Dominion Announces 2012 Earnings

                       Dominion Announces 2012 Earnings

-- Full-year 2012 operating earnings of $3.05 per share

-- Full-year 2012 GAAP earnings of $1.01 per share

-- Fourth-quarter 2012 operating earnings of 69 cents per share

-- Fourth-quarter 2012 GAAP loss of 66 cents per share

-- Company affirms 2013 operating earnings guidance of $3.20 to $3.50 per
share

-- Conference call scheduled for 10 a.m. ET today

PR Newswire

RICHMOND, Va., Jan. 31, 2013

RICHMOND, Va., Jan. 31, 2013 /PRNewswire/ --Dominion (NYSE: D) today
announced unaudited reported earnings determined in accordance with Generally
Accepted Accounting Principles (GAAP) for the 12 months ended Dec. 31, 2012,
of $581 million ($1.01 per share), compared with reported earnings of $1.41
billion ($2.45 per share) for the same period in 2011. 

Operating earnings for the 12 months ended Dec. 31, 2012, amounted to $1.75
billion ($3.05 per share), compared to originally reported operating earnings
of $1.75 billion ($3.05 per share) for the same period in 2011. Operating
earnings are defined as reported (GAAP) earnings adjusted for certain items.

Dominion uses operating earnings as the primary performance measurement of its
earnings guidance and results for public communications with analysts and
investors. Dominion also uses operating earnings internally for budgeting,
for reporting to the Board of Directors, for the company's incentive
compensation plans and for its targeted dividend payouts and other purposes.
Dominion management believes operating earnings provide a more meaningful
representation of the company's fundamental earnings power.

The principal difference between GAAP earnings and operating earnings for
fourth-quarter 2012 was an impairment charge of $731 million related to the
Brayton Point merchant generating station, which is in the process of being
sold.

Business segment results and detailed descriptions of items included in 2012
and 2011 reported earnings but excluded from operating earnings can be found
on Schedules 1, 2 and 3 of this release.

Thomas F. Farrell II, chairman, president and chief executive officer, said:

"2012 was a year of significant accomplishments for Dominion. Several major
capital projects were completed, significant progress was made on others and
we worked to advance the next round of infrastructure growth.

"In our Generation segment last year, the 585-megawatt Virginia City Hybrid
Energy Center was placed into commercial operation on schedule and on budget
after four years of construction. Construction continues on schedule for the
1,329-megawatt, gas-fired power station in Warren County, Va. The
approximately $1.1 billion project is scheduled for completion in late 2014.
Progress continues on the development of a similar-sized combined-cycle
facility, the Brunswick County Power Station. We recently filed for
regulatory approval with the Virginia State Corporation Commission and,
pending approval, expect commercial operation in 2016. The coal-to-biomass
conversions of Altavista, Southampton, and Hopewell are proceeding on schedule
and are projected to come online by the end of this year. Also, we recently
filed an application for a coal-to-natural gas conversion of our 227-megawatt
Bremo Power Station. Commercial operation is expected in 2014, pending
regulatory approval.

"At our Energy segment, the Appalachian Gateway Project, which transports
natural gas produced in West Virginia and Pennsylvania was placed into service
on time and within budget. Also entering service last year were two major
projects providing transportation services of Marcellus Shale volumes, the
Ellisburg to Craigs and the Northeast Expansion. Construction on Phase 1 of
the Natrium natural gas processing and fractionation plant is nearing
completion and scheduled for operation this quarter. And, we entered into a
joint venture, Blue Racer Midstream, LLC, to provide gathering and processing
to producers in the Utica shale region.

"Dominion Virginia Power placed into service approximately $400 million of new
electric transmission assets and completed phase 2 of the Mount Storm-to-Doubs
modernization project. Also, new customer connects increased 28% versus prior
year and weather-normalized kilowatt-hour sales growth was 1.5% over 2011.

