September 3, 1997, as amended on October 30, 1998 Administrative Services............... Virginia Power VP Services, Inc. (VPE) $ 137,772 September 3, 1997, as amended on October 30, 1998 Fuel & Risk Management Services............... VPSE Virginia Power $ 6,201,211 October 30, 1998 Fuel & Risk Management Services............... VPEM VPSE $16,493,575 October 30, 1998
- ------- Notes: (1) Contracts for management services with aggregate consideration passing between the same companies of less than $100,000 have been omitted. (2) All contracts were in effect at December 31, 2000. (3) Virginia Natural Gas was sold by CNG on October 6, 2000. Approval of contracts was pending at time of service. (4) Aircraft services consisted of helicopters. Part II. Contracts to purchase services or goods between any system company and any affiliate (other than a system company) or any company in which any officer or director of the receiving company is a partner or owns 5 percent or more of any class of equity securities: None. Part III. Employment of any person by any system company for the performance on a continuing basis of management, supervisory or financial advisory services: None. 23 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES Part I. Information concerning the interests held by system companies in exempt wholesale generators or foreign utility companies: 1. Information concerning the interests held by system companies in exempt wholesale generators follows. Kincaid Generation, LLC (a) Dominion Kincaid, Inc. is a wholly owned subsidiary of Dominion Energy, Inc. (DEI) which holds a 99% interest in Kincaid Generation LLC (Kincaid). Kincaid is a 1,108 net megawatt coal-fired electric generating facility. The name and business address of Kincaid is as follows: Kincaid Generation, LLC PO Box 260 Kincaid, Illinois 62540-0260 (b) At December 31, 2000, DEI's and Dominion Kincaid's investment in Kincaid totaled $95,768,000 which includes intercompany loans/advances of $776,002. (c) Kincaid's debt to equity ratio and earnings as of December 31, 2000 was 2.11 ($252,456/119,547) and $22,019,046 respectively. (d) At December 31, 2000, services between Kincaid and a system company were as follows: Transaction: Management services Serving Company: Dominion Energy Services Company, Inc. Receiving Company: Kincaid Generation, LLC Compensation: $2,053,284 Date of Contract: February 27, 1998
Elwood Energy LLC (a) Dominion Elwood, Inc. is a wholly owned subsidiary of DEI which holds a 50% interest in Elwood Energy, LLC (Elwood). The purpose of the Company is to own and develop up to 2,500 megawatt combined cycle and single cycle electric power generating facility located near Elwood, Illinois. Elwood is also permitted to purchase and sell fuel, electricity and capacity, and to operate and manage the facility. The name and business address of Elwood is as follows: Elwood Energy, LLC 21100 Noel Road Elwood, Illinois 60421 (b) At December 31, 2000, DEI's investment in Elwood totaled $77,719,216, which includes an intercompany loans/advances of ($19,149,702). (c) At December 31, 2000, Elwood had no debt outstanding. Therefore no debt to equity ratio is presented. Elwood's earnings at December 31, 2000 were $25,003,193. (d) At December 31, 2000, services between Elwood and a system company were as follows: Transaction: Management services Serving Company: Dominion Elwood Services Company Receiving Company: Elwood Energy Compensation: $403,897 Date of Contract: June 18, 1999
24 Elwood Energy II LLC (a) Dominion Elwood II, Inc. is a wholly-owned subsidiary of Dominion Generation, Inc. which holds a 50% interest in Elwood Energy II, LLC (Elwood II), which holds a 100% interest in Elwood II Holdings, LLC. Elwood II is involved in the development of a 300-megawatt gas fired combustion turbine power plant in Elwood, Illinois. The name and business address of Elwood II is as follows: Elwood Energy II, LLC 24391 South Patterson Avenue Elwood, Illinois 60421 (b) At December 31, 2000, DEI's investment in Elwood II totaled $42,551,938 which represents intercompany loans/advances of $42,551,938. (c) Since the facility is currently in the construction stage, Elwood II had no earnings for the year ended December 31, 2000. Accordingly, there is no debt to equity ratio for Elwood II. (d) At December 31, 2000, there were no services, sales or construction contracts between Elwood II and any system company. Elwood Energy III, LLC (a) Dominion Elwood III, Inc. is a wholly-owned subsidiary of Dominion Generation, Inc. which holds a 50% interest in Elwood Energy III, LLC (Elwood III), which holds a 100% interest in Elwood III Holdings, LLC. Elwood III is involved in the development of a 450-megawatt gas fired combustion turbine power plant in Elwood, Illinois. The name and business address of Elwood is as follows: Elwood Energy III, LLC 24391 South Patterson Avenue Elwood, Illinois 60421 (b) At December 31, 2000 DEI's investment in Elwood III totaled $70,258,682 which includes intercompany loans/advances of $70,368,724. (c) Since the facility is currently in the construction stage, Elwood III had no earnings for the year ended December 31, 2000. Accordingly, there is no debt to equity ratio for Elwood III. (d) At December 31, 2000, there was no service, sales or construction contracts between Elwood III and any system company. Kauai Power Partners, L.P. (a) CNG International holds a 1% limited partnership interest in Kauai Power Partners, L.P. (KPP), and CNG Kauai, a subsidiary of CNG International, holds a 1% general partnership interest and a 98% limited partnership interest in KPP. KPP is involved in the greenfield development of a 26-megawatt advanced steam- injected combustion turbine power plant on the island of Kauai, Hawaii. The name and business address of KPP are as follows: Kauai Power Partners, L.P. Dominion Tower 625 Liberty Avenue Pittsburgh, PA 15222 25 (b) At December 31, 2000, CNG International's and CNG Kauai's investment in KPP totaled $2,501,000, which represents primarily costs incurred for the project prior to construction. (c) KPP has a capital structure consisting of equity contributed by its partners and has no debt. Accordingly, there is no meaningful debt to equity ratio for KPP. Since the facility is currently in the planning stage, KPP had no earnings for the year ended December 31, 2000. (d) At December 31, 2000, there were no service, sales or construction contracts between KPP and any system company. 2. Information concerning the interests held by system companies in a foreign utility company (FUCO) follows. Latin America Fund (a) CNG International holds a 16.5% limited partnership interest in The Latin America Energy and Electricity Fund I, L.P. (Latin America Fund), a Cayman Islands exempted limited partnership, and an 8.29% general partnership interest in FondElec General Partner, L.P. (FondElec). FondElec holds a 1% general partnership interest in the Latin America Fund. The Latin America Fund's business is limited to investing in FUCOs in Latin America. As part of the transaction, CNG International obtains an ownership interest, equal to its percentage ownership interest in the partnership, in each of the Latin America Fund's investments. The Latin America Fund had investments in two FUCOs as of December 31, 2000. The name and business address of the Latin America Fund are as follows: The Latin America Energy and Electricity Fund I, L.P. Stamford Harbor Park 333 Ludlow Street Stamford, CT 06902 (b) At December 31, 2000, CNG International's investment in the Latin America Fund totaled $8,129,000. CNG International's total commitment for investment in the Latin America Fund was originally $10,000,000. The investment program has been completed. There have been no transfers of assets from a CNG affiliate to any FUCO in which the Latin America Fund has an interest. (c) The Latin America Fund is an equity investment fund and as such has a capital structure consisting of equity funds contributed by its partners. Accordingly, there is no meaningful debt to equity ratio for the Latin America Fund. The Latin America Fund had net income of $214,051 for the year ended December 31, 2000. (d) There are no service, sales or construction contracts between the Latin America Fund, or any FUCOs in which the Latin America Fund has an interest, and a system company. Sodigas Pampeana, Sodigas Sur, and Buenos Aires Energy Company On October 12, 2000, CNG International completed the sale of CNG Cayman Three Ltd. and its subsidiary, CNG Argentina S.A., to Sempra Energy International. Included in the sale were CNG International's 21.55% ownership interest in each of two gas utility holding companies, Sodigas Pampeana and Sodigas Sur, and a 25% ownership interest in an electric utility holding company, Buenos Aires Energy Company (BAECO). The gas utility holding companies have ownership interests in two gas distribution companies, Camuzzi Gas Pampeana S.A. and Camuzzi Gas del Sur S.A., and BAECO has an ownership interest in an electric distribution company, Empresa Distribuidora de Energia Atlantica S.A. As a result of the sale, at December 31, 2000, CNG's only investment in FUCOs is the Latin American Fund, which is discussed above. 26 Corby Power Limited In September 2000, Dominion completed the sale of its 80% interest in Corby Power Limited (Corby) to PowerGen plc for 52.5 million pound sterling ($78 million at December 31, 2000). Corby is the owner of a 350-megawatt natural gas-fired facility located approximately 90 miles north of London, England. FUCO's held by Dominion Energy, Inc. DEI reached an agreement on August 1, 1999 to sell its interests in its foreign generation businesses which consists of approximately 1,200-megawatts of gross generation capacity located in Latin America. DEI completed the sale of its interests in Belize and Peru on November 1, 1999 and completed the sale of its interests in Argentina and Bolivia on March 31, 2000 and May 31, 2000, respectively. As of December 31, 2000, DEI held no investments in any FUCO's. Part II. Relationship of exempt wholesale generators and foreign utility companies to system companies, and financial data: An organization chart showing the relationship of the EWG's to other system companies is filed as Exhibit H-1 to H-3 to this Form U5S. An organization chart showing the relationship of the FUCO to other system companies is filed as Exhibit H-4 to this Form U5S. The financial statements of the EWG's is filed as Exhibit I-1 to I-3 to this Form U5S. Financial statements of the FUCO are filed as Exhibit I-4 to this Form U5S. Part III. Investment in exempt wholesale generators and foreign utility companies: At December 31, 2000, Dominion's aggregate investment in EWG's amounted to $288,798,836, or 5.7% of Dominion's aggregate capital investment in its domestic public utility subsidiaries at that date. Dominion's aggregate investment in FUCO's was $8,129,000 at December 31, 2000, or 0.2% of Dominion's aggregate capital investment in its domestic public utility subsidiaries. At December 31, 2000, CNG's aggregate investment in KPP amounted to $2,501,000, or 0.2% of CNG's aggregate capital investment in its domestic public utility subsidiaries at that date. CNG's aggregate investment in the Latin American Fund was $8,129,000 at December 31, 2000, or 0.7% of CNG's aggregate capital investment in its domestic public utility subsidiaries. ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS Financial statements as of and for the year ended December 31, 2000 Dominion Resources, Inc.: Consolidating Balance Sheet............................................... 31 Consolidating Income Statement............................................ 35 Consolidating Statement of Common Shareholders' Equity.................... 37 Consolidating Statement of Comprehensive Income........................... 39 Consolidating Statement of Cash Flows..................................... 41 Consolidated Natural Gas Company Reclassifying Balance Sheet............................................... 43 Reclassifying & Adjusting Income Statement................................ 45 Reclassifying & Adjusting Statement of Comprehensive Income............... 46 Reclassifying & Adjusting Statement of Cash Flows......................... 47 Consolidating Balance Sheet............................................... 48 Consolidating Income Statement Supplement................................. 52 Consolidating Statement of Retained Earnings.............................. 54 Consolidating Statement of Comprehensive Income........................... 56 Consolidating Statement of Cash Flows..................................... 58
27 Consolidating Balance Sheet Supplement.................................... 60 Consolidating Income Statement Supplement................................. 62 Consolidating Statement of Retained Earnings Supplement................... 63 Consolidating Statement of Comprehensive Income Supplement................ 64 Consolidating Statement of Cash Flows Supplement.......................... 65 Dominion Transmission, Inc. Consolidating Balance Sheet............................................... 66 Consolidating Income Statement............................................ 68 Consolidating Statement of Retained Earnings.............................. 69 Consolidating Statement of Comprehensive Income........................... 70 Consolidating Statement of Cash Flows..................................... 71 Dominion Exploration and Production, Inc. Consolidating Balance Sheet............................................... 72 Consolidating Income Statement............................................ 74 Consolidating Statement of Retained Earnings.............................. 75 Consolidating Statement of Comprehensive Income........................... 76 Consolidating Statement of Cash Flows..................................... 77 CNG Power Company Consolidating Balance Sheet............................................... 78 Consolidating Income Statement............................................ 80 Consolidating Statement of Retained Earnings.............................. 81 Consolidating Statement of Comprehensive Income........................... 82 Consolidating Statement of Cash Flows..................................... 83 CNG International Corporation Consolidating Balance Sheet............................................... 84 Consolidating Income Statement............................................ 86 Consolidating Statement of Retained Earnings.............................. 87 Consolidating Statement of Comprehensive Income........................... 88 Consolidating Statement of Cash Flows..................................... 89 CNG Cayman One Ltd. Consolidating Income Statement............................................ 90 Consolidating Statement of Retained Earnings.............................. 91 Consolidating Statement of Comprehensive Income........................... 92 Consolidating Statement of Cash Flows..................................... 93 CNG Cayman Three Ltd. Consolidating Income Statement............................................ 94 Consolidating Statement of Retained Earnings.............................. 95 Consolidating Statement of Comprehensive Income........................... 96 Consolidating Statement of Cash Flows..................................... 97 Dominion Products and Services, Inc. Consolidating Balance Sheet............................................... 98 Consolidating Income Statement............................................ 100 Consolidating Statement of Retained Earnings.............................. 101 Consolidating Statement of Comprehensive Income........................... 102 Consolidating Statement of Cash Flows..................................... 103 Dominion Capital, Inc. Consolidating Balance Sheet............................................... 104 Consolidating Income Statement............................................ 108 Consolidating Statement of Common Shareholders' Equity.................... 110 Consolidating Statement of Comprehensive Income........................... 112 Consolidating Statement of Cash Flows..................................... 114
28 Dominion Energy, Inc. Consolidating Balance Sheet............................................... 116 Consolidating Income Statement............................................ 118 Consolidating Statement of Common Shareholders' Equity.................... 119 Consolidating Statement of Comprehensive Income........................... 120 Consolidating Statement of Cash Flows..................................... 121 Dominion Energy, Inc.- Domestic Power Generation Consolidating Balance Sheet............................................... 122 Consolidating Income Statement............................................ 126 Consolidating Statement of Common Shareholders' Equity.................... 128 Consolidating Statement of Comprehensive Income........................... 130 Consolidating Statement of Cash Flows..................................... 132 Dominion Kincaid, Inc. Consolidating Balance Sheet............................................... 134 Consolidating Income Statement............................................ 136 Consolidating Statement of Common Shareholders' Equity.................... 137 Consolidating Statement of Comprehensive Income........................... 138 Consolidating Statement of Cash Flows..................................... 139 Dominion Energy, Inc.- Foreign Power Generation Consolidating Balance Sheet............................................... 140 Consolidating Income Statement............................................ 142 Consolidating Statement of Common Shareholders' Equity.................... 143 Consolidating Statement of Comprehensive Income........................... 144 Consolidating Statement of Cash Flows..................................... 145 Dominion Energy, Inc.- Oil and Gas Consolidating Balance Sheet............................................... 146 Consolidating Income Statement............................................ 148 Consolidating Statement of Common Shareholders' Equity.................... 149 Consolidating Statement of Comprehensive Income........................... 150 Consolidating Statement of Cash Flows..................................... 151 Dominion Reserves, Inc. Consolidating Balance Sheet............................................... 152 Consolidating Income Statement............................................ 156 Consolidating Statement of Common Shareholders' Equity.................... 158 Consolidating Statement of Comprehensive Income........................... 160 Consolidating Statement of Cash Flows..................................... 162 Dominion Gas Processing MI, Inc. Consolidating Balance Sheet............................................... 164 Consolidating Income Statement............................................ 166 Consolidating Statement of Common Shareholders' Equity.................... 167 Consolidating Statement of Comprehensive Income........................... 168 Consolidating Statement of Cash Flows..................................... 169 Dominion San Juan, Inc. Consolidating Balance Sheet............................................... 170 Consolidating Income Statement............................................ 172 Consolidating Statement of Common Shareholders' Equity.................... 173 Consolidating Statement of Comprehensive Income........................... 174 Consolidating Statement of Cash Flows..................................... 175
29 Dominion Energy Canada Limited Consolidating Balance Sheet............................................... 176 Consolidating Income Statement............................................ 178 Consolidating Statement of Common Shareholders' Equity.................... 179 Consolidating Statement of Comprehensive Income........................... 180 Consolidating Statement of Cash Flows..................................... 181 Virginia Electric and Power Company Consolidating Balance Sheet............................................... 182 Consolidating Income Statement............................................ 184 Consolidating Statement of Common Shareholders' Equity.................... 185 Consolidating Statement of Comprehensive Income........................... 186 Consolidating Statement of Cash Flows..................................... 187 Virginia Power Services, Inc. Consolidating Balance Sheet............................................... 188 Consolidating Income Statement............................................ 190 Consolidating Statement of Common Shareholders' Equity.................... 191 Consolidating Statement of Comprehensive Income........................... 192 Consolidating Statement of Cash Flows..................................... 193
The Notes to the Consolidated Financial Statements appearing on pages 41 to 69 of Dominion Resources, Inc.'s Form 10-K, filed with the Securities and Exchange Commission (SEC) on March 20, 2001, and on pages 43 to 67 of Virginia Electric and Power Company's Form 10-K, filed with the SEC on March 16, 2001, and on pages 39 to 73 of Consolidated Natural Gas Company's Form 10-K filed with the SEC on March 16, 2001 are incorporated herein by reference. 30 DOMINION RESOURCES, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Consolidating Virginia Dominion Dominion Entries and Power (Page CNG (Page Energy Consolidated Adjustments Dominion 182) 43) (Page 116) ------------ ------------- ----------- ----------- ---------- ---------- Current assets: Cash and cash equivalents............ $ 360,036 $ -- $ 50,922 $ 140,749 $ 57,549 $ 34,952 Accounts receivable: Customers (less allowance)............ 1,871,648 1,133,802 737,720 Other.................. 485,939 (166,519) 6,756 117,416 275,668 139,429 Inventories: Materials and supplies.............. 150,269 128,688 21,255 Fossil fuel............ 101,972 101,972 Gas stored--current portion............... 74,600 74,600 Investment securities-- trading................ 274,643 Mortgage loans held for sale................... 103,956 Commodity contract assets................. 1,057,628 1,046,569 11,059 Unrecovered gas costs... 263,418 263,418 Broker margin deposits.. 267,305 2,991 264,314 Prepayments............. 172,672 18,665 154,007 Net assets held for sale................... 72,854 15,696 57,158 Other................... 608,237 (7,363) 32,877 141,989 220,126 147,580 ----------- ----------- ----------- ----------- ---------- ---------- Total current assets... 5,865,177 (173,882) 106,251 2,832,841 2,125,815 333,020 ----------- ----------- ----------- ----------- ---------- ---------- Investments: Loans receivable, net... 675,600 Investments in affiliates............. 391,634 (8,104,992) 7,848,303 215,086 Available for sale securities............. 291,630 Nuclear decommissioning trust funds............ 851,453 851,453 Investment in real estate................. 64,924 Other................... 326,589 (9,712) 2,679 62,216 119,193 ----------- ----------- ----------- ----------- ---------- ---------- Total net investments.. 2,601,830 (8,114,704) 7,850,982 913,669 334,279 ----------- ----------- ----------- ----------- ---------- ---------- Property, plant and equipment: Property, plant and equipment.............. 28,011,326 (31,147) (120,554) 16,949,522 9,336,102 1,742,280 Less accumulated depreciation, depletion and amortization....... 13,162,051 (14,074) (8,644) 7,784,352 4,967,724 414,789 ----------- ----------- ----------- ----------- ---------- ---------- Property, plant and equipment, net........ 14,849,275 (17,073) (111,910) 9,165,170 4,368,378 1,327,491 ----------- ----------- ----------- ----------- ---------- ---------- Deferred charges and other assets: Goodwill, net........... 3,501,841 3,449,118 2,927 Regulatory assets, net.. 516,068 86,090 235,172 194,806 Prepaid pension costs... 1,454,427 1,005,277 14,733 434,417 Other, net.............. 559,303 179 3,433 169,274 188,476 46,087 ----------- ----------- ----------- ----------- ---------- ---------- Total deferred charges and other assets................ 6,031,639 179 4,543,918 419,179 817,699 49,014 ----------- ----------- ----------- ----------- ---------- ---------- Total Assets............ $29,347,921 $(8,305,480) $12,389,241 $13,330,859 $7,311,892 $2,043,804 =========== =========== =========== =========== ========== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 31 DOMINION RESOURCES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Dominion Dominion Resources U.K. Capital Resources Dominion Dominion Capital Holding, (Page 104) Services, Inc. Telecom, Inc. Generation, Inc. Trust I, Inc. Inc. ---------- -------------- ------------- ---------------- ------------- -------- Current assets: Cash and cash equivalents............ $ 43,197 $ 20,480 $ 11,111 $-- $ -- $1,076 Accounts receivable: Customers (less allowance)............ 126 Other.................. 6,239 102,140 3,193 1 1,616 Inventories: Materials and supplies.............. 326 Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ 274,643 Mortgage loans held for sale................... 103,956 Commodity contract assets................. Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... 62,060 9,115 222 1,631 ---------- -------- -------- ---- -------- ------ Total current assets... 490,095 131,735 14,978 1 1,631 2,692 ---------- -------- -------- ---- -------- ------ Investments: Loans receivable, net... 675,600 Investments in affiliates............. 175,505 257,732 Available for sale securities............. 291,630 Nuclear decommissioning trust funds............ Investment in real estate................. 64,924 Other................... 145,274 6,739 200 ---------- -------- -------- ---- -------- ------ Total net investments.. 1,352,933 6,739 200 257,732 ---------- -------- -------- ---- -------- ------ Property, plant and equipment: Property, plant and equipment.............. 35,296 2,131 97,662 34 Less accumulated depreciation, depletion and amortization....... 16,298 1,596 10 ---------- -------- -------- ---- -------- ------ Property, plant and equipment, net........ 18,998 2,131 96,066 24 ---------- -------- -------- ---- -------- ------ Deferred charges and other assets: Goodwill, net........... 49,796 Regulatory assets, net.. Prepaid pension costs... Other, net.............. 123,871 17,385 10,598 ---------- -------- -------- ---- -------- ------ Total deferred charges and other assets...... 173,667 17,385 10,598 ---------- -------- -------- ---- -------- ------ Total Assets............ $2,035,693 $157,990 $121,842 $ 25 $259,363 $2,692 ========== ======== ======== ==== ======== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 32 DOMINION RESOURCES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Consolidating Virginia Dominion Dominion Entries and Power (Page CNG (Page Energy Consolidated Adjustments Dominion 183) 44) (Page 117) ------------ ------------- ----------- ----------- ---------- ---------- Current liabilities: Securities due within one year............... $ 336,479 $ -- $ -- $ 240,650 $ -- $ 6,330 Short-term debt......... 3,236,817 1,305,330 713,810 1,215,175 2,502 Accounts payable, trade.................. 1,735,910 (190,139) 6,205 1,004,175 766,244 65,333 Accrued interest........ 194,568 (7,363) 63,117 93,851 23,594 4,625 Accrued payroll......... 127,327 88,308 7,095 Accrued taxes........... 316,889 70,507 60,219 178,224 1,227 Commodity contract liabilities............ 1,020,463 993,352 26,866 245 Other................... 623,345 22,082 26,884 155,169 337,100 65,934 ----------- ----------- ----------- ----------- ---------- ---------- Total current liabilities........... 7,591,799 (175,420) 1,472,043 3,349,534 2,554,298 146,196 ----------- ----------- ----------- ----------- ---------- ---------- Long term debt.......... 10,101,281 (1,208,692) 3,420,230 3,561,674 1,721,329 1,157,754 ----------- ----------- ----------- ----------- ---------- ---------- Deferred credits and other liabilities: Deferred income taxes... 2,820,648 345,394 1,494,188 788,462 158,296 Deferred investment tax credits................ 147,156 129,580 17,576 Other................... 799,873 (25,068) 159,310 302,849 264,675 30,164 ----------- ----------- ----------- ----------- ---------- ---------- Total deferred credits and other liabilities........... 3,767,677 (25,068) 504,704 1,926,617 1,070,713 188,460 ----------- ----------- ----------- ----------- ---------- ---------- Total Liabilities....... 21,460,756 (1,409,180) 5,396,977 8,837,825 5,346,340 1,492,410 ----------- ----------- ----------- ----------- ---------- ---------- Minority interest....... 884 884 Obligated mandatorily redeemable preferred securities of subsidiary trusts...... 385,000 135,000 Preferred stock no subject to mandatory redemption............. 509,014 509,014 Common shareholders' equity: Common Stock............ 5,978,436 (4,580,237) 5,978,435 2,737,407 1,815,695 208 Other paid in capital... 16,422 (1,373,000) 16,422 16,274 40,280 572,115 Accumulated other comprehensive income... (30,882) 33,928 (30,883) (1,471) 295 Retained earnings....... 1,028,290 (976,991) 1,028,290 1,095,339 111,048 (22,108) ----------- ----------- ----------- ----------- ---------- ---------- Total common shareholders' equity.. 6,992,267 (6,896,300) 6,992,264 3,849,020 1,965,552 550,510 ----------- ----------- ----------- ----------- ---------- ---------- Total Liabilities and shareholders' equity... $29,347,921 $(8,305,480) $12,389,241 $13,330,859 $7,311,892 $2,043,804 =========== =========== =========== =========== ========== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 33 DOMINION RESOURCES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Dominion Dominion Resources U.K. Capital Resources Dominion Dominion Capital Holding, (Page 105) Services, Inc. Telecom, Inc. Generation, Inc. Trust I, Inc. Inc. ---------- -------------- ------------- ---------------- ------------- -------- Current liabilities: Securities due within one year............... $ 89,499 $ -- $ -- $ -- $ -- $ -- Short-term debt......... Accounts payable, trade.................. 9,660 46,295 27,793 345 Accrued interest........ 15,113 1,631 Accrued payroll......... 3,158 28,766 Accrued taxes........... 2,270 82 4,360 Commodity contract liabilities............ Other................... 4,652 9,431 1,550 543 ---------- -------- -------- ----- -------- -------- Total current liabilities........... 124,352 84,492 29,343 427 1,631 4,903 ---------- -------- -------- ----- -------- -------- Long term debt.......... 1,353,801 40,999 54,186 ---------- -------- -------- ----- -------- -------- Deferred credits and other liabilities: Deferred income taxes... 34,306 2 Deferred investment tax credits................ Other................... 627 56,816 10,500 ---------- -------- -------- ----- -------- -------- Total deferred credits and other liabilities........... 34,933 56,816 10,500 2 ---------- -------- -------- ----- -------- -------- Total Liabilities....... 1,513,086 182,307 94,029 429 1,631 4,903 ---------- -------- -------- ----- -------- -------- Minority interest....... Obligated mandatorily redeemable preferred securities of subsidiary trusts...... 250,000 Preferred stock no subject to mandatory redemption............. Common shareholders' equity: Common Stock............ 8 1 19,187 7,732 Other paid in capital... 693,841 10,972 39,518 Accumulated other comprehensive income... (8,597) (24,318) 164 Retained earnings....... (162,645) 0 (2,346) (404) (41,893) ---------- -------- -------- ----- -------- -------- Total common shareholders' equity.. 522,607 (24,317) 27,813 (404) 7,732 (2,211) ---------- -------- -------- ----- -------- -------- Total Liabilities and shareholders' equity... $2,035,693 $157,990 $121,842 $ 25 $259,363 $ 2,692 ========== ======== ======== ===== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 34 DOMINION RESOURCES, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Consolidating Dominion Dominion Entries and Virginia Power CNG Energy Consolidated Adjustments Dominion (Page 184) (Page 45) (Page 118) ------------ ------------- -------- -------------- --------- ---------- Operating Revenue: Regulated sales........ Electric............... $4,492,022 $ -- $ -- $4,492,022 $ -- $ -- Gas.................... 1,374,092 (113,286) 1,487,378 Nonregulated sales..... Electric............... 96,739 (3) 96,742 Gas.................... 592,790 (13,502) 582,284 24,008 Gas transportation and storage............... 486,427 (393) (2,116) 488,936 Oil and gas production............ 855,850 48,272 485,219 322,359 Other.................. 1,361,819 (903,996) 613,097 298,671 583,392 69,256 ---------- --------- -------- ---------- --------- ------- Total................. 9,259,739 (917,894) 545,967 4,790,693 3,627,209 512,365 ---------- --------- -------- ---------- --------- ------- Expenses: Fuel, net.............. 1,106,165 1,103,577 2,588 Purchased power capacity, net......... 740,108 740,108 Purchased gas, net..... 1,452,875 (20,404) (58,644) 1,531,923 Liquids, capacity and other products purchased............. 299,866 (3,063) 302,929 Restructuring and other acquisition related costs................. 459,266 (48,439) 71,226 260,976 567 Other operation and maintenance........... 2,011,718 (279,272) 16,746 956,720 539,327 218,083 Depreciation, depletion and amortization...... 1,176,215 47,283 557,513 413,899 121,820 Other taxes............ 485,339 (4,523) 275,194 184,011 19,678 ---------- --------- -------- ---------- --------- ------- Total.................. 7,731,552 (302,739) (47,577) 3,704,338 3,233,065 362,736 ---------- --------- -------- ---------- --------- ------- Income from Operations............ 1,528,187 (615,155) 593,544 1,086,355 394,144 149,629 Other Income........... 95,403 (56,839) 31,605 47,044 27,279 20,190 ---------- --------- -------- ---------- --------- ------- Income before interest and income taxes...... 1,623,590 (671,994) 625,149 1,133,399 421,423 169,819 ---------- --------- -------- ---------- --------- ------- Interest and related charges: Interest charges....... 957,784 (56,839) 308,861 285,118 150,572 72,641 Preferred dividends and distributions of subsidiary trusts..... 66,391 46,816 ---------- --------- -------- ---------- --------- ------- Total.................. 1,024,175 (56,839) 308,861 331,934 150,572 72,641 ---------- --------- -------- ---------- --------- ------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 599,415 (615,155) 316,288 801,465 270,851 97,178 Income taxes........... 182,188 (119,310) 279,683 113,584 10,353 Minority interests..... 2,386 2,127 ---------- --------- -------- ---------- --------- ------- Income before extraordinary item and cumulative effect of a change in accounting principle............. 414,841 (615,155) 435,598 521,782 157,267 84,698 Extraordinary item, net Cumulative effect of a change in accounting principle, net........ (21,351) (594) (20,757) ---------- --------- -------- ---------- --------- ------- Net Income............. $ 436,192 $(615,155) $436,192 $ 542,539 $ 157,267 $84,698 ========== ========= ======== ========== ========= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 35 DOMINION RESOURCES, INC. CONSOLIDATING INCOME STATEMENT--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Resources Dominion Dominion Resources Dominion Dominion Capital U.K. Capital Services, Telecom, Generation, Trust I, Holding, (Page 108) Inc. Inc. Inc. Inc. Inc. ---------- --------- -------- ----------- --------- -------- Operating Revenue: Regulated sales........ Electric............... Gas.................... Nonregulated sales..... Electric............... Gas.................... Gas transportation and storage............... Oil and gas production............ Other.................. $ 432,897 $265,234 $ 3,268 $ -- $ -- $ -- --------- -------- ------- ----- ------ ------- Total................. 432,897 265,234 3,268 --------- -------- ------- ----- ------ ------- Expenses: Fuel, net.............. Purchased power capacity, net......... Purchased gas, net..... Liquids, capacity and other products purchased............. Restructuring and other acquisition related costs................. 192,388 (17,452) Other operation and maintenance........... 298,282 256,614 4,410 150 658 Depreciation, depletion and amortization...... 33,712 442 8 1,538 Other taxes............ 5,082 5,836 61 --------- -------- ------- ----- ------ ------- Total.................. 529,464 262,450 4,913 158 (15,256) --------- -------- ------- ----- ------ ------- Income from Operations............ (96,567) 2,784 (1,645) (158) 15,256 Other Income........... (832) (52) 19,575 7,433 --------- -------- ------- ----- ------ ------- Income before interest and income taxes...... (96,567) 1,952 (1,697) (158) 19,575 22,689 --------- -------- ------- ----- ------ ------- Interest and related charges: Interest charges....... 192,178 1,952 895 2,406 Preferred dividends and distributions of subsidiary trusts..... 19,575 --------- -------- ------- ----- ------ ------- Total.................. 192,178 1,952 895 19,575 2,406 --------- -------- ------- ----- ------ ------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. (288,745) (2,592) (158) 20,283 Income taxes........... (100,198) (949) (55) (920) Minority interests..... 259 --------- -------- ------- ----- ------ ------- Income before extraordinary item and cumulative effect of a change in accounting principle............. (188,806) (1,643) (103) 21,203 Extraordinary item, net Cumulative effect of a change in accounting principle, net........ --------- -------- ------- ----- ------ ------- Net Income............. $(188,806) $ -- $(1,643) $(103) $ -- $21,203 ========= ======== ======= ===== ====== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 36 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Consolidating Virginia Dominion Dominion Entries and Power Energy Consolidated Adjustments Dominion (Page 185) CNG (Page 119) ------------ ------------- ----------- ---------- ---------- ---------- Balance at December 31, 1999................... $ 4,773,462 $(5,099,978) $ 4,757,827 $3,742,352 $ -- $ 634,406 ----------- ----------- ----------- ---------- ---------- --------- Issuance of stock--CNG acquisition........... 3,527,000 3,527,000 Issuance of stock through public offering.............. 354,000 354,000 Issuance of stock through employee, executive loan and direct stock purchase plans................. 195,000 195,000 Stock repurchase and retirement............ (1,641,000) (1,641,000) Premium income equity securities............ (21,000) (21,000) Other common stock activity.............. 3,288 (1,834,882) 3,287 1,815,695 Comprehensive income... 420,236 (596,153) 420,236 542,539 155,796 81,808 Dividends and other adjustments........... (618,719) 634,713 (603,086) (435,871) (5,939) (165,704) ----------- ----------- ----------- ---------- ---------- --------- Balance at December 31, 2000................... $ 6,992,267 $(6,896,300) $ 6,992,264 $3,849,020 $1,965,552 $ 550,510 =========== =========== =========== ========== ========== =========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 37 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Resources Dominion Dominion Resources Dominion Dominion Capital U.K. Capital Services, Telecom, Generation, Trust I, Holding, (Page 110) Inc. Inc. Inc. Inc. Inc. ---------- --------- -------- ----------- --------- -------- Balance at December 31, 1999................... $740,912 $ -- $ -- $(301) $7,732 $(9,488) -------- -------- ------- ----- ------ ------- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 1 19,187 Comprehensive income... (182,247) (24,318) (1,643) (103) 24,322 Dividends and other adjustments........... (36,058) 10,269 (17,045) -------- -------- ------- ----- ------ ------- Balance at December 31, 2000................... $522,607 $(24,317) $27,813 $(404) $7,732 $(2,211) ======== ======== ======= ===== ====== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 38 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Consolidating Dominion Entries and Virginia Power CNG Dominion Energy Consolidated Adjustments Dominion (Page 186) (Page 46) (Page 120) ------------ ------------- -------- -------------- --------- --------------- Net Income.............. $436,192 $(615,155) $436,192 $542,539 $157,267 $84,698 -------- --------- -------- -------- -------- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ 6,558 (6,558) 6,558 Less: reclassification adjustment for gains (losses) realized in net income............ -------- --------- -------- -------- -------- ------- Unrealized gains (losses) on investment securities............ 6,558 (6,558) 6,558 Foreign currency translation adjustment............ 1,804 (229) 1,804 (2,890) Minimum pension liability adjustment.. (24,318) 25,789 (24,318) (1,471) -------- --------- -------- -------- -------- ------- Other comprehensive income (Loss).......... (15,956) 19,002 (15,956) (1,471) (2,890) -------- --------- -------- -------- -------- ------- Comprehensive Income.... $420,236 $(596,153) $420,236 $542,539 $155,796 $81,808 ======== ========= ======== ======== ======== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 39 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Capital Resources Dominion Dominion Resources Capital Dominion U.K. (Page 112) Services, Inc. Telecom, Inc. Generation, Inc. Trust I, Inc. Holding, Inc. ---------- -------------- ------------- ---------------- ----------------- ------------- Net Income.............. $(188,806) $ -- $(1,643) $(103) $ -- $21,203 --------- -------- ------- ----- ----- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ 6,558 Less: reclassification adjustment for gains (losses) realized in net income............ --------- -------- ------- ----- ----- ------- Unrealized gains (losses) on investment securities............ 6,558 Foreign currency translation adjustment............ 3,119 Minimum pension liability adjustment.. (24,318) --------- -------- ------- ----- ----- ------- Other comprehensive income (Loss).......... 6,558 (24,318) 3,119 --------- -------- ------- ----- ----- ------- Comprehensive Income.... $(182,248) $(24,318) $(1,643) $(103) $ -- $24,322 ========= ======== ======= ===== ===== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 40 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Consolidating Virginia Dominion Entries and Power CNG Consolidated Adjustments Dominion (Page 187) (Page 47) ------------ ------------- ---------- ---------- --------- Cash flows from (used in) operating activities: Net income............. $ 436,192 $(615,155) $ 436,192 $ 542,539 $157,267 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. (20,757) (20,757) Restructuring and other acquisition related costs................. 124,075 (67,363) 57,679 133,759 DCI impairment losses.. 292,171 Extraordinary item, net................... Impairment of regulatory assets & other assets.......... (152,340) 152,340 Gains on sales of subsidiaries.......... (22,511) 163,317 (168,444) Depreciation and amortization.......... 1,267,697 58,385 637,087 413,902 Deferred income taxes.. 21,597 24,257 27,198 17,174 Deferred fuel expense.. (32,578) (32,578) Changes in current assets and liabilities: Accounts receivable.... (841,857) 134,800 29,535 (524,061) (337,077) Inventories............ (61,999) 3,502 (70,506) Unrecovered gas costs.. (216,998) (216,998) Purchase and origination of mortgages............. (4,280,698) Proceeds from sale and principal collections of mortgages.......... 4,295,336 Accounts payable, trade................. 673,579 (150,221) (2,416) 488,472 361,607 Accrued interest and taxes................. 139,016 112,159 4,913 34,345 Commodity contract assets and liabilities........... (32,447) (32,447) Net assets held for sale.................. (23,800) (35,784) 11,984 Other.................. (372,022) 15,276 (483) (81,802) (332,620) ---------- --------- ---------- --------- -------- Net cash flows from operating activities... 1,343,996 (615,300) 565,459 1,069,745 156,733 ---------- --------- ---------- --------- -------- Cash flow from (used in) investing activities: Plant construction and other property additions............. (1,384,473) (734,485) (518,994) Acquisition of exploration and production assets..... (353,029) (214,700) Loan originations...... (2,910,737) Repayments of loan originations.......... 4,255,348 Sale of businesses..... 835,655 676,190 Sale of marketable securities............ 136,994 Purchase of debt securities............ (235,125) Acquisition of businesses............ (2,779,140) 90,400 (2,869,540) Other investments...... (140,339) 60,000 (48,600) (47,608) Other.................. (22,657) (113,350) 130,121 269 3,500 ---------- --------- ---------- --------- -------- Net cash flow used in investing activities... (2,597,503) 37,050 (2,788,019) (781,824) (54,004) ---------- --------- ---------- --------- -------- Cash flow from (used in) financing activities: Issuance of common stock................. 531,597 531,596 Repurchase of common stock................. (1,641,520) (1,641,520) Issuance (repayment) of short term debt....... 1,819,904 (611,150) 1,108,354 335,831 612,687 Issuance of long term debt.................. 8,108,034 2,862,500 250,000 Repayment of long term debt.................. (6,812,415) (375,500) (44,615) Common dividend payments.............. (615,194) 1,339,800 (615,054) (407,911) (657,140) Other.................. (56,533) (48,600) (11,337) (46,515) ---------- --------- ---------- --------- -------- Net cash flow from (used in) financing activities............. 1,333,873 680,050 2,245,876 (208,917) (135,583) ---------- --------- ---------- --------- -------- Increase (decrease) in cash and cash equivalents............ 80,366 101,800 23,316 79,004 (32,854) Cash and cash equivalents at beginning of the year.. 279,670 (101,800) 27,606 61,745 90,403 ---------- --------- ---------- --------- -------- Cash and cash equivalents at end of the year............... $ 360,036 $ -- $ 50,922 $ 140,749 $ 57,549 ========== ========= ========== ========= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 41 DOMINION RESOURCES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Dominion Resources Dominion Dominion Resources Dominion Energy Capital Services, Telecom, Generation, Capital UK (Page 121) (Page 114) Inc. Inc. Inc. Trust I, Inc. Holding ---------- ---------- --------- -------- ----------- ------------- -------- Cash flows from (used in) operating activities: Net income............. $ 84,698 $ (188,806) $ -- $(1,643) $(103) $-- $21,203 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. 292,171 Extraordinary item, net................... Impairment of regulatory assets & other assets.......... Gains on sales of subsidiaries.......... 68 (17,452) Depreciation and amortization.......... 121,821 35,005 442 8 1,047 Deferred income taxes.. 19,362 (64,600) (1,759) (36) Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (56,210) 9,217 (102,139) 479 3,390 Inventories............ 4,778 227 Unrecovered gas costs.. Purchase and origination of mortgages............. (4,280,698) Proceeds from sale and principal collections of mortgages.......... 4,295,336 Accounts payable, trade................. (67,016) (1,641) 46,296 9,344 (10,686) Accrued interest and taxes................. (234) (11,426) (45) (741) Commodity contract assets and liabilities........... Net assets held for sale.................. Other.................. (9,744) 563 45,952 683 95 (9,847) -------- ---------- -------- ------- ----- ---- ------- Net cash flows from operating activities... 97,523 85,121 (11,650) 9,451 (13,086) -------- ---------- -------- ------- ----- ---- ------- Cash flow from (used in) investing activities: Plant construction and other property additions............. (64,966) (2,131) (63,897) Acquisition of exploration and production assets..... (138,329) Loan originations...... (2,910,737) Repayments of loan originations.......... 4,255,348 Sale of businesses..... 83,554 75,911 Sale of marketable securities............ 136,994 Purchase of debt securities............ (235,125) Acquisition of businesses............ Other investments...... 12,527 (116,658) Other.................. (9,841) (36,319) (6,739) 9,702 -------- ---------- -------- ------- ----- ---- ------- Net cash flow used in investing activities... (117,055) 1,093,503 (8,870) (63,897) 85,613 -------- ---------- -------- ------- ----- ---- ------- Cash flow from (used in) financing activities: Issuance of common stock................. 1 Repurchase of common stock................. Issuance (repayment) of short term debt....... 399,191 (120,194) 40,999 54,186 Issuance of long term debt.................. 4,995,534 Repayment of long term debt.................. (243,776) (6,099,621) (48,903) Common dividend payments.............. (163,863) (36,737) (74,289) Other.................. 1,377 680 47,862 -------- ---------- -------- ------- ----- ---- ------- Net cash flow from (used in) financing activities............. (7,071) (1,260,338) 41,000 54,186 (75,330) -------- ---------- -------- ------- ----- ---- ------- Increase (decrease) in cash and cash equivalents............ (26,603) (81,714) 20,480 (260) (2,803) Cash and cash equivalents at beginning of the year.. 61,555 124,911 11,371 3,879 -------- ---------- -------- ------- ----- ---- ------- Cash and cash equivalents at end of the year............... $ 34,952 $ 43,197 $ 20,480 $11,111 $ -- $-- $ 1,076 ======== ========== ======== ======= ===== ==== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 42 CONSOLIDATED NATURAL GAS COMPANY RECLASSIFYING BALANCE SHEET At December 31, 2000 (Thousands)
Consolidated Natural Gas Reclassification Company (As Adjustments to Consolidated with Conform to Dominion Dominion CNG and Resources, Inc.) Resources, Inc. Subsidiaries (Page 31) Presentation (Page 48) ----------------- ---------------- ------------ ASSETS Current Assets Cash and cash equivalents..... $ 57,549 $ 1 $ 57,548 Accounts receivable: Customers, less allowance.... 737,720 (2,684) 740,404 Other........................ 275,668 22,852 252,816 Receivables from affiliated companies.................... (20,165) 20,165 Inventories: Gas stored--current portion.. 74,600 (1) 74,601 Materials and supplies....... 21,255 1 21,254 Unrecovered gas costs......... 263,418 263,418 Deferred income taxes--current (net)........................ Broker margin deposits........ 264,314 264,314 Prepayments................... 154,007 154,007 Other......................... 220,126 220,126 Net assets held for sale...... 57,158 57,158 ---------- -------- ---------- Total current assets........ 2,125,815 4 2,125,811 ---------- -------- ---------- Investments Stocks of subsidiary companies, at equity-- consolidated................. Notes of subsidiary companies--consolidated...... Other......................... (79,851) 79,851 ---------- -------- ---------- Total investments........... (79,851) 79,851 ---------- -------- ---------- Property, Plant and Equipment Property, plant and equipment.................... 9,336,102 1 9,336,101 Less accumulated depreciation and amortization............. 4,967,724 2 4,967,722 ---------- -------- ---------- Net property, plant and equipment.................. 4,368,378 (1) 4,368,379 ---------- -------- ---------- Deferred Charges and Other Assets Regulatory assets............. 194,806 (969) 195,775 Prepaid pension cost.......... 434,417 (1) 434,418 Other......................... 188,476 79,850 108,626 ---------- -------- ---------- Total deferred charges and other assets............... 817,699 78,880 738,819 ---------- -------- ---------- Total assets................ $7,311,892 $ (968) $7,312,860 ========== ======== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 43 CONSOLIDATED NATURAL GAS COMPANY RECLASSIFYING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Consolidated Natural Reclassification Gas Company (As Adjustments to Consolidated with Conform to Dominion Dominion CNG and Resources, Inc.) Resources, Inc. Subsidiaries (Page 33) Presentation (Page 50) -------------------- ---------------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt............. $1,215,175 $ -- $1,215,175 Accounts payable, trade..... 766,244 29,950 736,294 Estimated rate contingencies and refunds................ (40,603) 40,603 Payables to affiliated companies.................. (29,948) 29,948 Customer deposits........... (7,101) 7,101 Accrued interest............ 23,594 23,594 Accrued payroll............. 7,095 7,095 Accrued taxes............... 178,224 (2) 178,226 Deferred income taxes-- current (net).............. (86,571) 86,571 Commodity contract liabilities................ 26,866 26,866 Other....................... 337,100 107,412 229,688 ---------- -------- ---------- Total current liabilities.............. 2,554,298 3 2,554,295 ---------- -------- ---------- Long-term Debt.............. Debentures and notes........ 1,721,329 1,721,329 Notes payable to Registrant--consolidated... ---------- -------- ---------- Total long-term debt...... 1,721,329 1,721,329 ---------- -------- ---------- Deferred Credits and Other Liabilities................ -- Deferred income taxes....... 788,462 788,462 Deferred investment tax credits.................... 17,576 17,576 Other....................... 264,675 (971) 265,646 ---------- -------- ---------- Total deferred credits and other liabilities........ 1,070,713 (971) 1,071,684 ---------- -------- ---------- Total liabilities......... 5,346,340 (968) 5,347,308 Commitments and Contingencies.............. Common Stockholder's Equity..................... Common stock................ 1,815,695 1,815,695 Other capital............... 40,280 40,280 Retained earnings........... 111,048 111,048 Accumulated other comprehensive income....... (1,471) (1,471) ---------- -------- ---------- Total common stockholder's equity................... 1,965,552 1,965,552 ---------- -------- ---------- Total liabilities and stockholder's equity..... $7,311,892 $ (968) $7,312,860 ========== ======== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 44 CONSOLIDATED NATURAL GAS COMPANY RECLASSIFYING & ADJUSTING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
To Adjust Consolidated Natural Reclassification for the Period Gas Company Adjustments to January 1, 2000 to (As Consolidated Conform to January 28, 2000 with Dominion Dominion (Date of Acquisition CNG and Resources, Inc.) Resources, Inc. by Dominion Subsidiaries (Page 35) Presentation Resources, Inc.) (Page 52) -------------------- ---------------- -------------------- ------------ Operating revenue and income: Regulated gas sales.... $1,487,378 $ 1 $(231,537) $1,718,914 Nonregulated gas sales................. 582,284 (54,083) (39,072) 675,439 Gas transportation and storage............... 488,936 (6,081) (55,897) 550,914 Oil and gas production............ 485,219 (6,995) (39,302) 531,516 Other.................. 583,392 84,130 (35,918) 535,180 ---------- --------- --------- ---------- Total................. 3,627,209 16,972 (401,726) 4,011,963 ---------- --------- --------- ---------- Expenses: Purchased gas.......... 1,531,923 (1) (172,916) 1,704,840 Liquids, capacity and other products purchased............. 302,929 455 (25,369) 327,843 Restructuring and other merger-related costs.. 260,976 (9,294) 270,270 Operation and maintenance........... 539,327 675 (47,634) 586,286 Depreciation and amortization.......... 413,899 (2) (28,557) 442,458 Other taxes............ 184,011 1 (19,389) 203,399 ---------- --------- --------- ---------- Total................. 3,233,065 1,128 (303,159) 3,535,096 ---------- --------- --------- ---------- Income from operations.. 394,144 15,844 (98,567) 476,867 ---------- --------- --------- ---------- Other income and expense: Gain on sale of Virginia Natural Gas.. (163,317) 163,317 Loss on net assets held for sale.............. 152,340 (152,340) Equity in earnings of subsidiary companies-- consolidated.......... Interest revenue from affiliated companies-- consolidated.......... (20) 20 Other.................. 27,279 (4,851) (1,809) 33,939 ---------- --------- --------- ---------- Total other income and expense.............. 27,279 (15,848) (1,809) 44,936 ---------- --------- --------- ---------- Income before interest and income taxes....... 421,423 (4) (100,376) 521,803 Interest charges........ 150,572 120 (10,965) 161,417 ---------- --------- --------- ---------- Income before income taxes.................. 270,851 (124) (89,411) 360,386 Income tax expense...... 113,584 (124) (33,404) 147,112 ---------- --------- --------- ---------- Income before cumulative effect of a change in accounting principle... 157,267 (56,007) 213,274 Cumulative effect of a change in accounting principle (net of income taxes).......... 30,728 (30,728) ---------- --------- --------- ---------- Net income.............. $ 157,267 $ -- $ (86,735) $ 244,002 ========== ========= ========= ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 45 CONSOLIDATED NATURAL GAS COMPANY RECLASSIFYING & ADJUSTING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Consolidated To Adjust for the Natural Gas period Company (As January 1, 2000 to Consolidated with January 28, 2000 Dominion (date of acquisition CNG and Resources, Inc.) by Dominion Subsidiaries (Page 39) Resources, Inc.) (Page 56) ----------------- -------------------- ------------ Net income................. $157,267 $(86,735) $244,002 Other comprehensive income, net of tax: Foreign currency translation adjustment.. 1,077 (1,077) Less: reclassification adjustment for losses realized in net income.. (3,637) 3,637 -------- -------- -------- Total foreign currency translation adjustment............ (2,560) 2,560 Minimum pension liability adjustment.............. (1,471) (1,281) (190) -------- -------- -------- Other comprehensive income (loss)......... (1,471) (3,841) 2,370 -------- -------- -------- Comprehensive income....... $155,796 $(90,576) $246,372 ======== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 46 CONSOLIDATED NATURAL GAS COMPANY RECLASSIFYING & ADJUSTING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Consolidated To Adjust Natural Reclassification for the Period Gas Company Adjustments to January 1, 2000 to Consolidated Natural (As Consolidated Conform to January 28, 2000 Gas Company per with Dominion Dominion (Date of Acquisition Consolidated Natural Resources, Resources, Inc. by Dominion Gas Company Inc.)(Page 41) Presentation Resources, Inc.) Form 10-K(Page 58) ---------------- ---------------- -------------------- -------------------- Cash flows from (used in) operating activities: Net income............. $ 157,267 $ -- $ (86,735) $ 244,002 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. 30,728 (30,728) Restructuring and other acquisition related costs................. 133,759 (9,294) 143,053 Loss on net assets held for sale.............. 152,340 152,340 Sale of Virginia Natural Gas........... 168,444 (168,444) DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... (168,444) (168,444) Depreciation and amortization.......... 413,902 1 (28,557) 442,458 Pension cost (credit)-- net................... 138,171 10,364 (148,535) Deferred income taxes.. 17,174 (12,298) 29,472 Investment tax credit.. 1,909 155 (2,064) Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (337,077) 36,762 (373,839) Inventories............ (70,506) (59,009) (11,497) Unrecovered gas costs.. (216,998) 8,346 (225,344) Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Broker margin deposits.............. 225,290 16,607 (241,897) Prepayments............ 42,586 (14,310) (28,276) Other current assets... 80,104 (14,789) (65,315) Accounts payable, trade................. 361,607 59,087 302,520 Estimated rate contingencies and refunds............... 3,749 2,152 (5,901) Accounts payable to customers............. (923) 1,882 (959) Accrued interest and taxes................. 34,345 (11,463) 45,808 Commodity contract assets and liabilities........... Other--net............. (31,624) (43,066) 74,690 Net assets held for sale.................. 11,984 4,825 7,159 Changes in other assets and liabilities....... (127,098) (2,638) 129,736 Other.................. (332,620) (332,165) 53 (508) --------- --------- --------- --------- Net cash flows from operating activities... 156,733 (111,198) 267,931 Cash flow from (used in) investing activities: Plant construction and other property additions............. (518,994) 24,189 (543,183) Acquisition of exploration and production assets..... (214,700) 3,257 (217,957) Loan originations...... Repayments of loan originations.......... Proceeds from sale of Virginia Natural Gas, net of cash sold...... (531,656) 531,656 Proceeds from sale of Argentine investments, net of cash sold...... (144,534) 144,534 Sale of businesses..... 676,190 676,190 Sale of marketable securities............ Purchase of debt securities............ Acquisition of businesses............ Other investments...... 5,541 1,647 (7,188) Other.................. 3,500 (5,541) (352) 9,393 --------- --------- --------- --------- Net cash flow used in investing activities... (54,004) 28,741 (82,745) Cash flow from (used in) financing activities: Issuance of common stock................. Repurchase of common stock................. Issuance (repayment) of short term debt....... 612,687 85,912 526,775 Issuance of long term debt.................. Repayment of long term debt.................. (44,615) (44,615) Common dividend payments.............. (657,140) 46,515 34 (703,689) Other.................. (46,515) (46,515) --------- --------- --------- --------- Net cash flow from (used in) financing activities............. (135,583) 85,946 (221,529) Increase (decrease) in cash and cash equivalents............ (32,854) 3,489 (36,343) Cash and cash equivalents at beginning of the year.. 90,403 (3,488) 93,891 --------- --------- --------- --------- Cash and cash equivalents at end of the year............... $ 57,549 $ -- $ 1 $ 57,548 ========= ========= ========= =========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 47 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
Eliminations Dominion CNG and and Combined Transmission Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 66) East Ohio ------------ ------------ ----------- ---------- ---------- ------------ ---------- ASSETS Current Assets Cash and cash equivalents............ $ 57,548 $ (203) $ 57,751 $ 7 $ 1,599 $ 641 $ 41,097 Accounts receivable: Customers, less allowance............. 740,404 740,404 64,698 504,004 Other.................. 252,816 252,816 4,786 1,335 (1,233) 3,648 Receivables from affiliated companies... 20,165 (2,426,697) 2,446,862 993,930 1,161,869 48,889 2,015 Inventories: Gas stored--current portion............... 74,601 (2,045) 76,646 29,000 Materials and supplies.............. 21,254 21,254 10,719 3,990 Unrecovered gas costs... 263,418 263,418 121,068 65,873 Deferred income taxes-- current (net).......... (82) 82 Broker margin deposits.. 264,314 264,314 Prepayments............. 154,007 (3) 154,010 14,657 1,916 13,892 94,569 Other................... 220,126 6 220,120 62,023 (397) 69,882 (575) Net assets held for sale................... 57,158 57,158 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total current assets... 2,125,811 (2,371,866) 4,497,677 1,075,403 1,166,322 328,556 743,621 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Investments Stocks of subsidiary companies, at equity-- consolidated........... (2,460,646) 2,460,646 2,460,646 Notes of subsidiary companies-- consolidated........... (1,324,182) 1,324,182 1,324,182 Other................... 79,851 (66,848) 146,699 28,723 758 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total investments...... 79,851 (3,851,676) 3,931,527 3,784,828 28,723 758 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Property, Plant and Equipment Property, plant and equipment.............. 9,336,101 (3,044) 9,339,145 40,116 2,188,544 1,613,528 Less accumulated depreciation and amortization........... 4,967,722 (28,335) 4,996,057 24,943 1,159,675 690,674 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Net property, plant and equipment............. 4,368,379 25,291 4,343,088 15,173 1,028,869 922,854 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Deferred Charges and Other Assets Regulatory assets....... 195,775 (46,418) 242,193 16,799 62,614 Prepaid pension cost.... 434,418 (29,048) 463,466 28,658 113,637 207,276 Other................... 108,626 (2,729) 111,355 55,782 4,723 10,108 (597) ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total deferred charges and other assets...... 738,819 (78,195) 817,014 55,782 33,381 140,544 269,293 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total assets........... $7,312,860 $(6,276,446) $13,589,306 $4,916,013 $1,214,876 $1,526,692 $1,936,526 ========== =========== =========== ========== ========== ========== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 48 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Dominion Dominion Other Dominion Dominion E&P Field Dominion CNG Power CNGI Subsidiaries Peoples Hope (Page 72) Services Retail (Page 78) (Page 84) (Page 60) -------- -------- ---------- -------- -------- --------- --------- ------------ ASSETS Current Assets Cash and cash equivalents............ $ 3,844 $ 4,701 $ 5,382 $ 23 $ 176 $ 3 $ 203 $ 75 Accounts receivable: Customers, less allowance............. 95,374 52,797 4,865 3,818 13,709 1,139 Other.................. 6,455 (4,946) 166,290 76,366 57 58 Receivables from affiliated companies... 4,783 1,834 12,167 40,608 22,710 9,133 138,161 10,763 Inventories: Gas stored--current portion............... 6,456 7,718 1,382 32,090 Materials and supplies.............. 2,011 530 3,980 24 Unrecovered gas costs... 76,477 Deferred income taxes-- current (net).......... 82 Broker margin deposits.. 179,119 85,195 Prepayments............. 7,021 2,425 1,865 17,638 6 1 3 17 Other................... 17,153 (1,259) 21,331 39,842 12,045 2 (6) 79 Net assets held for sale................... -------- -------- ---------- -------- ------- ------- -------- ------- Total current assets... 219,574 63,800 395,081 264,896 80,793 9,139 138,361 12,131 -------- -------- ---------- -------- ------- ------- -------- ------- Investments Stocks of subsidiary companies, at equity-- consolidated........... Notes of subsidiary companies-- consolidated........... Other................... 1,125 1 66,848 49,244 -------- -------- ---------- -------- ------- ------- -------- ------- Total investments...... 1,125 1 66,848 49,244 -------- -------- ---------- -------- ------- ------- -------- ------- Property, Plant and Equipment Property, plant and equipment.............. 695,289 199,227 4,556,708 30,515 8,557 5,845 816 Less accumulated depreciation and amortization........... 240,511 79,452 2,790,598 1,665 4,911 3,012 616 -------- -------- ---------- -------- ------- ------- -------- ------- Net property, plant and equipment............. 454,778 119,775 1,766,110 28,850 3,646 2,833 200 -------- -------- ---------- -------- ------- ------- -------- ------- Deferred Charges and Other Assets Regulatory assets....... 150,096 12,684 Prepaid pension cost.... 92,612 21,023 260 Other................... 7,215 328 18,938 7,911 2,946 64 3,937 -------- -------- ---------- -------- ------- ------- -------- ------- Total deferred charges and other assets...... 249,923 34,035 18,938 7,911 3,206 64 3,937 -------- -------- ---------- -------- ------- ------- -------- ------- Total assets........... $924,275 $218,735 $2,180,129 $301,657 $87,645 $11,973 $205,473 $65,312 ======== ======== ========== ======== ======= ======= ======== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 49 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Eliminations Dominion CNG and and Combined Transmission Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 67) East Ohio ------------ ------------ ----------- ---------- ---------- ------------ ---------- LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $1,215,175 $ -- $ 1,215,175 $1,215,175 $ -- $ -- $ -- Accounts payable, trade.................. 736,294 (47) 736,341 1,587 7,452 24,172 236,181 Estimated rate contingencies and refunds................ 40,603 40,603 39,736 49 Payables to affiliated companies.............. 29,948 (2,426,697) 2,456,645 3,781 1,145,377 41,897 512,821 Customer deposits....... 7,101 7,101 113 4,420 Accrued interest........ 23,594 23,594 22,997 485 Accrued payroll......... 7,095 7,095 1,898 3,556 Accrued taxes........... 178,226 (1,103) 179,329 17,789 385 38,569 126,323 Deferred income taxes-- current (net).......... 86,571 (82) 86,653 32,211 22,590 Other................... 229,688 (2,632) 232,320 399 9,685 27,139 22,376 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total current liabilities........... 2,554,295 (2,430,561) 4,984,856 1,261,728 1,162,899 205,735 928,801 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Long-term Debt Debentures and notes.... 1,721,329 1,721,329 1,721,329 Notes payable to Registrant-- consolidated........... (1,324,182) 1,324,182 331,599 295,819 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total long-term debt... 1,721,329 (1,324,182) 3,045,511 1,721,329 331,599 295,819 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Deferred Credits and Other Liabilities Deferred income taxes... 788,462 5,466 782,996 (7,354) 1,339 167,014 191,554 Deferred investment tax credits................ 17,576 17,576 8,298 Other................... 265,646 (80,187) 345,833 14,958 51,132 30,185 75,944 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total deferred credits and other liabilities........... 1,071,684 (74,721) 1,146,405 7,604 52,471 197,199 275,796 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total liabilities...... 5,347,308 Commitments and Contingencies Common Stockholder's Equity Common stock............ 1,815,695 (1,835,358) 3,651,053 1,816,010 10 601,000 237,968 Other capital........... 40,280 17,986 22,294 2,254 19,975 Retained earnings....... 111,048 (631,551) 742,599 111,048 189,523 178,433 Accumulated other comprehensive income... (1,471) 1,941 (3,412) (1,706) (504) (618) (266) ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total common stockholder's equity.. 1,965,552 (2,446,982) 4,412,534 1,925,352 (494) 792,159 436,110 ---------- ----------- ----------- ---------- ---------- ---------- ---------- Total liabilities and stockholder's equity.. $7,312,860 $(6,276,446) $13,589,306 $4,916,013 $1,214,876 $1,526,692 $1,936,526 ========== =========== =========== ========== ========== ========== ==========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 50 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Dominion Dominion Other Dominion Dominion E&P (Page Field Dominion CNG Power CNGI Subsidiaries Peoples Hope 73) Services Retail (Page 79) (Page 85) (Page 61) -------- -------- ---------- -------- -------- --------- --------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- Accounts payable, trade.................. 74,062 26,341 213,689 110,444 39,790 47 2,576 Estimated rate contingencies and refunds................ 842 (24) Payables to affiliated companies.............. 168,504 42,388 327,595 122,995 54,014 21 1,032 36,220 Customer deposits....... 2,143 399 26 Accrued interest........ 94 18 Accrued payroll......... 1,020 618 3 Accrued taxes........... (14,733) 2,716 3,290 1,254 709 925 1,103 999 Deferred income taxes-- current (net).......... 31,827 25 Other................... 14,677 2,348 22,616 26,433 1,880 102,635 2,132 -------- -------- ---------- -------- ------- ------- -------- ------- Total current liabilities........... 278,436 74,829 567,190 261,152 96,396 946 104,817 41,927 -------- -------- ---------- -------- ------- ------- -------- ------- Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... 130,083 36,456 515,225 15,000 -------- -------- ---------- -------- ------- ------- -------- ------- Total long-term debt... 130,083 36,456 515,225 15,000 -------- -------- ---------- -------- ------- ------- -------- ------- Deferred Credits and Other Liabilities Deferred income taxes... 167,478 20,552 276,266 (669) (1,490) 797 (40,678) 8,187 Deferred investment tax credits................ 7,249 2,029 Other................... 56,620 21,507 80,186 12,597 802 1,694 208 -------- -------- ---------- -------- ------- ------- -------- ------- Total deferred credits and other liabilities........... 231,347 44,088 356,452 11,928 (688) 797 (38,984) 8,395 -------- -------- ---------- -------- ------- ------- -------- ------- Total liabilities...... Commitments and Contingencies Common Stockholder's Equity Common stock............ 183,535 44,900 439,000 17,220 6,000 8,360 238,550 58,500 Other capital........... 45 20 Retained earnings....... 101,127 18,527 302,262 11,312 (14,063) 1,870 (113,910) (43,530) Accumulated other comprehensive income... (253) (65) -------- -------- ---------- -------- ------- ------- -------- ------- Total common stockholder's equity.. 284,409 63,362 741,262 28,577 (8,063) 10,230 124,640 14,990 -------- -------- ---------- -------- ------- ------- -------- ------- Total liabilities and stockholder's equity.. $924,275 $218,735 $2,180,129 $301,657 $87,645 $11,973 $205,473 $65,312 ======== ======== ========== ======== ======= ======= ======== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 51 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Eliminations Dominion CNG and and Combined Transmission Dominion Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 68) East Ohio Peoples ------------ ------------ ---------- -------- ------- ------------ ---------- -------- Operating revenue and income: Regulated gas sales.... $1,718,914 $ (334) $1,719,248 $ $ $ $1,228,555 $231,540 Nonregulated gas sales................. 675,439 (89,566) 765,005 Gas transportation and storage............... 550,914 (113,553) 664,467 441,078 114,000 100,524 Oil and gas production............ 531,516 (106,132) 637,648 40,930 Other.................. 535,180 (209,885) 745,065 183,893 86,143 20,128 8,765 ---------- --------- ---------- -------- ------- -------- ---------- -------- Total.................. 4,011,963 (519,470) 4,531,433 183,893 568,151 1,362,683 340,829 ---------- --------- ---------- -------- ------- -------- ---------- -------- Expenses: Purchased gas.......... 1,704,840 (302,341) 2,007,181 14,866 864,189 155,667 Liquids, capacity and other products purchased............. 327,843 (9,240) 337,083 61,430 Restructuring and other merger-related costs.. 270,270 6,279 263,991 13,121 72,734 20,147 49,600 17,941 Operation and maintenance........... 586,286 (217,120) 803,406 49,218 101,725 156,531 200,632 80,674 Depreciation and amortization.......... 442,458 (2,610) 445,068 7,504 62,410 49,787 16,511 Other taxes............ 203,399 203,399 (145) 4,198 29,090 130,866 5,548 ---------- --------- ---------- -------- ------- -------- ---------- -------- Total.................. 3,535,096 (525,032) 4,060,128 62,194 186,161 344,474 1,295,074 276,341 ---------- --------- ---------- -------- ------- -------- ---------- -------- Income from operations.. 476,867 5,562 471,305 (62,194) (2,268) 223,677 67,609 64,488 ---------- --------- ---------- -------- ------- -------- ---------- -------- Other income and expense: Gain on sale of Virginia Natural Gas.. 163,317 163,317 163,317 Loss on net assets held for sale.............. (152,340) (152,340) Equity in earnings of subsidiary companies-- consolidated.......... (212,413) 212,413 212,413 Interest revenue from affiliated companies-- consolidated.......... 20 (150,599) 150,619 144,346 1,368 1,681 Other.................. 33,939 (2,877) 36,816 6,625 (289) 3,178 13,088 2,243 ---------- --------- ---------- -------- ------- -------- ---------- -------- Total other income and expense............... 44,936 (365,889) 410,825 526,701 1,079 4,859 13,088 2,243 ---------- --------- ---------- -------- ------- -------- ---------- -------- Income before interest and income taxes....... 521,803 (360,327) 882,130 464,507 (1,189) 228,536 80,697 66,731 Interest charges........ 161,417 (153,620) 315,037 174,011 1,890 23,915 39,437 14,226 ---------- --------- ---------- -------- ------- -------- ---------- -------- Income before income taxes.................. 360,386 (206,707) 567,093 290,496 (3,079) 204,621 41,260 52,505 Income tax expense...... 147,112 947 146,165 46,494 77,467 16,328 15,699 ---------- --------- ---------- -------- ------- -------- ---------- -------- Income before cumulative effect of a change in accounting principle... 213,274 (207,654) 420,928 244,002 (3,079) 127,154 24,932 36,806 Cumulative effect of a change in accounting principle (net of income taxes).......... (30,728) 3,079 (33,807) (3,079) (6,212) (12,591) (9,859) ---------- --------- ---------- -------- ------- -------- ---------- -------- Net income.............. $ 244,002 $(210,733) $ 454,735 $244,002 $ $133,366 $ 37,523 $ 46,665 ========== ========= ========== ======== ======= ======== ========== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 52 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING INCOME STATEMENT--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion E&P Dominion Other Dominion (Page Field Dominion CNG Power CNGI Subsidiaries VNG Hope 74) Services Retail (Page 80) (Page 86) (Page 62) -------- -------- -------- -------- -------- --------- --------- ------------ Operating revenue and income: Regulated gas sales.... $147,341 $111,812 $ -- $ -- $ -- $ -- $ -- $ -- Nonregulated gas sales................. 617,195 147,810 Gas transportation and storage............... 2,517 5,782 398 168 Oil and gas production............ 596,718 Other.................. 4,950 5,851 381,641 11,984 25,434 3,627 102 12,547 -------- -------- ------- ------- ------- ------ --------- ------- Total.................. 154,808 123,445 978,757 629,347 173,244 3,627 102 12,547 -------- -------- ------- ------- ------- ------ --------- ------- Expenses: Purchased gas.......... 78,221 63,013 81,254 605,157 144,814 Liquids, capacity and other products purchased............. 251,729 284 18,915 2,085 2,640 Restructuring and other merger-related costs.. 1,960 2,953 80,775 7 1,643 3,110 Operation and maintenance........... 34,640 29,721 108,162 16,556 12,383 361 5,225 7,578 Depreciation and amortization.......... 12,044 6,118 288,084 530 1,739 207 134 Other taxes............ 7,716 10,089 14,604 81 1,223 64 192 (127) -------- -------- ------- ------- ------- ------ --------- ------- Total.................. 134,581 111,894 824,608 622,615 180,717 2,717 8,661 10,091 -------- -------- ------- ------- ------- ------ --------- ------- Income from operations.. 20,227 11,551 154,149 6,732 (7,473) 910 (8,559) 2,456 -------- -------- ------- ------- ------- ------ --------- ------- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. (152,340) Equity in earnings of subsidiary companies-- consolidated.......... Interest revenue from affiliated companies-- consolidated.......... 95 150 7 43 472 2,008 449 Other.................. (38) 424 1,677 1,490 145 69 3,120 5,084 -------- -------- ------- ------- ------- ------ --------- ------- Total other income and expense............... 57 424 1,827 1,497 188 541 (147,212) 5,533 -------- -------- ------- ------- ------- ------ --------- ------- Income before interest and income taxes....... 20,284 11,975 155,976 8,229 (7,285) 1,451 (155,771) 7,989 Interest charges........ 6,906 4,197 42,101 3,347 719 1,743 2,545 -------- -------- ------- ------- ------- ------ --------- ------- Income before income taxes.................. 13,378 7,778 113,875 4,882 (8,004) 1,451 (157,514) 5,444 Income tax expense...... 5,699 3,513 32,831 1,858 (2,772) 406 (53,796) 2,438 -------- -------- ------- ------- ------- ------ --------- ------- Income before cumulative effect of a change in accounting principle... 7,679 4,265 81,044 3,024 (5,232) 1,045 (103,718) 3,006 Cumulative effect of a change in accounting principle (net of income taxes).......... (186) (1,696) (162) (2) (14) (6) -------- -------- ------- ------- ------- ------ --------- ------- Net income.............. $ 7,865 $ 5,961 $81,206 $ 3,026 $(5,218) $1,045 $(103,712) $ 3,006 ======== ======== ======= ======= ======= ====== ========= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 53 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
