OPERATING SEGMENTS

The Companies 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	Dominion Gas
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		X
	Gas distribution and storage	X		X
	Gas gathering and processing	X		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.

Dominion

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 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 the electric retail energy marketing business has been included in the Corporate and Other Segment of Dominion for 2014 first quarter results of operations.

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 was completed in the first quarter of 2014, 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 2014, Dominion reported after-tax net expense of $970 million in the Corporate and Other segment, with $544 million of these net expenses attributable to specific items related to its operating segments.

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


•	$374 million ($248 million after-tax) in charges associated with Virginia legislation enacted in April 2014 relating to the development of a third nuclear unit located at North Anna and offshore wind facilities, attributable to Dominion Generation;


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


•	A $121 million ($74 million after-tax) charge related to a settlement offer to incur future ash pond closure costs at certain utility generation facilities, attributable to Dominion Generation.

In 2013, Dominion reported after-tax net expense of $452 million in the Corporate and Other segment, with $184 million of these net expenses attributable to specific items related to its operating segments.

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

•

A $135 million ($92 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 sale, impairment charges of $48 million ($28 million after-tax), a $17 million ($18 million after-tax) loss on the sale which includes a $16 million write-off of goodwill, and a $6 million ($8 million after-tax) loss from operations, attributable to Dominion Generation; and


•	A $182 million ($109 million after-tax) net loss, including a $55 million ($33 million after-tax) impairment charge related to certain natural gas infrastructure assets and a $127 million ($76 million after-tax) loss related to the producer services business discussed above, attributable to Dominion Energy; partially offset by


•	An $81 million ($49 million after-tax) net gain on investments held in nuclear decommissioning trust funds, attributable to Dominion Generation.

In 2012, Dominion reported after-tax net expense of $1.7 billion in the Corporate and Other segment, with $1.5 billion of these net expenses attributable to specific items related to its operating segments.

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


•	A $1.7 billion ($1.1 billion after-tax) net loss from discontinued operations, including impairment charges, of Brayton Point and Kincaid, which were sold in 2013, attributable to Dominion Generation;


•	A $467 million ($303 million after-tax) net loss, including impairment charges, primarily resulting from management's decision to cease operations and begin decommissioning Kewaunee in 2013, attributable to Dominion Generation;


•	An $87 million ($53 million after-tax) charge reflecting restoration costs associated with damage caused by severe storms, attributable to DVP; and


•	A $49 million ($22 million after-tax) loss from discontinued operations of State Line and Salem Harbor which were sold in 2012, attributable to Dominion Generation.

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



Year Ended December 31,	DVP		Dominion Generation			Dominion Energy		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
2014
Total revenue from external customers	$	1,918	$	7,665		$	1,718	$	(12	)	$	1,147		$	12,436
Intersegment revenue	18		70			1,174		572			(1,834		)	—
Total operating revenue	1,936		7,735			2,892		560			(687		)	12,436
Depreciation, depletion and amortization	462		516			241		73			—			1,292
Equity in earnings of equity method investees	—		(18		)	54		10			—			46
Interest income	—		67			14		20			(33		)	68
Interest and related charges	205		240			11		770			(33		)	1,193
Income taxes	317		392			436		(693		)	—			452
Net income (loss) attributable to Dominion	502		1,101			677		(970		)	—			1,310
Investment in equity method investees	—		262			796		23			—			1,081
Capital expenditures	1,652		2,466			1,329		104			—			5,551
Total assets (billions)	13.0		24.2			12.7		8.7			(4.3		)	54.3
2013
Total revenue from external customers	$	1,825	$	8,445		$	1,783	$	3		$	1,064		$	13,120
Intersegment revenue	9		68			1,063		609			(1,749		)	—
Total operating revenue	1,834		8,513			2,846		612			(685		)	13,120
Depreciation, depletion and amortization	427		518			228		35			—			1,208
Equity in earnings of equity method investees	—		(14		)	21		7			—			14
Interest income	—		66			12		42			(66		)	54
Interest and related charges	175		220			26		522			(66		)	877
Income taxes	287		483			409		(287		)	—			892
Loss from discontinued operations, net of tax	—		—			—		(92		)	—			(92		)
Net income (loss) attributable to Dominion	475		1,031			643		(452		)	—			1,697
Investment in equity method investees	—		280			615		21			—			916
Capital expenditures	1,361		1,605			1,043		95			—			4,104
Total assets (billions)	11.9		22.0			12.1		8.5			(4.4		)	50.1
2012
Total revenue from external customers	$	1,846	$	8,170		$	1,813	$	155		$	851		$	12,835
Intersegment revenue	9		104			930		608			(1,651		)	—
Total operating revenue	1,855		8,274			2,743		763			(800		)	12,835
Depreciation, depletion and amortization	392		483			216		36			—			1,127
Equity in earnings of equity method investees	—		3			23		(1		)	—			25
Interest income	1		65			30		71			(106		)	61
Interest and related charges	187		177			47		511			(106		)	816
Income taxes	278		576			352		(395		)	—			811
Loss from discontinued operations, net of tax	—		—			—		(1,125		)	—			(1,125		)
Net income (loss) attributable to Dominion	439		1,021			551		(1,709		)	—			302
Capital expenditures	1,158		1,615			1,350		22			—			4,145

Intersegment sales and transfers for Dominion are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation.

