Derivatives and Hedge Accounting Activities

The Companies' accounting policies and objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in Dominion's and Virginia Power's Annual Report on Form 10-K for the year ended December 31, 2013 and Note 2 in Exhibit 99.11(b) to Dominion Gas' Current Report on Form 8-K dated June 26, 2014. See Note 8 in this report for further information about fair value measurements and associated valuation methods for derivatives.

Derivative assets and liabilities are presented gross on the Companies' Consolidated Balance Sheets. Dominion's and Virginia Power's derivative contracts include both over-the-counter transactions and those that are executed on an exchange or other trading platform (exchange contracts) and centrally cleared. Dominion Gas' derivative contracts consist of over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a counterparty. Exchange contracts utilize a financial intermediary, exchange, or clearinghouse to enter, execute, or clear the transactions. Certain over-the-counter and exchange contracts contain contractual rights of setoff through master netting arrangements, derivative clearing agreements, and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency, or other conditions.

In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit, and in some cases other forms of security, none of which are subject to restrictions. Cash collateral is used in the table below to offset derivative assets and liabilities. Certain accounts receivable and accounts payable recognized on the Companies' Consolidated Balance Sheets, as well as letters of credit and other forms of security, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure.

Dominion

Balance Sheet Presentation

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



	September 30, 2014						December 31, 2013
	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	$	50	$	—	$	50	$	137	$	—	$	137
Commodity contracts:
Over-the-counter	195		—		195		240		—		240
Exchange	483		—		483		506		—		506
Total derivatives, subject to a master netting or similar arrangement	728		—		728		883		—		883
Total derivatives, not subject to a master netting or similar arrangement	4		—		4		7		—		7
Total	$	732	$	—	$	732	$	890	$	—	$	890



			September 30, 2014								December 31, 2013
			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	$	50	$	28	$	—	$	22	$	137	$	—	$	—	$	137
Commodity contracts:
Over-the-counter	195		73		—		122		240		63		—		177
Exchange	483		483		—		—		506		505		—		1
Total	$	728	$	584	$	—	$	144	$	883	$	568	$	—	$	315



	September 30, 2014						December 31, 2013
	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	$	100	$	—	$	100	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	394		—		394		262		—		262
Exchange	825		—		825		838		—		838
Total derivatives, subject to a master netting or similar arrangement	1,319		—		1,319		1,100		—		1,100
Total derivatives, not subject to a master netting or similar arrangement	5		—		5		2		—		2
Total	$	1,324	$	—	$	1,324	$	1,102	$	—	$	1,102



			September 30, 2014								December 31, 2013
			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	$	100	$	28	$	—	$	72	$	—	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	394		73		110		211		262		63		69		130
Exchange	825		483		342		—		838		505		333		—
Total	$	1,319	$	584	$	452	$	283	$	1,100	$	568	$	402	$	130

Volumes

The following table presents the volume of Dominion’s derivative activity as of September 30, 2014. 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⁾	57		12
Basis	298		606
Electricity (MWh):
Fixed price	15,326,454		9,127,500
FTRs	54,017,119		—
Capacity (MW)	6,100		12,200
Liquids (Gal)⁽²⁾	37,170,000		—
Interest rate	$	1,650,000,000	$	4,400,000,000


(1)	Includes options.


(2)	Includes NGLs and oil.

Ineffectiveness and AOCI

For the three and nine months ended September 30, 2014 and 2013, gains or losses on hedging instruments determined to be ineffective and amounts excluded from the assessment of effectiveness were not material. Amounts excluded from the assessment of effectiveness include gains or losses attributable to changes in the time value of options and changes in the differences between spot prices and forward prices.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion’s Consolidated Balance Sheet at September 30, 2014:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(4	)	$	(4	)	19 months
Electricity	(252		)	(188		)	27 months
Other	1			1			20 months
Interest rate	(187		)	(6		)	360 months
Total	$	(442	)	$	(197	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated sales) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in market prices and interest rates.

Fair Value and Gains and Losses on Derivative Instruments

The following table presents 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)
September 30, 2014
ASSETS
Current Assets
Commodity	$	185	$	366	$	551
Interest rate	49		—		49
Total current derivative assets⁽¹⁾	234		366		600
Noncurrent Assets
Commodity	61		70		131
Interest rate	1		—		1
Total noncurrent derivative assets⁽²⁾	62		70		132
Total derivative assets	$	296	$	436	$	732
LIABILITIES
Current Liabilities
Commodity	$	513	$	455	$	968
Interest rate	28		—		28
Total current derivative liabilities	541		455		996
Noncurrent Liabilities
Commodity	171		85		256
Interest Rate	72		—		72
Total noncurrent derivative liabilities⁽³⁾	243		85		328
Total derivative liabilities	$	784	$	540	$	1,324
December 31, 2013
ASSETS
Current Assets
Commodity	$	49	$	522	$	571
Interest rate	116		—		116
Total current derivative assets⁽¹⁾	165		522		687
Noncurrent Assets
Commodity	28		154		182
Interest rate	21		—		21
Total noncurrent derivative assets⁽²⁾	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⁽³⁾	119		155		274
Total derivative liabilities	$	386	$	716	$	1,102