CNG Eliminations Dominion Dominion and and Combined Transmission East Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 69) Ohio Peoples ------------ ------------ ---------- ---------- ------ ------------ -------- -------- Retained Earnings Balance at December 31, 1999................... $1,549,505 $(540,118) $2,089,623 $1,549,505 $-- $119,222 $156,759 $ 65,346 Net income for the period January 1 through January 27, 2000................... 86,654 (96,288) 182,942 86,654 21,411 34,250 20,727 ---------- --------- ---------- ---------- ---- -------- -------- -------- Total.................. 1,636,159 (636,406) 2,272,565 1,636,159 140,633 191,009 86,073 Merger of Parent Company with Dominion Resources, Inc......... (1,636,159) (1,636,159) (1,636,159) ---------- --------- ---------- ---------- ---- -------- -------- -------- Balance at January 28, 2000................... (636,406) 636,406 140,633 191,009 86,073 Net income for the period January 28 through December 31, 2000................... 157,348 (114,445) 271,793 157,348 111,955 3,273 25,938 Dividends declared on common stock--cash..... (46,300) 112,502 (158,802) (46,300) (63,065) (15,849) (10,884) Sale of Virginia Natural Gas by Parent Company.. 6,798 (6,798) ---------- --------- ---------- ---------- ---- -------- -------- -------- Balance at December 31, 2000................... $ 111,048 $(631,551) $ 742,599 $ 111,048 $-- $189,523 $178,433 $101,127 ========== ========= ========== ========== ==== ======== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 54 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Other Dominion E&P Field Dominion CNG Power CNGI Subsidiaries VNG Hope (Page 75) Services Retail (Page 81) (Page 87) (Page 63) ------ -------- --------- -------- -------- --------- --------- ------------ Retained Earnings Balance at December 31, 1999................... $2,437 $12,566 $240,256 $ 8,286 $ (8,845) $ 825 $ (10,198) $(46,536) Net income for the period January 1 through January 27, 2000................... 5,761 5,042 6,924 752 1,251 173 (267) 264 ------ ------- -------- ------- -------- ------ --------- -------- Total.................. 8,198 17,608 247,180 9,038 (7,594) 998 (10,465) (46,272) Merger of Parent Company with Dominion Resources, Inc. ....... ------ ------- -------- ------- -------- ------ --------- -------- Balance at January 28, 2000................... 8,198 17,608 247,180 9,038 (7,594) 998 (10,465) (46,272) Net income for the period January 28 through December 31, 2000................... 2,104 919 74,282 2,274 (6,469) 872 (103,445) 2,742 Dividends declared on common stock--cash..... (3,504) (19,200) Sale of Virginia Natural Gas by Parent Company.. (6,798) ------ ------- -------- ------- -------- ------ --------- -------- Balance at December 31, 2000................... $ -- $18,527 $302,262 $11,312 $(14,063) $1,870 $(113,910) $(43,530) ====== ======= ======== ======= ======== ====== ========= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 55 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Eliminations Dominion Dominion CNG and and Combined Transmission East Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 70) Ohio Peoples ------------ ------------ -------- -------- ------ ------------ -------- -------- Net income.............. $244,002 $(210,733) $454,735 $244,002 $ $133,366 $37,523 $46,665 Other comprehensive income, net of tax: Foreign currency translation adjustment............ (1,077) 1,077 (2,154) (1,077) Less: reclassification adjustment for losses realized in net income................ 3,637 (3,637) 7,274 3,637 -------- --------- -------- -------- --- -------- ------- ------- Total foreign currency translation adjustment............ 2,560 (2,560) 5,120 2,560 Minimum pension liability adjustment.. (190) (119) (71) (190) 30 (76) 60 86 -------- --------- -------- -------- --- -------- ------- ------- Other comprehensive income (loss)......... 2,370 (2,679) 5,049 2,370 30 (76) 60 86 -------- --------- -------- -------- --- -------- ------- ------- Comprehensive income.... $246,372 $(213,412) $459,784 $246,372 $30 $133,290 $37,583 $46,751 ======== ========= ======== ======== === ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 56 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion E&P Dominion Other Dominion (Page Field Dominion CNG Power CNGI Subsidiaries VNG Hope 76) Services Retail (Page 82) (Page 88) (Page 64) ------ -------- -------- -------- -------- --------- --------- ------------ Net income.............. $7,865 $5,961 $81,206 $3,026 $(5,218) $1,045 $(103,712) $3,006 Other comprehensive income, net of tax: Foreign currency translation adjustment............ (1,077) Less: reclassification adjustment for losses realized in net income................ 3,637 ------ ------ ------- ------ ------- ------ --------- ------ Total foreign currency translation adjustment............ 2,560 Minimum pension liability adjustment.. 19 ------ ------ ------- ------ ------- ------ --------- ------ Other comprehensive income (loss)......... 19 2,560 ------ ------ ------- ------ ------- ------ --------- ------ Comprehensive income.... $7,865 $5,980 $81,206 $3,026 $(5,218) $1,045 $(101,152) $3,006 ====== ====== ======= ====== ======= ====== ========= ======
The Notes to the Consolidated Financial Statements are in integral part of this statement. 57 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Eliminations Dominion CNG and and Combined Transmission Dominion Dominion Subsidiaries Adjustments Total CNG CNGSvc (Page 71) East Ohio Peoples ------------ ------------ ----------- --------- --------- ------------ --------- -------- Cash Flows From (Used In) Operating Activities Net income............. $ 244,002 $ (210,733) $ 454,735 $ 244,002 $ -- $ 133,366 $ 37,523 $ 46,665 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............ (30,728) 3,079 (33,807) (3,079) (6,212) (12,591) (9,859) Restructuring and other merger-related costs................ 143,053 (1,423) 144,476 574 23,588 14,807 44,428 10,596 Loss on net assets held for sale........ 152,340 152,340 Sale of Virginia Natural Gas.......... (168,444) (168,444) (168,444) Depreciation and amortization......... 442,458 (2,610) 445,068 7,504 62,410 49,787 16,511 Pension cost (credit)--net........ (148,535) 13 (148,548) 978 (7,990) (38,014) (66,549) (25,454) Deferred income taxes--net........... 29,472 956 28,516 (6,320) 70 8,765 17,644 24,147 Investment tax credit............... (2,064) (2,064) (1,317) (494) Changes in current assets and current liabilities: Accounts receivable.. (399,742) (665) (399,077) (4,749) (484) (16,882) (255,364) (24,520) Receivables from affiliated companies........... 25,903 21,880 4,023 (5,056) 21,032 (6,832) 3,407 (2,886) Inventories.......... (11,497) (11,497) (1,656) 26,819 2,730 Unrecovered gas costs............... (225,344) (225,344) (101,212) (65,873) (58,259) Broker margin deposits............ (241,897) (241,897) Prepayments.......... (28,276) (3) (28,273) 56 (60) 2,032 (6,479) (5,885) Other current assets.............. (65,315) (7) (65,308) (6,450) 424 (23,200) 1,192 (4,567) Accounts payable, trade............... 336,010 195 335,815 1,433 (2,834) 2,199 142,315 44,163 Payables to affiliated companies........... (33,490) (23,888) (9,602) (24,783) 4,665 12,053 22,050 6,755 Estimated rate contingencies and refunds............. (5,901) (5,901) 7,097 (11,913) 553 Amounts payable to customers........... (959) (959) (3,955) Accrued expenses..... 45,808 (1,616) 47,424 11,890 (330) 4,838 38,701 (15,667) Other--net........... 74,690 (1,827) 76,517 (2,531) 6,212 5,257 8,608 924 Net assets held for sale................ 7,159 7,159 Changes in other assets and other liabilities.......... 129,736 (147,660) 277,396 (47) (23,037) 158,121 (2,405) (5,613) Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated......... 24,606 (24,606) (24,606) Other--net............ (508) (508) 29 (311) (285) 45 --------- ----------- ----------- --------- --------- --------- --------- -------- Net cash flows from (used in) operating activities.......... 267,931 (332,544) 600,475 15,976 25,681 216,626 (34,257) (115) --------- ----------- ----------- --------- --------- --------- --------- -------- Cash Flows From (Used In) Investing Activities Plant construction and other property additions: Acquisition of exploration and production assets.... (217,957) (217,957) Other................. (543,183) (543,183) 926 (63,620) (64,947) (35,515) Proceeds from sale of Virginia Natural Gas, net of cash sold...... 531,656 231 531,425 532,021 Proceeds from sale of Argentine investments, net of cash sold...... 144,534 144,534 Cost of other investments........... (7,188) (7,188) (925) Intrasystem long-term financing--net........ (34,574) 34,574 34,574 Intrasystem money pool investments--net...... 1,054,568 (1,054,568) (360,992) (548,696) (14,048) Property transfers to (from) affiliates..... (2,265) 86 23 2,243 Other.................. 9,393 45 9,348 (45) 1,222 217 (3,099) 6,408 --------- ----------- ----------- --------- --------- --------- --------- -------- Net cash flows from (used in) investing activities.......... (82,745) 1,164,804 (1,247,549) 205,558 (548,813) (78,290) (68,023) (26,864) --------- ----------- ----------- --------- --------- --------- --------- -------- Cash Flows From (Used In ) Financing Activities Repayments of long-term debt.................. (44,615) (44,615) (44,615) Issuance (repayment) of short-term debt....... 526,775 526,775 526,775 Dividends paid-- Registrant............ (703,655) (703,655) (703,655) Intrasystem long-term financing-net......... 34,574 (34,574) (23,672) (5,827) (2,440) (1,261) Intrasystem money pool borrowings (repayments)--net..... (1,054,568) 1,054,568 486,174 (34,343) 178,511 50,742 Dividends paid-- subsidiary companies-- consolidated.......... 187,807 (187,807) (97,620) (39,979) (22,704) Purchase of treasury stock................. (34) (34) (34) Other.................. (45) 45 --------- ----------- ----------- --------- --------- --------- --------- -------- Net cash flows from (used in) financing activities.......... (221,529) (832,232) 610,703 (221,529) 462,502 (137,790) 136,092 26,777 --------- ----------- ----------- --------- --------- --------- --------- -------- Increase (decrease) in cash and cash equivalents......... (36,343) 28 (36,371) 5 (60,630) 546 33,812 (202) Cash and cash equivalents at beginning of year..... 93,891 (231) 94,122 2 62,229 95 7,285 4,046 --------- ----------- ----------- --------- --------- --------- --------- -------- Cash and cash equivalents at end of year.................. $ 57,548 $ (203) $ 57,751 $ 7 $ 1,599 $ 641 $ 41,097 $ 3,844 ========= =========== =========== ========= ========= ========= ========= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 58 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Other E&P (Page Field Dominion CNG Power CNGI Subsidiaries VNG HGI 77) Services Retail (Page 83) (Page 89) (Page 65) -------- -------- --------- -------- -------- --------- --------- ------------ Cash Flows From (Used In) Operating Activities Net income.............. $ 7,865 $ 5,961 $ 81,206 $ 3,026 $ (5,218) $ 1,045 $(103,712) $ 3,006 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. (186) (1,696) (162) (2) (14) (6) Restructuring and other merger-related costs.. 1,960 2,312 43,485 19 1,262 9 1,423 13 Loss on net assets held for sale.............. 152,340 Sale of Virginia Natural Gas........... Depreciation and amortization.......... 12,044 6,118 288,084 530 1,739 207 134 Pension cost (credit)-- net................... 3,030 (8,220) (5,682) (634) (13) Deferred income taxes-- net................... 1,536 3,962 25,760 171 (539) 33 (48,261) 1,548 Investment tax credit.. (116) (137) Changes in current assets and current liabilities: Accounts receivable... 25,663 (19,171) (72,565) (26,662) (6,712) 1,862 665 (158) Receivables from affiliated companies............ 3,950 (331) (8,330) 12,579 (12,156) 182 (1,127) (409) Inventories........... (22,307) (356) (1,047) (1,406) (14,310) 36 Unrecovered gas costs................ Broker margin deposits............. (162,161) (79,736) Prepayments........... 113 (357) (122) (17,638) 62 (1) 3 3 Other current assets.. 269 3,584 (5,156) (22,652) (8,761) 7 2 Accounts payable, trade................ 3,891 12,355 51,620 47,957 32,029 (381) (195) 1,263 Payables to affiliated companies............ 1,199 7,844 7,142 (56,374) 8,808 (96) 613 522 Estimated rate contingencies and refunds.............. (1,590) (48) Amounts payable to customers............ 2,996 Accrued expenses...... 5,012 208 291 770 288 (10) 529 904 Other--net............ (48) (47) 16,680 38,127 1,507 1,817 11 Net assets held for sale................. Changes in other assets and other liabilities........... (1,868) 2,384 427 2,439 (3,127) (67) 147,661 2,528 Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated.......... Other--net............. 14 -------- -------- --------- -------- -------- ------- --------- ------- Net cash flows from (used in) operating activities........... 43,427 14,365 259,470 (98,852) (5,776) 2,819 151,878 9,233 -------- -------- --------- -------- -------- ------- --------- ------- Cash Flows From (Used In) Investing Activities Plant construction and other property additions: Acquisition of exploration and production assets..... (217,957) Other.................. (15,752) (9,950) (352,077) (919) (1,332) 3 Proceeds from sale of Virginia Natural Gas, net of cash sold....... (596) Proceeds from sale of Argentine investments, net of cash sold....... Cost of other investments............ 679 (6,059) (883) Intrasystem long-term financing--net......... Intrasystem money pool investments--net....... 12,290 (3,496) (137,030) (2,596) Property transfers to (from) affiliates...... (41) (46) Other................... 3,194 (550) 5,578 (3,576) (1) -------- -------- --------- -------- -------- ------- --------- ------- Net cash flows from (used in) investing activities........... (13,154) (10,541) (552,212) (4,495) (1,333) (2,817) (143,086) (3,479) -------- -------- --------- -------- -------- ------- --------- ------- Cash Flows From (Used In ) Financing Activities Repayments of long-term debt................... Issuance (repayment) of short-term debt........ Dividends paid-- Registrant............. Intrasystem long-term financing--net......... (474) (4,450) 3,550 Intrasystem money pool borrowings (repayments)--net...... (27,000) (786) 305,803 103,771 7,281 (9,835) (5,750) Dividends paid-- subsidiary companies-- consolidated........... (3,504) (800) (19,200) (4,000) Purchase of treasury stock.................. Other................... 45 -------- -------- --------- -------- -------- ------- --------- ------- Net cash flows from (used in) financing activities........... (30,504) (2,060) 282,153 103,366 7,281 (9,835) (5,750) -------- -------- --------- -------- -------- ------- --------- ------- Increase (decrease) in cash and cash equivalents.......... (231) 1,764 (10,589) 19 172 2 (1,043) 4 Cash and cash equivalents at beginning of year...... 231 2,937 15,971 4 4 1 1,246 71 -------- -------- --------- -------- -------- ------- --------- ------- Cash and cash equivalents at end of year................... $ -- $ 4,701 $ 5,382 $ 23 $ 176 $ 3 $ 203 $ 75 ======== ======== ========= ======== ======== ======= ========= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 59 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET SUPPLEMENT At December 31, 2000 (Thousands)
Dominion Other P&S CNG Subsidiaries (Page Main CNG Oil CNG CNG CNG Total 98) Pass Gathering CNGPSC LNG Coal Research Financial ------------ -------- ------- --------- ------ ---- ------ -------- --------- ASSETS Current Assets Cash and cash equivalents............ $ 75 $ 28 $ 1 $ 1 $ 1 $ 1 $ 1 $ 3 $39 Accounts receivable: Customers, less allowance............. 1,139 1,139 Other.................. 58 58 Receivables from affiliated companies... 10,763 3,241 2,637 669 4,146 70 Inventories: Gas stored--current portion............... Materials and supplies.............. Unrecovered gas costs... Deferred income taxes-- current (net).......... Broker margin deposits.. Prepayments............. 17 1 5 10 1 Other................... 79 1 78 Net assets held for sale................... ------- ------ ------- ------- ------ ---- ------ --- --- Total current assets.. 12,131 4,409 6 11 2,638 672 4,283 73 39 ------- ------ ------- ------- ------ ---- ------ --- --- Investments Stocks of subsidiary companies, at equity-- consolidated........... Notes of subsidiary companies-- consolidated........... Other................... 49,244 32,807 16,437 ------- ------ ------- ------- ------ ---- ------ --- --- Total investments..... 49,244 32,807 16,437 ------- ------ ------- ------- ------ ---- ------ --- --- Property, Plant and Equipment Property, plant and equipment.............. Less accumulated depreciation and amortization........... Net property, plant and equipment........ Deferred Charges and Other Assets Regulatory assets....... Prepaid pension cost.... Other................... 3,937 184 3,740 13 ------- ------ ------- ------- ------ ---- ------ --- --- Total deferred charges and other assets..... 3,937 184 3,740 13 ------- ------ ------- ------- ------ ---- ------ --- --- Total assets.......... $65,312 $4,409 $32,813 $16,448 $2,822 $672 $8,023 $86 $39 ======= ====== ======= ======= ====== ==== ====== === ===
The Notes to the Consolidated Financial Statements are an integral part of this statement. 60 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING BALANCE SHEET SUPPLEMENT--(Continued) At December 31, 2000 (Thousands)
Dominion Other P&S CNG Subsidiaries (Page Main CNG Oil CNG CNG Total 99) Pass Gathering CNGPSC LNG CNG Coal Research Financial ------------ -------- ------- --------- -------- ------ -------- -------- --------- LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $-- Accounts payable, trade.................. 2,576 451 2,125 Estimated rate contingencies and refunds................ Payables to affiliated companies.............. 36,220 610 24,532 8,769 2,309 Customer deposits....... Accrued interest........ Accrued payroll......... Accrued taxes........... 999 665 (360) (15) 246 (99) 551 6 5 Deferred income taxes-- current (net).......... Other................... 2,132 1,838 293 1 -------- ------- ------- ------- -------- ------ -------- -------- ---- Total current liabilities........... 41,927 3,564 24,172 8,754 4,973 (98) 551 6 5 -------- ------- ------- ------- -------- ------ -------- -------- ---- Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... Total long-term debt... Deferred Credits and Other Liabilities Deferred income taxes... 8,187 (1,121) 5,872 2,699 174 563 Deferred investment tax credits................ Other................... 208 208 -------- ------- ------- ------- -------- ------ -------- -------- ---- Total deferred credits and other liabilities........... 8,395 (913) 5,872 2,699 174 563 -------- ------- ------- ------- -------- ------ -------- -------- ---- Commitments and Contingencies Common Stockholder's Equity Common stock............ 58,500 3,990 15,520 1,000 22,360 15,580 50 Other capital........... 20 10 10 Retained earnings....... (43,530) (2,232) 2,759 4,985 (17,845) (230) (15,451) (15,500) (16) Accumulated other comprehensive income... -------- ------- ------- ------- -------- ------ -------- -------- ---- Total common stockholder's equity.. 14,990 1,758 2,769 4,995 (2,325) 770 6,909 80 34 -------- ------- ------- ------- -------- ------ -------- -------- ---- Total liabilities and stockholder's equity.. $ 65,312 $ 4,409 $32,813 $16,448 $ 2,822 $ 672 $ 8,023 $ 86 $ 39 ======== ======= ======= ======= ======== ====== ======== ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 61 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING INCOME STATEMENT SUPPLEMENT For the Year Ended December 31, 2000 (Thousands)
Other Dominion CNG Subsidiaries P&S Main CNG Oil CNG CNG CNG Total (Page 100) Pass Gathering CNGPSC LNG Coal Research Financial ------------ ---------- ------ --------- ------ ----- ----- -------- --------- Operating revenue and income: Regulated gas sales.... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $-- $-- Nonregulated gas sales................. Gas transportation and storage............... Oil and gas production............ Other.................. 12,547 9,907 2,640 ------- ------ ------ ------ ------ ----- ----- ---- ---- Total.................. 12,547 9,907 2,640 ------- ------ ------ ------ ------ ----- ----- ---- ---- Expenses: Purchased gas.......... Liquids, capacity and other products purchased............. 2,640 2,640 Restructuring and other merger-related costs.. Operation and maintenance........... 7,578 7,425 25 70 42 2 11 2 1 Depreciation and amortization.......... Other taxes............ (127) 16 (143) ------- ------ ------ ------ ------ ----- ----- ---- ---- Total.................. 10,091 7,441 25 70 2,682 2 (132) 2 1 ------- ------ ------ ------ ------ ----- ----- ---- ---- Income from operations.. 2,456 2,466 (25) (70) (42) (2) 132 (2) (1) ------- ------ ------ ------ ------ ----- ----- ---- ---- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. Equity in earnings of subsidiary companies-- consolidated.......... Interest revenue from affiliated companies-- consolidated.......... 449 132 60 253 4 Other.................. 5,084 17 1,418 2,899 540 210 ------- ------ ------ ------ ------ ----- ----- ---- ---- Total other income and expense............... 5,533 149 1,418 2,899 540 60 463 4 ------- ------ ------ ------ ------ ----- ----- ---- ---- Income before interest and income taxes....... 7,989 2,615 1,393 2,829 498 58 595 2 (1) Interest charges........ 2,545 1,734 682 129 ------- ------ ------ ------ ------ ----- ----- ---- ---- Income before income taxes.................. 5,444 2,615 (341) 2,147 369 58 595 2 (1) Income tax expense...... 2,438 916 (108) 758 27 290 555 ------- ------ ------ ------ ------ ----- ----- ---- ---- Income before cumulative effect of a change in accounting principle... 3,006 1,699 (233) 1,389 342 (232) 40 2 (1) Cumulative effect of a change in accounting principle (net of income taxes).......... ------- ------ ------ ------ ------ ----- ----- ---- ---- Net income.............. $ 3,006 $1,699 $ (233) $1,389 $ 342 $(232) $ 40 $ 2 $ (1) ======= ====== ====== ====== ====== ===== ===== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 62 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS SUPPLEMENT For the Year Ended December 31, 2000 (Thousands)
Other Dominion Subsidiaries P&S CNG Main CNG Oil CNG CNG Total (Page 101) Pass Gathering CNGPSC LNG CNG Coal Research Financial ------------ ---------- -------- --------- -------- ----- -------- -------- --------- Retained Earnings Balance at December 31, 1999................... $(46,536) $(3,931) $2,992 $3,596 $(18,187) $ 2 $(15,491) $(15,502) $(15) Net income for the period January 1 through January 27, 2000....... 264 58 51 158 (17) 14 -------- ------- ------ ------ -------- ----- -------- -------- ---- Total.................. (46,272) (3,873) 3,043 3,754 (18,187) (15) (15,477) (15,502) (15) Merger of Parent Company with Dominion Resources, Inc......... -------- ------- ------ ------ -------- ----- -------- -------- ---- Balance at January 28, 2000................... (46,272) (3,873) 3,043 3,754 (18,187) (15) (15,477) (15,502) (15) Net income for the period January 28 through December 31, 2000...... 2,742 1,641 (284) 1,231 342 (215) 26 2 (1) Dividends declared on common stock--cash..... Sale of Virginia Natural Gas by Parent Company.. -------- ------- ------ ------ -------- ----- -------- -------- ---- Balance at December 31, 2000................... $(43,530) $(2,232) $2,759 $4,985 $(17,845) $(230) $(15,451) $(15,500) $(16) ======== ======= ====== ====== ======== ===== ======== ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 63 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME SUPPLEMENT For the Year Ended December 31, 2000 (Thousands)
Other Dominion Subsidiaries P&S CNG Main CNG Oil CNG CNG CNG Total (Page 102) Pass Gathering CNGPSC LNG Coal Research Financial ------------ ---------- -------- --------- ------ ----- ---- -------- --------- Net income.............. $3,006 $1,699 $(233) $1,389 $342 $(232) $40 $ 2 $(1) Other comprehensive income, net of tax: Foreign currency translation adjustment............ Less: reclassification adjustment for losses realized in net income................ ------ ------ ----- ------ ---- ----- --- --- --- Total foreign currency translation adjustment............ Minimum pension liability adjustment.. ------ ------ ----- ------ ---- ----- --- --- --- Other comprehensive income (loss)......... ------ ------ ----- ------ ---- ----- --- --- --- Comprehensive income.... $3,006 $1,699 $(233) $1,389 $342 $(232) $40 $ 2 $(1) ====== ====== ===== ====== ==== ===== === === ===
The Notes to the Consolidated Financial Statements are an integral part of this statement. 64 CONSOLIDATED NATURAL GAS COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS SUPPLEMENT For the Year Ended December 31, 2000 (Thousands)
Other Dominion CNG CNG Subsidiaries P&S Main Oil CNG CNG CNG Total (Page 103) Pass Gathering CNGPSC LNG Coal Research Financial ------------ ---------- ------- --------- ------- ----- ----- -------- --------- Cash Flows From (Used In) Operating Activities Net income.............. $ 3,006 $ 1,699 $ (233) $ 1,389 $ 342 $(232) $ 40 $ 2 $ (1) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other merger-related costs.. 13 11 2 Loss on net assets held for sale.............. Sale of Virginia Natural Gas........... Depreciation and amortization.......... Pension cost (credit)-- net................... Deferred income taxes-- net................... 1,548 (174) 1,242 278 197 5 Investment tax credit.. Changes in current assets and current liabilities: Accounts receivable... (158) (746) 593 (5) Receivables from affiliated companies............ (409) 570 3 (977) 1 (5) (1) Inventories........... Unrecovered gas costs................ Broker margin deposits............. Prepayments........... 3 (1) 2 1 1 Other current assets.. 2 2 Accounts payable, trade................ 1,263 (414) 1,676 1 Payables to affiliated companies............ 522 7 26 5 488 (1) (1) (1) (1) Estimated rate contingencies and refunds.............. Amounts payable to customers............ Accrued expenses...... 904 718 (245) 80 156 (110) 306 (1) Other--net............ 11 661 1 1 (653) (1) 1 1 Net assets held for sale................. Changes in other assets and other liabilities........... 2,528 208 1,465 982 (185) 58 Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated.......... Other--net............. ------- ------- ------- ------- ------- ----- ----- --- ---- Net cash flows from (used in) operating activities........... 9,233 2,539 2,258 2,741 1,637 (342) 402 (2) ------- ------- ------- ------- ------- ----- ----- --- ---- Cash Flows From (Used In) Investing Activities Plant construction and other property additions: Acquisition of exploration and production assets..... Other.................. Proceeds from sale of Virginia Natural Gas, net of cash sold....... Proceeds from sale of Argentine investments, net of cash sold....... Cost of other investments............ (883) (883) Intrasystem long-term financing--net......... Intrasystem money pool investments--net....... (2,596) (2,516) 342 (424) 2 Property transfers to (from) affiliates...... Other................... ------- ------- ------- ------- ------- ----- ----- --- ---- Net cash flows from (used in) investing activities........... (3,479) (2,516) (883) 342 (424) 2 ------- ------- ------- ------- ------- ----- ----- --- ---- Cash Flows From (Used In) Financing Activities Repayments of long-term debt................... Issuance (repayment) of short-term debt........ Dividends paid-- Registrant............. Intrasystem long-term financing--net......... Intrasystem money pool borrowings (repayments)--net...... (5,750) (1,374) (2,740) (1,636) Dividends paid-- subsidiary companies-- consolidated........... Purchase of treasury stock.................. Other................... ------- ------- ------- ------- ------- ----- ----- --- ---- Net cash flows from (used in) financing activities........... (5,750) (1,374) (2,740) (1,636) ------- ------- ------- ------- ------- ----- ----- --- ---- Increase (decrease) in cash and cash equivalents.......... 4 23 1 1 1 (22) 2 (2) Cash and cash equivalents at beginning of year...... 71 5 1 23 1 41 ------- ------- ------- ------- ------- ----- ----- --- ---- Cash and cash equivalents at end of year................... $ 75 $ 28 $ 1 $ 1 $ 1 $ 1 $ 1 $ 3 $ 39 ======= ======= ======= ======= ======= ===== ===== === ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 65 DOMINION TRANSMISSION, INC. CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
Dominion Eliminations Transmission and Combined Dominion CNG and Subsidiary Adjustments Total Transmission Iroquois -------------- ------------ ---------- ------------ -------- ASSETS Current Assets Cash and cash equivalents............ $ 641 $ -- $ 641 $ 641 $ -- Accounts receivable: Customers, less allowance............. 64,698 64,698 64,698 Other.................. (1,233) (1,233) (1,233) Receivables from affiliated companies... 48,889 48,889 23,991 24,898 Inventories: Gas stored--current portion............... Materials and supplies.............. 10,719 10,719 10,719 Unrecovered gas costs... 121,068 121,068 121,068 Deferred income taxes-- current (net).......... Broker margin deposits.. Prepayments............. 13,892 13,892 13,892 Other................... 69,882 69,882 69,872 10 Net assets held for sale................... ---------- -------- ---------- ---------- ------- Total current assets.. 328,556 328,556 303,648 24,908 ---------- -------- ---------- ---------- ------- Investments Stock of subsidiary company, at equity-- consolidated........... (44,152) 44,152 44,152 Notes of subsidiary company--consolidated.. Other................... 28,723 28,723 28,723 ---------- -------- ---------- ---------- ------- Total investments..... 28,723 (44,152) 72,875 44,152 28,723 ---------- -------- ---------- ---------- ------- Property, Plant and Equipment Property, plant and equipment.............. 2,188,544 2,188,544 2,188,544 Less accumulated depreciation and amortization........... 1,159,675 1,159,675 1,159,675 ---------- -------- ---------- ---------- ------- Net property, plant and equipment........ 1,028,869 1,028,869 1,028,869 ---------- -------- ---------- ---------- ------- Deferred Charges and Other Assets Regulatory assets....... 16,799 16,799 16,799 Prepaid pension cost.... 113,637 113,637 113,637 Other................... 10,108 10,108 10,108 ---------- -------- ---------- ---------- ------- Total deferred charges and other assets..... 140,544 140,544 140,544 ---------- -------- ---------- ---------- ------- Total assets.......... $1,526,692 $(44,152) $1,570,844 $1,517,213 $53,631 ========== ======== ========== ========== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 66 DOMINION TRANSMISSION, INC. CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Dominion Transmission Eliminations and and Combined Dominion CNG Subsidiary Adjustments Total Transmission Iroquois ------------ ------------ ---------- ------------ -------- LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- Accounts payable, trade.................. 24,172 24,172 24,172 Estimated rate contingencies and refunds................ 39,736 39,736 39,736 Payables to affiliated companies.............. 41,897 41,897 41,897 Customer deposits....... 113 113 113 Accrued interest........ -- -- -- Accrued payroll......... 1,898 1,898 1,898 Accrued taxes........... 38,569 38,569 39,045 (476) Deferred income taxes-- current (net).......... 32,211 32,211 32,211 Other................... 27,139 27,139 27,139 ---------- -------- ---------- ---------- ------- Total current liabilities.......... 205,735 205,735 206,211 (476) ---------- -------- ---------- ---------- ------- Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... 331,599 331,599 331,599 ---------- -------- ---------- ---------- ------- Total long-term debt.. 331,599 331,599 331,599 ---------- -------- ---------- ---------- ------- Deferred Credits and Other Liabilities Deferred income taxes... 167,014 167,014 157,059 9,955 Deferred investment tax credits................ -- Other................... 30,185 30,185 30,185 ---------- -------- ---------- ---------- ------- Total deferred credits and other liabilities.......... 197,199 197,199 187,244 9,955 ---------- -------- ---------- ---------- ------- Commitments and Contingencies Common Stockholder's Equity Common stock............ 601,000 (23,940) 624,940 601,000 23,940 Other capital........... 2,254 2,254 2,254 Retained earnings....... 189,523 (20,212) 209,735 189,523 20,212 Accumulated other comprehensive income... (618) (618) (618) ---------- -------- ---------- ---------- ------- Total common stockholder's equity............... 792,159 (44,152) 836,311 792,159 44,152 ---------- -------- ---------- ---------- ------- Total liabilities and stockholder's equity............... $1,526,692 $(44,152) $1,570,844 $1,517,213 $53,631 ========== ======== ========== ========== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 67 DOMINION TRANSMISSION, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations Transmission and Combined Dominion CNG and Subsidiary Adjustments Total Transmission Iroquois -------------- ------------ -------- ------------ -------- Operating revenue and income: Regulated gas sales.... $ -- $ -- $ -- $ -- $ -- Nonregulated gas sales................. Gas transportation and storage............... 441,078 441,078 441,078 Oil and gas production............ 40,930 40,930 40,930 Other.................. 86,143 86,143 86,143 -------- ------- -------- -------- ------ Total................. 568,151 568,151 568,151 -------- ------- -------- -------- ------ Expenses: Purchased gas.......... 14,866 14,866 14,866 Liquids, capacity and other products purchased............. 61,430 61,430 61,430 Restructuring and other merger-related costs.. 20,147 20,147 20,147 Operation and maintenance........... 156,531 156,531 156,549 (18) Depreciation and amortization.......... 62,410 62,410 62,410 Other taxes............ 29,090 29,090 29,169 (79) -------- ------- -------- -------- ------ Total................. 344,474 344,474 344,571 (97) -------- ------- -------- -------- ------ Income from operations.. 223,677 223,677 223,580 97 -------- ------- -------- -------- ------ Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. Equity in earnings of subsidiary company-- consolidated.......... (4,443) 4,443 4,443 Interest revenue from affiliated companies-- consolidated.......... 1,681 1,681 548 1,133 Other.................. 3,178 3,178 (3,052) 6,230 -------- ------- -------- -------- ------ Total other income and expense.............. 4,859 (4,443) 9,302 1,939 7,363 -------- ------- -------- -------- ------ Income before interest and income taxes....... 228,536 (4,443) 232,979 225,519 7,460 Interest charges........ 23,915 23,915 23,915 -------- ------- -------- -------- ------ Income before income taxes.................. 204,621 (4,443) 209,064 201,604 7,460 Income tax expense...... 77,467 77,467 74,450 3,017 -------- ------- -------- -------- ------ Income before cumulative effect of a change in accounting principle... 127,154 (4,443) 131,597 127,154 4,443 Cumulative effect of a change in accounting principle (net of income taxes).......... (6,212) (6,212) (6,212) -------- ------- -------- -------- ------ Net income.............. $133,366 $(4,443) $137,809 $133,366 $4,443 ======== ======= ======== ======== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 68 DOMINION TRANSMISSION CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations Transmission and Combined Dominion CNG and Subsidiary Adjustments Total Transmission Iroquois -------------- ------------ -------- ------------ -------- Retained Earnings Balance at December 31, 1999................... $119,222 $(15,769) $134,991 $119,222 $15,769 Net income for the period January 1 through January 27, 2000................... 21,411 (423) 21,834 21,411 423 -------- -------- -------- -------- ------- Total................. 140,633 (16,192) 156,825 140,633 16,192 Merger of Parent Company with Dominion Resources, Inc......... -------- -------- -------- -------- ------- Balance at January 28, 2000................... 140,633 (16,192) 156,825 140,633 16,192 Net income for the period January 28 through December 31, 2000................... 111,955 (4,020) 115,975 111,955 4,020 Dividends declared on common stock--cash..... (63,065) (63,065) (63,065) -------- -------- -------- -------- ------- Balance at December 31, 2000................... $189,523 $(20,212) $209,735 $189,523 $20,212 ======== ======== ======== ======== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 69 DOMINION TRANSMISSION, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations Transmission and and Combined Dominion CNG Subsidiary Adjustments Total Transmission Iroquois ---------------- ------------ -------- ------------ -------- Net income.............. $133,366 $(4,443) $137,809 $133,366 $4,443 Other comprehensive income, net of tax: Foreign currency translation adjustment............ Less: reclassification adjustment for losses realized in net income................ -------- ------- -------- -------- ------ Total foreign currency translation adjustment............ Minimum pension liability adjustment.. (76) (76) (76) -------- ------- -------- -------- ------ Other comprehensive income (loss)......... (76) (76) (76) -------- ------- -------- -------- ------ Comprehensive income.... $133,290 $(4,443) $137,733 $133,290 $4,443 ======== ======= ======== ======== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 70 DOMINION TRANSMISSION INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations Transmission and Combined Dominion CNG and Subsidiary Adjustments Total Transmission Iroquois -------------- ------------ --------- ------------ -------- Cash Flows From (Used In) Operating Activities Net income.............. $ 133,366 $(4,443) $ 137,809 $ 133,366 $ 4,443 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. (6,212) (6,212) (6,212) Restructuring and other merger-related costs.. 14,807 14,807 14,807 Loss on net assets held for sale.............. Sale of Virginia Natural Gas........... Depreciation and amortization.......... 62,410 62,410 62,410 Pension cost (credit)-- net................... (38,014) (38,014) (38,014) Deferred income taxes-- net................... 8,765 8,765 7,311 1,454 Investment tax credit.. Changes in current assets and current liabilities: Accounts receivable... (16,882) (16,882) (16,882) Receivables from affiliated companies............ (6,832) (1,432) (5,400) (5,307) (93) Inventories........... (1,656) (1,656) (1,656) Unrecovered gas costs................ (101,212) (101,212) (101,212) Broker margin deposits............. Prepayments........... 2,032 2,032 2,039 (7) Other current assets.. (23,200) (23,200) (23,200) Accounts payable, trade................ 2,199 2,199 2,199 Payables to affiliated companies............ 12,053 1,432 10,621 12,053 (1,432) Estimated rate contingencies and refunds.............. 7,097 7,097 7,097 Amounts payable to customers............ Accrued expenses...... 4,838 4,838 4,930 (92) Other--net............ 5,257 5,257 5,258 (1) Changes in other assets and other liabilities.. 158,121 158,121 147,421 10,700 Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated........... 4,443 (4,443) (4,443) Other--net.............. (311) (311) (311) --------- ------- --------- --------- -------- Net cash flows from (used in) operating activities........... 216,626 216,626 201,654 14,972 --------- ------- --------- --------- -------- Cash Flows From (Used In) Investing Activities Plant construction and other property additions.............. (63,620) (63,620) (63,620) Proceeds from sale of Virginia Natural Gas, net of cash sold....... Proceeds from sale of Argentine investments, net of cash sold....... Cost of other investments............ (925) (925) (925) Intrasystem long-term financing--net......... Intrasystem money pool investments--net....... (14,048) (14,048) (14,048) Property transfers to (from) affiliates...... 86 86 86 Other................... 217 217 217 --------- ------- --------- --------- -------- Net cash flows from (used in) investing activities........... (78,290) (78,290) (63,317) (14,973) --------- ------- --------- --------- -------- Cash Flows From (Used In) Financing Activities Repayments of long-term debt................... Issuance (repayment) of short-term debt........ Dividends paid.......... Intrasystem long-term financing-net.......... (5,827) (5,827) (5,827) Intrasystem money pool borrowings (repayments)--net...... (34,343) (34,343) (34,343) Dividends paid-- subsidiary companies-- consolidated........... (97,620) (97,620) (97,620) Purchase of treasury stock.................. Other................... --------- ------- --------- --------- -------- Net cash flows from (used in) financing activities........... (137,790) (137,790) (137,790) --------- ------- --------- --------- -------- Increase (decrease) in cash and cash equivalents.......... 546 546 547 (1) Cash and cash equivalents at beginning of year...... 95 95 94 1 --------- ------- --------- --------- -------- Cash and cash equivalents at end of year................... $ 641 $ -- $ 641 $ 641 $ -- ========= ======= ========= ========= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 71 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
Dominion E&P Eliminations and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ------------ ------------ ---------- ---------- -------- ASSETS Current Assets Cash and cash equivalents............ $ 5,382 $ -- $ 5,382 $ 5,352 $ 30 Accounts receivable: Customers, less allowance............. 4,865 4,865 4,865 Other.................. 166,290 166,290 166,277 13 Receivables from affiliated companies... 12,167 (63) 12,230 11,236 994 Inventories: Gas stored--current portion............... Materials and supplies.............. 3,980 3,980 3,980 Unrecovered gas costs... Deferred income taxes-- current (net).......... 82 82 82 Broker margin deposits.. 179,119 179,119 179,119 Prepayments............. 1,865 1,865 1,865 Other................... 21,331 21,331 21,271 60 Net assets held for sale................... ---------- ------- ---------- ---------- ------ Total current assets.............. 395,081 (63) 395,144 394,047 1,097 ---------- ------- ---------- ---------- ------ Investments Stock of subsidiary company, at equity-- consolidated........... (1,205) 1,205 1,205 Notes of subsidiary company--consolidated.. Other................... ---------- ------- ---------- ---------- ------ Total investments.... (1,205) 1,205 1,205 ---------- ------- ---------- ---------- ------ Property, Plant and Equipment Property, plant and equipment.............. 4,556,708 4,556,708 4,552,181 4,527 Less accumulated depreciation and amortization........... 2,790,598 2,790,598 2,786,336 4,262 ---------- ------- ---------- ---------- ------ Net property, plant and equipment....... 1,766,110 1,766,110 1,765,845 265 ---------- ------- ---------- ---------- ------ Deferred Charges and Other Assets Regulatory assets....... Prepaid pension cost.... Other................... 18,938 18,938 18,960 (22) ---------- ------- ---------- ---------- ------ Total deferred charges and other assets.............. 18,938 18,938 18,960 (22) ---------- ------- ---------- ---------- ------ Total assets......... $2,180,129 $(1,268) $2,181,397 $2,180,057 $1,340 ========== ======= ========== ========== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 72 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Dominion Eliminations E&P and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ---------- ------------ ---------- ---------- -------- LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- Accounts payable, trade.................. 213,689 213,689 213,679 10 Estimated rate contin- gencies and refunds.... Payables to affiliated companies.............. 327,595 (63) 327,658 327,595 63 Customer deposits....... Accrued interest........ Accrued payroll......... Accrued taxes........... 3,290 3,290 3,322 (32) Deferred income taxes-- current (net).......... Other................... 22,616 22,616 22,616 ---------- ------- ---------- ---------- ------ Total current liabilities.......... 567,190 (63) 567,253 567,212 41 ---------- ------- ---------- ---------- ------ Long-term Debt Debentures and notes.... Notes payable to Regis- trant--consolidated.... 515,225 515,225 515,225 ---------- ------- ---------- ---------- ------ Total long-term debt.. 515,225 515,225 515,225 ---------- ------- ---------- ---------- ------ Deferred Credits and Other Liabilities Deferred income taxes... 276,266 276,266 276,172 94 Deferred investment tax credits................ Other................... 80,186 80,186 80,186 ---------- ------- ---------- ---------- ------ Total deferred credits and other liabilities.......... 356,452 356,452 356,358 94 ---------- ------- ---------- ---------- ------ Commitments and Contingencies Common Stockholder's Equity Common stock............ 439,000 (1,200) 440,200 439,000 1,200 Other capital........... Retained earnings....... 302,262 (5) 302,267 302,262 5 Accumulated other comprehensive income... ---------- ------- ---------- ---------- ------ Total common stockholder's equity............... 741,262 (1,205) 742,467 741,262 1,205 ---------- ------- ---------- ---------- ------ Total liabilities and stockholder's equity............... $2,180,129 $(1,268) $2,181,397 $2,180,057 $1,340 ========== ======= ========== ========== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 73 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations E&P and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ---------- ------------ -------- -------- -------- Operating revenue and income: Regulated gas sales...... $ -- $ -- $ -- $ -- $ -- Nonregulated gas sales... Gas transportation and storage................. 398 (289) 687 398 289 Oil and gas production... 596,718 596,718 596,718 Other.................... 381,641 381,641 381,634 7 -------- ----- -------- -------- ----- Total................... 978,757 (289) 979,046 978,750 296 -------- ----- -------- -------- ----- Expenses: Purchased gas............ 81,254 81,254 81,254 Liquids, capacity and other products purchased............... 251,729 (289) 252,018 252,018 Restructuring and other merger-related costs.... 80,775 80,775 80,775 Operation and maintenance............. 108,162 108,162 107,688 474 Depreciation and amortization............ 288,084 288,084 287,995 89 Other taxes.............. 14,604 14,604 14,600 4 -------- ----- -------- -------- ----- Total................... 824,608 (289) 824,897 824,330 567 -------- ----- -------- -------- ----- Income from operations.... 154,149 154,149 154,420 (271) -------- ----- -------- -------- ----- Other income and expense: Gain on sale of Virginia Natural Gas............. Loss on net assets held for sale................ Equity in earnings of subsidiary company-- consolidated............ 137 (137) (137) Interest revenue from affiliated companies-- consolidated............ 150 150 86 64 Other.................... 1,677 1,677 1,677 -------- ----- -------- -------- ----- Total other income and expense................ 1,827 137 1,690 1,626 64 -------- ----- -------- -------- ----- Income before interest and income taxes............. 155,976 137 155,839 156,046 (207) Interest charges.......... 42,101 42,101 42,101 -------- ----- -------- -------- ----- Income before income taxes.................... 113,875 137 113,738 113,945 (207) Income tax expense........ 32,831 32,831 32,901 (70) -------- ----- -------- -------- ----- Income before cumulative effect of a change in accounting principle..... 81,044 137 80,907 81,044 (137) Cumulative effect of a change in accounting principle (net of income taxes)................... (162) (162) (162) -------- ----- -------- -------- ----- Net income................ $ 81,206 $ 137 $ 81,069 $ 81,206 $(137) ======== ===== ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 74 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations E&P and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ---------- ------------ -------- -------- -------- Retained Earnings Balance at December 31, 1999.................... $240,256 $(241) $240,497 $240,256 $241 Net income for the period January 1 through January 27, 2000........ 6,924 46 6,878 6,924 (46) -------- ----- -------- -------- ---- Total.................. 247,180 (195) 247,375 247,180 195 Merger of Parent Company with Dominion Resources, Inc.......... -------- ----- -------- -------- ---- Balance at January 28, 2000.................... 247,180 (195) 247,375 247,180 195 Net income for the period January 28 through December 31, 2000....... 74,282 91 74,191 74,282 (91) Dividends declared on common stock--cash...... (19,200) 99 (19,299) (19,200) (99) -------- ----- -------- -------- ---- Balance at December 31, 2000.................... $302,262 $ (5) $302,267 $302,262 $ 5 ======== ===== ======== ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 75 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations E&P and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ---------- ------------ -------- -------- -------- Net income.................. $81,206 $137 $81,069 $81,206 $(137) Other comprehensive income, net of tax: Foreign currency translation adjustment.... Less: reclassification adjustment for losses realized in net income.... ------- ---- ------- ------- ----- Total foreign currency translation adjustment.... Minimum pension liability adjustment................ ------- ---- ------- ------- ----- Other comprehensive income (loss).................... ------- ---- ------- ------- ----- Comprehensive income........ $81,206 $137 $81,069 $81,206 $(137) ======= ==== ======= ======= =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 76 DOMINION EXPLORATION & PRODUCTION, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion E&P Eliminations and and Combined Dominion CNG Subsidiary Adjustments Total E&P Pipeline ------------ ------------ --------- --------- -------- Cash Flows From (Used In) Operating Activities Net income.............. $ 81,206 $ 137 $ 81,069 $ 81,206 $(137) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. (162) (162) (162) Restructuring and other merger-related costs.. 43,485 43,485 43,485 Loss on net assets held for sale.............. Sale of Virginia Natural Gas........... Depreciation and amortization.......... 288,084 288,084 287,996 88 Pension cost (credit)- net................... (5,682) (5,682) (5,682) Deferred income taxes- net................... 25,760 25,760 25,790 (30) Investment tax credit.. Changes in current assets and current liabilities: Accounts receivable... (72,565) (72,565) (72,588) 23 Receivables from affiliated companies............ (8,330) (75) (8,255) (8,309) 54 Inventories........... (1,047) (1,047) (1,047) Unrecovered gas costs................ Broker margin deposits............. (162,161) (162,161) (162,161) Prepayments........... (122) (122) (122) Other current assets.. (5,156) (5,156) (5,149) (7) Accounts payable, trade................ 51,620 51,620 51,630 (10) Payables to affiliated companies............ 7,142 75 7,067 7,088 (21) Estimated rate contingencies and refunds.............. Amounts payable to customers............ Accrued expenses...... 291 291 331 (40) Other-net............. 16,680 16,680 16,680 Changes in other assets and other liabilities.. 427 427 405 22 Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated........... (236) 236 236 Other-net............... --------- ----- --------- --------- ----- Net cash flows from (used in) operating activities........... 259,470 (99) 259,569 259,627 (58) --------- ----- --------- --------- ----- Cash Flows From (Used In) Investing Activities Plant construction and other property additions: Acquisition of exploration and production assets..... (217,957) (217,957) (217,957) Other.................. (352,077) (352,077) (352,077) Proceeds from sale of Virginia Natural Gas, net of cash sold....... Proceeds from sale of Argentine investments, net of cash sold....... Cost of other investments............ Intrasystem long-term financing-net.......... Intrasystem money pool investments-net........ 12,290 12,290 12,139 151 Property transfers to (from) affiliates...... (46) (46) (46) Other................... 5,578 5,578 5,578 --------- ----- --------- --------- ----- Net cash flows from (used in) investing activities........... (552,212) (552,212) (552,363) 151 --------- ----- --------- --------- ----- Cash Flows From (Used In) Financing Activities Repayments of long-term debt................... Issuance (repayment) of short-term debt........ Dividends paid.......... Intrasystem long-term financing-net.......... (4,450) (4,450) (4,450) Intrasystem money pool borrowings (repayments)-net....... 305,803 305,803 305,803 Dividends paid-- subsidiary companies-- consolidated........... (19,200) 99 (19,299) (19,200) (99) Purchase of treasury stock.................. Other................... --------- ----- --------- --------- ----- Net cash flows from (used in) financing activities........... 282,153 99 282,054 282,153 (99) --------- ----- --------- --------- ----- Increase (decrease) in cash and cash equivalents.......... (10,589) (10,589) (10,583) (6) Cash and cash equivalents at beginning of year...... 15,971 15,971 15,935 36 --------- ----- --------- --------- ----- Cash and cash equivalents at end of year................... $ 5,382 $ -- $ 5,382 $ 5,352 $ 30 ========= ===== ========= ========= =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 77 CNG POWER COMPANY CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG Granite Subsidiaries Adjustments Total Power CNGMCS Road ------------ ------------ -------- ------- ------ ------- ASSETS Current Assets Cash and cash equivalents............ $ 3 $ -- $ 3 $ 1 $ 2 $-- Accounts receivable: Customers, less allowance............. Other.................. Receivables from affiliated companies... 9,133 9,133 7,457 1,676 Inventories: Gas stored--current portion............... Materials and supplies.............. Unrecovered gas costs... Deferred income taxes-- current (net).......... Broker margin deposits.. Prepayments............. 1 1 1 Other................... 2 2 2 Net assets held for sale................... ------- ------- ------- ------- ------ ---- Total current assets.. 9,139 9,139 7,461 1,678 ------- ------- ------- ------- ------ ---- Investments Stocks of subsidiary companies, at equity-- consolidated........... (1,573) 1,573 1,573 Notes of subsidiary companies-- consolidated........... Other................... 1 1 1 ------- ------- ------- ------- ------ ---- Total investments..... 1 (1,573) 1,574 1,573 1 ------- ------- ------- ------- ------ ---- Property, Plant and Equipment Property, plant and equipment.............. 5,845 5,845 5,845 Less accumulated depreciation and amortization........... 3,012 3,012 3,012 ------- ------- ------- ------- ------ ---- Net property, plant and equipment........ 2,833 2,833 2,833 ------- ------- ------- ------- ------ ---- Deferred Charges and Other Assets Regulatory assets....... Prepaid pension cost.... Other................... ------- ------- ------- ------- ------ ---- Total deferred charges and other assets..... ------- ------- ------- ------- ------ ---- Total assets.......... $11,973 $(1,573) $13,546 $11,867 $1,678 $ 1 ======= ======= ======= ======= ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 78 CNG POWER COMPANY CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG Granite Subsidiaries Adjustments Total Power CNGMCS Road ------------ ------------ -------- ------- ------ ------- LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- $-- Accounts payable, trade.................. Estimated rate contingencies and refunds................ Payables to affiliated companies.............. 21 21 21 Customer deposits....... Accrued interest........ Accrued payroll......... Accrued taxes........... 925 925 819 106 Deferred income taxes-- current (net).......... Other................... ------- ------- ------- ------- ------ ---- Total current liabilities.......... 946 946 840 106 ------- ------- ------- ------- ------ ---- Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... ------- ------- ------- ------- ------ ---- Total long-term debt.. ------- ------- ------- ------- ------ ---- Deferred Credits and Other Liabilities Deferred income taxes... 797 797 797 Deferred investment tax credits................ Other................... ------- ------- ------- ------- ------ ---- Total deferred credits and other liabilities.......... 797 797 797 ------- ------- ------- ------- ------ ---- Commitments and Contingencies Common Stockholder's Equity Common stock............ 8,360 (101) 8,461 8,360 100 1 Other capital........... Retained earnings....... 1,870 (1,472) 3,342 1,870 1,472 Accumulated other comprehensive income... ------- ------- ------- ------- ------ ---- Total common stockholder's equity............... 10,230 (1,573) 11,803 10,230 1,572 1 ------- ------- ------- ------- ------ ---- Total liabilities and stockholder's equity............... $11,973 $(1,573) $13,546 $11,867 $1,678 $ 1 ======= ======= ======= ======= ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 79 CNG POWER COMPANY CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG CNG Bear Granite Subsidiaries Adjustments Total Power CNGMCS Mountain Road ------------ ------------ -------- ------ ------ -------- ------- Operating revenue and income: Regulated gas sales.... $ -- $ -- $ -- $ -- $-- $-- $-- Nonregulated gas sales................. Gas transportation and storage............... Oil and gas production............ Other.................. 3,627 3,627 3,627 ------ ----- ------ ------ ---- ---- ---- Total................. 3,627 3,627 3,627 ------ ----- ------ ------ ---- ---- ---- Expenses: Purchased gas.......... Liquids, capacity and other products purchased............. 2,085 2,085 2,085 Restructuring and other merger-related costs.. Operation and maintenance........... 361 361 357 4 Depreciation and amortization.......... 207 207 207 Other taxes............ 64 64 77 (13) ------ ----- ------ ------ ---- ---- ---- Total................. 2,717 2,717 2,726 (9) ------ ----- ------ ------ ---- ---- ---- Income from operations.. 910 910 901 9 ------ ----- ------ ------ ---- ---- ---- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. Equity in earnings of subsidiary companies-- consolidated.......... (124) 124 124 Interest revenue from affiliated companies-- consolidated.......... 472 472 386 86 Other.................. 69 69 1 68 ------ ----- ------ ------ ---- ---- ---- Total other income and expense.............. 541 (124) 665 511 154 ------ ----- ------ ------ ---- ---- ---- Income before interest and income taxes....... 1,451 (124) 1,575 1,412 163 Interest charges........ ------ ----- ------ ------ ---- ---- ---- Income before income taxes.................. 1,451 (124) 1,575 1,412 163 Income tax expense...... 406 406 367 39 ------ ----- ------ ------ ---- ---- ---- Income before cumulative effect of a change in accounting principle... 1,045 (124) 1,169 1,045 124 Cumulative effect of a change in accounting principle (net of income taxes).......... ------ ----- ------ ------ ---- ---- ---- Net income.............. $1,045 $(124) $1,169 $1,045 $124 $ $ ====== ===== ====== ====== ==== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 80 CNG POWER COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG CNG Bear Granite Subsidiaries Adjustments Total Power CNGMCS Mountain Road ------------ ------------ -------- ------ ------ -------- ------- Retained Earnings Balance at December 31, 1999................... $ 825 $(1,360) $2,185 $ 825 $1,348 $ 12 $-- Net income for the period January 1 through January 27, 2000................... 173 (103) 276 173 103 ------ ------- ------ ------ ------ ---- ---- Total.................. 998 (1,463) 2,461 998 1,451 12 Merger of Parent Company with Dominion Resources, Inc......... ------ ------- ------ ------ ------ ---- ---- Balance at January 28, 2000................... 998 (1,463) 2,461 998 1,451 12 Net income for the period January 28 through December 31, 2000................... 872 (21) 893 872 21 Dissolution of CNG Bear Mountain............... 12 (12) (12) Dividends declared on common stock--cash..... ------ ------- ------ ------ ------ ---- ---- Balance at December 31, 2000................... $1,870 $(1,472) $3,342 $1,870 $1,472 $-- $-- ====== ======= ====== ====== ====== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 81 CNG POWER COMPANY CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG CNG Bear Granite Subsidiaries Adjustments Total Power CNGMCS Mountain Road ------------ ------------ -------- ------ ------ -------- ------- Net income.............. $1,045 $(124) $1,169 $1,045 $124 $-- $-- Other comprehensive income, net of tax: Foreign currency translation adjustment............ Less: reclassification adjustment for losses realized in net income................ ------ ----- ------ ------ ---- ---- ---- Total foreign currency translation adjustment............ Minimum pension liability adjustment.. ------ ----- ------ ------ ---- ---- ---- Other comprehensive income (loss)......... ------ ----- ------ ------ ---- ---- ---- Comprehensive income.... $1,045 $(124) $1,169 $1,045 $124 $-- $-- ====== ===== ====== ====== ==== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 82 CNG POWER COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
CNG Power Eliminations and and Combined CNG CNG Bear Granite CNG Subsidiaries Adjustments Total Power CNGMCS Mountain Road Kauai ------------ ------------ -------- ------- ------ -------- ------- ----- Cash Flows From (Used In) Operating Activities Net income............... $ 1,045 $(124) $ 1,169 $ 1,045 $ 124 $-- $-- $-- Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle.............. Restructuring and other merger-related costs... 9 9 9 Loss on net assets held for sale............... Sale of Virginia Natural Gas.................... Depreciation and amortization........... 207 207 207 Pension cost (credit)- net.................... Deferred income taxes- net.................... 33 33 32 1 Investment tax credit... Changes in current assets and current liabilities: Accounts receivables.... 1,862 1,862 1,862 Receivables from affiliated companies... 182 (35) 217 187 (5) 35 Inventories............. 36 36 36 Unrecovered gas costs... Broker margin deposits............... Prepayments............. (1) (1) (1) Other current assets.... Accounts payable, trade.................. (381) (381) (381) Payables to affiliated companies.............. (96) 35 (131) (130) (1) Estimated rate contingencies and refunds................ Amounts payable to customers.............. Accrued expenses........ (10) (10) 9 (5) (14) Other-net............... Changes in other assets and other liabilities... (67) (67) (67) Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated............ 124 (124) (124) Other--net............... ------- ----- ------- ------- ----- ---- ---- ---- Net cash flows from (used in) operating activities........... 2,819 2,819 2,751 47 21 ------- ----- ------- ------- ----- ---- ---- ---- Cash Flows From (Used In) Investing Activities Plant construction and other property additions............... Proceeds from sale of Virginia Natural Gas, net of cash sold........ Proceeds from sale of Argentine investments, net of cash sold........ Cost of other investments............. 679 679 679 Intrasystem long-term financing-net........... (21) 21 21 Intrasystem money pool investments-net......... (3,496) (3,496) (2,772) (724) Property transfers to (from) affiliates....... Other.................... ------- ----- ------- ------- ----- ---- ---- ---- Net cash flows from (used in) investing activities........... (2,817) (21) (2,796) (2,751) (45) ------- ----- ------- ------- ----- ---- ---- ---- Cash Flows From (Used In) Financing Activities Repayments of long-term debt.................... Issuance (repayment) of short-term debt......... Dividends paid........... Intrasystem long-term financing-net........... 21 (21) (21) Intrasystem money pool borrowings (repayments)- net..................... Dividends paid-- subsidiary companies-- consolidated............ Purchase of treasury stock................... Other.................... ------- ----- ------- ------- ----- ---- ---- ---- Net cash flows from (used in) financing activities........... 21 (21) (21) ------- ----- ------- ------- ----- ---- ---- ---- Increase (decrease) in cash and cash equivalents.......... 2 2 2 Cash and cash equivalents at beginning of year.... 1 1 1 ------- ----- ------- ------- ----- ---- ---- ---- Cash and cash equivalents at end of year.......... $ 3 $ -- $ 3 $ 1 $ 2 $-- $-- $-- ======= ===== ======= ======= ===== ==== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 83 CNG INTERNATIONAL CORPORATION CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
Eliminations CNG CNG CNGI and and Combined Cayman Cayman CNG Subsidiaries Adjustments Total CNGI One Three Kauai ------------ ------------ -------- -------- ------ ------ ------ Assets Current Assets Cash and cash equivalents............ $ 203 $ -- $ 203 $ 193 $-- $-- $ 10 Accounts receivable: Customers, less allowance............. Other.................. Receivables from affiliated companies... 138,161 138,161 138,161 Inventories: Gas stored--current portion............... Materials and supplies.............. Unrecovered gas costs... Deferred income taxes-- current (net).......... Broker margin deposits.. Prepayments............. 3 3 3 Other................... (6) (6) (6) Net assets held for sale................... -------- ------- -------- -------- ---- ---- ------ Total current assets... 138,361 138,361 138,351 10 -------- ------- -------- -------- ---- ---- ------ Investments Stocks of subsidiary companies, at equity-- consolidated........... (2,486) 2,486 2,486 Notes of subsidiary companies-- consolidated........... Other................... 66,848 66,848 64,372 2,476 -------- ------- -------- -------- ---- ---- ------ Total investments...... 66,848 (2,486) 69,334 66,858 2,476 -------- ------- -------- -------- ---- ---- ------ Property, Plant and Equipment Property, plant and equipment.............. 816 816 816 Less accumulated depreciation and amortization........... 616 616 616 -------- ------- -------- -------- ---- ---- ------ Net property, plant and equipment............. 200 200 200 -------- ------- -------- -------- ---- ---- ------ Deferred Charges and Other Assets Regulatory assets....... Prepaid pension cost.... Other................... 64 64 64 -------- ------- -------- -------- ---- ---- ------ Total deferred charges and other assets...... 64 64 64 -------- ------- -------- -------- ---- ---- ------ Total assets........... $205,473 $(2,486) $207,959 $205,473 $-- $-- $2,486 ======== ======= ======== ======== ==== ==== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 84 CNG INTERNATIONAL CORPORATION CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Eliminations CNG CNG CNGI and and Combined Cayman Cayman CNG Subsidiaries Adjustments Total CNGI One Three Kauai ------------ ------------ --------- --------- ------ ------ ------ LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $-- $-- $ -- Accounts payable, trade.................. 47 47 47 Estimated rate contingencies and refunds................ Payables to affiliated companies.............. 1,032 1,032 1,032 Customer deposits....... Accrued interest........ Accrued payroll......... Accrued taxes........... 1,103 1,103 1,103 Deferred income taxes-- current (net).......... Other................... 102,635 102,635 102,635 --------- ------- --------- --------- ---- ---- ------ Total current liabilities........... 104,817 104,817 104,817 --------- ------- --------- --------- ---- ---- ------ Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... 15,000 15,000 15,000 --------- ------- --------- --------- ---- ---- ------ Total long-term debt... 15,000 15,000 15,000 --------- ------- --------- --------- ---- ---- ------ Deferred Credits and Other Liabilities Deferred income taxes... (40,678) (40,678) (40,678) Deferred investment tax credits................ Other................... 1,694 1,694 1,694 --------- ------- --------- --------- ---- ---- ------ Total deferred credits and other liabilities........... (38,984) (38,984) (38,984) --------- ------- --------- --------- ---- ---- ------ Commitments and Contingencies Common Stockholder's Equity Common stock............ 238,550 (10) 238,560 238,550 10 Other capital........... (2,476) 2,476 2,476 Retained earnings....... (113,910) (113,910) (113,910) Accumulated other comprehensive income... --------- ------- --------- --------- ---- ---- ------ Total common stockholder's equity.. 124,640 (2,486) 127,126 124,640 2,486 --------- ------- --------- --------- ---- ---- ------ Total liabilities and stockholder's equity.. $ 205,473 $(2,486) $ 207,959 $ 205,473 $-- $-- $2,486 ========= ======= ========= ========= ==== ==== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 85 CNG INTERNATIONAL CORPORATION CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