"We expect 2013 operating earnings in the range of $3.20 to $3.50 per share.
Incorporated in this guidance, compared to 2012, are a return to normal
weather in our regulated service territory, anticipated benefits of higher
revenues from our rider and energy growth projects, and sales growth in our
electric service area, primarily offset by higher depreciation and operations
and maintenance expenses, financing costs and a higher effective income tax
rate.

"In December, our Board of Directors set a new goal to achieve a 65 percent to
70 percent dividend payout ratio. The new policy recognizes the company's
continued shift toward regulated earnings. The board also set a 2013 dividend
rate of $2.25 per share of common stock, up from $2.11 per share in 2012, or a
6.6 percent increase. The board recently declared a first-quarter dividend of
56.25 cents per share of common stock. All dividend declarations are subject
to Board of Directors' approval."

Full-year 2012 operating earnings compared to 2011

Full-year 2012 operating earnings per share were the same as compared to
originally reported full-year 2011 operating earnings per share. Positive
factors for the year were higher contributions from unregulated retail energy
marketing operations, lower operations and maintenance expenses, benefit from
our contribution of assets to the Blue Racer Midstream joint venture, lower
interest expenses and a lower effective tax rate. Negative factors for the
year were milder-than-normal weather in our regulated electric service
territory, lower merchant generation margins and lower contributions from
producer services.

Fourth-quarter 2012 operating earnings compared to 2011

The increase in fourth-quarter 2012 operating earnings per share as compared
to originally reported fourth-quarter 2011 operating earnings per share is
primarily attributable to lower operations and maintenance expenses and
benefit from our contribution of assets to the Blue Racer Midstream joint
venture. Negative factors for the quarter were lower contributions from
unregulated retail energy marketing operations and an extended outage at
Millstone Unit 2.

Details of fourth-quarter 2012 operating earnings as compared to 2011 can be
found on Schedule 4 of this release.

First-quarter 2013 and full-year 2013 operating earnings guidance

Dominion expects first-quarter 2013 operating earnings in the range of 80
cents per share to 95 cents per share as compared to first-quarter 2012
operating earnings of 85 cents per share. Positive factors for the
first-quarter of 2013 compared to the same period of the prior year include an
expected return to normal weather in our electric service territory, higher
rate adjustment clause revenues and anticipated growth in our electric service
territory as well as higher revenues related to our gas transmission growth
projects. Negative factors for the quarter include higher operations and
maintenance expenses and a higher effective tax rate. GAAP earnings for the
first quarter of 2012 were 86 cents per share. A reconciliation between
operating and GAAP earnings for the first quarter of 2012 can be found on
Schedule 3 of this release.

Amounts for 2011 have been recast to reflect results for State Line and Salem
Harbor generating stations as discontinued operations. However, Dominion uses
originally reported 2011 amounts prior to recast to calculate operating
earnings growth targets as well as for comparison to 2012 and 2013 operating
earnings and statistics.

In providing its first-quarter and full-year 2013 operating earnings guidance,
the company notes that there could be differences between expected reported
earnings and estimated operating earnings for matters such as, but not limited
to, divestitures or changes in accounting principles. At this time, Dominion
management is not able to estimate the aggregate impact, if any, of these
items on reported earnings, other than those as set forth on Schedule 2 –
Reconciliation of 2012 Operating Earnings to Reported Earnings on page 8 of
the 4Q12 Earnings Release Kit. Accordingly, the company is not able to provide
a corresponding GAAP equivalent for its operating earnings guidance.

Conference call today

Dominion will host its fourth-quarter earnings conference call at 10 a.m. ET
on Thursday, Jan. 31. Dominion management will discuss its fourth-quarter
financial results and other matters of interest to the financial community.

Domestic callers should dial (866) 710-0179. The passcode for the conference
call is "Dominion." International callers should dial (334) 323-9872.
Participants should dial in 10 to 15 minutes prior to the scheduled start
time. Members of the media also are invited to listen.

A live webcast of the earnings conference call, including accompanying slides,
and the Earnings Release Kit will be available on the company's investor
information page at www.dom.com/investors.

