Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following table presents Dominion’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

	Level 1		Level 2		Level 3		Total
(millions)
At September 30, 2011
Assets
Derivatives:
Commodity	$	34	$	623	$	107	$	764
Interest rate	—		103		—		103
Investments(1):
Equity securities:
U.S.:
Large cap	1,551		—		—		1,551
Other	45		—		—		45
Non-U.S.:
Large cap	11		—		—		11
Fixed Income:
Corporate debt instruments	—		310		—		310
U.S. Treasury securities and agency debentures	309		175		—		484
State and municipal	—		296		—		296
Other	—		29		—		29
Cash equivalents and other	1		69		—		70
Restricted cash equivalents	—		204		—		204
Total assets	$	1,951	$	1,809	$	107	$	3,867
Liabilities
Derivatives:
Commodity	$	7	$	728	$	149	$	884
Interest Rate	—		236		—		236
Total liabilities	$	7	$	964	$	149	$	1,120
At December 31, 2010
Assets
Derivatives:
Commodity	$	62	$	734	$	47	$	843
Interest rate	—		54		—		54
Investments(1):
Equity securities:
U.S.:
Large cap	1,709		—		—		1,709
Other	56		—		—		56
Non-U.S.:
Large cap	12		—		—		12
Fixed Income:
Corporate debt instruments	—		327		—		327
U.S. Treasury securities and agency debentures	228		165		—		393
State and municipal	—		286		—		286
Other	—		19		—		19
Cash equivalents and other	25		97		—		122
Restricted cash equivalents	—		400		—		400
Total assets	$	2,092	$	2,082	$	47	$	4,221
Liabilities
Derivatives:
Commodity	$	12	$	716	$	97	$	825
Interest rate	—		5		—		5
Total liabilities	$	12	$	721	$	97	$	830

(1) Includes investments held in the nuclear decommissioning and rabbi trusts.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Dominion's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
(millions)
Beginning balance	$	(122	)	$	32		$	(50	)	$	(66	)
Total realized and unrealized gains (losses):
Included in earnings	(16		)	27			(24		)	40
Included in other comprehensive income (loss)	75			(65		)	16			20
Included in regulatory assets/liabilities	(3		)	(13		)	(35		)	1
Settlements	24			(23		)	47			(41		)
Transfers out of Level 3	—			25			4			29
Ending balance	$	(42	)	$	(17	)	$	(42	)	$	(17	)
The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	$	7		$	4		$	29		$	(3	)

Fair Value, Unobservable Inputs, Gain (Loss) Included In Earnings

The following table presents Dominion's gains and losses included in earnings in the Level 3 fair value category:

	Operating revenue			Electric fuel and other energy-related purchases			Purchased  gas			Total
(millions)
Three Months Ended September 30, 2011
Total gains (losses) included in earnings	$	(8	)	$	(8	)	$	—		$	(16	)
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	7			—			—			7
Three Months Ended September 30, 2010
Total gains (losses) included in earnings	$	5		$	22		$	—		$	27
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	4			—			—			4
Nine Months Ended September 30, 2011
Total gains (losses) included in earnings	$	(8	)	$	(16	)	$	—		$	(24	)
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	29			—			—			29
Nine Months Ended September 30, 2010
Total gains (losses) included in earnings	$	(5	)	$	49		$	(4	)	$	40
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date	(3		)	—			—			(3		)

Cost and Fair Value of Financial Instruments Disclosure

For Dominion’s and Virginia Power’s financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

	September 30, 2011				December 31, 2010
	Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)
(millions)
Dominion
Long-term debt, including securities due within one year(2)	$	16,745	$	19,381	$	14,520	$	16,112
Junior subordinated notes payable to affiliates	268		275		268		261
Enhanced junior subordinated notes	1,467		1,539		1,467		1,560
Subsidiary preferred stock(3)	257		262		257		249
Virginia Power
Long-term debt, including securities due within one year(2)	$	6,868	$	8,233	$	6,717	$	7,489
Preferred stock(3)	257		262		257		249

(1) Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. The carrying amount of debt issues with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2) Includes amounts which represent the unamortized discount and premium. At September 30, 2011 and December 31, 2010, includes the valuation of certain fair value hedges associated with Dominion’s fixed rate debt of approximately $103 million and $49 million, respectively.

(3) Includes issuance expenses of $2 million at September 30, 2011 and December 31, 2010.