Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans funded status

The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans' funded status for Dominion and Dominion Gas (for employees represented by collective bargaining units):



	Pension Benefits						Other Postretirement Benefits
Year Ended December 31,	2014			2013			2014			2013
(millions, except percentages)
DOMINION
Changes in benefit obligation:
Benefit obligation at beginning of year	$	5,625		$	6,125		$	1,360		$	1,719
Service cost	114			131			32			43
Interest cost	290			271			67			73
Benefits paid	(236		)	(229		)	(78		)	(75		)
Actuarial (gains) losses during the year	887			(650		)	177			(170		)
Plan amendments⁽¹⁾	—			1			9			(220		)
Settlements and curtailments⁽²⁾	(13		)	(24		)	—			(16		)
Special termination benefits	—			—			—			1
Medicare Part D reimbursement	—			—			4			5
Benefit obligation at end of year	$	6,667		$	5,625		$	1,571		$	1,360
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	6,113		$	5,553		$	1,315		$	1,156
Actual return on plan assets	601			781			105			178
Employer contributions	15			8			12			12
Benefits paid	(236		)	(229		)	(30		)	(31		)
Settlements⁽²⁾	(13		)	—			—			—
Fair value of plan assets at end of year	$	6,480		$	6,113		$	1,402		$	1,315
Funded status at end of year	$	(187	)	$	488		$	(169	)	$	(45	)
Amounts recognized in the Consolidated Balance Sheets at December 31:
Noncurrent pension and other postretirement benefit assets	$	946		$	913		$	10		$	29
Other current liabilities	(13		)	(15		)	(3		)	(3		)
Noncurrent pension and other postretirement benefit liabilities	(1,120		)	(410		)	(176		)	(71		)
Net amount recognized	$	(187	)	$	488		$	(169	)	$	(45	)
Significant assumptions used to determine benefit obligations as of December 31:
Discount rate⁽³⁾	4.40		%	5.20%/5.30%			4.40		%	5.00%/5.10%
Weighted average rate of increase for compensation	4.22		%	4.21		%	4.22		%	4.22		%
Expected long-term rate of return on plan assets	8.75		%	8.50		%	8.50		%	7.75		%

DOMINION GAS
Changes in benefit obligation:
Benefit obligation at beginning of year	$	563		$	607		$	269		$	287
Service cost	12			13			6			7
Interest cost	28			27			13			12
Benefits paid	(29		)	(27		)	(16		)	(17		)
Actuarial (gains) losses during the year	64			(57		)	38			(21		)
Plan amendments	—			—			9			—
Medicare Part D reimbursement	—			—			1			1
Benefit obligation at end of year	$	638		$	563		$	320		$	269
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	1,403		$	1,254		$	273		$	242
Actual return on plan assets	136			176			21			38
Employer contributions	—			—			10			10
Benefits paid	(29		)	(27		)	(16		)	(17		)
Fair value of plan assets at end of year	$	1,510		$	1,403		$	288		$	273
Funded status at end of year	$	872		$	840		$	(32	)	$	4
Amounts recognized in the Consolidated Balance Sheets at December 31:
Noncurrent pension and other postretirement benefit assets	$	872		$	840		$	—		$	19
Noncurrent pension and other postretirement benefit liabilities⁽⁴⁾	—			—			(32		)	(15		)
Net amount recognized	$	872		$	840		$	(32	)	$	4
Significant assumptions used to determine benefit obligations as of December 31:
Discount rate	4.40		%	5.20		%	4.40		%	5.00		%
Weighted average rate of increase for compensation	3.93		%	3.93		%	3.93		%	3.93		%
Expected long-term rate of return on plan assets	8.75		%	8.50		%	8.50		%	7.75		%


(1)	2013 other postretirement benefits amount relates to a plan amendment that changed medical coverage for certain Medicare-eligible retirees.


(2)	2014 amounts relate primarily to a settlement charge for certain executives. 2013 amounts relate primarily to the decommissioning of Kewaunee.


(3)	2013 pension and other postretirement benefits discount rates: 5.20% and 5.00% for the gas union plans and 5.30% and 5.10% for the nonunion and other union plans, respectively.


(4)	Reflected in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.