A replay of the earnings conference call will be available beginning about 1
p.m. ET Jan. 31 and lasting until 11 p.m. ET Feb. 7. Domestic callers may
access the recording by dialing (877) 919-4059. International callers should
dial (334) 323-7226. The PIN for the replay is 90509353. Additionally, a
replay of the webcast will be available on the company's investor information
page by the end of the day January 31.

Analyst Day Scheduled

Dominion will also host an analyst meeting at The JW Marriott Essex House in
New York on Monday, March 4 from 10:00 a.m. to 12:00 p.m. ET.

Dominion management will discuss its business strategy and provide details
about its 2013 operating earnings and long-term growth drivers, as well as
other matters of interest to the financial community. Following the formal
presentation, corporate and operating segment management will be available to
those in attendance for questions.

Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 27,400 megawatts of generation, 11,000 miles
of natural gas transmission, gathering and storage pipeline and 6,300 miles of
electric transmission lines. Dominion operates the nation's largest natural
gas storage system with 947 billion cubic feet of storage capacity and serves
retail energy customers in 15 states. For more information about Dominion,
visit the company's website at www.dom.com.

This release contains certain forward-looking statements, including forecasted
operating earnings for first-quarter and full-year 2013 which are subject to
various risks and uncertainties. Factors that could cause actual results to
differ materially from management's projections, forecasts, estimates and
expectations may include factors that are beyond the company's ability to
control or estimate precisely, including fluctuations in energy-related
commodity prices, estimates of future market conditions, additional
competition in the electric industry, changes in the demand for Dominion's
services, access to and costs of capital, fluctuations in the value of our
pension assets and assets held in our decommissioning trusts, asset portfolio
reviews and resulting decisions to acquire, divest or retire assets, the
receipt of regulatory approvals for, and timing of, planned projects,
acquisitions and divestitures, and the ability to complete planned
construction or expansion projects within the terms and timeframes initially
anticipated. Other factors include, but are not limited to, weather
conditions and other events, including the effects of hurricanes, earthquakes,
high winds, major storms and changes in water temperatures on operations, the
risk associated with the operation of nuclear facilities, unplanned outages of
Dominion's generation facilities, state and federal legislative and regulatory
developments and changes to environmental and other laws and regulations,
including those related to climate change, greenhouse gases and other
emissions to which we are subject, political and economic conditions,
industrial, commercial and residential growth or decline in Dominion's service
area, risks of operating businesses in regulated industries that are subject
to changing regulatory structures, changes to regulated gas and electric rates
collected by Dominion, changes to rating agency requirements and ratings,
changing financial accounting standards, fluctuations in interest rates,
changes in federal and state tax laws, employee workforce factors, including
collective bargaining, counter-party credit and performance risks, adverse
outcomes in litigation matters or regulatory proceedings, the risk of hostile
cyber intrusions and other uncertainties. Other risk factors are detailed
from time to time in Dominion's most recent quarterly report on Form 10-Q or
annual report on Form 10-K filed with the Securities and Exchange Commission.