CNG CNG Eliminations Cayman Cayman CNGI and and Combined One Three CNG Subsidiaries Adjustments Total CNGI (Page 90) (Page 94) Kauai ------------ ------------ --------- --------- --------- --------- ----- Operating revenue and income: Regulated gas sales.... $ -- $ -- $ -- $ -- $ -- $ -- $-- Nonregulated gas sales................. Gas transportation and storage............... Oil and gas production............ Other.................. 102 102 102 --------- ------- --------- --------- ------ -------- ---- Total.................. 102 102 102 --------- ------- --------- --------- ------ -------- ---- Expenses: Purchased gas.......... Liquids, capacity and other products purchased............. Restructuring and other merger-related costs.. 3,110 3,110 3,110 Operation and maintenance........... 5,225 5,225 4,391 834 Depreciation and amortization.......... 134 134 134 Other taxes............ 192 192 184 8 --------- ------- --------- --------- ------ -------- ---- Total.................. 8,661 8,661 7,819 842 --------- ------- --------- --------- ------ -------- ---- Income from operations.. (8,559) (8,559) (7,717) (842) --------- ------- --------- --------- ------ -------- ---- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. (152,340) (152,340) (135,100) (17,240) Equity in earnings of subsidiary companies-- consolidated.......... 15,379 (15,379) (15,379) Interest revenue from affiliated companies-- consolidated.......... 2,008 2,008 2,008 Other.................. 3,120 3,120 417 1,107 1,596 --------- ------- --------- --------- ------ -------- ---- Total other income and expense............... (147,212) 15,379 (162,591) (148,054) 1,107 (15,644) --------- ------- --------- --------- ------ -------- ---- Income before interest and income taxes....... (155,771) 15,379 (171,150) (155,771) 1,107 (16,486) Interest charges........ 1,743 1,743 1,743 --------- ------- --------- --------- ------ -------- ---- Income before income taxes.................. (157,514) 15,379 (172,893) (157,514) 1,107 (16,486) Income tax expense...... (53,796) (53,796) (53,796) --------- ------- --------- --------- ------ -------- ---- Income before cumulative effect of a change in accounting principle... (103,718) 15,379 (119,097) (103,718) 1,107 (16,486) Cumulative effect of a change in accounting principle (net of income taxes).......... (6) (6) (6) --------- ------- --------- --------- ------ -------- ---- Net income.............. $(103,712) $15,379 $(119,091) $(103,712) $1,107 $(16,486) $-- ========= ======= ========= ========= ====== ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 86 CNG INTERNATIONAL CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
CNG CNG Eliminations Cayman Cayman CNGI and and Combined One Three CNG Subsidiaries Adjustments Total CNGI (Page 91) (Page 95) Kauai ------------ ------------ --------- --------- --------- --------- ----- Retained Earnings Balance at December 31, 1999................... $ (10,198) $(14,834) $ 4,636 $ (10,198) $ 2,282 $ 12,552 $-- Net income for the period January 1 through January 27, 2000................... (267) 37 (304) (267) (37) --------- -------- --------- --------- ------- -------- ---- Total.................. (10,465) (14,797) 4,332 (10,465) 2,282 12,515 Merger of Parent Company with Dominion Resources, Inc......... --------- -------- --------- --------- ------- -------- ---- Balance at January 28, 2000................... (10,465) (14,797) 4,332 (10,465) 2,282 12,515 Net income for the period January 28 through December 31, 2000................... (103,445) 15,342 (118,787) (103,445) 1,107 (16,449) Sale of CNG Cayman Three by CNG International... (3,934) 3,934 3,934 Dividends declared on common stock--cash..... 3,389 (3,389) (3,389) --------- -------- --------- --------- ------- -------- ---- Balance at December 31, 2000................... $(113,910) $ -- $(113,910) $(113,910) $ -- $ -- $-- ========= ======== ========= ========= ======= ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 87 CNG INTERNATIONAL CORPORATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
CNG CNG Eliminations Cayman Cayman CNGI and and Combined One Three CNG Subsidiaries Adjustments Total CNGI (Page 92) (Page 96) Kauai ------------ ------------ --------- --------- --------- --------- ----- Net income.............. $(103,712) $15,379 $(119,091) $(103,712) $ 1,107 $(16,486) $-- Other comprehensive income, net of tax: Foreign currency translation adjustment............ (1,077) 1,077 (2,154) (1,077) (1,077) Less: reclassification adjustment for losses realized in net income................ 3,637 (3,637) 7,274 3,637 3,637 --------- ------- --------- --------- ------- -------- ---- Total foreign currency translation adjustment............ 2,560 (2,560) 5,120 2,560 2,560 Minimum pension liability adjustment.. 0 0 0 0 0 --------- ------- --------- --------- ------- -------- ---- Other comprehensive income (loss)......... 2,560 (2,560) 5,120 2,560 2,560 --------- ------- --------- --------- ------- -------- ---- Comprehensive income.... $(101,152) $12,819 $(113,971) $(101,152) $ 3,667 $(16,486) $-- ========= ======= ========= ========= ======= ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 88 CNG INTERNATIONAL CORPORATION CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
CNG CNG Cayman One Cayman Three CNGI Eliminations and and and and Combined Subsidiary Subsidiary CNG Subsidiaries Adjustments Total CNGI (Page 93) (Page 97) Kauai ------------ ------------ --------- --------- ---------- ------------ ----- Cash Flows From (Used In) Operating Activities Net income............. $(103,712) $ 15,379 $(119,091) $(103,712) $ 1,107 $(16,486) $-- Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............ (6) (6) (6) Restructuring and other merger-related costs................ 1,423 1,423 1,423 Loss on net assets held for sale........ 152,340 152,340 135,100 17,240 Sale of Virginia Natural Gas.......... Depreciation and amortization......... 134 134 134 Pension cost (credit)--net........ (13) (13) (13) Deferred income taxes--net........... (48,261) (48,261) (48,261) Investment tax credit............... Changes in current assets and current liabilities: Accounts receivable... 665 665 147 518 Receivables from affiliated companies............ (1,127) (26) (1,101) (1,101) Inventories........... Unrecovered gas costs................ Broker margin deposits............. Prepayments........... 3 3 3 Other current assets............... 7 7 7 Accounts payable, trade................ (195) (195) (129) (56) (10) Payables to affiliated companies............ 613 26 587 613 (26) Estimated rate contingencies and refunds.............. Amounts payable to customers............ Accrued expenses...... 529 529 400 124 5 Other--net............ 1,817 1,817 1,817 Changes in other assets and other liabilities.......... 147,661 147,661 150,890 (1,231) (1,998) Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated......... (15,379) 15,379 15,379 Other--net............ --------- -------- --------- --------- ------- -------- ---- Net cash from (used in) operating activities......... 151,878 151,878 152,691 (803) (10) --------- -------- --------- --------- ------- -------- ---- Cash Flows From (Used In) Investing Activities Plant construction and other property additions............. 3 3 3 Proceeds from sale of Virginia Natural Gas, net of cash sold...... Proceeds from sale of Argentine investments, net of cash sold...... Cost of other investments........... (6,059) (6,059) (6,059) Intrasystem long-term financing--net........ Intrasystem money pool investments--net...... (137,030) (137,030) (137,030) Property transfers to (from) affiliates..... Other.................. --------- -------- --------- --------- ------- -------- ---- Net cash from (used in) investing activities......... (143,086) (143,086) (143,086) --------- -------- --------- --------- ------- -------- ---- Cash Flows From (Used In ) Financing Activities Repayments of long-term debt.................. Issuance (repayment) of short-term debt....... Dividends paid......... Intrasystem long-term financing-net......... Intrasystem money pool borrowings (repayments)--net..... (9,835) (9,835) (9,835) Dividends paid-- subsidiary companies-- consolidated.......... Purchase of treasury stock................. Other.................. --------- -------- --------- --------- ------- -------- ---- Net cash from (used in) financing activities......... (9,835) (9,835) (9,835) --------- -------- --------- --------- ------- -------- ---- Increase (decrease) in cash and cash equivalents........ (1,043) (1,043) (230) (803) (10) Cash and cash equivalents at beginning of year..... 1,246 1,246 423 803 20 --------- -------- --------- --------- ------- -------- ---- Cash and cash equivalents at end of year.................. $ 203 $ -- $ 203 $ 193 $ -- $ -- $ 10 ========= ======== ========= ========= ======= ======== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 89 CNG CAYMAN ONE LTD. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
CNG Cayman One Eliminations CNG CNGI and and Combined Cayman Australia Subsidiary Adjustments Total One Pty Ltd. ---------- ------------ -------- ------ --------- Operating revenue and income: Regulated gas sales......... $ -- $ -- $ -- $ -- $ -- Nonregulated gas sales...... Gas transportation and storage.................... Oil and gas production...... Other....................... ------ ------- ------ ------ ------ Total...................... ------ ------- ------ ------ ------ Expenses: Purchased gas............... Liquids, capacity and other products purchased......... Restructuring and other merger-related costs....... Operation and maintenance... Depreciation and amortization............... Other taxes................. ------ ------- ------ ------ ------ Total...................... ------ ------- ------ ------ ------ Income from operations....... ------ ------- ------ ------ ------ Other income and expense: Gain on sale of Virginia Natural Gas................ Loss on net assets held for sale....................... Equity in earnings of subsidiary company-- consolidated............... (1,107) 1,107 1,107 Interest revenue from affiliated companies-- consolidated............... Other....................... 1,107 1,107 1,107 ------ ------- ------ ------ ------ Total other income and expense................... 1,107 (1,107) 2,214 1,107 1,107 ------ ------- ------ ------ ------ Income before interest and income taxes................ 1,107 (1,107) 2,214 1,107 1,107 Interest charges............. ------ ------- ------ ------ ------ Income before income taxes... 1,107 (1,107) 2,214 1,107 1,107 Income tax expense........... ------ ------- ------ ------ ------ Income before cumulative effect of a change in accounting principle........ 1,107 (1,107) 2,214 1,107 1,107 Cumulative effect of a change in accounting principle (net of income taxes)............ ------ ------- ------ ------ ------ Net income................... $1,107 $(1,107) $2,214 $1,107 $1,107 ====== ======= ====== ====== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 90 CNG CAYMAN ONE LTD. CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
CNG Cayman One Eliminations CNG CNGI and and Combined Cayman Australia Subsidiary Adjustments Total One Pty Ltd. ---------- ------------ -------- ------- --------- Retained Earnings Balance at December 31, 1999.................... $ 2,282 $(2,282) $ 4,564 $ 2,282 $ 2,282 Net income for the period January 1 through January 27, 2000........ ------- ------- ------- ------- ------- Total.................. 2,282 (2,282) 4,564 2,282 2,282 Merger of Parent Company with Dominion Resources, Inc..................... ------- ------- ------- ------- ------- Balance at January 28, 2000.................... 2,282 (2,282) 4,564 2,282 2,282 Net income for the period January 28 through December 31, 2000....... 1,107 (1,107) 2,214 1,107 1,107 Transfer of CNG Cayman One assets to investment in CNG Cayman Two....... 3,389 (3,389) (3,389) Dividends declared on common stock--cash...... (3,389) (3,389) (3,389) ------- ------- ------- ------- ------- Balance at December 31, 2000.................... $ -- $ -- $ -- $ -- $ -- ======= ======= ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 91 CNG CAYMAN ONE LTD. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
CNG Cayman Eliminations CNG CNGI One and and Combined Cayman Australia Subsidiary Adjustments Total One Pty Ltd. ---------- ------------ -------- ------- --------- Net income................. $ 1,107 $(1,107) $ 2,214 $ 1,107 $ 1,107 Other comprehensive income, net of tax: Foreign currency translation adjustment... (1,077) 1,077 (2,154) (1,077) (1,077) Less: reclassification adjustment for losses realized in net income... 3,637 (3,637) 7,274 3,637 3,637 ------- ------- ------- ------- ------- Total foreign currency translation adjustment... 2,560 (2,560) 5,120 2,560 2,560 Minimum pension liability adjustment............... ------- ------- ------- ------- ------- Other comprehensive income (loss)................... 2,560 (2,560) 5,120 2,560 2,560 ------- ------- ------- ------- ------- Comprehensive income....... $ 3,667 $(3,667) $ 7,334 $ 3,667 $ 3,667 ======= ======= ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 92 CNG CAYMAN ONE LTD. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
CNG Cayman One Eliminations CNGI and and Combined CNG Australia Subsidiary Adjustments Total Cayman One Pty Ltd. ---------- ------------ -------- ---------- --------- Cash Flows From (Used In) Operating Activities Net income............... $ 1,107 $(1,107) $ 2,214 $ 1,107 $ 1,107 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle.............. Restructuring and other merger-related costs... Loss on net assets held for sale............... Sale of Virginia Natural Gas.................... Depreciation and amortization........... Pension cost (credit)-- net.................... Deferred income taxes-- net.................... Investment tax credit... Changes in current assets and current liabilities: Accounts receivable..... Receivables from affiliated companies... Inventories............. Unrecovered gas costs... Broker margin deposits............... Prepayments............. Other current assets.... Accounts payable, trade.................. Payables to affiliated companies.............. Estimated rate contingencies and refunds................ Amounts payable to customers.............. Accrued expenses........ 124 124 124 Other--net.............. Changes in other assets and other liabilities.. (1,231) (1,231) (1,231) Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated........... 1,107 (1,107) (1,107) Other-net............... ------- ------- ------- ------- ------- Net cash flows from (used in) operating activities........... ------- ------- ------- ------- ------- Cash Flows From (Used In) Investing Activities Plant construction and other property additions............... Proceeds from sale of Virginia Natural Gas, net of cash sold........ Proceeds from sale of Argentine investments, net of cash sold........ Cost of other investments............. Intrasystem long-term financing--net.......... Intrasystem money pool investments--net........ Property transfers to (from) affiliates....... Other.................... ------- ------- ------- ------- ------- Net cash flows from (used in) investing activities........... ------- ------- ------- ------- ------- Cash Flows From (Used In) Financing Activities Repayments of long-term debt.................... Issuance (repayment) of short-term debt......... Dividends paid........... Intrasystem long-term financing--net.......... Intrasystem money pool borrowings (repayments)--net....... Dividends paid-- subsidiary companies-- consolidated............ Purchase of treasury stock................... Other.................... ------- ------- ------- ------- ------- Net cash flows from (used in) financing activities........... ------- ------- ------- ------- ------- Increase (decrease) in cash and cash equivalents.......... Cash and cash equivalents at beginning of year.... ------- ------- ------- ------- ------- Cash and cash equivalents at end of year.......... $ -- $ -- $ -- $ -- $ -- ======= ======= ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 93 CNG CAYMAN THREE LTD. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
CNG Cayman Eliminations CNG CNG Three and and Combined Cayman Argentina Subsidiary Adjustments Total Three S.A. ---------- ------------ -------- -------- --------- Operating revenue and income: Regulated gas sales.... $ -- $-- $ -- $ -- $ -- Nonregulated gas sales................. Gas transportation and storage............... Oil and gas production............ Other.................. -------- ---- -------- -------- ----- Total................. -------- ---- -------- -------- ----- Expenses: Purchased gas.......... Liquids, capacity and other products purchased............. Restructuring and other merger-related costs.. Operation and maintenance........... 834 834 33 801 Depreciation and amortization.......... Other taxes............ 8 8 8 -------- ---- -------- -------- ----- Total................. 842 842 33 809 -------- ---- -------- -------- ----- Income from operations.. (842) (842) (33) (809) -------- ---- -------- -------- ----- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. (17,240) (17,240) (17,240) Equity in earnings of subsidiary company-- consolidated.......... 809 (809) (809) Interest revenue from affiliated companies-- consolidated.......... Other.................. 1,596 1,596 1,596 -------- ---- -------- -------- ----- Total other income and expense.............. (15,644) 809 (16,453) (16,453) -------- ---- -------- -------- ----- Income before interest and income taxes....... (16,486) 809 (17,295) (16,486) (809) Interest charges........ -------- ---- -------- -------- ----- Income before income taxes.................. (16,486) 809 (17,295) (16,486) (809) Income tax expense...... -------- ---- -------- -------- ----- Income before cumulative effect of a change in accounting principle... (16,486) 809 (17,295) (16,486) (809) Cumulative effect of a change in accounting principle (net of income taxes).......... -------- ---- -------- -------- ----- Net income.............. $(16,486) $809 $(17,295) $(16,486) $(809) ======== ==== ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 94 CNG CAYMAN THREE LTD. CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
CNG Cayman Eliminations CNG CNG Three and and Combined Cayman Argentina Subsidiary Adjustments Total Three S.A. ---------- ------------ -------- -------- --------- Retained Earnings Balance at December 31, 1999................... $ 12,552 $(667) $ 13,219 $ 12,552 $ 667 Net income for the period January 1 through January 27, 2000................... (37) 37 (74) (37) (37) -------- ----- -------- -------- ----- Total................. 12,515 (630) 13,145 12,515 630 Merger of Parent Company with Dominion Resources, Inc......... -------- ----- -------- -------- ----- Balance at January 28, 2000................... 12,515 (630) 13,145 12,515 630 Net income for the period January 28 through December 31, 2000................... (16,449) 772 (17,221) (16,449) (772) Sale of CNG Cayman Three by CNG International... 3,934 (142) 4,076 3,934 142 Dividends declared on common stock--cash..... -------- ----- -------- -------- ----- Balance at December 31, 2000................... $ -- $ -- $ -- $ -- $ -- ======== ===== ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 95 CNG CAYMAN THREE LTD. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
CNG Cayman Eliminations CNG CNG Three and and Combined Cayman Argentina Subsidiary Adjustments Total Three S.A. ---------- ------------ -------- -------- --------- Net income............... $(16,486) $809 $(17,295) $(16,486) $(809) Other comprehensive income, net of tax: Foreign currency translation adjustment............. Less: reclassification adjustment for losses realized in net income................. -------- ---- -------- -------- ----- Total foreign currency translation adjustment............ Minimum pension liability adjustment... -------- ---- -------- -------- ----- Other comprehensive income (loss)......... -------- ---- -------- -------- ----- Comprehensive income..... $(16,486) $809 $(17,295) $(16,486) $(809) ======== ==== ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 96 CNG CAYMAN THREE LTD. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
CNG Cayman Three Eliminations CNG and and Combined CNG Arentina Subsidiary Adjustments Total Cayman Three S.A. ------------ ------------ -------- ------------ -------- Cash Flows From (Used In) Operating Activities Net income............... $(16,486) $ 809 $(17,295) $(16,486) $(809) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle.............. Restructuring and other merger-related costs... Loss on net assets held for sale............... 17,240 17,240 17,240 Sale of Virginia Natural Gas.................... Depreciation and amortization........... Pension cost (credit)-- net.................... Deferred income taxes- net.................... Investment tax credit... Changes in current assets and current liabilities: Accounts receivable..... 518 518 518 Receivables from affiliated companies... Inventories............. Unrecovered gas costs... Broker margin deposits............... Prepayments............. Other current assets.... Accounts payable, trade.................. (56) (56) (56) Payables to affiliated companies.............. (26) (26) (26) Estimated rate contingencies and refunds................ Amounts payable to customers.............. Accrued expenses........ 5 5 5 Other--net.............. Changes in other assets and other liabilities... (1,998) (1,998) (1,828) (170) Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated............ (809) 809 809 Other--net............... -------- ----- -------- -------- ----- Net cash flows from (used in) operating activities........... (803) (803) (291) (512) -------- ----- -------- -------- ----- Cash Flows From (Used In) Investing Activities Plant construction and other property additions............... Proceeds from sale of Virginia Natural Gas, net of cash sold........ Proceeds from sale of Argentine investments, net of cash sold........ Cost of other investments............. Intrasystem long-term financing-net........... Intrasystem money pool investments-net......... Property transfers to (from) affiliates....... Other.................... -------- ----- -------- -------- ----- Net cash flows from (used in) investing activities........... -------- ----- -------- -------- ----- Cash Flows From (Used In) Financing Activities Repayments of long-term debt.................... Issuance (repayment) of short-term debt......... Dividends paid........... Intrasystem long-term financing-net........... Intrasystem money pool borrowings (repayments)- net..................... Dividends paid-- subsidiary companies-- consolidated............ Purchase of treasury stock................... Other.................... -------- ----- -------- -------- ----- Net cash flows from (used in) financing activities........... -------- ----- -------- -------- ----- Increase (decrease) in cash and cash equivalents.......... (803) (803) (291) (512) Cash and cash equivalents at beginning of year.... 803 803 291 512 -------- ----- -------- -------- ----- Cash and cash equivalents at end of year.......... $ -- $ -- $ -- $ -- $ -- ======== ===== ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 97 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING BALANCE SHEET At December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ ASSETS Current Assets Cash and cash equivalents............ $ 28 $ -- $ 28 $ 27 $ 1 Accounts receivable: Customers, less allowance............ 1,139 1,139 1,139 Other................. Receivables from affiliated companies... 3,241 3,241 3,070 171 Inventories: Gas stored--current portion.............. Materials and supplies............. Unrecovered gas costs... Deferred income taxes-- current (net).......... Broker margin deposits.. Prepayments............. 1 1 1 Other................... Net assets held for sale................... ------ ----- ------ ------ ---- Total current assets............. 4,409 4,409 4,237 172 ------ ----- ------ ------ ---- Investments Stock of subsidiary company, at equity-- consolidated........... (579) 579 579 Notes of subsidiary company--consolidated.. Other................... ------ ----- ------ ------ ---- Total investments... (579) 579 579 ------ ----- ------ ------ ---- Property, Plant and Equipment Property, plant and equipment.............. Less accumulated depreciation and amortization........... ------ ----- ------ ------ ---- Net property, plant and equipment...... ------ ----- ------ ------ ---- Deferred Charges and Other Assets Regulatory assets....... Prepaid pension cost.... Other................... ------ ----- ------ ------ ---- Total deferred charges and other assets............. ------ ----- ------ ------ ---- Total assets........ $4,409 $(579) $4,988 $4,816 $172 ====== ===== ====== ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 98 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING BALANCE SHEET--(Continued) At December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities Short-term debt......... $ -- $ -- $ -- $ -- $ -- Accounts payable, trade.................. 451 451 451 Estimated rate contingencies and refunds................ Payables to affiliated companies.............. 610 610 610 Customer deposits....... Accrued interest........ Accrued payroll......... Accrued taxes........... 665 665 727 (62) Deferred income taxes-- current (net).......... Other................... 1,838 1,838 1,838 ------- ------- ------- ------- ------- Total current liabilities.......... 3,564 3,564 3,626 (62) ------- ------- ------- ------- ------- Long-term Debt Debentures and notes.... Notes payable to Registrant-- consolidated........... ------- ------- ------- ------- ------- Total long-term debt.. ------- ------- ------- ------- ------- Deferred Credits and Other Liabilities Deferred income taxes... (1,121) (1,121) (776) (345) Deferred investment tax credits................ Other................... 208 208 208 ------- ------- ------- ------- ------- Total deferred credits and other liabilities.......... (913) (913) (568) (345) ------- ------- ------- ------- ------- Commitments and Contingencies Common Stockholder's Equity Common stock............ 3,990 (2,000) 5,990 3,990 2,000 Other capital........... Retained earnings....... (2,232) 1,421 (3,653) (2,232) (1,421) Accumulated other comprehensive income... ------- ------- ------- ------- ------- Total common stockholder's equity............... 1,758 (579) 2,337 1,758 579 ------- ------- ------- ------- ------- Total liabilities and stockholder's equity............... $ 4,409 $ (579) $ 4,988 $ 4,816 $ 172 ======= ======= ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 99 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ Operating revenue and income: Regulated gas sales.... $ -- $-- $ -- $ -- $-- Nonregulated gas sales................. Gas transportation and storage............... Oil and gas production............ Other.................. 9,907 9,907 9,907 ------ ---- ------ ------ ---- Total................. 9,907 9,907 9,907 ------ ---- ------ ------ ---- Expenses: Purchased gas.......... Liquids, capacity and other products purchased............. Restructuring and other merger-related costs.. Operation and maintenance........... 7,425 7,425 7,425 Depreciation and amortization.......... Other taxes............ 16 16 16 ------ ---- ------ ------ ---- Total................. 7,441 7,441 7,441 ------ ---- ------ ------ ---- Income from operations.. 2,466 2,466 2,466 ------ ---- ------ ------ ---- Other income and expense: Gain on sale of Virginia Natural Gas.. Loss on net assets held for sale.............. Equity in earnings of subsidiary company-- consolidated.......... 33 (33) (33) Interest revenue from affiliated companies-- consolidated.......... 132 132 122 10 Other.................. 17 17 (2) 19 ------ ---- ------ ------ ---- Total other income and expense.............. 149 33 116 87 29 ------ ---- ------ ------ ---- Income before interest and income taxes....... 2,615 33 2,582 2,553 29 Interest charges........ ------ ---- ------ ------ ---- Income before income taxes.................. 2,615 33 2,582 2,553 29 Income tax expense...... 916 916 854 62 ------ ---- ------ ------ ---- Income before cumulative effect of a change in accounting principle... 1,699 33 1,666 1,699 (33) Cumulative effect of a change in accounting principle (net of income taxes).......... ------ ---- ------ ------ ---- Net income.............. $1,699 $ 33 $1,666 $1,699 $(33) ====== ==== ====== ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 100 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING STATEMENT OF RETAINED EARNINGS For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ Retained Earnings Balance at December 31, 1999................... $(3,931) $1,389 $(5,320) $(3,931) $(1,389) Net income for the period January 1 through January 27, 2000................... 58 1 57 58 (1) ------- ------ ------- ------- ------- Total................. (3,873) 1,390 (5,263) (3,873) (1,390) Merger of Parent Company with Dominion Resources, Inc. ....... ------- ------ ------- ------- ------- Balance at January 28, 2000................... (3,873) 1,390 (5,263) (3,873) (1,390) Net income for the period January 28 through December 31, 2000................... 1,641 32 1,609 1,641 (32) Dividends declared on common stock--cash..... ------- ------ ------- ------- ------- Balance at December 31, 2000................... $(2,232) $1,422 $(3,654) $(2,232) $(1,422) ======= ====== ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 101 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ Net income.............. $1,699 $33 $1,666 $1,699 $(33) Other comprehensive income, net of tax: Foreign currency translation adjustment............ Less: reclassification adjustment for losses realized in net income................ ------ --- ------ ------ ---- Total foreign currency translation adjustment........... Minimum pension liability adjustment.. ------ --- ------ ------ ---- Other comprehensive income (loss)........ ------ --- ------ ------ ---- Comprehensive income.... $1,699 $33 $1,666 $1,699 $(33) ====== === ====== ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 102 DOMINION PRODUCTS AND SERVICES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Eliminations P&S and and Combined Dominion CNG Subsidiary Adjustments Total P&S Technologies ---------- ------------ -------- -------- ------------ Cash Flows From (Used In) Operating Activities Net income............... $ 1,699 $ 33 $ 1,666 $ 1,699 $(33) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle.............. Restructuring and other merger-related costs... 11 11 11 Loss on net assets held for sale............... Sale of Virginia Natural Gas.................... Depreciation and amortization........... Pension cost (credit)-- net.................... Deferred income taxes-- net.................... (174) (174) (236) 62 Investment tax credit... Changes in current assets and current liabilities: Accounts receivable..... (746) (746) (746) Receivables from affiliated companies... 570 570 570 Inventories............. Unrecovered gas costs... Broker margin deposits............... Prepayments............. (1) (1) (1) Other current assets.... Accounts payable, trade.................. (414) (414) (383) (31) Payables to affiliated companies.............. 7 7 7 Estimated rate contingencies and refunds................ Amounts payable to customers.............. Accrued expenses........ 718 718 690 28 Other--net.............. 661 661 661 Changes in other assets and other liabilities... 208 208 208 Excess of equity in earnings of subsidiary companies over their cash dividends paid-- consolidated............ (33) 33 33 Other--net............... ------- ---- ------- ------- ---- Net cash flows from (used in) operating activities........... 2,539 2,539 2,513 26 ------- ---- ------- ------- ---- Cash Flows From (Used In) Investing Activities Plant construction and other property additions............... Proceeds from sale of Virginia Natural Gas, net of cash sold........ Proceeds from sale of Argentine investments, net of cash sold........ Cost of other investments............. Intrasystem long-term financing--net.......... Intrasystem money pool investments--net........ (2,516) (2,516) (2,490) (26) Property transfers to (from) affiliates....... Other.................... ------- ---- ------- ------- ---- Net cash flows from (used in) investing activities........... (2,516) (2,516) (2,490) (26) ------- ---- ------- ------- ---- Cash Flows From (Used In) Financing Activities Repayments of long-term debt.................... Issuance (repayment) of short-term debt......... Dividends paid........... Intrasystem long-term financing--net.......... Intrasystem money pool borrowings (repayments)--net....... Dividends paid-- subsidiary companies-- consolidated............ Purchase of treasury stock................... Other.................... ------- ---- ------- ------- ---- Net cash flows from (used in) financing activities........... ------- ---- ------- ------- ---- Increase (decrease) in cash and cash equivalents.......... 23 23 23 Cash and cash equivalents at beginning of year.... 5 5 4 1 ------- ---- ------- ------- ---- Cash and cash equivalents at end of year.......... $ 28 $-- $ 28 $ 27 $ 1 ======= ==== ======= ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 103 DOMINION CAPITAL, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Catalyst Old Dominion Consolidating Mortgage River Capital Entries and Dominion Services, Virginia Hydroelectric Consolidated Adjustments Capital Inc. Financial DCV OptaCor DVII Ltd. ------------ ------------- ---------- --------- --------- -------- ------- ------- ------------- Current assets: Cash and cash equivalents......... $ 43,197 $ (63,408) $ 2,206 $ 236 $ 43,151 $ (4,373) $ 29 $ -- $63,408 Accounts receivable: Customers (less allowance)......... Other............... 6,239 (5,180) 1,632 2,663 (1,203) 4 3,836 Inventories: Materials and supplies........... Fossil fuel......... Gas stored--current portion............ Investment securities-- trading............. 274,643 274,643 Mortgage loans held for sale............ 103,956 103,956 Commodity contract assets.............. Unrecovered gas costs............... Broker margin deposits............ Prepayments.......... Net assets held for sale................ Other................ 62,060 (4,022) 8,379 6,537 31,589 13,159 70 383 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Total current assets........... 490,095 (72,610) 12,217 385,372 77,403 7,583 103 67,627 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Investments: Loans receivable, net................. 675,600 22,508 514,040 133,083 331 Investments in affiliates.......... 175,505 (1,678,049) 1,743,543 51,774 0 49,469 Available for sale securities.......... 291,630 10,823 13,916 76,487 72,809 Nuclear decommissioning trust funds......... Investment in real estate.............. 64,924 3,891 0 0 Other................ 145,274 5,769 20,203 36,898 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Total net investments...... 1,352,933 (1,678,049) 1,786,534 13,916 662,504 242,790 331 49,469 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Property, plant and equipment: Property, plant and equipment........... 35,296 (419,948) 878 21,749 1,028 5,073 419,948 Less accumulated depreciation, depletion and amortization........ 16,298 (5,127) 703 10,439 402 1,568 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Property, plant and equipment, net.............. 18,998 (414,821) 175 11,310 626 3,505 419,948 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Deferred charges and other assets: Goodwill, net........ 49,796 46,095 (246) 0 Regulatory assets, net................. Prepaid pension costs............... Other, net........... 123,871 (493,816) 1,313 118,429 11,492 (404) 61 488,689 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Total deferred charges and other assets........... 173,667 (493,816) 1,313 164,524 11,246 (404) 61 488,689 ---------- ----------- ---------- -------- -------- -------- ---- ------- -------- Total Assets........ $2,035,693 $(2,659,296) $1,800,239 $575,122 $751,779 $253,474 $434 $49,530 $976,264 ========== =========== ========== ======== ======== ======== ==== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 104 DOMINION CAPITAL, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Catalyst Old Dominion Consolidating Mortgage River Capital Entries and Dominion Services, Virginia Hydroelectric Consolidated Adjustments Capital Inc. Financial DCV OptaCor DVII Ltd. ------------ ------------- ---------- --------- --------- -------- -------- ------- ------------- Current liabilities: Securities due within one year.... $ 89,499 $ 10,774 $ -- $ 78,725 $ -- $ -- $ -- $ -- $ -- Short-term debt..... Accounts payable, trade.............. 9,660 (6,081) 2,215 6,489 0 322 5,237 Accrued interest.... 15,113 (16,729) 12,826 1,324 935 846 13,969 Accrued payroll..... 3,158 0 (9) 2,887 277 3 Accrued taxes....... 2,270 (12) (12) 0 21 1,836 422 Commodity contract liabilities........ Other............... 4,652 (6,252) 2,191 559 1,685 0 6,252 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Total current liabilities..... 124,352 (18,300) 17,211 89,984 2,918 3,007 422 25,458 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Long term debt..... 1,353,801 (1,613,100) 1,257,322 109,477 468,580 120,802 859,615 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Deferred credits and other liabilities: Deferred income taxes.............. 34,306 1,586 31,539 (6,555) (1,277) (109) (507) Deferred investment tax credits........ Other............... 627 (1,141) 1,513 585 0 (1,812) 1 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Total deferred credits and other liabilities..... 34,933 (1,141) 3,099 32,124 (6,555) (3,089) (108) (507) ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Total Liabilities....... 1,513,086 (1,632,541) 1,277,632 231,585 464,943 120,720 (108) (85) 885,073 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Minority interest... (68,393) 68,393 Obligated mandatorily redeemable preferred securities of subsidiary trusts.. Preferred stock not subject to mandatory redemption......... Common shareholders' equity: Common Stock........ 8 (64,657) 8 50,100 Other paid in capital............ 693,841 (790,330) 693,840 294,113 167,039 122,273 12,218 62,930 22,798 Accumulated other comprehensive income............. (8,597) 7,810 (8,597) (45) Retained earnings... (162,645) (111,185) (162,644) 49,424 69,742 10,481 (11,676) (13,315) ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Total common shareholders' equity.......... 522,607 (958,362) 522,607 343,537 286,836 132,754 542 49,615 22,798 ---------- ----------- ---------- -------- -------- -------- -------- ------- -------- Total Liabilities and shareholders' equity............ $2,035,693 $(2,659,296) $1,800,239 $575,122 $751,779 $253,474 $ 434 $49,530 $976,264 ========== =========== ========== ======== ======== ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 105 DOMINION CAPITAL, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Rincon Stanton Vidalia Dominion Securities, Associates, Edgen, Audit, Louisiana Lands, Inc. Inc. Inc. DLMC Inc. Hydro Inc. ----------- ----------- ------- ---- ------- --------- -------- Current assets: Cash and cash equivalents............ $ 838 $ 192 $ 80 $ 69 $ 1 $ 1 $ 767 Accounts receivable: Customers (less allowance)............ Other.................. 115 473 516 429 (499) 3,453 Inventories: Materials and supplies.............. Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... 1,073 3,371 26 0 47 1,364 84 -------- ------- ------- ---- ---- ------- ------- Total current assets.............. 1,911 3,678 579 585 477 866 4,304 -------- ------- ------- ---- ---- ------- ------- Investments: Loans receivable, net... 0 471 2,151 0 0 3,016 Investments in affiliates............. (8,355) 0 13,597 254 3,272 0 Available for sale securities............. 117,595 0 0 0 0 0 Nuclear decommissioning trust funds............ Investment in real estate................. 0 4,682 626 0 0 55,725 Other................... 3,819 1,503 0 0 76,899 183 -------- ------- ------- ---- ---- ------- ------- Total net investments......... 113,059 6,656 16,374 254 80,171 58,924 -------- ------- ------- ---- ---- ------- ------- Property, plant and equipment: Property, plant and equipment.............. 0 5,635 170 37 0 726 Less accumulated depreciation, depletion and amortization....... 0 2,230 126 37 0 5,920 -------- ------- ------- ---- ---- ------- ------- Property, plant and equipment, net...... 0 3,405 44 0 0 (5,194) -------- ------- ------- ---- ---- ------- ------- Deferred charges and other assets: Goodwill, net........... 3,947 0 0 0 0 0 Regulatory assets, net.. Prepaid pension costs... Other, net.............. 2,115 2,115 0 0 1,898 (8,021) -------- ------- ------- ---- ---- ------- ------- Total deferred charges and other assets.............. 6,062 2,115 0 0 1,898 (8,021) -------- ------- ------- ---- ---- ------- ------- Total Assets............ $121,032 $15,854 $16,997 $839 $477 $82,935 $50,013 ======== ======= ======= ==== ==== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 106 DOMINION CAPITAL, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Rincon Stanton Vidalia Dominion Securities, Associates, Edgen, Audit, Louisiana Lands, Inc. Inc. Inc. DLMC Inc. Hydro Inc. ----------- ----------- ------- ------- ------- --------- -------- Current liabilities: Securities due within one year............... $ -- $ -- $ -- $ -- $-- $ -- $ -- Short-term debt......... Accounts payable, trade.................. 4 119 284 1 1,070 Accrued interest........ 873 4 4 0 905 156 Accrued payroll......... Accrued taxes........... 3 12 Commodity contract liabilities............ Other................... 33 (2) 57 129 -------- ------- ------- ------- ---- ------- -------- Total current liabilities......... 906 6 119 291 58 905 1,367 -------- ------- ------- ------- ---- ------- -------- Long term debt......... 45,955 6,543 0 0 266 44,142 54,199 -------- ------- ------- ------- ---- ------- -------- Deferred credits and other liabilities: Deferred income taxes... (4,085) (444) (2,490) (80) (14) 28,458 (11,716) Deferred investment tax credits................ Other................... 189 565 390 337 -------- ------- ------- ------- ---- ------- -------- Total deferred credits and other liabilities......... (4,085) (255) (1,925) 310 (14) 28,458 (11,379) -------- ------- ------- ------- ---- ------- -------- Total Liabilities...... 42,776 6,294 (1,806) 601 310 73,505 44,187 -------- ------- ------- ------- ---- ------- -------- Minority interest....... Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock not subject to mandatory redemption............. Common shareholders' equity: Common Stock............ 1,000 10,199 1 3,346 1 10 Other paid in capital... 16,168 (1,649) 28,398 200 1,100 64,743 Accumulated other comprehensive income... (7,765) Retained earnings....... 68,853 1,010 (9,596) (3,108) (33) 8,329 (58,927) -------- ------- ------- ------- ---- ------- -------- Total common shareholders' equity.............. 78,256 9,560 18,803 238 167 9,430 5,826 -------- ------- ------- ------- ---- ------- -------- Total Liabilities and shareholders' equity................ $121,032 $15,854 $16,997 $ 839 $477 $82,935 $ 50,013 ======== ======= ======= ======= ==== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 107 DOMINION CAPITAL, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Catalyst Old Dominion Consolidating Mortgage River Capital Entries and Dominion Services, Virginia Hydroelectric Consolidated Adjustments Capital Inc. Financial DCV OptaCor DVII L.P. ------------ ------------- --------- --------- --------- -------- ------- ------ ------------- Operating Revenue: Regulated sales....... Electric............. Gas.................. Nonregulated sales.... Electric............. Gas.................. Gas transportation and storage.............. Oil and gas production........... Other................. $ 432,897 $224,605 $(132,714) $ 61,300 $137,885 $ 20,602 $ 75 $4,398 $ 94,591 --------- -------- --------- -------- -------- -------- ---- ------ -------- Total.............. 432,897 224,605 (132,714) 61,300 137,885 20,602 75 4,398 94,591 --------- -------- --------- -------- -------- -------- ---- ------ -------- Expenses: Fuel, net............. Purchased power capacity, net........ Purchased gas, net.... Liquids, capacity and other products purchased............ Restructuring and other acquisition related costs........ 192,388 192,388 Other operation and maintenance.......... 298,282 35,322 13,787 75,846 91,085 36,509 80 8,366 Depreciation, depletion and amortization......... 33,712 (13,846) 909 29,640 403 1,193 144 13,846 Other taxes........... 5,082 (10,080) 378 3,542 367 10,080 --------- -------- --------- -------- -------- -------- ---- ------ -------- Total.............. 529,464 203,784 15,074 109,028 91,488 38,069 80 144 32,292 --------- -------- --------- -------- -------- -------- ---- ------ -------- Income from Operations.......... (96,567) 20,821 (147,788) (47,728) 46,397 (17,467) (5) 4,254 62,299 Other Income.......... (4,684) 4,684 --------- -------- --------- -------- -------- -------- ---- ------ -------- Income before interest and income taxes............... (96,567) 16,137 (147,788) (47,728) 46,397 (17,467) (5) 4,254 66,983 --------- -------- --------- -------- -------- -------- ---- ------ -------- Interest and related charges: Interest charges...... 192,178 (121,705) 76,316 24,875 100,180 11,782 82,187 --------- -------- --------- -------- -------- -------- ---- ------ -------- Preferred dividends and distributions of subsidiary trusts.... Total.............. 192,178 (121,705) 76,316 24,875 100,180 11,782 82,187 --------- -------- --------- -------- -------- -------- ---- ------ -------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle........... (288,745) 137,842 (224,104) (72,603) (53,783) (29,249) (5) 4,254 (15,204) Income taxes.......... (100,198) (35,297) (24,084) (16,987) (11,425) (14) 1,465 Minority interests.... 259 1,415 (1,303) --------- -------- --------- -------- -------- -------- ---- ------ -------- Income before extraordinary item and cumulative effect of a change in accounting principle........... (188,806) 136,427 (188,807) (48,519) (36,796) (16,521) 9 2,789 (15,204) Extraordinary item, net Cumulative effect of a change in accounting principle, net....... --------- -------- --------- -------- -------- -------- ---- ------ -------- Net Income........... $(188,806) $136,427 $(188,807) $(48,519) $(36,796) $(16,521) $ 9 $2,789 $(15,204) ========= ======== ========= ======== ======== ======== ==== ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 108 DOMINION CAPITAL, INC. CONSOLIDATING INCOME STATEMENT--(Continued) For the Year Ended December 31, 2000 (Thousands)
Rincon Stanton Vidalia Louisiana Dominion Securities, Inc. Associates, Inc. Edgen, Inc. DLMC Audit, Inc. Hydro Lands, Inc. ---------------- ---------------- ----------- ----- ----------- --------- ----------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... Gas.................... Gas transportation and storage................ Oil and gas production.. Other................... $14,550 $2,419 $ 894 $ 9 $295 $7,860 $ (3,872) ------- ------ ------- ----- ---- ------ -------- Total................ 14,550 2,419 894 9 295 7,860 (3,872) ------- ------ ------- ----- ---- ------ -------- Expenses: Fuel, net............... Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 309 799 4,730 (112) 45 31,516 Depreciation, depletion and amortization....... 714 470 51 9 59 120 Other taxes............. 2 54 112 3 624 ------- ------ ------- ----- ---- ------ -------- Total................ 1,023 1,271 4,835 9 48 59 32,260 ------- ------ ------- ----- ---- ------ -------- Income from Operations............ 13,527 1,148 (3,941) 247 7,801 (36,132) Other Income ------- ------ ------- ----- ---- ------ -------- Income before interest and income taxes...... 13,527 1,148 (3,941) 247 7,801 (36,132) ------- ------ ------- ----- ---- ------ -------- Interest and related charges: Interest charges........ 8,810 718 3 10 5,429 3,573 ------- ------ ------- ----- ---- ------ -------- Preferred dividends and distributions of subsidiary trusts...... Total................ 8,810 718 3 10 5,429 3,573 ------- ------ ------- ----- ---- ------ -------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 4,717 430 (3,941) (3) 237 2,372 (39,705) Income taxes............ 47 455 (1,379) (3) 83 903 (13,962) Minority interests...... 147 ------- ------ ------- ----- ---- ------ -------- Income before extraordinary item and cumulative effect of a change in accounting principle............. 4,670 (172) (2,562) 154 1,469 (25,743) Extraordinary item, net Cumulative effect of a change in accounting principle, net......... ------- ------ ------- ----- ---- ------ -------- Net Income............. $ 4,670 $ (172) $(2,562) $ -- $154 $1,469 $(25,743) ======= ====== ======= ===== ==== ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 109 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Dominion Consolidating Mortgage Rincon Capital Entries and Dominion Services, Virginia Securities, Consolidated Adjustments Capital Inc. Financial DCV OptaCor DVII Inc. ------------ ------------- -------- --------- --------- -------- ------- ------- ----------- Balance at December 31, 1999................... $ 740,912 $(1,139,775) $740,912 $345,657 $312,782 $148,123 $931 $50,336 $74,662 --------- ----------- -------- -------- -------- -------- ---- ------- ------- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. (1,820) Comprehensive income... (182,248) 129,994 (182,249) (42,119) (36,839) (15,369) 9 2,789 3,594 Dividends and other adjustments........... (36,057) 53,239 (36,056) 39,999 10,893 (398) (3,510) --------- ----------- -------- -------- -------- -------- ---- ------- ------- Balance at December 31, 2000................... $ 522,607 $ (958,362) $522,607 $343,537 $286,836 $132,754 $542 $49,615 $78,256 ========= =========== ======== ======== ======== ======== ==== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 110 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY--(Continued) As of December 31, 2000 (Thousands)
Catalyst Stanton Vidalia Dominion Old River Trilon Associates, Edgen, Audit, Louisiana Lands, Hydroelectric Stonehouse Dominion Inc. Inc. DLMC Inc. Hydro Inc. L.P. LLC Partners ----------- ------- ------- ------- --------- -------- ------------- ---------- -------- Balance at December 31, 1999................... $9,732 $21,364 $(1,762) $(187) $6,861 $ 24,915 $106,394 $ 1,738 $ 38,229 ------ ------- ------- ----- ------ -------- -------- ------- -------- Issuance of stock--CNG acquisition........... Issuance of stock through public offering....... Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 3,346 (1,526) Comprehensive income... (172) (2,562) 154 1,469 (25,743) (15,204) Dividends and other adjustments........... 1 (1,346) 200 1,100 6,654 (68,392) (212) (38,229) ------ ------- ------- ----- ------ -------- -------- ------- -------- Balance at December 31, 2000................... $9,560 $18,803 $ 238 $ 167 $9,430 $ 5,826 $ 22,798 $ -- $ -- ====== ======= ======= ===== ====== ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 111 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Consolidating Dominion Dominion Capital Entries and Dominion Mortgage Virginia Consolidated Adjustments Capital Services, Inc. Financial DCV OptaCor ---------------- ------------- --------- -------------- --------- -------- ------- Net Income.............. $(188,806) $136,427 $(188,807) $(48,519) $(36,796) $(16,521) $ 9 --------- -------- --------- -------- -------- -------- --- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ 6,558 (6,433) 6,558 6,400 (43) 1,152 Less: reclassification adjustment for gains (losses) realized in net income --------- -------- --------- -------- -------- -------- --- Unrealized gains (losses) on investment securities............ 6,558 (6,433) 6,558 6,400 (43) 1,152 Foreign currency translation adjustment Minimum pension liability adjustment --------- -------- --------- -------- -------- -------- --- Other comprehensive income (Loss).......... 6,558 (6,433) 6,558 6,400 (43) 1,152 --------- -------- --------- -------- -------- -------- --- Comprehensive Income.... $(182,248) $129,994 $(182,249) $(42,119) $(36,839) $(15,369) $ 9 ========= ======== ========= ======== ======== ======== ===
The Notes to the Consolidated Financial Statements are an integral part of this statement. 112 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME--(Continued) For the Year Ended December 31, 2000 (Thousands)
Catalyst Old River Rincon Hydroelectric Securities, Stanton Vidalia Louisiana Dominion DVII L.P. Inc. Associates, Inc. Edgen, Inc. DLMC Audit, Inc. Hydro Lands, Inc. ------ ------------- ----------- ---------------- ----------- ---- ----------- --------- ----------- Net Income......... $2,789 $(15,204) $ 4,670 $(172) $(2,562) $-- $154 $1,469 $(25,743) ------ --------- ------- ----- ------- ---- ---- ------ -------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities....... (1,076) Less: reclassification adjustment for gains (losses) realized in net income .......... ------ --------- ------- ----- ------- ---- ---- ------ -------- Unrealized gains (losses) on investment securities....... (1,076) Foreign currency translation adjustment Minimum pension liability adjustment ------ --------- ------- ----- ------- ---- ---- ------ -------- Other comprehensive income (Loss)..... (1,076) ------ --------- ------- ----- ------- ---- ---- ------ -------- Comprehensive Income............ $2,789 $(15,204) $ 3,594 $(172) $(2,562) $-- $154 $1,469 $(25,743) ====== ========= ======= ===== ======= ==== ==== ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 113 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Catalyst Old Dominion Consolidating Mortgage River Capital Entries and Dominion Services, Virginia Hydroelectric Consolidated Adjustments Capital Inc. Financial DCV OptaCor DVII L.P. ------------ ------------- --------- ---------- ---------- -------- ------- ------ ------------- Cash flows from (used in) operating activities: Net income......... $ (188,806) $136,427 $(188,807) $ (48,519) $ (36,796) $(16,521) $ 9 $2,789 $(15,204) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle........ Restructuring and other acquisition related costs.... DCI impairment losses........... 292,171 292,171 Extraordinary item, net........ Impairment of regulatory assets........... Gains on sales of subsidiaries..... Depreciation and amortization..... 35,005 (14,965) 909 29,640 1,933 389 144 14,965 Deferred income taxes............ (64,600) (6,432) (12,788) (14,596) (14,255) (1,782) (3) (276) Deferred fuel expense.......... Changes in current assets and liabilities: Accounts receivable....... 9,217 1,415 4,143 (2,148) 5,711 (509) Inventories....... Unrecovered gas costs............ Purchase and origination of mortgages........ (4,280,698) (4,280,698) Proceeds from sale and principal collections of mortgages........ 4,295,336 4,295,336 Accounts payable, trade............ (1,641) (3,824) (3,306) 3,699 (975) (50) 3,322 Accrued interest and taxes........ (11,426) 397 11,540 3,316 (25,009) (1,811) (12) 41 Commodity contract assets and liabilities...... Net assets held for sale......... Other.............. 563 (404,826) 163,575 61,151 103,304 25,731 114 (4,398) (7,797) ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Net cash flows from operating activities..... 85,121 363 (24,734) 49,329 27,029 10,742 58 (1,700) 5,223 ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Cash flow from (used in) investing activities: Plant construction and other property additions......... 1,152 (1,152) Acquisition of exploration and production assets............ Loan originations.. (2,910,737) (2,159,245) (751,492) Repayments of loan originations...... 4,255,348 54,679 11,679 3,411,142 778,511 143 Sale of businesses........ Sale of marketable securities........ 136,994 134,029 10 Purchase of debt securities........ (235,125) (100,855) (10,000) (31,958) (76,483) (15,829) Acquisition of businesses........ Other investments.. (116,658) 312,556 (332,410) (121,771) (64,434) 9,012 5,210 Other.............. (36,319) (32,402) 84 (24,601) 25,008 (16,577) 1 ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Net cash flow used in investing activities..... 1,093,503 235,130 (330,647) (44,301) 1,135,998 3,625 144 5,210 (1,152) ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Cash flow from (used in) financing activities: Issuance of common stock............. Repurchase of common stock...... Issuance (repayment) of short term debt... (120,194) (171,879) (230,415) (22,017) 383,633 (79,465) Issuance of long term debt......... 4,995,534 (8,287) 1,050,000 3,945,534 8,287 Repayment of long term debt......... (6,099,621) 2,035 (425,945) (3,967,824) (1,576,544) (2,035) Common dividend payments.......... (36,737) 3,009 (36,737) 580 (415) (3,174) Other.............. 680 4,796 681 40,000 10,311 17 (336) ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Net cash flow from (used in) financing activities........ (1,260,338) (170,326) 357,584 (4,307) (1,182,020) (79,465) (398) (3,510) 6,252 ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Increase (decrease) in cash and cash equivalents....... (81,714) 65,167 2,203 721 (18,993) (65,098) (196) (123) Cash and cash equivalents at beginning of the year.............. 124,911 (65,330) 3 (485) 62,144 60,725 225 286 ---------- -------- --------- ---------- ---------- -------- ---- ------ -------- Cash and cash equivalents at end of the year....... $ 43,197 $ (163) $ 2,206 $ 236 $ 43,151 $ (4,373) $ 29 $ -- $ 163 ========== ======== ========= ========== ========== ======== ==== ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 114 DOMINION CAPITAL, INC. CONSOLIDATING STATEMENT OF CASH FLOWS--(Continued) For the Year Ended December 31, 2000 (Thousands)
Rincon Stanton Vidalia Dominion Securities, Associates, Edgen, Audit, Louisiana Lands, Inc. Inc. Inc. DLMC Inc. Hydro Inc. ----------- ----------- ------- ------ ------- --------- -------- Cash flows from (used in) operating activities: Net income.............. $ 4,670 $ (172) $(2,562) $ -- $154 $1,469 $(25,743) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 1,282 470 51 9 59 119 Deferred income taxes.. 47 (1,281) (1,379) (36) 460 (12,279) Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... 142 (330) (34) (269) 500 596 Inventories............ Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. (4) (81) (271) (144) 1 (8) Accrued interest and taxes................. 180 227 (101) 28 (118) (257) 153 Commodity contract assets and liabilities........... Net assets held for sale.................. Other................... (790) 2,560 8,356 (1,315) (1) 17 54,882 -------- ------ ------- ------ ---- ------ -------- Net cash flows from operating activities.......... 5,385 1,865 3,764 (1,492) (233) 2,248 17,720 -------- ------ ------- ------ ---- ------ -------- Cash flow from (used in) investing activities: Plant construction and other property additions.............. Acquisition of exploration and production assets...... Loan originations....... Repayments of loan originations........... 327 784 (1,917) Sale of businesses...... Sale of marketable securities............. 2,955 Purchase of debt securities............. Acquisition of businesses............. Other investments....... 105,930 2,622 (5,084) (254) (2,872) (25,163) Other................... 806 565 386 10,411 -------- ------ ------- ------ ---- ------ -------- Net cash flow used in investing activities.......... 108,885 3,755 (3,735) 132 (2,872) (16,669) -------- ------ ------- ------ ---- ------ -------- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ (1,053) (1,222) 34 2,190 Issuance of long term debt................... Repayment of long term debt................... (114,000) (4,736) (475) (10,097) Common dividend payments............... Other................... 2,000 200 1,100 (58,089) -------- ------ ------- ------ ---- ------ -------- Net cash flow from (used in) financing activities............. (114,000) (5,789) 778 234 625 (65,996) -------- ------ ------- ------ ---- ------ -------- Increase (decrease) in cash and cash equivalents............ 270 (169) 29 (582) 1 1 (64,945) Cash and cash equivalents at beginning of the year.. 568 361 51 651 65,712 -------- ------ ------- ------ ---- ------ -------- Cash and cash equivalents at end of the year............... $ 838 $ 192 $ 80 $ 69 $ 1 $ 1 $ 767 ======== ====== ======= ====== ==== ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 115 DOMINION ENERGY, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Domestic Foreign Dominion Consolidating Power Power Dominion Energy Entries and Dominion Oil & Gas Generation Generation Energy Consolidated Adjustments Energy (Page 146) (Page 122) (Page 140) Management, Inc. ------------ ------------- ---------- ---------- ---------- ---------- ---------------- Current assets: Cash and cash equivalents............ $ 34,952 $ -- $ 3,815 $ 9,787 $ 21,350 $-- $-- Accounts receivable: Customers (less allowance)............ Other.................. 139,429 (52,484) 43,564 98,136 49,990 223 Inventories: Materials and supplies.............. Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. 11,059 11,059 Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... 147,580 (60) 115,610 25,653 6,377 ---------- ----------- ---------- ---------- -------- ---- ---- Total current assets.............. 333,020 (52,544) 162,989 133,576 88,776 223 ---------- ----------- ---------- ---------- -------- ---- ---- Investments: Loans receivable, net... Investments in affiliates............. 215,086 75,409 21,565 118,112 Available for sale securities............. Nuclear decommissioning trust funds............ Investment in real estate................. Other................... 119,193 (1,222,035) 947,073 295,397 98,758 ---------- ----------- ---------- ---------- -------- ---- ---- Total net investments......... 334,279 (1,222,035) 1,022,482 316,962 216,870 ---------- ----------- ---------- ---------- -------- ---- ---- Property, plant and equipment: Property, plant and equipment.............. 1,742,280 13,328 1,367,542 361,410 Less accumulated depreciation, depletion and amortization....... 414,789 6,391 382,344 26,054 ---------- ----------- ---------- ---------- -------- ---- ---- Property, plant and equipment, net........ 1,327,491 6,937 985,198 335,356 ---------- ----------- ---------- ---------- -------- ---- ---- Deferred charges and other assets: Goodwill, net........... 2,927 2,927 Regulatory assets, net.. Prepaid pension costs... Other, net.............. 46,087 509 14,705 30,873 ---------- ----------- ---------- ---------- -------- ---- ---- Total deferred charges and other assets.............. 49,014 509 17,632 30,873 ---------- ----------- ---------- ---------- -------- ---- ---- Total Assets............ $2,043,804 $(1,274,579) $1,192,917 $1,453,368 $671,875 $-- $223 ========== =========== ========== ========== ======== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 116 DOMINION ENERGY, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Domestic Foreign Dominion Dominion Consolidating Power Power Energy Energy Entries and Dominion Oil & Gas Generation Generation Management, Consolidated Adjustments Energy (Page 147) (Page 124) (Page 141) Inc. ------------ ------------- ---------- ---------- ---------- ---------- ----------- Current liabilities: Securities due within one year............... $ 6,330 $ -- $ -- $ -- $ 6,330 $ -- $ -- Short-term debt......... 2,502 2,502 Accounts payable, trade.................. 65,333 (52,484) 26,127 37,413 53,855 422 Accrued interest........ 4,625 (60) 3,589 109 987 Accrued payroll......... Accrued taxes........... 1,227 (105) (2,264) 3,666 (70) Commodity contract liabilities............ 245 245 Other................... 65,934 2,112 43,890 19,933 (1) ---------- ----------- ---------- ---------- -------- ----- ----- Total current liabilities......... 146,196 (52,544) 31,723 81,650 85,016 351 ---------- ----------- ---------- ---------- -------- ----- ----- Long term debt......... 1,157,754 (468,815) 588,622 774,473 263,474 ---------- ----------- ---------- ---------- -------- ----- ----- Deferred credits and other liabilities: Deferred income taxes... 158,296 27,427 97,497 33,372 Deferred investment tax credits................ Other................... 30,164 (5,364) 33,784 1,744 ---------- ----------- ---------- ---------- -------- ----- ----- Total deferred credits and other liabilities......... 188,460 22,063 131,281 35,116 ---------- ----------- ---------- ---------- -------- ----- ----- Total Liabilities....... 1,492,410 (521,359) 642,408 987,404 383,606 351 ---------- ----------- ---------- ---------- -------- ----- ----- Minority interest....... 884 (1,195) 884 1,195 Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock no subject to mandatory redemption............. Common shareholders' equity: Common Stock............ 208 (35,104) 208 35,104 Other paid in capital... 572,115 (386,553) 572,115 219,077 167,476 Accumulated other comprehensive income... 295 9,971 295 (9,971) Retained earnings....... (22,108) (340,339) (22,109) 255,974 84,494 (128) ---------- ----------- ---------- ---------- -------- ----- ----- Total common shareholders' equity.............. 550,510 (752,025) 550,509 465,080 287,074 (128) ---------- ----------- ---------- ---------- -------- ----- ----- Total Liabilities and shareholders' equity... $2,043,804 $(1,274,579) $1,192,917 $1,453,368 $671,875 $ -- $ 223 ========== =========== ========== ========== ======== ===== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 117 DOMINION ENERGY, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Domestic Foreign Dominion Dominion Consolidating Power Power Energy Energy Entries and Dominion Oil & Gas Generation Generation Management, Consolidated Adjustments Energy (Page 148) (Page 126) (Page 142) Inc. ------------ ------------- -------- ---------- ---------- ---------- ----------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... $ 96,742 $ (67) $ -- $ -- $ 83,833 $12,976 $-- Gas.................... 24,008 24,008 Gas transportation and storage................ Oil and gas production.. 322,359 322,359 Other................... 69,256 (116,043) 118,705 49,556 16,917 121 -------- --------- -------- -------- -------- ------- ---- Total................ 512,365 (116,110) 118,705 371,915 124,758 13,097 -------- --------- -------- -------- -------- ------- ---- Expenses: Fuel, net............... 2,588 1,350 1,238 Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. 567 567 Other operation and maintenance............ 218,083 (121) 19,355 137,083 58,094 3,656 16 Depreciation, depletion and amortization....... 121,820 4,771 101,790 12,730 2,529 Other taxes............. 19,678 277 16,230 2,408 757 6 -------- --------- -------- -------- -------- ------- ---- Total................ 362,736 (121) 24,970 255,103 74,582 8,180 22 -------- --------- -------- -------- -------- ------- ---- Income from Operations............ 149,629 (115,989) 93,735 116,812 50,176 4,917 (22) Other Income............ 20,190 (18,601) 11,497 10,745 13,733 2,816 -------- --------- -------- -------- -------- ------- ---- Income before interest and income taxes...... 169,819 (134,590) 105,232 127,557 63,909 7,733 (22) -------- --------- -------- -------- -------- ------- ---- Interest and related charges: Interest charges........ 72,641 (18,601) 30,108 39,280 19,293 2,561 Preferred dividends and distributions of subsidiary trusts...... -------- --------- -------- -------- -------- ------- ---- Total................ 72,641 (18,601) 30,108 39,280 19,293 2,561 -------- --------- -------- -------- -------- ------- ---- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 97,178 (115,989) 75,124 88,277 44,616 5,172 (22) Income taxes............ 10,353 (9,574) 2,586 17,184 164 (7) Minority interests...... 2,127 (169) 141 220 1,935 -------- --------- -------- -------- -------- ------- ---- Income before extraordinary item and cumulative effect of a change in accounting principle............. 84,698 (115,820) 84,698 85,550 27,212 3,073 (15) Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... -------- --------- -------- -------- -------- ------- ---- Net Income............. $ 84,698 $(115,820) $ 84,698 $ 85,550 $ 27,212 $ 3,073 $(15) ======== ========= ======== ======== ======== ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 118 DOMINION ENERGY, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Domestic Foreign Consolidating Power Power Dominion Dominion Energy Entries and Dominion Oil & Gas Generation Generation Energy Consolidated Adjustments Energy (Page 149) (Page 128) (Page 143) Management, Inc. --------------- ------------- --------- ---------- ---------- ---------- ---------------- Balance at December 31, 1999................... $ 634,406 $(836,972) $ 612,611 $403,457 $265,071 $ 190,353 $(114) --------- --------- --------- -------- -------- --------- ----- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 158,953 101 (159,054) Comprehensive income... 81,808 (109,080) 81,808 78,810 27,212 3,073 (15) Dividends and other adjustments........... (165,704) 35,074 (143,910) (17,187) (5,310) (34,372) 1 --------- --------- --------- -------- -------- --------- ----- Balance at December 31, 2000................... $ 550,510 $(752,025) $ 550,509 $465,080 $287,074 $ -- $(128) ========= ========= ========= ======== ======== ========= =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 119 DOMINION ENERGY, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Domestic Foreign Consolidating Power Power Dominion Energy Entries and Dominion Oil&Gas Generation Generation Dominion Energy Consolidated Adjustments Energy (Page 150) (Page 130) (Page 144) Management, Inc. --------------- ------------- -------- ---------- ---------- ---------- ---------------- Net Income.............. $84,698 $(115,820) $84,698 $85,550 $27,212 $3,073 $(15) ------- --------- ------- ------- ------- ------ ---- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------- --------- ------- ------- ------- ------ ---- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ (2,890) 6,740 (2,890) (6,740) Minimum pension liability adjustment.. ------- --------- ------- ------- ------- ------ ---- Other comprehensive income (Loss).......... (2,890) 6,740 (2,890) (6,740) ------- --------- ------- ------- ------- ------ ---- Comprehensive Income.... $81,808 $(109,080) $81,808 $78,810 $27,212 $3,073 $(15) ======= ========= ======= ======= ======= ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 120 DOMINION ENERGY, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Domestic Foreign Consolidating Power Power Dominion Dominion Energy Entries and Dominion Oil & Gas Generation Generation Energy Consolidated Adjustments Energy (Page 151) (Page 130) (Page 145) Management, Inc. --------------- ------------- --------- ---------- ---------- ---------- ---------------- Cash flows from (used in) operating activities: Net income.............. $ 84,698 $(115,820) $ 84,698 $ 85,550 $ 27,212 $ 3,073 $ (15) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... 68 68 Depreciation and amortization.......... 121,821 403 4,770 101,152 12,730 2,766 Deferred income taxes.. 19,362 (20,561) 25,755 14,168 Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (56,210) 6,776 183,965 (245,801) 829 (1,922) (57) Inventories............ 4,778 6,053 (1,317) 42 Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. (67,016) 157,085 (346,055) 118,208 5,279 (1,616) 83 Accrued interest and taxes................. (234) (1) 4,682 (6,366) (879) 2,337 (7) Commodity contract assets and liabilities........... Net assets held for sale.................. Other.................. (9,744) 112,492 (118,733) 8,525 (12,347) 323 (4) --------- --------- --------- --------- -------- -------- ----- Net cash flows from operating activities.......... 97,523 160,935 (207,166) 93,076 45,675 5,003 Cash flow from (used in) investing activities: Plant construction and other property additions.............. (64,966) (53,671) (6,003) (5,248) (44) Acquisition of exploration and production assets...... (138,329) (138,329) Loan originations....... Repayments of loan originations........... Sale of businesses...... 83,554 149,788 (19) (66,215) Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... 12,527 5,525 6,935 67 Other................... (9,841) 3,001 (2,798) 5,313 (22,095) 6,738 --------- --------- --------- --------- -------- -------- ----- Net cash flow used in investing activities.......... (117,055) 3,001 98,844 (132,103) (27,276) (59,521) Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ 399,191 (209,812) 528,850 71,373 8,866 (86) Issuance of long term debt................... Repayment of long term debt................... (243,776) 45,876 (269,303) (13,908) (6,330) (111) Common dividend payments............... (163,863) (145,263) (18,600) Other................... 1,377 769 205 403 --------- --------- --------- --------- -------- -------- ----- Net cash flow from (used in) financing activities............. (7,071) (163,936) 115,053 39,070 2,939 (197) --------- --------- --------- --------- -------- -------- ----- Increase (decrease) in cash and cash equivalents............ (26,603) 6,731 43 21,338 (54,715) Cash and cash equivalents at beginning of the year.. 61,555 (2,916) 9,744 12 54,715 --------- --------- --------- --------- -------- -------- ----- Cash and cash equivalents at end of the year............... $ 34,952 $ -- $ 3,815 $ 9,787 $ 21,350 $ -- $ -- ========= ========= ========= ========= ======== ======== =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 121 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Domestic Dominion Power Consolidating Dominion Dominion Kincaid, Dominion Generation Entries and Dominion Energy Services Cogen WV, Inc. Dominion Elwood III, Consolidated Adjustments Cogen, Inc. Company, Inc. Inc. (Page 134) Elwood, Inc. Inc.* ------------ ------------- ----------- --------------- --------- ---------- ------------ ----------- Current assets: Cash and cash equivalents....... $ 21,350 $ -- $ -- $ 7 $ -- $ 21,343 $ -- $ -- Accounts receivable: Customers (less allowance)....... Other............. 49,990 (459) 3,084 10,861 99 7,260 1,694 Inventories: Materials and supplies......... Fossil fuel....... Gas stored-- current portion.. Investment securities-- trading........... Mortgage loans held for sale.......... Commodity contract assets............ 11,059 Unrecovered gas costs............. Broker margin deposits.......... Prepayments........ Net assets held for sale.............. Other.............. 6,377 705 692 4,682 -------- ----- ------- ------- ------- -------- -------- ----- Total current assets........... 88,776 (459) 3,084 11,573 791 33,285 1,694 -------- ----- ------- ------- ------- -------- -------- ----- Investments: Loans receivable, net............... Investments in affiliates........ 118,112 11,627 106,654 (169) Available for sale securities........ Nuclear decommissioning trust funds....... Investment in real estate............ Other.............. 98,758 64,929 3,057 20,301 10,301 -------- ----- ------- ------- ------- -------- -------- ----- Total net investments...... 216,870 64,929 3,057 31,928 10,301 106,654 (169) -------- ----- ------- ------- ------- -------- -------- ----- Property, plant and equipment: Property, plant and equipment......... 361,410 360,131 Less accumulated depreciation, depletion and amortization...... 26,054 26,054 -------- ----- ------- ------- ------- -------- -------- ----- Property, plant and equipment, net.............. 335,356 334,077 -------- ----- ------- ------- ------- -------- -------- ----- Deferred charges and other assets: Goodwill, net...... Regulatory assets, net............... Prepaid pension costs............. Other, net......... 30,873 1 1,995 6,501 -------- ----- ------- ------- ------- -------- -------- ----- Total deferred charges and other assets........... 30,873 1 1,995 6,501 -------- ----- ------- ------- ------- -------- -------- ----- Total Assets....... $671,875 $(459) $68,013 $14,631 $34,714 $384,164 $108,348 $(169) ======== ===== ======= ======= ======= ======== ======== =====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 122 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Elwood Energy Dominion Dominion Dominion Dominion Services Construction Energy Direct Dominion Equipment, Energy Fairless Hills, Company, Inc. Company, Inc. Sales, Inc. Cogen NY, Inc. Inc.* Exchange, Inc. Inc. ------------- ------------- ------------- -------------- ---------- -------------- --------------- Current assets: Cash and cash equivalents.......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- Accounts receivable: Customers (less allowance).......... Other................ 565 26,886 Inventories: Materials and supplies............ Fossil fuel.......... Gas stored--current portion............. Investment securities--trading.. Mortgage loans held for sale............. Commodity contract assets............... 11,059 Unrecovered gas costs................ Broker margin deposits............. Prepayments........... Net assets held for sale................. Other................. (130) 428 ----- ----- ------- ----- ----- ------ ------- Total current assets.............. 565 37,815 428 ----- ----- ------- ----- ----- ------ ------- Investments: Loans receivable, net.................. Investments in affiliates........... Available for sale securities........... Nuclear decommissioning trust funds................ Investment in real estate............... Other................. 170 ----- ----- ------- ----- ----- ------ ------- Total net investments......... 170 ----- ----- ------- ----- ----- ------ ------- Property, plant and equipment: Property, plant and equipment............ 1,279 Less accumulated depreciation, depletion and amortization......... ----- ----- ------- ----- ----- ------ ------- Property, plant and equipment, net...... 1,279 ----- ----- ------- ----- ----- ------ ------- Deferred charges and other assets: Goodwill, net......... Regulatory assets, net.................. Prepaid pension costs................ Other, net............ 944 2,500 18,932 ----- ----- ------- ----- ----- ------ ------- Total deferred charges and other assets.............. 944 2,500 18,932 ----- ----- ------- ----- ----- ------ ------- Total Assets.......... $ 565 $ -- $40,208 $ -- $ 428 $2,500 $18,932 ===== ===== ======= ===== ===== ====== =======
