Dominion Resources

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Dominion Resources
Type Public
Traded as NYSED
S&P 500 Component
Industry Electric utility
Founded Virginia, U.S. (1983)
Headquarters Richmond, Virginia, U.S.
Key people Thomas Farrell (Chairman, CEO)
Mark McGettrick(CFO)
Products Electricity
Natural gas
Revenue
  • Increase US$ 13,120.0 million (2013) [1]
  • Decrease US$ 12,835.0 million (2012) [1]
Operating income
  • Increase US$ 3,316.0 million (2013) [1]
  • Decrease US$ 2,858.0 million (2012) [1]
Net income
  • Increase US$ 1,697.0 million (2013) [1]
  • Decrease US$ 302.0 million (2012) [1]
Total assets
  • Increase US$ 50,096.0 million (2013) [2]
  • US$ 46,838.0 million (2012) [1]
Total equity
  • Increase US$ 11,642.0 million (2013) [1]
  • Decrease US$ 10,625.0 million (2012) [1]
Employees 15,500 (2012)
Website www.dom.com
Footnotes / references
[3][4][5]

Dominion Resources, Inc., commonly referred to as Dominion, is a power and energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia and North Carolina and supplies natural gas to parts of West Virginia, Ohio, Pennsylvania, and eastern North Carolina. Dominion also has generation facilities in Wisconsin, Indiana, Illinois, Connecticut and Massachusetts.

Overview[edit]

The company's asset portfolio includes 27,000 megawatts of power generation, 6,000 miles (9,700 km) of electric transmission lines, 14,000 miles (23,000 km) of natural gas transmission, gathering and storage pipeline, and 1.2 trillion cubic feet (34 km3) equivalent of natural gas and oil reserves. Dominion also operates the nation's largest natural gas storage facility,[6] amounting to more than 975 billion cubic feet (2.76×1010 m3) of storage capacity.[5] The company's Cove Point liquefied natural gas (LNG) import terminal on the Chesapeake Bay is one of the nation's largest and busiest facilities of its kind. Dominion serves more than 5 million retail energy customers in the Midwest, mid-Atlantic and Northeast regions of the U.S.

In 2009, Dominion was listed at #157 on the Fortune 500.[7] A book about the company's 100-year history, Dominion’s First Century: A Legacy of Service, was published in 2010.[8]

Generation Mix[edit]

46 percent of Dominion's total electric production comes from coal, 41 percent comes from nuclear power, 9 percent comes from natural gas, 1 percent comes from oil, and the remaining 3 percent comes from Hydro and other renewables. Renewable energy sources, primarily wind and biomass, and conservation and efficiency programs will play an increasingly important role in meeting future energy needs and minimizing the company’s environmental footprint.[9]

According to a 2008 op-ed by Dominion senior vice president James K. Martin, the company plans to invest $3.5 billion toward the goal of reducing air emissions at existing stations by more than 80 percent by 2015.[10]

History[edit]

Dominion's corporate roots reach back to the Colonial era through predecessor companies that operated canal and river barging, street lighting, railways, and electric trolleys. In 1795, some dams were built along the Appomattox river for industrial use, beginning Dominion's history.[11]

In 1909, Dominion began operating as an investor-owned electric utility under the name Virginia Railway & Power Company, founded by Frank Jay Gould, according to its website. In 1925, the name was changed to the Virginia Electric and Power Company (VEPCO), and Dominion was operated as a regulated monopoly. In 1940, Dominion doubled its service territory by merging with the Virginia Public Service Company. In 1980, Dominion Resources, Inc., was incorporated as the holding company for VEPCO.[11]

In the 1980s, VEPCO was divided into three operating divisions, Virginia Power, North Carolina Power, and West Virginia Power. In 1986, Dominion gained territory by entering Northern Virginia after purchasing the Virginia distribution territory of Potomac Electric Power Company (PEPCO). In 1987, the West Virginia Power division was later sold to UtiliCorp United, but Dominion retained ownership of the Mount Storm Power Station in West Virginia. [12]

Throughout the 1980s and 1990s, Dominion initiated a series of expansions into regulated and non-regulated energy businesses, both domestically and internationally. During that era, the company also established itself as a world-class operator of nuclear power stations.[13]

In 2000, Dominion bought Consolidated Natural Gas Co. of Pittsburgh, and added natural gas service to its energy delivery network in the energy-intensive markets in the Northeastern quadrant of the U.S. In 2001, Dominion Bought Louis Dreyfus Natural Gas Company, adding to its Natural gas delivery network.[11]

