QUOTE AND NEWS
Forbes  Dec 6  Comment 
Looking at the sectors faring worst as of midday Tuesday, shares of Utilities companies are underperforming other sectors, showing a 0.2% loss. Within that group, Edison International (NYSE: EIX) and Dominion Resources Inc (NYSE: D) are two large...
Forbes  Nov 28  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 11/30/16, Cinemark Holdings Inc (NYSE: CNK), Abercrombie & Fitch Co. (NYSE: ANF), and Dominion Resources Inc (NYSE: D) will all trade ex-dividend for their respective upcoming...
Forbes  Nov 21  Comment 
Investors in Dominion Resources Inc (NYSE: D) saw new options begin trading today, for the July 2017 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration...
Forbes  Nov 7  Comment 
Looking at the sectors faring worst as of midday Monday, shares of Utilities companies are underperforming other sectors, up 1.2%. Within that group, Consolidated Edison Inc (NYSE: ED) and Dominion Resources Inc (NYSE: D) are two large stocks that...
Motley Fool  Oct 31  Comment 
The utility also announced a major dropdown transaction with its MLP and the delay of a major project.
newratings.com  Oct 31  Comment 
WASHINGTON (dpa-AFX) - Dominion Resources (D) reported third-quarter operating earnings of $716 million or $1.14 per share compared to $611 million or $1.03 per share, last year. On average, 14 analysts polled by Thomson Reuters expected the...
newratings.com  Oct 31  Comment 
WASHINGTON (dpa-AFX) - Dominion Resources Inc (D) released earnings for its third quarter that advanced from last year. The company said its bottom line totaled $716 million, or $1.14 per share. This was up from $611 million, or $1.03 per...




 

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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