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 123 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Domestic Dominion Power Consolidating Dominion Dominion Kincaid, Dominion Generation Entries and Dominion Energy Services Cogen WV, Inc. Dominion Elwood III, Consolidated Adjustments Cogen, Inc. Company, Inc. Inc. (Page 135) Elwood, Inc. Inc.* ------------ ------------- ----------- --------------- --------- ---------- ------------ ----------- Current liabilities: Securities due within one year... $ 6,330 $ -- $ -- $ -- $ -- $ 6,330 $ -- $ -- Short-term debt.... Accounts payable, trade............. 53,855 (459) 718 8,272 Accrued interest... 987 150 (6) 843 Accrued payroll.... Accrued taxes...... 3,666 346 2,643 (227) 437 1,490 (59) Commodity contract liabilities....... 245 Other.............. 19,933 1,569 278 -------- ----- ------- ------- ------- -------- -------- ----- Total current liabilities...... 85,016 (459) 496 4,924 (227) 16,160 1,490 (59) -------- ----- ------- ------- ------- -------- -------- ----- Long term debt..... 263,474 296 259,430 3,200 -------- ----- ------- ------- ------- -------- -------- ----- Deferred credits and other liabilities: Deferred income taxes............. 33,372 (58) 272 14,154 12,387 6,789 Deferred investment tax credits....... Other.............. 1,744 1,472 -------- ----- ------- ------- ------- -------- -------- ----- Total deferred credits and other liabilities...... 35,116 (58) 1,744 14,154 12,387 6,789 -------- ----- ------- ------- ------- -------- -------- ----- Total Liabilities.. 383,606 (459) 734 6,668 13,927 287,977 11,479 (59) -------- ----- ------- ------- ------- -------- -------- ----- Minority interest.. 1,195 1,195 Obligated mandatorily redeemable preferred securities of subsidiary trusts............ Preferred stock no subject to mandatory redemption........ Common shareholders' equity: Common Stock....... 35,104 35,000 1 1 Other paid in capital........... 167,476 1,723 21,997 56,429 87,336 Accumulated other comprehensive income............ Retained earnings.. 84,494 30,556 7,962 (1,211) 38,563 9,533 (110) -------- ----- ------- ------- ------- -------- -------- ----- Total common shareholders' equity........... 287,074 67,279 7,963 20,787 94,992 96,869 (110) -------- ----- ------- ------- ------- -------- -------- ----- Total Liabilities and shareholders' equity............ $671,875 $(459) $68,013 $14,631 $34,714 $384,164 $108,348 $(169) ======== ===== ======= ======= ======= ======== ======== =====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 124 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Dominion Elwood Energy Dominion Dominion Dominion Dominion Fairless Services Construction Energy Direct Cogen NY, Equipment, Energy Hills, Company, Inc. Company, Inc. Sales, Inc. Inc. Inc.* Exchange, Inc. Inc. ------------- ------------- ------------- --------- ---------- -------------- -------- Current liabilities: Securities due within one year............... $ -- $ -- $ -- $ -- $ -- $ -- $ -- Short-term debt......... Accounts payable, trade.................. 21 326 23,036 182 328 2,499 18,932 Accrued interest........ Accrued payroll......... Accrued taxes........... 172 (874) (422) 160 Commodity contract liabilities............ 245 Other................... 86 18,000 ----- ----- ------- ----- ----- ------ ------- Total current liabilities........... 279 (548) 40,859 342 328 2,499 18,932 ----- ----- ------- ----- ----- ------ ------- Long term debt.......... 548 ----- ----- ------- ----- ----- ------ ------- Deferred credits and other liabilities: Deferred income taxes... (33) (148) 9 Deferred investment tax credits................ Other................... 272 ----- ----- ------- ----- ----- ------ ------- Total deferred credits and other liabilities........... (33) 124 9 ----- ----- ------- ----- ----- ------ ------- Total Liabilities....... 246 40,983 351 328 2,499 18,932 Minority interest....... Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock not subject to mandatory redemption............. Common shareholders' equity: Common Stock............ 1 100 1 Other paid in capital... 1 301 (311) Accumulated other comprehensive income... Retained earnings....... 318 (1,076) (41) 0 ----- ----- ------- ----- ----- ------ ------- Total common shareholders' equity.. 319 (775) (351) 100 1 ----- ----- ------- ----- ----- ------ ------- Total Liabilities and shareholders' equity... $ 565 $ -- $40,208 $ -- $ 428 $2,500 $18,932 ===== ===== ======= ===== ===== ====== =======
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 125 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Domestic Energy Dominion Dominion Power Consolidating Dominion Services Dominion Kincaid, Dominion Elwood Generation Entries and Cogen, Company, Cogen Inc. Elwood, III, Consolidated Adjustments Inc. Inc. WV, Inc (Page 136) Inc. Inc.* ------------ ------------- -------- -------- -------- ---------- -------- -------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... $ 83,833 $ -- $ -- $ -- $ -- $83,211 $ -- $ -- Gas.................... 24,008 Gas transportation and storage................ Oil and gas production.. Other................... 16,917 3,137 1,043 12,502 (169) -------- ----- ------ ------ ------ ------- ------- ----- Total.................. 124,758 3,137 1,043 83,211 12,502 (169) -------- ----- ------ ------ ------ ------- ------- ----- Expenses: Fuel, net............... 1,350 3,180 Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 58,094 (1,454) 26,852 6 Depreciation, depletion and amortization....... 12,730 76 12,654 Other taxes............. 2,408 1,105 1,101 -------- ----- ------ ------ ------ ------- ------- ----- Total.................. 74,582 (349) 76 43,787 6 -------- ----- ------ ------ ------ ------- ------- ----- Income from Operations............ 50,176 3,486 967 39,424 12,496 (169) Other Income............ 13,733 5,197 626 1,306 1,887 -------- ----- ------ ------ ------ ------- ------- ----- Income before interest and income taxes....... 63,909 5,197 4,112 2,273 41,311 12,496 (169) -------- ----- ------ ------ ------ ------- ------- ----- Interest and related charges: Interest charges........ 19,293 19,293 Preferred dividends and distributions of subsidiary trusts...... -------- ----- ------ ------ ------ ------- ------- ----- Total.................. 19,293 19,293 -------- ----- ------ ------ ------ ------- ------- ----- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 44,616 5,197 4,112 2,273 22,018 12,496 (169) Income taxes............ 17,184 1,813 1,519 799 8,665 4,869 (59) Minority interests...... 220 220 -------- ----- ------ ------ ------ ------- ------- ----- Income before extraordinary item and cumulative effect of a change in accounting principle............. 27,212 3,384 2,593 1,474 13,133 7,627 (110) Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... -------- ----- ------ ------ ------ ------- ------- ----- Net Income............. $ 27,212 $ -- $3,384 $2,593 $1,474 $13,133 $ 7,627 $(110) ======== ===== ====== ====== ====== ======= ======= =====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 126 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING INCOME STATEMENT--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Elwood Energy Energy Dominion Services Construction Direct Dominion Dominion Energy Dominion Company, Company, Sales, Cogen NY, Equipment, Exchange, Fairless Hills, Inc. Inc. Inc. Inc. Inc.* Inc. Inc. -------- ------------ -------- --------- ---------- --------- --------------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... $-- $-- $ 622 $-- $-- $-- $-- Gas.................... 24,008 Gas transportation and storage................ Oil and gas production.. Other................... 404 ---- ---- ------- ---- ---- ---- ---- Total.................. 404 24,630 ---- ---- ------- ---- ---- ---- ---- Expenses: Fuel, net............... (1,830) Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 22 (4) 32,672 Depreciation, depletion and amortization....... Other taxes............. 41 4 157 ---- ---- ------- ---- ---- ---- ---- Total.................. 63 30,999 ---- ---- ------- ---- ---- ---- ---- Income from Operations............ 341 (6,369) Other Income............ 4,717 ---- ---- ------- ---- ---- ---- ---- Income before interest and income taxes....... 341 (1,652) ---- ---- ------- ---- ---- ---- ---- Interest and related charges: Interest charges........ Preferred dividends and distributions of subsidiary trusts...... ---- ---- ------- ---- ---- ---- ---- Total.................. ---- ---- ------- ---- ---- ---- ---- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 341 (1,652) Income taxes............ 155 (577) Minority interests...... ---- ---- ------- ---- ---- ---- ---- Income before extraordinary item and cumulative effect of a change in accounting principle............. 186 (1,075) Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... ---- ---- ------- ---- ---- ---- ---- Net Income............. $186 $-- $(1,075) $-- $-- $-- $-- ==== ==== ======= ==== ==== ==== ====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 127 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Domestic Energy Dominion Power Consolidating Dominion Services Kincaid, Generation Entries and Cogen, Company, Dominion Inc. Dominion Dominion Consolidated Adjustments Inc. Inc. Cogen WV, Inc (Page 137) Elwood, Inc. Elwood III, Inc. * ------------ ------------- -------- -------- ------------- ---------- ------------ ------------------ Balance at December 31, 1999.............. $265,071 $-- $63,895 $5,370 $19,314 $81,858 $94,853 $ -- -------- ---- ------- ------ ------- ------- ------- ----- Issuance of stock--CNG acquisition...... Issuance of stock through public offering......... Issuance of stock through employee, executive loan and direct stock purchase plans... Stock repurchase and retirement... Premium income equity securities....... Other common stock activity......... 101 Comprehensive income........... 27,212 3,384 2,593 1,474 13,133 7,627 (110) Dividends and other adjustments...... (5,310) (1) 1 (5,611) -------- ---- ------- ------ ------- ------- ------- ----- Balance at December 31, 2000.............. $287,074 $-- $67,279 $7,963 $20,787 $94,992 $96,869 $(110) ======== ==== ======= ====== ======= ======= ======= =====
- -------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 128 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Dominion Elwood Energy Energy Dominion Services Construction Direct Dominion Dominion Energy Company, Inc. Company, Inc. Sales, Inc. Cogen NY, Inc. Equipment, Inc. * Exchange, Inc. ------------- ------------- ----------- -------------- ----------------- -------------- Balance at December 31, 1999................... $132 $-- $ -- $(351) $-- $-- ---- ---- ------- ----- ---- ---- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 100 1 Comprehensive income... 186 (1,075) Dividends and other adjustments........... 1 300 ---- ---- ------- ----- ---- ---- Balance at December 31, 2000................... $319 $-- $ (775) $(351) $100 $1 ==== ==== ======= ===== ==== ====
- -------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 129 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Domestic Energy Dominion Power Consolidating Dominion Services Dominion Kincaid, Dominion Generation Entries and Cogen, Company, Cogen Inc. Elwood, Consolidated Adjustments Inc. Inc. WV, Inc. (Page 138) Inc. ------------ ------------- -------- -------- -------- ---------- -------- Net Income.............. $27,212 $-- $3,384 $2,593 $1,474 $13,133 $7,627 ------- ---- ------ ------ ------ ------- ------ Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------- ---- ------ ------ ------ ------- ------ Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------- ---- ------ ------ ------ ------- ------ Other comprehensive income (Loss).......... ------- ---- ------ ------ ------ ------- ------ Comprehensive Income.... $27,212 $-- $3,384 $2,593 $1,474 $13,133 $7,627 ======= ==== ====== ====== ====== ======= ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 130 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Dominion Elwood Energy Energy Dominion Dominion Elwood Services Construction Direct Dominion Dominion Energy Fairless III, Company, Company, Sales, Cogen Equipment, Exchange, Hills, Inc. * Inc. Inc. Inc. NY, Inc. Inc.* Inc. Inc. -------- -------- ------------ -------- -------- ---------- --------- -------- Net Income.............. $(110) $186 $-- $(1,075) $-- $-- $-- $-- ----- ---- ---- ------- ---- ---- ---- ---- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ----- ---- ---- ------- ---- ---- ---- ---- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ----- ---- ---- ------- ---- ---- ---- ---- Other comprehensive income (Loss).......... ----- ---- ---- ------- ---- ---- ---- ---- Comprehensive Income.... $(110) $186 $-- $(1,075) $-- $-- $-- $-- ===== ==== ==== ======= ==== ==== ==== ====
- -------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 131 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Domestic Dominion Dominion Power Consolidating Dominion Energy Dominion Kincaid, Dominion Dominion Generation Entries and Cogen, Services Cogen WV, Inc. Elwood, Elwood III, Consolidated Adjustments Inc. Company, Inc. Inc (Page 139) Inc. Inc. * ------------ ------------- -------- ------------- --------- ---------- -------- ----------- Cash flows from (used in) operating activities: Net income.............. $ 27,212 $-- $ 3,384 $ 2,593 $ 1,474 $13,133 $ 7,627 $(110) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 12,730 76 12,654 Deferred income taxes.. 14,168 (6) 547 1,415 6,230 6,151 Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... 829 (2,784) (921) 1,878 1,448 (994) Inventories............ (1,317) (509) (808) Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. 5,279 (2,400) (3,222) (3,843) (3,900) Accrued interest and taxes................. (879) 19 2,574 (516) (2,124) 418 (59) Commodity contract assets and liabilities........... Net assets held for sale.................. Other................... (12,347) (1,214) (1,043) (90) (12,502) 140 -------- ---- ------- ------- ------- ------- -------- ----- Net cash flows from operating activities.. 45,675 (1,787) 357 2,775 26,600 (3,200) (29) Cash flow from (used in) investing activities: Plant construction and other property additions.............. (5,248) (3,969) Acquisition of exploration and production assets...... Loan originations....... Repayments of loan originations........... Sale of businesses...... Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... 67 38 29 Other .................. (22,095) (1) 9 -------- ---- ------- ------- ------- ------- -------- ----- Net cash flow used in investing activities.. (27,276) 38 (1) (3,960) 29 Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ 8,866 1,749 (351) (2,775) 5,023 3,200 Issuance of long term debt................... Repayment of long term debt................... (6,330) (6,330) Common dividend payments............... Other................... 403 -------- ---- ------- ------- ------- ------- -------- ----- Net cash flow from (used in) financing activities............. 2,939 1,749 (351) (2,775) (1,307) 3,200 -------- ---- ------- ------- ------- ------- -------- ----- Increase (decrease) in cash and cash equivalents............ 21,338 5 21,333 Cash and cash equivalents at beginning of the year.. 12 2 10 -------- ---- ------- ------- ------- ------- -------- ----- Cash and cash equivalents at end of the year............... $ 21,350 $-- $ -- $ 7 $ -- $21,343 $ -- $ -- ======== ==== ======= ======= ======= ======= ======== =====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 132 DOMINION ENERGY, INC.--DOMESTIC POWER GENERATION CONSOLIDATING STATEMENT OF CASH FLOWS--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Dominion Elwood Energy Dominion Dominion Dominion Energy Fairless Services Construction Energy Direct Cogen NY, Equipment, Exchange, Hills, Company, Inc. Company, Inc. Sales, Inc. Inc. Inc.* Inc. Inc. ------------- ------------- ------------- --------- ---------- --------- -------- Cash flows from (used in) operating activities: Net income.............. $ 186 $ -- $ (1,075) $ -- $ -- $ -- $-- Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... Deferred income taxes.. (21) (148) Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... 93 28,995 (26,886) Inventories............ Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. (411) (25,312) 23,036 2,499 18,932 (100) Accrued interest and taxes................. 105 (874) (422) Commodity contract assets and liabilities........... Net assets held for sale.................. Other................... 47 (4,999) 7,314 ----- -------- -------- ------- -------- ----- ---- Net cash flows from operating activities.. (1) (2,190) 1,819 2,499 18,932 (100) -- Cash flow from (used in) investing activities: Plant construction and other property additions.............. (1,279) Acquisition of exploration and production assets...... Loan originations....... Repayments of loan originations........... Sale of businesses...... Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... Other .................. (671) (2,500) (18,932) ----- -------- -------- ------- -------- ----- ---- Net cash flow used in investing activities.. -- -- (1,950) (2,500) (18,932) -- -- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ 2,190 (170) Issuance of long term debt................... Repayment of long term debt................... Common dividend payments............... Other................... 1 301 1 100 ----- -------- -------- ------- -------- ----- ---- Net cash flow from (used in) financing activities............. 1 2,190 131 1 -- 100 -- ----- -------- -------- ------- -------- ----- ---- Increase (decrease) in cash and cash equivalents............ -- -- -- -- -- -- -- Cash and cash equivalents at beginning of the year................... -- ----- -------- -------- ------- -------- ----- ---- Cash and cash equivalents at end of the year............... $ -- $ -- $ -- $ -- $ -- $ -- $-- ===== ======== ======== ======= ======== ===== ====
- ------- * Dominion Elwood III, Inc. and Dominion Equipment, Inc. are subsidiaries of Dominion Generation, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 133 DOMINION KINCAID, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Dominion Kincaid Inc. Entries and Kincaid, Generation, Consolidated Adjustments Inc. LLC ------------ ------------- -------- ----------- Current assets: Cash and cash equivalents...... $ 21,343 $ -- $ -- $ 21,343 Accounts receivable: Customers (less allowance).... Other......................... 7,260 7,260 Inventories: Materials and supplies........ Fossil fuel................... Gas stored--current portion... Investment securities-- trading....................... Mortgage loans held for sale... Commodity contract assets...... Unrecovered gas costs.......... Broker margin deposits......... Prepayments.................... Net assets held for sale....... Other.......................... 4,682 4,682 -------- --------- -------- -------- Total current assets.......... 33,285 33,285 -------- --------- -------- -------- Investments: Loans receivable, net.......... Investments in affiliates...... Available for sale securities.. Nuclear decommissioning trust funds......................... Investment in real estate...... Other.......................... 10,301 (118,352) 118,352 10,301 -------- --------- -------- -------- Total net investments......... 10,301 (118,352) 118,352 10,301 -------- --------- -------- -------- Property, plant and equipment: Property, plant and equipment.. 360,131 360,131 Less accumulated depreciation, depletion and amortization.... 26,054 26,054 -------- --------- -------- -------- Property, plant and equipment, net.......................... 334,077 334,077 -------- --------- -------- -------- Deferred charges and other assets: Goodwill, net.................. Regulatory assets, net......... Prepaid pension costs.......... Other, net..................... 6,501 6,501 -------- --------- -------- -------- Total deferred charges and other assets................. 6,501 6,501 -------- --------- -------- -------- Total Assets................... $384,164 $(118,352) $118,352 $384,164 ======== ========= ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 134 DOMINION KINCAID, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Dominion Kincaid Inc. Entries and Kincaid, Generation, Consolidated Adjustments Inc. LLC ------------ ------------- -------- ----------- Current liabilities: Securities due within one year......................... $ 6,330 $ -- $ -- $ 6,330 Short-term debt............... Accounts payable, trade....... 8,272 4,121 4,151 Accrued interest.............. 843 843 Accrued payroll............... Accrued taxes................. 437 (122) 559 Commodity contract liabilities.................. Other......................... 278 278 -------- --------- -------- -------- Total current liabilities.... 16,160 3,999 12,161 -------- --------- -------- -------- Long term debt................ 259,430 6,974 252,456 -------- --------- -------- -------- Deferred credits and other liabilities: Deferred income taxes......... 12,387 12,387 Deferred investment tax credits...................... Other......................... -------- --------- -------- -------- Total deferred credits and other liabilities........... 12,387 12,387 -------- --------- -------- -------- Total Liabilities............. 287,977 23,360 264,617 -------- --------- -------- -------- Minority interest............. 1,195 1,195 Obligated mandatorily redeemable preferred securities of subsidiary trusts....................... Preferred stock no subject to mandatory redemption......... Common shareholders' equity: Common Stock.................. Other paid in capital......... 56,429 (54,899) 56,429 54,899 Accumulated other comprehensive income......... Retained earnings............. 38,563 (64,648) 38,563 64,648 -------- --------- -------- -------- Total common shareholders' equity...................... 94,992 (119,547) 94,992 119,547 -------- --------- -------- -------- Total Liabilities and shareholders' equity......... $384,164 $(118,352) $118,352 $384,164 ======== ========= ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 135 DOMINION KINCAID, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Kincaid Inc. Entries and Dominion Generation, Consolidated Adjustments Kincaid, Inc. LLC ------------ ------------- ------------- ----------- Operating Revenue: Regulated sales........... Electric................. Gas...................... Nonregulated sales........ Electric................. $83,211 $ -- $ -- $83,211 Gas...................... Gas transportation and storage.................. Oil and gas production.... Other..................... (21,799) 21,799 ------- -------- ------- ------- Total.................... 83,211 (21,799) 21,799 83,211 ------- -------- ------- ------- Expenses: Fuel, net................. 3,180 3,180 Purchased power capacity, net...................... Purchased gas, net........ Liquids, capacity and other products purchased................ Restructuring and other acquisition related costs.................... Other operation and maintenance.............. 26,852 26,852 Depreciation, depletion and amortization......... 12,654 12,654 Other taxes............... 1,101 1,101 ------- -------- ------- ------- Total.................... 43,787 43,787 ------- -------- ------- ------- Income from Operations... 39,424 (21,799) 21,799 39,424 Other Income.............. 1,887 1,887 ------- -------- ------- ------- Income before interest and income taxes........ 41,311 (21,799) 21,799 41,311 ------- -------- ------- ------- Interest and related charges: Interest charges.......... 19,293 19,293 ------- -------- ------- ------- Preferred dividends and distributions of subsidiary trusts........ Total.................... 19,293 19,293 ------- -------- ------- ------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle.... 22,018 (21,799) 21,799 22,018 Income taxes.............. 8,665 8,665 Minority interests........ 220 220 ------- -------- ------- ------- Income before extraordinary item and cumulative effect of a change in accounting principle............... 13,133 (22,019) 13,134 22,018 Extraordinary item, net... Cumulative effect of a change in accounting principle, net........... ------- -------- ------- ------- Net Income............... $13,133 $(22,019) $13,134 $22,018 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 136 DOMINION KINCAID, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Kincaid Inc. Entries and Dominion Generation, Consolidated Adjustments Kincaid, Inc. LLC ------------ ------------- ------------- ----------- Balance at December 31, 1999..................... $81,858 $ (97,528) $81,858 $ 97,528 ------- --------- ------- -------- Issuance of stock--CNG acquisition............ Issuance of stock through public offering............... Issuance of stock through employee, executive loan and direct stock purchase plans.................. Stock repurchase and retirement............. Premium income equity securities............. Other common stock activity............... Comprehensive income.... 13,133 (22,019) 13,134 22,018 Dividends and other adjustments............ 1 1 ------- --------- ------- -------- Balance at December 31, 2000..................... $94,992 $(119,547) $94,992 $119,547 ======= ========= ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 137 DOMINION KINCAID, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Dominion Kincaid Inc. Entries and Kincaid, Generation, Consolidated Adjustments Inc. LLC ------------ ------------- -------- ----------- Net Income..................... $13,133 $(22,019) $13,134 $22,018 ------- -------- ------- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities................... Less: reclassification adjustment for gains (losses) realized in net income....... ------- -------- ------- ------- Unrealized gains (losses) on investment securities........ Foreign currency translation adjustment................... Minimum pension liability adjustment................... ------- -------- ------- ------- Other comprehensive income (Loss)........................ ------- -------- ------- ------- Comprehensive Income........... $13,133 $(22,019) $13,134 $22,018 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this Statement. 138 DOMINION KINCAID, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Kincaid, Consolidating Kincaid Inc. Entries and Dominion Generation, Consolidated Adjustments Kincaid, Inc. LLC ------------ ------------- ------------- ----------- Cash flows from (used in) operating activities: Net income................ $13,133 $(22,019) $ 13,134 $22,018 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............... Restructuring and other acquisition related costs................... DCI impairment losses.... Extraordinary item, net.. Impairment of regulatory assets.................. Gains on sales of subsidiaries............ Depreciation and amortization............ 12,654 12,654 Deferred income taxes.... 6,230 (6,230) 6,230 6,230 Deferred fuel expense.... Changes in current assets and liabilities: Accounts receivable...... 1,448 (3,000) 3,000 1,448 Inventories.............. (808) (808) Unrecovered gas costs.... Purchase and origination of mortgages............ Proceeds from sale and principal collections of mortgages............... Accounts payable, trade.. (3,843) 2,300 (2,300) (3,843) Accrued interest and taxes................... (2,124) 2,114 (2,114) (2,124) Commodity contract assets and liabilities......... Net assets held for sale.................... Other.................... (90) 30,684 (21,799) (8,975) ------- -------- -------- ------- Net cash flows from operating activities.... 26,600 3,849 (3,849) 26,600 ------- -------- -------- ------- Cash flow from (used in) investing activities: Plant construction and other property additions................ (3,969) (3,969) Acquisition of exploration and production assets.... Loan originations......... Repayments of loan originations............. Sale of businesses........ Sale of marketable securities............... Purchase of debt securities............... Acquisition of businesses............... Other investments......... Other..................... 9 9 ------- -------- -------- ------- Net cash flow used in investing activities.... (3,960) (3,960) ------- -------- -------- ------- Cash flow from (used in) financing activities: Issuance of common stock.. Repurchase of common stock.................... Issuance (repayment) of short term debt.......... 5,023 (3,849) 3,849 5,023 Issuance of long term debt..................... Repayment of long term debt..................... (6,330) (6,330) Common dividend payments.. Other..................... ------- -------- -------- ------- Net cash flow from (used in) financing activities............... (1,307) (3,849) 3,849 (1,307) ------- -------- -------- ------- Increase (decrease) in cash and cash equivalents.............. 21,333 21,333 Cash and cash equivalents at beginning of the year..................... 10 10 ------- -------- -------- ------- Cash and cash equivalents at end of the year....... $21,343 $ -- $ -- $21,343 ======= ======== ======== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 139 DOMINION ENERGY, INC.--FOREIGN POWER GENERATION CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Dominion Foreign Energy Dominion Energy Power Consolidating Company Management Interamerican Generation Entries and (Caymen Argentina Holding Co Consolidated Adjustments Islands) SA LDC ------------ ------------- -------- ---------- ------------- Current assets: Cash and cash equivalents............ $-- $-- $-- $-- $-- Accounts receivable: Customers (less allowance)............ Other.................. Inventories: Materials and supplies.............. Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... ---- ---- ---- ---- ---- Total current assets... ---- ---- ---- ---- ---- Investments: Loans receivable, net... Investments in affiliates............. Available for sale securities............. Nuclear decommissioning trust funds............ Investment in real estate................. Other................... ---- ---- ---- ---- ---- Total net investments.. ---- ---- ---- ---- ---- Property, plant and equipment: Property, plant and equipment.............. Less accumulated depreciation, depletion and amortization....... ---- ---- ---- ---- ---- Property, plant and equipment, net........ ---- ---- ---- ---- ---- Deferred charges and other assets: Goodwill, net........... Regulatory assets, net.. Prepaid pension costs... Other, net.............. ---- ---- ---- ---- ---- Total deferred charges and other assets...... ---- ---- ---- ---- ---- Total Assets............ $-- $-- $-- $-- $-- ==== ==== ==== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 140 DOMINION ENERGY INC.--FOREIGN POWER GENERATION CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Foreign Energy Energy Power Consolidating Company Dominion Interamerican Generation Entries and (Cayman Management Holding Co Consolidated Adjustments Islands) Argentina SA LDC ------------ ------------- -------- ------------ ------------- Current liabilities: Securities due within one year............... $-- $-- $-- $-- $-- Short-term debt......... Accounts payable, trade.................. Accrued interest........ Accrued payroll......... Accrued taxes........... Commodity contract liabilities............ Other................... ---- ---- ---- ---- ---- Total current liabilities........... ---- ---- ---- ---- ---- Long term debt.......... ---- ---- ---- ---- ---- Deferred credits and other liabilities: Deferred income taxes... Deferred investment tax credits................ Other................... ---- ---- ---- ---- ---- Total deferred credits and other liabilities........... ---- ---- ---- ---- ---- Total Liabilities....... ---- ---- ---- ---- ---- Minority interest....... Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock not subject to mandatory redemption............. Common shareholders' equity: Common Stock............ Other paid in capital... Accumulated other comprehensive income... Retained earnings....... ---- ---- ---- ---- ---- Total common shareholders' equity.. ---- ---- ---- ---- ---- Total Liabilities and shareholders' equity... $-- $-- $-- $-- $-- ==== ==== ==== ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 141 DOMINION ENERGY INC.--FOREIGN POWER GENERATION CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Foreign Energy Energy Power Consolidating Company Dominion Interamerican Generation Entries and (Cayman Management Holding Co Consolidated Adjustments Islands) Argentina SA LDC ------------ ------------- -------- ------------ ------------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... $12,976 $-- $7,477 $-- $5,499 Gas.................... Gas transportation and storage................ Oil and gas production.. Other................... 121 121 ------- ---- ------ ---- ------ Total.................. 13,097 7,477 121 5,499 ------- ---- ------ ---- ------ Expenses: Fuel, net............... 1,238 1,238 Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 3,656 2,267 154 1,235 Depreciation, depletion and amortization....... 2,529 1,507 7 1,015 Other taxes............. 757 753 4 ------- ---- ------ ---- ------ Total.................. 8,180 5,765 165 2,250 ------- ---- ------ ---- ------ Income from Operations............ 4,917 1,712 (44) 3,249 Other Income............ 2,816 969 (1) 1,848 ------- ---- ------ ---- ------ Income before interest and income taxes...... 7,733 2,681 (45) 5,097 ------- ---- ------ ---- ------ Interest and related charges: Interest charges........ 2,561 2,043 518 Preferred dividends and distributions of subsidiary trusts...... ------- ---- ------ ---- ------ Total.................. 2,561 2,043 518 ------- ---- ------ ---- ------ Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 5,172 638 (45) 4,579 Income taxes............ 164 (931) 1,095 Minority interests...... 1,935 184 1,751 ------- ---- ------ ---- ------ Income before extraordinary item and cumulative effect of a change in accounting principle............. 3,073 1,385 (45) 1,733 Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... ------- ---- ------ ---- ------ Net Income............. $ 3,073 $-- $1,385 $(45) $1,733 ======= ==== ====== ==== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 142 DOMINION ENERGY, INC.--FOREIGN POWER GENERATION CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Energy Dominion Foreign Power Consolidating Company Dominion Energy Generation Entries and (Caymen Management Interamerican Consolidated Adjustments Islands) Argentina SA Holding Co LDC ------------- ------------- -------- ------------ -------------- Balance at December 31, 1999................... $ 190,353 $-- $102,625 $ 1,044 $ 86,684 --------- ---- -------- ------- -------- Issuance of stock--CNG acquisition.......... Issuance of stock through public offering............. Issuance of stock through employee, executive loan and direct stock purchase plans................ Stock repurchase and retirement........... Premium income equity securities........... Other common stock activity............. (159,054) (98,627) (1,631) (58,796) Comprehensive income.. 3,073 1,385 (45) 1,733 Dividends and other adjustments.......... (34,372) (5,383) 632 (29,621) --------- ---- -------- ------- -------- Balance at December 31, 2000................... $ -- $-- $ -- $ -- $ -- ========= ==== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 143 DOMINION ENERGY, INC.--FOREIGN POWER GENERATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Foreign Energy Dominion Energy Power Consolidating Company Management Interamerican Generation Entries and (Caymen Argentina Holding Co Consolidated Adjustments Islands) SA LDC ------------ ------------- -------- ---------- ------------- Net Income.............. $3,073 $-- $1,385 $(45) $1,733 ------ ---- ------ ---- ------ Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------ ---- ------ ---- ------ Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------ ---- ------ ---- ------ Other comprehensive income (Loss).......... ------ ---- ------ ---- ------ Comprehensive Income.... $3,073 $-- $1,385 $(45) $1,733 ====== ==== ====== ==== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 144 DOMINION ENERGY, INC.--FOREIGN POWER GENERATION CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Energy Dominion Foreign Power Consolidating Company Dominion Energy Generation Entries and (Caymen Management Interamerican Consolidated Adjustments Islands) Argentina SA Holding Co LDC ------------- ------------- -------- ------------ -------------- Cash flows from (used in) operating activities: Net income.............. $ 3,073 $-- $ 1,385 $(45) $ 1,733 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 2,766 1,744 7 1,015 Deferred income taxes.. Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (1,922) (1,807) (2) (113) Inventories............ 42 42 Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. (1,616) (754) (29) (833) Accrued interest and taxes................. 2,337 710 (58) 1,685 Commodity contract assets and liabilities........... Net assets held for sale.................. Other.................. 323 (1,491) 38 1,776 -------- ---- ------- ---- -------- Net cash flows from operating activities.. 5,003 (213) (89) 5,305 -------- ---- ------- ---- -------- Cash flow from (used in) investing activities: Plant construction and other property additions.............. (44) (44) Acquisition of exploration and production assets...... Loan originations....... Repayments of loan originations........... Sale of businesses...... (66,215) (6,318) (5) (59,892) Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... Other .................. 6,738 6,738 -------- ---- ------- ---- -------- Net cash flow used in investing activities.. (59,521) (6,362) (5) (53,154) -------- ---- ------- ---- -------- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ (86) (8) (78) Issuance of long term debt................... Repayment of long term debt................... (111) 1,118 (1,229) Common dividend payments............... Other................... -------- ---- ------- ---- -------- Net cash flow from (used in) financing activities............. (197) 1,110 -- (1,307) Increase (decrease) in cash and cash equivalents............ (54,715) (5,465) (94) (49,156) Cash and cash equivalents at beginning of the year.. 54,715 5,465 94 49,156 -------- ---- ------- ---- -------- Cash and cash equivalents at end of the year............... $ -- $-- $ -- $-- $ -- ======== ==== ======= ==== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 145 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Dominion Dominion Carthage Energy Dominion Consolidating Reserves, Black Dominion Energy Canada San Juan, Dominion Oil & Gas Entries and Inc. Warrior Reserves Services, Limited Inc. Storage, Consolidated Adjustments (Page 152) Basin, Inc. Utah, Inc. Inc.* (Page 176) (Page 170) Inc. ------------ ------------- ---------- ----------- ---------- --------- ---------- ---------- -------- Current assets: Cash and cash equivalents..... $ 9,787 $ -- $ (2,865) $ 1,791 $ -- $ 3,253 $ 7,606 $ -- $ 2 Accounts receivable: Customers (less allowance)..... Other........... 98,136 (539,036) 444,837 6,187 81,982 11,840 40,896 51,430 Inventories: Materials and supplies....... Fossil fuel..... Gas stored-- current portion........ Investment securities-- trading......... Mortgage loans held for sale... Commodity contract assets.......... Unrecovered gas costs........... Broker margin deposits........ Prepayments...... Net assets held for sale........ Other............ 25,653 3,017 9,182 7,474 634 5,346 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Total current assets......... 133,576 (539,036) 444,989 17,160 89,456 15,727 53,848 51,430 2 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Investments: Loans receivable, net............. Investments in affiliates...... 21,565 7,357 14,208 Available for sale securities...... Nuclear decommissioning trust funds..... Investment in real estate..... Other............ 295,397 16,305 295,073 (16,305) 24 300 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Total net investments.... 316,962 16,305 302,430 (16,305) 14,232 300 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Property, plant and equipment: Property, plant and equipment... 1,367,542 554,986 29,711 79,871 183 578,476 124,315 Less accumulated depreciation, depletion and amortization.... 382,344 245,417 5,375 17,642 148 89,834 23,928 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Property, plant and equipment, net............ 985,198 309,569 24,336 62,229 35 488,642 100,387 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Deferred charges and other assets: Goodwill, net.... 2,927 2,927 Regulatory assets, net..... Prepaid pension costs........... Other, net....... 14,705 8,118 734 5,783 70 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Total deferred charges and other assets... 17,632 11,045 734 5,783 70 ---------- --------- ---------- -------- -------- ------- -------- -------- ---- Total Assets..... $1,453,368 $(522,731) $1,068,033 $ 25,191 $152,419 $15,762 $562,505 $151,887 $302 ========== ========= ========== ======== ======== ======= ======== ======== ====
- ------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 146 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Energy Consolidating Dominion Black Dominion Canada Dominion San Oil & Gas Entries and Reserves, Inc. Warrior Reserves Carthage Energy Limited Juan, Inc. Consolidated Adjustments (Page 153) Basin, Inc. Utah, Inc. Services, Inc.* (Page 177) (Page 171) ------------ ------------- -------------- ----------- ---------- --------------- ---------- ------------ Current liabilities: Securities due within one year Short-term debt.. $ 2,502 $ -- $ -- $ -- $ -- $ -- $ 2,502 $ -- Accounts payable, trade........... 37,413 (539,036) 453,142 14,956 66,383 7,917 7,478 26,573 Accrued interest........ 109 109 Accrued payroll.. Accrued taxes.... (2,264) (2,336) (5,056) (1,233) 2,717 2,332 1,312 Commodity contract liabilities..... Other............ 43,890 5,817 507 37,566 ---------- --------- ---------- ------- -------- ------- -------- -------- Total current liabilities.... 81,650 (539,036) 456,732 9,900 65,150 11,141 49,878 27,885 ---------- --------- ---------- ------- -------- ------- -------- -------- Long term debt... 774,473 16,305 300,824 22,315 3,423 382,323 49,283 ---------- --------- ---------- ------- -------- ------- -------- -------- Deferred credits and other liabilities: Deferred income taxes........... 97,497 74,409 4,196 11,754 (6,888) 13,412 671 Deferred investment tax credits Other............ 33,784 15,885 8,320 9,579 ---------- --------- ---------- ------- -------- ------- -------- -------- Total deferred credits and other liabilities.... 131,281 90,294 4,196 11,754 1,432 22,991 671 ---------- --------- ---------- ------- -------- ------- -------- -------- Total Liabilities..... 987,404 (522,731) 847,850 14,096 99,219 15,996 455,192 77,839 ---------- --------- ---------- ------- -------- ------- -------- -------- Minority interest........ 884 884 Obligated mandatorily redeemable preferred securities of subsidiary trusts.......... Preferred stock no subject to mandatory redemption...... Common shareholders' equity: Common Stock..... Other paid in capital......... 219,077 63,154 8,500 6,202 92,207 49,122 Accumulated other comprehensive income.......... (9,971) (9,971) Retained earnings........ 255,974 156,145 11,095 44,700 (6,436) 25,077 24,926 ---------- --------- ---------- ------- -------- ------- -------- -------- Total common shareholders' equity......... 465,080 219,299 11,095 53,200 (234) 107,313 74,048 ---------- --------- ---------- ------- -------- ------- -------- -------- Total Liabilities and shareholders' equity.......... $1,453,368 $(522,731) $1,068,033 $25,191 $152,419 $15,762 $562,505 $151,887 ========== ========= ========== ======= ======== ======= ======== ======== Dominion Storage, Inc. ------------- Current liabilities: Securities due within one year Short-term debt.. $ -- Accounts payable, trade........... Accrued interest........ Accrued payroll.. Accrued taxes.... Commodity contract liabilities..... Other............ ------------- Total current liabilities.... ------------- Long term debt... ------------- Deferred credits and other liabilities: Deferred income taxes........... (57) Deferred investment tax credits Other............ ------------- Total deferred credits and other liabilities.... (57) ------------- Total Liabilities..... (57) ------------- Minority interest........ Obligated mandatorily redeemable preferred securities of subsidiary trusts.......... Preferred stock no subject to mandatory redemption...... Common shareholders' equity: Common Stock..... Other paid in capital......... (108) Accumulated other comprehensive income.......... Retained earnings........ 467 ------------- Total common shareholders' equity......... 359 ------------- Total Liabilities and shareholders' equity.......... $ 302 =============
- ------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 147 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Black Dominion Carthage Energy Dominion Consolidating Reserves, Warrior Reserves Energy Canada San Juan, Dominion Oil & Gas Entries and Inc. Basin, Utah, Services, Limited Inc. Storage, Consolidated Adjustments (Page 156) Inc. Inc. Inc.* (Page 178) (Page 172) Inc. ------------ ------------- ---------- -------- -------- --------- ---------- ---------- -------- Operating Revenue: Regulated sales....... Electric............. Gas.................. Nonregulated sales.... Electric............. Gas.................. Gas transportation and storage.............. Oil and gas production........... $322,359 $ -- $81,090 $13,264 $51,277 $ -- $146,304 $30,424 $-- Other................. 49,556 14,915 23 143 1,979 32,496 -------- ------ ------- ------- ------- ------- -------- ------- --- Total................ 371,915 96,005 13,287 51,420 1,979 178,800 30,424 -------- ------ ------- ------- ------- ------- -------- ------- --- Expenses: Fuel, net............. Purchased power capacity, net........ Purchased gas, net.... Liquids, capacity and other products purchased............ Restructuring and other acquisition related costs........ Other operation and maintenance.......... 137,083 45,224 10,849 8,081 17,059 47,961 7,909 Depreciation, depletion and amortization......... 101,790 36,348 828 4,705 453 50,294 9,162 Other taxes........... 16,230 6,498 771 1,684 92 4,205 2,980 -------- ------ ------- ------- ------- ------- -------- ------- --- Total................ 255,103 88,070 12,448 14,470 17,604 102,460 20,051 -------- ------ ------- ------- ------- ------- -------- ------- --- Income from Operations.......... 116,812 7,935 839 36,950 (15,625) 76,340 10,373 Other Income.......... 10,745 (5,234) 13,229 (406) 8 8,892 (5,744) -------- ------ ------- ------- ------- ------- -------- ------- --- Income before interest and income taxes............... 127,557 (5,234) 21,164 433 36,958 (6,733) 70,596 10,373 -------- ------ ------- ------- ------- ------- -------- ------- --- Interest and related charges: Interest charges...... 39,280 (5,234) 11,807 392 1,361 480 27,042 3,432 Preferred dividends and distributions of subsidiary trusts.... -------- ------ ------- ------- ------- ------- -------- ------- --- Total................ 39,280 (5,234) 11,807 392 1,361 480 27,042 3,432 -------- ------ ------- ------- ------- ------- -------- ------- --- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle........... 88,277 9,357 41 35,597 (7,213) 43,554 6,941 Income taxes.......... 2,586 (12,082) (4,352) 10,305 (2,598) 21,519 (10,206) Minority interests.... 141 141 -------- ------ ------- ------- ------- ------- -------- ------- --- Income before extraordinary item and cumulative effect of a change in accounting principle........... 85,550 21,298 4,393 25,292 (4,615) 22,035 17,147 Extraordinary item, net.................. Cumulative effect of a change in accounting principle, net....... -------- ------ ------- ------- ------- ------- -------- ------- --- Net Income........... $ 85,550 $ -- $21,298 $ 4,393 $25,292 $(4,615) $ 22,035 $17,147 $-- ======== ====== ======= ======= ======= ======= ======== ======= ===
- ------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 148 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS EQUITY As of December 31, 2000 (Thousands)
Dominion Energy Dominion Canada Dominion Consolidating Dominion Black Dominion Limited San Juan, Dominion Oil & Gas Entries and Reserves, Inc. Warrior Reserves Carthage Energy (Page Inc. Storage, Consolidated Adjustments (Page 158) Basin, Inc. Utah, Inc. Services, Inc.* 179) (Page 173) Inc. ------------ ------------- -------------- ----------- ---------- --------------- -------- ---------- -------- Balance at December 31, 1999............. $403,457 $(3,423) $217,638 $ 6,702 $27,908 $4,381 $ 92,991 $56,902 $358 -------- ------- -------- ------- ------- ------ -------- ------- ---- Issuance of stock--CNG acquisition.... Issuance of stock through public offering....... Issuance of stock through employee, executive loan and direct stock purchase plans.......... Stock repurchase and retirement..... Premium income equity securities..... Other common stock activity....... Comprehensive income......... 78,810 21,298 4,393 25,292 (4,615) 15,295 17,147 Dividends and other adjustments.... (17,187) 3,423 (19,637) (973) (1) 1 -------- ------- -------- ------- ------- ------ -------- ------- ---- Balance at December 31, 2000............. $465,080 $ -- $219,299 $11,095 $53,200 $ (234) $107,313 $74,048 $359 ======== ======= ======== ======= ======= ====== ======== ======= ====
- ------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 149 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Energy Dominion Consolidating Reserves, Black Dominion Canada San Juan, Oil & Gas Entries and Inc. Warrior Reserves Carthage Energy Limited Inc. Consolidated Adjustments (Page 160) Basin, Inc. Utah, Inc. Services, Inc.* (Page 180) (Page 174) ------------ ------------- ---------- ----------- ---------- --------------- ---------- ---------- Net Income....... $85,550 $-- $21,298 $4,393 $25,292 $(4,615) $22,035 $17,147 ------- ---- ------- ------ ------- ------- ------- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities..... Less: reclassification adjustment for gains (losses) realized in net income......... ------- ---- ------- ------ ------- ------- ------- ------- Unrealized gains (losses) on investment securities..... Foreign currency translation adjustment..... (6,740) (6,740) Minimum pension liability adjustment..... ------- ---- ------- ------ ------- ------- ------- ------- Other comprehensive income (Loss)... (6,740) (6,740) ------- ---- ------- ------ ------- ------- ------- ------- Comprehensive Income.......... $78,810 $-- $21,298 $4,393 $25,292 $(4,615) $15,295 $17,147 ======= ==== ======= ====== ======= ======= ======= ======= Dominion Storage, Inc. ------------- Net Income....... $-- ------------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities..... Less: reclassification adjustment for gains (losses) realized in net income......... ------------- Unrealized gains (losses) on investment securities..... Foreign currency translation adjustment..... Minimum pension liability adjustment..... ------------- Other comprehensive income (Loss)... ------------- Comprehensive Income.......... $-- =============
- -------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 150 DOMINION ENERGY, INC.--OIL & GAS CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Energy Dominion Canada Consolidating Dominion Black Dominion Limited Oil & Gas Entries and Reserves, Inc. Warrior Reserves Carthage Energy Dominion (Page Consolidated Adjustments (Page 162) Basin, Inc. Utah, Inc. Services, Inc.* Storage, Inc. 181) ------------ ------------- -------------- ----------- ---------- --------------- ------------- -------- Cash flows from (used in) operating activities: Net income....... $ 85,550 $ -- $ 21,298 $ 4,393 $ 25,292 $ (4,615) $ -- $ 22,035 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle...... Restructuring and other acquisition related costs.. DCI impairment losses......... Extraordinary item, net...... Impairment of regulatory assets......... Gains on sales of subsidiaries... Depreciation and amortization... 101,152 36,231 828 4,705 453 50,296 Deferred income taxes.......... 25,755 2,252 3,654 3,775 (5,419) (115) 21,471 Deferred fuel expense........ Changes in current assets and liabilities: Accounts receivable..... (245,801) (282,040) (1,066) (69,282) 164,478 (26,477) Inventories..... 6,053 230 (983) 110 6,619 77 Unrecovered gas costs.......... Purchase and origination of mortgages...... Proceeds from sale and principal collections of mortgages...... Accounts payable, trade.......... 118,208 (149,039) 355,535 10,140 54,362 (176,138) 751 Accrued interest and taxes...... (6,366) (5,743) (4,933) (85) 3,704 115 1,618 Commodity contract assets and liabilities.... Net assets held for sale....... Other........... 8,525 (13,672) (5) (6) 11,410 1 10,798 --------- --------- --------- -------- -------- --------- ----- -------- Net cash flows from operating activities..... 93,076 (149,039) 114,091 12,028 18,871 492 1 80,569 --------- --------- --------- -------- -------- --------- ----- -------- Cash flow from (used in) investing activities: Plant construction and other property additions....... (6,003) (3,037) (470) (1,923) Acquisition of exploration and production assets.......... (138,329) (24,016) (16,925) (18,103) (78,639) Loan originations.... Repayments of loan originations.... Sale of businesses...... (19) (19) Sale of marketable securities...... Purchase of debt securities...... Acquisition of businesses...... Other investments..... 6,935 6,935 Other............ 5,313 14,399 (3,959) (4,073) 1,209 (2,330) --------- --------- --------- -------- -------- --------- ----- -------- Net cash flow used in investing activities..... (132,103) (12,673) (21,354) (24,099) 1,209 (74,034) --------- --------- --------- -------- -------- --------- ----- -------- Cash flow from (used in) financing activities: Issuance of common stock.... Repurchase of common stock.... Issuance (repayment) of short term debt............ 71,373 159,217 (87,104) 9,293 5,228 1,481 (1,831) Issuance of long term debt....... Repayment of long term debt....... (13,908) (10,178) (3,730) Common dividend payments........ (18,600) (18,600) Other............ 205 (29) 234 --------- --------- --------- -------- -------- --------- ----- -------- Net cash flow from (used in) financing activities...... 39,070 149,039 (105,733) 9,293 5,228 1,481 (5,327) --------- --------- --------- -------- -------- --------- ----- -------- Increase (decrease) in cash and cash equivalents..... 43 (4,315) (33) 3,182 1 1,208 Cash and cash equivalents at beginning of the year............ 9,744 1,450 1,824 71 1 6,398 --------- --------- --------- -------- -------- --------- ----- -------- Cash and cash equivalents at end of the year............ $ 9,787 $ -- $ (2,865) $ 1,791 $ -- $ 3,253 $ 2 $ 7,606 ========= ========= ========= ======== ======== ========= ===== ======== Dominion San Juan, Inc. (Page 175) ----------- Cash flows from (used in) operating activities: Net income....... $ 17,147 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle...... Restructuring and other acquisition related costs.. DCI impairment losses......... Extraordinary item, net...... Impairment of regulatory assets......... Gains on sales of subsidiaries... Depreciation and amortization... 8,639 Deferred income taxes.......... 137 Deferred fuel expense........ Changes in current assets and liabilities: Accounts receivable..... (31,414) Inventories..... Unrecovered gas costs.......... Purchase and origination of mortgages...... Proceeds from sale and principal collections of mortgages...... Accounts payable, trade.......... 22,597 Accrued interest and taxes...... (1,042) Commodity contract assets and liabilities.... Net assets held for sale....... Other........... (1) ----------- Net cash flows from operating activities..... 16,063 ----------- Cash flow from (used in) investing activities: Plant construction and other property additions....... (573) Acquisition of exploration and production assets.......... (646) Loan originations.... Repayments of loan originations.... Sale of businesses...... Sale of marketable securities...... Purchase of debt securities...... Acquisition of businesses...... Other investments..... Other............ 67 ----------- Net cash flow used in investing activities..... (1,152) ----------- Cash flow from (used in) financing activities: Issuance of common stock.... Repurchase of common stock.... Issuance (repayment) of short term debt............ (14,911) Issuance of long term debt....... Repayment of long term debt....... Common dividend payments........ Other............ ----------- Net cash flow from (used in) financing activities...... (14,911) ----------- Increase (decrease) in cash and cash equivalents..... Cash and cash equivalents at beginning of the year............ ----------- Cash and cash equivalents at end of the year............ $ -- ===========
- ------- * Carthage Energy Services, Inc. is a subsidiary of Dominion Reserves, Inc. The Notes to the Consolidated Financial Statements are an integral part of this statement. 151 DOMINION RESERVES, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Dominion Appalachian Dominion Consolidating Appalachian Development Reserves, Inc. Entries and Dominion Cypress Development, Properties Consolidated Adjustments Reserves, Inc. Energy, Inc. Inc. LLC -------------- ------------- -------------- ------------ ------------ ----------- Current assets: Cash and cash equivalents............ $ (2,865) $ -- $ (3,871) $-- $ 67 $ -- Accounts receivable: Customers (less allowance) Other.................. 444,837 (170,562) 496,278 426 14,608 25,128 Inventories: Materials and supplies.............. Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... 3,017 534 0 169 ---------- --------- ---------- ---- ------- -------- Total current assets... 444,989 (170,562) 492,941 426 14,844 25,128 ---------- --------- ---------- ---- ------- -------- Investments: Loans receivable, net... Investments in affiliates............. 7,357 Available for sale securities............. Nuclear decommissioning trust funds............ Investment in real estate................. Other................... 295,073 (267,510) 447,370 184 ---------- --------- ---------- ---- ------- -------- Total net investments.. 302,430 (267,510) 447,370 184 ---------- --------- ---------- ---- ------- -------- Property, plant and equipment: Property, plant and equipment.............. 554,986 87,973 28 7,865 142,641 Less accumulated depreciation, depletion and amortization....... 245,417 23,706 25 1,747 62,588 ---------- --------- ---------- ---- ------- -------- Property, plant and equipment, net........ 309,569 64,267 3 6,118 80,053 ---------- --------- ---------- ---- ------- -------- Deferred charges and other assets: Goodwill, net........... 2,927 750 1,976 Regulatory assets, net.. Prepaid pension costs... Other, net.............. 8,118 3,883 10 ---------- --------- ---------- ---- ------- -------- Total deferred charges and other assets...... 11,045 3,883 760 1,976 ---------- --------- ---------- ---- ------- -------- Total Assets............ $1,068,033 $(438,072) $1,008,461 $429 $21,906 $107,157 ========== ========= ========== ==== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 152 DOMINION RESERVES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Dominion Appalachian Dominion Consolidating Appalachian Development Reserves, Inc. Entries and Dominion Cypress Development, Properties Consolidated Adjustments Reserves, Inc. Energy, Inc. Inc. LLC -------------- ------------- -------------- ------------ ------------ ----------- Current liabilities: Securities due within one year............... Short-term debt......... Accounts payable, trade.................. $ 453,142 $(170,561) $ 541,061 $ 692 $24,905 $ 4,754 Accrued interest........ 109 109 Accrued payroll......... Accrued taxes........... (2,336) 2,856 180 383 (265) Commodity contract liabilities............ Other................... 5,817 1,090 ---------- --------- ---------- ------- ------- -------- Total current liabilities........... 456,732 (170,561) 544,026 872 26,378 4,489 ---------- --------- ---------- ------- ------- -------- Long term debt.......... 300,824 (107,061) 204,036 8,157 2,160 68,715 ---------- --------- ---------- ------- ------- -------- Deferred credits and other liabilities: Deferred income taxes... 74,409 31,697 (2,431) 172 20,634 Deferred investment tax credits................ Other................... 15,885 9,403 ---------- --------- ---------- ------- ------- -------- Total deferred credits and other liabilities........... 90,294 41,100 (2,431) 172 20,634 ---------- --------- ---------- ------- ------- -------- Total liabilities....... 847,850 (277,622) 789,162 6,598 28,710 93,838 ---------- --------- ---------- ------- ------- -------- Minority interest....... 884 Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock no subject to mandatory redemption............. Common shareholders' equity: Common Stock............ (2,279) 0 2,210 Other paid in capital... 63,154 (64,880) 63,154 853 202 3,648 Accumulated other comprehensive income... Retained earnings....... 156,145 (93,291) 156,145 (7,022) (7,006) 7,461 ---------- --------- ---------- ------- ------- -------- Total common shareholders' equity.. 219,299 (160,450) 219,299 (6,169) (6,804) 13,319 ---------- --------- ---------- ------- ------- -------- Total Liabilities and shareholders' equity... $1,068,033 $(438,072) $1,008,461 $ 429 $21,906 $107,157 ========== ========= ========== ======= ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 153 DOMINION RESERVES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Gas Processing Dominion Great Lakes Dominion Dominion Phoenix MI, Inc. Midwest Compression, Reserves Gulf Reserves Dominion (Page 164) Energy, Inc. Inc. Coast, Inc. Indiana, Inc. Energy, LLC ------------ ------------ ------------ ------------- ------------- ----------- Current assets: Cash and cash equivalents............ $ 728 $ 169 $ 13 $ -- $ 29 $-- Accounts receivable: Customers (less allowance)............ Other.................. 4,702 64,176 5,206 1,199 3,676 Inventories: Materials and supplies.............. Fossil fuel............ Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. Unrecovered gas costs... Broker margin deposits.. Prepayments............. Net assets held for sale................... Other................... 25 2,159 230 0 (100) ------- -------- ------- ------- ------ ---- Total current assets... 5,455 66,504 5,449 1,199 3,605 ------- -------- ------- ------- ------ ---- Investments: Loans receivable, net... Investments in affiliates............. 7,357 Available for sale securities............. Nuclear decommissioning trust funds............ Investment in real estate................. Other................... 506 62,888 51,635 ------- -------- ------- ------- ------ ---- Total net investments.. 7,863 62,888 51,635 ------- -------- ------- ------- ------ ---- Property, plant and equipment: Property, plant and equipment.............. 27,356 277,026 8,375 1,137 2,585 Less accumulated depreciation, depletion and amortization....... 14,316 139,091 2,090 1,125 729 ------- -------- ------- ------- ------ ---- Property, plant and equipment, net........ 13,040 137,935 6,285 12 1,856 ------- -------- ------- ------- ------ ---- Deferred charges and other assets: Goodwill, net........... 201 Regulatory assets, net.. Prepaid pension costs... Other, net.............. 4,225 ------- -------- ------- ------- ------ ---- Total deferred charges and other assets...... 4,225 201 ------- -------- ------- ------- ------ ---- Total Assets............ $26,358 $271,552 $11,935 $52,846 $5,461 $-- ======= ======== ======= ======= ====== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 154 DOMINION RESERVES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Gas Processing Dominion Great Lakes Dominion Dominion Phoenix MI, Inc. Midwest Compression, Reserves Gulf Reserves Dominion (Page 165) Energy, Inc. Inc. Coast, Inc. Indiana, Inc. Energy, LLC ------------ ------------ ------------ ------------- ------------- ----------- Current liabilities: Securities due within one year............... Short-term debt......... Accounts payable, trade.................. $ 944 $ 47,703 $ 2,493 $ 798 $ 353 $-- Accrued interest........ Accrued payroll......... Accrued taxes........... (104) (2,762) (151) 29 (2,502) Commodity contract liabilities............ Other................... 3,560 1,167 ------- -------- ------- ------- ------- ---- Total current liabilities........... 840 48,501 3,509 827 (2,149) ------- -------- ------- ------- ------- ---- Long term debt.......... 13,330 93,424 3,681 14,382 ------- -------- ------- ------- ------- ---- Deferred credits and other liabilities: Deferred income taxes... 4,149 15,793 892 1,540 1,963 Deferred investment tax credits................ Other................... 6,377 105 ------- -------- ------- ------- ------- ---- Total deferred credits and other liabilities........... 4,149 22,170 892 1,645 1,963 ------- -------- ------- ------- ------- ---- Total liabilities....... 18,319 164,095 8,082 2,472 14,196 ------- -------- ------- ------- ------- ---- Minority interest....... 884 Obligated mandatorily redeemable preferred securities of subsidiary trusts...... Preferred stock no subject to mandatory redemption............. Common shareholders' equity: Common Stock............ 3 56 10 0 Other paid in capital... 8 37,543 40 21,937 649 Accumulated other comprehensive income... Retained earnings....... 7,144 69,858 3,803 28,437 (9,384) ------- -------- ------- ------- ------- ---- Total common shareholders' equity.. 7,155 107,457 3,853 50,374 (8,735) ------- -------- ------- ------- ------- ---- Total liabilities and shareholders' equity... $26,358 $271,552 $11,935 $52,846 $ 5,461 $-- ======= ======== ======= ======= ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 155 DOMINION RESERVES, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Appalachian Dominion Consolidating Appalachian Development Reserves, Inc. Entries and Dominion Cypress Development, Properties Consolidated Adjustments Reserves, Inc Energy, Inc. Inc. LLC -------------- ------------- ------------- ------------ ------------ ----------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... Gas.................... Gas transportation and storage................ Oil and gas production.. $ 81,090 $ -- $ 1,701 $ -- $ -- $22,303 Other................... 14,915 (20,996) 21,130 1,197 -------- -------- ------- ----- ------- ------- Total.................. 96,005 (20,996) 22,831 1,197 22,303 -------- -------- ------- ----- ------- ------- Expenses: Fuel, net............... Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 45,224 9,916 60 3,464 5,190 Depreciation, depletion and amortization....... 36,348 6,957 7 560 6,675 Other taxes............. 6,498 524 257 1,610 -------- -------- ------- ----- ------- ------- Total.................. 88,070 17,397 67 4,281 13,475 -------- -------- ------- ----- ------- ------- Income from Operations............ 7,935 (20,996) 5,434 (67) (3,084) 8,828 Other Income............ 13,229 (9,197) 23,892 185 -------- -------- ------- ----- ------- ------- Income before interest and income taxes...... 21,164 (30,193) 29,326 (67) (2,899) 8,828 -------- -------- ------- ----- ------- ------- Interest and related charges: Interest charges........ 11,807 (9,197) 7,798 524 351 4,303 Preferred dividends and distributions of subsidiary trusts...... -------- -------- ------- ----- ------- ------- Total.................. 11,807 (9,197) 7,798 524 351 4,303 -------- -------- ------- ----- ------- ------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 9,357 (20,996) 21,528 (591) (3,250) 4,525 Income taxes............ (12,082) 228 (207) (1,119) (2,141) Minority interests...... 141 -------- -------- ------- ----- ------- ------- Income before extraordinary item and cumulative effect of a change in accounting principle............. 21,298 (20,996) 21,300 (384) (2,131) 6,666 Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... -------- -------- ------- ----- ------- ------- Net Income............. $ 21,298 $(20,996) $21,300 $(384) $(2,131) $ 6,666 ======== ======== ======= ===== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 156 DOMINION RESERVES, INC. CONSOLIDATING INCOME STATEMENT--(Continued) For the Year Ended December 31, 2000 (Thousands)