Dominion re-branded all of its operations in 2000 to Dominion from Virginia and North Carolina Power as well as Consolidated Gas in order to create a more unified energy company. In 2007, as part of another effort to refocus on core electric and gas operations, Dominion sold most of its Houston-based natural gas and oil exploration and production business for pre-tax proceeds of nearly $14 billion. Its onshore US oil and gas reserves were sold in separate deals to Loews Corporation and to XTO Energy, while its Gulf of Mexico reserves were sold to Eni, and its Canadian reserves were sold to two Canadian trusts. Dominion still retains some production areas in Appalachia, however.[11][14]

Operations[edit]

Dominion's Chesterfield Power Station

Dominion has three operating businesses:[15]

Dominion Generation[edit]

Dominion generates electricity for both regulated sale in its Virginia and North Carolina markets, and also for wholesale in other markets in the Northeast and Midwest United States. Electricity generation is the largest unit of Dominion.[16]

Dominion Virginia and North Carolina Power[edit]

Dominion is a regulated electric utility that transmits, and distributes electricity from its power plants in Virginia, North Carolina, Connecticut, and West Virginia to customers.

Dominion Energy[edit]

  • Natural gas distribution
  • Natural gas transmission and storage
  • Producer services
  • Solar Funding - Tredegar Solar Fund I, LLC

Dominion Exploration and Production[edit]

Dominion Exploration and Production was the natural gas and oil exploration and production subsidiary of Dominion, and by 2007 was one of the largest independent natural gas and oil operators. During 2007, Dominion sold the majority of its oil and natural gas exploration and production assets to put additional focus on growing its electric generation and energy distribution, transmission, storage and retail businesses mainly in Virginia, West Virginia and North Carolina.[17]

Expansion plans[edit]

To ensure reliable and adequate supplies of energy to meet growing customer demand, Dominion has embarked on a $12 billion infrastructure investment program — the largest in company history. From 2008–2010, Dominion’s capital spending plans include:[citation needed]

  • Natural gas pipeline and storage projects, including expansion of the Cove Point LNG facility in southern Maryland;
  • Customer service and gas distribution investments;
  • Oil and gas exploration and production investments;
  • Electric distribution and transmission upgrades and construction;
  • Renewable and baseload power generation construction, and efficiency and environmental enhancements at existing facilities; and
  • Conservation and energy efficiency program expansions.

Political and Charitable Contributions[edit]

The Dominion Political Action Committee (PAC) has been very active in donating to Virginia candidates. In 2009, the Dominion PAC donated a total of $814,885 with 56% going to Republicans and 41% to Democrats. In 2008, the PAC donated $539,038 with 50% going to Republicans and 47% to Democrats [18]

Dominion’s social investment program is carried out primarily through the Dominion Foundation. The foundation gives about 20 Million Dollars each year to charities in the states where Dominion does business.[19]

Controversies[edit]

High voltage lines[edit]

A number of controversies have surrounded the company's decisions to develop new routes for its electric power transmission lines. On February 13, 2007, The Washington Post reported that the power company was planning to change the route of one 500 kV transmission line to appease critics in Northern Virginia from a route that would cut through protected forest and farmland to a southern route that would bypass nature preserves and Civil War sites by running adjacent to existing power lines. However, U.S. Congressional Representative Frank Wolf (R - VA) and Governor Tim Kaine (D) remained opposed to the line, saying that there was no real need, and that Dominion was trying to bring cheap electricity from the Midwest. Dominion contested, saying that the line would bring needed electricity to growing Northern Virginia. The proposal was accepted by the State Corporation Commission (SCC) on October 7, 2008.[20][21]

On February 15, 2008, the SCC approved a controversial proposal for a 230 kV Dominion Virginia transmission line that would travel above ground for 1.8 miles (2.9 km) along a wooded portion of the Washington & Old Dominion Railroad Trail between Leesburg and Clarks Gap in Loudoun County, which Dominion again claimed was necessary for power reliability.[22][23][24] Less than three weeks later, on March 4 and March 5, 2008, the Senate and the House of Delegates of the Virginia General Assembly unanimously passed emergency legislation that ordered the SCC to approve the underground construction of the line along that section of the trail as part of a four-part state-wide pilot program for the development of underground transmission lines. Sponsored by Delegate Joe T. May (R - Loudoun), the legislation exempted the project from any requirements for further SCC analyses relating to the impacts of the route, including environmental impacts and impacts upon historical resources. The legislation went into effect when Virginia Governor Tim Kaine approved it on April 2, 2008.[22][25]

