Derivatives and Hedge Accounting Activities (Tables)

12 Months Ended

Dec. 31, 2012

The following table presents the volume of Dominion's derivative activity as of December 31, 2012. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	249		68
Basis⁽¹⁾	786		534
Electricity (MWh):
Fixed price⁽¹⁾	20,100,938		12,582,674
FTRs	46,851,683		—
Capacity (MW)	151,025		148,461
Liquids (gallons)⁽²⁾	164,682,000		145,698,000
Interest rate	$	1,500,000,000	$	2,250,000,000


(1)	Includes options.


(2)	Includes NGLs and oil.

Cash Flow Hedges Included Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion's Consolidated Balance Sheet at December 31, 2012:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(28	)	$	(24	)	27 months
Electricity	68			17			36 months
Other	3			2			41 months
Interest rate	(165		)	(21		)	361 months
Total	$	(122	)	$	(26	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present the fair values of Dominion's derivatives and where they are presented in its Consolidated Balance Sheets:



At December 31, 2012	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
ASSETS
Current Assets
Commodity	$	103	$	379	$	482
Interest rate	36		—		36
Total current derivative assets	139		379		518
Noncurrent Assets
Commodity	130		123		253
Interest rate	57		—		57
Total noncurrent derivative assets⁽¹⁾	187		123		310
Total derivative assets	$	326	$	502	$	828
LIABILITIES
Current Liabilities
Commodity	$	103	$	341	$	444
Interest rate	66		—		66
Total current derivative liabilities	169		341		510
Noncurrent Liabilities
Commodity	58		93		151
Total noncurrent derivative liabilities⁽²⁾	58		93		151
Total derivative liabilities	$	227	$	434	$	661
At December 31, 2011

ASSETS
Current Assets
Commodity	$	176	$	495	$	671
Interest rate	34		—		34
Total current derivative assets	210		495		705
Noncurrent Assets
Commodity	198		96		294
Interest rate	71		—		71
Total noncurrent derivative assets⁽¹⁾	269		96		365
Total derivative assets	$	479	$	591	$	1,070
LIABILITIES
Current Liabilities
Commodity	$	162	$	530	$	692
Interest rate	222		37		259
Total current derivative liabilities	384		567		951
Noncurrent Liabilities
Commodity	118		78		196
Interest rate	—		10		10
Total noncurrent derivative liabilities⁽²⁾	118		88		206
Total derivative liabilities	$	502	$	655	$	1,157


(1)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion's Consolidated Balance Sheets.


(2)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion's Consolidated Balance Sheets.

Derivative Instruments Gain (Loss) by Hedging Relationship by Income Statement Location

The following tables present the gains and losses on Dominion's derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships Year Ended December 31, 2012	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)
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	188
Purchased gas				(75		)
Electric fuel and other energy-related purchases				(17		)
Total commodity	$	71		$	96		$	10
Interest rate⁽³⁾	(84		)	(2		)	(35		)
Total	$	(13	)	$	94		$	(25	)
Year Ended December 31, 2011

Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	153
Purchased gas				(78		)
Electric fuel and other energy-related purchases				(2		)
Purchased electric capacity				1
Total commodity	$	137		$	74		$	(20	)
Interest rate⁽³⁾	(252		)	(8		)	(143		)
Total	$	(115	)	$	66		$	(163	)
Year Ended December 31, 2010

Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	557
Purchased gas				(155		)
Electric fuel and other energy-related purchases				(8		)
Purchased electric capacity				3
Total commodity	$	139		$	397		$	(17	)
Interest rate⁽³⁾	(3		)	109			(27		)
Foreign currency⁽⁴⁾	—			1			(2		)
Total	$	136		$	507		$	(46	)


(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



Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2012			2011			2010
(millions)
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue	$	168		$	111		$	67
Purchased gas	(14		)	(35		)	(41		)
Electric fuel and other energy-related purchases	(40		)	(45		)	51
Interest rate⁽²⁾	17			(5		)	(37		)
Total	$	131		$	26		$	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.

Virginia Electric and Power Company

Derivative [Line Items]

Volumes of Derivatives

The following table presents the volume of Virginia Power's derivative activity at December 31, 2012. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price	16		—
Basis	8		—
Electricity (MWh):
Fixed price	709,600		—
FTRs	43,570,739		—
Capacity (MW)	107,000		93,800
Interest rate	$	500,000,000	$	250,000,000

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present the fair values of Virginia Power's derivatives and where they are presented in its Consolidated Balance Sheets:



At December 31, 2012	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
ASSETS
Current Assets
Commodity	$	1	$	5	$	6
Total current derivative assets⁽¹⁾	1		5		6
Total derivative assets	$	1	$	5	$	6
LIABILITIES
Current Liabilities
Commodity	$	5	$	3	$	8
Interest rate	25		—		25
Total current derivative liabilities	30		3		33
Noncurrent Liabilities
Commodity	1		—		1
Total noncurrent derivative liabilities⁽²⁾	1		—		1
Total derivative liabilities	$	31	$	3	$	34
At December 31, 2011
ASSETS
Current Assets
Commodity	$	—	$	2	$	2
Total current derivative assets⁽¹⁾	—		2		2
Total derivative assets	$	—	$	2	$	2
LIABILITIES
Current Liabilities
Commodity	$	14	$	31	$	45
Interest rate	$	53	$	37	$	90
Total current derivative liabilities	67		68		135
Noncurrent Liabilities
Commodity	2		—		2
Interest rate	—		10		10
Total noncurrent derivative liabilities⁽²⁾	2		10		12
Total derivative liabilities	$	69	$	78	$	147


(1)	Current derivative assets are presented in other current assets in Virginia Power's Consolidated Balance Sheets.


(2)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power's Consolidated Balance Sheets.

Derivative Instruments Gain (Loss) by Hedging Relationship by Income Statement Location

The following tables present the gains and losses on Virginia Power's derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships Year Ended December 31, 2012	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)
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(4	)
Total commodity	$	(2	)	$	(4	)	$	10
Interest rate⁽³⁾	(6		)	—			(35		)
Total	$	(8	)	$	(4	)	$	(25	)
Year Ended December 31, 2011
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Purchased electric capacity				1
Total commodity	$	(3	)	$	—		$	(20	)
Interest rate⁽³⁾	(6		)	1			(143		)
Total	$	(9	)	$	1		$	(163	)
Year Ended December 31, 2010
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Purchased electric capacity				4
Total commodity	$	(1	)	$	3		$	(17	)
Interest rate⁽³⁾	(1		)	9			(27		)
Foreign currency⁽⁴⁾	—			—			(2		)
Total	$	(2	)	$	12		$	(46	)


(1)	Amounts deferred into AOCI have no associated effect in Virginia Power'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 Virginia Power's Consolidated Statements of Income.


(3)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in interest and related charges.


(4)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.

Schedule Of Derivatives Not Designated As Hedging Instruments



Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2012			2011			2010
(millions)
Derivative Type and Location of Gains (Losses)
Commodity⁽²⁾	$	(50	)	$	(45	)	$	51
Interest rate⁽³⁾	—			(5		)	(3		)
Total	$	(50	)	$	(50	)	$	48


(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power's Consolidated Statements of Income.


(2)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.


(3)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in interest and related charges.

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details