Schedule 1 - Segment Operating Earnings
Preliminary, Unaudited
(millions, except earnings per Three months ended December 31,
share)
                               2012            2011*          Change
Earnings:
                               $         $        $       
     Dominion Virginia Power        131                  
                                               112             19
     Dominion Energy           189             153            36
     Dominion Generation      137             117            20
     Corporate and Other       (57)            (48)           (9)
                               $         $        $       
     OPERATING EARNINGS             400                  
                                               334             66
     Items excluded from       (780)           (133)          (647)
     operating earnings^2, 3
                               $         $        $       
     REPORTED EARNINGS ^1                                
                               (380)           201            (581)
Common Shares Outstanding      575.0           571.2
(average, diluted)
Earnings Per Share (EPS):
                               $         $        $       
     Dominion Virginia Power        0.23                  
                                               0.20          0.03
     Dominion Energy           0.33            0.27           0.06
     Dominion Generation      0.23            0.20           0.03
     Corporate and Other       (0.10)          (0.09)         (0.01)
                               $         $        $       
     OPERATING EARNINGS             0.69                  
                                               0.58          0.11
     Items excluded from       (1.35)          (0.23)         (1.12)
     operating earnings^2
                               $         $        $       
     REPORTED EARNINGS ^1                                 
                               (0.66)         0.35          (1.01)
(millions, except earnings per Twelve months ended December 31,
share)
                               2012            2011*          Change
Earnings:
                               $         $        $       
     Dominion Virginia Power        559                  
                                               501             58
     Dominion Energy           551             521            30
     Dominion Generation      874             1,003          (129)
     Corporate and Other       (235)           (271)          36
                               $         $        $       
     OPERATING EARNINGS            1,749       1,754         
                                                               (5)
     Items excluded from       (1,168)         (346)          (822)
     operating earnings^2, 4
                               $         $        $       
     REPORTED EARNINGS ^1           581      1,408        
                                                              (827)
Common Shares Outstanding      573.9           574.6
(average, diluted)
Earnings Per Share (EPS):
                               $         $        $       
     Dominion Virginia Power        0.98                  
                                               0.87          0.11
     Dominion Energy           0.96            0.91           0.05
     Dominion Generation      1.52            1.74           (0.22)
     Corporate and Other       (0.41)          (0.47)         0.06
                               $         $        $       
     OPERATING EARNINGS             3.05                 
                                               3.05          (0.00)
     Items excluded from       (2.04)          (0.60)         (1.44)
     operating earnings^2
                               $         $        $       
     REPORTED EARNINGS ^1           1.01                 
                                               2.45          (1.44)

 1) Determined in accordance with Generally Accepted Accounting Principles
    (GAAP).
    Items excluded from operating earnings are reported in Corporate and
 2) Other segment. Refer to Schedules 2 and 3 for details, or find "GAAP
    Reconciliation" on Dominion's website at www.dom.com/investors.
 3) Pre-tax amounts for the current period and the prior period are ($1.235)
    billion and ($255) million, respectively.
 4) Pre-tax amounts for the current period and the prior period are ($1.831)
    billion and ($605) million, respectively.
    Reflects amounts as originally reported prior to recast of results for
 *  State Line and Salem Harbor generating stations as discontinued
    operations.



Schedule 2 - Reconciliation of 2012 Operating Earnings to Reported Earnings

2012 Earnings (twelve months ended December 31, 2012) 

The net effects of the following items, all shown on an after-tax basis, are
included in 2012 reported earnings, but are excluded from operating earnings:

  o$795 million net loss, including an impairment charge, associated with
    certain fossil fuel-fired merchant power stations which Dominion decided
    to market for sale in the third quarter of 2012.
  o$303 million net loss, including impairment charges, primarily resulting
    from the planned shutdown of our Kewaunee nuclear merchant power station.
  o$53 million of restoration costs associated with severe storms affecting
    our Dominion Virginia Power and Dominion North Carolina Power service
    territories.
  o$22 million net loss from discontinued operations of two merchant power
    stations (State Line and Salem Harbor) which were sold in 2012.
  o$5 million net benefit related to other items.

