Derivatives and Hedge Accounting Activities

The Companies' accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in the Companies' Annual Report on Form 10-K for the year ended December 31, 2016. 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 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. Virginia Power's and 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:



	March 31, 2017						December 31, 2016
	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)
Commodity contracts:
Over-the-counter	$	206	$	—	$	206	$	211	$	—	$	211
Exchange	42		—		42		44		—		44
Interest rate contracts:
Over-the-counter	20		—		20		17		—		17
Total derivatives, subject to a master netting or similar arrangement	268		—		268		272		—		272
Total derivatives, not subject to a master netting or similar arrangement	6		—		6		7		—		7
Total	$	274	$	—	$	274	$	279	$	—	$	279



			March 31, 2017								December 31, 2016
			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)
Commodity contracts:
Over-the-counter	$	206	$	6	$	—	$	200	$	211	$	14	$	—	$	197
Exchange	42		42		—		—		44		44		—		—
Interest rate contracts:
Over-the-counter	20		11		—		9		17		9		—		8
Total	$	268	$	59	$	—	$	209	$	272	$	67	$	—	$	205



	March 31, 2017						December 31, 2016
	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)
Commodity contracts:
Over-the-counter	$	21	$	—	$	21	$	23	$	—	$	23
Exchange	61		—		61		71		—		71
Interest rate contracts:
Over-the-counter	59		—		59		53		—		53
Foreign currency contracts:
Over-the-counter	6		—		6		6		—		6
Total derivatives, subject to a master netting or similar arrangement	147		—		147		153		—		153
Total derivatives, not subject to a master netting or similar arrangement	3		—		3		2		—		2
Total	$	150	$	—	$	150	$	155	$	—	$	155



			March 31, 2017								December 31, 2016
			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)
Commodity contracts:
Over-the-counter	$	21	$	6	$	2	$	13	$	23	$	14	$	—	$	9
Exchange	61		42		19		—		71		44		27		—
Interest rate contracts:
Over-the-counter	59		11		—		48		53		9		—		44
Foreign currency contracts:
Over-the-counter	6		—		—		6		6		—		—		6
Total	$	147	$	59	$	21	$	67	$	153	$	67	$	27	$	59

Volumes

The following table presents the volume of Dominion’s derivative activity at March 31, 2017. These volumes are based on open derivative positions and represent the combined absolute value of its long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	92		11
Basis	194		607
Electricity (MWh):
Fixed price	13,457,158		1,537,046
FTRs	19,361,385		—
Liquids (Gal)⁽²⁾	60,968,672		—
Interest rate⁽³⁾	$	2,050,000,000	$	4,953,640,679
Foreign currency⁽³⁾⁽⁴⁾	$	—	$	280,000,000


(1)	Includes options.


(2)	Includes NGLs and oil.


(3)	Maturity is determined based on final settlement period.


(4)	Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the three months ended March 31, 2017 and 2016, 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 March 31, 2017:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	7		$	7		33 months
Electricity	(4		)	(4		)	9 months
Interest rate	(267		)	(6		)	393 months
Foreign currency	4			(1		)	111 months
Total	$	(260	)	$	(4	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest payments) 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, interest rates and foreign currency exchange 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)
At March 31, 2017
ASSETS
Current Assets
Commodity	$	33	$	107	$	140
Interest rate	19		—		19
Total current derivative assets⁽¹⁾	52		107		159
Noncurrent Assets
Commodity	—		114		114
Interest rate	1		—		1
Total noncurrent derivative assets⁽²⁾	1		114		115
Total derivative assets	$	53	$	221	$	274
LIABILITIES
Current Liabilities
Commodity	$	29	$	53	$	82
Interest rate	35		—		35
Foreign currency	1		—		1



Total current derivative liabilities⁽³⁾	65		53		118
Noncurrent Liabilities
Commodity	—		3		3
Interest rate	24		—		24
Foreign currency	5		—		5
Total noncurrent derivative liabilities⁽⁴⁾	29		3		32
Total derivative liabilities	$	94	$	56	$	150
At December 31, 2016
ASSETS
Current Assets
Commodity	$	29	$	101	$	130
Interest rate	10		—		10
Total current derivative assets⁽¹⁾	39		101		140
Noncurrent Assets
Commodity	—		132		132
Interest rate	7		—		7
Total noncurrent derivative assets⁽²⁾	7		132		139
Total derivative assets	$	46	$	233	$	279
LIABILITIES
Current Liabilities
Commodity	$	51	$	41	$	92
Interest rate	33		—		33
Foreign currency	3		—		3
Total current derivative liabilities⁽³⁾	87		41		128
Noncurrent Liabilities
Commodity	1		3		4
Interest rate	20		—		20
Foreign currency	3		—		3
Total noncurrent derivative liabilities⁽⁴⁾	24		3		27
Total derivative liabilities	$	111	$	44	$	155