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


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


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

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)
Three Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	66
Purchased gas				(3		)
Electric fuel and other energy-related purchases				(5		)
Total commodity	$	(74	)	$	58		$	—
Interest rate⁽³⁾	(20		)	(5		)	(7		)
Total	$	(94	)	$	53		$	(7	)
Three Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	24
Purchased gas				(5		)
Electric fuel and other energy-related purchases				(3		)
Total commodity	$	(110	)	$	16		$	4
Interest rate⁽³⁾	(10		)	(6		)	14
Total	$	(120	)	$	10		$	18
Nine Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	(175	)
Purchased gas				(7		)
Electric fuel and other energy-related purchases				8
Total commodity	$	(291	)	$	(174	)	$	(1	)
Interest rate⁽³⁾	(139		)	(11		)	(38		)
Total	$	(430	)	$	(185	)	$	(39	)
Nine Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	(31	)
Purchased gas				(39		)
Electric fuel and other energy-related purchases				(6		)
Total commodity	$	(137	)	$	(76	)	$	3
Interest rate⁽³⁾	71			(12		)	66
Total	$	(66	)	$	(88	)	$	69


(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.



	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives not designated as hedging instruments	2014			2013			2014			2013
(millions)
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue	$	35		$	3		$	(327	)	$	—
Purchased gas	(39		)	(3		)	(33		)	(11		)
Electric fuel and other energy-related purchases	—			(12		)	125			(20		)
Total	$	(4	)	$	(12	)	$	(235	)	$	(31	)


(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.

Virginia Power

Balance Sheet Presentation

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



	September 30, 2014						December 31, 2013
	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	50		—		50		4		—		4
Exchange	—		—		—		1		—		1
Total derivatives, subject to a master netting or similar arrangement	50		—		50		53		—		53
Total derivatives, not subject to a master netting or similar arrangement	3		—		3		—		—		—
Total	$	53	$	—	$	53	$	53	$	—	$	53



			September 30, 2014								December 31, 2013
			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	50		4		—		46		4		4		—		—
Exchange	—		—		—		—		1		—		—		1
Total	$	50	$	4	$	—	$	46	$	53	$	4	$	—	$	49



	September 30, 2014						December 31, 2013
	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	$	23	$	—	$	23	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	6		—		6		12		—		12
Total derivatives, subject to a master netting or similar arrangement	29		—		29		12		—		12
Total derivatives, not subject to a master netting or similar arrangement	1		—		1		—		—		—
Total	$	30	$	—	$	30	$	12	$	—	$	12



			September 30, 2014								December 31, 2013
			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	$	23	$	—	$	—	$	23	$	—	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	6		4		—		2		12		4		7		1
Total	$	29	$	4	$	—	$	25	$	12	$	4	$	7	$	1

Volumes

The following table presents the volume of Virginia Power’s derivative activity as of September 30, 2014. 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⁾	8		—
Basis	23		493
Electricity (MWh):
Fixed price	50,400		—
FTRs	53,863,519		—
Capacity (MW)	6,100		12,200
Interest rate	$	—	$	850,000,000


(1)	Includes options.

Ineffectiveness

Fair Value and Gains and Losses on Derivative Instruments

The following table presents 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)
September 30, 2014
ASSETS
Current Assets
Commodity	$	1	$	39	$	40
Total current derivative assets⁽¹⁾	1		39		40
Noncurrent Assets
Commodity	—		13		13
Total noncurrent derivative assets⁽²⁾	—		13		13
Total derivative assets	$	1	$	52	$	53
LIABILITIES
Current Liabilities
Commodity	$	2	$	5	$	7
Total current derivative liabilities⁽³⁾	2		5		7
Noncurrent Liabilities
Interest rate	23		—		23
Total noncurrent derivatives liabilities ⁽⁴⁾	23		—		23
Total derivative liabilities	$	25	$	5	$	30
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⁽³⁾	1		11		12
Total derivative liabilities	$	1	$	11	$	12


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


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


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


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

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)
Three Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Total commodity	$	(1	)	$	(1	)	$	—
Interest rate⁽³⁾	—			—			(7		)
Total	$	(1	)	$	(1	)	$	(7	)
Three Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Total commodity	$	1		$	(1	)	$	4
Interest rate⁽³⁾	1			—			14
Total	$	2		$	(1	)	$	18
Nine Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	5
Total commodity	$	5		$	5		$	(1	)
Interest rate⁽³⁾	(5		)	—			(38		)
Total	$	—		$	5		$	(39	)
Nine Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	—
Total commodity	$	—		$	—		$	3
Interest rate⁽³⁾	7			—			66
Total	$	7		$	—		$	69


(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.



