Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans funded status

The following table summarizes the changes in Dominion's pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans' funded status:



	Pension Benefits						Other Postretirement Benefits
Year Ended December 31,	2012			2011			2012			2011
(millions, except percentages)
Changes in benefit obligation:
Benefit obligation at beginning of year	$	4,981		$	4,490		$	1,493		$	1,707
Service cost	116			108			44			48
Interest cost	268			258			79			94
Benefits paid	(208		)	(215		)	(88		)	(83		)
Actuarial (gains) losses during the year	967			340			191			(210		)
Plan amendments	1			—			1			(70		)
Settlements and curtailments⁽²⁾	—			—			(6		)	(1		)
Medicare Part D reimbursement	—			—			5			5
Early Retirement Reimbursement Program	—			—			—			3
Benefit obligation at end of year	$	6,125		$	4,981		$	1,719		$	1,493
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	5,145		$	5,106		$	1,042		$	1,031
Actual return on plan assets	611			247			132			26
Employer contributions	5			7			16			19
Benefits paid	(208		)	(215		)	(34		)	(34		)
Fair value of plan assets at end of year	$	5,553		$	5,145		$	1,156		$	1,042
Funded status at end of year	$	(572	)	$	164		$	(563	)	$	(451	)
Amounts recognized in the Consolidated Balance Sheets at December 31:
Noncurrent pension and other postretirement benefit assets	701			677			1			4
Other current liabilities	(2		)	(3		)	(4		)	(3		)
Noncurrent pension and other postretirement benefit liabilities	(1,271		)	(510		)	(560		)	(452		)
Net amount recognized	$	(572	)	$	164		$	(563	)	$	(451	)
Significant assumptions used to determine benefit obligations as of December 31:
Discount rate	4.4		%	5.5		%	4.4		%	5.5		%
Weighted average rate of increase for compensation	4.21		%	4.21		%	4.22		%	4.22		%

Benefit obligation in excess of plan asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets:



	Pension Benefits				Other Postretirement Benefits
As of December 31,	2012		2011		2012		2011
(millions)
Benefit obligation	$	5,462	$	4,416	$	1,591	$	1,375
Fair value of plan assets	4,189		3,903		1,027		920

Accumulated benefit obligation in excess of plan assets

The following table provides information on the ABO and fair value of plan assets for pension plans with an ABO in excess of plan assets:


(1)	The increase from 2011 is primarily due to a decrease in the discount rate.

Benefit payments expected future service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:



	Estimated Future Benefit Payments
	Pension Benefits		Other Postretirement Benefits
(millions)
2013	$	231	$	89
2014	245		93
2015	255		96
2016	300		100
2017	334		103
2018-2022	1,749		555

Fair values of pension and post retirement plan assets by asset category

The fair values of Dominion's pension plan assets by asset category are as follows:



	Fair Value Measurements
	Pension Plans
At December 31,	2012								2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	—	$	195	—		$	195	1		$	84	—		$	85
U.S. equity:
Large Cap	927		104		—		1,031		805		123		—		928
Other	425		99		—		524		359		197		—		556
Non-U.S. equity:
Large Cap	313		68		—		381		253		58		—		311
Other	228		167		—		395		190		81		—		271
Fixed income:
Corporate debt instruments	27		1,026		—		1,053		36		834		—		870
U.S. Treasury securities and agency debentures	331		304		—		635		304		392		—		696
State and municipal	1		71		—		72		2		77		—		79
Other securities	5		43		—		48		8		40		—		48
Real estate:
REITs	29		—		—		29		16		—		—		16
Partnerships	—		—		321		321		—		—		304		304
Other alternative investments:
Private equity	—		—		456		456		—		—		448		448
Debt	—		—		192		192		—		—		243		243
Hedge funds	—		—		221		221		—		—		290		290
Total	$	2,286	$	2,077	$	1,190	$	5,553	$	1,974	$	1,886	$	1,285	$	5,145

The fair values of Dominion's other postretirement plan assets by asset category are as follows:



	Fair Value Measurements
	Other Postretirement Plans
At December 31,	2012								2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Cash equivalents	$	—	$	13	$	—	$	13	$	—	$	5	$	—	$	5
U.S. equity:
Large Cap	378		5		—		383		38		288		—		326
Other	21		45		—		66		17		44		—		61
Non-U.S. equity:
Large Cap	93		3		—		96		77		3		—		80
Other	11		8		—		19		9		4		—		13
Fixed income:
Corporate debt instruments	1		160		—		161		2		149		—		151
U.S. Treasury securities and agency debentures	16		266		—		282		14		246		—		260
State and municipal	—		9		—		9		—		6		—		6
Other securities	—		2		—		2		—		2		—		2
Real estate:
REITs	1		—		—		1		1		—		—		1
Partnerships	—		—		24		24		—		—		24		24
Other alternative investments:
Private equity	—		—		58		58		—		—		63		63
Debt	—		—		31		31		—		—		36		36
Hedge funds	—		—		11		11		—		—		14		14
Total	$	521	$	511	$	124	$	1,156	$	158	$	747	$	137	$	1,042

Pension plan and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category

The following table presents the changes in Dominion's pension and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category:



	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
	Pension Plans															Other Postretirement Plans
	Real Estate			Private Equity			Debt			Hedge Funds			Total			Real Estate			Private Equity			Debt			Hedge Funds			Total
Balance at December 31, 2009	$	344		$	344		$	241		$	388		$	1,317		$	26		$	54		$	36		$	19		$	135
Actual return on plan assets:
Relating to assets still held at the reporting date	8			56			27			27			118			—			9			2			1			12
Purchases	56			90			36			—			182			3			9			8			—			20
Sales	(137		)	(90		)	(42		)	(70		)	(339		)	(7		)	(11		)	(6		)	(3		)	(27		)
Balance at December 31, 2010	$	271		$	400		$	262		$	345		$	1,278		$	22		$	61		$	40		$	17		$	140
Actual return on plan assets:
Relating to assets still held at the reporting date	38			70			10			10			128			3			11			1			—			15
Relating to assets sold during the period	(8		)	(34		)	(10		)	(15		)	(67		)	—			(4		)	(1		)	(1		)
Purchases	57			76			34			48			215			3			8			3			2			16
Sales	(54		)	(64		)	(53		)	(98		)	(269		)	(4		)	(13		)	(7		)	(4		)	(28		)
Balance at December 31, 2011	$	304		$	448		$	243		$	290		$	1,285		$	24		$	63		$	36		$	14		$	137
Actual return on plan assets:
Relating to assets still held at the reporting date	21			46			17			21			105			1			3			4			1			9
Relating to assets sold during the period	(8		)	(41		)	(11		)	(2		)	(62		)	—			(1		)	—			—			(1		)
Purchases	35			79			15			—			129			2			6			1			—			9
Sales	(31		)	(76		)	(72		)	(88		)	(267		)	(3		)	(13		)	(10		)	(4		)	(30		)
Balance at December 31, 2012	$	321		$	456		$	192		$	221		$	1,190		$	24		$	58		$	31		$	11		$	124

Net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities

The components of the provision for net periodic benefit cost and amounts recognized in other comprehensive income and regulatory assets and liabilities are as follows:



	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2012			2011			2010			2012			2011			2010
(millions, except percentages)
Service cost	$	116		$	108		$	102		$	44		$	48		$	56
Interest cost	268			258			266			79			94			101
Expected return on plan assets	(430		)	(440		)	(410		)	(79		)	(79		)	(69		)
Amortization of prior service (credit) cost	3			3			3			(13		)	(13		)	(7		)
Amortization of net actuarial loss	132			96			59			6			12			12
Settlements and curtailments⁽¹⁾	—			—			136			(4		)	1			37
Special termination benefits⁽²⁾	—			—			10			—			—			1
Net periodic benefit (credit) cost	$	89		$	25		$	166		$	33		$	63		$	131
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	786		$	534		$	95		$	139		$	(157	)	$	13
Prior service (credit) cost	—			—			1			1			(70		)	—
Settlements and curtailments⁽¹⁾	—			—			(50		)	(2		)	(1		)	(1		)
Less amounts included in net periodic benefit cost:
Amortization of net actuarial loss	(132		)	(96		)	(59		)	(6		)	(12		)	(12		)
Amortization of prior service credit (cost)	(3		)	(3		)	(3		)	13			13			7
Total recognized in other comprehensive income and regulatory assets and liabilities	$	651		$	435		$	(16	)	$	145		$	(227	)	$	7
Significant assumptions used to determine periodic cost:
Discount rate	5.5		%	5.9		%	6.6		%	5.5		%	5.9		%	6.6		%
Expected long-term rate of return on plan assets	8.5		%	8.5		%	8.5		%	7.75		%	7.75		%	7.75		%
Weighted average rate of increase for compensation	4.21		%	4.61		%	4.76		%	4.22		%	4.62		%	4.79		%
Healthcare cost trend rate⁽³⁾										7		%	7		%	7		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)⁽³⁾										4.6		%	4.6		%	4.6		%
Year that the rate reaches the ultimate trend rate⁽³⁾										2061			2060			2060


(1)	2012 amounts relate to the sale of Salem Harbor. 2010 amounts relate to the sales of Peoples and Dominion's Appalachian E&P operations and a workforce reduction program.


(2)	Represents a one-time special termination benefit for certain employees in connection with a workforce reduction program.


(3)	Assumptions used to determine periodic cost for the following year.

Components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost

The components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit cost are as follows:



	Pension Benefits				Other Postretirement Benefits
At December 31,	2012		2011		2012			2011
(millions)
Net actuarial loss	$	2,865	$	2,211	$	230		$	100
Prior service (credit) cost	11		14		(71		)	(86		)
Total⁽¹⁾	$	2,876	$	2,225	$	159		$	14

(1)

As of December 31, 2012, of the $2.9 billion and $158 million related to pension benefits and other postretirement benefits, $1.8 billion and$69 million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2011, of the $2.2 billion related to pension benefits, $1.4 billion is included in AOCI, with the remainder included in regulatory assets and liabilities; the $14 million related to other postretirement benefits consists of $16 million included in regulatory assets and liabilities and $(2) million included in AOCI.

Components of AOCI and regulatory assets and liabilities that are expected to be amortized as components of periodic benefit cost in 2011

The following table provides the components of AOCI and regulatory assets and liabilities as of December 31, 2012 that are expected to be amortized as components of periodic benefit cost in 2013:

Effect of one percentage point change on benefit plans

A one percentage point change in assumed healthcare cost trend rates would have had the following effects:



	Other Postretirement Benefits
	One percentage point increase		One percentage point decrease
(millions)
Effect on total of service and interest cost components for 2012	$	17	$	(16	)
Effect on other postretirement benefit obligation at December 31, 2012	218		(172		)

As of December 31,

(millions)

Accumulated benefit obligation

Fair value of plan assets