Dominion Gas Processing Dominion Great Lakes Dominion Dominion Phoenix MI, Inc. Midwest Compression, Reserves Gulf Reserves Dominion (Page 166) Energy, Inc. Inc. Coast, Inc. Indiana, Inc. Energy, LLC ------------ ------------ ------------ ------------- ------------- ----------- Operating Revenue: Regulated sales......... Electric............... Gas.................... Nonregulated sales...... Electric............... Gas.................... Gas transportation and storage................ Oil and gas production.. $ -- $56,000 $ -- $ 33 $ 1,053 $-- Other................... 6,477 401 5,898 808 ------ ------- ------ ------ ------- ---- Total.................. 6,477 56,401 5,898 33 1,053 808 ------ ------- ------ ------ ------- ---- Expenses: Fuel, net............... Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 1,545 21,567 3,004 20 68 390 Depreciation, depletion and amortization....... 1,440 19,016 716 30 761 186 Other taxes............. 3,711 342 24 30 ------ ------- ------ ------ ------- ---- Total.................. 2,985 44,294 4,062 50 853 606 ------ ------- ------ ------ ------- ---- Income from Operations............ 3,492 12,107 1,836 (17) 200 202 Other Income............ 31 3,185 3,336 (8,411) 208 ------ ------- ------ ------ ------- ---- Income before interest and income taxes...... 3,523 15,292 1,836 3,319 (8,211) 410 ------ ------- ------ ------ ------- ---- Interest and related charges: Interest charges........ 883 5,786 246 35 960 118 Preferred dividends and distributions of subsidiary trusts...... ------ ------- ------ ------ ------- ---- Total.................. 883 5,786 246 35 960 118 ------ ------- ------ ------ ------- ---- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 2,640 9,506 1,590 3,284 (9,171) 292 Income taxes............ 875 (8,156) 377 1,149 (3,207) 119 Minority interests...... 141 ------ ------- ------ ------ ------- ---- Income before extraordinary item and cumulative effect of a change in accounting principle............. 1,624 17,662 1,213 2,135 (5,964) 173 Extraordinary item, net Cumulative effect of a change in accounting principle, net......... ------ ------- ------ ------ ------- ---- Net Income............. $1,624 $17,662 $1,213 $2,135 $(5,964) $173 ====== ======= ====== ====== ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 157 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Dominion Appalachian Dominion Consolidating Appalachian Development Reserves, Inc. Entries and Dominion Cypress Development, Properties Consolidated Adjustments Reserves, Inc. Energy, Inc. Inc. LLC -------------- ------------- -------------- ------------ ------------ ----------- Balance at December 31, 1999................... $217,638 $(139,626) $214,216 $(5,784) $(4,674) $ 6,654 -------- --------- -------- ------- ------- ------- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 2,279 2,210 Comprehensive income... 21,298 (20,996) 21,300 (384) (2,131) 6,666 Dividends and other adjustments........... (19,637) 2,451 (16,217) (1) (1) (2,211) -------- --------- -------- ------- ------- ------- Balance at December 31, 2000................... $219,299 $(160,450) $219,299 $(6,169) $(6,804) $13,319 ======== ========= ======== ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 158 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY--(Continued) As of December 31, 2000 (Thousands)
Dominion Gas Processing Dominion Great Lakes Dominion Dominion Phoenix MI, Inc. Midwest Compression, Reserves Gulf Reserves Dominion (Page 167) Energy, Inc. Inc. Coast, Inc. Indiana, Inc. Energy, LLC ------------ ------------ ------------ ------------- ------------- ----------- Balance at December 31, 1999................... $5,531 $ 89,795 $2,638 $48,239 $(2,774) $ 3,423 ------ -------- ------ ------- ------- ------- Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 3 56 10 Comprehensive income... 1,624 17,662 1,213 2,135 (5,964) 173 Dividends and other adjustments........... (3) (56) (8) 3 (3,596) ------ -------- ------ ------- ------- ------- Balance at December 31, 2000................... $7,155 $107,457 $3,853 $50,374 $(8,735) $ -- ====== ======== ====== ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 159 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Consolidating Appalachian Appalachian Reserves, Inc. Entries and Dominion Cypress Development, Development Consolidated Adjustments Reserves, Inc. Energy, Inc. Inc. Properties LLC -------------- ------------- -------------- ------------ ------------ -------------- Net Income.............. $21,298 $(20,996) $21,300 $(384) $(2,131) $6,666 ------- -------- ------- ----- ------- ------ Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------- -------- ------- ----- ------- ------ Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------- -------- ------- ----- ------- ------ Other comprehensive income (Loss).......... ------- -------- ------- ----- ------- ------ Comprehensive Income.... $21,298 $(20,996) $21,300 $(384) $(2,131) $6,666 ======= ======== ======= ===== ======= ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 160 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Gas Dominion Processing Dominion Great Lakes Reserves Dominion Phoenix MI, Inc. Midwest Compression, Gulf Reserves Dominion (Page 168) Energy, Inc. Inc. Coast, Inc. Indiana, Inc. Energy, LLC ---------- ------------ ------------ ----------- ------------- ----------- Net Income.............. $1,624 $17,662 $1,213 $2,135 $(5,964) $173 ------ ------- ------ ------ ------- ---- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------ ------- ------ ------ ------- ---- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------ ------- ------ ------ ------- ---- Other comprehensive income (Loss).......... ------ ------- ------ ------ ------- ---- Comprehensive Income.... $1,624 $17,662 $1,213 $2,135 $(5,964) $173 ====== ======= ====== ====== ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 161 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Dominion Dominion Appalachian Reserves, Consolidating Dominion Cypress Appalachian Development Inc. Entries and Reserves, Energy, Development, Properties Consolidated Adjustments Inc. Inc. Inc. LLC ------------ ------------- --------- ------- ------------ ----------- Cash flows from (used in) operating activities: Net income.............. $ 21,298 $ (20,996) $ 21,300 $ (384) $ (2,131) $ 6,666 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 36,231 6,957 7 560 6,675 Deferred income taxes.. 2,252 3,287 (2,263) (67) 823 Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (282,040) 152,817 (466,188) 81 34,909 8,927 Inventories............ 230 (110) Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. 355,535 (152,817) 536,792 280 (27,829) (29,151) Accrued interest and taxes................. (5,743) (3,143) 2,256 307 (1,398) Commodity contract assets and liabilities........... Net assets held for sale.................. Other.................. (13,672) 20,996 (25,888) (61) --------- --------- --------- ------- -------- -------- Net cash flows from operating activities.. 114,091 73,007 (23) 5,688 (7,458) --------- --------- --------- ------- -------- -------- Cash flow from (used in) investing activities: Plant construction and other property additions.............. (3,037) (1,282) Acquisition of exploration and production assets...... (24,016) (13,973) (506) (6,795) Loan originations....... Repayments of loan originations........... Sale of businesses...... (19) Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... Other .................. 14,399 11,318 1,658 --------- --------- --------- ------- -------- -------- Net cash flow used in investing activities.. (12,673) (2,655) (130) (6,795) --------- --------- --------- ------- -------- -------- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ (87,104) (56,572) 23 (5,724) 14,253 Issuance of long term debt................... Repayment of long term debt................... Common dividend payments............... (18,600) (18,600) Other................... (29) --------- --------- --------- ------- -------- -------- Net cash flow from (used in) financing activities............. (105,733) (75,172) 23 (5,724) 14,253 --------- --------- --------- ------- -------- -------- Increase (decrease) in cash and cash equivalents............ (4,315) (4,820) (166) Cash and cash equivalents at beginning of the year.. 1,450 949 233 --------- --------- --------- ------- -------- -------- Cash and cash equivalents at end of the year............... $ (2,865) $ -- $ (3,871) $ -- $ 67 $ -- ========= ========= ========= ======= ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 162 DOMINION RESERVES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS--(Continued) For The Year Ended December 31, 2000 (Thousands)
Dominion Gas Dominion Dominion Dominion Phoenix Processing Midwest Great Lakes Reserves Reserves Dominion MI, Inc. Energy, Compression, Gulf Coast, Indiana, Energy, (Page 169) Inc. Inc. Inc. Inc. LLC ---------- -------- ------------ ----------- -------- -------- Cash flows from (used in) operating activities: Net income.............. $ 1,624 $ 17,662 $ 1,213 $ 2,135 $(5,964) $ 173 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. Restructuring and other acquisition related costs................. DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 1,320 18,938 392 30 1,163 189 Deferred income taxes.. 369 (1,940) 255 1,383 406 (1) Deferred fuel expense.. Changes in current assets and liabilities: Accounts receivable.... (1,527) 6,741 (1,568) (393) (3,008) (12,831) Inventories............ (1,549) 104 1785 Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. 613 (5,579) (75) 215 163 32,923 Accrued interest and taxes................. (95) (915) (82) (276) (2,515) 118 Commodity contract assets and liabilities........... Net assets held for sale.................. Other.................. 519 539 444 2 10,189 (20,412) ------- -------- ------- ------- ------- -------- Net cash flows from operating activities.. 2,823 33,897 683 3,096 434 1,944 ------- -------- ------- ------- ------- -------- Cash flow from (used in) investing activities: Plant construction and other property additions.............. (80) (2,272) 594 3 Acquisition of exploration and production assets...... (2,492) (247) (3) Loan originations....... Repayments of loan originations........... Sale of businesses...... (19) Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... Other .................. (67) 2,622 (59) (1,073) ------- -------- ------- ------- ------- -------- Net cash flow used in investing activities.. (147) (2,142) 347 (59) (1,092) ------- -------- ------- ------- ------- -------- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ (2,136) (31,606) (1,002) (3,096) (375) (869) Issuance of long term debt................... Repayment of long term debt................... Common dividend payments............... Other................... (29) ------- -------- ------- ------- ------- -------- Net cash flow from (used in) financing activities............. (2,136) (31,606) (1,031) (3,096) (375) (869) ------- -------- ------- ------- ------- -------- Increase (decrease) in cash and cash equivalents............ 540 149 (1) (17) Cash and cash equivalents at beginning of the year.. 188 19 15 29 17 ------- -------- ------- ------- ------- -------- Cash and cash equivalents at end of the year............... $ 728 $ 168 $ 14 $ -- $ 29 $ -- ======= ======== ======= ======= ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 163 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Gas Processing Consolidating Dominion Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ------------ -------- Current assets: Cash and cash equivalents..... $ 728 $ -- $ -- $ 728 Accounts receivable: Customers (less allowance)... Other........................ 4,702 3,541 1,161 Inventories: Materials and supplies....... Fossil fuel.................. Gas stored--current portion.. Investment securities-- trading...................... Mortgage loans held for sale.. Commodity contract assets..... Unrecovered gas costs......... Broker margin deposits........ Prepayments................... Net assets held for sale...... Other......................... 25 25 ------- -------- ------- ------- Total current assets......... 5,455 3,541 1,914 ------- -------- ------- ------- Investments: Loans receivable, net......... Investments in affiliates..... 7,357 7,357 Available for sale securities................... Nuclear decommissioning trust funds........................ Investment in real estate..... Other......................... 506 (13,857) 14,363 ------- -------- ------- ------- Total net investments........ 7,863 (13,857) 21,720 ------- -------- ------- ------- Property, plant and equipment: Property, plant and equipment.................... 27,356 27,356 Less accumulated depreciation, depletion and amortization... 14,316 14,316 ------- -------- ------- ------- Property, plant and equipment, net.............. 13,040 13,040 ------- -------- ------- ------- Deferred charges and other assets: Goodwill, net................. Regulatory assets, net........ Prepaid pension costs......... Other, net.................... ------- -------- ------- ------- Total deferred charges and other assets ------- -------- ------- ------- Total Assets.................. $26,358 $(13,857) $25,261 $14,954 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 164 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Gas Processing Consolidating Dominion Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ------------ -------- Current liabilities: Securities due within one year......................... Short-term debt............... Accounts payable, trade....... $ 944 $ -- $ 731 $ 213 Accrued interest.............. Accrued payroll............... Accrued taxes................. (104) (104) Commodity contract liabilities.................. Other......................... ------- -------- ------- ------- Total current liabilities.... 840 627 213 ------- -------- ------- ------- Long term debt................ 13,330 13,330 ------- -------- ------- ------- Deferred credits and other liabilities: Deferred income taxes......... 4,149 4,149 Deferred investment tax credits...................... Other......................... ------- -------- ------- ------- Total deferred credits and other liabilities........... 4,149 4,149 0 ------- -------- ------- ------- Total Liabilities............. 18,319 18,106 213 ------- -------- ------- ------- Minority interest............. 884 884 Obligated mandatorily redeemable preferred securities of subsidiary trusts....................... Preferred stock no subject to mandatory redemption......... Common shareholders' equity: Common Stock.................. 3 (12,391) 3 12,391 Other paid in capital......... 8 8 Accumulated other comprehensive income......... Retained earnings............. 7,144 (2,350) 7,144 2,350 ------- -------- ------- ------- Total common shareholders' equity...................... 7,155 (14,741) 7,155 14,741 ------- -------- ------- ------- Total Liabilities and shareholders' equity......... $26,358 $(13,857) $25,261 $14,954 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 165 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Gas Processing Consolidating Dominion Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ------------ -------- Operating Revenue: Regulated sales............... Electric..................... Gas.......................... Nonregulated sales............ Electric..................... Gas.......................... Gas transportation and storage...................... Oil and gas production........ Other......................... $6,477 $(2,209) $3,382 $5,304 ------ ------- ------ ------ Total........................ 6,477 (2,209) 3,382 5,304 ------ ------- ------ ------ Expenses: Fuel, net..................... Purchased power capacity, net.......................... Purchased gas, net............ Liquids, capacity and other products purchased........... Restructuring and other acquisition related costs.... Other operation and maintenance.................. 1,545 1,545 Depreciation, depletion and amortization................. 1,440 1,440 Other taxes................... ------ ------- ------ ------ Total........................ 2,985 2,985 ------ ------- ------ ------ Income from Operations....... 3,492 (2,209) 3,382 2,319 Other Income.................. 31 31 ------ ------- ------ ------ Income before interest and income taxes................ 3,523 (2,209) 3,382 2,350 ------ ------- ------ ------ Interest and related charges: Interest charges.............. 883 883 Preferred dividends and distributions of subsidiary trusts....................... ------ ------- ------ ------ Total........................ 883 883 ------ ------- ------ ------ Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle................... 2,640 (2,209) 2,499 2,350 Income taxes.................. 875 875 Minority interests............ 141 141 ------ ------- ------ ------ Income before extraordinary item and cumulative effect of a change in accounting principle................... 1,624 (2,350) 1,624 2,350 Extraordinary item, net....... Cumulative effect of a change in accounting principle, net.......................... ------ ------- ------ ------ Net Income................... $1,624 $(2,350) $1,624 $2,350 ====== ======= ====== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 166 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY Consolidating Balance Sheet As of December 31, 2000
Dominion Gas Processing Consolidating Dominion Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ------------ -------- Balance at December 31, 1999.. $5,531 $(15,526) $5,531 $15,526 ------ -------- ------ ------- Issuance of stock--CNG acquisition................ Issuance of stock through public offering............ Issuance of stock through employee, executive loan and direct stock purchase plans...................... Stock repurchase and retirement................. Premium income equity securities................. Other common stock activity................... 3 (12,391) 3 12,391 Comprehensive income........ 1,624 (2,350) 1,624 2,350 Dividends and other adjustments................ (3) 15,526 (3) (15,526) ------ -------- ------ ------- Balance at December 31, 2000.. $7,155 $(14,741) $7,155 $14,741 ====== ======== ====== =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 167 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Gas Processing Consolidating Dominion Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ------------ -------- Net Income.................... $1,624 $(2,350) $1,624 $2,350 ------ ------- ------ ------ Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities.................. Less: reclassification adjustment for gains (losses) realized in net income...................... ------ ------- ------ ------ Unrealized gains (losses) on investment securities....... Foreign currency translation adjustment.................. Minimum pension liability adjustment.................. ------ ------- ------ ------ Other comprehensive income (Loss)....................... ------ ------- ------ ------ Comprehensive Income.......... $1,624 $(2,350) $1,624 $2,350 ====== ======= ====== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 168 DOMINION GAS PROCESSING MI, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000
Dominion Gas Dominion Processing Consolidating Gas MI, Inc. Entries and Processing Frederic Consolidated Adjustments MI, Inc. HOF, LP ------------ ------------- ---------- -------- Cash flows from (used in) operating activities: Net income..................... $ 1,624 $(2,350) $ 1,624 $ 2,350 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle...... Restructuring and other acquisition related costs.... DCI impairment losses......... Extraordinary item, net....... Impairment of regulatory assets....................... Gains on sales of subsidiaries................. Depreciation and amortization................. 1,320 1,320 Deferred income taxes......... 369 369 Deferred fuel expense......... Changes in current assets and liabilities: Accounts receivable........... (1,527) (1,596) 69 Inventories................... Unrecovered gas costs......... Purchase and origination of mortgages.................... Proceeds from sale and principal collections of mortgages.................... Accounts payable, trade....... 613 528 85 Accrued interest and taxes.... (95) (95) Commodity contract assets and liabilities.................. Net assets held for sale...... Other......................... 519 2,350 1,306 (3,137) ------- ------- ------- ------- Net cash flows from operating activities................... 2,823 2,136 687 Cash flow from (used in) investing activities: Plant construction and other property additions............ (80) (80) Acquisition of exploration and production assets............. Loan originations.............. Repayments of loan originations.................. Sale of businesses............. Sale of marketable securities.. Purchase of debt securities.... Acquisition of businesses...... Other investments.............. Other.......................... (67) (67) ------- ------- ------- ------- Net cash flow used in investing activities......... (147) (147) Cash flow from (used in) financing activities: Issuance of common stock....... Repurchase of common stock..... Issuance (repayment) of short term debt..................... (2,136) (2,136) Issuance of long term debt..... Repayment of long term debt.... Common dividend payments....... Other......................... ------- ------- ------- ------- Net cash flow from (used in) financing activities.......... (2,136) (2,136) Increase (decrease) in cash and cash equivalents.............. 540 540 Cash and cash equivalents at beginning of the year......... 188 188 ------- ------- ------- ------- Cash and cash equivalents at end of the year............... $ 728 $ -- $ -- $ 728 ======= ======= ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 169 DOMINION SAN JUAN, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion San Consolidating Juan, Inc. Entries and Dominion San San Juan Consolidated Adjustments Juan, Inc. Partners, LLC ------------ ------------- ------------ ------------- Current assets: Cash and cash equivalents............. Accounts receivable: Customers (less allowance)............. Other................... $ 51,430 $ -- $ -- $ 51,430 Inventories: Materials and supplies.. Fossil fuel............. Gas stored--current portion................ Investment securities-- trading................. Mortgage loans held for sale.................... Commodity contract assets.................. Unrecovered gas costs.... Broker margin deposits... Prepayments.............. Net assets held for sale.................... Other.................... -------- -------- ------- -------- Total current assets.... 51,430 51,430 -------- -------- ------- -------- Investments: Loans receivable, net.... Investments in affiliates.............. Available for sale securities.............. Nuclear decommissioning trust funds............. Investment in real estate.................. Other.................... 0 (74,048) 74,048 -------- -------- ------- -------- Total net investments... 0 (74,048) 74,048 -------- -------- ------- -------- Property, plant and equipment: Property, plant and equipment............... 124,315 124,315 Less accumulated depreciation, depletion and amortization........ 23,928 23,928 -------- -------- ------- -------- Property, plant and equipment, net......... 100,387 100,387 -------- -------- ------- -------- Deferred charges and other assets: Goodwill, net............ Regulatory assets, net... Prepaid pension costs.... Other, net............... 70 70 -------- -------- ------- -------- Total deferred charges and other assets....... 70 70 -------- -------- ------- -------- Total Assets............. $151,887 $(74,048) $74,048 $151,887 ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 170 DOMINION SAN JUAN, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion San Consolidating San Juan Juan, Inc. Entries and Dominion San Partners, Consolidated Adjustments Juan, Inc. LLC ------------ ------------- ------------ --------- Current liabilities: Securities due within one year........................ Short-term debt.............. Accounts payable, trade...... $ 26,573 $ -- $ -- $ 26,573 Accrued interest............. Accrued payroll.............. Accrued taxes................ 1,312 1,312 Commodity contract liabilities................. Other........................ -------- -------- ------- -------- Total current liabilities... 27,885 27,885 -------- -------- ------- -------- Long term debt............... 49,283 49,283 -------- -------- ------- -------- Deferred credits and other liabilities: Deferred income taxes........ 671 671 Deferred investment tax credits..................... Other........................ -------- -------- ------- -------- Total deferred credits and other liabilities.......... 671 671 -------- -------- ------- -------- Total Liabilities............ 77,839 77,839 -------- -------- ------- -------- Minority interest............ Obligated mandatorily redeemable preferred securities of subsidiary trusts...................... Preferred stock no subject to mandatory redemption........ Common shareholders' equity: Common Stock................. Other paid in capital........ 49,122 (49,122) 49,122 49,122 Accumulated other comprehensive income........ Retained earnings............ 24,926 (24,926) 24,926 24,926 -------- -------- ------- -------- Total common shareholders' equity..................... 74,048 (74,048) 74,048 74,048 -------- -------- ------- -------- Total Liabilities and shareholders' equity........ $151,887 $(74,048) $74,048 $151,887 ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 171 DOMINION SAN JUAN, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion San Consolidating San Juan Juan, Inc. Entries and Dominion San Partners, Consolidated Adjustments Juan, Inc. LLC ------------ ------------- ------------ --------- Operating Revenue: Regulated sales Electric................... Gas........................ Nonregulated sales Electric................... Gas........................ Gas transportation and storage.................... Oil and gas production...... $ 30,424 $ -- $ -- $ 30,424 Other....................... (17,146) 17,146 -------- -------- ------- -------- Total...................... 30,424 (17,146) 17,146 30,424 -------- -------- ------- -------- Expenses: Fuel, net................... Purchased power capacity, net........................ Purchased gas, net.......... Liquids, capacity and other products purchased......... Restructuring and other acquisition related costs.. Other operation and maintenance................ 7,909 7,909 Depreciation, depletion and amortization............... 9,162 9,162 Other taxes................. 2,980 2,980 -------- -------- ------- -------- Total...................... 20,051 20,051 -------- -------- ------- -------- Income from Operations..... 10,373 (17,146) 17,146 10,373 Other Income................ -------- -------- ------- -------- Income before interest and income taxes.............. 10,373 (17,146) 17,146 10,373 -------- -------- ------- -------- Interest and related charges: Interest charges............ 3,432 3,432 Preferred dividends and distributions of subsidiary trusts..................... -------- -------- ------- -------- Total...................... 3,432 3,432 -------- -------- ------- -------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle................. 6,941 (17,146) 17,146 6,941 Income taxes................ (10,206) (10,206) Minority interests.......... -------- -------- ------- -------- Income before extraordinary item and cumulative effect of a change in accounting principle................. 17,147 (17,146) 17,146 17,147 Extraordinary item, net..... Cumulative effect of a change in accounting principle, net............. -------- -------- ------- -------- Net Income................. $ 17,147 $(17,146) $17,146 $ 17,147 ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 172 DOMINION SAN JUAN, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion San Consolidating San Juan Juan, Inc. Entries and Dominion San Partners, Consolidated Adjustments Juan, Inc. LLC ------------ ------------- ------------ --------- Balance at December 31, 1999........................ $56,902 $(56,902) $56,902 $56,902 ------- -------- ------- ------- Issuance of stock--CNG acquisition............... Issuance of stock through public offering........... Issuance of stock through employee, executive loan and direct stock purchase plans..................... Stock repurchase and retirement................ Premium income equity securities................ Other common stock activity.................. Comprehensive income....... 17,147 17,147 Dividends and other adjustments............... (1) (17,146) 17,146 (1) ------- -------- ------- ------- Balance at December 31, 2000........................ $74,048 $(74,048) $74,048 $74,048 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 173 DOMINION SAN JUAN, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2000 (Thousands)
Dominion Consolidating San Juan, Inc. Entries and Dominion San Juan Consolidated Adjustments San Juan, Inc. Partners, LLC -------------- ------------- -------------- ------------- Net Income.............. $17,147 $(17,146) $17,146 $17,147 ------- -------- ------- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------- -------- ------- ------- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------- -------- ------- ------- Other comprehensive income (Loss).......... ------- -------- ------- ------- Comprehensive Income.... $17,147 $(17,146) $17,146 $17,147 ======= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 174 DOMINION SAN JUAN, INC. CONSOLIDATING STATEMENTS OF CASH FLOW For the Year Ended December 31, 2000 (Thousands)
Dominion San Consolidating Dominion San Juan Juan, Inc. Entries and San Juan, Partners, Consolidated Adjustments Inc. LLC ------------ ------------- --------- --------- Cash flows from (used in) operating activities: Net income..................... $ 17,147 $(17,146) $17,146 $ 17,147 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle...... Restructuring and other acquisition related costs.... DCI impairment losses......... Extraordinary item, net....... Impairment of regulatory assets....................... Gains on sales of subsidiaries................. Depreciation and amortization................. 8,639 8,639 Deferred income taxes......... 137 137 Deferred fuel expense......... Changes in current assets and liabilities: Accounts receivable........... (31,414) (31,414) Inventories................... Unrecovered gas costs......... Purchase and origination of mortgages.................... Proceeds from sale and principal collections of mortgages.................... Accounts payable, trade....... 22,597 22,597 Accrued interest and taxes.... (1,042) (1,042) Commodity contract assets and liabilities.................. Net assets held for sale...... Other......................... (1) (1) -------- -------- ------- -------- Net cash flows from operating activities................... 16,063 (17,146) 17,146 16,063 -------- -------- ------- -------- Cash flow from (used in) investing activities: Plant construction and other property additions............ (573) (573) Acquisition of exploration and production assets............. (646) (646) Loan originations.............. Repayments of loan originations.................. Sale of businesses............. Sale of marketable securities.. Purchase of debt securities.... Acquisition of businesses...... Other investments.............. Other.......................... 67 67 -------- -------- ------- -------- Net cash flow used in investing activities......... (1,152) (1,152) -------- -------- ------- -------- Cash flow from (used in) financing activities: Issuance of common stock....... Repurchase of common stock..... Issuance (repayment) of short term debt..................... (14,911) (14,911) Issuance of long term debt..... Repayment of long term debt.... Common dividend payments....... Other.......................... -------- -------- ------- -------- Net cash flow from (used in) financing activities.......... (14,911) (14,911) -------- -------- ------- -------- Increase (decrease) in cash and cash equivalents.............. (17,146) 17,146 Cash and cash equivalents at beginning of the year......... -------- -------- ------- -------- Cash and cash equivalents at end of the year............... $ -- $(17,146) $17,146 $ -- ======== ======== ======= ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 175 DOMINION ENERGY CANADA LIMITED CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan East Domcan Limited Entries and Alberta Boundary Consolidated Adjustments Ltd. Corp. ------------- ------------- ----------- -------- Current assets: Cash and cash equivalents..... $ 7,606 $-- $ 5,759 $ 1,847 Accounts receivable: Customers (less allowance)... Other........................ 40,896 30,632 10,264 Inventories: Materials and supplies....... Fossil fuel.................. Gas stored--current portion.. Investment securities-- trading...................... Mortgage loans held for sale.. Commodity contract assets..... Unrecovered gas costs......... Broker margin deposits........ Prepayments................... Net assets held for sale...... Other......................... 5,346 2,869 2,477 -------- ---- -------- -------- Total current assets......... 53,848 39,260 14,588 -------- ---- -------- -------- Investments: Loans receivable, net......... Investments in affiliates..... 14,208 14,208 Available for sale securities................... Nuclear decommissioning trust funds........................ Investment in real estate..... Other......................... 24 24 -------- ---- -------- -------- Total net investments........ 14,232 14,232 -------- ---- -------- -------- Property, plant and equipment: Property, plant and equipment.................... 578,476 240,904 337,572 Less accumulated depreciation, depletion and amortization... 89,834 45,640 44,194 -------- ---- -------- -------- Property, plant and equipment, net.............. 488,642 195,264 293,378 -------- ---- -------- -------- Deferred charges and other assets: Goodwill, net................. Regulatory assets, net........ Prepaid pension costs......... Other, net.................... 5,783 3,343 2,440 -------- ---- -------- -------- Total deferred charges and other assets................ 5,783 3,343 2,440 -------- ---- -------- -------- Total Assets.................. $562,505 $-- $252,099 $310,406 ======== ==== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 176 DOMINION ENERGY CANADA LIMITED CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan East Domcan Limited Entries and Alberta Boundary Consolidated Adjustments Ltd. Corp. ------------- ------------- ----------- -------- Current liabilities: Securities due within one year........................ Short-term debt.............. $ 2,502 $ -- $ -- $ 2,502 Accounts payable, trade...... 7,478 1,467 6,011 Accrued interest............. Accrued payroll.............. Accrued taxes................ 2,332 1,704 628 Commodity contract liabilities................. Other........................ 37,566 11,129 26,437 -------- ----- -------- -------- Total current liabilities... 49,878 14,300 35,578 -------- ----- -------- -------- Long term debt............... 382,323 163,143 219,180 -------- ----- -------- -------- Deferred credits and other liabilities: Deferred income taxes........ 13,412 48,980 (35,568) Deferred investment tax credits..................... Other........................ 9,579 4,687 4,892 -------- ----- -------- -------- Total deferred credits and other liabilities.......... 22,991 53,667 (30,676) -------- ----- -------- -------- Total Liabilities............ 455,192 231,110 224,082 -------- ----- -------- -------- Minority interest............ Obligated mandatorily redeemable preferred securities of subsidiary trusts...................... Preferred stock no subject to mandatory redemption........ Common shareholders' equity: Common Stock................. Other paid in capital........ 92,207 14,521 77,686 Accumulated other comprehensive income........ (9,971) (1,228) (8,743) Retained earnings............ 25,077 7,696 17,381 -------- ----- -------- -------- Total common shareholders' equity..................... 107,313 20,989 86,324 -------- ----- -------- -------- Total Liabilities and shareholders' equity........ $562,505 $ -- $252,099 $310,406 ======== ===== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 177 DOMINION ENERGY CANADA LIMITED CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan East Domcan Limited Entries and Alberta Boundary Consolidated Adjustments Ltd. Corp. ------------ ------------- ----------- -------- Operating Revenue: Regulated sales............... Electric..................... Gas.......................... Nonregulated sales............ Electric..................... Gas.......................... Gas transportation and storage...................... Oil and gas production........ $146,304 $-- $56,471 $89,833 Other......................... 32,496 13,174 19,322 -------- ---- ------- ------- Total........................ 178,800 69,645 109,155 -------- ---- ------- ------- Expenses: Fuel, net..................... Purchased power capacity, net.......................... Purchased gas, net............ Liquids, capacity and other products purchased........... Restructuring and other acquisition related costs.... Other operation and maintenance.................. 47,961 15,699 32,262 Depreciation, depletion and amortization................. 50,294 19,893 30,401 Other taxes................... 4,205 2,318 1,887 -------- ---- ------- ------- Total........................ 102,460 37,910 64,550 -------- ---- ------- ------- Income from Operations....... 76,340 31,735 44,605 Other Income.................. (5,744) (798) (4,946) -------- ---- ------- ------- Income before interest and income taxes................ 70,596 30,937 39,659 -------- ---- ------- ------- Interest and related charges: Interest charges.............. 27,042 10,124 16,918 Preferred dividends and distributions of subsidiary trusts....................... -------- ---- ------- ------- Total........................ 27,042 10,124 16,918 -------- ---- ------- ------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle................... 43,554 20,813 22,741 Income taxes.................. 21,519 9,497 12,022 Minority interests............ -------- ---- ------- ------- Income before extraordinary item and cumulative effect of a change in accounting principle................... 22,035 11,316 10,719 Extraordinary item, net....... Cumulative effect of a change in accounting principle, net.......................... -------- ---- ------- ------- Net Income................... $ 22,035 $-- $11,316 $10,719 ======== ==== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 178 DOMINION ENERGY CANADA LIMITED CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan East Domcan Limited Entries and Alberta Boundary Consolidated Adjustments Ltd. Corp. ------------ ------------- ----------- -------- Balance at December 31, 1999... $ 92,991 $-- $13,142 $79,849 -------- ---- ------- ------- Issuance of stock--CNG acquisition................. Issuance of stock through public offering............. Issuance of stock through employee, executive loan and direct stock purchase plans....................... Stock repurchase and retirement.................. Premium income equity securities.................. Other common stock activity.. Comprehensive income......... 15,295 11,794 3,501 Dividends and other adjustments................. (973) (3,947) 2,974 -------- ---- ------- ------- Balance at December 31, 2000... $107,313 $-- $20,989 $86,324 ======== ==== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 179 DOMINION ENERGY CANADA LIMITED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan Limited Entries and Domcan East Boundary Consolidated Adjustments Alberta Ltd. Corp. ------------ ------------- ------------ -------- Net Income.................... $22,035 $ -- $11,316 $10,719 ------- ----- ------- ------- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities.................. Less: reclassification adjustment for gains (losses) realized in net income...................... ------- ----- ------- ------- Unrealized gains (losses) on investment securities....... Foreign currency translation adjustment.................. (6,740) 478 (7,218) ------- ----- ------- ------- Minimum pension liability adjustment.................. Other comprehensive income (Loss)....................... (6,740) 478 (7,218) ------- ----- ------- ------- Comprehensive Income.......... $15,295 $ -- $11,794 $ 3,501 ======= ===== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 180 DOMINION ENERGY CANADA LIMITED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Dominion Energy Canada Consolidating Domcan East Domcan Limited Entries and Alberta Boundary Consolidated Adjustments Ltd. Corp. ------------ ------------- ----------- -------- Cash flows from (used in) operating activities: Net income.................... $ 22,035 $-- $ 11,316 $ 10,719 Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle..... Restructuring and other acquisition related costs... DCI impairment losses........ Extraordinary item, net...... Impairment of regulatory assets...................... Gains on sales of subsidiaries................ Depreciation and amortization................ 50,296 19,898 30,398 Deferred income taxes........ 21,471 9,408 12,063 Deferred fuel expense........ Changes in current assets and liabilities: Accounts receivable.......... (26,477) (7,334) (19,143) Inventories.................. 77 (245) 322 Unrecovered gas costs........ Purchase and origination of mortgages................... Proceeds from sale and principal collections of mortgages................... Accounts payable, trade...... 751 219 532 Accrued interest and taxes... 1,618 185 1,433 Commodity contract assets and liabilities................. Net assets held for sale..... Other........................ 10,798 (5,846) 16,644 -------- ---- -------- -------- Net cash flows from operating activities.................. 80,569 27,601 52,968 -------- ---- -------- -------- Cash flow from (used in) investing activities: Plant construction and other property additions........... Acquisition of exploration and production assets............ (78,639) (18,151) (60,488) Loan originations............. Repayments of loan originations................. Sale of businesses............ Sale of marketable securities................... Purchase of debt securities... Acquisition of businesses..... Other investments............. 6,935 6,935 Other......................... (2,330) (2,134) (196) -------- ---- -------- -------- Net cash flow used in investing activities........ (74,034) (13,350) (60,684) -------- ---- -------- -------- Cash flow from (used in) financing activities: Issuance of common stock...... Repurchase of common stock.... Issuance (repayment) of short term debt.................... (1,831) (11,054) 9,223 Issuance of long term debt.... Repayment of long term debt... (3,730) (278) (3,452) Common dividend payments...... Other......................... 234 234 -------- ---- -------- -------- Net cash flow from (used in) financing activities......... (5,327) (11,098) 5,771 -------- ---- -------- -------- Increase (decrease) in cash and cash equivalents......... 1,208 3,153 (1,945) Cash and cash equivalents at beginning of the year........ 6,398 2,606 3,792 -------- ---- -------- -------- Cash and cash equivalents at end of the year.............. $ 7,606 $-- $ 5,759 $ 1,847 ======== ==== ======== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 181 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Consolidating Virginia Virginia Power Virginia Power Entries and Virginia Power Fuel Services, Inc. VP Capital Consolidated Adjustments Power Corporation (Page 188) VPSC Trust I -------------- ------------- ----------- ----------- -------------- ---- ---------- Current assets: Cash and cash equivalents............ $ 140,749 $ -- $ 137,957 $ 1 $ 2,791 $-- $ -- Accounts receivable: Customers (less allowance)............ 1,133,802 910,315 223,487 Other.................. 117,416 (454,182) 359,113 73,280 139,205 Inventories: Materials and supplies.............. 128,688 128,688 Fossil fuel............ 101,972 36,547 65,425 Gas stored--current portion................ Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. 1,046,569 403,206 643,363 Unrecovered gas costs... Broker margin deposits.. 2,991 42,398 (39,407) Prepayments............. 18,665 17,860 805 Net assets held for sale................... Other................... 141,989 138,025 3,964 ----------- --------- ----------- ------- ---------- ---- -------- Total current assets... 2,832,841 (454,182) 2,174,109 1 973,708 139,205 ----------- --------- ----------- ------- ---------- ---- -------- Investments: Loans receivable, net... Investments in affiliates............. (28,067) 28,067 Available for sale securities............. Nuclear decommissioning trust funds............ 851,453 851,453 Investment in real estate................. Other................... 62,216 38,984 23,232 ----------- --------- ----------- ------- ---------- ---- -------- Total net investments.. 913,669 (28,067) 918,504 23,232 ----------- --------- ----------- ------- ---------- ---- -------- Property, plant and equipment: Property, plant and equipment.............. 16,949,522 16,910,087 34,537 4,898 Less accumulated depreciation, depletion and amortization....... 7,784,352 7,784,189 163 ----------- --------- ----------- ------- ---------- ---- -------- Property, plant and equipment, net........ 9,165,170 9,125,898 34,537 4,735 ----------- --------- ----------- ------- ---------- ---- -------- Deferred charges and other assets: Goodwill, net........... Regulatory assets, net.. 235,172 235,172 Prepaid pension costs... 14,733 14,733 Other, net.............. 169,274 104,573 64,701 ----------- --------- ----------- ------- ---------- ---- -------- Total deferred charges and other assets...... 419,179 354,478 64,701 ----------- --------- ----------- ------- ---------- ---- -------- Total Assets............ $13,330,859 $(482,249) $12,572,989 $34,538 $1,066,376 $-- $139,205 =========== ========= =========== ======= ========== ==== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 182 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Virginia Consolidating Virginia Virginia Power VP Power Entries and Virginia Power Fuel Services, Inc. Capital Consolidated Adjustments Power Corporation (Page 189) VPSC Trust I ------------ ------------- ----------- ----------- -------------- ---- -------- Current liabilities: Securities due within one year..... $ 240,650 $ -- $ 240,650 $ -- $ -- $-- $ -- Short-term debt.................... 713,810 713,810 Accounts payable, trade............ 1,004,175 (454,182) 1,040,610 34,537 383,210 Accrued interest................... 93,851 93,851 Accrued payroll.................... 88,308 87,237 1,071 Accrued taxes...................... 60,219 56,069 4,150 Commodity contract liabilities..... 993,352 394,868 598,484 Other.............................. 155,169 155,741 (602) 30 ----------- --------- ----------- ------- ---------- ---- -------- Total current liabilities.......... 3,349,534 (454,182) 2,782,836 34,537 986,313 30 ----------- --------- ----------- ------- ---------- ---- -------- Long term debt..................... 3,561,674 3,561,674 ----------- --------- ----------- ------- ---------- ---- -------- Deferred credits and other liabilities: Deferred income taxes.............. 1,494,188 1,492,496 1,692 Deferred investment tax credits.... 129,580 129,580 Other.............................. 302,849 248,369 54,480 ----------- --------- ----------- ------- ---------- ---- -------- Total deferred credits and other liabilities........................ 1,926,617 1,870,445 56,172 ----------- --------- ----------- ------- ---------- ---- -------- Total Liabilities.................. 8,837,825 (454,182) 8,214,955 34,537 1,042,485 30 ----------- --------- ----------- ------- ---------- ---- -------- Minority interest.................. Obligated mandatorily redeemable preferred securities of subsidiary trusts............................ 135,000 135,000 Preferred stock no subject to mandatory redemption.............. 509,014 509,014 Common shareholders' equity: Common Stock....................... 2,737,407 (37,618) 2,737,407 1 33,442 4,175 Other paid in capital.............. 16,274 16,274 Accumulated other comprehensive income............................. Retained earnings.................. 1,095,339 9,551 1,095,339 (9,551) ----------- --------- ----------- ------- ---------- ---- -------- Total common shareholders' equity............................ 3,849,020 (28,067) 3,849,020 1 23,891 4,175 ----------- --------- ----------- ------- ---------- ---- -------- Total Liabilities and shareholders' equity............................ $13,330,859 $(482,249) $12,572,989 $34,538 $1,066,376 $-- $139,205 =========== ========= =========== ======= ========== ==== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 183 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Virginia Power Virginia Consolidating Virginia Services, VP Power Entries and Virginia Power Fuel Inc. Capital Consolidated Adjustments Power Corporation (Page 190) VPSC Trust I ------------ ------------- ---------- ----------- ---------- ------ -------- Operating Revenue: Regulated sales Electric............... $4,492,022 $ -- $4,492,017 $-- $ 5 $ -- $ -- Gas.................... Nonregulated sales Electric............... Gas.................... Gas transportation and storage................ Oil and gas production.. Other................... 298,671 291,095 4,029 3,547 ---------- ------ ---------- ---- ------- ------ -------- Total.................. 4,790,693 4,783,112 4,034 3,547 ---------- ------ ---------- ---- ------- ------ -------- Expenses: Fuel, net............... 1,103,577 1,103,582 (5) Purchased power capacity, net.......... 740,108 740,108 Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. 71,226 71,226 Other operation and maintenance............ 956,720 953,040 12,574 1,974 (10,868) Depreciation, depletion and amortization....... 557,513 556,992 162 359 Other taxes............. 275,194 274,917 222 55 ---------- ------ ---------- ---- ------- ------ -------- Total.................. 3,704,338 3,699,865 12,953 2,388 (10,868) ---------- ------ ---------- ---- ------- ------ -------- Income from Operations............ 1,086,355 1,083,247 (8,919) 1,159 10,868 Other Income............ 47,044 5,634 41,482 725 (797) ---------- ------ ---------- ---- ------- ------ -------- Income before interest and income taxes...... 1,133,399 5,634 1,124,729 (8,194) 362 10,868 ---------- ------ ---------- ---- ------- ------ -------- Interest and related charges: Interest charges........ 285,118 285,118 Preferred dividends and distributions of subsidiary trusts...... 46,816 35,948 10,868 ---------- ------ ---------- ---- ------- ------ -------- Total.................. 331,934 321,066 10,868 ---------- ------ ---------- ---- ------- ------ -------- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. 801,465 5,634 803,663 (8,194) 362 Income taxes............ 279,683 281,881 (2,324) 126 ---------- ------ ---------- ---- ------- ------ -------- Minority interests...... Income before extraordinary item and cumulative effect of a change in accounting principle............. 521,782 5,634 521,782 (5,870) 236 Extraordinary item, net Cumulative effect of a change in accounting principle, net......... (20,757) (20,757) ---------- ------ ---------- ---- ------- ------ -------- Net Income............. $ 542,539 $5,634 $ 542,539 $-- $(5,870) $ 236 $ -- ========== ====== ========== ==== ======= ====== ========
The Notes to the Consolidated Financial Statements are an integral part of this statement. 184 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Consolidating Virginia Virginia Power Virginia Power Entries and Virginia Power Fuel Services, Inc. VP Capital Consolidated Adjustments Power Corporation (Page 191) VPSC Trust I -------------- ------------- ---------- ----------- -------------- ------- ---------- Balance at December 31, 1999................... $3,742,352 $(54,393) $3,771,414 $ 1 $ 8,819 $12,336 $4,175 ---------- -------- ---------- --- ------- ------- ------ Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans........ Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. (18,626) 22,442 (3,816) Comprehensive income... 542,539 5,634 542,539 (5,870) 236 Dividends and other adjustments........... (435,871) 39,318 (464,933) (1,500) (8,756) ---------- -------- ---------- --- ------- ------- ------ Balance at December 31, 2000................... $3,849,020 $(28,067) $3,849,020 $ 1 $23,891 $ -- $4,175 ========== ======== ========== === ======= ======= ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 185 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Consolidating Virginia Virginia Power Virginia Power Entries and Virginia Power Fuel Services, Inc. VP Capital Consolidated Adjustments Power Corporation (Page 192) VPSC Trust I -------------- ------------- -------- ----------- -------------- ---- ---------- Net Income.............. $542,539 $5,634 $542,539 $-- $(5,870) $236 $-- -------- ------ -------- ---- ------- ---- ---- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ -------- ------ -------- ---- ------- ---- ---- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. -------- ------ -------- ---- ------- ---- ---- Other comprehensive income (Loss).......... -------- ------ -------- ---- ------- ---- ---- Comprehensive Income.... $542,539 $5,634 $542,539 $-- $(5,870) $236 $-- ======== ====== ======== ==== ======= ==== ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 186 VIRGINIA ELECTRIC AND POWER COMPANY CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Consolidating Virginia Virginia Power Virginia Power Entries and Virginia Power Fuel Services, Inc. VP Capital Consolidated Adjustments Power Corporation (Page 193) VPSC Trust I -------------- ------------- ---------- ----------- -------------- ------- ---------- Cash flows from (used in) operating activities: Net income.............. $ 542,539 $ 5,634 $ 542,539 $ -- $ (5,870) $ 236 $-- Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............. (20,757) (20,757) Restructuring and other acquisition related costs................. 57,679 57,679 DCI impairment losses.. Extraordinary item, net................... Impairment of regulatory assets..... Gains on sales of subsidiaries.......... Depreciation and amortization.......... 637,087 636,566 162 359 Deferred income taxes.. 27,198 (11,142) 40,869 (2,257) (272) Deferred fuel expense.. (32,578) (40,975) 8,397 Changes in current assets and liabilities: Accounts receivable.... (524,061) (3,800) (314,048) (209,727) 3,514 Inventories............ 3,502 (553) 3,608 (124) 571 Unrecovered gas costs.. Purchase and origination of mortgages............. Proceeds from sale and principal collections of mortgages.......... Accounts payable, trade................. 488,472 18,448 246,016 (119) 228,782 (4,655) Accrued interest and taxes................. 4,913 45 1,654 3,223 (9) Commodity contract assets and liabilities........... (32,447) 18,944 (51,391) Net assets held for sale.................. Other.................. (81,802) (24,040) (86,557) (6,315) 35,713 (603) ---------- -------- ---------- ------- -------- ------- ---- Net cash flows from operating activities.. 1,069,745 21,514 1,048,616 (6,434) 6,908 (859) ---------- -------- ---------- ------- -------- ------- ---- Cash flow from (used in) investing activities: Plant construction and other property additions.............. (734,485) (33,765) (702,256) 6,434 (4,898) Acquisition of exploration and production assets...... Loan originations....... Repayments of loan originations........... Sale of businesses...... Sale of marketable securities............. Purchase of debt securities............. Acquisition of businesses............. Other investments....... (47,608) 34,097 (81,705) Other................... 269 (200) 23,473 (23,204) 200 ---------- -------- ---------- ------- -------- ------- ---- Net cash flow used in investing activities.. (781,824) 132 (760,488) 6,434 (28,102) 200 ---------- -------- ---------- ------- -------- ------- ---- Cash flow from (used in) financing activities: Issuance of common stock.................. Repurchase of common stock.................. Issuance (repayment) of short term debt........ 335,831 335,831 Issuance of long term debt................... 250,000 250,000 Repayment of long term debt................... (375,500) (375,500) Common dividend payments............... (407,911) 1,500 (407,911) (1,500) Other................... (11,337) (23,146) (10,634) 22,443 ---------- -------- ---------- ------- -------- ------- ---- Net cash flow from (used in) financing activities............. (208,917) (21,646) (208,214) 20,943 ---------- -------- ---------- ------- -------- ------- ---- Increase (decrease) in cash and cash equivalents............ 79,004 79,914 (251) (659) Cash and cash equivalents at beginning of the year.. 61,745 58,043 1 3,042 659 ---------- -------- ---------- ------- -------- ------- ---- Cash and cash equivalents at end of the year............... $ 140,749 $ -- $ 137,957 $ 1 $ 2,791 $ -- $-- ========== ======== ========== ======= ======== ======= ====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 187 VIRGINIA POWER SERVICES, INC. CONSOLIDATING BALANCE SHEET As of December 31, 2000 (Thousands)
Virginia Virginia Power Virginia Virginia Power Services Power Virginia Power Consolidating Power Energy Energy Nuclear VP Services, Inc. Entries and Services, Evantage, Marketing, Corp, Services Property, Consolidated Adjustments Inc. Inc. Inc. Inc. Company Inc. -------------- ------------- --------- --------- ---------- -------- -------- --------- Current assets: Cash and cash equivalents............ $ 2,791 $ -- $ 83 $ 2,459 $ 1 $ 7 $ 241 $ -- Accounts receivable: Customers (less allowance)............ 223,487 2,281 206,736 14,042 428 Other.................. 73,280 (121,132) 88,354 7,228 47,748 50,871 211 Inventories: Materials and supplies.............. Fossil fuel............ 65,425 18,559 46,866 Gas stored--current portion............... Investment securities-- trading................ Mortgage loans held for sale................... Commodity contract assets................. 643,363 620,351 23,012 Unrecovered gas costs... Broker margin deposits.. (39,407) (38,780) (627) Prepayments............. 805 240 622 (57) Net assets held for sale................... Other................... 3,964 11 63 3,843 47 ---------- --------- -------- ------- -------- -------- ------ ------ Total current assets... 973,708 (121,132) 88,448 11,968 854,918 138,636 870 ---------- --------- -------- ------- -------- -------- ------ ------ Investments: Loans receivable, net... Investments in affiliates............. (23,749) 23,749 Available for sale securities............. Nuclear decommissioning trust funds............ Investment in real estate................. Other................... 23,232 23,140 92 ---------- --------- -------- ------- -------- -------- ------ ------ Total net investments.. 23,232 (23,749) 23,749 23,140 92 ---------- --------- -------- ------- -------- -------- ------ ------ Property, plant and equipment: Property, plant and equipment.............. 4,898 4,898 Less accumulated depreciation, depletion and amortization....... 163 163 ---------- --------- -------- ------- -------- -------- ------ ------ Property, plant and equipment, net........ 4,735 4,735 ---------- --------- -------- ------- -------- -------- ------ ------ Deferred charges and other assets: Goodwill, net........... Regulatory assets, net.. Prepaid pension costs... Other, net.............. 64,701 13,714 46,256 4,639 91 1 ---------- --------- -------- ------- -------- -------- ------ ------ Total deferred charges and other assets...... 64,701 13,714 46,256 4,639 91 1 ---------- --------- -------- ------- -------- -------- ------ ------ Total Assets............ $1,066,376 $(144,881) $112,197 $48,822 $901,174 $143,275 $1,053 $4,736 ========== ========= ======== ======= ======== ======== ====== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 188 VIRGINIA POWER SERVICES, INC. CONSOLIDATING BALANCE SHEET--(Continued) As of December 31, 2000 (Thousands)
Virginia Virginia Power Virginia Virginia Power Services Power Virginia Power Consolidating Power Energy Energy Nuclear VP Services, Inc. Entries and Services, Evantage, Marketing, Corp, Services Property, Consolidated Adjustments Inc. Inc. Inc. Inc. Company Inc. -------------- ------------- --------- --------- ---------- -------- -------- --------- Current liabilities: Securities due within one year.............. Short-term debt........ Accounts payable, trade................. $ 383,210 $(120,405) $ 88,349 $20,539 $272,491 $119,559 $2,669 $ 8 Accrued interest....... Accrued payroll........ 1,071 939 132 Accrued taxes.......... 4,150 (43) (93) 3,423 714 218 (69) Commodity contract liabilities........... 598,484 575,307 23,177 Other.................. (602) (727) 36 34 55 ---------- --------- -------- ------- -------- -------- ------ ------ Total current liabilities........... 986,313 (121,132) 88,306 20,482 852,194 143,450 3,074 (61) ---------- --------- -------- ------- -------- -------- ------ ------ Long term debt......... ---------- --------- -------- ------- -------- -------- ------ ------ Deferred credits and other liabilities: Deferred income taxes.. 1,692 1,449 231 2 10 Deferred investment tax credits............... Other.................. 54,480 11,060 38,010 5,295 115 ---------- --------- -------- ------- -------- -------- ------ ------ Total deferred credits and other liabilities........... 56,172 11,060 39,459 5,526 117 10 ---------- --------- -------- ------- -------- -------- ------ ------ Total Liabilities...... 1,042,485 (121,132) 88,306 31,542 891,653 148,976 3,191 (51) ---------- --------- -------- ------- -------- -------- ------ ------ Minority interest...... Obligated mandatorily redeemable preferred securities of subsidiary trusts..... Preferred stock not subject to mandatory redemption............ Common shareholders' equity: Common Stock........... 33,442 (33,194) 33,442 17,545 10,000 1 750 4,898 Other paid in capital.. Accumulated other comprehensive income.. Retained earnings...... (9,551) 9,445 (9,551) (265) (479) (5,702) (2,888) (111) ---------- --------- -------- ------- -------- -------- ------ ------ Total common shareholders' equity................ 23,891 (23,749) 23,891 17,280 9,521 (5,701) (2,138) 4,787 ---------- --------- -------- ------- -------- -------- ------ ------ Total Liabilities and shareholders' equity.. $1,066,376 $(144,881) $112,197 $48,822 $901,174 $143,275 $1,053 $4,736 ========== ========= ======== ======= ======== ======== ====== ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 189 VIRGINIA POWER SERVICES, INC. CONSOLIDATING INCOME STATEMENT For the Year Ended December 31, 2000 (Thousands)
Virginia Virginia Virginia Virginia Power Virginia Power Power Power Services, Consolidating Power Energy Services Nuclear VP Inc. Entries and Services, Evantage, Marketing, Energy Services Property, Consolidated Adjustments Inc. Inc. Inc. Corp, Inc. Company Inc. ------------ ------------- --------- --------- ---------- ---------- -------- --------- Operating Revenue: Regulated sales Electric............... $ 5 $ -- $ -- $ 5 $ -- $ -- $ -- $ -- Gas.................... Nonregulated sales Electric............... Gas.................... Gas transportation and storage................ Oil and gas production.. Other................... 4,029 774 12,272 (9,522) 505 ------- ------ ------- ------ ------- ------- ------- ----- Total.................. 4,034 779 12,272 (9,522) 505 ------- ------ ------- ------ ------- ------- ------- ----- Expenses: Fuel, net............... (5) (59) 54 Purchased power capacity, net.......... Purchased gas, net...... Liquids, capacity and other products purchased.............. Restructuring and other acquisition related costs.................. Other operation and maintenance............ 12,574 95 1,830 8,340 (111) 2,412 8 Depreciation, depletion and amortization....... 162 162 Other taxes............. 222 4 171 47 ------- ------ ------- ------ ------- ------- ------- ----- Total.................. 12,953 95 1,775 8,511 (57) 2,459 170 ------- ------ ------- ------ ------- ------- ------- ----- Income from Operations............ (8,919) (95) (996) 3,761 (9,465) (1,954) (170) Other Income............ 725 5,809 (5,808) 587 94 16 27 ------- ------ ------- ------ ------- ------- ------- ----- Income before interest and income taxes...... (8,194) 5,809 (5,903) (409) 3,855 (9,449) (1,927) (170) ------- ------ ------- ------ ------- ------- ------- ----- Interest and related charges: Interest charges........ Preferred dividends and distributions of subsidiary trusts...... ------- ------ ------- ------ ------- ------- ------- ----- Total.................. ------- ------ ------- ------ ------- ------- ------- ----- Income before provision for income tax, minority interest, extraordinary item and cumulative effect of a change in accounting principle............. (8,194) 5,809 (5,903) (409) 3,855 (9,449) (1,927) (170) Income taxes............ (2,324) (33) (144) 2,309 (3,732) (665) (59) ------- ------ ------- ------ ------- ------- ------- ----- Minority interests...... Income before extraordinary item and cumulative effect of a change in accounting principle............. (5,870) 5,809 (5,870) (265) 1,546 (5,717) (1,262) (111) Extraordinary item, net.................... Cumulative effect of a change in accounting principle, net......... ------- ------ ------- ------ ------- ------- ------- ----- Net Income............. $(5,870) $5,809 $(5,870) $ (265) $ 1,546 $(5,717) $(1,262) $(111) ======= ====== ======= ====== ======= ======= ======= =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 190 VIRGINIA POWER SERVICES, INC. CONSOLIDATING STATEMENT OF COMMON SHAREHOLDERS' EQUITY As of December 31, 2000 (Thousands)
Virginia Virginia Virginia Power Power Power Virginia Power Consolidating Energy Services Nuclear VP Services, Inc. Entries and Virginia Power Evantage, Marketing, Energy Services Property, Consolidated Adjustments Services, Inc. Inc. Inc. Corp, Inc. Company Inc. -------------- ------------- -------------- --------- ---------- ---------- -------- --------- Balance at December 31, 1999................... $ 8,819 $ -- $ 204 $ -- $ 9,475 $ 16 $ (876) $ -- ------- -------- ------- ------- ------- ------- ------- ------ Issuance of stock--CNG acquisition........... Issuance of stock through public offering.............. Issuance of stock through employee, executive loan and direct stock purchase plans................. Stock repurchase and retirement............ Premium income equity securities............ Other common stock activity.............. 22,442 (33,194) 33,193 17,545 4,898 Comprehensive income... (5,870) 5,809 (5,870) (265) 1,546 (5,717) (1,262) (111) Dividends and other adjustments........... (1,500) 3,636 (3,636) (1,500) ------- -------- ------- ------- ------- ------- ------- ------ Balance at December 31, 2000................... $23,891 $(23,749) $23,891 $17,280 $ 9,521 $(5,701) $(2,138) $4,787 ======= ======== ======= ======= ======= ======= ======= ======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 191 VIRGINIA POWER SERVICES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME For the Year Ended December 31, 2000 (Thousands)
Virginia Virginia Power Virginia Virginia Power Services Power Virginia Power Consolidating Power Energy Energy Nuclear VP Services, Inc. Entries and Services, Evantage, Marketing, Corp, Services Property, Consolidated Adjustments Inc. Inc. Inc. Inc. Company Inc. -------------- ------------- --------- --------- ---------- -------- -------- --------- Net Income.............. $(5,870) $5,809 $(5,870) $(265) $1,546 $(5,717) $(1,262) $(111) ------- ------ ------- ----- ------ ------- ------- ----- Other comprehensive income, net of tax: Unrealized holding gains (losses) on investment securities............ Less: reclassification adjustment for gains (losses) realized in net income............ ------- ------ ------- ----- ------ ------- ------- ----- Unrealized gains (losses) on investment securities............ Foreign currency translation adjustment............ Minimum pension liability adjustment.. ------- ------ ------- ----- ------ ------- ------- ----- Other comprehensive income (Loss).......... ------- ------ ------- ----- ------ ------- ------- ----- Comprehensive Income.... $(5,870) $5,809 $(5,870) $(265) $1,546 $(5,717) $(1,262) $(111) ======= ====== ======= ===== ====== ======= ======= =====
The Notes to the Consolidated Financial Statements are an integral part of this statement. 192 VIRGINIA POWER SERVICES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 (Thousands)
Virginia Virginia Virginia Power Power Power Virginia Power Consolidating Energy Services Nuclear VP Services, Inc. Entries and Virginia Power Evantage, Marketing, Energy Services Property, Consolidated Adjustments Services, Inc. Inc. Inc. Corp, Inc. Company Inc. -------------- ------------- -------------- --------- ---------- ---------- -------- --------- Cash flows from (used in) operating activities: Net income............. $ (5,870) $ 5,809 $ (5,870) $ (265) $ 1,546 $ (5,717) $(1,262) $ (111) Adjustments to reconcile net income to net cash from operating activities: Cumulative effect of a change in accounting principle............ Restructuring and other acquisition related costs........ DCI impairment losses............... Extraordinary item, net.................. Impairment of regulatory assets.... Gains on sales of subsidiaries......... Depreciation and amortization......... 162 162 Deferred income taxes................ (2,257) 1,420 (3,612) (75) 10 Deferred fuel expense.............. 8,397 8,397 Changes in current assets and liabilities: Accounts receivable... (209,727) 158 7,830 (180,395) (38,103) 783 Inventories........... (124) (1,700) 1,576 Unrecovered gas costs................ Purchase and origination of mortgages............ Proceeds from sale and principal collections of mortgages......... Accounts payable, trade................ 228,782 9 3,200 193,427 32,114 24 8 Accrued interest and taxes................ 3,223 (39) (93) 1,514 1,410 499 (68) Commodity contract assets and liabilities.......... (51,391) (51,391) Net assets held for sale................. Other................. 35,713 5 (2,618) 37,080 1,142 105 (1) --------- -------- -------- -------- --------- -------- ------- ------- Net cash flows from operating activities........... 6,908 5,809 (5,737) 8,054 1,501 (2,793) 74 --------- -------- -------- -------- --------- -------- ------- ------- Cash flow from (used in) investing activities: Plant construction and other property additions............ (4,898) (4,898) Acquisition of exploration and production assets.... Loan originations..... Repayments of loan originations......... Sale of businesses.... Sale of marketable securities........... Purchase of debt securities........... Acquisition of businesses........... Other investments..... 15,134 (15,134) Other................. (23,204) (23,140) (64) --------- -------- -------- -------- --------- -------- ------- ------- Net cash flow used in investing activities........... (28,102) 15,134 (15,134) (23,140) (64) (4,898) --------- -------- -------- -------- --------- -------- ------- ------- Cash flow from (used in) financing activities: Issuance of common stock................ Repurchase of common stock................ Issuance (repayment) of short term debt... Issuance of long term debt................. Repayment of long term debt................. Common dividend payments............. (1,500) 1,500 (1,500) (1,500) Other................. 22,443 (22,443) 22,443 17,545 4,898 --------- -------- -------- -------- --------- -------- ------- ------- Net cash flow from (used in) financing activities............ 20,943 (20,943) 20,943 17,545 (1,500) 4,898 --------- -------- -------- -------- --------- -------- ------- ------- Increase (decrease) in cash and cash equivalents........... (251) 72 2,459 1 (2,793) 10 Cash and cash equivalents at beginning of the year.................. 3,042 11 2,800 231 --------- -------- -------- -------- --------- -------- ------- ------- Cash and cash equivalents at end of the year.............. $ 2,791 $ -- $ 83 $ 2,459 $ 1 $ 7 $ 241 $ -- ========= ======== ======== ======== ========= ======== ======= =======
The Notes to the Consolidated Financial Statements are an integral part of this statement. 193 Exhibits
SEC Exhibit Reference Description of Exhibit --------- ---------------------- A. 1. Dominion Resources, Inc. Annual Report on Form 10-K is hereby incorporated by reference (File No. 1-8489). 2. Virginia Electric and Power Company Annual Report on Form 10-K is hereby incorporated by reference (1-2255) 3. Consolidated Natural Gas Company Annual Report on Form 10-K is hereby incorporated by reference (1-3196). B. 1. A copy of the charter, as amended, and copy of the by-laws, as amended, of Dominion Resources, Inc. and each subsidiary company thereof, unless otherwise indicated on the list filed herewith, are incorporated by reference to previous filings with the Commission, as shown on such list. C. 1. The indentures of Dominion Resources, Inc. are hereby incorporated by reference to previously filed material as indicated on the list (filed herewith). 2. Purchase and Sale Agreement, dated August 7, 2000, by and among Northeast Nuclear Energy Company, et al and Dominion Resources, Inc. (Exhibit 10(iii), Form 10-Q for the quarter ended June 30, 2000, File No. 1-8489, incorporated by reference). This transaction involving the purchase of Millstone Nuclear Power Station was completed effective March 31, 2001. D. Tax Allocation Agreement (filed herewith) E. Pursuant to Rule 16(c) under the Public Utility Holding Company Act of 1935, the annual report of the Iroquois Gas Transmission System, L.P., for the year ended December 31, 2000, is filed herewith as Exhibit E. F. Schedules supporting items of this report: 1. ITEM 1--Schedule of Investments (filed herewith) 2. ITEM 2--Schedule of Acquisitions, Redemptions, or Retirements of Systems Securities (filed herewith) 3. ITEM 5--Investment in Securities of Nonsystem Companies (filed herewith on Form SE) 4. ITEM 6--Dominion Resources, Inc. 2001 Proxy Statement, dated March 16, 2001 is hereby incorporated by reference. 5. ITEM 10--Schedule of utility plant and related depreciation accounts, together with schedules of other property or investments (filed herewith on Form SE) 6. Consent of Deloitte and Touche LLP (filed herewith) G. Financial Data Schedules are no longer applicable. H. 1. Organization charts showing the relationship of the exempt wholesale generators in which the system holds and interest to other system companies, is filed herewith as Attachment H-1 through H-3. 2. Organization chart showing the relationship of the foreign utility companies in which the system holds an interest to other system companies, are filed herewith as Attachment H-4. I. Financial statements of the exempt wholesale generators and foreign utility company are filed herewith as Attachments I-1 through I-4.