Wise County power plant[edit]

The company began constructing a 605 MWe coal fired power station in Wise County, Virginia in June 2008. As of December 2009, the construction had reached the halfway point, with the plant scheduled to be fully operational in mid-2012.[26][27] Dominion calls the plant the "Virginia City Hybrid Energy Center," which has been criticized by environmentalists as a way to make the plant sound environmentally friendly.[28] The plant does however have the most stringent air permit for any coal fired power plant in the nation currently. The plant will burn up to 20% biomass along with Coal and a small amount of waste coal known as gob.[27] The plant's carbon dioxide emissions are currently projected to be 5.4 million tons per year.[29] High levels of mercury emitted from the plant,which is controlled by activated carbon injection to reduce the emissions, as well as a fly ash dump near the Clinch River (a source of drinking water) are also of concern. The plant would also continue to support mountaintop removal coal mining. Supporters, including Governor Tim Kaine, stated that as one of the largest importers of electricity, Virginia could become less dependent on importing electricity from other states with a new power plant.[28] The plant brought 1000 workers to build, and will employ 130 full-time, as well as pay 4 to 7 million dollars of tax revenue yearly to economically depressed Wise County.[26] In September 2008, the site was blockaded by activists from the Rainforest Action Network.[30]

Cove Point LNG import facility[edit]

In 2001 when Dominion's Dominion Cove Point LNG, LP subsidiary was scheduled to reopen, many local residents were concerned about the proximity (only 3 miles) to the Calvert Cliffs Nuclear Power Plant, and the damage that could be caused by an attack or an explosion at the plant. Residents thought that the Federal Energy Regulatory Commission did not consider the risks before opening the plant.[31]

In 2005, Washington Gas claimed that the natural gas imported at the plant was too "hot," meaning that it contained fewer heavy hydrocarbons and burned hotter. Washington Gas said that the hot gas caused problems for its customers and caused many of its mains to break. Dominion denied that the imported gas was the cause of the breaks and stated that expanding the area serviced by the imported gas would not cause additional leaks in the District of Columbia and Northern Virginia suburbs.[32]

Environmental record[edit]

The Brayton Point Power Station in Somerset, Mass

As of March 2010, the Political Economy Research Institute ranks Dominion Resources 51st among corporations emitting airborne pollutants in the United States. Dominion's Toxic Score of 16,656 (pounds released x toxicity x population exposure) represents a significant improvement from both the 2008 report (Dominion ranked 27th with a Toxic Score of 58,642) and the 2005 report (Dominion ranked 19th with a Toxic Score of 117,712) [33] In December 2007, a settlement between the United States Environmental Protection Agency (EPA) and Dominion Energy of Brayton Point called for the company's power generating plant to install new closed cycle cooling towers that provided significant protection to aquatic organisms in Mount Hope Bay, which flows into Narragansett Bay. The 2007 settlement resolved an ongoing dispute that began in 2003. The EPA issued a final discharge permit called a National Pollution Discharge Elimination System (NPDES) for the Brayton Point Power Station requiring significant reductions in thermal discharges to, and water intake from, Mount Hope Bay.[34] In 2002, Dominion was responsible for 1,110,703 pounds of gastrointestinal or liver toxicant emissions, 1,440,000 pounds of musculoskeletal toxicant emissions, and 1,489,763 pounds of suspected respiratory toxicant emissions, and 1,478,383 pounds of suspected skin or sense organ toxicant emissions among other emissions that are suspected to be hazardous.[35]

References[edit]