Benefit obligation in excess of plan asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion and Dominion Gas (for employees represented by collective bargaining units):



	Pension Benefits				Other Postretirement Benefits
As of December 31,	2014		2013		2014		2013
(millions)
DOMINION
Benefit obligation	$	5,970	$	4,978	$	1,564	$	1,233
Fair value of plan assets	4,838		4,553		1,385		1,158

DOMINION GAS
Benefit obligation	$	—	$	—	$	320	$	147
Fair value of plan assets	—		—		288		132

Accumulated benefit obligation in excess of plan assets

The following table provides information on the ABO and fair value of plan assets for Dominion’s pension plans with an ABO in excess of plan assets:

Benefit payments expected future service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans:



	Estimated Future Benefit Payments
	Pension Benefits		Other Postretirement Benefits
(millions)
DOMINION
2015	$	272	$	91
2016	284		94
2017	300		98
2018	320		101
2019	333		102
2020-2024	1,925		523

DOMINON GAS
2015	$	34	$	18
2016	35		19
2017	37		20
2018	38		21
2019	39		22
2020-2024	204		111

Fair values of pension and post retirement plan assets by asset category

The fair values of Dominion's and Dominion Gas’ (for employees represented by collective bargaining units) pension plan assets by asset category are as follows:



	Fair Value Measurements
	Pension Plans
At December 31,	2014								2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
DOMINION
Cash equivalents	$	13	$	25	$	—	$	38	$	53	$	126	$	—	$	179
U.S. equity:
Large Cap	1,313		—		—		1,313		1,220		—		—		1,220
Other	530		—		—		530		514		—		—		514
Non-U.S. equity:
Large Cap	234		—		—		234		308		—		—		308
Other	403		—		—		403		391		—		—		391
Common/collective trust funds⁽¹⁾	—		1,595		—		1,595		—		1,387		—		1,387
Fixed income:
Corporate debt instruments	45		666		—		711		43		451		—		494
U.S. Treasury securities and agency debentures	74		342		—		416		2		229		—		231
State and municipal	10		60		—		70		69		107		—		176
Other securities	6		80		—		86		7		50		—		57
Real estate:
REITs	40		—		—		40		32		—		—		32
Partnerships	—		—		209		209		—		—		227		227
Other alternative investments:
Private equity	—		—		518		518		—		—		530		530
Debt	—		—		144		144		—		—		180		180
Hedge funds	—		—		162		162		—		—		187		187
Total⁽²⁾	$	2,668	$	2,768	$	1,033	$	6,469	$	2,639	$	2,350	$	1,124	$	6,113

DOMINION GAS
Cash equivalents	$	3	$	6	$	—	$	9	$	12	$	29	$	—	$	41
U.S. equity:
Large Cap	306		—		—		306		280		—		—		280
Other	124		—		—		124		118		—		—		118
Non-U.S. equity:
Large Cap	54		—		—		54		72		—		—		72
Other	94		—		—		94		90		—		—		90
Common/collective trust funds⁽³⁾	—		372		—		372		—		318		—		318
Fixed income:
Corporate debt instruments	11		155		—		166		10		103		—		113
U.S. Treasury securities and agency debentures	17		80		—		97		1		52		—		53
State and municipal	2		14		—		16		16		24		—		40
Other securities	1		19		—		20		2		11		—		13
Real estate:
REITs	9		—		—		9		7		—		—		7
Partnerships	—		—		48		48		—		—		52		52
Other alternative investments:
Private equity	—		—		121		121		—		—		122		122
Debt	—		—		34		34		—		—		41		41
Hedge funds	—		—		38		38		—		—		43		43
Total⁽⁴⁾	$	621	$	646	$	241	$	1,508	$	608	$	537	$	258	$	1,403


(1)	Common/Collective Trust Funds include $360 million and $560 million of John Hancock insurance contracts held at December 31, 2014 and 2013, respectively. See below for a description of the individual investments included within this line item, and the nature and risk of each respective fund.


(2)	Includes net assets related to pending sales of securities of $31 million, net accrued income of $18 million, and excludes net assets related to pending purchases of securities of $38 million at December 31, 2014.


(3)	See below for a description of the individual investments included within this line item, and the nature and risk of each respective fund.


(4)	Includes net assets related to pending sales of securities of $7 million, net accrued income of $4 million, and excludes net assets related to pending purchases of securities of $9 million at December 31, 2014.