194 SIGNATURE The registrant has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935, such company being a registered holding company. DOMINION RESOURCES, INC. _________________________________ (Registrant) /s/ Steven A. Rogers By: _________________________________ Steven A. Rogers Vice President, Controller and Principal Accounting Officer May 1, 2001 195 EX-99.1 2 dex991.txt EXHIBIT B AS REFL. ON THE U5S EXIND. EXHIBIT B DOMINION RESOURCES, INC. CHARTER AND BY-LAWS
Commission Filing ------------------------------------------- Dominion Resources, Inc. Articles of Incorporation as in Exhibit B-1, Form U5B effect August 9, 1999 Articles of Amendment, Exhibit 3(ii), Form 10-K for the year ended establishing Series A Preferred December 31, 2000, File No. 1-8489 Stock, effective March 12, 2001 Bylaws as in effect on October Exhibit 3, Form 10-Q for the quarter ended 20, 2000 September 30, 2000, File No. 1-8489 CNG International Corporation Certificate of Incorporation, Exhibit B-12, Form U5B effective January 22, 1996 Bylaws, effective August 1, 1996 Exhibit B-12, Form U5B Consolidated Natural Gas Company Certificate of Incorporation, as Exhibit B-10, Form U5B amended, effective January 28, 2000 Bylaws, as amended, effective (filed herewith--Exhibit B-1) December 15, 2000 Consolidated Natural Gas Service Company, Inc. Certificate of Incorporation, as Exhibit B-11, Form U5B amended November 30, 1982 Bylaws, as last amended March 1, Exhibit B-11, Form U5B 1993 Dominion Capital, Inc. Articles of Incorporation, as Exhibit B-2, Form U5B amended and restated, effective July 28, 1986 Bylaws, as amended, effective Exhibit B-2, Form U5B October 15, 1999 Dominion Energy, Inc. Articles of Restatement, Exhibit B-3, Form U5B effective April 14, 1989 Bylaws, as amended, effective Exhibit B-3, Form U5B October 15, 1999 Dominion Exploration & Production, Inc. Certificate of Incorporation, as Exhibit B-4, Form U5B amended, effective April 12, 2000 Bylaws, as amended, effective Exhibit B-4, Form U5B April 12, 2000 Dominion Field Services, Inc. Certificate of Incorporation, as Exhibit B-6, Form U5B amended April 1, 2000 Bylaws, as amended April 1, 2000 Exhibit B-6, Form U5B Dominion Generation, Inc. Articles of Incorporation, dated Exhibit B-7, Form U5S May 1, 1999 Bylaws, as amended, effective Exhibit B-7, Form U5S October 15, 1999 Dominion Products and Services, Inc. Certificate of Incorporation, as (filed herewith--Exhibit B-2) amended, effective September 5, 2000 Bylaws, as amended, effective (filed herewith--Exhibit B-3) September 5, 2000 Dominion Resources Services, Inc. Articles of Incorporation, as (filed herewith--Exhibit B-4) amended December 19, 2000 Bylaws, as amended, effective (filed herewith--Exhibit B-5) December 31, 2000
1 DOMINION RESOURCES, INC. CHARTER AND BY-LAWS (Continued)
Commission Filing ----------------------------------------- Dominion Retail, Inc. Certificate of Incorporation, as (filed herewith--Exhibit B-6) amended September 5, 2000 Bylaws, as amended effective (filed herewith--Exhibit B-7) September 5, 2000 Dominion Transmission, Inc. Certificate of Incorporation, as Exhibit B-5, Form U5B amended, effective April 11, 2000 Bylaws, as amended, effective April Exhibit B-5, Form U5B 11, 2000 Dominion U.K. Holding, Inc. Articles of Incorporation effective Exhibit B-9, Form U5S December 18, 1996 Bylaws, as amended and restated, Exhibit B-9, Form U5S effective July 8, 1997 Hope Gas, Inc. Certificate of Incorporation, as Exhibit B-15, Form U5B amended, effective October 13, 1994 Bylaws, as amended, effective June Exhibit B-15, Form U5B 1, 1998 The East Ohio Gas Company Articles of Incorporation, as Exhibit B-14, Form U5B amended, effective June 17, 1993 Regulations, as amended, effective Exhibit B-14, Form U5B September 15, 1999 The Peoples Natural Gas Company Articles of Incorporation, as Exhibit B-16, Form U5S amended, effective September 2, 1993 Bylaws, as amended, effective March Exhibit B-16, Form U5S 15, 1990 Virginia Electric and Power Company Articles of Incorporation, as Exhibit B-17, Form U5B amended and restated, effective May 6, 1999 Bylaws, as amended, effective April Exhibit 3, Form 10-Q for the period ended 28, 2000 March 31, 2000, File No. 1-2255
2 Exhibit B-1 CONSOLIDATED NATURAL GAS COMPANY BYLAWS AS AMENDED AND IN EFFECT DECEMBER 15, 2000 CONSOLIDATED NATURAL GAS COMPANY ARTICLE I STOCKHOLDERS 1.1 Annual Meetings. An annual meeting of the stockholders shall be held for the election of directors on the third Tuesday in May of each year or on such other date and at such time and place, either within or without the State of Delaware, as may be designated by resolution of the Board of Directors from time to time. Any other proper business may be transacted at the annual meeting. 1.2 Special Meetings. Special meetings of stockholders for any purpose or purposes may be called at any time by the Chairman of the Board, if any, the President or the Board of Directors. Such special meetings shall be held at such date, time and place either within or without the State of Delaware as may be stated in the notice of the meeting. 1.3 Notice of Meetings. Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, date and hour of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise provided by law, the written notice of any meeting shall be given not less than ten nor more than sixty days before the date of the meeting to each stockholder entitled to vote at such meeting. If mailed, such notice shall be deemed to be given when deposited in the mail, postage prepaid, directed to the stockholder at his or her address as it appears on the records of the Company. 1.4 Adjournments. Any meeting of stockholders, annual or special, may adjourn from time to time to reconvene at the same or some other place, and notice need not be given of any such adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the Company may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. 1.5 Quorum. At each meeting of stockholders, except where otherwise provided by law or the Certificate of Incorporation or these Bylaws, the holders of a majority of the outstanding shares of stock entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum. For purposes of the foregoing, two or more classes or series of stock shall be considered a single class if the holders thereof are entitled to vote together as a single class at the meeting. In the absence of a quorum, the stockholders so present may, by majority vote, adjourn the meeting from time to time in the manner provided in Section 1.4 of these Bylaws until a quorum shall attend. Shares of its own stock belonging to the Company or to another company, if a majority of the shares entitled to vote in the election of directors of such other company is held, directly or indirectly, by the Company, shall neither be entitled to vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of any company to vote stock, including but not limited to its own stock, held by it in a fiduciary capacity. 1.6 Organization. Meetings of stockholders shall be presided over by the Chairman of the Board, if any, or in his or her absence by the President, or in his or her absence by a Vice President, or in the absence of the foregoing persons by a chairman designated by the Board of Directors, or in the absence of such designation, by a chairman chosen at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairman of the meeting may appoint any person to act as secretary of the meeting. 1.7 Voting; Proxies. Unless otherwise provided in the Certificate of Incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of stock held by him which has voting power upon the matter in question. 2 (a) Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for him by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. (b) Without limiting the manner in which a stockholder may authorize another person or persons to act for him as proxy pursuant to this subsection (b) of this Section, the following shall constitute a valid means by which a stockholder may grant such authority: (1) A stockholder may execute a writing authorizing another person or persons to act for him as proxy. Execution may be accomplished by the stockholder or his or her authorized officer, director, employee or agent signing such writing or causing his or her signature to be affixed to such writing by any reasonable means including, but not limited to, by facsimile signature. (2) A stockholder may authorize another person or persons to act for him as proxy by transmitting or authorizing the transmission of a telegram, cablegram or other means of electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such telegram, cablegram or other means of electronic transmission must either set forth or be submitted with information from which it can be determined that the telegram, cablegram, or other electronic transmission was authorized by the stockholder. If it is determined that such telegrams, cablegrams or other electronic transmissions are valid, the inspectors or, if there are no inspectors, such other persons making that determination shall specify the information upon which they relied. (c) Any copy, facsimile, telecommunication or other reliable reproduction of the writing or transmission created pursuant to this subsection (c) of this Section, may be submitted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, facsimile, telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission. (d) A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A proxy may be made irrevocable regardless of whether the interest with which it is coupled is an interest in the stock itself or an interest in the Company generally. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or another duly executed proxy bearing a later date with the Secretary of the Company. Voting at meetings of stockholders need not be by written ballot and need not be conducted by inspectors unless the holders of a majority of the outstanding shares of all classes of stock entitled to vote thereon present in person or by proxy at such meeting shall so determine. At all meetings of stockholders for the election of directors, a plurality of the votes cast shall be sufficient to elect. All other elections and questions shall, unless otherwise provided by law or by the Certificate of Incorporation or these Bylaws, be decided by the vote of the holders of a majority of the outstanding shares of stock entitled to vote thereon present in person or by proxy at the meeting, provided that (except as otherwise required by law or by the Certificate of Incorporation) the Board of Directors may require a larger vote upon any election or question. 1.8 Fixing Date for Determination of Stockholders of Record. (a) Notice and Voting Rights: In order that the Company may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than sixty nor less than ten days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for 3 determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting. (b) Consents: In order that the Company may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which date shall not be more than ten days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date has been fixed by the Board of Directors, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is required by law, the Certificate of Incorporation or these Bylaws, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company by delivery to its registered office, principal place of business, or an officer or agent of the Company having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Company's registered office shall be by hand or by certified mail, return receipt requested. If no record date has been fixed by the Board of Directors and prior action by the Board of Directors is required by law, the Certificate of Incorporation or these Bylaws, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action. (c) Other Lawful Action: In order that the Company may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto. 1.9 List of Stockholders Entitled to Vote. The Secretary shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. 1.10 Consent of Stockholders in Lieu of Meeting. Unless otherwise restricted by the Certificate of Incorporation, any action required or permitted to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, or any verifiable electronic transmission setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. The consent or consents shall be delivered to the Company by delivery to its registered office, principal place of business, or an officer or agent of the Company having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Company's registered office shall be by hand or by certified or registered mail, return receipt requested. Every written consent shall bear the date of signature of each stockholder who signs the consent and no written consent shall be effective to take the corporate action referred to therein unless, within sixty days of the earliest dated consent delivered in the manner required by law, to the Company, written consents signed by a sufficient number of holders to take action are delivered to the 4 Company in the manner indicated above. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing. ARTICLE II BOARD OF DIRECTORS 2.1 Functions and Compensation. The business and affairs of the Company shall be managed by or under the direction of the Board of Directors of the Company. The Board of Directors shall have the authority to fix the compensation of the members thereof. 2.2 Number; Qualifications. The Board of Directors shall consist of one or more members, the number thereof to be determined from time to time by resolution of the Board of Directors. Directors need not be stockholders. 2.3 Election; Resignation; Removal; Vacancies. The Board of Directors shall initially consist of the persons elected as such by the incorporator. At the first annual meeting of stockholders and at each annual meeting thereafter, the stockholders shall elect Directors to replace those Directors whose terms then expire. Any Director may resign at any time upon written notice to the Company. Stockholders may remove Directors with or without cause by vote of a majority of the shares then entitled to vote at an election of directors. Any vacancy occurring in the Board of Directors for any cause may be filled by a majority of the remaining members of the Board of Directors, although such majority is less than a quorum, or by a plurality of the votes cast at a meeting of stockholders, and each Director so elected shall hold office until the expiration of the term of office of the Director whom he has replaced. 2.4 Regular Meetings. Regular meetings of the Board of Directors may be held at such places within or without the State of Delaware and at such times as the Board of Directors may from time to time determine, and if so determined notices thereof need not be given. 2.5 Special Meetings. Special meetings of the Board of Directors may be held at any time or place within or without the State of Delaware whenever called by the Chairman of the Board, the President, any Vice President, the Secretary, or by a plurality of directors in office. Reasonable notice thereof shall be given by the person or persons calling the meeting, not later than the second day before the date of the special meeting. 2.6 Telephonic Meetings Permitted. Members of the Board of Directors may participate in a meeting by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this Section 2.6 shall constitute presence in person at such meeting. 2.7 Quorum; Vote Required for Action. At all meetings of the Board of Directors a majority of the entire Board shall constitute a quorum for the transaction of business. Except in cases in which the Certificate of Incorporation or these Bylaws otherwise provide, the vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors. 2.8 Organization. Meetings of the Board of Directors shall be presided over by the Chairman of the Board, if any, or in his or her absence by the President, or in his or her absence by a chairman chosen at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairman of the meeting may appoint any person to act as secretary of the meeting. 2.9 Action by Directors Without a Meeting. Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing or by any electronic transmission, and the writing, writings, or electronic transmission are filed with the minutes of proceedings of the Board. 5 ARTICLE III OFFICERS 3.1 Executive Officers; Election; Qualifications. As soon as practicable after the annual meeting of stockholders in each year the Board of Directors shall elect a President and Secretary, and it may, if it so determines, elect a Chairman of the Board. The Board of Directors may also elect one or more Vice Presidents, one or more Assistant Vice Presidents, one or more Assistant Secretaries, a Treasurer and one or more Assistant Treasurers and may give any of them such further designations or alternate titles as it considers desirable. Any number of offices may be held by the same person. The Board of Directors may designate the Chief Executive Officer. 3.2 Term of Office; Resignation; Removal; Vacancies. Except as otherwise provided in the resolution of the Board of Directors electing any officer, each such officer shall hold office until the first meeting of the Board of Directors after the annual meeting of stockholders next succeeding this election, and until his or her successor is elected and qualified or until his or her earlier resignation or removal. Any officer may resign at any time upon written notice to the Company. The Board of Directors may remove any officer with or without cause at any time, but such removal shall be without prejudice to the contractual rights of such officer, if any, with the Company. Any vacancy occurring in any office of the Company by death, resignation, removal or otherwise may be filled for the unexpired portion of the term by the Board of Directors at any regular or special meeting. 3.3 Powers and Duties of Executive Officers. The officers of the Company shall have such powers and duties in the management of the Company as may be prescribed by the Board of Directors and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board of Directors. The President and each Vice President shall have authority to sign certificates for shares of stock, bonds, deeds and all manner of contracts necessary, expedient in or incident to the conduct of the Company's business and to delegate such authority, to a maximum commitment level of $10 million and in accordance with the Company's policies and procedures, in such manner as may be approved by the President. The Secretary shall have the duty to record the proceedings of the meetings of the stockholders, the Board of Directors in a book to be kept for that purpose. The Board of Directors may require any officer, agent or employee to give security for the faithful performance of his or her duties. 3.4 Compensation. The Board of Directors shall fix the compensation of the Chairman of the Board and of the President and shall fix, or authorize the Chairman of the Board or the President to fix, the compensation of any or all others. The Board of Directors may vote compensation to any director for attendance at meetings or for any special services. ARTICLE IV STOCK 4.1 Certificates. Every holder of stock shall be entitled to have a certificate signed by or in the name of the Company by the Chairman of the Board of Directors, if any, or the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary, of the Company, certifying the number of shares owned by him in the Company. Any of or all the signatures on the certificate may be a facsimile. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued by the Company with the same effect as if he were such officer, transfer agent, or registrar at the date of issue. 4.2 Transfer of Stock. Upon surrender to the Company or the transfer agent of the Company of a certificate for shares endorsed or accompanied by a written assignment signed by the holder of record or by his or her duly authorized attorney-in-fact, it shall be the duty of the Company, or its duly appointed transfer agent, 6 to issue a new certificate to the person entitled thereto, cancel the old certificate and record the transaction upon its books. 4.3 Lost, Stolen or Destroyed Stock Certificates; Issuance of New Certificates. The Company may issue a new certificate of stock in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Company may require the owner of the lost, stolen or destroyed certificate, or his or her legal representative, to give the Company a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate. ARTICLE V INDEMNIFICATION 5.1 Indemnification in Third Party Actions. The Company shall indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that such person is or was a director, officer or employee of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against all expense, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties, and amounts paid or to be paid in settlement) actually and reasonably incurred by such person in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful, except that no indemnification shall be made in respect of any proceeding (or part thereof) initiated by such person unless such proceeding (or part thereof) was authorized by the Board of Directors of the Company. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. 5.2 Indemnification in an Action by or in the Right of the Company. The Company shall indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that such person is or was a director, officer or employee of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the Company and except that no indemnification shall be made in respect of (a) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such Court of Chancery or such other court shall deem proper, or (b) any proceeding (or part thereof) initiated by such person unless such proceeding (or part thereof) was authorized by the Board of Directors of the Company. 5.3 Indemnification as of Right. To the extent that a director, officer or employee of the Company has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections I and 2 of this Article V, or in defense of any claim, issue or matter therein, such person shall be indemnified 7 against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith. 5.4 Determination of Indemnification. Any indemnification under Sections 1 and 2 of this Article V (unless ordered by a court) shall be made by the Company only as authorized in the specific case upon a determination that indemnification of the director, officer or employee is proper in the circumstances because the person has met the applicable standard of conduct set forth in such Sections l and 2. Such determination shall be made, with respect to a person who is a director or officer at the time of such determination, (a) by a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, or (b) by a committee of such directors designated by majority vote of such directors, even though less than a quorum, or (c) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion, or (d) by the stockholders. 5.5 Advance for Expenses. Expenses (including attorneys' fees) incurred in defending any civil, criminal, administrative or investigative action, suit or proceeding shall be paid by the Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer or employee to repay such amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the Company as authorized in this Article V, except that no advancement of expenses shall be made in respect of any proceeding (or part thereof) initiated by such person unless such proceeding (or part thereof) was authorized by the Board of Directors of the Company. 5.6 General Provisions. (a) All expenses (including attorneys' fees) incurred in defending any civil, criminal, administrative or investigative action, suit or proceeding which are advanced by the Company under Section 5 of this Article V shall be repaid (i) in case the person receiving such advance is ultimately found, under the procedure set forth in this Article V, not to be entitled to indemnification, or (ii) where indemnification is granted, to the extent that the expenses so advanced by the Company exceed the indemnification to which such person is entitled. (b) The Company may indemnify each person, though he or she is not or was not a director, officer or employee of the Company, who served at the request of the Company on a committee created by the Board of Directors to consider and report to it in respect of any matter. Any such indemnification may be made under the preceding provisions of this Article V and shall be subject to the limitations thereof except that (as indicated) any such committee member need not be nor have been a director, officer or employee of the Company. (c) The provisions of this Article V shall be applicable to appeals. References to "serving at the request of the Company" shall include without limitation any service as a director, officer or employee of the Company which imposes duties on, or involves services by, such director, officer or employee with respect to an employee benefit plan, its participants or beneficiaries. A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Company." (d) If any section, subsection, paragraph, sentence, clause, phrase or word in this Article V shall be adjudicated invalid or unenforceable, such adjudication shall not be deemed to invalidate or otherwise affect any other section, subsection, paragraph, sentence, clause, phrase or word of this Article. (e) The indemnification and advancement of expenses provided by, or granted pursuant to, this Article V shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any Bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in their official capacities and as to action in another 8 capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer or employee and shall inure to the benefit of the heirs, executors and administrators of such a person. ARTICLE VI MISCELLANEOUS 6.1 Fiscal Year. The fiscal year of the Company shall be determined in the discretion of the Board of Directors, but in the absence of any such determination it shall be the calendar year. 6.2 Seal. The Corporate seal shall have the name of the Company inscribed thereon and shall be in such form as may be approved from time to time by the Board of Directors. 6.3 Waiver of Notice of Meetings of Stockholders, Directors and Committees. Any written waiver of notice, signed by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Any notice may take the form of an electronic transmission. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of any regular or special meeting of the stockholders or directors need be specified in any written waiver of notice. 6.4 Interested Directors; Quorum. No contract or transaction between the Company and one or more of its directors or officers, or between the Company and any other company, partnership, association, or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board which authorizes the contract or transaction, or solely because their votes are counted for such purpose, if: (1) the material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors, and the Board in good faith authorized the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (2) the material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (3) the contract or transaction is fair as to the Company as of the time it is authorized, approved or ratified, by the Board of Directors or the stockholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or of a committee which authorizes the contract or transaction. 6.5 Form of Records. Any records maintained by the Company in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or be in the form of, punch cards, magnetic tape, photographs, microphotographs, or any other information storage device, provided that the records so kept can be converted into clearly legible form within a reasonable time. The Company shall so convert any records so kept upon the request of any person entitled to inspect the same. 6.6 Amendment of Bylaws. These Bylaws may be altered or repealed, and new bylaws made, by the Board of Directors, but the stockholders may make additional bylaws and may alter and repeal any bylaws whether adopted by them or otherwise. 9 Exhibit B-2 DOMINION PRODUCTS AND SERVICES, INC. CERTIFICATE OF INCORPORATION AS AMENDED EFFECTIVE SEPTEMBER 5, 2000 CERTIFICATE OF INCORPORATION OF Dominion Products and Services, Inc. The undersigned, a natural person, for the purpose of organizing a corporation for conducting the business and promoting the purposes hereinafter stated, under the provisions and subject to the requirements of the laws of the State of Delaware (particularly Chapter 1, Title 8 of the Delaware Code and the acts amendatory thereof and supplemental thereto, and known, identified, and referred to as the "General Corporation Law of the State of Delaware") hereby certifies that: FIRST. The name of the corporation (hereinafter called the "corporation") is: Dominion Products and Services, Inc. SECOND. The address, including street, number, city, and county, of the registered office of the corporation in the State of Delaware is 32 Loockerman Square, Suite L-100, City of Dover, County of Kent; and the name of the registered agent of the corporation in the State of Delaware at such address is The Prentice-Hall Corporation System, Inc. THIRD. The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. FOURTH. The total number of shares of stock which the corporation shall have authority to issue is One Thousand (1,000) shares. Each of such shares have a par value of Ten Thousand Dollars ($10,000.00). All such shares are one class and are shares of Common Stock. FIFTH. The name and mailing address of the incorporator are as follows: NAME MAIL ADDRESSING Sarah Thomas 1013 Centre Road Wilmington, DE 19805 SIXTH. The name and the mailing address of each person who is to serve as a director until the first annual meeting of stockholders or until a successor is elected and qualified is as follows: T.N. Tower One Park Ridge Center, P.O. Box 15746 Pittsburgh, PA 15244 R.R. Gifford One Park Ridge Center, P.O. Box 15746 Pittsburgh, PA 15244 C.T. Funk One Park Ridge Center, P.O. Box 15746 Pittsburgh, PA 15244 SEVENTH. The corporation is to have perpetual existence. EIGHTH. In furtherance, and not in limitation of the powers conferred by statue, the board of directors is expressly authorized: To make, alter or repeal the by-laws of the corporation. By a majority of the whole board, to designate one or more committees, each committee to consist of one or more of the directors of the corporation. The board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. The by-laws may provide that in the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not 2 disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the board of directors, or in the by-laws of the corporation, shall have and may exercise all the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to amending the certificate of incorporation, adopting an agreement of merger or consolidation, recommending to the stockholders the sale, lease or exchange of all or substantially all of the corporation's property and assets, recommending to the stockholders a dissolution of the corporation or a revocation of a dissolution, or amending the by-laws of the corporation; and unless the resolution or by- laws expressly so provide, no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock. When and as authorized by the stockholders in accordance with statue, to sell, lease or exchange all or substantially all of the property and assets of the corporation, including its good will and its corporate franchises, upon such terms and conditions and for such consideration, which may consist in whole or in part of money or property including shares of stock in, and/or other securities of, any other corporation or corporation, as its board of directors shall deem expedient and for the best interests of the corporation. NINTH. Elections of directors need not be by written ballot unless the by- law of the corporation shall so state. Meetings of stockholders may be held within or without the State of Delaware, as the by-laws may provide. The books of the corporation may be kept (subject to any provision contained in the statutes) outside the State of Delaware at such place or places as may be designated from time to time by the board of directors or in the by-laws of the corporation. TENTH. To the full extent that the General Corporation Law of the State of Delaware, as the same now exists, permits elimination or limitation of the liability of directors, no director of the corporation shall be liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived an improper personal benefit. To the full extent permitted by law, all directors of the corporation shall be afforded any exemption from liability or limitation of liability permitted by any subsequent enactment, modification or amendment of the General Corporation Law of the State of Delaware. Any repeal or modification of either or both of the foregoing paragraphs by the stockholders of the corporation shall not adversely affect any exemption from liability limitation of liability or other right of a director of the corporation with respect to any matter occurring prior to such repeal or modification. ELEVENTH. The corporation reserves the right to amend, alter, change or repeal any provision contained in this certificate of incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation. Signed on August 28, 1995 ------------------------------------- Sarah Thomas, Incorporator 3 EXHIBIT B-3 DOMINION PRODUCTS AND SERVICES, INC. BY LAWS AS AMENDED EFFECTIVE SEPTEMBER 5, 2000 DOMINION PRODUCTS AND SERVICES, INC. * * * * * B Y - L A W S * * * * * ARTICLE I OFFICES Section 1. The registered office shall be in the City of Dover, County of Kent, State of Delaware. Section 2. The corporation may also have offices at such other places both within and without the State of Delaware as the board of directors may from time to time determine or the business of the corporation may require. ARTICLE II MEETINGS OF STOCKHOLDERS Section 1. All meetings of the stockholders for the election of directors shall be held in the City of Pittsburgh, State of Pennsylvania, at such place as may be fixed from time to time by the board of directors, or at such other place either within or without the State of Delaware as shall be designated from time to time by the board of directors and stated in the notice of the meeting. Meetings of stockholders for any other purpose may be held at such time and place, within or without the State of Delaware, as shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof. Section 2. Annual meetings of stockholders, commencing with the year 1995, shall be held on the third Tuesday of May if not a legal holiday, and if a legal holiday, then on the next secular day following, at 10:00 a.m., or at such other date and time as shall be designated from time to time by the board of directors and stated in the notice of the meeting, at which they shall elect by a plurality vote a board of directors, and transact such other business as may properly be brought before the meeting. Section 3. Written notice of the annual meeting stating the place, date and hour of the meeting shall be given to each stockholder entitled to vote at such meeting not less than ten nor more than sixty days before the date of the meeting. Section 4. The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. Section 5. Special meetings of the stockholders, for any purpose or purposes, unless otherwise prescribed by statute or by the certificate of incorporation, may be called by the president and shall be called by the president or secretary at the request in writing of a majority of the board of directors, or at the request in writing of stockholders owning a majority in amount of the entire capital stock of the corporation issued and outstanding and entitled to vote. Such request shall state the purpose or purposes of the proposed meeting. 2 Section 6. Written notice of a special meeting stating the place, date and hour of the meeting and the purpose or purposes for which the meeting is called, shall be given not less than ten nor more than sixty days before the date of the meeting, to each stockholder entitled to vote at such meeting. Section 7. Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice. Section 8. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business except as otherwise provided by statute or by the certificate of incorporation. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the stockholders entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present or represented. At such adjourned meeting at which a quorum shall be present or represented any business may be transacted which might have been transacted at the meeting as originally notified. If the adjournment is for more than thirty days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. Section 9. When a quorum is present at any meeting, the vote of the holders of a majority of the stock having voting power present in person or represented by proxy shall decide any question brought before such meeting, unless the question is one upon which by express provision of the statutes or of the certificate of incorporation, a different vote is required in which case such express provision shall govern and control the decision of such question. Section 10. Unless otherwise provided in the certificate of incorporation each stockholder shall at every meeting of the stockholders be entitled to one vote in person or by proxy for each share of the capital stock having voting power held by such stockholder, but no proxy shall be voted on after three years from its date, unless the proxy provides for a longer period. Section 11. Unless otherwise provided in the certificate of incorporation, any action required to be taken at any annual or special meeting of stockholders of the corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing. ARTICLE III DIRECTORS Section 1. The number of directors which shall constitute the whole board shall be not less than one nor more than fifteen. The first board shall consist of three directors. Thereafter, within the limits above specified, the number of directors shall be determined by resolution of the board of directors or by the stockholders at the annual meeting. The directors shall be elected at the annual meeting of the stockholders, except as provided in Section 2 of this Article, and each director elected shall hold office until his successor is elected and qualified. Directors need not be stockholders. Section 2. Vacancies and newly created director-ships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and the directors so chosen shall hold office until the next annual election and until their successors are duly elected and shall qualify, unless sooner displaced. If there are no directors in office, 3 then an election of directors may be held in the manner provided by statute. If, at the time of filling any vacancy or any newly created directorship, the directors then in office shall constitute less than a majority of the whole board (as constituted immediately prior to any such increase), the Court of Chancery may, upon application of any stockholder or stockholders holding at least ten percent of the total number of the shares at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office. Section 3. The business of the corporation shall be managed by or under the direction of its board of directors which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute or by the certificate of incorporation or by these by-laws directed or required to be exercised or done by the stockholders. MEETINGS OF THE BOARD OF DIRECTORS Section 4. The board of directors of the corporation may hold meetings, both regular and special, either within or without the State of Delaware. Section 5. The first meeting of each newly elected board of directors shall be held at such time and place as shall be fixed by the vote of the stockholders at the annual meeting and no notice of such meeting shall be necessary to the newly elected directors in order legally to constitute the meeting, provided a quorum shall be present. In the event of the failure of the stockholders to fix the time or place of such first meeting of the newly elected board of directors, or in the event such meeting is not held at the time and place so fixed by the stockholders, the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings of the board of directors, or as shall be specified in a written waiver signed by all of the directors Section 6. Regular meetings of the board of directors may be held without notice at such time and at such place as shall from time to time be determined by the board. Section 7. Special meetings of the board may be called by the president on two days' notice to each director, either personally or by mail or by telegram; special meetings shall be called by the president or secretary in like manner and on like notice on the written request of two directors unless the board consists of only one director; in which case special meetings shall be called by the president or secretary in like manner and on like notice on the written request of the sole director. Section 8. At all meetings of the board one-third of the directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the board of directors except as may be otherwise specifically provided by statute or by the certificate of incorporation. If a quorum shall not be present at any meeting of the board of directors the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. Section 9. Unless otherwise restricted by the certificate of incorporation or these by-laws, any action required or permitted to be taken at any meeting of the board of directors or of any committee thereof may be taken without a meeting, if all members of the board or committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the board or committee. Section 10. Unless otherwise restricted by the certificate of incorporation or these by-laws, members of the board of directors, or any committee designated by the board of directors, may participate in a meeting of the board of directors, or any committee, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting. 4 COMMITTEES OF DIRECTORS Section 11. The board of directors may, by resolution passed by a majority of the whole board, designate one or more committees, each committee to consist of one or more of the directors of the corporation. The board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the board of directors, shall have and may exercise all the powers and authority of the board of directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to amending the certificate of incorporation, (except that a committee may, to the extent authorized in the resolution or resolutions providing for the issuance of shares of stock adopted by the board of directors as provided in Section 151(a) fix any of the preferences or rights of such shares relating to dividends, redemption, dissolution, any distribution of assets of the corporation or the conversion into, or the exchange of such shares for, shares of any other class or classes or any other series of the same or any other class or classes of stock of the corporation) adopting an agreement of merger or consolidation, recommending to the stockholders the sale, lease or exchange of all or substantially all of the corporation's property and assets, recommending to the stockholders a dissolution of the corporation or a revocation of a dissolution, or amending the by-laws of the corporation; and, unless the resolution or the certificate of incorporation expressly so provide, no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock or to adopt a certificate of ownership and merger. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the board of directors. Section 12. Each committee shall keep regular minutes of its meetings and report the same to the board of directors when required. COMPENSATION OF DIRECTORS Section 13. Unless otherwise restricted by the certificate of incorporation or these by-laws, the board of directors shall have the authority to fix the compensation of directors. The directors may be paid their expenses, if any, of attendance at each meeting of the board of directors and may be paid a fixed sum for attendance at each meeting of the board of directors or a stated salary as director. No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor. Members of special or standing committees may be allowed like compensation for attending committee meetings. REMOVAL OF DIRECTORS Section 14. Unless otherwise restricted by the certificate of incorporation or by-laws, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of shares entitled to vote at an election of directors. ARTICLE IV NOTICES Section 1. Whenever, under the provisions of the statutes or of the certificate of incorporation or of these by-laws, notice is required to be given to any director or stockholder, it shall not be construed to mean personal 5 notice, but such notice may be given in writing, by mail, addressed to such director or stockholder, at his address as it appears on the records of the corporation, with postage thereon prepaid, and such notice shall be deemed to be given at the time when the same shall be deposited in the United States mail. Notice to directors may also be given by telegram. Section 2. Whenever any notice is required to be given under the provisions of the statutes or of the certificate of incorporation or of these by-laws, a waiver thereof in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent thereto. ARTICLE V OFFICERS Section 1. The officers of the corporation shall be chosen by the board of directors and shall be a president, a vice-president, a secretary and a treasurer. The board of directors may also choose additional vice-presidents, and one or more assistant secretaries and assistant treasurers. Any number of offices may be held by the same person, unless the certificate of incorporation or these by-laws otherwise provide. Section 2. The board of directors at its first meeting after each annual meeting of stockholders shall choose a president, one or more vice-presidents, a secretary and a treasurer. Section 3. The board of directors may appoint such other officers and agents as it shall deem necessary who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the board. Section 4. The salaries of all officers and agents of the corporation shall be fixed by the board of directors. Section 5. The officers of the corporation shall hold office until their successors are chosen and qualify. Any officer elected or appointed by the board of directors may be removed at any time by the affirmative vote of a majority of the board of directors. Any vacancy occurring in any office of the corporation shall be filled by the board of directors. THE PRESIDENT Section 6. The president shall be the chief executive officer of the corporation, shall preside at all meetings of the stockholders and the board of directors, shall have general and active management of the business of the corporation and shall see that all orders and resolutions of the board of directors are carried into effect. Section 7. He shall execute bonds, mortgages and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the board of directors to some other officer or agent of the corporation. THE VICE-PRESIDENTS Section 8. In the absence of the president or in the event of his inability or refusal to act, the vice-president (or in the event there be more than one vice-president, the vice-presidents in the order designated by the directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the president, and when so acting, shall have all the powers of and be subject to all the restrictions upon the president. The vice-presidents shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. 6 THE SECRETARY AND ASSISTANT SECRETARIES Section 9. The secretary shall attend all meetings of the board of directors and all meetings of the stockholders and record all the proceedings of the meetings of the corporation and of the board of directors in a book to be kept for that purpose and shall perform like duties for the standing committees when required. He shall give, or cause to be given, notice of all meetings of the stockholders and special meetings of the board of directors, and shall perform such other duties as may be prescribed by the board of directors or president, under whose supervision he shall be. He shall have custody of the corporate seal of the corporation and he, or an assistant secretary, shall have authority to affix the same to any instrument requiring it and when so affixed, it may be attested by his signature or by the signature of such assistant secretary. The board of directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 10. The assistant secretary, or if there be more than one, the assistant secretaries in the order determined by the board of directors (or if there be no such determination, then in the order of their election) shall, in the absence of the secretary or in the event of his inability or refusal to act, perform the duties and exercise the powers of the secretary and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. THE TREASURER AND ASSISTANT TREASURERS Section 11. The treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the board of directors. Section 12. He shall disburse the funds of the corporation as may be ordered by the board of directors, taking proper vouchers for such disbursements, and shall render to the president and the board of directors, at its regular meetings, or when the board of directors so requires, an account of all his transactions as treasurer and of the financial condition of the corporation. Section 13. If required by the board of directors, he shall give the corporation a bond (which shall be renewed every six years) in such sum and with such surety or sureties as shall be satisfactory to the board of directors for the faithful performance of the duties of his office and for the restoration to the corporation, in case of his death, resignation, retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belonging to the corporation. Section 14. The assistant treasurer, or if there shall be more than one, the assistant treasurers in the order determined by the board of directors (or if there be no such determination, then in the order of their election) shall, in the absence of the treasurer or in the event of his inability or refusal to act, perform the duties and exercise the powers of the treasurer and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. ARTICLE VI CERTIFICATES FOR SHARES Section 1. The shares of the corporation shall be represented by a certificate or shall be uncertificated. Certificates shall be signed by, or in the name of the corporation by, the president or a vice-president and the treasurer or an assistant treasurer, or the secretary or an assistant secretary of the corporation. Within a reasonable time after the issuance or transfer of uncertificated stock, the corporation shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on 7 certificates pursuant to Sections 151, 156, 202 (a) or 218 (a) or a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Section 2. Any of or all the signatures on a certificate may be facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if he were such officer, transfer agent or registrar at the date of issue. LOST CERTIFICATES Section 3. The board of directors may direct a new certificate or certificates or uncertificated shares to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed. When authorizing such issue of a new certificate or certificates or uncertificated shares, the board of directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or certificates, or his legal representative, to advertise the same in such manner as it shall require and/or to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen or destroyed. TRANSFER OF STOCK Section 4. Upon surrender to the corporation or the transfer agent of the corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer, it shall be the duty of the corporation to issue a new certificate to the person entitled thereto, cancel the old certificate and record the transaction upon its books. Upon receipt of proper transfer instructions from the registered owner of uncertificated shares such uncertificated shares shall be cancelled and issuance of new equivalent uncertificated shares or certificated shares shall be made to the person entitled thereto and the transaction shall be recorded upon the books of the corporation. FIXING RECORD DATE Section 5. In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the board of directors may fix, in advance, a record date, which shall not be more than sixty nor less than ten days before the date of such meeting, nor more than sixty days prior to any other action. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting: provided, however, that the board of directors may fix a new record date for the adjourned meeting. REGISTERED STOCKHOLDERS Section 6. The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any 8 equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware. ARTICLE VII GENERAL PROVISIONS DIVIDENDS Section 1. Dividends upon the capital stock of the corporation, subject to the provisions of the certificate of incorporation, if any, may be declared by the board of directors at any regular or special meeting, pursuant to law. Dividends may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the certificate of incorporation. Section 2. Before payment of any dividend, there may be set aside out of any funds of the corporation available for dividends such sum or sums as the directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the corporation, or for such other purpose as the directors shall think conducive to the interest of the corporation, and the directors may modify or abolish any such reserve in the manner in which it was created. ANNUAL STATEMENT Section 3. The board of directors shall present at each annual meeting, and at any special meeting of the stockholders when called for by vote of the stockholders, a full and clear statement of the business and condition of the corporation. CHECKS Section 4. All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the board of directors may from time to time designate. FISCAL YEAR Section 5. The fiscal year of the corporation shall be the calendar year unless fixed otherwise by resolution of the board of directors. SEAL Section 6. The corporate seal shall have inscribed thereon the name of the corporation, the year of its organization and the words "Corporate Seal, Delaware". The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise. INDEMNIFICATION Section 7. Each person who at any time is, or shall have been a director or officer of the corporation, or serves or has served as a director, officer, fiduciary or other representative of another company, partnership, joint venture, trust, association or other enterprise (including any employee benefit plan), where such service was specifically requested by the corporation in accordance with the fourth paragraph of this Section 7, or the established guidelines for participation in outside positions (such service hereinafter being referred to as 9 "Outside Service"), and is threatened to be or is made a party to any threatened, pending, or completed claim, action, suit or Proceeding, whether civil, criminal, administrative or investigative ("Proceeding"), by reason of the fact that he is, or was, a director, officer, fiduciary or other representative of such other enterprise, shall be indemnified against expenses (including attorney's fees), judgments, fines and amounts paid in settlement ("Loss") actually and reasonably incurred by him in connection with any such Proceeding to the full extent permitted under the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended, (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than said law permitted the corporation to provide prior to such amendment). The corporation shall indemnify any person seeking indemnity in connection with any Proceeding (or part thereof) initiated by such person only if such Proceeding (or part thereof) initiated by such person was authorized by the board of directors of the corporation. With respect to any Loss arising from Outside Service, the corporation shall provide such indemnification only if and to the extent that (i) such other company, partnership, joint venture, trust, association or enterprise is not legally permitted or financially able to provide such indemnification, and (ii) such Loss is not paid pursuant to any insurance policy other than any insurance policy maintained by the corporation. The right to be indemnified pursuant hereto shall include the right to be paid by the corporation for expenses, including attorney's fees, incurred in defending any such Proceeding in advance of its final disposition; provided, however, that the payment of such expenses in advance of the final disposition of such Proceeding shall be made only upon delivery to the corporation of an undertaking, by or on behalf of such director, officer, fiduciary or other representative in which such director, officer, fiduciary or other representative agrees to repay all amounts so advanced if it should be determined ultimately that such director, officer, fiduciary or other representative is not entitled to be indemnified under applicable law. The right to be indemnified or to the reimbursement or advancement of expenses pursuant hereto shall in no way be exclusive of any other rights of indemnification or advancement to which any such director, officer or employee may be entitled, under any by-law, agreement, vote of stockholders or disinterested directors or otherwise both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer or employee and shall inure to the benefit of the heirs, executors and administrators of such person. Any person who is serving or has served as a director, officer, or fiduciary of (i) another corporation of which a majority of the shares entitled to vote in the election of its directors is held by the corporation at the time of such service, or (ii) any employee benefit plan of the corporation or of any corporation referred to in the foregoing (i), shall be deemed to be doing or have done so at the request of the corporation. ARTICLE VIII AMENDMENTS Section 1. These by-laws may be altered, amended or repealed or new by-laws may be adopted by the stockholders or by the board of directors, when such power is conferred upon the board of directors by the certificate of incorporation at any regular meeting of the stockholders or of the board of directors or at any special meeting of the stockholders or of the board of directors if notice of such alteration, amendment, repeal or adoption of new by-laws be contained in the notice of such special meeting. If the power to adopt, amend or repeal by-laws is conferred upon the board of directors by the certificate of incorporation it shall not divest or limit the power of the stockholders to adopt, amend or repeal by-laws. 10 EXHIBIT B-4 DOMINION RESOURCES SERVICES, INC. ARTICLES OF INCORPORATION As amended December 19, 2000 ARTICLE I The name of the Corporation is Dominion Resources Services, Inc. ARTICLE II The purpose for which the Corporation is organized is to carry on any business not prohibited by law or required to be specifically set forth in these Articles. ARTICLE III The Corporation shall have authority to issue 1,000 shares of Common Stock without par value. ARTICLE IV The number of Directors shall be fixed by the Bylaws. Each Director and Officer shall be indemnified by the Corporation against liabilities, fines, penalties and claims imposed upon or asserted against him (including amounts paid in settlement) by reason of having been such a Director or Officer, whether or not then continuing so to be, and against all expenses (including counsel fees) reasonably incurred by him in connection therewith, except in relation to matters as to which he shall have been finally adjudged to be liable by reason of having been guilty of gross negligence or willful misconduct in the performance of his duty as such Director or Officer. In the event of any other judgment against such Director or Officer or in the event of a settlement, the indemnification shall be made only if the Corporation shall be advised, in case none of the persons involved shall be or have been a Director of the Corporation, by the Board of Directors, and otherwise by independent counsel to be appointed by the Board of Directors, that in its or his opinion such Director or Officer was not guilty of gross negligence or willful misconduct in the performance of his duty, and, in the event of a settlement, that such settlement was, or if still to be made is, in the best interests of the Corporation. If the determination is to be made by the Board of Directors, it may rely, as to all questions of law, on the advice of independent counsel. Every reference herein to Director or Officer shall include every Director or Officer or former Director or Officer of the Corporation and every person who may have served at its request as a Director or Officer of another corporation in which the Corporation owns shares of stock or of which it is a creditor or, in case of a non-stock corporation, to which the Corporation contributed and, in all of such cases, his executors and administrators. The right of indemnification hereby provided shall not be exclusive of any other rights to which any Director or Officer may be entitled. ARTICLE V The address of the initial registered office of the Corporation, which is located in the City of Richmond, Virginia, is c/o Dominion Resources, Inc., 100 Tredegar Street, 2nd Floor, P. O. Box 26532, Richmond, Virginia 23261. The initial registered agent of the Corporation is James F. Stutts, whose business office is identical with the registered office and who is a member of the Virginia State Bar, and a resident of the State of Virginia. Incorporator: ------------------------------------- Francine B. Mathews 2 EXHIBIT B-5 DOMINION RESOURCES SERVICES, INC. BYLAWS AS AMENDED EFFECTIVE DECEMBER 31, 2000 DOMINION RESOURCES SERVICES, INC. A Virginia Corporation BYLAWS ARTICLE I MEETINGS OF SHAREHOLDERS 1.1 Place and Time of Meetings. Meetings of shareholders shall be held at such place, either within or without the Commonwealth of Virginia, and at such time as may be provided in the notice of the meeting and approved by the Chairman of the Board of Directors (the "Chairman"), the President or the Board of Directors. 1.2 Presiding Officer; Secretary. The Chairman shall preside over all meetings of the shareholders. If he or she is not present, or if there is none in office, the President or a Vice President shall preside, or, if none be present, a Chairman shall be elected by the meeting. The Secretary of the Company shall act as secretary of all the meetings, if present. If he or she is not present, the Chairman shall appoint a secretary of the meeting. 1.3 Annual Meeting. The annual meeting of shareholders shall be held on the third Tuesday in May of each year or on such date as may be designated by resolution of the Board of Directors from time to time for the purpose of electing directors and conducting such other business as may properly come before the meeting. 1.4 Special Meetings. Special meetings of the shareholders may be called by the Chairman, the President or the Board of Directors and shall be called by the Secretary upon demand of shareholders as required by law. Only business within the purpose or purposes described in the notice for a special meeting of shareholders may be conducted at the meeting. 1.5 Record Dates. The record date for determining shareholders entitled to demand a special meeting is the date the first shareholder signs the demand that the meeting be held. Except as is provided in the preceding paragraph the Board of Directors may fix, in advance, a record date to make a determination of shareholders for any purpose, such date to be not more than 70 days before the meeting or action requiring a determination of shareholders. If no such record date is set for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or for the determination of shareholders entitled to receive payment of a dividend, then the record date shall be the close of business on the day before the date on which the first notice is given or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be. When a determination of shareholders entitled to notice of or to vote at any meeting of shareholders has been made, such determination shall be effective for any adjournment of the meeting unless the Board of Directors fixes a new record date, which it shall do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting. 1.6 Notice of Meetings. Written notice stating the place, day and hour of each meeting of shareholders and, in case of a special meeting, the purpose or purposes for which the meeting is called shall be given not less than 10 nor more than 60 days before the date of the meeting (except when a different time is required in these Bylaws or by law) either personally or by mail, electronic mail, telecopy facsimile or other form of wire or wireless communication, or by private courier to each shareholder of record entitled to vote at such meeting and to such nonvoting shareholders as may be required by law. If mailed, such notice shall be deemed to be effective when deposited in first class United States mail with postage thereon prepaid and addressed to the shareholder at his or her address as it appears on the share transfer books of the Company. If given in any other manner, such notice shall be deemed to be effective (i) when given personally or by telephone, (ii) when sent by electronic mail, telecopy facsimile or other form of wire or wireless communication or (iii) when given to a private courier to be delivered. 2 If a meeting is adjourned to a different date, time or place, notice need not be given if the new date, time or place is announced at the meeting before adjournment. However, if a new record date for an adjourned meeting is fixed, notice of the adjourned meeting shall be given to shareholders as of the new record date unless a court provides otherwise. 1.7 Waiver of Notice; Attendance at Meeting. A shareholder may waive any notice required by law, the Articles of Incorporation or these Bylaws before or after the date and time of the meeting that is the subject of such notice. The waiver shall be in writing or reproduced from an electronic transmission, be signed by the shareholder entitled to the notice and be delivered to the Secretary for inclusion in the minutes or filing with the corporate records. A shareholder's attendance at a meeting (i) waives objection to lack of notice or defective notice of the meeting unless the shareholder, at the beginning of the meeting, objects to holding the meeting or transacting business at the meeting and (ii) waives objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice unless the shareholder objects to considering the matter when it is presented. 1.8 Quorum and Voting Requirements. Unless otherwise required by law, a majority of the votes entitled to be cast on a matter constitutes a quorum for action on that matter. Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting unless a new record date is or shall be set for that adjourned meeting. If a quorum exists, action on a matter, other than the election of directors, is approved if the votes cast favoring the action exceed the votes cast opposing the action unless a greater or different number of affirmative votes is required by law or the Articles of Incorporation or these Bylaws. Directors shall be elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present. Less than a quorum may adjourn a meeting. 1.9 Action Without Meeting. Action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting and without action by the Board of Directors if the action is taken by all the shareholders entitled to vote on the action. The action shall be evidenced by one or more written consents describing the action taken, signed by all the shareholders entitled to vote on the action and delivered to the Secretary for inclusion in the minutes or filing with the corporate records. The form of written consent may include an electronic transmission. Action taken by unanimous consent shall be effective according to its terms when all consents are in the possession of the Company unless the consent specifies a different effective date, in which event the action taken shall be effective as of the date specified therein provided that the consent states the date of execution by each shareholder. A shareholder may withdraw a consent only by delivering a written notice of withdrawal to the Company prior to the time that all consents are in the possession of the Company. If not otherwise fixed pursuant to the provisions of Section 1.5, the record date for determining shareholders entitled to take action without a meeting is the date the first shareholder signs the consent described in the preceding paragraph. 1.10 Inspectors of Election. The Chairman of the meeting may appoint one or more inspectors of election to determine the qualifications of voters, the validity of proxies and the results of ballots. ARTICLE II DIRECTORS 2.1 General Powers. The Company shall have a Board of Directors. All corporate powers shall be exercised by or under the authority of, and the business and affairs of the Company managed under the direction of, its Board of Directors, subject to any limitation set forth in the Articles of Incorporation, and so 3 far as this delegation of authority is not inconsistent with the laws of the Commonwealth of Virginia, with the Articles of Incorporation or with these Bylaws. 2.2 Number, Term and Election. The number of directors of the Company may be fixed or changed from time to time by resolution of the Board of Directors but shall not be less than one (1) nor more than ten (10) directors. A decrease in the number of directors shall not shorten the term of any incumbent director. Each director shall hold office until his or her death, resignation, retirement or removal or until his or her successor is elected. 2.3 Removal; Vacancies. The shareholders may remove one or more directors, with or without cause, if the number of votes cast for such removal constitutes a majority of the votes entitled to be cast at an election of directors. A director may be removed by the shareholders only at a meeting called for the purpose of removing him or her and the meeting notice must state that the purpose, or one of the purposes of the meeting, is removal of the director. A vacancy on the Board of Directors, including a vacancy resulting from the removal of a director or an increase in the number of directors, may be filled by (i) the shareholders, (ii) the Board of Directors or (iii) the affirmative vote of a majority of the remaining directors though less than a quorum of the Board of Directors and may, in the case of a resignation that will become effective at a specified later date, be filled before the vacancy occurs, but the new director may not take office until the vacancy occurs. 2.4 Annual and Regular Meetings. An annual meeting of the Board of Directors, which shall be considered a regular meeting, shall be held immediately following each annual meeting of shareholders for the purpose of electing officers and carrying on such other business as may properly come before the meeting. The Board of Directors may also adopt a schedule of additional meetings which shall be considered regular meetings. Regular meetings shall be held at such times and at such places, within or without the Commonwealth of Virginia, as the Chairman, the President or the Board of Directors shall designate from time to time. If no place is designated, regular meetings shall be held at the principal office of the Company. 2.5 Special Meetings. Special meetings of the Board of Directors may be called by the Chairman, the President or a majority of the directors of the Company and shall be held at such times and at such places, within or without the Commonwealth of Virginia, as the person or persons calling the meetings shall designate. If no such place is designated in the notice of a meeting, it shall be held at the principal office of the Company. 2.6 Notice of Meetings. No notice need be given of regular meetings of the Board of Directors. Notices of special meetings of the Board of Directors shall be given to each director in person or delivered to his or her residence or business address (or such other place as he may have directed in writing) not less than twenty-four (24) hours before the meeting by mail, electronic mail, messenger, telecopy facsimile or other means of written communication or by telephoning such notice to him or her. Any such notice shall be given by the Secretary, the directors or the officer calling the meeting and shall set forth the time and place of the meeting and state the purpose for which it is called. 2.7 Waiver of Notice; Attendance at Meeting. A director may waive any notice required by law, the Articles of Incorporation or these Bylaws before or after the date and time stated in the notice and such waiver shall be equivalent to the giving of such notice. Except as provided in the next paragraph of this section, the waiver shall be in writing or reproduced from an electronic transmission, signed by the director entitled to the notice and filed with the minutes or corporate records. A director's attendance at or participation in a meeting waives any required notice to him or her of the meeting unless the director, at the beginning of the meeting or promptly upon his or her arrival, objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting. 4 2.8 Quorum; Voting. A majority of the number of directors fixed in accordance with these Bylaws shall constitute a quorum for the transaction of business at a meeting of the Board of Directors. If a quorum is present when a vote is taken, the affirmative vote of a majority of the directors present is the act of the Board of Directors except as otherwise provided by law, the Articles of Incorporation or these Bylaws. A director who is present at a meeting of the Board of Directors or a committee of the Board of Directors when corporate action is taken is deemed to have assented to the action taken unless (i) he or she objects, at the beginning of the meeting or promptly upon his or her arrival, to holding it or transacting specified business at the meeting or (ii) he or she votes against or abstains from the action taken. 2.9 Telephonic Meetings. The Board of Directors may permit any or all directors to participate in a regular or special meeting by or conduct the meeting through the use of any means of communication by which all directors participating may simultaneously hear each other during the meeting. A director participating in a meeting by this means is deemed to be present in person at the meeting. 2.10 Action Without Meeting. Action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if the action is taken by all members of the Board. The action shall be evidenced by one or more written consents stating the action taken, signed by each director either before or after the action is taken and included in the minutes or filed with the corporate records. The form of written consent may include an electronic transmission. Action taken under this section shall be effective when the last director signs the consent unless the consent specifies a different effective date, in which event the action taken is effective as of the date specified therein, provided the consent states the date of execution by each director. 2.11 Compensation. The Board of Directors may fix the compensation of directors and may provide for the payment of all expenses incurred by them in attending meetings of the Board of Directors. ARTICLE III OFFICERS 3.1 Officers. The officers of the Company shall be a President and a Secretary and, in the discretion of the Board of Directors, a Chairman of the Board of Directors, one or more Vice-Presidents, a Treasurer and such other officers as may be deemed necessary or advisable to carry on the business of the Company. Any two or more offices may be held by the same person unless otherwise required by law. The Board of Directors may designate the Chief Executive Officer. 