Investments

Dominion

Equity and Debt Securities

Rabbi Trust Securities

Marketable equity and debt securities and cash equivalents held in Dominion’s rabbi trusts and classified as trading totaled $98 million and $100 million at March 31, 2016 and December 31, 2015, respectively.

Decommissioning Trust Securities

Dominion holds marketable equity and debt securities (classified as available-for-sale), cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Dominion’s decommissioning trust funds are summarized below:



	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾				Fair Value
(millions)
At March 31, 2016
Marketable equity securities:
U.S. large cap	$	1,317	$	1,218	$	—			$	2,535
REIT	60		7		—				67
Marketable debt securities:
Corporate bonds	448		19		(3		)		464
U.S. Treasury securities and agency debentures	650		20		—				670
State and municipal	308		25		—				333
Other	96		—		—				96
Cost method investments	70		—		—				70
Cash equivalents and other⁽²⁾	4		—		—				4
Total	$	2,953	$	1,289	$	(3	)	⁽³⁾	$	4,239
At December 31, 2015
Marketable equity securities:
U.S. large cap	$	1,295	$	1,213	$	—			$	2,508
REIT	59		4		—				63
Marketable debt securities:
Corporate bonds	433		11		(7		)		437
U.S. Treasury securities and agency debentures	654		8		(4		)		658
State and municipal	312		22		—				334
Other	99		—		—				99
Cost method investments	70		—		—				70
Cash equivalents and other⁽²⁾	14		—		—				14
Total	$	2,936	$	1,258	$	(11	)	⁽³⁾	$	4,183


(1)	Included in AOCI and the nuclear decommissioning trust regulatory liability.


(2)	Includes pending sales of securities of $2 million and $12 million at March 31, 2016 and December 31, 2015, respectively.


(3)	The fair value of securities in an unrealized loss position was $151 million and $592 million at March 31, 2016 and December 31, 2015, respectively.

The fair value of Dominion’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2016 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	211
Due after one year through five years	423
Due after five years through ten years	380
Due after ten years	549
Total	$	1,563

Presented below is selected information regarding Dominion’s marketable equity and debt securities held in nuclear decommissioning trust funds.



	Three Months Ended March 31,
	2016		2015
(millions)
Proceeds from sales	$	368	$	337
Realized gains⁽¹⁾	25		56
Realized losses⁽¹⁾	19		17


(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds for Dominion were not material for the three months ended March 31, 2016 and 2015.

Virginia Power

Virginia Power holds marketable equity and debt securities (classified as available-for-sale), cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Virginia Power’s decommissioning trust funds are summarized below:



	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾				Fair Value
(millions)
At March 31, 2016
Marketable equity securities:
U.S. large cap	$	583	$	529	$	—			$	1,112
REIT	60		7		—				67
Marketable debt securities:
Corporate bonds	242		9		(1		)		250
U.S. Treasury securities and agency debentures	257		6		—				263
State and municipal	159		13		—				172
Other	46		—		—				46
Cost method investments	70		—		—				70
Total	$	1,417	$	564	$	(1	)	⁽³⁾	$	1,980
At December 31, 2015
Marketable equity securities:
U.S. large cap	$	574	$	525	$	—			$	1,099
REIT	59		4		—				63
Marketable debt securities:
Corporate bonds	237		5		(4		)		238
U.S. Treasury securities and agency debentures	260		1		(2		)		259
State and municipal	162		13		(1		)		174
Other	34		—		—				34
Cost method investments	70		—		—				70
Cash equivalents and other⁽²⁾	8		—		—				8
Total	$	1,404	$	548	$	(7	)	⁽³⁾	$	1,945


(1)	Included in AOCI and the nuclear decommissioning trust regulatory liability.


(2)	Includes pending sales of securities of $8 million at December 31, 2015. There were no pending sales of securities at March 31, 2016.


(3)	The fair value of securities in an unrealized loss position was $91 million and $281 million at March 31, 2016 and December 31, 2015, respectively.

The fair value of Virginia Power’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2016 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	74
Due after one year through five years	191
Due after five years through ten years	196
Due after ten years	270
Total	$	731

Presented below is selected information regarding Virginia Power’s marketable equity and debt securities held in nuclear decommissioning trust funds.



	Three Months Ended March 31,
	2016		2015
(millions)
Proceeds from sales	$	193	$	133
Realized gains⁽¹⁾	12		18
Realized losses⁽¹⁾	10		11


(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds for Virginia Power were not material for the three months ended March 31, 2016 and 2015.

Equity Method Investments

Dominion Gas

Iroquois

Dominion Gas' equity earnings totaled $6 million and $8 million for the three months ended March 31, 2016 and 2015, respectively. Dominion Gas received distributions from this investment of $6 million and $12 million for the three months ended March 31, 2016 and 2015, respectively. At both March 31, 2016 and December 31, 2015, the carrying amount of Dominion Gas' investment of $102 million exceeded its share of underlying equity in net assets by $8 million. The difference reflects equity method goodwill and is not being amortized. In May 2016, Dominion Gas sold 0.65% of the non-controlling partnership interest in Iroquois to TransCanada for approximately $7 million, which resulted in a $5 million ($3 million after-tax) gain.