Operating Segments

6 Months Ended

Jun. 30, 2013

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 the net impact of operations that are expected to be or are currently discontinued. In addition, Corporate and Other includes specific items attributable to Dominion's operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or allocating resources among the segments.

In the second quarter of 2013, Dominion commenced a restructuring of its producer services business, which aggregates natural gas supply, engages in natural gas trading and marketing activities and natural gas supply management and provides price risk management services to Dominion affiliates. The restructuring, which is expected to be completed by the end of 2013, will result in the termination of natural gas trading and certain energy marketing activities. As a result, the earnings impact from natural gas trading and certain energy marketing activities has been included in the Corporate and Other Segment of Dominion.

In the six months ended June 30, 2013, Dominion reported after-tax net expense of $134 million for specific items in the Corporate and Other segment, with $131 million of these net expenses attributable to its operating segments. In the six months ended June 30, 2012, Dominion reported after-tax net expense of $96 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segments.

The net expense for specific items in 2013 primarily related to the impact of the following items:

• A $118 million ($69 million after-tax) net loss from discontinued operations of Brayton Point and Kincaid, including debt extinguishment of $64 million ($38 million after-tax) related to the pending sale, impairment charges of $48 million ($28 million after-tax), and a $6 million ($3 million after-tax) loss from operations, attributable to Dominion Generation;

• A $107 million ($57 million after-tax) net loss, including a $55 million ($33 million after-tax) impairment charge related to certain natural gas infrastructure assets and a $52 million ($24 million after-tax) loss related to the producer services business discussed above, attributable to Dominion Energy; and

• A $28 million ($17 million after-tax) charge primarily reflecting severance pay and other benefits related to workforce reductions, including $19 million ($12 million after-tax) attributable to all segments and $9 million ($5 million after-tax) attributable to Dominion Energy; partially offset by

• A $51 million ($31 million after-tax) net gain on investments held in nuclear decommissioning trust funds, attributable to Dominion Generation.

The net expense for specific items in 2012 primarily related to the impact of the following items:

• A $74 million ($45 million after-tax) charge reflecting restoration costs associated with damage caused by late June 2012 summer storms, attributable to DVP; and

• A $48 million ($25 million after-tax) loss from discontinued operations of Brayton Point and Kincaid, and a $30 million ($17 million after-tax) loss from discontinued operations of State Line and Salem Harbor, attributable to Dominion Generation.

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or allocating resources among the segments.

In the six months ended June 30, 2013 and 2012, Virginia Power reported after-tax net expense of $5 million and $44 million, respectively, for specific items in the Corporate and Other segment, all of which was attributable to its operating segments.

The net expense for specific items in 2012 primarily related to the impact of a $74 million ($45 million after-tax) charge reflecting restoration costs associated with damage caused by late June 2012 summer storms, attributable to DVP.

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

	DVP		Dominion Generation(1)		Dominion Energy		Corporate and Other(1)			Adjustments/Eliminations			Consolidated Total
(millions)
Three Months Ended June 30,
2013
Total revenue from external customers	$	772	$	1,501	$	354	$	17		$	336		$	2,980
Intersegment revenue	6		91		275		164			(536		)	—
Total operating revenue	778		1,592		629		181			(200		)	2,980
Loss from discontinued operations	—		—		—		(70		)	—			(70		)
Net income (loss) attributable to Dominion	132		165		124		(219		)	—			202
2012
Total revenue from external customers	$	806	$	1,556	$	371	$	33		$	239		$	3,005
Intersegment revenue	13		89		220		146			(468		)	—
Total operating revenue	819		1,645		591		179			(229		)	3,005
Loss from discontinued operations	—		—		—		(32		)	—			(32		)
Net income (loss) attributable to Dominion	143		166		109		(160		)	—			258
Six Months Ended June 30,
2013
Total revenue from external customers	$	1,679	$	3,152	$	966	$	63		$	643		$	6,503
Intersegment revenue	48		127		539		307			(1,021		)	—
Total operating revenue	1,727		3,279		1,505		370			(378		)	6,503
Loss from discontinued operations	—		—		—		(69		)	—			(69		)
Net income (loss) attributable to Dominion	274		392		303		(272		)	—			697
2012
Total revenue from external customers	$	1,737	$	3,136	$	987	$	72		$	470		$	6,402
Intersegment revenue	75		165		420		295			(955		)	—
Total operating revenue	1,812		3,301		1,407		367			(485		)	6,402
Loss from discontinued operations	—		—		—		(42		)	—			(42		)
Net income (loss) attributable to Dominion	309		399		258		(214		)	—			752

(1) 2012 amounts have been recast to reflect Brayton Point and Kincaid as discontinued operations, as discussed in Note 3.

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 June 30,
2013
Operating revenue	$	431	$	1,279	$	—		$	1,710
Net income (loss)	114		157		(6		)	265
2012
Operating revenue	$	449	$	1,307	$	—		$	1,756
Net income (loss)	100		118		(46		)	172
Six Months Ended June 30,
2013
Operating revenue	$	896	$	2,595	$	—		$	3,491
Net income (loss)	232		325		(5		)	552
2012
Operating revenue	$	908	$	2,602	$	—		$	3,510
Net income (loss)	207		251		(43		)	415