Virginia Power

The majority of Virginia Power's revenue is provided through tariff rates. Generally, such revenue is allocated for management reporting based on an unbundled rate methodology among Virginia Power's DVP and Dominion Generation segments.

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 2014, Virginia Power reported after-tax net expenses of $342 million for specific items attributable to its operating segments in the Corporate and Other segment.

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


•	$374 million ($248 million after-tax) in charges associated with Virginia legislation enacted in April 2014 relating to the development of a third nuclear unit located at North Anna and offshore wind facilities, attributable to Dominion Generation; and


•	A $121 million ($74 million after-tax) charge related to a settlement offer to incur future ash pond closure costs at certain utility generation facilities, attributable to Dominion Generation.

In 2013, Virginia Power reported after-tax net expenses of $47 million for specific items attributable to its operating segments in the Corporate and Other segment.

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


•	A $40 million ($28 million after-tax) charge in connection with the 2013 Biennial Review Order, attributable to Dominion Generation.

In 2012, Virginia Power reported after-tax net expenses of $51 million for specific items attributable to its operating segments in the Corporate and Other segment.

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


•	An $87 million ($53 million after-tax) charge reflecting restoration costs associated with damage caused by severe storms, attributable to DVP.

The following table presents segment information pertaining to Virginia Power's operations:



Year Ended December 31,	DVP		Dominion Generation		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
2014
Operating revenue	$	1,928	$	5,651	$	—		$	—		$	7,579
Depreciation and amortization	462		416		37			—			915
Interest income	—		8		—			—			8
Interest and related charges	205		203		3			—			411
Income taxes	317		416		(185		)	—			548
Net income (loss)	509		691		(342		)	—			858
Capital expenditures	1,651		1,456		—			—			3,107
Total assets (billions)	13.2		16.4		—			(0.1		)	29.5
2013
Operating revenue	$	1,826	$	5,475	$	(6	)	$	—		$	7,295
Depreciation and amortization	427		425		1			—			853
Interest income	—		6		—			—			6
Interest and related charges	175		192		2			—			369
Income taxes	286		399		(26		)	—			659
Net income (loss)	483		702		(47		)	—			1,138
Capital expenditures	1,360		1,173		—			—			2,533
Total assets (billions)	12.0		15.1		—			(0.1		)	27.0
2012
Operating revenue	$	1,847	$	5,379	$	—		$	—		$	7,226
Depreciation and amortization	392		390		—			—			782
Interest income	1		7		—			—			8
Interest and related charges	186		199		—			—			385
Income taxes	277		403		(27		)	—			653
Net income (loss)	448		653		(51		)	—			1,050
Capital expenditures	1,142		1,146		—			—			2,288

Dominion Gas

The Corporate and Other Segment of Dominion Gas primarily includes specific items attributable to Dominion Gas' operating segment that are not included in profit measures evaluated by executive management in assessing the segment's performance and the effect of certain items recorded at Dominion Gas as a result of Dominion's basis in the net assets contributed.

In 2014, Dominion Gas reported after-tax net expenses of $9 million in its Corporate and Other segment, with none of these net expenses attributable to specific items related to its operating segment.

In 2013, Dominion Gas reported after-tax net expenses of $49 million in the Corporate and Other segment, with $41 million of these net expenses attributable to specific items related to its operating segment.

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


•	$55 million ($33 million after-tax) of impairment charges related to certain natural gas infrastructure assets; and


•	A $14 million ($8 million after-tax) charge primarily reflecting severance pay and other benefits related to workforce reductions.

In 2012, Dominion Gas reported after-tax net expenses of $10 million in its Corporate and Other segment, with none of these net expenses attributable to specific items related to its operating segment.

The following table presents segment information pertaining to Dominion Gas' operations:



Year Ended December 31,	Dominion Energy		Corporate and Other			Consolidated Total
(millions)
2014
Operating revenue	$	1,898	$	—		$	1,898
Depreciation and amortization	197		—			197
Equity in earnings of equity method investees	21		—			21
Interest income	1		—			1
Interest and related charges	27		—			27
Income taxes	340		(6		)	334
Net income (loss)	521		(9		)	512
Investment in equity method investees	107		—			107
Capital expenditures	719		—			719
Total assets (billions)	9.2		0.6			9.8
2013
Operating revenue	$	1,937	$	—		$	1,937
Depreciation and amortization	188		—			188
Equity in earnings of equity method investees	22		—			22
Interest income	2		—			2
Interest and related charges	28		—			28
Income taxes	333		(32		)	301
Net income (loss)	510		(49		)	461
Investment in equity method investees	105		—			105
Capital expenditures	650		—			650
Total assets (billions)	8.5		0.6			9.1
2012
Operating revenue	$	1,677	$	—		$	1,677
Depreciation and amortization	176		—			176
Equity in earnings of equity method investees	23		—			23
Interest income	2		—			2
Interest and related charges	40		—			40
Income taxes	293		(5		)	288
Net income (loss)	469		(10		)	459
Capital expenditures	928		—			928