Operating Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Operating Segments

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 for Dominion.

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 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, 2015, Dominion reported an after-tax net expense of $48 million for specific items in the Corporate and Other segment, with $45 million of these net expenses attributable to its operating segments. 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.

The net expense for specific items in 2015 primarily related to the impact of the following items:

• An $85 million ($52 million after-tax) write-off of deferred fuel costs associated with Virginia legislation enacted in February 2015, attributable to Dominion Generation; and

• A $17 million ($10 million after-tax) billing adjustment related to PJM, attributable to Dominion Generation; partially offset by

• A $27 million ($17 million after-tax) net gain on investments held in nuclear decommissioning trust funds, attributable to Dominion Generation.

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

	DVP		Dominion Generation		Dominion Energy		Corporate and Other			Adjustments/Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2015
Total revenue from external customers	$	564	$	2,122	$	379	$	(13	)	$	357		$	3,409
Intersegment revenue	5		26		360		142			(533		)	—
Total operating revenue	569		2,148		739		129			(176		)	3,409
Net income (loss) attributable to Dominion	140		282		207		(93		)	—			536
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

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 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 the three months ended March 31, 2015, Virginia Power reported an after-tax net expense of $61 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segments. There were no material net benefit or expense items in the Corporate and Other segment in the three months ended March 31, 2014.

The net expense for specific items in 2015 primarily related to the impact of the following items:

• An $85 million ($52 million after-tax) write-off of deferred fuel costs associated with Virginia legislation enacted in February 2015, attributable to Dominion Generation; and

• A $15 million ($9 million after-tax) billing adjustment related to PJM, attributable to Dominion Generation.

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, 2015
Operating revenue	$	567	$	1,585	$	(15	)	$	2,137
Net income (loss)	140		190		(61		)	269
Three Months Ended March 31, 2014
Operating revenue	$	502	$	1,481	$	—		$	1,983
Net income	134		189		1			324

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 the three months ended March 31, 2015 and 2014, Dominion Gas reported no amounts for specific items in the Corporate and Other segment.

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

	Dominion Energy		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2015
Operating revenue	$	531	$	—		$	531
Net income (loss)	164		(3		)	161
Three Months Ended March 31, 2014
Operating revenue	$	569	$	—		$	569
Net income (loss)	166		(2		)	164