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 $108 million and $104 million at March 31, 2017 and December 31, 2016, 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, 2017
Marketable equity securities:
U.S.	$	1,543	$	1,478	$	—			$	3,021
Fixed income:
Corporate debt instruments	488		13		(3		)		498
Government securities	977		24		(6		)		995
Common/collective trust funds	66		—		—				66
Cost method investments	69		—		—				69
Cash equivalents and other⁽²⁾	6		—		—				6
Total	$	3,149	$	1,515	$	(9	)	⁽³⁾	$	4,655
At December 31, 2016
Marketable equity securities:
U.S.	$	1,449	$	1,408	$	—			$	2,857
Fixed income:
Corporate debt instruments	478		13		(4		)		487
Government securities	978		22		(8		)		992
Common/collective trust funds	67		—		—				67
Cost method investments	69		—		—				69
Cash equivalents and other⁽²⁾	12		—		—				12
Total	$	3,053	$	1,443	$	(12	)	⁽³⁾	$	4,484


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


(2)	Includes net pending sales of securities of $2 million and $9 million at March 31, 2017 and December 31, 2016, respectively.


(3)	The fair value of securities in an unrealized loss position was $461 million and $576 million at March 31, 2017 and December 31, 2016, respectively.

The fair value of Dominion’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2017 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	164
Due after one year through five years	434
Due after five years through ten years	385
Due after ten years	576
Total	$	1,559

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



	Three Months Ended March 31,
	2017		2016
(millions)
Proceeds from sales	$	756	$	368
Realized gains⁽¹⁾	94		25
Realized losses⁽¹⁾	20		19


(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, 2017 and 2016.

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, 2017
Marketable equity securities:
U.S.	$	720	$	654	$	—			$	1,374
Fixed income:
Corporate debt instruments	278		6		(2		)		282
Government securities	418		11		(2		)		427
Common/collective trust funds	30		—		—				30
Cost method investments	69		—		—				69
Cash equivalents and other⁽²⁾	4		—		—				4
Total	$	1,519	$	671	$	(4	)	⁽³⁾	$	2,186
At December 31, 2016
Marketable equity securities:
U.S.	$	677	$	624	$	—			$	1,301
Fixed income:
Corporate debt instruments	274		6		(4		)		276
Government securities	420		9		(2		)		427
Common/collective trust funds	26		—		—				26
Cost method investments	69		—		—				69
Cash equivalents and other⁽²⁾	7		—		—				7
Total	$	1,473	$	639	$	(6	)	⁽³⁾	$	2,106


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


(2)	Includes pending sales of securities of $4 million and $7 million at March 31, 2017 and December 31, 2016, respectively.


(3)	The fair value of securities in an unrealized loss position was $214 million and $287 million at March 31, 2017 and December 31, 2016, respectively.

The fair value of Virginia Power’s marketable debt securities held in nuclear decommissioning trust funds at March 31, 2017 by contractual maturity is as follows:



	Amount
(millions)
Due in one year or less	$	60
Due after one year through five years	188
Due after five years through ten years	205
Due after ten years	286
Total	$	739

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,
	2017		2016
(millions)
Proceeds from sales	$	330	$	193
Realized gains⁽¹⁾	45		12
Realized losses⁽¹⁾	10		10


(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, 2017 and 2016.

Equity Method Investments

Dominion

Atlantic Coast Pipeline

In the first quarter of 2017, Dominion contributed $117 million to Atlantic Coast Pipeline.

Dominion Gas

Iroquois

Dominion Gas' equity earnings totaled $7 million and $6 million for the three months ended March 31, 2017 and 2016, respectively. Dominion Gas received distributions from this investment of $6 million for both the three months ended March 31, 2017 and 2016. At March 31, 2017 and December 31, 2016, the carrying amount of Dominion Gas' investment of $99 million and $98 million, respectively, exceeded its share of underlying equity in net assets by $8 million. The difference reflects equity method goodwill and is not being amortized.