XML 50 R31.htm IDEA: XBRL DOCUMENT v2.3.0.15
Derivatives and Hedge Accounting Activities (Tables)
9 Months Ended
Sep. 30, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract] 
Volumes of Derivative Activity
 
Current
 
Noncurrent
Natural Gas (bcf):
 
 
 
Fixed price(1)
257

 
67

Basis
891

 
405

Electricity (MWh):
 
 
 
       Fixed price(1)
20,137,147

 
23,255,392

FTRs
78,993,580

 
779,328

Capacity (MW)
155,416

 
289,585

Liquids (gallons)(2)
138,516,000

 
281,064,000

Interest rate
$
1,600,000,000

 
$
2,690,000,000

(1)
Includes options.
(2)
Includes NGLs and oil.

Fair Value of Derivatives
The following table presents the fair values of Dominion’s derivatives and where they are presented in its Consolidated Balance Sheets: 
 
Fair Value –
Derivatives under
Hedge 
Accounting
 
Fair Value –
Derivatives not under
Hedge 
Accounting
 
Total Fair Value
(millions)
 
 
 
 
 
September 30, 2011
 
 
 
 
 
ASSETS
 
 
 
 
 
Current Assets
 
 
 
 
 
Commodity
$
150

 
$
412

 
$
562

Interest rate
36

 
—

 
36

 Total current derivative assets
186

 
412

 
598

Noncurrent Assets
 
 
 
 
 
Commodity
105

 
97

 
202

Interest rate
67

 
—

 
67

Total noncurrent derivative assets(1)
172

 
97

 
269

 Total derivative assets
$
358

 
$
509

 
$
867

LIABILITIES
 
 
 
 
 
Current Liabilities
 
 
 
 
 
Commodity
$
186

 
$
476

 
$
662

Interest rate
124

 
7

 
131

 Total current derivative liabilities(2)
310

 
483

 
793

Noncurrent Liabilities
 
 
 
 
 
Commodity
119

 
103

 
222

Interest rate
74

 
31

 
105

Total noncurrent derivative liabilities(3)
193

 
134

 
327

 Total derivative liabilities
$
503

 
$
617

 
$
1,120

December 31, 2010
 
 
 
 
 
ASSETS
 
 
 
 
 
Current Assets
 
 
 
 
 
Commodity
$
291

 
$
425

 
$
716

Interest rate
23

 
—

 
23

 Total current derivative assets
314

 
425

 
739

Noncurrent Assets
 
 
 
 
 
Commodity
44

 
83

 
127

Interest rate
31

 
—

 
31

Total noncurrent derivative assets(1)
75

 
83

 
158

 Total derivative assets
$
389

 
$
508

 
$
897

LIABILITIES
 
 
 
 
 
Current Liabilities
 
 
 
 
 
Commodity
$
178

 
$
455

 
$
633

 Total current derivative liabilities(2)
178

 
455

 
633

Noncurrent Liabilities
 
 
 
 
 
Commodity
86

 
106

 
192

Interest rate
5

 
—

 
5

Total noncurrent derivative liabilities(3)
91

 
106

 
197

 Total derivative liabilities
$
269

 
$
561

 
$
830

(1)
Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion’s Consolidated Balance Sheets.
(2)
Current derivative liabilities are presented in other current liabilities in Dominion's Consolidated Balance Sheets.
(3)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion’s Consolidated Balance Sheets.

Gains and Losses on Derivatives in Cash Flow Hedging Relationships

Derivatives in cash flow hedging relationships
Amount of Gain
(Loss) 
Recognized
in AOCI  on
Derivatives -
Effective
Portion(1)
 
Amount of Gain
(Loss) Reclassified
from AOCI to
Income
 
Increase
(Decrease) in
Derivatives
Subject to
Regulatory
Treatment(2)
(millions)
 
 
 
 
 
Three Months Ended September 30, 2011
 
 
 
 
 
Derivative Type and Location of Gains (Losses)
 
 
 
 
 
Commodity:
 
 
 
 
 
Operating revenue
 
 
$
28

 
 