	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives not designated as hedging instruments	2014			2013			2014		2013
(millions)
Derivative Type and Location of Gains (Losses)
Commodity⁽²⁾	$	(3	)	$	(4	)	$	108	$	(8	)
Total	$	(3	)	$	(4	)	$	108	$	(8	)


(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.

Dominion Gas

Balance Sheet Presentation

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



	September 30, 2014						December 31, 2013
	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	$	—	$	—	$	—	$	34	$	—	$	34
Commodity contracts:
Over-the-counter	2		—		2		6		—		6
Total derivatives, subject to a master netting or similar arrangement	$	2	$	—	$	2	$	40	$	—	$	40



			September 30, 2014						December 31, 2013
			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		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	—	$	—	$	—	$	34	$	—	$	34
Commodity contracts:
Over-the-counter	2		2		—		6		6		—
Total	$	2	$	2	$	—	$	40	$	6	$	34



	September 30, 2014						December 31, 2013
	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	$	3	$	—	$	3	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	5		—		5		25		—		25
Total derivatives, subject to a master netting or similar arrangement	$	8	$	—	$	8	$	25	$	—	$	25



			September 30, 2014						December 31, 2013
			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		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Net Amounts
(millions)
Interest rate contracts:
Over-the-counter	$	3	$	—	$	3	$	—	$	—	$	—
Commodity contracts:
Over-the-counter	5		2		3		25		6		19
Total	$	8	$	2	$	6	$	25	$	6	$	19

Volumes

The following table presents the volume of Dominion Gas' derivative activity as of September 30, 2014. 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		—
Basis	1		—
NGLs (Gal)	30,492,000		—
Interest rate	$	—	$	250,000,000

Ineffectiveness and AOCI

For the three and nine months ended September 30, 2014 and 2013, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to losses on cash flow hedges included in AOCI in Dominion Gas' Consolidated Balance Sheet at September 30, 2014:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Natural Gas	$	(3	)	$	(3	)	6 months
NGLs	—			—			3 months
Interest rate	(16		)	—			360 months
Total	$	(19	)	$	(3	)

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion Gas' commodity and interest rate 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 September 30, 2014
ASSETS
Current Assets
Commodity	$	2	$	—	$	2
Total current derivative assets⁽¹⁾	2		—		2
Total derivative assets	$	2	$	—	$	2
LIABILITIES
Current Liabilities
Commodity	$	5	$	—	$	5
Total current derivative liabilities⁽²⁾	5		—		5
Noncurrent Liabilities
Interest rate	3		—		3
Total noncurrent derivative liabilities⁽³⁾	3		—		3
Total derivative liabilities	$	8	$	—	$	8
At December 31, 2013
ASSETS
Current Assets
Commodity	$	6	$	—	$	6
Interest rate	34		—		34
Total current derivative assets⁽¹⁾	40		—		40
Total derivative assets	$	40	$	—	$	40
LIABILITIES
Current Liabilities
Commodity	$	25	$	—	$	25
Total current derivative liabilities⁽²⁾	25		—		25
Total derivative liabilities	$	25	$	—	$	25


(1)	Current derivative assets are presented in other current assets in Dominion Gas' Consolidated Balance Sheets.


(2)	Current derivative liabilities are presented in other current liabilities in Dominion Gas' Consolidated Balance Sheets.


(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Gas’ Consolidated Balance Sheets.

The following table presents the gains and losses on Dominion Gas' 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
(millions)
Three Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue				$	(1	)
Purchased gas				(5		)
Total commodity	$	3		$	(6	)
Interest rate⁽²⁾	(14		)	—
Total	$	(11	)	$	(6	)
Three Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue				$	(1	)
Purchased gas				(4		)
Total commodity	$	(23	)	$	(5	)
Interest rate⁽²⁾	(11		)	—
Total	$	(34	)	$	(5	)
Nine Months Ended September 30, 2014
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue				$	(8	)
Purchased gas				(10		)
Total commodity	$	1		$	(18	)
Interest rate⁽²⁾	(56		)	—
Total	$	(55	)	$	(18	)
Nine Months Ended September 30, 2013
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue				$	1
Purchased gas				(10		)
Total commodity	$	11		$	(9	)
Interest rate⁽²⁾	64			—
Total	$	75		$	(9	)


(1)	Amounts deferred into AOCI have no associated effect in Dominion Gas' Consolidated Statements of Income.


(2)	Amounts recorded in Dominion Gas' Consolidated Statements of Income are classified in interest and related charges.