QUOTE AND NEWS
newratings.com  Oct 6  Comment 
WASHINGTON (dpa-AFX) - Dominion Midstream Partners LP, a Delaware limited partnership and a subsidiary of Dominion Resources Inc. (D), said that it has launched its initial public offering of 17.50 million common units representing limited partner...
SeekingAlpha  Oct 5  Comment 
By Abba's Aces: In the wild card round of the Growth Portfolio playoffs we have #9 seeded Dominion Resources, Inc. (NYSE:D) taking on #8 seeded WhiteWave Foods (NYSE:WWAV). Dominion is a producer and transporter of energy. It manages its daily...
SeekingAlpha  Oct 1  Comment 
By Stock Market Sherpa: Utilities stocks are a staple in almost any diversified income portfolio. Their high dividends and reliable cash flows make them ideal for long term investors who are looking for stable and predictable income. A specific...
Reuters  Sep 30  Comment 
U.S. federal regulators late Monday approved construction of Dominion Resources' liquefied natural gas export project in Cove Point, Maryland.
newratings.com  Sep 24  Comment 
WASHINGTON (dpa-AFX) - Dominion Resources Inc (D) said Wednesday it has issued a notice of redemption for its 2009 Series A 8.375% Enhanced Junior Subordinated Notes regarding the redemption of all of the outstanding $685 million aggregate...
Jutia Group  Sep 24  Comment 
[PR Newswire] - CLEVELAND, Sept. 24, 2014 /PRNewswire/ -- Eight Ohio institutions will receive a combined $200,000 in Dominion Foundation Higher Education Grants for 2014. The grants focus on programs that help prepare ... Read more on this. ...
Motley Fool  Sep 17  Comment 
Dominion Resources is readying some big industry shifts, and it wants you to know that the process is going well.
Jutia Group  Sep 15  Comment 
[PR Newswire] - RICHMOND, Va., Sept. 15, 2014 /PRNewswire/ -- Dominion (NYSE:D) announced an agreement to acquire two solar energy projects totaling 42 megawatts from EDF Renewable Energy, one of North America's largest independent power producers...
SeekingAlpha  Sep 15  Comment 
By Abba's Aces: I recently closed my position in Royal Caribbean Cruises Ltd. (NYSE:RCL) from my growth portfolio because I felt that I had a pretty good profit at the time and wanted to lock up some profits. I ended up buying shares of Dominion...
Jutia Group  Sep 10  Comment 
[PR Newswire] - RICHMOND, Va., Sept. 10, 2014 /PRNewswire/ -- Dominion (NYSE:D) Executive Vice President and CFO, Mark F. McGettrick will present and participate on a panel on Wednesday, September 17, in New York, NY, at the Wolfe Research 2014...




 

Dominion Resources (D) is an electric and natural gas utility. Dominion Resources has approximately 26,500 megawatts (MW) of electrical generating capacity, enough to power around 20 million homes.[1] As the owner of the nation's largest underground natural gas storage system, Dominion also delivers natural gas to retail customers in eleven states.

Dominion Resources, with its easy access to cheap coal in Virginia, generates over 40%[2] of its energy from burning coal. Like other electric utilities Dominion is under increasing political pressure to adopt cleaner electricity generation methods while maintaining competitive prices. Dominion Resources is also investing in clean energy projects such as wind farms and the conversion of some of its coal plants to cleaner, gas powered plants. Nuclear power already constitutes over 21% of Dominion Resources' generation capacity.

Business Overview

Business & Financial Metrics[3]

In 2009, Dominion generated a net income of $1.29 billion on revenues of $15.13 billion. This represents a 29.8% decrease in net income and a 7.1% decrease in total revenues from 2008, when the company earned $1.83 billion on $16.29 billion in revenues.

Business Segments[4]

Dominion Resources has three primary business segments:

  • Dominion Generation (55.4% of total revenue): Dominion's Generation sales electricity to other utilities. Its generation mix includes coal, nuclear, gas, oil, renewables and purchased power. The electric generating plants are located in Virginia, West Virginia and North Carolina.
  • Dominion Virginia Power (DVP) (20.5% of total revenue): DVP includes the company's regulated electric transmission, distribution and customer service operations. The electric transmission and distribution operations serve customers in Virginia and northeastern North Carolina
  • Dominion Energy (17.2% of total revenue): Dominion Energy includes the company's Ohio natural gas distribution and storage company, liquid natural gas operations and its Applachian natural gas exploration and production business.

Key Trends & Forces

The "Greening" of Utilities

Growing political awareness of the risks of global warming is resulting in increasing governmental pressure for utility companies to reduce emissions. In 2008, three major investment bank predicted that the U.S. government would cap CO2 emissions in the next three years. Dominion's reliance on coal for a major part of its electrical generation mix makes it vulnerable to "greener legislation." However, unlike peer Allegheny Energy (AYE), slightly under half of Dominion's electricity comes from nuclear and hydroelectric power better positioning the company to conform to new environmental standards. The company plans to spend $3.4 billion by 2015[5] on new clean air technologies to reduce particulate and toxic emissions. Dominion has filed for permits to expand one of its nuclear power plants and actively invests in new renewable energy projects to remain on-track for the renewable energy standards set forth by Virginia and North Carolina.

Nuclear Power & Electricity Generation

The key difference between nuclear and fossil plants is the cost structure. Nuclear plants require very large capital investments (to construct the plant) but little expenditure for fuel because it takes relatively little uranium to power a plant. On the other hand, fossil fuel plants require relatively little capital investment but have high fuel costs because they require large amounts of coal, oil or gas. In the past, low fossil fuel prices gave given fossil fuel plants a cost advantage over nuclear plants. The cost advantage, compounded by the stigmas of nuclear energy (the not in my backyard phenomenon) has prevented new nuclear construction for almost 30 years.[6] Record fossil fuel prices have begun to reverse this trend. Already, nuclear utilities such as Exelon, Entergy and Duke Energy Corporation (DUK) have begun filing for permits for construction of new nuclear plants. Dominion has filed for permits to expand one of its existing nuclear generation plants. Dominion operates four nuclear plants on the east cost of the United States.

Competition

Dominion's competitors include Allegheny Energy (AYE), Edison International (EIX), American Electric Power Company (AEP), Duke Energy Corporation (DUK), Entergy (ETR), Exelon Energy Corp (EXC), and Public Service Enterprise Group (PEG).

References

  1. Power of Electricity
  2. D - Electric Generating Facilities
  3. D 2009 10-K pg. 32  
  4. D 2009 10-K pg. 121  
  5. D's Environmental Palns
  6. Scientific American (9/26/07) - Nuclear Power Reborn
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