The fair values of Dominion's and Dominion Gas’ (for employees represented by collective bargaining units) other postretirement plan assets by asset category are as follows:



	Fair Value Measurements
	Other Postretirement Plans
At December 31,	2014								2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
DOMINION
Cash equivalents	$	1	$	7	$	—	$	8	$	3	$	14	$	—	$	17
U.S. equity:
Large Cap	514		—		—		514		472		—		—		472
Other	28		—		—		28		26		—		—		26
Non-U.S. equity:
Large Cap	102		—		—		102		111		—		—		111
Other	21		—		—		21		20		—		—		20
Common/collective trust funds⁽¹⁾	—		555		—		555		—		502		—		502
Fixed income:
Corporate debt instruments	3		35		—		38		2		23		—		25
U.S. Treasury securities and agency debentures	4		18		—		22		—		12		—		12
State and municipal	1		3		—		4		4		5		—		9
Other securities	—		4		—		4		—		3		—		3
Real estate:
REITs	2		—		—		2		2		—		—		2
Partnerships	—		—		19		19		—		—		19		19
Other alternative investments:
Private equity	—		—		58		58		—		—		60		60
Debt	—		—		18		18		—		—		27		27
Hedge funds	—		—		9		9		—		—		10		10
Total	$	676	$	622	$	104	$	1,402	$	640	$	559	$	116	$	1,315

DOMINION GAS
Cash equivalents	$	—	$	2	$	—	$	2	$	—	$	3	$	—	$	3
U.S. equity-Large Cap	113		—		—		113		104		—		—		104
Non-U.S. equity-Large Cap	26		—		—		26		26		—		—		26
Common/collective trust funds⁽²⁾	—		129		—		129		—		119		—		119
Real estate - partnerships	—		—		2		2		—		—		2		2
Other alternative investments:
Private equity	—		—		12		12		—		—		12		12
Debt	—		—		4		4		—		—		7		7
Total	$	139	$	131	$	18	$	288	$	130	$	122	$	21	$	273

(1) Common/Collective Trust Funds include $19 million and $29 million of John Hancock insurance contracts held at December 31, 2014 and 2013, respectively. See below for a description of the individual investments included within this line item, and the nature and risk of each respective fund.


(2)	See below for a description of the individual investments included within this line item, and the nature and risk of each respective fund.

Pension plan and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category

The following table presents the changes in pension and other postretirement plan assets that are measured at fair value and included in the Level 3 fair value category for Dominion and Dominion Gas (for employees represented by collective bargaining units):



