Operating Segments

3 Months Ended

Mar. 31, 2014

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
Dominion Generation	Regulated electric fleet	X	X
	Merchant electric fleet	X
	Nonregulated retail energy marketing	X
Dominion Energy	Gas transmission and storage(1)	X
	Gas distribution and storage	X
	LNG import and storage	X

(1) Includes remaining producer services activities.

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 discontinued or sold. 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 January of 2014, Dominion announced it would exit the electric retail energy marketing business. Dominion completed the sale in March 2014. As a result, the earnings impact from electric retail energy marketing business has been included in the Corporate and Other Segment of Dominion for 2014.

In the second quarter of 2013, Dominion commenced a repositioning 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 repositioning was completed in the first quarter of 2014 and resulted 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 for 2014.

In the three months ended March 31, 2014, Dominion reported an after-tax net expense of $228 million for specific items in the Corporate and Other segment, with $217 million of these net expenses attributable to its operating segments. In the three months ended March 31, 2013, Dominion reported an after-tax net benefit of $19 million for specific items in the Corporate and Other segment, with $17 million of these net benefits attributable to its operating segments.

The net expense for specific items in 2014 primarily related to the impact of the following items:

• A $319 million ($193 million after-tax) net loss related to the producer services business discussed above, attributable to Dominion Energy; and

• A $47 million ($33 million after-tax) net loss related to the electric retail energy marketing business discussed above, including a $147 million ($90 million after-tax) loss from normal operations, partially offset by a $100 million ($57 million after-tax) gain on sale net of a $31 million write-off of goodwill, attributable to Dominion Generation.

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

• A $44 million ($26 million after-tax) net gain on investments held in nuclear decommissioning trust funds, attributable to Dominion Generation; and

• A $1 million net benefit related to Brayton Point and Kincaid, including a $38 million ($23 million after-tax) benefit from the discontinued operations of these merchant power stations partially offset by impairments of $37 million ($22 million after-tax) related to these stations, 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.

There were no material net benefit or expense items in the Corporate and Other segment in the three months ended March 31, 2014 or 2013.

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

	DVP(1)		Dominion Generation(1)		Dominion Energy		Corporate and Other			Adjustments/Eliminations(1)			Consolidated Total
(millions)
Three Months Ended March 31,
2014
Total revenue from external customers	$	502	$	2,260	$	362	$	(2	)	$	508		$	3,630
Intersegment revenue	2		24		489		147			(662		)	—
Total operating revenue	504		2,284		851		145			(154		)	3,630
Net income (loss) attributable to Dominion	131		309		208		(269		)	—			379
2013
Total revenue from external customers	$	465	$	2,130	$	611	$	47		$	270		$	3,523
Intersegment revenue	1		41		265		142			(449		)	—
Total operating revenue	466		2,171		876		189			(179		)	3,523
Loss from discontinued operations	—		—		—		1			—			1
Net income (loss) attributable to Dominion	116		254		179		(54		)	—			495

(1) 2013 amounts have been recast to reflect nonregulated retail energy marketing operations in the Dominion Generation segment.

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,
2014
Operating revenue	$	502	$	1,481	$	—	$	1,983
Net income	134		189		1		324
2013
Operating revenue	$	465	$	1,316	$	—	$	1,781
Net income	118		168		1		287