Operating Segments

3 Months Ended

Mar. 31, 2017

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
Dominion Energy	Gas transmission and storage	X		X
	Gas distribution and storage	X		X
	Gas gathering and processing	X		X
	LNG import and storage	X
	Nonregulated retail energy marketing	X

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 in allocating resources.

In the three months ended March 31, 2017, Dominion reported after-tax net income of $21 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segments. In the three months ended March 31, 2016, Dominion reported an after-tax net expense of $48 million for specific items in the Corporate and Other segment, with $38 million of these net expenses attributable to its operating segments.

The net income for specific items attributable to Dominion's operating segments in 2017 primarily related to the impact of the following item which was attributable to Dominion Generation:

• A $34 million ($21 million after-tax) net gain on investments held in nuclear decommissioning trust funds.

The net expense for specific items attributable to Dominion's operating segments in 2016 primarily related to the impact of the following item:

• A $66 million ($41 million after-tax) charge related to an organizational design initiative, attributable to:

• DVP ($6 million after-tax);

• Dominion Energy ($12 million after-tax); and

• Dominion Generation ($23 million after-tax).

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, 2017
Total revenue from external customers	$	554	$	1,653	$	901	$	3		$	273		$	3,384
Intersegment revenue	5		3		266		152			(426		)	—
Total operating revenue	559		1,656		1,167		155			(153		)	3,384
Net income (loss) attributable to Dominion	125		261		263		(17		)	—			632
Three Months Ended March 31, 2016
Total revenue from external customers	$	556	$	1,693	$	485	$	3		$	184		$	2,921
Intersegment revenue	5		3		178		192			(378		)	—
Total operating revenue	561		1,696		663		195			(194		)	2,921
Net income (loss) attributable to Dominion	120		245		186		(27		)	—			524

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 in allocating resources.

In the three months ended March 31, 2017, Virginia Power reported after-tax net income of $2 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segments. In the three months ended March 31, 2016, Virginia Power reported an after-tax net expense of $26 million for specific items in the Corporate and Other segment, with $25 million of these net expenses attributable to its operating segments.

The net expense for specific items attributable to Virginia Power's operating segments in 2016 primarily related to the impact of the following item:

• A $40 million ($25 million after-tax) charge related to an organizational design initiative, attributable to:

• DVP ($6 million after-tax); and

• Dominion Generation ($19 million after-tax).

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, 2017
Operating revenue	$	557	$	1,274	$	—		$	1,831
Net income	125		223		8			356
Three Months Ended March 31, 2016
Operating revenue	$	557	$	1,333	$	—		$	1,890
Net income (loss)	118		166		(21		)	263

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 or in allocating resources 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, 2017, Dominion Gas reported no specific items in the Corporate and Other segment. In the three months ended March 31, 2016, Dominion Gas reported an after-tax net expense of $2 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segment.

The net expense for specific items in 2016 primarily related to an $8 million ($5 million after-tax) charge related to an organizational design initiative.

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

	Dominion Energy		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2017
Operating revenue	$	490	$	—		$	490
Net income (loss)	109		(1		)	108
Three Months Ended March 31, 2016
Operating revenue	$	431	$	—		$	431
Net income (loss)	103		(5		)	98