	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
	Pension Plans															Other Postretirement Plans
	Real Estate			Private Equity			Debt			Hedge Funds			Total			Real Estate			Private Equity			Debt			Hedge Funds			Total
DOMINION
Balance at December 31, 2011	$	304		$	448		$	243		$	290		$	1,285		$	24		$	63		$	36		$	14		$	137
Actual return on plan assets:
Relating to assets still held at the reporting date	21			46			17			21			105			1			3			4			1			9
Relating to assets sold during the period	(8		)	(41		)	(11		)	(2		)	(62		)	—			(1		)	—			—			(1		)
Purchases	35			79			15			—			129			2			6			1			—			9
Sales	(31		)	(76		)	(72		)	(88		)	(267		)	(3		)	(13		)	(10		)	(4		)	(30		)
Balance at December 31, 2012	$	321		$	456		$	192		$	221		$	1,190		$	24		$	58		$	31		$	11		$	124
Actual return on plan assets:
Relating to assets still held at the reporting date	15			98			32			21			166			(2		)	6			3			1			8
Relating to assets sold during the period	(36		)	(48		)	(34		)	(4		)	(122		)	1			3			—			1			5
Purchases	6			115			32			—			153			1			7			2			—			10
Sales	(79		)	(91		)	(42		)	(51		)	(263		)	(5		)	(14		)	(9		)	(3		)	(31		)
Balance at December 31, 2013	$	227		$	530		$	180		$	187		$	1,124		$	19		$	60		$	27		$	10		$	116
Actual return on plan assets:
Relating to assets still held at the reporting date	40			70			12			4			126			4			7			2			—			13
Relating to assets sold during the period	(18		)	(67		)	(26		)	(4		)	(115		)	(1		)	(7		)	(3		)	—			(11		)
Purchases	—			135			10			—			145			—			13			1			—			14
Sales	(40		)	(150		)	(32		)	(25		)	(247		)	(3		)	(15		)	(9		)	(1		)	(28		)
Balance at December 31, 2014	$	209		$	518		$	144		$	162		$	1,033		$	19		$	58		$	18		$	9		$	104
DOMINION GAS
Balance at December 31, 2011	$	68		$	99		$	54		$	64		$	285		$	3		$	15		$	10		$	—		$	28
Actual return on plan assets:
Relating to assets still held at the reporting date	6			12			4			4			26			—			(1		)	(1		)	—			(2		)
Relating to assets sold during the period	(2		)	(9		)	(2		)	—			(13		)	—			2			1			—			3
Purchases	7			17			3			—			27			—			1			—			—			1
Sales	(7		)	(16		)	(16		)	(18		)	(57		)	—			(4		)	(2		)	—			(6		)
Balance at December 31, 2012	$	72		$	103		$	43		$	50		$	268		$	3		$	13		$	8		$	—		$	24
Actual return on plan assets:
Relating to assets still held at the reporting date	4			24			7			5			40			(1		)	2			1			—			2
Relating to assets sold during the period	(8		)	(10		)	(7		)	(1		)	(26		)	—			—			—			—			—
Purchases	1			25			7			—			33			—			1			—			—			1
Sales	(17		)	(20		)	(9		)	(11		)	(57		)	—			(4		)	(2		)	—			(6		)
Balance at December 31, 2013	$	52		$	122		$	41		$	43		$	258		$	2		$	12		$	7		$	—		$	21
Actual return on plan assets:
Relating to assets still held at the reporting date	9			17			4			1			31			—			2			1			—			3
Relating to assets sold during the period	(4		)	(15		)	(6		)	(1		)	(26		)	—			(1		)	(1		)	—			(2		)
Purchases	—			30			2			—			32			—			2			—			—			2
Sales	(9		)	(33		)	(7		)	(5		)	(54		)	—			(3		)	(3		)	—			(6		)
Balance at December 31, 2014	$	48		$	121		$	34		$	38		$	241		$	2		$	12		$	4		$	—		$	18

Net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities

The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans are as follows:



	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2014			2013			2012			2014			2013			2012
(millions, except percentages)
DOMINION
Service cost	$	114		$	131		$	116		$	32		$	43		$	44
Interest cost	290			271			268			67			73			79
Expected return on plan assets	(499		)	(462		)	(430		)	(111		)	(92		)	(79		)
Amortization of prior service (credit) cost	3			3			3			(28		)	(15		)	(13		)
Amortization of net actuarial loss	111			165			132			2			7			6
Settlements and curtailments⁽¹⁾	1			(2		)	—			—			(15		)	(4		)
Special termination benefits	—			—			—			—			1			—
Net periodic benefit (credit) cost	$	20		$	106		$	89		$	(38	)	$	2		$	33
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	784		$	(968	)	$	786		$	183		$	(255	)	$	139
Prior service (credit) cost	—			1			—			9			(215		)	1
Settlements and curtailments⁽¹⁾	(1		)	(22		)	—			—			(7		)	(2		)
Less amounts included in net periodic benefit cost:
Amortization of net actuarial loss	(111		)	(165		)	(132		)	(2		)	(7		)	(6		)
Amortization of prior service credit (cost)	(3		)	(3		)	(3		)	28			15			13
Total recognized in other comprehensive income and regulatory assets and liabilities	$	669		$	(1,157	)	$	651		$	218		$	(469	)	$	145
Significant assumptions used to determine periodic cost:
Discount rate	5.20% - 5.30%			4.40% - 4.80%			5.50		%	4.20% - 5.10%			4.40% - 4.80%			5.50		%
Expected long-term rate of return on plan assets	8.75		%	8.50		%	8.50		%	8.50		%	7.75		%	7.75		%
Weighted average rate of increase for compensation	4.21		%	4.21		%	4.21		%	4.22		%	4.22		%	4.22		%
Healthcare cost trend rate⁽²⁾										7.00		%	7.00		%	7.00		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)⁽²⁾										5.00		%	4.60		%	4.60		%
Year that the rate reaches the ultimate trend rate⁽²⁾⁽³⁾										2018			2062			2061
DOMINION GAS
Service cost	$	12		$	13		$	11		$	6		$	7		$	7
Interest cost	28			27			28			13			12			14
Expected return on plan assets	(115		)	(106		)	(96		)	(23		)	(19		)	(16		)
Amortization of prior service (credit) cost	1			1			1			(1		)	(3		)	(4		)
Amortization of net actuarial loss	19			26			26			—			2			1
Net periodic benefit (credit) cost	$	(55	)	$	(39	)	$	(30	)	$	(5	)	$	(1	)	$	2
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	43		$	(127	)	$	35		$	40		$	(40	)	$	12
Prior service cost	—			—			—			10			—			—
Less amounts included in net periodic benefit cost:
Amortization of net actuarial loss	(19		)	(26		)	(26		)	—			(2		)	(1		)
Amortization of prior service credit (cost)	(1		)	(1		)	(1		)	1			3			4
Total recognized in other comprehensive income and regulatory assets and liabilities	$	23		$	(154	)	$	8		$	51		$	(39	)	$	15
Significant assumptions used to determine periodic cost:
Discount rate	5.20		%	4.40% - 4.80%			5.50		%	4.20% - 5.00%			4.40% - 4.70%			5.50		%
Expected long-term rate of return on plan assets	8.75		%	8.50		%	8.50		%	8.50		%	7.75		%	7.75		%
Weighted average rate of increase for compensation	3.93		%	3.93		%	3.93		%	3.93		%	3.93		%	3.93		%
Healthcare cost trend rate⁽²⁾										7.00		%	7.00		%	7.00		%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)⁽²⁾										5.00		%	4.60		%	4.60		%
Year that the rate reaches the ultimate trend rate⁽²⁾⁽³⁾										2018			2062			2061


