XML 78 R43.htm IDEA: XBRL DOCUMENT

Derivatives and Hedge Accounting Activities (Tables)

12 Months Ended

Dec. 31, 2013

The tables below present Dominion's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:



	December 31, 2013						December 31, 2012
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Interest rate contracts:
Over-the-counter	$	137	$	—	$	137	$	93	$	—	$	93
Commodity contracts:
Over-the-counter	240		—		240		290		—		290
Exchange	506		—		506		416		—		416
Total derivatives, subject to a master netting or similar arrangement	883		—		883		799		—		799
Total derivatives, not subject to a master netting or similar arrangement	7		—		7		29		—		29
Total⁽¹⁾	$	890	$	—	$	890	$	828	$	—	$	828

(1)

At December 31, 2013, the total derivative asset balance contains $687 million of current assets, which is presented in current derivative assets, in Dominion’s Consolidated Balance Sheet, and $203 million of noncurrent assets, which is presented in other deferred charges and other assets in Dominion’s Consolidated Balance Sheet. At December 31, 2012, the total derivative asset balance contains $518 million of current assets, which is presented in current derivative assets in Dominion’s Consolidated Balance Sheet and $310 million of noncurrent assets, which is presented in other deferred charges and other assets in Dominion’s Consolidated Balance Sheet.



			December 31, 2013								December 31, 2012
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	137	$	—	$	—	$	137	$	93	$	19	$	—	$	74
Commodity contracts:
Over-the-counter	240		63		—		177		290		97		—		193
Exchange	506		505		—		1		416		350		4		62
Total	$	883	$	568	$	—	$	315	$	799	$	466	$	4	$	329

Offsetting Liabilities



	December 31, 2013						December 31, 2012
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Interest rate contracts:
Over-the-counter	$	—	$	—	$	—	$	66	$	—	$	66
Commodity contracts:
Over-the-counter	262		—		262		191		—		191
Exchange	838		—		838		393		—		393
Total derivatives, subject to a master netting or similar arrangement	1,100		—		1,100		650		—		650
Total derivatives, not subject to a master netting or similar arrangement	2		—		2		11		—		11
Total⁽¹⁾	$	1,102	$	—	$	1,102	$	661	$	—	$	661

(1)

At December 31, 2013, the total derivative liability balance contains $828 million of current liabilities, which is presented in current derivative liabilities in Dominion’s Consolidated Balance Sheet, and $274 million of noncurrent liabilities, which is presented in the other deferred credits and other liabilities in Dominion’s Consolidated Balance Sheet. At December 31, 2012, the total derivative liability balance contains $510 million of current liabilities, which is presented in current derivative liabilities in Dominion’s Consolidated Balance Sheet and $151 million of noncurrent liabilities, which is presented in other deferred credits and other liabilities in Dominion’s Consolidated Balance Sheet.



			December 31, 2013								December 31, 2012
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	—	$	—	$	—	$	—	$	66	$	19	$	—	$	47
Commodity contracts:
Over-the-counter	262		63		69		130		191		97		20		74
Exchange	838		505		333		—		393		350		43		—
Total	$	1,100	$	568	$	402	$	130	$	650	$	466	$	63	$	121

Volumes of Derivatives

The following table presents the volume of Dominion's derivative activity as of December 31, 2013. 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⁾	116		19
Basis⁽¹⁾	466		281
Electricity (MWh):
Fixed price⁽¹⁾	14,814,767		14,935,144
FTRs	41,316,345		437,384
Capacity (MW)	83,050		18,300
Liquids (gallons)⁽²⁾	151,200,000		—
Interest rate	$	2,050,000,000	$	750,000,000


(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, 2013:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(3	)	$	(3	)	28 months
Electricity	(172		)	(124		)	36 months
Other	(3		)	(3		)	29 months
Interest rate	(110		)	(7		)	364 months
Total	$	(288	)	$	(137	)

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:



	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2013
ASSETS
Current Assets
Commodity	$	49	$	522	$	571
Interest rate	116		—		116
Total current derivative assets	165		522		687
Noncurrent Assets
Commodity	28		154		182
Interest rate	21		—		21
Total noncurrent derivative assets⁽¹⁾	49		154		203
Total derivative assets	$	214	$	676	$	890
LIABILITIES
Current Liabilities
Commodity	$	267	$	561	$	828
Total current derivative liabilities	267		561		828
Noncurrent Liabilities
Commodity	119		155		274
Total noncurrent derivative liabilities⁽²⁾	119		155		274
Total derivative liabilities	$	386	$	716	$	1,102
At December 31, 2012
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


(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	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)
Year Ended December 31, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	(58	)
Purchased gas				(47		)
Electric fuel and other energy-related purchases				(10		)
Total commodity	$	(481	)	$	(115	)	$	5
Interest rate⁽³⁾	77			(15		)	81
Total	$	(404	)	$	(130	)	$	86
Year Ended December 31, 2012
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	)


(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.