3.2 Election; Term. Officers shall be elected at the annual meeting of the Board of Directors and may be elected at such other time or times as the Board of Directors shall determine. They shall hold office, unless removed, until the next annual meeting of the Board of Directors or until their successors are elected. Any officer may resign at any time upon written notice to the Board of Directors and such resignation shall be effective when notice is delivered unless the notice specifies a later effective date. Vacancies among the officers shall be filled by a vote of the Board of Directors. 3.3 Removal of Officers. The Board of Directors may remove any officer at any time, with or without cause. 3.4 Duties of Officers. The President and the other officers shall have such powers and duties as generally pertain to their respective offices as well as such powers and duties as may be delegated to them from time to time by the Board of Directors. The President and each Vice President shall have authority to sign certificates for shares of stock, bonds, deeds and all manner of contracts necessary, expedient in or incident to the conduct of the Company's business and to delegate such authority, to a maximum commitment level of $10 million and in accordance with the Company's policies and procedures, in such manner as may be approved by the President. 5 ARTICLE IV SHARE CERTIFICATES 4.1 Entitlement. Every shareholder shall be entitled to a certificate or certificates for shares of record owned by him or her in such form as may be prescribed by the Board of Directors. Such certificates shall be signed by the President or a Vice President and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary. 4.2 Authorization to Issue. Notwithstanding the foregoing, the Board of Directors may authorize the issue of some or all of the shares of any or all of its classes or series without certificates. Within a reasonable time after the issue or transfer of shares without certificates, the Company shall send the shareholder a written statement of the information required on certificates by the Virginia Stock Corporation Act or other applicable law. 4.3 Transfer of Shares. Shares may be transferred by delivery of the certificate accompanied either by an assignment in writing on the back of the certificate or by a written power of attorney to sell, assign and transfer the same on the books of the Company, signed by the person appearing from the certificate to be the owner of the shares represented thereby, and shall be transferable on the books of the Company upon surrender thereof so assigned or endorsed. The person registered on the books of the Company as the owner of any shares shall be entitled exclusively, as the owner of such shares, to receive dividends and to vote in respect thereof. ARTICLE V MISCELLANEOUS PROVISIONS 5.1 Voting of Shares Held. Unless the Board of Directors shall otherwise provide, the Chairman of the Board of Directors, the President, any Vice President, or the Secretary may from time to time appoint one or more attorneys-in-fact or agents of the Company, in the name and on behalf of the Company, to cast the votes that the Company may be entitled to cast as a shareholder or otherwise in any other corporation, any of whose stock or securities of which may be held by the Company, at the meeting of the holders of any such other corporation, or to consent in writing to any action by any such other corporation, and may instruct the person or persons so appointed as to the manner of casting such votes or giving such consent, and may execute or cause to be executed on behalf of the Company such written proxies, consents, waivers of other instruments as he or she may deem necessary or proper; or either the Chairman of the Board of Directors, the President or the Secretary may himself or herself attend any meeting of the shareholders of any such other corporation and thereat vote or exercise any or all other powers of the Company as the shareholder of such other corporation. 5.2 Corporate Seal. In the discretion of the officers, the Company may have a corporate seal. If created, the corporate seal of the Company shall consist of a flat-faced circular die, of which there may be any number of counterparts, on which there shall be engraved the word "Seal" and the name of the Company. 5.3 Fiscal Year. The fiscal year of the Company shall be determined in the discretion of the Board of Directors, but in the absence of any such determination it shall be the calendar year. 5.4 Amendments. These Bylaws may be amended or repealed, and new Bylaws may be made at any regular or special meeting of the Board of Directors. Bylaws made by the Board of Directors may be repealed or changed and new Bylaws may be made by the shareholders, and the shareholders may prescribe that any Bylaw made by them shall not be altered, amended or repealed by the Board of Directors. 6 EXHIBIT B-6 CERTIFICATE OF INCORPORATION OF DOMINION RETAIL, INC. AS AMENDED SEPTEMBER 5, 2000 CERTIFICATE OF INCORPORATION OF DOMINION RETAIL, INC. FIRST. The name of this corporation shall be: DOMINION RETAIL, INC. SECOND. Its registered office in the State of Delaware is to be located at 1013 Centre Road, in the City of Wilmington, County of New Castle and its registered agent at such address is CORPORATION SERVICE COMPANY. THIRD. The purpose or purposes of the corporation shall be: To engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. FOURTH. The total number of shares of stock which this corporation is authorized to issue is: Five Thousand (5,000) shares with a par value of Ten Thousand Dollars ($10,000.00) per share, amounting to Fifty Million Dollars ($50,000,000.00). FIFTH. The name and address of the incorporator is as follows: Debra M. Carll Corporation Service Company 1013 Centre Road Wilmington, DE 19805 SIXTH. The Board of Directors shall have the power to adopt, amend or repeal the by-laws. SEVENTH. No director shall be personally liable to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty by such director as a director. Notwithstanding the foregoing sentence, a director shall be liable to the extent provided by applicable law, (i) for breach of the director's duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) pursuant to Section 174 of the Delaware General Corporation Law or (iv) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article Seventh shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment. IN WITNESS WHEREOF, the undersigned, being the incorporator hereinbefore named, has executed, signed and acknowledged this certificate of incorporation this Twenty-ninth day of January, A.D., 1997. /s/ Debra M. Carll Debra M. Carll Incorporator 2 EXHIBIT B-7 DOMINION RETAIL, INC. BY LAWS AS AMENDED EFFECTIVE SEPTEMBER 5, 2000 DOMINION RETAIL, INC. * * * * * B Y - L A W S * * * * * ARTICLE I OFFICES Section 1. The registered office shall be in the City of Wilmington, County of New Castle, State of Delaware. Section 2. The corporation may also have offices at such other places both within and without the State of Delaware as the board of directors may from time to time determine or the business of the corporation may require. ARTICLE II MEETINGS OF STOCKHOLDERS Section 1. All meetings of the stockholders for the election of directors shall be held in the City of Pittsburgh, State of Pennsylvania, at such place as may be fixed from time to time by the board of directors, or at such other place either within or without the State of Delaware as shall be designated from time to time by the board of directors and stated in the notice of the meeting. Meetings of stockholders for any other purpose may be held at such time and place, within or without the State of Delaware, as shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof. Section 2. Annual meetings of stockholders, commencing with the year 1997, shall be held on the third Tuesday of May if not a legal holiday, and if a legal holiday, then on the next secular day following, at 10:00 a.m., or at such other date and time as shall be designated from time to time by the board of directors and stated in the notice of the meeting, at which they shall elect by a plurality vote a board of directors, and transact such other business as may properly be brought before the meeting. Section 3. Written notice of the annual meeting stating the place, date and hour of the meeting shall be given to each stockholder entitled to vote at such meeting not less than ten nor more than sixty days before the date of the meeting. Section 4. The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. Section 5. Special meetings of the stockholders, for any purpose or purposes, unless otherwise prescribed by statute or by the certificate of incorporation, may be called by the president and shall be called by the president or secretary at the request in writing of a majority of the board of directors, or at the request in writing of stockholders owning a majority in amount of the entire capital stock of the corporation issued and outstanding and entitled to vote. Such request shall state the purpose or purposes of the proposed meeting. 2 Section 6. Written notice of a special meeting stating the place, date and hour of the meeting and the purpose or purposes for which the meeting is called, shall be given not less than ten nor more than sixty days before the date of the meeting, to each stockholder entitled to vote at such meeting. Section 7. Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice. Section 8. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business except as otherwise provided by statute or by the certificate of incorporation. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the stockholders entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present or represented. At such adjourned meeting at which a quorum shall be present or represented any business may be transacted which might have been transacted at the meeting as originally notified. If the adjournment is for more than thirty days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. Section 9. When a quorum is present at any meeting, the vote of the holders of a majority of the stock having voting power present in person or represented by proxy shall decide any question brought before such meeting, unless the question is one upon which by express provision of the statutes or of the certificate of incorporation, a different vote is required in which case such express provision shall govern and control the decision of such question. Section 10. Unless otherwise provided in the certificate of incorporation each stockholder shall at every meeting of the stockholders be entitled to one vote in person or by proxy for each share of the capital stock having voting power held by such stockholder, but no proxy shall be voted on after three years from its date, unless the proxy provides for a longer period. Section 11. Unless otherwise provided in the certificate of incorporation, any action required to be taken at any annual or special meeting of stockholders of the corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing. ARTICLE III DIRECTORS Section 1. The number of directors which shall constitute the whole board shall be not less than one nor more than fifteen. The first board shall consist of three directors. Thereafter, within the limits above specified, the number of directors shall be determined by resolution of the board of directors or by the stockholders at the annual meeting. The directors shall be elected at the annual meeting of the stockholders, except as provided in Section 2 of this Article, and each director elected shall hold office until his successor is elected and qualified. Directors need not be stockholders. Section 2. Vacancies and newly created director-ships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and the directors so chosen shall hold office until the next annual election and until their successors are duly elected and shall qualify, unless sooner displaced. If there are no directors in office, 3 then an election of directors may be held in the manner provided by statute. If, at the time of filling any vacancy or any newly created directorship, the directors then in office shall constitute less than a majority of the whole board (as constituted immediately prior to any such increase), the Court of Chancery may, upon application of any stockholder or stockholders holding at least ten percent of the total number of the shares at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office. Section 3. The business of the corporation shall be managed by or under the direction of its board of directors which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute or by the certificate of incorporation or by these by-laws directed or required to be exercised or done by the stockholders. MEETINGS OF THE BOARD OF DIRECTORS Section 4. The board of directors of the corporation may hold meetings, both regular and special, either within or without the State of Delaware. Section 5. The first meeting of each newly elected board of directors shall be held at such time and place as shall be fixed by the vote of the stockholders at the annual meeting and no notice of such meeting shall be necessary to the newly elected directors in order legally to constitute the meeting, provided a quorum shall be present. In the event of the failure of the stockholders to fix the time or place of such first meeting of the newly elected board of directors, or in the event such meeting is not held at the time and place so fixed by the stockholders, the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings of the board of directors, or as shall be specified in a written waiver signed by all of the directors Section 6. Regular meetings of the board of directors may be held without notice at such time and at such place as shall from time to time be determined by the board. Section 7. Special meetings of the board may be called by the president on two days' notice to each director, either personally or by mail or by telegram; special meetings shall be called by the president or secretary in like manner and on like notice on the written request of two directors unless the board consists of only one director; in which case special meetings shall be called by the president or secretary in like manner and on like notice on the written request of the sole director. Section 8. At all meetings of the board one-third of the directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the board of directors except as may be otherwise specifically provided by statute or by the certificate of incorporation. If a quorum shall not be present at any meeting of the board of directors the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. Section 9. Unless otherwise restricted by the certificate of incorporation or these by-laws, any action required or permitted to be taken at any meeting of the board of directors or of any committee thereof may be taken without a meeting, if all members of the board or committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the board or committee. Section 10. Unless otherwise restricted by the certificate of incorporation or these by-laws, members of the board of directors, or any committee designated by the board of directors, may participate in a meeting of the board of directors, or any committee, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting. 4 COMMITTEES OF DIRECTORS Section 11. The board of directors may, by resolution passed by a majority of the whole board, designate one or more committees, each committee to consist of one or more of the directors of the corporation. The board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the board of directors, shall have and may exercise all the powers and authority of the board of directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to amending the certificate of incorporation, (except that a committee may, to the extent authorized in the resolution or resolutions providing for the issuance of shares of stock adopted by the board of directors as provided in Section 151(a) fix any of the preferences or rights of such shares relating to dividends, redemption, dissolution, any distribution of assets of the corporation or the conversion into, or the exchange of such shares for, shares of any other class or classes or any other series of the same or any other class or classes of stock of the corporation) adopting an agreement of merger or consolidation, recommending to the stockholders the sale, lease or exchange of all or substantially all of the corporation's property and assets, recommending to the stockholders a dissolution of the corporation or a revocation of a dissolution, or amending the by-laws of the corporation; and, unless the resolution or the certificate of incorporation expressly so provide, no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock or to adopt a certificate of ownership and merger. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the board of directors. Section 12. Each committee shall keep regular minutes of its meetings and report the same to the board of directors when required. COMPENSATION OF DIRECTORS Section 13. Unless otherwise restricted by the certificate of incorporation or these by-laws, the board of directors shall have the authority to fix the compensation of directors. The directors may be paid their expenses, if any, of attendance at each meeting of the board of directors and may be paid a fixed sum for attendance at each meeting of the board of directors or a stated salary as director. No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor. Members of special or standing committees may be allowed like compensation for attending committee meetings. REMOVAL OF DIRECTORS Section 14. Unless otherwise restricted by the certificate of incorporation or by-laws, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of shares entitled to vote at an election of directors. ARTICLE IV NOTICES Section 1. Whenever, under the provisions of the statutes or of the certificate of incorporation or of these by-laws, notice is required to be given to any director or stockholder, it shall not be construed to mean personal 5 notice, but such notice may be given in writing, by mail, addressed to such director or stockholder, at his address as it appears on the records of the corporation, with postage thereon prepaid, and such notice shall be deemed to be given at the time when the same shall be deposited in the United States mail. Notice to directors may also be given by telegram. Section 2. Whenever any notice is required to be given under the provisions of the statutes or of the certificate of incorporation or of these by-laws, a waiver thereof in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent thereto. ARTICLE V OFFICERS Section 1. The officers of the corporation shall be chosen by the board of directors and shall be a president, a vice-president, a secretary and a treasurer. The board of directors may also choose additional vice-presidents, and one or more assistant secretaries and assistant treasurers. Any number of offices may be held by the same person, unless the certificate of incorporation or these by-laws otherwise provide. Section 2. The board of directors at its first meeting after each annual meeting of stockholders shall choose a president, one or more vice-presidents, a secretary and a treasurer. Section 3. The board of directors may appoint such other officers and agents as it shall deem necessary who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the board. Section 4. The salaries of all officers and agents of the corporation shall be fixed by the board of directors. Section 5. The officers of the corporation shall hold office until their successors are chosen and qualify. Any officer elected or appointed by the board of directors may be removed at any time by the affirmative vote of a majority of the board of directors. Any vacancy occurring in any office of the corporation shall be filled by the board of directors. THE PRESIDENT Section 6. The president shall be the chief executive officer of the corporation, shall preside at all meetings of the stockholders and the board of directors, shall have general and active management of the business of the corporation and shall see that all orders and resolutions of the board of directors are carried into effect. Section 7. He shall execute bonds, mortgages and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the board of directors to some other officer or agent of the corporation. THE VICE-PRESIDENTS Section 8. In the absence of the president or in the event of his inability or refusal to act, the vice-president (or in the event there be more than one vice-president, the vice-presidents in the order designated by the directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the president, and when so acting, shall have all the powers of and be subject to all the restrictions upon the president. The vice-presidents shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. 6 THE SECRETARY AND ASSISTANT SECRETARIES Section 9. The secretary shall attend all meetings of the board of directors and all meetings of the stockholders and record all the proceedings of the meetings of the corporation and of the board of directors in a book to be kept for that purpose and shall perform like duties for the standing committees when required. He shall give, or cause to be given, notice of all meetings of the stockholders and special meetings of the board of directors, and shall perform such other duties as may be prescribed by the board of directors or president, under whose supervision he shall be. He shall have custody of the corporate seal of the corporation and he, or an assistant secretary, shall have authority to affix the same to any instrument requiring it and when so affixed, it may be attested by his signature or by the signature of such assistant secretary. The board of directors may give general authority to any other officer to affix the seal of the corporation and to attest the affixing by his signature. Section 10. The assistant secretary, or if there be more than one, the assistant secretaries in the order determined by the board of directors (or if there be no such determination, then in the order of their election) shall, in the absence of the secretary or in the event of his inability or refusal to act, perform the duties and exercise the powers of the secretary and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. THE TREASURER AND ASSISTANT TREASURERS Section 11. The treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the board of directors. Section 12. He shall disburse the funds of the corporation as may be ordered by the board of directors, taking proper vouchers for such disbursements, and shall render to the president and the board of directors, at its regular meetings, or when the board of directors so requires, an account of all his transactions as treasurer and of the financial condition of the corporation. Section 13. If required by the board of directors, he shall give the corporation a bond (which shall be renewed every six years) in such sum and with such surety or sureties as shall be satisfactory to the board of directors for the faithful performance of the duties of his office and for the restoration to the corporation, in case of his death, resignation, retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belonging to the corporation. Section 14. The assistant treasurer, or if there shall be more than one, the assistant treasurers in the order determined by the board of directors (or if there be no such determination, then in the order of their election) shall, in the absence of the treasurer or in the event of his inability or refusal to act, perform the duties and exercise the powers of the treasurer and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. ARTICLE VI CERTIFICATES FOR SHARES Section 1. The shares of the corporation shall be represented by a certificate or shall be uncertificated. Certificates shall be signed by, or in the name of the corporation by, the president or a vice-president and the treasurer or an assistant treasurer, or the secretary or an assistant secretary of the corporation. Within a reasonable time after the issuance or transfer of uncertificated stock, the corporation shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on 7 certificates pursuant to Sections 151, 156, 202 (a) or 218 (a) or a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Section 2. Any of or all the signatures on a certificate may be facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if he were such officer, transfer agent or registrar at the date of issue. LOST CERTIFICATES Section 3. The board of directors may direct a new certificate or certificates or uncertificated shares to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed. When authorizing such issue of a new certificate or certificates or uncertificated shares, the board of directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or certificates, or his legal representative, to advertise the same in such manner as it shall require and/or to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen or destroyed. TRANSFER OF STOCK Section 4. Upon surrender to the corporation or the transfer agent of the corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer, it shall be the duty of the corporation to issue a new certificate to the person entitled thereto, cancel the old certificate and record the transaction upon its books. Upon receipt of proper transfer instructions from the registered owner of uncertificated shares such uncertificated shares shall be cancelled and issuance of new equivalent uncertificated shares or certificated shares shall be made to the person entitled thereto and the transaction shall be recorded upon the books of the corporation. FIXING RECORD DATE Section 5. In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the board of directors may fix, in advance, a record date, which shall not be more than sixty nor less than ten days before the date of such meeting, nor more than sixty days prior to any other action. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting: provided, however, that the board of directors may fix a new record date for the adjourned meeting. REGISTERED STOCKHOLDERS Section 6. The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any 8 equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware. ARTICLE VII GENERAL PROVISIONS DIVIDENDS Section 1. Dividends upon the capital stock of the corporation, subject to the provisions of the certificate of incorporation, if any, may be declared by the board of directors at any regular or special meeting, pursuant to law. Dividends may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the certificate of incorporation. Section 2. Before payment of any dividend, there may be set aside out of any funds of the corporation available for dividends such sum or sums as the directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the corporation, or for such other purpose as the directors shall think conducive to the interest of the corporation, and the directors may modify or abolish any such reserve in the manner in which it was created. ANNUAL STATEMENT Section 3. The board of directors shall present at each annual meeting, and at any special meeting of the stockholders when called for by vote of the stockholders, a full and clear statement of the business and condition of the corporation. CHECKS Section 4. All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the board of directors may from time to time designate. FISCAL YEAR Section 5. The fiscal year of the corporation shall be the calendar year unless fixed otherwise by resolution of the board of directors. SEAL Section 6. The corporate seal shall have inscribed thereon the name of the corporation, the year of its organization and the words "Corporate Seal, Delaware". The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise. INDEMNIFICATION Section 7. Each person who at any time is, or shall have been a director or officer of the corporation, or serves or has served as a director, officer, fiduciary or other representative of another company, partnership, joint venture, trust, association or other enterprise (including any employee benefit plan), where such service was specifically requested by the corporation in accordance with the fourth paragraph of this Section 7, or the established guidelines for participation in outside positions (such service hereinafter being referred to as 9 "Outside Service"), and is threatened to be or is made a party to any threatened, pending, or completed claim, action, suit or Proceeding, whether civil, criminal, administrative or investigative ("Proceeding"), by reason of the fact that he is, or was, a director, officer, fiduciary or other representative of such other enterprise, shall be indemnified against expenses (including attorney's fees), judgments, fines and amounts paid in settlement ("Loss") actually and reasonably incurred by him in connection with any such Proceeding to the full extent permitted under the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended, (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than said law permitted the corporation to provide prior to such amendment). The corporation shall indemnify any person seeking indemnity in connection with any Proceeding (or part thereof) initiated by such person only if such Proceeding (or part thereof) initiated by such person was authorized by the board of directors of the corporation. With respect to any Loss arising from Outside Service, the corporation shall provide such indemnification only if and to the extent that (i) such other company, partnership, joint venture, trust, association or enterprise is not legally permitted or financially able to provide such indemnification, and (ii) such Loss is not paid pursuant to any insurance policy other than any insurance policy maintained by the corporation. The right to be indemnified pursuant hereto shall include the right to be paid by the corporation for expenses, including attorney's fees, incurred in defending any such Proceeding in advance of its final disposition; provided, however, that the payment of such expenses in advance of the final disposition of such Proceeding shall be made only upon delivery to the corporation of an undertaking, by or on behalf of such director, officer, fiduciary or other representative in which such director, officer, fiduciary or other representative agrees to repay all amounts so advanced if it should be determined ultimately that such director, officer, fiduciary or other representative is not entitled to be indemnified under applicable law. The right to be indemnified or to the reimbursement or advancement of expenses pursuant hereto shall in no way be exclusive of any other rights of indemnification or advancement to which any such director, officer or employee may be entitled, under any by-law, agreement, vote of stockholders or disinterested directors or otherwise both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer or employee and shall inure to the benefit of the heirs, executors and administrators of such person. Any person who is serving or has served as a director, officer, or fiduciary of (i) another corporation of which a majority of the shares entitled to vote in the election of its directors is held by the corporation at the time of such service, or (ii) any employee benefit plan of the corporation or of any corporation referred to in the foregoing (i), shall be deemed to be doing or have done so at the request of the corporation. ARTICLE VIII AMENDMENTS Section 1. These by-laws may be altered, amended or repealed or new by-laws may be adopted by the stockholders or by the board of directors, when such power is conferred upon the board of directors by the certificate of incorporation at any regular meeting of the stockholders or of the board of directors or at any special meeting of the stockholders or of the board of directors if notice of such alteration, amendment, repeal or adoption of new by-laws be contained in the notice of such special meeting. If the power to adopt, amend or repeal by-laws is conferred upon the board of directors by the certificate of incorporation it shall not divest or limit the power of the stockholders to adopt, amend or repeal by-laws. 10 EX-99.2 3 dex992.txt EXHIBIT C AS REFLECTED IN THE U5S EXIND. EXHIBIT C The Indentures, Supplemental Indentures and Securities Resolutions between the Registrant and applicable subsidiaries and its debenture Trustees, as listed below, are incorporated by reference to material previously filed with the Commission as indicated: Dominion Resources, Inc. - ------------------------ Senior Indenture, dated June 1, 2000, between Dominion and The Chase Manhattan Bank, as Trustee (Exhibit 4 (iii), Form S-3, Registration Statement, File No. 333-93187, incorporated by reference); First Supplemental Indenture, dated June 1, 2000 (Exhibit 4.2, Form 8-K, dated June 21, 2000, File No. 1-8489, incorporated by reference); Second Supplemental Indenture, dated July 1, 2000 (Exhibit 4.2, Form 8-K, dated July 11, 2000, File No. 1-8489, incorporated by reference); Third Supplemental Indenture, dated July 1, 2000 (Exhibit 4.3, Form 8-K dated July 11, 2000, incorporated by reference); Fourth Supplemental Indenture and Fifth Supplemental Indenture dated September 1, 2000 (Exhibit 4.2, Form 8-K, dated September 8, 2000, incorporated by reference); Sixth Supplemental Indenture, dated September 1, 2000 (Exhibit 4.3, Form 8-K, dated September 8, 2000, incorporated by reference); and Seventh Supplemental Indenture, dated October 1, 2000 (Exhibit 4.2, Form 8-K, dated October 11, 2000, incorporated by reference). Eighth Supplemental Indenture, dated January 1, 2001 (Exhibit 4.2, Form 8-K, dated January 23, 2001, incorporated by reference). Indenture, Junior Subordinated Debentures, dated December 1, 1997, between Dominion Resources, Inc. and The Chase Manhattan Bank as supplemented by a First Supplemental Indenture, dated December 1, 1997 (Exhibit 4.1 and Exhibit 4.2 to Form S-4 Registration Statement, File No. 333-50653, as filed on April 21, 1998, incorporated by reference); Second and Third Supplemental Indentures, dated January 1, 2001, (Exhibits 4.6 and 4.13, Form 8-K, dated January 9, 2001, incorporated by reference). Consolidated Natural Gas Company - -------------------------------- Indenture, dated as of May 1, 1971, between Consolidated Natural Gas Company and The Chase Manhattan Bank (formerly Manufacturers Hanover Trust Company)(Exhibit (5) to Certificate of Notification at Commission File No. 70-5012); Fifteenth Supplemental Indenture dated as of October 1, 1989(Exhibit (5) to Certificate of Notification at Commission File No. 70-7651); Seventeenth Supplemental Indenture dated as of August 1, 1993 (Exhibit (4) to Certificate of Notification at Commission File No. 70-8167); Eighteenth Supplemental Indenture dated as of December 1, 1993 (Exhibit (4) to Certificate of Notification at Commission File No. 70-8167) Nineteenth Supplemental Indenture dated as of January 28, 2000(Exhibit (4A)(iii), Form 10-K for the fiscal year ended December 31, 1999, File No. 1-3196, incorporated by reference); Twentieth Supplemental Indenture dated as of March 19, 2001 (filed herewith). Indenture, dated as of April 1, 1995, between Consolidated Natural Gas Company and United States Trust Company of New York (Exhibit (4) to Certificate of Notification at Commission File No. 70-8107); First Supplemental Indenture dated January 28, 2000 (Exhibit (4 A)(ii), Form 10-K for the fiscal year ended December 31, 1999, File No. 1-3196, incorporated by reference). Securities Resolution No. 1 effective as of April 12, 1995(Exhibit 2 to Form 8-A filed April 21, 1995 under File No. 1-3196 and relating to the 7 3/8% Debentures Due April 1, 2005) Securities Resolution No. 2 effective as of October 16, 1996 (Exhibit 2 to Form 8-A filed October 18, 1996 under file No. 1-3196 and relating to the 6 7/8% Debentures Due October 15, 2026) Securities Resolution No. 3 effective as of December 10, 1996(Exhibit 2 to Form 8-A filed December 12, 1996 under file No. 1-3196 and relating to the 6 5/8% Debentures Due December 1, 2008) Securities Resolution No. 4 effective as of December 9, 1997(Exhibit 2 to Form 8-A filed December 12, 1997 under file No.1-3196 and relating to the 6.80% Debentures Due December 15, 2027) Securities Resolution No. 5 effective as of October 20, 1998(Exhibit 2 to Form 8-A filed October 22, 1998 under file No. 1-3196 and relating to the 6% Debentures Due October 15, 2010) Securities Resolution No. 6 effective as of September 21, 1999(Exhibit 4A(iv), Form 10-K for the fiscal year ended December 31, 1999, File No. 1-3196, and relating to the 7 1/4% Notes Due October 1, 2004). Virginia Electric and Power Company - ----------------------------------- Indenture of Mortgage of Virginia Electric and Power Company, dated November 1, 1935, as supplemented and modified by fifty- eight Supplemental Indentures (Exhibit 4(ii), Form 10-K for the fiscal year ended December 31, 1985, File No. 1-2255, incorporated by reference); Sixty-Seventh Supplemental Indenture (Exhibit 4(i), Form 8-K, dated April 2, 1991, File No. 1-2255, incorporated by reference); Seventieth Supplemental Indenture, (Exhibit 4(iii), Form 8-K, dated February 25, 1992, File No. 1-2255, incorporated by reference); Seventy-First Supplemental Indenture (Exhibit 4(i)) and Seventy-Second Supplemental Indenture, (Exhibit 4(ii), Form 8-K, dated July 7, 1992, File No. 1-2255, incorporated by reference); Seventy- Third Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated August 6, 1992, File No. 1-2255, incorporated by reference); Seventy-Fourth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated February 10, 1993, File No. 1-2255, incorporated by reference); Seventy-Fifth Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated April 6, 1993, File No. 1-2255, incorporated by reference); Seventy-Sixth Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated April 21, 1993, File No. 1-2255, incorporated by reference); Seventy-Seventh Supplemental Indenture,(Exhibit 4(i), Form 8-K, dated June 8, 1993, File No. 1-2255, incorporated by reference); Seventy-Eighth Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated August 10, 1993, File No. 1-2255, incorporated by reference); Seventy-Ninth Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated August 10, 1993, File No. 1-2255, incorporated by reference); Eightieth Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated October 12, 1993, File No. 1-2255, incorporated by reference); Eighty-First Supplemental Indenture, (Exhibit 4(iii), Form 10-K for the fiscal year ended December 31, 1993, File No. 1-2255, incorporated by reference); Eighty-Second Supplemental Indenture, (Exhibit 4(i), Form 8-K, dated January 18, 1994, File No. 1-2255, incorporated by reference); Eighty- Third Supplemental Indenture (Exhibit 4(i), Form 8-K, dated October 19, 1994, File No. 1-2255, incorporated by reference); Eighty-Fourth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated March 23, 1995, File No. 1-2255, incorporated by reference, and Eighty-Fifth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated February 20, 1997, File No. 1-2255, incorporated by reference). Indenture, dated as of June 1, 1986, between Virginia Electric and Power Company and The Chase Manhattan Bank (formerly Chemical Bank) (Exhibit 4(v), Form 10-K for the fiscal year ended December 31, 1993, File No. 1-2255, incorporated by reference). Indenture, dated April 1, 1988, between Virginia Electric and Power Company and The Chase Manhattan Bank (formerly ChemicalBank), as supplemented and modified by a First Supplemental Indenture, dated August 1, 1989, (Exhibit 4(vi), Form 10-K for the fiscal year ended December 31, 1993, File No. 1-2255, incorporated by reference); Second Supplemental Indenture, dated May 1, 1999 (Exhibit 4.2, Form S-3, Registration Statement, File No. 333-7615, as filed on April 13, 1999, incorporated by reference). Subordinated Note Indenture, dated as of August 1, 1995 between Virginia Electric and Power Company and The Chase Manhattan Bank (formerly Chemical Bank), as Trustee, as supplemented (Exhibit 4(a), Form S-3 Registration Statement File No. 333- 20561 as filed on January 28, 1997, incorporated by reference). Form of Senior Indenture, dated as of June 1, 1998, between Virginia Electric and Power Company and The Chase Manhattan Bank as supplemented by the First Supplemental Indenture(Exhibit 4.2, Form 8-K, dated June 12, 1998, File No. 1-2255,incorporated by reference); Second Supplemental Indenture (Exhibit 4.2, Form 8-K, dated June 3, 1999, File No.1-2255, incorporated by reference) and Third Supplemental Indenture(Exhibit 4.2, Form 8-K, dated October 27, 1999, File No. 1-2255, incorporated by reference). EX-99.3 4 dex993.txt EXHIBIT D AS REFLECTED IN THE U5S EXIND. EXHIBIT D CONSOLIDATED FEDERAL INCOME TAX ------------------------------- ALLOCATION AGREEMENT AMONG MEMBERS OF THE ----------------------------------------- DOMINION RESOURCES, INC. AFFILIATED GROUP ----------------------------------------- This Agreement made as of this 30/th/ day of April, 2000 by and among Dominion Resources, Inc., a Virginia corporation ('Parent') and each of its undersigned Subsidiaries for taxable years ending after January 28, 2000. WITNESSETH: ---------- WHEREAS, Parent and the undersigned Subsidiaries included in Appendix A are members of an affiliated group of corporations ('the Affiliated Group") as defined in section 1504(a) of the Internal Revenue Code of 1986, as amended ("the Code"); and WHEREAS, Parent will file a United States consolidated federal income tax return ("Consolidated Return") for the Affiliated Group for the taxable year ended December 31, 2000 and will file a Consolidated Return for all subsequent taxable periods for which one or more of the Subsidiaries is a member of the Affiliated Group; and WHEREAS, it is the intent and desire of the parties hereto that a method be established for allocating the Consolidated Return tax liability of the Parent and the undersigned Subsidiaries to such Parent and Subsidiaries, for reimbursing Parent for payment of such tax liability, and to provide for the allocation and payment of any refund arising from current year tax losses or a carryback or carryforward of losses or tax credits to subsequent or prior taxable years, NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows: 1. Consolidated Return Election. A Consolidated Return shall be filed ---------------------------- by Parent for each taxable period in respect of which this Agreement is in effect and for which Parent and one or more of the Subsidiaries are required or permitted to file a Consolidated Return. With respect to Parent and each Subsidiary, any period for which such Subsidiary is or may be included in a Consolidated Return filed by Parent is referred to in this Agreement as a "Consolidated Return Year." Each Subsidiary hereby irrevocably designates Parent as its agent for the purpose of taking any and all action necessary or incidental to the filing of any Consolidated Return, and further agrees to furnish Parent with any and all information and to take any and all action as Parent may reasonably request that is necessary or appropriate for the proper filing of a Consolidated Return or for implementing the provisions of this Agreement. Each Subsidiary agrees that it will join in the Consolidated Returns to be filed by Parent to the extent that such Subsidiary is required or permitted to do so by the Code. 2. Liability for Consolidated Federal Income Tax Liability. As between ------------------------------------------------------- the parties hereto Parent agrees to pay the United States consolidated federal income tax liability of the Affiliated Group for Consolidated Return Years and each Subsidiary agrees to make such payments to Parent as shall be required pursuant to Sections 3 and 4 hereof. 3. Allocation of Consolidated Federal Income Tax Liability. (a) The tax ------------------------------------------------------- liability of the Affiliated Group will be first allocated to the members in accordance with section 1.1552-1(a)(2) of the Federal income tax regulations and then the Affiliated Group will elect I00 percent as a fixed percentage to be used to allocate additional amounts to the members in accordance with Treasury Regulations Section 1.1502-33(d)(3)(i). Each Subsidiary will pay to the Parent the amount of tax liability allocated to it in this paragraph (after the adjustments provided for in subparagraph (e)) and Parent will pay to each Subsidiary or former Subsidiary all amounts allocable under section 1.1502-33(d)(3)(ii). (b) If a consolidated current alternative minimum tax liability exists, such liability (as well as any associated minimim tax credit) will be allocated to the members in accordance with proposed regulations section 1.1552-1(g). (c) All recapture of previously claimed tax credits shall be assessed against the member that generated the credits. (d) Payment by each Subsidiary of its allocated Federal income tax liability (after the adjustments provided for in subparagraph (e)) for a Consolidated Return Year shall include estimated tax installments due for each taxable period and each Subsidiary shall pay such estimated tax installments to Parent not later than the due date of each such installment. Estimated tax payments made by a Subsidiary shall be credited against the allocated consolidated Federal income tax liability of such Subsidiary for the Consolidated Return Year. Any underpayment or overpayment of allocated consolidated Federal income tax liability by reason of estimated tax payments (resulting from other than the adjustments required in subparagraph (e)) shall be paid by or refunded to each Subsidiary within thirty days after the filing date of the Consolidated Return, provided that if the Consolidated Return produces a net refund the overpayment shall be refunded when received by the Parent from the Internal Revenue Service. (e) Payments to the Parent of the income tax liability of any subsidiary shall be reduced by its proportionate share of any amounts allocable to the Parent under Section 1.1502-33(d)(3)(ii). A subsidiaries proportionate share of any amounts allocable to the Parent under Section 1.1502-33(d)(3)(ii) shall be based on the ratio of the liability of each subsidiary to the sum of the tax liabilities of all subsidiaries. (f) The Companies do hereby covenant and agree with one another to allocate and pay any state income tax for those states in which a consolidated, combined or unitary return is filed in a manner consistent with the allocation of federal income tax as provided in this Agreement. 4. Adjustments to Tax Liability. If the consolidated tax ---------------------------- liability is adjusted for any Consolidated Return Year, whether by means of an amended return, claim for refund or after a tax audit by the Internal Revenue Service (except for protective refund claims), the liability of the Parent and each Subsidiary under Section (3) of this Agreement shall be recomputed to give effect to such adjustment as if it had been made as part of the original computation of tax liability, and, in the case of a refund, Parent shall pay each Subsidiary that portion of such refund as is attributable to the decrease in such Subsidiary's allocated consolidated Federal tax liability caused by the adjustment within thirty days after the refund is received by Parent and in the case of an increase in tax liability, each Subsidiary shall pay to Parent that portion of such increased tax liability (including all penalties, interest, and additions to tax, if any) as is attributable to the increase in such Subsidiary's allocated consolidated Federal tax liability caused by the adjustment within thirty days after receiving notice of such liability from Parent. 5. Separate Return Years. If part or all of an unused --------------------- consolidated loss or tax credit is allocated to a member of the Affiliated Group pursuant to Section 1.1502-79 of the Federal Income Tax Regulations and it is carried back or forward to a year in which such member filed a separate income tax return or a Consolidated Return with another affiliated group, any refund or reduction in tax liability arising from the carryback or carryover shall be retained by such Subsidiary. Notwithstanding the above, Parent shall determine whether an election shall be made not to carry back part or all of a consolidated net operating loss for any taxable year in accordance with section 172(b)(3) of the Code. 6. Priority of Agreement. This Agreement shall fix the liability --------------------- between Parent and each Subsidiary as to the matters covered, notwithstanding that (i) the Agreement or any part thereof is not controlling for tax or other purposes, including, but not limited to, the computation of earnings and profits for Federal income tax purposes, and (ii) Parent and other corporations which are now or may become members of the Affiliated Group enter into a different agreement for the allocation of consolidated Federal income tax liability to such other corporations. 7. Effective Date. This Agreement shall apply to the Consolidated -------------- Return Year ending December 31, 2000 and all subsequent Consolidated Return Years unless the Parent and the Subsidiaries agree to terminate the Agreement. Notwithstanding such termination, this Agreement shall continue in effect with respect to any payment or refund due for all Consolidated Return Years prior to termination. In the event a Subsidiary ceases to be a member of the Affiliated Group, Parent shall remain the sole agent of such Subsidiary with respect to the period for which such Subsidiary was a member of the Affiliated Group, and Parent shall have sole authority to contest any tax liability with respect to such period. The obligations of a Subsidiary under this Agreement, including but not limited to the obligation to cooperate in seeking a refund of tax for any Consolidated Return Year, shall continue after such Subsidiary ceases to be a member of the Affiliated Group. 8. Amendments. Any amendment or supplement to this Agreement shall be ---------- in writing and signed by an authorized representative of the parties. 9. Successors. This Agreement shall be binding upon and inure to the ---------- benefit of any successors whether by statutory merger, acquisition of assets or otherwise, to any of the parties hereto, to the same extent as if the successor had been an original party to the Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in its name and on its behalf by one of its officers duly authorized. Appendix A CNG Coal Company CNG Financial Services, Inc. CNG Iroquois, Inc. CNG Kauai, Inc. CNG Main Pass Gas Gathering Corporation CNG Market Center Services, Inc. CNG Oil Gathering Corporation CNG Pipeline Company CNG Power Company CNG Power Services Corporation CNG Research Company CNG Technologies, Inc. Consolidated Natural Gas Company Consolidated System LNG Company Cypress Energy, Inc. DEI Cayman Holding Company DT Services, Inc. Dominion Alliance Holding, Inc. Dominion Appalachian Development, Inc. Dominion Appalachian Development Properties, L.L.C. Dominion Armstrong, Inc. Dominion Black Warrior Basin, Inc. Dominion Cleveland Thermal, Inc. Dominion Cogen NY, Inc. Dominion Cogen WV, Inc. Dominion Cogen, Inc. Dominion Dresden, Inc. Dominion Elwood II, Inc. Dominion Elwood III, Inc. Dominion Elwood Services Company, Inc. Dominion Elwood, Inc. Dominion Energy Construction Company Dominion Energy Direct Sales, Inc. Dominion Energy Exchange, Inc. Dominion Energy Marketing, Inc. Dominion Energy Peru Holdings, Inc. Dominion Energy Services Company, Inc. Dominion Energy, Inc. Dominion Equipment II, Inc. Dominion Equipment, Inc. Dominion Exploration & Production, Inc. Dominion Fairless Hills, Inc. Dominion Field Services, Inc. Dominion Gas Processing MI, Inc. Dominion Generation, Inc. Dominion Greenbrier, Inc. Dominion Harrisburg, Inc. Dominion Kincaid, Inc. Dominion Member Services, Inc. Dominion Metering Services, Inc. Dominion Michigan Production Services, Inc. Dominion Midwest Energy, Inc. Dominion North Star Generation, Inc. Dominion Nuclear Connecticut, Inc. Page 1 of 15 Appendix A Dominion Nuclear Holdings, Inc. Dominion Nuclear Marketing I, Inc. Dominion Nuclear Marketing II, Inc. Dominion Nuclear, Inc. Dominion Pleasants, Inc. Dominion Products and Services, Inc. Dominion Reserves - Indiana, Inc. Dominion Reserves - Utah, Inc. Dominion Reserves Gulf Coast, Inc. Dominion Reserves, Inc. Dominion Resources Services, Inc. Dominion Resources, Inc. Dominion Retail, Inc. Dominion San Juan, Inc. Dominion Storage, Inc. Dominion Telecom, Inc. Dominion Transmission, Inc. Dominion Troy, Inc. Evantage, Inc. Granite Road Cogen, Inc. Great Lakes Compression, Inc. Hope Gas, Inc. Niton US, Inc. The East Ohio Gas Company The Peoples Natural Gas Company VP Property, Inc. Virginia Electric and Power Company Virginia Power Energy Marketing, Inc. Virginia Power Fuel Corporation Virginia Power Nuclear Services Company Virginia Power Services Energy Corp., Inc. Virginia Power Services, Inc. Attest: /s/ Patricia A. Wilkerson - ----------------------------------------------- Patricia A. Wilkerson, Authorized Officer By: /s/ G. Scott Hetzer - ----------------------------------------------- G. Scott Hetzer, Authorized Officer Page 2 of 15 Appendix A Carthage Energy Services, Inc. Attest: /s/ Henry C. Riely - ----------------------------------------------- Henry C. Riely, Assistant Secretary By: /s/ Patricia A. Wilkerson - ----------------------------------------------- Patricia A. Wilkerson, Vice President and Corporate Secretary Page 3 of 15 Appendix A CNG International Corporation DEI U.K., Inc. Dominion Energy U.K., Inc. Attest: /s/ Patricia A. Wilkerson By: /s/ Thomas N. Chewning - --------------------------------------------------- ------------------------------------------------- Patricia A. Wilkerson, Authorized Officer Thomas N. Chewning, Authorized Officer
Page 4 of 15 Appendix A Dominion Capital Financial, Inc. Dominion Capital Ventures Corporation Dominion Capital, Inc. Louisiana Hydroelectric Capital Corporation Marine Optical, Inc. Mortgage Finance, Inc. NH Capital, Inc. OptaCor Financial Services Company Rincon Securities, Inc. Saxon Asset Securities Company Virginia Financial Ventures, Inc. Attest: /s/ Patricia A. Wilkerson By: /s/ Charles E. Coudriet - ----------------------------------------------- ------------------------------------------- Patricia A. Wilkerson, Authorized Officer Charles E. Coudriet, Authorized Officer
Page 5 of 15 Dominion First Source, Inc. First Source Equity Holdings, Inc. Saxon Bofa Facility, Inc. Saxon CSR Facility, Inc. Saxon Merrill Facility, Inc. Saxon Mortgage Loan Warehouse Corporation Attest: /s/ Henry C. Riely By: /s/ Charles E. Coudriet - ------------------------------------------- ------------------------------------------- Henry C. Riely, Authorized Officer Charles E. Coudriet, Authorized Officer
Page 6 of 15 Appendix A America's MoneyLine, Inc. Saxon Loan Investment Corporation Saxon Mortgage, Inc. Attest: /s/ Henry C. Riely By: /s/ Robert G. Partlow - -------------------------------------------- -------------------------------------------- Henry C. Riely, Authorized Officer Robert G. Partlow, Authorized Officer
Page 7 of 15 Appendix A First Source Financial, Inc. Attest: /s/ Patricia D. Menge By: /s/ Edward A. Szarkowicz - --------------------------------------- -------------------------------------------- Patricia D. Menge, Vice President and Edward A. Szarkowicz, Senior Vice President, Treasurer General Counsel and Secretary
Page 8 of 15 Appendix A Meritech Mortgage Services, Inc. Attest: /s/ Richard D. Shephard By: /s/ Robert G. Partlow - --------------------------------------------- ------------------------------------------------------ Richard D. Shepherd, Vice President, General Robert G. Partlow, Senior Vice President, Counsel and Assistant Secretary Chief Financial Officer and Treasurer
Page 9 of 15 Appendix A Bridgeway Management Company Chesterfield Land, Inc. Dominion Land Management Company Dominion Land Management Company - Williamsburg Dominion Lands - Williamsburg, Inc. Dominion Lands, Inc. H-W Properties, Inc. Old North State Management Company Shoulders Hill/DCI Properties, Inc. Stanton Associates, Inc. Waterford Harbor Realty, Inc. Waterford Management Company Williams Court/DCI Properties Attest: /s/ Henry C. Riely By: /s/ Jerry L. Moore - ----------------------------------- ----------------------------------- Henry C. Riely, Authorized Officer Jerry L. Moore, Authorized Officer Page 10 of 15 Appendix A Dominion Venture Investments, Inc. Attest: /s/ Henry C. Riely By: /s/ Charles E. Coudriet - ----------------------------------- ---------------------------------------- Henry C. Riely, Authorized Officer Charles E. Coudriet, Authorized Officer Page 11 of 15 Appendix A Hogan Stanton, Inc. Attest: /s/ Julie R. Adie By: /s/ Jerry L. Moore - ------------------------------------ ------------------------------------ Julie R. Adie, Authorized Officer Jerry L. Moore, Authorized Officer Page 12 of 15 Appendix A Edgen, Inc. Goodman Segar Hogan, Inc. Vidalia Audit, Inc. Attest: /s/ Henry C. Riely By: /s/ Mark P. Mikuta - ------------------------------------ ------------------------------------ Henry C. Riely, Authorized Officer Mark P. Mikuta, Authorized Officer Page 13 of 15 Appendix A Goodman Segar Hogan of Orlando, Inc. Goodman Segar Hogan of World Trade Center, Inc. Hogan Stanton Investment, Inc. Hogan Stanton Properties, Inc. Attest: /s/ Julie R. Adie By: /s/ Mark P. Mikuta - ----------------------------------- ----------------------------------- Julie R. Adie, Authorized Officer Mark P. Mikuta, Authorized Officer Page 14 of 15 Appendix A Dominion Elwood Marketing, Inc. Attest: /s/ Patricia A. Wilkerson By: /s/ John Shaw - ------------------------------------------ ------------------------------------------ Patricia A. Wilkerson, Authorized Officer John Shaw, Authorized Officer
Page 15 of 15 EX-99.4 5 dex994.txt EXHIBIT E AS REFLECTED IN THE U5S EXIND. EXHIBIT E REPORT OF INDEPENDENT ACCOUNTANTS To the Partners of Iroquois Gas Transmission System, L.P.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, changes in partners' equity and of cash flows present fairly, in all material respects, the financial position of Iroquois Gas Transmission System, L.P. and its subsidiary at December 31, 2000 and December 31, 1999, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. PricewaterhouseCoopers, LLP Boston, Massachusetts February 7, 2001 1 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31 ---------------------------- 2000 1999 1998 -------- -------- -------- (thousands of dollars) Operating Revenues............................... $127,234 $123,919 $140,371 Operating Expenses: Operation and maintenance...................... 21,119 21,534 21,703 Depreciation and amortization.................. 23,609 21,976 29,795 Taxes other than income taxes.................. 11,156 11,449 10,390 Total Operating Expenses..................... 55,884 54,959 61,888 Operating Income................................. 71,350 68,960 78,483 Other Income/(Expenses): Interest income................................ 2,203 1,644 1,908 Allowance for equity funds used during construction.................................. 126 -- 457 Other, net..................................... (505) (225) 4,393 1,824 1,419 6,758 Income Before Interest Charges and Taxes......... 73,174 70,379 85,241 Interest Expense: Interest expense............................... 31,283 30,621 33,169 Allowance for borrowed funds used during construction.................................. (144) -- (693) Net Interest Expense......................... 31,139 30,621 32,476 Income Before Taxes.............................. 42,035 39,758 52,765 Provision for Taxes.............................. 17,083 15,580 20,788 Net Income....................................... $ 24,952 $ 24,178 $ 31,977
The accompanying notes are an integral part of these financial statements. 2 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. CONSOLIDATED BALANCE SHEETS
At December 31 -------------------- 2000 1999 --------- --------- (thousands of dollars) ASSETS Current Assets: Cash and temporary cash investments..................... $ 25,013 $ 27,375 Accounts receivable--trade.............................. 7,655 6,938 Accounts receivable--affiliates......................... 5,667 5,440 Other current assets.................................... 3,138 3,422 --------- --------- Total Current Assets.................................. 41,473 43,175 Natural Gas Transmission Plant: Natural gas plant in service............................ 777,577 773,588 Construction work in progress........................... 7,646 3,292 --------- --------- 785,223 776,880 Accumulated depreciation and amortization............... (265,051) (242,074) Net Natural Gas Transmission Plant.................... 520,172 534,806 Other Assets and Deferred Charges: Regulatory assets--income tax related................... 13,634 12,767 Regulatory assets--other................................ 2,038 2,226 Other assets and deferred charges....................... 7,051 1,877 --------- --------- Total Other Assets and Deferred Charges............... 22,723 16,870 --------- --------- Total Assets........................................ $ 584,368 $ 594,851 ========= ========= LIABILITIES AND PARTNERS' EQUITY Current Liabilities: Accounts payable........................................ $ 3,970 $ 3,624 Accrued interest........................................ 2,909 4,781 Short-term borrowings................................... -- 3,500 Current portion of long-term debt (Note 3).............. 22,222 28,789 Accrued property taxes.................................. 3,541 3,737 Other current liabilities............................... 1,513 1,574 --------- --------- Total Current Liabilities............................. 34,155 46,005 Long-Term Debt (Note 3)................................... 366,667 307,875 Other Non-Current Liabilities............................. 489 816 367,156 308,691 Amounts Equivalent to Deferred Income Taxes: Generated by Partnership................................ 79,866 70,037 Payable by Partners..................................... (66,232) (57,270) --------- --------- Total Amounts Equivalent to Deferred Income Taxes..... 13,634 12,767 Commitments and Contingencies (Note 7).................... -- -- --------- --------- Total Liabilities....................................... 414,945 367,463 Partners' Equity.......................................... 169,423 227,388 --------- --------- Total Liabilities and Partners' Equity.................. $ 584,368 $ 594,851 ========= =========
The accompanying notes are an integral part of these financial statements. 3 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31 ----------------------------- 2000 1999 1998 --------- -------- -------- (thousands of dollars) Cash Flows from Operating Activities: Net Income................................... $ 24,952 $ 24,178 $ 31,977 Adjusted for the following: Depreciation and amortization.............. 23,609 21,976 29,795 Allowance for equity funds used during construction.............................. (126) -- (457) Deferred regulatory assets--income tax related................................... (867) 1,071 548 Amounts equivalent to deferred income taxes..................................... 867 (1,071) (548) Income and other taxes payable by Partners.................................. 17,083 15,580 20,788 Other assets and deferred charges.......... (5,567) (1,007) (28) Changes in working capital: Accounts receivable...................... (944) (1,352) 3,276 Other current assets..................... 284 (932) (323) Accounts payable......................... 346 (604) (679) Accrued interest......................... (1,872) (430) (402) Other liabilities........................ (584) 552 (48) Net Cash Provided by Operating Activities.. 57,181 57,961 83,899 Cash Flows from Investing Activities: Capital expenditures......................... (8,268) (7,718) (14,172) Net Cash Used for Investing Activities..... (8,268) (7,718) (14,172) Cash Flows from Financing Activities: Partner distributions........................ (100,000) (25,000) (40,000) Long-term debt borrowings.................... 400,000 -- -- Repayments of long-term debt................. (347,775) (28,724) (28,723) Short-term borrowings (repayments)........... (3,500) 3,500 -- Net Cash Used for Financing Activities..... (51,275) (50,224) (68,723) Net increase (decrease) in Cash and Temporary Cash Investments.............................. (2,362) 19 1,004 Cash and Temporary Cash Investments at Beginning of Year............................. 27,375 27,356 26,352 Cash and Temporary Cash Investments at End of Year.......................................... $ 25,013 $ 27,375 $ 27,356 Supplemental disclosure of cash flow information: Cash paid for interest....................... $ 32,628 $ 31,051 $ 33,571
The accompanying notes are an integral part of these financial statements. 4 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. STATEMENT OF CHANGES IN PARTNERS' EQUITY
(thousands of dollars) Partners' Equity Balance at December 31, 1997........................... $ 199,865 Net income 1998...................................... 31,977 Taxes payable by Partners............................ 20,788 Equity distributions to Partners..................... (40,000) Balance at December 31, 1998........................... $ 212,630 Net income 1999...................................... 24,178 Taxes payable by Partners............................ 15,580 Equity distributions to Partners..................... (25,000) Balance at December 31, 1999........................... $ 227,388 Net income 2000...................................... 24,952 Taxes payable by Partners............................ 17,083 Equity distributions to Partners..................... (100,000) Partners' Equity Balance at December 31, 2000........................... $ 169,423
The accompanying notes are an integral part of these financial statements. 5 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS NOTE 1 Description of Partnership: Iroquois Gas Transmission System, L.P., ("Iroquois" or "Company") is a Delaware limited partnership formed for the purpose of constructing, owning and operating a natural gas transmission pipeline from the Canada-United States border near Waddington, NY, to South Commack, Long Island, NY. In accordance with the limited partnership agreement, the Partnership shall continue in existence until October 31, 2089, and from year to year thereafter, until the Partners elect to dissolve the Partnership and terminate the limited partnership agreement. As of December 31, 2000, the Partners consist of TransCanada Iroquois Ltd. (29.0%), North East Transmission Company (19.4%), Dominion Iroquois, Inc. (16.0%), ANR Iroquois, Inc. (9.4%), ANR New England Pipeline Company (6.6%), TCPL Northeast Ltd. (6.0%), JMC-Iroquois, Inc. (4.93%), TEN Transmission Company (4.87%), NJNR Pipeline Company (2.8%), and LILCO Energy Systems, Inc. (1.0%). Effective December 31, 1998, Alenco Iroquois Pipeline, Inc. sold its interest in the Company to TCPL Northeast Ltd. The Iroquois Pipeline Operating Company, a wholly-owned subsidiary, is the administrative operator of the pipeline. Income and expenses are allocated to the Partners and credited to their respective equity accounts in accordance with the partnership agreements and their respective percentage interests. Distributions to Partners are made concurrently to all Partners in proportion to their respective partnership interests. Total cash distributions of $100.0 million, $25.0 million and $40.0 million were made during 2000, 1999 and 1998, respectively. NOTE 2 Summary of Significant Accounting Policies: BASIS OF PRESENTATION The consolidated financial statements of the Company are prepared in accordance with generally accepted accounting principles and with accounting for regulated public utilities prescribed by the Federal Energy Regulatory Commission ("FERC"). Generally accepted accounting principles for regulated entities allow the Company to give accounting recognition to the actions of regulatory authorities in accordance with the provisions of Statement of Financial Accounting Standards ("SFAS") No. 71, "Accounting for the Effects of Certain Types of Regulation". In accordance with SFAS No. 71, the Company has deferred recognition of costs (a regulatory asset) or has recognized obligations (a regulatory liability) if it is probable that such costs will be recovered or obligation relieved in the future through the rate-making process. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and Iroquois Pipeline Operating Company, a wholly-owned subsidiary. Intercompany transactions have been eliminated in consolidation. CASH AND TEMPORARY CASH INVESTMENTS Iroquois considers all highly liquid temporary cash investments purchased with an original maturity date of three months or less to be cash equivalents. Cash and temporary cash investments of $25.0 million at 6 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) December 31, 2000 consisted primarily of discounted commercial paper. Cash and temporary cash investments of $27.4 million in 1999, consisted primarily of low-risk mutual funds, carried at cost, which approximated market. At December 31, 1999, $9.7 million of cash and temporary cash investments were held to satisfy the terms of the Loan Agreement (refer to Note 3). NATURAL GAS PLANT IN SERVICE Natural gas plant in service is carried at original cost. The majority of the natural gas plant in service is categorized as natural gas transmission plant which began depreciating over 20 years on a straight line basis from the in-service date through January 31, 1995. Commencing February 1, 1995, transmission plant began depreciating over 25 years on a straight-line basis as a result of a rate case settlement. Effective August 31, 1998 the depreciation rate was changed to 2.77% (36 years average life) in accordance with the FERC rate order issued July 29, 1998. General plant is depreciated on a straight- line basis over five years. CONSTRUCTION WORK IN PROGRESS At December 31, 2000, construction work in progress included preliminary construction costs relating to the proposed Eastchester expansion project and other on-going minor capital projects. Allowance for Funds Used During Construction The allowance for funds used during construction ("AFUDC") represents the cost of funds used to finance natural gas transmission plant under construction. The AFUDC rate includes a component for borrowed funds as well as equity. The AFUDC is capitalized as an element of natural gas plant in service. Provision for Taxes The payment of income taxes is the responsibility of the Partners and such taxes are not normally reflected in the financial statements of partnerships. Iroquois' approved rates, however, include an allowance for taxes (calculated as if it were a corporation) and the FERC requires Iroquois to record such taxes in the Partnership records to reflect the taxes payable by the Partners as a result of Iroquois' operations. These taxes are recorded without regard as to whether each Partner can utilize its share of the Iroquois tax deductions. Iroquois' rate base, for rate-making purposes, is reduced by the amount equivalent to accumulated deferred income taxes in calculating the required return. The Company accounts for income taxes under Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes". Under SFAS No. 109, deferred taxes are provided based upon, among other factors, enacted tax rates which would apply in the period that the taxes become payable, and by adjusting deferred tax assets or liabilities for known changes in future tax rates. SFAS No. 109 requires recognition of a deferred income tax liability for the equity component of AFUDC. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 7 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) Reclassifications Certain prior year amounts have been reclassified to conform with current year classifications. New Accounting Standard In June of 1998, The Financial Accounting Standards Board ("FASB") issued SFAS 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"). This statement establishes accounting and reporting standards for derivative instruments and for hedging activities. The statement requires recognition of derivatives in the statement of financial position, to be measured at fair value. Gains or losses resulting from changes in the value of derivatives would be accounted for depending on the intended use of the derivative and whether it qualifies for hedge accounting. In June 1999, the FASB issued SFAS 137 "Accounting for Derivative Instruments and Hedging Activities-Deferral of the Effective Date of FASB Statement 133," which deferred SFAS 133's effective date for all fiscal quarters of all fiscal years beginning after June 15, 2000. In June 2000, the FASB issued SFAS 138 "Accounting for Certain Derivative Instruments and Certain Hedging Activities," which amended SFAS 133. The Company has adopted SFAS 133 beginning January 1, 2001. However, due to the Company's limited use of derivative financial instruments which are applied only to the Company's interest rate swap agreement (see Note 3), adoption of SFAS 133 will not have a material effect on the Company's consolidated results of operations, financial position, or cash flows. The transition adjustment as of January 1, 2001, recorded in other comprehensive income was $1.7 million. NOTE 3 Financing: On June 11, 1991, Iroquois entered into a loan agreement which provided a loan facility totaling $522.6 million to be amortized over a 14-year period commencing November 1, 1992. During 1993, Iroquois entered into Expansion Loan Agreement No. 1 in the amount of $17.6 million to construct the Wright Compressor Station. This loan had a maturity date of November 2007. During 1995, Iroquois entered into Expansion Loan Agreement No. 2 in the amount of $13.4 million to finance the Croghan Compressor Station. This loan had a maturity date of November 2008. On May 30, 2000, Iroquois exercised its option to prepay these three loans in full with the proceeds of the Term Loan Facility and Senior Notes which are described below. As of December 31, 1999, Iroquois was party to interest rate swap transactions for aggregate notional principal amounts of $537.6 million relating to the original loan and Expansion Loan No. 1. The fair value of the interest rate swaps is the estimated amount that Iroquois would receive or pay to terminate the swap agreements at the reporting date, taking into account current interest rates and current creditworthiness of the swap counterparties. The fair value of these interest rate swaps were ($8.6) million and ($39.2) million at December 31, 1999 and 1998 respectively. These interest rate swap agreements were terminated during the first six months of 2000. On May 30, 2000, Iroquois completed a private offering of $200 million of 8.68% senior notes due 2010, which were exchanged in a registered offering for notes with substantially identical terms on September 25, 2000 ("Senior Notes"). Also on May 30, 2000, Iroquois entered into a credit agreement with certain financial institutions providing for a term loan facility of $200 million ("Term Loan Facility") and a $10 million, 364-day revolving credit facility. The credit agreement permits Iroquois to choose among various interest rate options, to specify the portion of the borrowings to be covered by specific interest rate options and to specify the interest rate period, subject to certain parameters. The Term Loan Facility will amortize over nine years. At December 31, 2000 there were no amounts outstanding under the revolving credit facility. The proceeds from the Senior Notes and Term Loan Facility were used to repay borrowings under the above mentioned three loan 8 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) agreements, terminate related interest rate swap agreements, make a cash distribution to Iroquois' partners of $40 million, pay certain financing fees and expenses and for general corporate purposes. During the first six months of 2000, Iroquois paid approximately $0.9 million for the termination of its entire portfolio of interest rate swap agreements, which had an aggregate notional principal amount of $437.6 million. Under the provisions of SFAS 71, Iroquois intends to recover these costs in future rate proceedings and therefore has deferred and is amortizing these amounts over the life of the original loan agreements. On August 9, 2000, the Company entered into an interest rate swap agreement with The Chase Manhattan Bank to hedge a portion of the interest rate risk on the new credit facilities. This interest rate swap agreement was effective on August 30, 2000 and will terminate on the last business day in May 2009. Pursuant to the terms of this interest rate swap agreement, Iroquois has agreed to pay to The Chase Manhattan Bank a fixed rate of 6.82% on an initial notional amount of $25.0 million, which will be amortized during the term of the interest rate swap agreement, in return for a payment from The Chase Manhattan Bank of a floating rate of 3-month LIBOR on the amortizing notional amount. On August 9, 2000, the Company also entered into an option with The Chase Manhattan Bank pursuant to which The Chase Manhattan Bank had the option to enter into an additional interest rate swap agreement. The Chase Manhattan Bank exercised this option which was effective on December 26, 2000 and will terminate on the last business day in May 2009. This additional interest swap agreement has the same fixed and floating rate terms as the initial interest rate swap agreement and is for an initial notional amount of $24.3 million, which will be amortized during the term of the additional interest rate swap agreement. As of December 31, 2000, the aggregate notional principle amount of these two swaps was $47.2 million. The interest rate and margin over the term of the swaps average 6.820% and 1.260% respectively. The fair value of these interest rate swaps at December 31, 2000, was ($1.7) million. At December 31, 2000, the outstanding principal balance was $200 million on the Senior Notes and $188.9 million on the Term Loan Facility. The combined schedule of repayments at December 31, 2000 is as follows (millions of dollars):