  (millions, except per share         1Q12 2Q12   3Q12   4Q12     YTD 2012 ^2
  amounts)
  Operating earnings                 $486  $337   $526   $400     $1,749
  Items excluded from operating
  earnings (after-tax):
     Fossil fuel-fired merchant power              (45)   (750)    (795)
     stations
     Kewaunee power station           2     (18)   (281)  (6)      (303)
     Severe storms                          (45)   3      (11)     (53)
     Discontinued operations - State  1     (18)   (5)             (22)
     Line & Salem Harbor
     Other items                      5     2      11     (13)     5
     Total items excluded from
     operating earnings (after-tax)   8     (79)   (317)  (780)    (1,168)
     ^1
  Reported net income                 $494  $258   $209   ($380)   $581
  Common shares outstanding (average, 571.9 573.1  574.7  575.0    573.9
  diluted)
  Operating earnings per share        $0.85 $0.59  $0.92  $0.69    $3.05
  Items excluded from operating       0.01  (0.14) (0.56) (1.35)   (2.04)
  earnings (after-tax)
  Reported earnings per share         $0.86 $0.45  $0.36  ($0.66)  $1.01
  1) Pre-tax amounts for items excluded from operating earnings are
     reflected in the following table:
     Items excluded from operating    1Q12 2Q12   3Q12   4Q12     YTD 2012
     earnings:
     Fossil fuel-fired merchant power              (34)   (1,218)  (1,252)
     stations
     Kewaunee power station           3     (26)   (435)  (9)      (467)
     Severe storms                          (74)   5      (18)     (87)
     Discontinued operations - State  2     (32)   (19)            (49)
     Line & Salem Harbor
     Other items                      8     3      3      10       24
     Total items excluded from        $13   ($129) ($480) ($1,235) ($1,831)
     operating earnings
  2) YTD 2012 EPS may not equal sum of quarters due to share count
     differences.



Schedule 3 - Reconciliation of 2011 Original Operating Earnings to Reported
Earnings

2011 Earnings (Twelve months ended December 31, 2011) ^3

The net effects of the following items, all shown on an after-tax basis, are
included in 2011 reported earnings, but are excluded from operating earnings:

  o$178 million of impairment charges related to certain utility ($139
    million) and merchant ($39 million) coal-fired power stations.
  o$59 million of restoration costs associated with Hurricane Irene.
  o$39 million net loss from operations at our Kewaunee nuclear merchant
    power station.
  o$34 million impairment of excess emission allowances resulting from a new
    EPA air pollution rule.
  o$21 million of severance costs and other charges related to our State Line
    and Salem Harbor merchant power stations.
  o$19 million net charge in connection with the Virginia Commission's final
    ruling associated with its biennial review of Virginia Power's base rates
    for 2009-2010 test years.
  o$13 million of earthquake related costs, largely related to inspections
    following the safe shutdown of reactors at our North Anna nuclear power
    station.
  o$14 million benefit related to litigation with the Department of Energy
    for spent nuclear fuel-related costs at Millstone nuclear power station.
  o$3 million net benefit related to other items. 

  (millions, except per share 1Q11     2Q11     3Q11     4Q11     YTD 2011  ^2
  amounts)
  Operating earnings          $541     $338     $541     $334     $1,754
  Items excluded from
  operating earnings
  (after-tax):
      Impairment of           (39)                       (139)    (178)
      generation assets
      Hurricane Irene costs                     (74)     15       (59)
      Kewaunee operations    (19)     (1)      (12)     (7)      (39)
      Emission allowances                       (34)              (34)
      impairments
      Charges related to
      State Line & Salem               (11)     (10)              (21)
      Harbor operations
      Impact of Virginia
      Power biennial review                              (19)     (19)
      order
      Earthquake costs                          (13)              (13)
      Recoverable spent
      nuclear fuel-related             14                         14
      costs
      Other items             (4)      (4)      (6)      17       3
      Total items excluded
      from operating earnings (62)     (2)      (149)    (133)    (346)
      (after-tax) ^1
  Reported net income         $479     $336     $392     $201     $1,408
  Common shares outstanding   580.5    575.2    571.2    571.2    574.6
  (average, diluted)
  Operating earnings per      $0.93    $0.59    $0.95    $0.58    $3.05
  share
  Items excluded from
  operating earnings          (0.11)   (0.01)   (0.26)   (0.23)   (0.60)
  (after-tax)
  Reported earnings per share $0.82    $0.58    $0.69    $0.35    $2.45
  ^1) Pre-tax amounts for items excluded from operating earnings are
      reflected in the following table:
      Items excluded from     1Q11     2Q11     3Q11     4Q11     YTD 2011
      operating earnings:
      Impairment of           (55)                       (228)    (283)
      generation assets
      Hurricane Irene costs                     (121)    25       (96)
      Kewaunee operations    (32)     (5)      (19)     (10)     (66)
      Emission allowances                       (57)              (57)
      impairments
      Charges related to
      State Line & Salem               (17)     (16)              (33)
      Harbor operations
      Impact of Virginia
      Power biennial review                              (31)     (31)
      order
      Earthquake costs                          (21)              (21)
      Recoverable spent
      nuclear fuel-related             24                         24
      costs
      Other items             6        (8)      (29)     (11)     (42)
      Total items excluded
      from operating          ($81)    ($6)     ($263)   ($255)   ($605)
      earnings
  ^2) YTD 2011 EPS may not equal sum of quarters due to share count
      differences.
      Reflects amounts as originally reported prior to recast of results for
  ^3) State Line and Salem Harbor generating stations as discontinued
      operations.



