Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DOMINION ENERGY, INC | d411520d8k.htm |
| EX-4.3 - FORTY-FIFTH SUPPLEMENTAL INDENTURE - DOMINION ENERGY, INC | d411520dex43.htm |
| EX-4.5 - FORTY-SEVENTH SUPPLEMENTAL INDENTURE - DOMINION ENERGY, INC | d411520dex45.htm |
| EX-5.1 - OPINION OF MCGUIREWOODS LLP - DOMINION ENERGY, INC | d411520dex51.htm |
| EX-1.1 - UNDERWRITING AGREEMENT - DOMINION ENERGY, INC | d411520dex11.htm |
| EX-4.4 - FORTY-SIXTH SUPPLEMENTAL INDENTURE - DOMINION ENERGY, INC | d411520dex44.htm |
Exhibit 12.1
Dominion Resources Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(millions of dollars)
| Years Ended December, 31 | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2012 (a) |
Twelve Months Ended June 30, 2012 (b) |
2011 (c) | 2010 (d) | 2009(e) | 2008(f) | 2007(g) | ||||||||||||||||||||||
| Earnings, as defined: |
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| Income from continuing operations including noncontrolling interest before income taxes, extraordinary item and cumulative effect of change in accounting principle |
$ | 1,196 | $ | 2,021 | $ | 2,205 | $ | 5,195 | $ | 1,900 | $ | 2,539 | $ | 4,666 | ||||||||||||||
| Distributed income from unconsolidated investees, less equity in earnings |
(12 | ) | (28 | ) | (23 | ) | (30 | ) | (30 | ) | (39 | ) | (20 | ) | ||||||||||||||
| Fixed charges, as defined |
514 | 1,003 | 1,003 | 971 | 1,022 | 989 | 1,325 | |||||||||||||||||||||
| Capitalized interest |
(17 | ) | (36 | ) | (37 | ) | (27 | ) | (18 | ) | (44 | ) | (73 | ) | ||||||||||||||
| Preference security dividend requirement of consolidated subsidiary |
(13 | ) | (25 | ) | (25 | ) | (28 | ) | (24 | ) | (26 | ) | (26 | ) | ||||||||||||||
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| Total earnings, as defined |
$ | 1,668 | $ | 2,935 | $ | 3,123 | $ | 6,081 | $ | 2,850 | $ | 3,419 | $ | 5,872 | ||||||||||||||
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| Fixed charges, as defined: |
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| Interest charges |
$ | 483 | $ | 938 | $ | 928 | $ | 886 | $ | 941 | $ | 910 | $ | 1,238 | ||||||||||||||
| Preference security dividend requirement of consolidated subsidiary |
13 | 25 | 25 | 28 | 24 | 26 | 26 | |||||||||||||||||||||
| Rental interest factor |
18 | 40 | 50 | 57 | 57 | 53 | 61 | |||||||||||||||||||||
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| Total fixed charges, as defined |
$ | 514 | $ | 1,003 | $ | 1,003 | $ | 971 | $ | 1,022 | $ | 989 | $ | 1,325 | ||||||||||||||
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| Ratio of Earnings to Fixed Charges |
3.25 | 2.93 | 3.11 | 6.26 | 2.79 | 3.46 | 4.43 | |||||||||||||||||||||
(a) Earnings for the six months ended June 30, 2012 include $74 million of restoration costs associated with summer storms that occurred in late June throughout the Dominion Virginia Power and Dominion North Carolina service territories; partially offset by a $21 million net gain related to our investments in nuclear decommissioning trust funds. Excluding these items from the calculation would result in a higher ratio of earnings to fixed charges for the six months ended June 30, 2012.
(b) Earnings for the twelve months ended June 30, 2012 include $228 million of impairment charges related to electric utility generation assets; $96 million of restoration costs associated with Hurricane Irene; $74 million of restoration costs associated with summer storms that occurred in late June throughout the Dominion Virginia Power and Dominion North Carolina service territories; $57 million impairment of excess emission allowances resulting from a new EPA Air Pollution Rule; a $31 million net charge in connection with the Virginia State Corporation
Commission’s (SCC) final ruling associated with its biennial review of Virginia Power’s base rates for 2009 and 2010 test years; $21 million of earthquake related costs, largely related to inspections following the safe shutdown of reactors at our North Anna nuclear power station; and a $29 million net charge related to other items. Excluding these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended June 30, 2012.
(c) Earnings for the twelve months ended December 31, 2011 include $228 million of impairment charges related to electric utility generation assets; $96 million of restoration costs associated with Hurricane Irene; $57 million impairment of excess emission allowances resulting from a new EPA Air Pollution Rule; a $31 million net charge in connection with the SCC’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009 and 2010 test years; $21 million of earthquake related costs, largely related to inspections following the safe shutdown of reactors at our North Anna nuclear power station; and a $45 million net charge related to other items; partially offset by a $24 million benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at our Millstone nuclear power station. Excluding these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2011.
(d) Earnings for the twelve months ended December 31, 2010 include a $2.4 billion benefit resulting from the sale of our Appalachian exploration and production (E&P) operations - primarily reflecting the gain on the sale partially offset by certain transaction costs and other related charges. Earnings for the period also include a $331 million charge related to the workforce reduction program primarily reflecting severance pay and other benefits to affected employees and a $1 million net charge related to other items. Excluding these items from the calculation would result in a lower ratio of earnings to fixed charges for the twelve months ended December 31, 2010.
(e) Earnings for the twelve months ended December 31, 2009 include a $712 million charge for a partial refund of 2008 earnings and other amounts in connection with the settlement of Virginia Power’s 2009 rate case proceeding; a $455 million impairment charge as a result of the quarterly ceiling test performed on our gas and oil properties under the full cost method of accounting; a $31 million impairment charge related to an equity method investment; and a $10 million net charge related to other items. Earnings for the period also include a $103 million reduction in other operation and maintenance expense due to a downward revision in the nuclear decommissioning asset retirement obligation for a power station that is no longer in service. Excluding these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2009.
(f) Earnings for the twelve months ended December 31, 2008 include $180 million of impairment charges reflecting other-than-temporary declines in the fair value of securities held in nuclear decommissioning trust funds; $59 million of impairment charges related to Dominion Capital, Inc. (DCI) assets; a $42 million reduction in the gain recognized in 2007 from the sale of the majority of our U.S. E&P businesses as a result of post-closing adjustments; and a $30 million net charge related to other items. Excluding these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2008.
(g) Earnings for the twelve months ended December 31, 2007 include a $3.6 billion gain from the disposition of the majority of our U.S. E&P operations; partially offset by $1 billion of charges related to the disposition which are comprised of $541 million related to the discontinuance of hedge accounting for certain gas and oil derivatives and subsequent changes in the fair value of these derivatives, $171 million primarily related to the settlement of volumetric production payment agreements, $242 million of charges related to the early retirement of debt, and $91 million of employee-related expenses. Fixed charges for the twelve months ended December 31, 2007 include $234 million of costs related to the early retirement of debt associated with our debt tender offer completed in July 2007. Earnings for the period also include a $387 million charge related to the impairment of the partially-completed Dresden generation facility; $88 million of impairment charges related to DCI assets; $48 million of charges related to litigation reserves; and $70 million of charges related to other items. Excluding these items from the calculation would result in a lower ratio of earnings to fixed charges for the twelve months ended December 31, 2007.