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


(4)	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 March 31, 2017
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	62
Purchased gas				1
Electric fuel and other energy-related purchases				(1		)
Total commodity	$	87		$	62		$	—
Interest rate⁽³⁾	1			(11		)	8
Foreign currency⁽⁴⁾	(18		)	(14		)	—
Total	$	70		$	37		$	8
Three Months Ended March 31, 2016
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	114
Purchased gas				(6		)
Electric fuel and other energy-related purchases				(3		)
Total commodity	$	173		$	105		$	—
Interest rate⁽³⁾	(87		)	(3		)	(133		)
Total	$	86		$	102		$	(133	)


(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.


(4)	Amounts recorded in Dominion’s Consolidated Statements of Income are classified in other income.



	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments	2017			2016
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	4		$	2
Purchased gas	16			—
Electric fuel and other energy-related purchases	(23		)	(23		)
Other operations and maintenance	(1		)	—
Total	$	(4	)	$	(21	)


(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:



	March 31, 2017						December 31, 2016
	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)
Commodity contracts:
Over-the-counter	$	143	$	—	$	143	$	147	$	—	$	147
Interest rate contracts:
Over-the-counter	8		—		8		6		—		6
Total derivatives, subject to a master netting or similar arrangement	151		—		151		153		—		153
Total derivatives, not subject to a master netting or similar arrangement	27		—		27		41		—		41
Total	$	178	$	—	$	178	$	194	$	—	$	194



			March 31, 2017								December 31, 2016
			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)
Commodity contracts:
Over-the-counter	$	143	$	1	$	—	$	142	$	147	$	2	$	—	$	145
Interest rate contracts:
Over-the-counter	8		—		—		8		6		—		—		6
Total	$	151	$	1	$	—	$	150	$	153	$	2	$	—	$	151



	March 31, 2017						December 31, 2016
	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)
Commodity contracts:
Over-the-counter	$	8	$	—	$	8	$	2	$	—	$	2
Interest rate contracts:
Over-the-counter	22		—		22		21		—		21
Total derivatives, subject to a master netting or similar arrangement	30		—		30		23		—		23
Total derivatives, not subject to a master netting or similar arrangement	3		—		3		8		—		8
Total	$	33	$	—	$	33	$	31	$	—	$	31



			March 31, 2017								December 31, 2016
			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)
Commodity contracts:
Over-the-counter	$	8	$	1	$	2	$	5	$	2	$	2	$	—	$	—
Interest rate contracts:
Over-the-counter	22		—		—		22		21		—		—		21
Total	$	30	$	1	$	2	$	27	$	23	$	2	$	—	$	21

Volumes

The following table presents the volume of Virginia Power’s derivative activity at March 31, 2017. These volumes are based on open derivative positions and represent the combined absolute value of its long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	37		8
Basis	74		565
Electricity (MWh):
Fixed price⁽¹⁾	1,580,034		1,537,046
FTRs	17,668,870		—
Interest rate⁽²⁾	$	1,050,000,000	$	1,150,000,000


(1)	Includes options.


(2)	Maturity is determined based on final settlement period.

Ineffectiveness and AOCI

For the three months ended March 31, 2017 and 2016, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at March 31, 2017:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(8	)	$	(1	)	393 months
Total	$	(8	)	$	(1	)