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,	2013			2012			2011
(millions)
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue	$	(45	)	$	168		$	111
Purchased gas	(9		)	(14		)	(35		)
Electric fuel and other energy-related purchases	(29		)	(40		)	(45		)
Interest rate⁽²⁾	—			17			(5		)
Total	$	(83	)	$	131		$	26


(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]

Offsetting Assets

The tables below present Virginia Power's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:



	December 31, 2013						December 31, 2012
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Interest rate contracts:
Over-the-counter	$	48	$	—	$	48	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	4		—		4		6		—		6
Exchange	1		—		1		—		—		—
Total derivatives, subject to a master netting or similar arrangement	53		—		53		6		—		6
Total derivatives, not subject to a master netting or similar arrangement	—		—		—		—		—		—
Total⁽¹⁾	$	53	$	—	$	53	$	6	$	—	$	6


(1)	At December 31, 2013, the total derivative asset balance contains $53 million of current assets, which is presented in other current assets in Virginia Power’s Consolidated Balance Sheet. At December 31, 2012, the total derivative asset balance contains $6 million of current assets, which is presented in other current assets in Virginia Power’s Consolidated Balance Sheet.



			December 31, 2013								December 31, 2012
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	48	$	—	$	—	$	48	$	—	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	4		4		—		—		6		3		—		3
Exchange	1		—		—		1		—		—		—		—
Total	$	53	$	4	$	—	$	49	$	6	$	3	$	—	$	3

Offsetting Liabilities



	December 31, 2013						December 31, 2012
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Interest rate contracts:
Over-the-counter	$	—	$	—	$	—	$	25	$	—	$	25
Commodity contracts:
Over-the-counter	12		—		12		7		—		7
Exchange	—		—		—		2		—		2
Total derivatives, subject to a master netting or similar arrangement	12		—		12		34		—		34
Total derivatives, not subject to a master netting or similar arrangement	—		—		—		—		—		—
Total⁽¹⁾	$	12	$	—	$	12	$	34	$	—	$	34

(1)

At December 31, 2013, the total derivative liability balance contains $12 million of current liabilities, which is presented in current derivative liabilities in Virginia Power’s Consolidated Balance Sheet. At December 31, 2012, the total derivative liability balance contains $33 million of current liabilities, which is presented in current derivative liabilities in Virginia Power’s Consolidated Balance Sheet and $1 million of noncurrent derivative liabilities, which is presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheet.



			December 31, 2013								December 31, 2012
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	—	$	—	$	—	$	—	$	25	$	—	$	—	$	25
Commodity contracts:
Over-the-counter	12		4		7		1		7		3		—		4
Exchange	—		—		—		—		2		—		2		—
Total	$	12	$	4	$	7	$	1	$	34	$	3	$	2	$	29

Volumes of Derivatives

The following table presents the volume of Virginia Power's derivative activity at December 31, 2013. 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	15		—
Basis	7		—
Electricity (MWh):
Fixed price	624,800		—
FTRs	39,186,609		—
Capacity (MW)	75,500		18,300
Interest rate	$	600,000,000	$	—

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:



	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2013
ASSETS
Current Assets
Commodity	$	2	$	3	$	5
Interest rate	48				48
Total current derivative assets⁽¹⁾	50		3		53
Total derivative assets	$	50	$	3	$	53
LIABILITIES
Current Liabilities
Commodity	$	1	$	11	$	12
Total current derivative liabilities	1		11		12
Total derivative liabilities	$	1	$	11	$	12
At December 31, 2012
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


(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	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)
Year Ended December 31, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	—
Total commodity	$	—		$	—		$	5
Interest rate⁽³⁾	9			—			81
Total	$	9		$	—		$	86
Year Ended December 31, 2012
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	)


(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.

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,	2013			2012			2011
(millions)
Derivative Type and Location of Gains (Losses)
Commodity⁽²⁾	$	(16	)	$	(50	)	$	(45	)
Interest rate⁽³⁾	—			—			(5		)
Total	$	(16	)	$	(50	)	$	(50	)


(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.