Scheduled Year Repayment ---- --------- 2001............................................................... $ 22.2 2002............................................................... $ 22.2 2003............................................................... $ 22.2 2004............................................................... $ 22.2 2005............................................................... $ 22.2 Thereafter......................................................... $277.9
At December 31, 1999, the short-term borrowings consisted of an unsecured line of credit which permitted borrowings up to a maximum of $10 million at a rate equal to the lower of the lenders' alternate base rate or one, two or three month LIBOR plus 3/8% per annum. This facility was reviewed on an annual basis and expired in May 2000. As of December 31, 1999, $3.5 million was outstanding under this agreement at an annual interest rate of 6.8363%. The line of credit contained a subjective acceleration clause as its most restrictive covenant. NOTE 4 Concentrations of Credit Risk: Iroquois' cash and temporary cash investments and trade accounts receivable represent concentrations of credit risk. Management believes that the credit risk associated with cash and temporary cash investments is 9 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) mitigated by its practice of limiting its investments primarily to commercial paper rated P-1 or higher by Moody's Investors Services and A-1 or higher by Standard and Poor's, and its cash deposits to large, highly-rated financial institutions. Management also believes that the credit risk associated with trade accounts receivable is mitigated by the restrictive terms of the FERC gas tariff which requires customers to pay for service within 20 days after the end of the month of service delivery. NOTE 5 Fair Value of Financial Instruments: The fair value amounts disclosed below have been reported to meet the disclosure requirements of SFAS No. 107, "Disclosures About Fair Values of Financial Instruments" and are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying amount of cash and temporary cash investments, accounts receivable, accounts payable and accrued expenses approximates fair value. The fair value of long-term debt is estimated based on currently quoted market prices for similar types of issues. The carrying amounts and estimated fair values of the Company's long-term debts including current maturities are as follows (thousands of dollars):
Year Carrying Amount Fair Value ---- --------------- ---------- 2000.............................................. $388,889 $408,441 1999.............................................. $336,664 $336,664
NOTE 6 Gas Transportation Contracts: As of December 31, 2000, Iroquois had contracts in place to provide firm reserved transportation service to 36 shippers of 1005.9 MDth/d of natural gas which breaks down as follows:
Quantity in Term in Years MDth/d ------------- -------- 1-10.............................................................. 127.5 11-15.............................................................. 784.4 16-20.............................................................. 94.0 Total.............................................................. 1005.9
The long-term firm service gas transportation contracts expire between October 31, 2002 and August 1, 2018. NOTE 7 Commitments and Contingencies: Regulatory Proceedings FERC Docket No. RP97-126 On November 29, 1996, Iroquois submitted a general rate change application to the Federal Energy Regulatory Commission ("FERC" or "Commission") in Docket No. RP97-126-000. In an order issued on 10 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) December 31, 1996 ("Suspension Order"), the Commission accepted and suspended the rates, permitted them to become effective (with one exception noted below) on January 1, 1997, and established a hearing. Pursuant to that Suspension Order, the Presiding Administrative Law Judge conducted a hearing on all issues raised by Iroquois' filing, which was concluded on August 28, 1997. Following the December 31, 1997 issuance of an Initial Decision ("1997 Initial Decision") by the Presiding Administrative Law Judge, on January 30, 1998 Iroquois filed its brief on exceptions vigorously opposing certain aspects of the 1997 Initial Decision. On July 29, 1998 the Commission issued its "Order Affirming in Part and Reversing in Part Initial Decision" ("July 29 Order") which modified significant portions of the 1997 Initial Decision. Iroquois' filing in compliance with the July 29 Order was accepted and the lower rates became effective on August 31, 1998. In addition, on August 28, 1998 Iroquois filed a request for rehearing of the July 29 Order. By order issued March 11, 1999 ("March 11 Order") the Commission granted rehearing on one aspect of the July 29 Order. The March 11 Order reversed the earlier decision on Iroquois' capital structure and permitted Iroquois to utilize an equity structure of 35.21% (in place of the 31.85% required by the July 29 Order) in designing its rates. This resulted in an increase of approximately 1c per dekatherm in Iroquois' 100% load factor interzone rate. All other requests for rehearing of the July 29 Order were denied. Iroquois filed a petition for review of these orders in the United States Court of Appeals for the District of Columbia Circuit docketed as DC Cir. No. 99-1175. This case was consolidated with DC Cir. No. 99-1177, which involved a petition for review of these same orders that was filed by Selkirk Cogen Partners, L.P. and MassPower (customers of Iroquois). As a result of the Commission's February 10, 2000 approval of the rate settlement discussed below, these petitions for review were withdrawn. The Suspension Order granted summary disposition on one issue: as a result of the Commission's December 20 Opinion in Docket No. RP94-72 (discussed below), Iroquois was ordered to remove approximately $11.7 million in plant and associated costs from its proposed rate base. This resulted in an additional reduction in Iroquois' test-period revenues of approximately $2.0 million from those set forth in the filing. Iroquois sought rehearing (on January 30, 1997) of the Suspension Order. This was denied by the Commission by an order issued August 5, 1997 ("August 5 Order"). On September 3, 1997, Iroquois filed a Petition for Review of the Commission's Suspension and August 5 Orders in the United States Court of Appeals for the District of Columbia Circuit, docketed as D.C. Cir. No. 97-1533, which was consolidated with D.C. Cir. No. 97-1276 (discussed below). FERC Docket No. RP94-72 The Commission, on June 19, 1995, approved a Stipulation and Consent Agreement in Iroquois' prior rate proceeding in Docket No. RP94-72, which resolved all issues except for the accounting and recovery of legal defense costs incurred in connection with certain criminal and civil investigations into the initial construction of the Iroquois facility. A hearing was held on this reserved issue on April 5, 1995. On July 19, 1995 the Presiding Administrative Law Judge issued an Initial Decision ("1995 Initial Decision") that would have permitted Iroquois to capitalize those legal defense costs and recover $4.1 million (the dollar amount of such costs which Iroquois filed to recover in Docket No. RP94-72) from its customers. Various participants, including the Commission Staff, filed exceptions to the 1995 Initial Decision with the Commission (which were opposed by Iroquois on September 7, 1995). On December 20, 1996 the Commission issued an order reversing the 1995 Initial Decision and disallowing recovery of the legal defense costs at issue. Iroquois filed a request for rehearing of the Commission's December 20 Order on January 21, 1997. By Order issued March 3, 1997, the Commission denied rehearing. 11 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) Consolidated Proceedings Iroquois filed a petition for review of the December 20 and March 3 Orders in the United States Court of Appeals for the District of Columbia Circuit on April 18, 1997 in D.C. Cir. No. 97-1276. Following oral argument on May 14, 1998, the court on July 21, 1998 issued a decision reversing the Commission's December 20 and March 3 Orders as well as the Suspension and August 5 Orders and remanded the matter to the agency for further proceedings. The court subsequently denied rehearing of its opinion on November 13, 1998 and issued its mandate. On June 16, 1999 the Commission issued an "Order on Remand and Establishing Rehearing" ("June 16 Order"). The June 16 Order concluded that a hearing was necessary to determine whether Iroquois' incurrence of the legal expenditures was prudent and set forth the procedures and burdens which were to govern that hearing. A preliminary conference to establish a procedural schedule and to clarify the positions of the participants was convened on July 12, 1999. As a result of the Commission's February 10, 2000 approval of the rate settlement described below, these issues have been resolved. Settlement (FERC Docket Nos. RP97-126 and RP94-72 et al.) After extensive negotiations, on December 17, 1999 Iroquois, with the support of all active participants, filed with the Commission a settlement of all of the above outstanding rate matters. Pursuant to the settlement the parties agreed to a rate moratorium whereby, with limited exceptions, no new rates could be placed in effect on Iroquois' system until January 1, 2004. During the period of the moratorium, Iroquois would reduce its 100% load factor interzone rate by approximately 4.8c per dekatherm (approximately 1c in 2001, an additional 2.4c in 2002 and an additional 1.4c in 2003). Based on 1999 long- term firm service contracts the settlement will result in the following reductions in revenues: $2.3 million in 2001, $5.7 million in 2002, and $3.4 million in 2003. In addition, Iroquois would not seek in any future rate proceedings to recover defense costs associated with the criminal and civil investigations into the initial construction of the Iroquois facility. These costs were removed from the proposed rate base and reflected in the Company's results from operations in previous years. Finally, Iroquois, Selkirk Cogen Partners, L.P. and MassPower would withdraw their petitions for review in DC Cir. Nos. 99-1175 and 99-1177. By letter order issued February 10, 2000, the Commission approved the rate settlement without modification. The period for filing rehearing requests of such order has expired. No such requests were filed. The settlement became effective on March 10, 2000. FERC Order No. 637 On February 9, 2000, the Commission issued Order No. 637 in Docket Nos. RM98-10 and RM98-12. According to the Commission, the order was to reflect "steps to guarantee effective competition, remove constraints on market power, and eliminate regulatory bias". Among other things, the order required pipelines to submit Commission filings to 1) remove the price cap applicable to pipeline capacity released by firm shippers to new shippers, 2) revise pipeline scheduling procedures applicable to such released capacity, 3) permit firm shippers to segment their capacity for their own use or release, 4) revise pipeline penalty provisions, and 5) expand, modify and consolidate certain pipeline reporting requirements. On July 17, 2000 and September 1, 2000, Iroquois submitted filings in (respectively) Docket Nos. RP00-411 and RP00-529 to implement the provisions of Order No. 637. Certain parties, including a number of Iroquois shippers, opposed certain aspects of the filings. The Commission has not yet acted on the filing in Docket No. RP00-411; the tariff sheets submitted in Docket No. RP00-529 were accepted in a letter order dated September 28, 2000. Management believes that the outcome of these proceedings will not have a material adverse effect on Iroquois' financial condition or results of operations. 12 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) Eastchester Certificate Application (FERC Docket No. CP00-232) On April 28, 2000, Iroquois filed an application with the Commission to construct and operate its "Eastchester Extension Project". Under this proposal, Iroquois would construct and operate certain facilities, including additional compression facilities and approximately 33 miles of pipeline and associated facilities from Northport, Long Island to the Bronx, New York. Those proposed facilities would serve 220,000-230,000 dekatherms of natural gas per day on a long-haul basis to the New York City area. Iroquois would provide firm transportation service to the shippers with whom it has executed precedent agreements. Iroquois proposed to place the facilities into service on a staggered basis, with certain facilities placed into service on April 1, 2002 and the remainder on November 1, 2002. In order to meet the proposed in-service dates, Iroquois requested action by the Commission by June 1, 2001. Certain parties have intervened in opposition to certain aspects of the Eastchester proposal, including the location of the pipeline through the Bronx and the treatment of the costs associated with the project in future rate cases. Subsequent to the filing of those interventions, the Commission submitted several data requests to Iroquois, to which Iroquois has responded. In addition, on August 9, 2000 the Commission issued a "Notice of Intent to Prepare an Environmental Impact Statement" regarding the project, and conducted scoping sessions in various locations in New York state. On December 15, 2000 Iroquois filed an amendment to its application, proposing to relocate the terminus to a different location in the Bronx. Certain persons have objected to this proposed relocation in comments filed with the Commission. Additional meetings regarding this proposed relocation have been scheduled by the FERC staff. Legal Proceedings--Other Iroquois is party to various other legal actions incident to its business. However, management believes that the outcome of these proceedings will not have a material adverse effect on Iroquois' financial condition or results of operations. Leases Iroquois leases its office space under operating lease arrangements. The leases expire at various dates through 2003 and are renewable at Iroquois' option. Iroquois also leases a right-of-way easement on Long Island, NY, from the Long Island Lighting Company ("LILCO"), a general partner, which requires annual payments escalating 5% a year over the 39-year term of the lease. In addition, Iroquois leases various equipment under non-cancelable operating leases. During the years ended December 31, 2000, 1999 and 1998, Iroquois made payments of $1.0 million, $1.0 million and $0.9 million respectively, under operating leases which were recorded as rental expense. Future minimum rental payments under operating lease arrangements are as follows (millions of dollars):
Year Amount ---- ------ 2001.................................................................. $0.9 2002.................................................................. $0.8 2003.................................................................. $0.5 2004.................................................................. $0.1 2005.................................................................. $0.1 Thereafter............................................................ $4.5
NOTE 8 Income Taxes: Deferred income taxes which are the result of operations will become the obligation of the Partners when the temporary differences related to those items reverse. The Company recognizes a decrease in the Amounts Equivalent to Deferred Income Taxes account for these amounts and records a corresponding increase to IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) Partners' equity. Deferred income taxes with respect to the equity component of AFUDC remain on the accounts of the Partnership until the related deferred regulatory asset is recognized. Total income tax expense includes the following components (thousands of dollars):
U.S. State-- 2000 Federal State Other Total - ---- ------- ------ ------- ------- Current.......................................... $ 5,501 $2,620 $ -- $ 8,121 Deferred......................................... 8,342 620 -- 8,962 ------- ------ ------ ------- Total............................................ $13,843 $3,240 $ -- $17,083 ======= ====== ====== ======= U.S. State-- 1999 Federal State Other Total - ---- ------- ------ ------- ------- Current.......................................... $ 5,082 $ 540 $1,124 $ 6,746 Deferred......................................... 8,285 549 -- 8,834 ------- ------ ------ ------- Total............................................ $13,367 $1,089 $1,124 $15,580 ======= ====== ====== ======= U.S. State-- 1998 Federal State Other Total - ---- ------- ------ ------- ------- Current.......................................... $ 8,910 $1,793 $1,221 $11,924 Deferred......................................... 8,530 334 -- 8,864 ------- ------ ------ ------- Total............................................ $17,440 $2,127 $1,221 $20,788 ======= ====== ====== =======
For the years ended December 31, 2000, 1999 and 1998, the effective tax rate differs from the Federal statutory rate due principally to the impact of state taxes. Deferred income taxes included in the income statement relate to the following (thousands of dollars):
2000 1999 1998 ------ ------ ------ Depreciation............................................ $8,410 $8,930 $4,224 Deferred regulatory asset............................... (75) (70) (71) Property taxes.......................................... (1) 23 27 Legal cost.............................................. -- (16) 104 Accrued expenses........................................ -- 16 (104) Alternative minimum tax credit.......................... 277 (37) 4,487 Other................................................... 351 (12) 197 ------ ------ ------ Total deferred taxes.................................... $8,962 $8,834 $8,864 ====== ====== ======
14 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued) The components of the net deferred tax liability are as follows (thousands of dollars):
At December 31 2000 1999 - -------------- -------- -------- Deferred tax assets: Alternative minimum tax credit.............................. $ 2,496 $ 2,773 Accrued expenses............................................ 5,474 5,474 -------- -------- Total deferred tax assets................................... 7,970 8,247 ======== ======== Deferred tax liabilities: Depreciation and related items.............................. (67,456) (59,072) Deferred regulatory asset................................... (808) (883) Property taxes.............................................. (879) (879) Legal costs................................................. (4,662) (4,662) Other....................................................... (1,058) (707) -------- -------- Total deferred tax liabilities.............................. (74,863) (66,203) -------- -------- Net deferred tax liabilities................................ (66,893) (57,956) Less deferral of tax rate change............................ 661 686 Deferred taxes-operations................................... (66,232) (57,270) Deferred tax related to equity AFUDC........................ (12,973) (12,081) Deferred tax related to change in tax rate.................. (661) (686) -------- -------- Total deferred taxes........................................ $(79,866) $(70,037) ======== ========
NOTE 9 Related Party Transactions: Operating revenues and amounts due from related parties were primarily for gas transportation services. Amounts due from related parties are shown net of payables, if any. The following table summarizes Iroquois' related party transactions (millions of dollars):
Payments Due from Revenue to Related Related from Related 2000 Parties Parties Parties - ---- ---------- -------- ------------ TransCanada Iroquois Ltd....................... $0.2 $0.7 $ 7.6 NorthEast Transmission Company................. -- 1.1 9.1 ANR Iroquois, Inc.............................. -- -- 2.8 JMC-Iroquois, Inc.............................. -- 1.7 18.1 TEN Transmission Company....................... -- 0.6 7.4 NJNR Pipeline Company.......................... -- 0.6 7.0 LILCO Energy Systems, Inc...................... -- 1.0 11.3 ---- ---- ----- Totals....................................... $0.2 $5.7 $63.3 ==== ==== =====
15 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued)
Payments Due from Revenue to Related Related from Related 1999 Parties Parties Parties - ---- ---------- -------- ------------ TransCanada Iroquois Ltd....................... $0.5 $1.3 $ 7.7 NorthEast Transmission Company................. -- -- -- ANR Iroquois, Inc.............................. -- 0.3 3.7 JMC-Iroquois, Inc.............................. -- 1.4 16.4 TEN Transmission Company....................... -- 0.6 9.0 NJNR Pipeline Company.......................... -- 0.7 7.1 LILCO Energy Systems, Inc...................... 0.1 1.0 11.4 ---- ---- ----- Totals....................................... $0.6 $5.3 $55.3 ==== ==== =====
NOTE 10 Retirement Benefit Plans: During 1997, the Company established a noncontributory retirement plan ("Plan") covering substantially all employees. Pension benefits are based on years of credited service and employees' career earnings, as defined in the Plan. The Company's funding policy is to contribute, annually, an amount at least equal to that which will satisfy the minimum funding requirements of the Employee Retirement Income Security Act plus such additional amounts, if any, as the Company may determine to be appropriate from time to time. During 1997 and 1998 the Company also adopted excess benefit plans (EBPs) that provide retirement benefits to executive officers and other key management staff. The EBPs recognize total compensation and service that would otherwise be disregarded due to Internal Revenue Code limitations on compensation in determining benefits under the regular retirement plan. The EBPs are not funded and benefits are paid when due from general corporate assets. The consolidated net cost for pension benefit plans included in the consolidated statements of income for the years ending December 31, include the following components (thousands of dollars):
2000 1999 1998 ---- ---- ---- Service cost.................................................. $504 $388 $328 Interest cost................................................. 98 68 40 Expected return on plan assets................................ (92) (52) (25) Amortization of prior service cost............................ 22 22 22 Recognition of net actuarial loss............................. 2 9 1 Net periodic pension cost..................................... $534 $435 $366
The following tables represent the two Plans' combined funded status reconciled to amounts included in the consolidated balance sheets as of December 31, 2000 and 1999 (thousands of dollars):
Change in Benefit Obligation 2000 1999 - ---------------------------- ------ ------ Benefit obligation at beginning of year....................... $1,456 $ 928 Service cost.................................................. 504 388 Interest cost................................................. 98 68 Actuarial (gain) or loss...................................... (84) 92 Benefits paid................................................. (29) (20) Benefit obligation at end of year............................. $1,945 $1,456
16 IROQUOIS GAS TRANSMISSION SYSTEM, L.P. NOTES TO FINANCIAL STATEMENTS--(Continued)
Change in Plan Assets 2000 1999 - --------------------- ------ ----- Fair value of plan assets at beginning of year................ $ 862 $ 315 Actual return on plan assets.................................. 30 47 Employer contribution......................................... 592 520 Benefits paid................................................. (29) (20) Fair value of plan assets at end of year...................... $1,455 $ 862 Reconciliation of Funded Status 2000 1999 - ------------------------------- ------ ----- Funded status................................................. $ (490) $(594) Unrecognized net actuarial loss............................... 98 122 Unrecognized prior service cost............................... 169 191 Additional minimum liability, non-qualified plans............. (96) (80) Accrued benefit cost.......................................... $ (319) $(361)
The weighted average assumptions used in developing the projected benefit obligations were:
2000 1999 1998 ---- ---- ---- Discount rate.............................................. 7.00% 7.00% 7.00% Expected return on plan assets............................. N/A 9.00% 9.00% Increase in future compensation............................ 5.00% 5.00% 5.00% Cash balance interest credit rate.......................... 6.00% 6.00% 6.00%
17 EX-99.5 6 dex995.txt EXHIBIT F AS REFLECTED IN THE U5S EXIND. EXHIBIT F-1 ITEM 1--SCHEDULE OF INVESTMENTS At December 31, 2000 (Thousands of Dollars)
Principal Name of Issuer Title of Issue Amount -------------- -------------- --------- Dominion Resources, Inc. Dominion Resources Capital Trust I 7.83% Junior Subordinated Debentures......... $257,732 ======== Consolidated Natural Gas Company Dominion Transmission Non-negotiable notes: 6.20%--maturing September 30, 2010........... $ 50,000 6.95%--maturing November 30, 2027............ 14,000 6.75%--maturing November 30, 2008............ 13,959 9.5%--maturing serially November 30, 2001 to 2005......................................... 8,883 7.40%--maturing serially November 30, 2001 to 2015......................................... 71,250 8.95%--maturing serially September 30, 2004 to 2014...................................... 35,000 6.10%--maturing July 31, 2003................ 59,541 6.80%--maturing November 30, 2013............ 57,793 8.75%--maturing December 31, 2014............ 27,000 -------- Total unsecured debt......................... $337,426 ======== Dominion East Ohio Non-negotiable notes: 7.50%--maturing September 30, 2004........... $ 55,000 6.20%--maturing September 30, 2010........... 80,000 6.95%--maturing November 30, 2027............ 40,000 6.75%--maturing November 30, 2008............ 4,640 9.5%--maturing serially November 30, 2001 to 2005......................................... 2,953 7.40%--maturing serially November 30, 2001 to 2015......................................... 33,250 8.95%--maturing serially September 30, 2009 to 2019...................................... 20,000 6.10%--maturing July 31, 2003................ 30,220 6.80%--maturing November 30, 2013............ 29,946 8.75%--maturing December 31, 2014............ 2,250 -------- Total unsecured debt......................... $298,259 ======== Dominion Peoples Non-negotiable notes: 6.95%--maturing November 30, 2027............ $ 9,000 6.75%--maturing November 30, 2008............ 3,437 9.5%--maturing serially November 30, 2001 to 2005......................................... 2,188 8.95%--maturing serially September 30, 2009 to 2019...................................... 14,000 7.40%--maturing serially November 30, 2001 to 2015......................................... 14,250 6.80%--maturing November 30, 2013............ 37,430 6.10%--maturing July 31, 2003................ 26,039 6.85%--maturing September 30, 2026........... 25,000 -------- Total unsecured debt......................... $131,344 ========
Principal Name of Issuer Title of Issue Amount -------------- -------------- --------- Consolidated Natural Gas Company (continued) Dominion Hope Non-negotiable notes: 7.50%--maturing September 30, 2004........................... $ 4,200 6.95%--maturing November 30, 2027........................... 3,000 6.75%--maturing November 30, 2008........................... 1,505 9.5%--maturing serially November 30, 2001 to 2005...... 958 8.95%--maturing serially September 30, 2009 to 2019..... 3,000 7.40%--maturing serially November 30, 2001 to 2015...... 4,750 6.80%--maturing November 30, 2013........................... 12,097 6.10%--maturing July 31, 2003.. 6,420 6.85%--maturing September 30, 2026........................... 1,000 -------- Total unsecured debt........... $ 36,930 ======== Dominion Exploration & Production Non-negotiable notes: 7.50%--maturing September 30, 2004........................... $195,000 6.20%--maturing September 30, 2010........................... 25,000 6.95%--maturing November 30, 2027........................... 30,000 6.75%--maturing November 30, 2008........................... 50,000 8.95%--maturing serially September 30, 2001 to 2019..... 40,100 6.10%--maturing July 31, 2003.. 71,075 6.80%--maturing November 30, 2013........................... 8,500 6.85%--maturing September 30, 2026........................... 100,000 -------- Total unsecured debt........... $519,675 ======== CNG International Non-negotiable notes: 6.20%--maturing September 30, 2010........................... $ 15,000 ======== Dominion Energy, Inc. Dominion Energy Construction Company, Inc. Intercompany advances.......... $ 548 ======== Dominion Elwood, Inc. Intercompany advances.......... $(19,150) ======== Dominion Kincaid, Inc. Intercompany advances.......... $ 776 ======== Dominion Generation, Inc. Dominion Elwood II, Inc. Intercompany advances.......... $ 42,552 ======== Dominion Elwood, III, Inc. Intercompany advances.......... $ 70,369 ======== Virginia Electric & Power Company VP Capital Trust I Junior Subordinated Notes, Series 1995A, 8.05%............ $139,175 ======== VP Fuel Corporation Intercompany advances.......... $ 35,656 ========
EXHIBIT F-2 ITEM 4--SCHEDULE OF ACQUISITIONS, REDEMPTIONS OR RETIREMENTS OF SYSTEM SECURITIES Calendar Year 2000 (Thousands of Dollars) Consolidated Natural Gas Company
Number of Shares or Number of Principal Shares or Amount Principal Redeemed Name of Issuer and Title of Amount or Issue Acquired Retired Consideration Authorization - --------------------------- --------- --------- ------------- ------------------ CNG Service Company Non-negotiable notes: 6.10% Non-negotiable note due July 31, 2003 $ 795 $ 795 Rule 42 6.75% Non-negotiable note due November 30, 2008 1,611 1,611 Rule 42 7.50% Non-negotiable note due September 30, 2004 20,000 20,000 Rule 42 9.5% Non-negotiable notes due November 30, 2001 to 2005 1,266 1,266 Rule 42 ------- ------- $23,672 $23,672 ======= ======= Dominion Transmission Non-negotiable notes: 7.40% Non-negotiable note due November 30, 2000 $ 3,750 $ 3,750 Rule 42 9.5% Non-negotiable note due November 30, 2000 2,077 2,077 Rule 42 ------- ------- $ 5,827 $ 5,827 ======= ======= Dominion East Ohio Non-negotiable notes: 7.40% Non-negotiable note due November 30, 2000 $ 1,750 $ 1,750 Rule 42 9.5% Non-negotiable note due November 30, 2000 690 690 Rule 42 ------- ------- $ 2,440 $ 2,440 ======= ======= Dominion Peoples Non-negotiable notes: 7.40% Non-negotiable note due November 30, 2000 $ 750 $ 750 Rule 42 9.5% Non-negotiable note due November 30, 2000 511 511 Rule 42 ------- ------- $ 1,261 $ 1,261 ======= =======
Consolidated Natural Gas Company (continued)
Number of Shares or Number of Principal Shares or Amount Principal Redeemed Name of Issuer and Title of Amount or Issue Acquired Retired Consideration Authorization - --------------------------- --------- --------- ------------- ------------------ Dominion Hope Non-negotiable notes: 7.40% Non-negotiable note due November 30, 2000 $ 250 $ 250 Rule 42 9.5% Non-negotiable note due November 30, 2000 224 224 Rule 42 -------- -------- $ 474 $ 474 ======== ======== Dominion E&P Non-negotiable note: 8.95% Non-negotiable note due September 30, 2000 $ 4,450 $ 4,450 Rule 42 ======== ======== Virginia Natural Gas Non-negotiable notes: 6.2% Non-negotiable note due September 30, 2010 $ 55,000 $ 55,000 Release No. 35- 27241 (File 70-9477) 7.50% Non-negotiable note due September 30, 2004 37,000 37,000 Release No. 35- 27241 (File 70-9477) 6.85% Non-negotiable note due September 30, 2026 24,000 24,000 Release No. 35- 27241 (File 70-9477) -------- -------- $116,000 $116,000 ======== ========
INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Registration Statement of Dominion Resources, Inc. on Form U5S for the year ended December 31, 2000, filed pursuant to the Public Utility Holding Company Act of 1935, of our reports dated January 25, 2001, on the consolidated financial statements of Dominion Resources, Inc., appearing in and incorporated by reference in the Annual Report on Form 10-K of Dominion Resources, Inc. for the year ended December 31, 2000. Deloitte & Touche LLP Richmond, Virginia May 1, 2001 EX-99.6 7 dex996.txt EXHIBIT H AS REFLECTED IN THE U5S EXIND. EXHIBIT H-1 ---------------------------- Dominion Energy, Inc. ---------------------------- ------------- ---------------------------- 1% Limited Dominion Kincaid, Inc. Partnership - ------------- ---------------------------- Interest 99% General ------------- Partnership Interest - ------------- ---------------------------- Kincaid Generation, LLC ---------------------------- EXHIBIT H-2
------------- Dominion Energy Inc. ------------- -------------------------- --------------------------- --------- - -------------------- Dominion Elwood I, Inc Dominion Elwood II, Inc. Dominion Elwood III, Inc. -------------------------- --------------------------- --------- - -------------------- - --------------------- ---------------------- ---------------------- - -- 50% General 50% General 50% General Partnership Interest Partnership Interest Partnership Interest - ---------------------- ---------------------- ---------------------- - -- ------------- 1% Limited Partnership Interest - - ------------ ---------------------- ----------------------- ---- - -------------------- Elwood Energy I, LLC Elwood Energy II, LLC Elwood Energy III, LLC ---------------------- ----------------------- ---- - -------------------- - ------------ 99% General ------------------- ----------------- - -- Partnership 100% interest 100% interest Interest ------------------- ----------------- - -- - ------------ ----------------------- ---- - -------------------- Elwood Energy II, LLC Elwood Energy III, LLC ----------------------- ---- - --------------------
[GRAPH] CONSOLIDATED NATURAL GAS COMPANY RELATIONSHIP OF EXEMPT WHOLESALE GENERATOR TO OTHER SYSTEM COMPANIES CONSOLIDATED NATURAL GAS COMPANY (Wholly owned subsidiary) CNG INTERNATIONAL CORPORATION (Wholly owned subsidiary) CNG KAUAI, INC. (1% Limited (1% General Partnership Parntership Interest) Interest and 98% Limited Partnership Interest) KAUAI POWER PARTNERS, L.P. [GRAPH] CONSOLIDATED NATURAL GAS COMPANY RELATIONSHIP OF LATIN AMERICA FOREIGN UTILITY COMPANY TO OTHER SYSTEM COMPANIES CONSOLIDATED NATURAL GAS COMPANY (Wholly owned subsidiary) CNG INTERNATIONAL CORPORATION (8.29% General (16.5% Limited Partnership Partnership Interest) Interest) FONDELEC GENERAL PARTNER, L.P. (1% General Partnership Interest) THE LATIN AMERICA ENERGY AND ELECTRICITY FUND I, L.P. EX-99.7 8 dex997.txt EXHIBIT I AS REFLECTED IN THE U5S EXIND. EXHIBIT I-1 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) Financial Statements for the Years Ended December 31, 2000 and 1999 and Independent Auditors' Report INDEPENDENT AUDITORS' REPORT To the Members of Kincaid Generation, L.L.C.: We have audited the accompanying balance sheets of Kincaid Generation, L.L.C. (the "Company") (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) as of December 31, 2000 and 1999 and the related statements of operations, members' capital and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of Kincaid Generation, L.L.C. as of December 31, 2000 and 1999 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP March 10, 2001 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) BALANCE SHEETS
December 31, ------------------ 2000 1999 -------- -------- (In thousands) ASSETS Current assets: Restricted cash........................................... $ 21,343 $ 10 Accounts receivable....................................... 7,262 5,815 Note receivable........................................... 10,301 11,358 Interest receivable....................................... 179 74 Prepaid assets............................................ 359 388 Inventory................................................. 4,119 3,311 -------- -------- Total current assets.................................... 43,563 20,956 Property, plant & equipment: Land...................................................... 2,064 1,511 Building and facilities................................... 357,853 354,788 Construction in progress.................................. 214 0 Accumulated depreciation.................................. (26,054) (13,847) -------- -------- Net property, plant & equipment......................... 334,077 342,452 Deferred charges: Deferred charges.......................................... 7,321 7,321 Accumulated amortization.................................. (820) (518) Deposits.................................................. 24 34 -------- -------- Total deferred charges.................................. 6,525 6,837 -------- -------- Total assets............................................ $384,165 $370,245 ======== ======== LIABILITIES AND MEMBERS' CAPITAL Current liabilities: Current portion of long-term debt......................... $ 6,330 $ 6,213 Accounts payable.......................................... 4,989 6,854 Accrued interest.......................................... 843 863 -------- -------- Total current liabilities............................... 12,162 13,930 Long-term debt: Project financing debt.................................... 252,456 258,787 -------- -------- Total long-term debt.................................... 252,456 258,787 Members' capital: Members' capital.......................................... 119,547 97,528 -------- -------- Total members' capital.................................. 119,547 97,528 -------- -------- Total liabilities and members' capital.................. $384,165 $370,245 ======== ========
The accompanying notes are an integral part of the financial statements. 3 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) STATEMENTS OF OPERATIONS
For the Year For the Year Ended Ended December 31, December 31, 2000 1999 ------------ ------------ (In thousands) Revenues: Electric sales...................................... $83,489 $74,443 Interest income..................................... 1,566 587 ------- ------- Total revenues.................................... 85,055 75,030 Expenses: Operations.......................................... 27,504 24,469 Depreciation and amortization....................... 12,654 9,690 General and administrative.......................... 3,036 5,110 Property taxes...................................... 549 565 Interest............................................ 19,293 15,402 ------- ------- Total expenses.................................... 63,036 55,236 ------- ------- Net income........................................ $22,019 $19,794 ======= =======
The accompanying notes are an integral part of the financial statements. 4 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) STATEMENTS OF MEMBERS' CAPITAL
Dominion Dominion Energy, Kincaid, Total Inc. Inc. -------- -------- -------- (In thousands) Balance--February 27, 1998 (Inception)............. $ 0 $ 0 $ 0 ======== ====== ======== Capital withdrawals.............................. (2,100) 0 (2,100) 1998 net income.................................. 22,835 228 22,607 -------- ------ -------- Balance--December 31, 1998......................... $ 20,735 $ 228 $ 20,507 ======== ====== ======== Capital contributions............................ 56,999 570 56,429 1999 net income.................................. 19,794 198 19,596 -------- ------ -------- Balance--December 31, 1999......................... $ 97,528 $ 996 $ 96,532 ======== ====== ======== 2000 net income.................................. 22,019 220 21,799 -------- ------ -------- Balance--December 31, 2000......................... $119,547 $1,216 $118,331 ======== ====== ========
The accompanying notes are an integral part of the financial statements. 5 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) STATEMENTS OF CASH FLOWS
For the Year For the Year Ended Ended December 31, December 31, 2000 1999 ------------ ------------ (In thousands) Cash flows from operating activities: Net income......................................... $ 22,019 $ 19,794 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization.................... 12,654 9,690 Loss on sale of equipment........................ (16) 219 Changes in other balance sheet accounts: Restricted cash................................ (21,333) 6 Accounts receivable............................ (1,447) (757) Interest receivable............................ (105) 51 Prepaids....................................... 29 166 Inventory...................................... (808) (7) Deposits....................................... 10 (34) Accounts payable............................... (1,865) (8,232) Accrued interest............................... (20) 0 -------- -------- Net cash flows from operating activities......... $ 9,118 $ 20,896 -------- -------- Cash flows from financing activities: Retirement of debt................................. (6,214) 0 Contribution (distribution) from (to) parent....... 0 56,999 -------- -------- Net cash flows from (used in) financing activities...................................... $ (6,214) $ 56,999 -------- -------- Cash flows used in investing activities: Collections of notes receivable.................... 1,057 5,261 Capital expenditures............................... (3,961) (83,156) -------- -------- Net cash flows used in investing activities...... $ (2,904) $(77,895) -------- -------- Net (decrease) increase in cash...................... 0 0 Cash at beginning of period.......................... 0 0 -------- -------- Cash at end of period................................ $ 0 $ 0 ======== ========
The accompanying notes are an integral part of the financial statements. 6 KINCAID GENERATION, L.L.C. (A Wholly-Owned Subsidiary of Dominion Energy, Inc. and Dominion Kincaid, Inc.) (A Limited Liability Company) NOTES TO FINANCIAL STATEMENTS 1. Nature of Operations Kincaid Generation, L.L.C. (the "Company"), a Virginia limited liability company, was organized on March 18, 1996 to acquire, make improvements to and operate an 1,108 MW (net) coal-fired electric generating facility (the "Facility") located near Kincaid, Illinois. The Company is owned by Dominion Energy, Inc. ("Dominion Energy"), a wholly-owned subsidiary of Dominion Resources, Inc. ("Dominion Resources"), and Dominion Kincaid, Inc. ("Dominion Kincaid"), a wholly-owned subsidiary of Dominion Energy. The manager or managers of the Company are elected annually by the Members and each elected manager holds office until a successor is elected. Officers of the Company are elected from time to time, and hold offices until removed by vote of the manager or managers of the Company. The Federal Power Act ("FPA") gives the Federal Energy Regulatory Commission ("FERC") exclusive rate-making jurisdiction over virtually all wholesale sales of electricity and the transmission of electricity in interstate commerce. Pursuant to the FPA, all public utilities subject to the FERC's jurisdiction are required to file rate schedules with the FERC prior to commencement of wholesale sales of electricity. Because it will be making wholesale sales of electricity to ComEd, and ultimately to others, the Company is a public utility for purposes of the FPA. On October 4, 1996, as supplemented on December 11, 1996, the Company filed a rate schedule with the FERC covering sales to ComEd. On January 30, 1997, the FERC accepted the rate schedule for filing, thereby authorizing the Company to make sales of capacity and electric energy to ComEd. On January 22, 1999, the Company filed a rate schedule with the FERC seeking blanket authority to act as power marketer, generating, purchasing and selling or reselling, electricity at wholesale to customers including, but not limited to, ComEd. On February 24, 1999, the FERC accepted the rate schedule for filing, thereby authorizing the Company to make sales of energy and capacity to customers, including ComEd. The rate schedule was approved as a market-based rate schedule and, consequently, the FERC granted the Company waivers of the accounting, record-keeping and reporting requirements that are imposed on utilities with cost-based rate schedules. The FERC's order reserves the right to revoke the Company's market-based rate authority on a prospective basis if it is subsequently determined that the Company or its affiliates possess excessive market power. If the FERC were to revoke the Company's market-based rate authority it would be necessary for the Company to file the PPA as defined herein and any other power sales agreement as a cost-of-service rate schedule. In addition, the loss of market-based rate authority would subject the Company to the accounting, record-keeping and reporting requirements that are imposed on utilities with cost-based rate schedules. The Power Purchase Agreement ("PPA") between the Company and ComEd provides for the sale to ComEd of 1,108 MW of capacity and associated electric energy from the electric generating equipment and related structures and support equipment comprising the Facility with an original term of 15 years beginning February 27, 1998. Subject to dispatch by ComEd, during the PPA term the Company is required to deliver and sell, and ComEd is required to receive and purchase, all electric energy generated at the Facility or procured by the Company from other sources. During the PPA term, ComEd has the sole and exclusive right to receive and purchase electric energy generated by the Facility up to its current rating of 1,108 MW, and the Company may not, without the approval of ComEd, sell such capacity and electric energy to any entity other than ComEd. 7 KINCAID GENERATION, L.L.C. NOTES TO FINANCIAL STATEMENTS--(Continued) ComEd is obligated to pay the Company a monthly capacity payment (the "Capacity Charge") based on the Net Dependable Capacity of the Facility. The Capacity Charge is calculated generally to cover the Facility's fixed costs, including fixed operation and maintenance costs, debt service and return on investment. The Capacity Charge is subject to a proportional adjustment to the extent that the Facility's EAF, which measures the Facility's equivalent availability, varies from certain specified target levels (50% in the first two Contract Years, and thereafter 90% in summer months and 75% in non-summer months). The Capacity Charge is payable without regard to the level of dispatch by ComEd. If the Facility meets the EAF targets, the Company will receive 100% of the Capacity Charges. In addition to the Capacity Charge, ComEd is obligated to pay the Company a monthly energy payment (the "Energy Charge") based on the KWh of energy supplied to ComEd during the applicable month. To the extent ComEd provides the fuel to the Company at no cost under the Coal Supply Agreement ("CSA"), there is no fuel payment. The monthly energy payment for all KWh generated with ComEd-supplied fuel will then consist of non-fuel variable costs only. The Company entered into a 15 year CSA with ComEd pursuant to which ComEd is obligated to supply to the Company, free of charge, all coal required to produce the electric energy generated by the Facilitiy and sold to ComEd under the PPA, assuming that certain heat rate requirements are met. 2. Summary of Significant Accounting Policies Inventory Spare parts inventory is valued using the lower of the average cost method or market. Property, Plant & Equipment Property, plant and equipment is recorded at cost. Expenditures for maintenance and repairs are charged against operations as incurred. Depreciation on the Facility is computed using the straight-line method over a 30 year estimated useful life. Depreciation on new equipment and betterments is computed using the straight-line method over estimated useful lives ranging from 3 to 30 years. Deferred Charges Deferred charges consist of acquisition and financing costs incurred by the Company. These costs are being amortized on a straight-line basis over 22 to 30 years. Income Taxes Income or loss of the Company for income tax purposes is includable in the tax returns of the Members. Accordingly, no provision for income taxes has been made in the accompanying financial statements. Revenue Recognition Revenues are recognized on a monthly basis in accordance with the ComEd Power Purchase Agreement described in note 1. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and 8 KINCAID GENERATION, L.L.C. NOTES TO FINANCIAL STATEMENTS--(Continued) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently Issued Accounting Standards The Financial Accounting Standards Board (FASB) recently issued SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities--Deferral of the Effective Date of FASB Statement No. 133, which defers the effective date of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, and SFAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities. As a result, the Company must adopt SFAS No. 133 no later than January 1, 2001. SFAS No. 133 requires that derivative instruments (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at fair value. The statement requires that changes in a derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. The Company has determined that none of its contracts are subject to fair value accounting under SFAS No. 133, as amended. To the extent that any of the contracts are subject to fair value accounting in the future, implementing appropriate hedging strategies could possibly mitigate the potential impact on earnings volatility. 3. Restricted Funds Restricted cash represents funds that may only be disbursed with the approval of LaSalle Bank (the Collateral Agent). The use of cash for operating expenses is restricted by the requirements of the Depositary Agreement entered into as part of the Company's issuance of Senior Secured Bonds (see note 5). 4. Project Financing Debt Interest accrues on the $265,000,000 Senior Secured Bonds (the Bonds) due 2020 at a rate of 7.33% per annum. Interest is payable semiannually on June 15 and December 15 of each year. Principal on the bonds is payable in semiannual installments on each bond payment date occurring on or after June 15, 2000. Total interest paid (net of amounts capitalized of $0 and $4,022,000 for 2000 and 1999, respectively) for the periods ended December 31, 2000 and 1999 was $19,313,000 and $15,402,000, respectively. Total principal paid for the period ended December 31, 2000 was $6,214,000. The bond indebtedness is secured by a first priority lien on (i) substantially all of the Company's tangible and intangible assets, rights and interests in the Financing Documents and the Project Documents, insurance policies and proceeds thereof, assignable permits and governmental approvals and any after-acquired property and (ii) all ownership interests in the Company. Pursuant to the Indenture under which the Bonds were issued, the Bondholders will have no claim against or recourse to the Company's Members or their respective affiliates, except to the extent of their respective obligations under the Financing Documents and the Project Documents and the pledge of their ownership interests in the Company. The Bonds are subject to mandatory redemption, in whole or in part, at 100% of their principal amount plus accrued interest in the event that the Company receives certain Loss Proceeds, Title Proceeds or Eminent Domain Proceeds, in each case, to the extent of such proceeds or damages. Such mandatory redemptions of the Bonds will be without premium or penalty. The Bonds are subject to optional redemption, in whole or in part, at any time, at 100% of their principal amount plus (i) accrued interest and (ii) a "make-whole premium", which is calculated using a discount rate equal to the applicable rate on U.S. Treasury securities (based on U.S. Treasury securities having an interpolated final maturity equal to the remaining average life of the Bonds) plus 0.50%. 9 KINCAID GENERATION, L.L.C. NOTES TO FINANCIAL STATEMENTS--(Continued) Maturities through the year 2005 are as follows: 2001--$6,330,000; 2002-- $6,778,000; 2003--$7,244,000; 2004--$7,757,000; 2005--$8,301,000, and thereafter. 5. Related Parties During 2000 and 1999, the Company incurred costs of $14,822,000 and $15,203,000, respectively, under the Operation and Maintenance Agreement with Dominion Energy Services Company, Inc. At December 31, 2000 and 1999, $2,774,000 and $4,099,000, respectively, is included in accounts payable related to these costs. Dominion Energy Services Company, Inc. is a wholly owned subsidiary of Dominion Energy. During 2000, the Company was refunded costs of $4,580,000 and during 1999, the Company incurred costs of $65,076,000, for engineering and construction services under the Engineering, Procurement and Construction Services Agreement dated February 27, 1998 with Dominion Energy Construction Company, Inc. Dominion Energy Construction Company, Inc. is a wholly owned subsidiary of Dominion Energy. The Company is permitted to make advances to Dominion Energy pursuant to the Deposit and Disbursement Agreement dated April 28, 1998. At December 31, 2000, $10,301,000 and $60,000 are included in notes receivable and interest receivable, respectively. At December 31, 1999 $11,358,000 and $52,000 were included in notes receivable and interest receivable, respectively. 6. Fair Value of Financial Instruments The fair value amounts of the Company's financial instruments have been determined using available market information and valuation methodologies deemed appropriate in the opinion of management. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions and/or estimation assumptions may have a material effect on the estimated fair value amounts. Restricted Cash and Note Receivable The carrying amount of these items is a reasonable estimate of their fair value. Short-Term Debt The carrying amount of short-term debt approximates fair market value. Long-Term Debt Interest rates currently available to the Company for issuance of debt with similar terms and remaining maturities were used by the Company to estimate fair value. Fair value estimates of long-term debt as of December 31, 2000 are:
Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Description 2000 2000 1999 1999 - ----------- ------------ ------------ ------------ ------------ Senior Secured Bonds........ $252,456,000 $240,993,144 $258,787,000 $243,676,000
10 ELWOOD ENERGY LLC Financial Statements for the years ended September 30, 2000 and 1999 and Independent Auditors' Report INDEPENDENT AUDITORS' REPORT To the Members of Elwood Energy LLC: We have audited the accompanying balance sheets of Elwood Energy LLC (the "Company") as of September 30, 2000 and 1999, and the related statements of operations, members' capital, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2000 and 1999, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP January 15, 2001 ELWOOD ENERGY LLC (A Limited Liability Company) Balance Sheets
- --------------------------------------------------------------------------------------- (In thousands) September 30, ASSETS 2000 1999 - --------------------------------------------------------------------------------------- Current assets: Cash $ 7,224 $ 7,722 Accounts receivable 9,145 23,898 Notes receivable 17,704 - Prepaid assets 60 120 Inventory - spare parts & other 244 172 Inventory - fuel 313 928 Other 1,269 - --------- --------- Total current assets 35,959 32,840 Property, plant & equipment: Land 3,765 3,729 Plant and equipment 187,701 187,469 Construction in progress 713 - Accumulated depreciation (11,318) (3,085) --------- --------- Net property, plant & equipment 180,861 188,113 - --------------------------------------------------------------------------------------- Total assets $ 216,820 $ 220,953 - ---------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Balance Sheets (continued)
- ------------------------------------------------------------------------------------------ (In thousands) September 30, LIABILITIES AND MEMBERS' CAPITAL 2000 1999 - ------------------------------------------------------------------------------------------ Current liabilities: Accounts payable $ 4,199 $ 3,352 Construction payable - 25,008 Accrued expenses 420 893 --------- --------- Total current liabilities 4,619 29,253 Members' capital: Members' capital 212,201 191,700 --------- --------- Total members' capital 212,201 191,700 - ------------------------------------------------------------------------------------------ Total liabilities and members' capital $ 216,820 $ 220,953 - ------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Statement of Operations
- --------------------------------------------------------------------------------------- For the Years Ended September 30, (In thousands) 2000 1999 - --------------------------------------------------------------------------------------- Operating revenues: Electric sales $ 56,849 $ 25,593 Fuel sales 6,152 5,588 --------- ---------- Total operating revenues 63,001 31,181 Operating expenses: Fuel 22,197 10,027 Operations 2,447 1,248 Depreciation 8,233 3,085 General and administrative 249 504 Other taxes 288 61 --------- ---------- Total operating expenses 33,414 14,925 - --------------------------------------------------------------------------------------- Operating income 29,587 16,256 - --------------------------------------------------------------------------------------- Other income: Interest income 913 51 Other income 1 721 --------- ---------- Total other income 914 772 - -------------------------------------------------------------------------------------- Net income $ 30,501 $ 17,028 - --------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Statement of Members' Capital
- ---------------------------------------------------------------------------------------------- (In thousands) Total Dominion Elwood, Inc. Peoples Elwood LLC - ---------------------------------------------------------------------------------------------- Balance - October 1, 1998 $ 28,347 $ 13,059 $ 15,288 Capital contributions 146,325 74,277 72,048 Net income 17,028 8,514 8,514 - ---------------------------------------------------------------------------------------------- Balance - September 30, 1999 $ 191,700 $ 95,850 $ 95,850 - ---------------------------------------------------------------------------------------------- Capital contributions Dividends (10,000) (5,000) (5,000) Net income 30,501 15,250 15,251 - ---------------------------------------------------------------------------------------------- Balance - September 30, 2000 $ 212,201 $ 106,100 $ 106,101 - ----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Statement of Cash Flows
- --------------------------------------------------------------------------------------------------- For the Years Ended September 30, (In thousands) 2000 1999 - --------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net Income $ 30,501 $ 17,028 Adjustments to reconcile net income to cash: Depreciation and amortization 8,233 3,085 Changes in current assets and liabilities: Accounts receivable 14,753 (23,898) Prepaids 60 (120) Inventory - spare parts (72) (172) Inventory - fuel 615 (928) Accounts payable 847 3,290 Construction payable (25,008) 25,008 Accrued expenses (473) 893 Other assets (1,269) - ------------------- ------------------- Net cash flows from operating activities 28,187 24,186 ------------------- ------------------- Cash flows from (used in) financing activities: Capital contributions 146,325 Dividends paid (10,000) ------------------- ------------------- Net cash flows from (used in) financing activities (10,000) 146,325 ------------------- ------------------- Cash flows (used in) investing activities: Capital expenditures (981) (173,032) Proceeds from sale of fixed assets 7,923 Net Cash (Loaned)/Repaid on Note Receivable (17,704) 2,300 ------------------- ------------------- Net cash flows (used in) investing activities (18,685) (162,809) ------------------- ------------------- Net increase (decrease) in cash (498) 7,702 Cash at beginning of year 7,722 20 ------------------- ------------------- Cash at end of year $ 7,224 $ 7,722 =================== ===================
The accompanying notes are an integral part of the financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements 1. Nature of Operations -------------------- Elwood Energy LLC (the "Company"), a Delaware limited liability company, was organized on May 13, 1998. Its Members are Dominion Elwood, Inc., a wholly owned subsidiary of Dominion Energy Inc. ("DEI"), and Peoples Elwood LLC, an indirect, wholly-owned subsidiary of Peoples Energy Resource Corp. ("PERC"). Pursuant to an Operating Agreement dated July 23, 1998, Dominion Elwood and Peoples Elwood became sole members of the Company. Each Member owns a 50% interest in the profits, losses and distributions made by the Company. The permitted purposes of the Company are: (i) to own and develop 620 MW of simple cycle electric power generating peaking facilities and thereafter up to 2,500 MW of additional combined cycle and simple cycle electric power generating facilities located near Elwood, Illinois; (ii) to purchase and sell fuel, electricity and capacity, and to operate and manage the facility and (iii) to engage in any other activities permitted by law. The Company is managed by a Management Committee which has the full, exclusive and complete authority to manage, direct and control the business and affairs of the Company. The Management Committee consists of two managers, one appointed by each Member. Unanimous approval of the managers is required for the Management Committee to act and each manager has the number of votes equal to its Member's percentage interest. If the Members reach a material deadlock, and the senior executives of DEI and PERC are not able to resolve the dispute, then either party can offer to sell its interest in the Company to the other Member at a stated price in accordance with the provisions of the Operating Agreement. The Company was granted exempt wholesale generator ("EWG") status by the Federal Energy Regulatory Commission ("FERC") pursuant to the Public Utility Holding Company Act ("PUHCA") of 1935 on March 5, 1999. The Company is therefore not considered to be an electric utility for purposes of PUHCA and accordingly ownership of an interest in an EWG does not subject the owners to regulation as a utility holding company. The Federal Power Act ("FPA") gives FERC exclusive rate-making jurisdiction over virtually all wholesale sales of electricity and the transmission of electricity in interstate commerce. Pursuant to the FPA, all public utilities subject to the FERC's jurisdiction are required to file rate schedules with the FERC prior to commencement of wholesale sales of electricity. Because it will be making wholesale sales of electricity to Commonwealth Edison ("ComEd") and Engage Energy US ("Engage"), and ultimately to others, the Company is a public utility for purposes of the FPA. On February 3, 1999, the Company filed a proposed market-based rate schedule with the FERC. On April 5, 1999, FERC issued an order accepting the Company's proposed rate schedule, thereby authorizing the Company to make wholesale sales of electricity at ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements negotiated rates to any party other than Virginia Power, the electric utility affiliate of DEI. The Company was allowed to begin making sales under the rate schedule as of April 5, 1999, the effective date of FERC's order. The Company is primarily a peaking facility, providing more energy when demand is highest. The Company has contracted to sell 100% of the generation capacity and electric energy output to ComEd and Engage pursuant to two separate power sales agreements each extending through December 31, 2004. Payments from both ComEd and Engage are comprised of a fixed capacity payment based on fixed rates per kilowatt and an energy component based on fixed rates per megawatt hour delivered. The Company's primary fuel is natural gas. Its fuel requirements are served through three types of contracted services (i) Gas Transportation and Balancing Services Agreement with NICOR; (ii) physical fuel supply with various market participants and (iii) the Fuel Management Services Agreement with KN Marketing L.P. As of September 30, 2000 there are no purchase commitments outstanding for commodity purchases of natural gas. 2. Summary of Significant Accounting Policies ------------------------------------------ Cash ---- Cash consists of amounts on deposit net of outstanding checks and deposits in transit. Inventory --------- Spare parts and fuel inventory are valued at the lower of cost or market, with cost based on the average valuation method. Property, Plant & Equipment --------------------------- Property, plant and equipment is recorded at cost. The costs of major additions and improvements are capitalized. Replacements, maintenance and repairs which do not improve or extend the life of the respective assets are expensed in the period incurred. Depreciation on the facility is computed using the straight-line method. Estimated service lives of principal items of property and equipment range from 5 to 30 years. Income Taxes ------------ Income or loss of the Company for income tax purposes is includable in the tax returns of the Members. Accordingly, no provision for income taxes has been made in the accompanying financial statements. ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements Revenue Recognition ------------------- Generation revenue is recognized when electricity is delivered. The Company records capacity revenues based on estimated operating hours of the plan, in accordance with Emerging Issues Task Force (EITF) Issue No. 91-6, Revenue Recognition of Long-Term Power Sales Contracts. Estimates --------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Derivatives ----------- The Company enters into commodity natural gas options, collars and swaps as a hedge against fluctuations in natural gas prices occurring in future periods. Gains and losses from contracts are recognized in the financial statements as an addition or a reduction to the cost of fuel expense. Gains of $4 million and $0 were recognized as a reduction to fuel expense for the years ended September 30, 2000 and 1999, respectively. Recent Accounting Pronouncements -------------------------------- In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, which is effective for all fiscal years beginning after June 15, 2000. SFAS 133 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. All derivatives, whether designated in hedging relationships or not, will be required to be recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and the hedged item will be recognized in earnings. If the derivative is designated as a cash flow hedge, changes in the fair value of the derivative will be recorded in other comprehensive income (OCI) and will be recognized in the income statement when the hedged item affects earnings. SFAS 133 defines new requirements for designation and documentation of hedging relationships as well as on going effectiveness assessments in order to use hedge accounting. A derivative that does not qualify as a hedge will be marked to fair value through earnings. ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements The Company estimates that at October 1, 2000, it will record $2,450,100 in OCI and $158,600 in the income statement as a Cumulative Effect of Accounting Change for the accumulated transition adjustment for designated cash flow hedges. 3. Related Parties --------------- During 2000 and 1999 the Company incurred costs of $1,040,000 and $422,000, respectively, under the Operation and Maintenance Agreement with Dominion Elwood Services Company, Inc. At September 30, 2000 and 1999, $406,000 and $210,000, respectively, is included in accounts payable related to these costs. Dominion Elwood Services Company is a wholly owned subsidiary of DEI. During 2000 and 1999 the Company incurred costs of $91,000 and $237, 000, respectively, for general management services from DEI under the provisions of Article IV of the Operating Agreement between Peoples Elwood and Dominion Elwood. At September 30, 2000 and 1999, $18,000 and $50, 000, respectively, is included in accounts payable related to these costs. During 1999 the Company incurred costs of $388,000 for basic rent and property taxes to The Peoples Gas Light and Coke Company pursuant to a ground lease dated September 30, 1998. A one-time payment was made of $322,000 for rent covering a term of 99 years. At September 30, 1999, $66,000 is included in accounts payable related to the property taxes on the lease. The Peoples Gas Light and Coke Company is a wholly owned subsidiary of Peoples Energy Corporation. Additionally the Company incurred costs of $47,000 for common facility fees from The Peoples Gas Light and Coke Company under the Common Facilities Agreement dated April 16, 1999. At September 30, 1999, $5,000 is included in accounts payable related to these costs. Additionally the Company incurred costs of $124,000 for general construction related expenses paid to The Peoples Gas Light and Coke Company. The Company entered into an Easement Agreement to construct, maintain and operate an electric transmission line on property maintained by The Peoples Gas Light and Coke Company for a one-time fee of $43,000. During 2000 and 1999 the Company incurred costs of $203,000 and $384,000, respectively, for reimbursement of legal and other expenses provided through PERC. At September 30, 2000, $10,000 is included in accounts payable related to these costs. The Company made advances to DEI during 2000. At September 30, 2000 and 1999 advances were $17,704,000 and $0, respectively. The related accrued interest receivable at September 30, 2000 was $105,000. ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements 4. Financial Instruments --------------------- Fair Values ----------- The fair value amounts of the Company's financial instruments have been determined using available market information and valuation methodologies deemed appropriate in the opinion of management. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions and/or estimation assumptions may have a material effect on the estimated fair value amounts. Cash and Notes Receivable: The carrying amount of these items is a reasonable estimate of their fair value. Derivatives and Price Risk Management Activities ------------------------------------------------ The Company's price risk management activities include OTC price swap agreements and options, which require settlement in cash. These instruments are used to manage commodity price risk regarding the purchase of natural gas. Options Contracts ----------------- At September 30, 2000, the Company utilized call options contracts covering 2,440,000 mmBTUs of gas maturing in 2001 and a collar covering 1,220,000 mmBTUs of gas expiring in 2002. The Company's net unrealized gain related to its use of options contracts was approximately $1.9 million at September 30, 2000. Swap Agreements --------------- In addition to options contracts, the Company enters into OTC price swap agreements to manage its exposure to commodity price risk for the anticipated future purchases of gas. At September 30, 2000, the Company had swap agreements maturing in 2003 and 2004. Net notional quantities at September 30, 2000 related to those swap agreements in which the Company pays a fixed price in exchange for a variable price totaled 3,680,000 mmBTUs. The Company's unrealized gain related to swap agreements was approximately $.7 million at September 30, 2000. ELWOOD ENERGY LLC (A Limited Liability Company) Notes to Financial Statements Market and Credit Risk ---------------------- Price risk management activities expose the Company to market risk. Market risk represents the potential loss that can be caused by the change in market value of a particular commitment. Price risk management activities also expose the Company to credit risk. Credit risk represents the potential loss that the Company would incur as a result of nonperformance by counterparties pursuant to the terms of their contractual obligations. The Company maintains credit policies with respect to its counterparties that management believes minimize overall credit risk. Such policies include the evaluation of a prospective counterparty's financial condition. The Company also monitors the financial condition of existing counterparties on an ongoing basis. Considering the system of internal controls in place, the Company believes it is unlikely that a material adverse effect on its financial position, results of operations or cash flows would occur as a result of counterparty nonperformance. EXHIBIT I-3 KAUAI POWER PARTNERS, L.P. BALANCE SHEET
December 31, 2000 ------------- (Unaudited) ASSETS CURRENT ASSETS: Cash........................................................... $ 10,000.00 PROPERTY, PLANT AND EQUIPMENT: Construction work in progress.................................. 2,491,325.51 ------------- Total assets................................................. $2,501,325.51 ============= LIABILITIES AND PARTNERS' EQUITY CURRENT LIABILITIES.............................................. $ -- PARTNERS' EQUITY: Capital--CNG Kauai, Inc.--Limited partnership.................. 2,451,299.01 Capital--CNG Kauai, Inc.--General partnership.................. 25,013.25 Capital--CNG International--Limited partnership................ 25,013.25 ------------- Total partners' equity....................................... 2,501,325.51 ------------- Total liabilities and partners' equity....................... $2,501,325.51 =============
EXHIBIT I-4 The Registrant has been informed that the annual report of The Latin America Energy and Electricity Fund I, L.P., for the year ended December 31, 2000, has not yet been finalized as of May 1, 2001, the date of this filing. The Registrant will file the annual report of The Latin America Energy and Electricity Fund I, L.P., by amendment to Form U5S as soon as the completed report is received. The Registrant anticipates that such amendment will be filed on or before May 30, 2001. -----END PRIVACY-ENHANCED MESSAGE-----