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)
At March 31, 2017
ASSETS
Current Assets
Commodity	$	—	$	59	$	59
Interest rate	8		—		8
Total current derivative assets⁽¹⁾	8		59		67
Noncurrent Assets
Commodity	—		111		111
Total noncurrent derivative assets⁽²⁾	—		111		111
Total derivative assets	$	8	$	170	$	178
LIABILITIES
Current Liabilities
Commodity	$	—	$	11	$	11
Interest rate	13		—		13
Total current derivative liabilities⁽³⁾	13		11		24
Noncurrent Liabilities
Interest rate	9		—		9
Total noncurrent derivatives liabilities ⁽⁴⁾	9		—		9
Total derivative liabilities	$	22	$	11	$	33
At December 31, 2016
ASSETS
Current Assets
Commodity	$	—	$	60	$	60
Interest rate	6		—		6
Total current derivative assets⁽¹⁾	6		60		66
Noncurrent Assets
Commodity	—		128		128
Total noncurrent derivative assets⁽²⁾	—		128		128
Total derivative assets	$	6	$	188	$	194
LIABILITIES
Current Liabilities
Commodity	$	—	$	10	$	10
Interest rate	8		—		8
Total current derivative liabilities⁽³⁾	8		10		18
Noncurrent Liabilities
Interest rate	13		—		13
Total noncurrent derivative liabilities⁽⁴⁾	13		—		13
Total derivative liabilities	$	21	$	10	$	31


(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.


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


(4)	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 March 31, 2017
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	—		$	—	$	8
Total	$	—		$	—	$	8
Three Months Ended March 31, 2016
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(14	)	$	—	$	(133	)
Total	$	(14	)	$	—	$	(133	)


(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 March 31,
Derivatives Not Designated as Hedging Instruments	2017			2016
(millions)
Derivative type and location of gains (losses):
Commodity⁽²⁾	$	(17	)	$	(20	)
Total	$	(17	)	$	(20	)


(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 liability balances by type of financial instrument, before and after the effects of offsetting. Derivative assets at March 31, 2017 and December 31, 2016 were not material.



	March 31, 2017						December 31, 2016
	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)
Commodity contracts:
Over-the-counter	$	1	$	—	$	1	$	5	$	—	$	5
Foreign currency contracts:
Over-the-counter	6		—		6		6		—		6
Total derivatives, subject to a master netting or similar arrangement	$	7	$	—	$	7	$	11	$	—	$	11



			March 31, 2017								December 31, 2016
			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)
Commodity contracts
Over-the-counter	$	1	$	—	$	—	$	1	$	5	$	—	$	—	$	5
Foreign currency contracts:
Over-the-counter	6		—		—		6		6		—		—		6
Total	$	7	$	—	$	—	$	7	$	11	$	—	$	—	$	11

Volumes

The following table presents the volume of Dominion Gas' derivative activity at March 31, 2017. These volumes are based on open derivative positions and represent the combined absolute value of its long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price	3		—
Basis	6		—
NGLs (Gal)	51,224,672		—
Foreign currency⁽¹⁾	$	—	$	280,000,000


(1)	Maturity is determined based on final settlement period. Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the three months ended March 31, 2017 and 2016, 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 March 31, 2017:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(26	)	$	(3	)	333 months
Foreign currency	4			(1		)	111 months
Total	$	(22	)	$	(4	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest payments) 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 interest rates and foreign currency exchange rates.

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion Gas' 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 March 31, 2017
LIABILITIES
Current Liabilities
Commodity	$	—	$	1	$	1
Foreign currency	1		—		1
Total current derivative liabilities⁽¹⁾	1		1		2
Noncurrent Liabilities
Foreign currency	5		—		5
Total noncurrent derivative liabilities⁽²⁾	5		—		5
Total derivative liabilities	$	6	$	1	$	7
At December 31, 2016
LIABILITIES
Current Liabilities
Commodity	$	4	$	—	$	4
Foreign currency	3		—		3
Total current derivative liabilities⁽¹⁾	7		—		7
Noncurrent Liabilities
Commodity	1		—		1
Foreign currency	3		—		3
Total noncurrent derivative liabilities⁽²⁾	4		—		4
Total derivative liabilities	$	11	$	—	$	11


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


(2)	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. The gains and losses associated with derivatives not designated as hedging instruments were immaterial for the three months ended March 31, 2017 and 2016.



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 March 31, 2017
Derivative Type and Location of Gains (Losses):
Commodity:
Operating revenue				$	(3	)
Total commodity	$	2		$	(3	)
Interest rate⁽²⁾	—			(1		)
Foreign currency⁽³⁾	(18		)	(14		)
Total	$	(16	)	$	(18	)
Three Months Ended March 31, 2016
Derivative Type and Location of Gains (Losses):
Commodity:
Operating revenue				$	4
Total commodity	$	(1	)	$	4
Interest rate⁽²⁾	(9		)	—
Total	$	(10	)	$	4


(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.


(3)	Amounts recorded in Dominion Gas' Consolidated Statements of Income are classified in other income.