Schedule 4 - Reconciliation of 2012
Earnings to 2011
Preliminary, unaudited      Three Months Ended        Twelve Months Ended
(millions, except EPS)      December 31,              December 31,
                            2012 vs. 2011^1           2012 vs. 2011^1
                            Increase / (Decrease)     Increase / (Decrease)
Reconciling Items           Amount      EPS           Amount      EPS
Dominion Virginia Power
    Regulated electric
    sales:
    Weather                 $5          $0.01         ($34)       ($0.06)
    Other                   9           0.01          28          0.05
    FERC Transmission       4           0.01          19          0.04
    equity return
    Retail energy marketing (10)        (0.02)        35          0.06
    operations
    Storm damage and        1           0.00          14          0.03
    service restoration
    Other                   10          0.02          (4)         (0.01)
    Change in contribution  $19         $0.03         $58         $0.11
    to operating earnings
Dominion Energy^
    Gas Distribution        $1          $0.00         ($5)        ($0.01)
    weather
    Gas Transmission margin 14          0.02          8           0.01
    Producer Services       (5)         (0.01)        (13)        (0.02)
    margin
    Blue Racer Midstream JV 43          0.08          43          0.08
    Other                   (17)        (0.03)        (3)         (0.01)
    Change in contribution  $36         $0.06         $30         $0.05
    to operating earnings
Dominion Generation
    Regulated electric
    sales:
    Weather                 $10         $0.02         ($78)       ($0.14)
    Other                   11          0.02          46          0.08
    Merchant generation     (13)        (0.02)        (109)       (0.19)
    margin
    Brayton Point, Kincaid
    and Elwood 2011         16          0.02          7           0.01
    earnings
    State Line and Salem    (2)         0.00          (35)        (0.06)
    Harbor 2011 earnings
    Rate adjustment clause  10          0.02          17          0.03
    equity return
    PJM ancillary services  1           0.00          (27)        (0.05)
    Net capacity expenses   2           0.00          19          0.04
    Outage costs            (13)        (0.02)        8           0.01
    Other                   (2)         (0.01)        23          0.05
    Change in contribution  $20         $0.03         ($129)      ($0.22)
    to operating earnings
Corporate and Other
    Change in contribution  ($9)        ($0.01)       $36         $0.06
    to operating earnings
Change in consolidated      $66         $0.11         ($5)        $0.00
operating earnings
Change in items excluded    ($647)      ($1.12)       ($822)      ($1.44)
from operating earnings^2
Change in reported earnings ($581)      ($1.01)       ($827)      ($1.44)
(GAAP)
^1) Reflects 2011 amounts prior to recast of operating results of State Line
    and Salem Harbor generating stations as discontinued operations.
    Refer to Schedules 2 and 3 for details of items excluded from operating
^2) earnings, or find "GAAP Reconciliation" on Dominion's website at
    www.dom.com/investors.



SOURCE Dominion

Website: http://www.dom.com
Contact: Media: Ryan Frazier, +1-804-819-2521, C.Ryan.Frazier@dom.com;
Analysts: Nathan Frost, +1-804-819-2187, Nathan.J.Frost@dom.com