Operating Segments

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Operating Segments

Operating Segments

Dominion and Virginia Power are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

Primary Operating Segment	Description of Operations	Dominion	Virginia Power
DVP	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Nonregulated retail energy marketing (electric and gas)	X
Dominion Generation	Regulated electric fleet	X	X
	Merchant electric fleet	X
Dominion Energy	Gas transmission and storage	X
	Gas distribution and storage	X
	LNG import and storage	X
	Producer services	X

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

The Corporate and Other Segment of Dominion includes its corporate, service company and other functions (including unallocated debt) and certain specific items that are not included in profit measures evaluated by executive management in assessing segment performance or allocating resources among the segments.

In the three months ended March 31, 2012, Dominion reported an after-tax net benefit of $7 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segments. In the three months ended March 31, 2011, Dominion reported after-tax net expenses of $62 million for specific items in the Corporate and Other segment, with $54 million of these net expenses attributable to its operating segments.

There were no material net benefit or expense items in the Corporate and Other segment in 2012.

The net expenses for specific items in 2011 primarily related to the impact of the following items:

• A $55 million ($39 million after-tax) impairment charge related to State Line, attributable to Dominion Generation; and

• A $32 million ($19 million after-tax) loss from the operations of Kewaunee, attributable to Dominion Generation.  Kewaunee's results of operations have been reflected in the Corporate and Other segment due to Dominion's decision in the first quarter of 2011 to pursue the sale of Kewaunee.

The Corporate and Other Segment of Virginia Power primarily includes certain specific items that are not included in profit measures evaluated by executive management in assessing segment performance or allocating resources among the segments. In the three months ended March 31, 2012, Virginia Power reported an after-tax benefit of $1 million for specific items attributable to its operating segments in the Corporate and Other segment. Virginia Power recorded no such amounts in its Corporate and Other segment during the three months ended March 31, 2011.

The following table presents segment information pertaining to Dominion’s operations:

	DVP		Dominion Generation		Dominion Energy		Corporate and Other			Adjustments/Eliminations			Consolidated Total
(millions)
Three Months Ended March 31,
2012
Total revenue from external customers	$	930	$	1,675	$	616	$	39		$	232		$	3,492
Intersegment revenue	63		76		200		149			(488		)	—
Total operating revenue	993		1,751		816		188			(256		)	3,492
Net income (loss) attributable to Dominion	166		223		149		(44		)	—			494
2011
Total revenue from external customers	$	1,051	$	1,863	$	834	$	36		$	273		$	4,057
Intersegment revenue	95		70		208		143			(516		)	—
Total operating revenue	1,146		1,933		1,042		179			(243		)	4,057
Net income (loss) attributable to Dominion	149		298		169		(137		)	—			479

Intersegment sales and transfers for Dominion are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation.

The following table presents segment information pertaining to Virginia Power’s operations:

	DVP		Dominion Generation		Corporate and Other		Consolidated Total
(millions)
Three Months Ended March 31,
2012
Operating revenue	$	459	$	1,295	$	—	$	1,754
Net income	107		133		3		243
2011
Operating revenue	$	453	$	1,304	$	—	$	1,757
Net income	113		165		—		278