Purchased gas
 
 
(7
)
 
 
Electric fuel and other energy-related purchases
 
 
2

 
 
Total commodity
$
69

 
23

 
$
(1
)
Interest rate(3)
(204
)
 
(8
)
 
(76
)
Total
$
(135
)
 
$
15

 
$
(77
)
Three Months Ended September 30, 2010
 
 
 
 
 
Derivative Type and Location of Gains (Losses)
 
 
 
 
 
Commodity:
 
 
 
 
 
Operating revenue
 
 
$
88

 
 
Purchased gas
 
 
(6
)
 
 
Electric fuel and other energy-related purchases
 
 
4

 
 
Purchased electric capacity
 
 
1

 
 
Total commodity
$
(5
)
 
87

 
$
(6
)
Interest rate(3)
—

 
—

 
1

Foreign currency(4)
—

 
—

 
—

Total
$
(5
)
 
$
87

 
$
(5
)
Nine Months Ended September 30, 2011
 
 
 
 
 
Derivative Type and Location of Gains (Losses)
 
 
 
 
 
Commodity:
 
 
 
 
 
Operating revenue
 
 
$
88

 
 
Purchased gas
 
 
(61
)
 
 
Electric fuel and other energy-related purchases
 
 
4

 
 
Purchased electric capacity
 
 
1

 
 
Total commodity
$
(24
)
 
32

 
$
(10
)
Interest rate(3)
(236
)
 
(8
)
 
(76
)
Total
$
(260
)
 
$
24

 
$
(86
)
Nine Months Ended September 30, 2010
 
 
 
 
 
Derivative Type and Location of Gains (Losses)
 
 
 
 
 
Commodity:
 
 
 
 
 
Operating revenue
 
 
$
383

 
 
Purchased gas
 
 
(122
)
 
 
Electric fuel and other energy-related purchases
 
 
(4
)
 
 
Purchased electric capacity
 
 
3

 
 
Total commodity
$
277

 
260

 
$
(17
)
Interest rate(3)
(3
)
 
109

 
(23
)
Foreign currency(4)
—

 
1

 
(2
)
Total
$
274

 
$
370

 
$
(42
)
(1)
Amounts deferred into AOCI have no associated effect in Dominion’s Consolidated Statements of Income.
(2)
Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion’s Consolidated Statements of Income.
(3)
Amounts recorded in Dominion’s Consolidated Statements of Income are classified in interest and related charges.
(4)
Amounts recorded in Dominion’s Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.

Schedule of Derivatives not Designated as Hedging Instruments
 
Amount of Gain (Loss) Recognized in Income on Derivatives(1)

 
Three Months Ended September 30,
Nine Months Ended September 30,
Derivatives not designated as hedging instruments
2011
 
2010
2011
 
2010
(millions)
 
 
 
 
 
 
Derivative Type and Location of Gains (Losses)
 
 
 
 
 
 
Commodity
 
 
 
 
 
 
Operating revenue
$
15

 
$
45

$
56

 
$
71

Purchased gas
(10
)
 
(13
)
(28
)
 
(42
)
Electric fuel and other energy-related purchases
(8
)
 
23

(16
)
 
48

Interest rate(2)
(4
)
 
—

(4
)
 
(37
)
Total
$
(7
)
 
$
55

$
8

 
$
40

(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion’s Consolidated Statements of Income.
(2)
Amounts recorded in Dominion’s Consolidated Statements of Income are classified in interest and related charges.

Cash Flow Hedge Gain Loss To Be Reclassified Within Twelve Months After Tax [Table Text Block]
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion’s Consolidated Balance Sheet at September 30, 2011:
 
AOCI
After-Tax
 
Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax
 
Maximum Term
(millions)
 
 
 
 
 
Commodities:
 
 
 
 
 
Gas
$
(19
)
 
$
(7
)
 
39 months
Electricity
38

 
21

 
51 months
NGLs
(39
)
 
(24
)
 
39 months
Other
6

 
1

 
44 months
Interest rate
(107
)
 
(5
)
 
375 months
Total
$
(121
)
 
$
(14
)