  1. ^ a b c d e f g h i "DOMINION RESOURCES INC /VA/ 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 28, 2014. 
  2. ^ "DOMINION RESOURCES INC /VA/ 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. April 30, 2014. 
  3. ^ "D Income Statement - Dominion Resources, Inc.". Retrieved 2013-11-13. 
  4. ^ "D Profile - Dominion Resources, Inc.". Yahoo Finance. Retrieved 2013-11-13. 
  5. ^ a b "2008 Summary Annual Report". Dominion Resources Inc. 2008. Retrieved 13 July 2009. 
  6. ^ "Dimensions 2008/2009: Corporate Responsibility Report". Dominion Resources, Inc. 2009. Retrieved 31 August 2009. 
  7. ^ "157. Dominion Resources". Fortune. Time Inc. 4 May 2009. Retrieved 13 July 2009. 
  8. ^ Dominion’s First Century: A Legacy of Service, ISBN 978-0-9768331-6-1
  9. ^ "Dominion's Plan to Address Greenhouse Gasses". Dominion. Retrieved 2010-03-04. 
  10. ^ James K. Martin (20 March 2008). "State Needs New Coal Plant". Daily Press. Retrieved 2010-03-04. 
  11. ^ a b c d "Dominion History". Retrieved 2008-08-03. 
  12. ^ "Dominion Resources Company History". FundingUniverse. Retrieved 2010-03-04. 
  13. ^ Smolkin, Rachel (January 2004). "Are We Going Nuclear?". Washingtonian. Retrieved 31 August 2009. "Dominion and North Anna are leaders in performance worldwide. Calvert's [Calvert Cliffs] coming that way, but North Anna's there." 
  14. ^ Mufson, Steven, "Dominion sells more of its oil and gas assets", Washington Post (June 5, 2007) p D04
  15. ^ "Dominion Realigns Business Units to Reflect Strategic Refocusing". Dominion. August 13, 2007. Retrieved May 4, 2010. 
  16. ^ Matt Jarzemsky (April 29, 2010). "Dominion 1Q Net Drops 30% On Charges, Lower Sales". Dow Jones Newswires. The Wall Street Journal Online. Retrieved May 4, 2010. [dead link]
  17. ^ http://www.dom.com/business/exploration-production/index.jsp
  18. ^ "Dominion". Virginia Public Access Project. Retrieved 2010-03-04. 
  19. ^ "Charitable Giving and the Dominion Foundation". Dominion. Retrieved 2010-03-04. 
  20. ^ Michael D. Shear and Amy Gardner (2007-02-13). "Power Line to Track Existing N.Va. Route". The Washington Post. Retrieved 2010-03-20. 
  21. ^ "Meadow Brook to Loudoun 500 kV Line". Dominion. Retrieved 2010-03-20. 
  22. ^ a b Jonathan Mummolo (2008-03-09). "Portion of Power Line to Be Buried". The Washington Post. Retrieved 2010-03-20. 
  23. ^ "Pleasant View-Hamilton 230kV Line". Dominion. Retrieved 2010-03-20. 
  24. ^ Section of W&OD Railroad Regional Park approved for transmission line route: From W&OD Trail Mile 36.2 at coordinates 39°06′51″N 77°35′50″W / 39.114029°N 77.597283°W / 39.114029; -77.597283 (W&OD Transmission line route at Trail Mile 36.2) to Trail Mile 38.0 at coordinates 39°08′15″N 77°36′33″W / 39.137417°N 77.609246°W / 39.137417; -77.609246 (Transmission line route at Trail Mile 38.0).
  25. ^ Legislative history of HB 1319: "Underground transmission lines; pilot program established" and Text of H 1319 (2008 Virginia Acts of Assembly -- Chapter 799): "An Act to establish a pilot program to place certain transmission lines underground." The Virginia General Assembly. Accessed 2008-04-21.
  26. ^ a b "Dominion begins construction of Wise County Power Plant". Kingsport Times News. 2008-06-30. Retrieved 2010-03-21. 
  27. ^ a b "Virginia City Hybrid Energy Center". Dominion. Retrieved 2010-03-21. 
  28. ^ a b Scott Harper (2008-06-22). "Power plant is ground zero in battle of energy vs. environment". The Virginian-Pilot. Retrieved 2010-03-21. 
  29. ^ "Stop the Wise County Coal Plant". Chesapeake Climate Action Network. Retrieved 2010-03-21. 
  30. ^ "Protesters From Across the Country Join Wise County VA Residents to Oppose Coal Plant’s Impact on Environment and Health and to Demand a Clean Energy Future". Rainforest Action Network. 2008-09-15. Retrieved 2008-09-16. 
  31. ^ "Worries Aside, Cove Point Gas Plant Gets a Green Light". Bay Weekly. 2001-01-03. Archived from the original on March 21, 2006. Retrieved October 9, 2010. 
  32. ^ Jake Dweck and David Wochner (March 2006). "LNG's Final Hurdle". Public Utilities Fortnightly. Sutherland. Retrieved 2010-03-06. 
  33. ^ - Political Economy Research Institute: Toxic 100 Table
  34. ^ Settlement Will Spur Major Environmental Improvements at Brayton Point Power Plant
  35. ^ Environmental Releases for DOMINION RESOURCES INC. YORKTOWN POWER STATION

External links[edit]