(1)	2013 amounts relate primarily to the decommissioning of Kewaunee.


(2)	Assumptions used to determine net periodic cost for the following year.


(3)	The Society of Actuaries model used to determine healthcare cost trend rates was updated in 2014. The new model converges to the ultimate trend rate much more quickly than previous models.

Components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost

The components of AOCI and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:



	Pension Benefits				Other Postretirement Benefits
At December 31,	2014		2013		2014			2013
(millions)
DOMINION
Net actuarial (gain) loss	$	2,382	$	1,709	$	139		$	(40	)
Prior service (credit) cost	7		10		(233		)	(271		)
Total⁽¹⁾	$	2,389	$	1,719	$	(94	)	$	(311	)
DOMINION GAS
Net actuarial loss	$	303	$	279	$	43		$	3
Prior service (credit) cost	1		2		7			(4		)
Total⁽²⁾	$	304	$	281	$	50		$	(1	)

(1)

As of December 31, 2014, of the $2.4 billion and $(94) million related to pension benefits and other postretirement benefits, $1.4 billion and $(81) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2013, of the $1.7 billion and $(311) million related to pension benefits and other postretirement benefits, $1.0 billion and $(156) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.

(2)

As of December 31, 2014, of the $304 million related to pension benefits, $112 million is included in AOCI, with the remainder included in regulatory assets and liabilities; the $50 million related to other postretirement benefits is included entirely in regulatory assets and liabilities. As of December 31, 2013, of the $281 million related to pension benefits, $104 million is included in AOCI, with the remainder included in regulatory assets and liabilities; the $(1) million related to other postretirement benefits is included entirely in regulatory assets and liabilities.

Components of AOCI and regulatory assets and liabilities that are expected to be amortized as components of periodic benefit cost in 2014

The following table provides the components of AOCI and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans as of December 31, 2014 that are expected to be amortized as components of net periodic benefit (credit) cost in 2015:



	Pension Benefits		Other Postretirement Benefits
(millions)
DOMINION
Net actuarial loss	$	160	$	6
Prior service (credit) cost	2		(27		)
DOMINION GAS
Net actuarial loss	$	20	$	2
Prior service cost	1		—

Effect of one percentage point change on benefit plans

A one percentage point change in assumed healthcare cost trend rates would have had the following effects for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) other postretirement benefit plans:



	Other Postretirement Benefits
	One percentage point increase		One percentage point decrease
(millions)
DOMINION
Effect on net periodic cost for 2015	$	26	$	(16	)
Effect on other postretirement benefit obligation at December 31, 2014	186		(152		)
DOMINION GAS
Effect on net periodic cost for 2015	$	5	$	(4	)
Effect on other postretirement benefit obligation at December 31, 2014	40		(30		)

As of December 31,

(millions)

Accumulated benefit obligation

Fair value of plan assets