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Dimensions Citizenship & Sustainability Report – 2010/2011 Internet Version Online Report: www.dom.com/sustainability
Transcript of Dimensions - · PDF fileIn an effort to conserve ... We invite you to explore ... Energy...
Dimensions
Citizenship & Sustainability Report – 2010/2011 Internet Version
Online Report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Reporting Section
About This Report
The 2010/2011 edition of Dominion’s fourth annual
corporate responsibility report represents a departure from
previous years. We have re-titled it “Citizenship &
Sustainability” to more fully and accurately describe the
report’s content, which highlights our social, economic and
environmental performance. In an effort to conserve
resources and reduce our environmental impact, we chose
to limit our printed report to an “Executive Summary” and
make our comprehensive report available online. This also
allows us to use interactive media to better showcase our
company and provide stakeholders with another means of
engaging with us.
Reporting Period, Organization and Process
This report covers our 2010 results and performance unless
otherwise noted. The contents are organized to address
topics of material interest to key stakeholder groups and to
our company and industry. Data collection and presentation reflect input received internally
via surveys and discussions with subject matter experts and senior company leadership, and
externally via our online contact mailbox. Global Reporting Initiative Guidelines (Version 3.0)
also provided valuable guidance, with particular attention paid to utility sector-specific
indicators. Our reporting process continues to evolve as we learn from experience, best
practices and feedback from stakeholders.
Scope and Guidance
Reporting is structured on a corporate basis and all data is aggregated accordingly.
Reporting on topics of material interest to stakeholders has been expanded to
include emergency preparedness, natural gas pipeline safety and public policy. We also
have added a stakeholder engagement matrix and various new performance metrics to
expand the range of our reporting.
Feedback and Additional Information
Additional company reports are available on the downloads page. We invite you to explore
the many aspects of the Dominion enterprise on our website, and we welcome your
comments, questions and suggestions about our reporting at [email protected].
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Overview Section
Chairman’s Message
This overview of Dominion’s 2010 social, economic and environmental performance
represents a departure from previous years, when our main report was printed and
distributed to select internal and external stakeholder groups. As part of a systematic effort
to conserve resources and reduce our environmental impact, we chose to produce a printed
summary report and make our full report available on the Dominion website. This also
allows us to use interactive media to better showcase our company and provide
stakeholders with another means of engaging with us.
In these pages, you will learn about some of the ways that Dominion is working to achieve
sustainable value for our stakeholders:
How we have transformed the company to meet the long-term energy needs of our
customers;
How we are improving environmental performance, reducing emissions and
increasing our renewable energy portfolio;
How our employees achieved the best safety performance ever at our three operating
businesses;
How Dominion volunteers set a company record for community service and earned
the United Way’s highest national award for volunteerism.
These and other examples will help you understand the character of our company and the
dedicated people who are building on a century-old legacy of service, excellence and
ingenuity – qualities that will be instrumental in helping to meet the challenges of this
transformational era for energy.
You hear a lot about sustainability these days, but what exactly is it? There is no universally
accepted definition that suits every organization all the time.
At Dominion, sustainability is about finding an appropriate balance among our social,
economic and environmental commitments. We embrace the complex challenges of
providing safe, reliable, affordable and responsible energy. Our pledge is to work for
sustainable solutions that serve our customers, communities, shareholders and employees.
Our passion is dedicated to creating a smarter, cleaner and more efficient energy future.
We can and do change our business model, strategies and goals to adapt to shifting
circumstances while remaining true to the core values that anchor all of our policies and
practices. At Dominion, those values are safety, ethics, excellence and teamwork. They
embody who we are and what we stand for as a company.
Guided by our core values, we strive for responsible performance and continuous
improvement that serves the social, economic, and environmental well-being of our
customers and communities. In early 2011, for example, we took several significant steps to
advance and formalize our sustainability commitment:
We named a new director of sustainability to lead our program by raising awareness
and engaging management, employees and other stakeholders in a conversation
about lasting solutions to the energy challenges before us;
We formed a 12-member Executive Sustainability Council to provide strategic
direction, set goals and oversee performance; and
We created an Employee Sustainability Team to share information and best practices
across the organization, to coordinate with the executive council and to help engage
the workforce in our citizenship and sustainability initiatives.
As the work of these groups takes root and spreads around the company, there is sure to be
fresh thinking about the future. And fresh thinking leads to innovative ways of acting and
interacting and taking ownership of what we do.
We plan to listen, engage and learn. We intend to get better at sustainability every year. I
invite you to join us on this important journey. Please send your comments and suggestions
In the meantime, I encourage you to explore this year’s report in greater depth. You will meet
some of the 16,000 employees whose imagination, intelligence, passion and caring lie at
the heart of the Dominion enterprise.
Tom Farrell
Chairman, President & CEO
June 2011
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Overview Section
Sustainability Focus
In early 2011, we took several significant steps to advance and formalize our sustainability
commitment:
We named a new director of sustainability to lead our program and engage the
workforce more fully in our citizenship and sustainability challenges
We formed a 12-member Executive Sustainability Council to provide strategic
direction, set goals and oversee performance
We created an Employee Sustainability Team to share information and best practices
across the organization and to coordinate efforts with the executive council
We are structuring our sustainability initiatives around these four broad focus areas:
Investing in the technologies of tomorrow
To produce scalable clean energy at higher efficiencies and lower costs, we need to develop
new technologies or improve the ones we have today. To this end, Dominion’s Alternative
Energy Solutions group was created to harness the full potential of emerging alternative
energy sources, such as offshore wind, solar photovoltaic power, smart grid and energy
storage technologies. AES researches the commercial viability of renewable energy
technologies and conservation and demand management tools to identify the most
promising investment opportunities and potential partnerships.
Reducing our environmental footprint
Environmental stewardship is a core responsibility at Dominion. We recognize that a healthy
environment is key to the sustainable success of our business. By 2015, we will have
invested more than $3 billion to improve the environmental performance of our generating
fleet and reduce air emissions by more than 80 percent. We are also growing our renewable
energy portfolio to help lower our carbon intensity – already among the lowest in our utility
peer group – and maintain a balanced and diverse mix of fuel sources.
Providing green opportunities for our customers and communities
We are partnering with our customers on ways to manage their electricity use and reduce
the strain on our energy system and the environment. A portfolio of conservation and
energy-efficiency program offerings could save our customers more than $600 million over
the next 25 years. And in response to growing customer interest, we are providing
opportunities to support green energy options that will help meet renewable portfolio
standards in Virginia and North Carolina.
Engaging our employees and stakeholders
We value our employees and the communities in which they live and work. Both are
essential to the sustainability of our business. We engage with them on multiple levels for a
variety of reasons – sharing information, raising awareness, identifying concerns, obtaining
feedback – and many others. Effective engagement with stakeholders – inside and outside
the company – is vital to our sustainability initiatives and our ability to sustain the public’s
trust. We plan to build on existing relationships and seek new opportunities for
collaboration, partnership and improvement.
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Overview Section
Company Profile
Dominion [NYSE: D] is one of the nation’s largest electric power and natural gas companies,
serving almost 6 million utility and retail energy customers in 15 states. Our company is built
on a proud legacy of public service, innovation and community involvement.
In addition to our core energy production, transportation and storage businesses, we strive
to create sustainable value by investing in the communities where we live and work and by
practicing responsible environmental stewardship wherever we operate.
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Overview Section
Our Mission and Values
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Overview Section
Awards and Recognition
Performance excellence is a core value at Dominion. We are grateful to the many
organizations that have honored our efforts to excel. Here is a representative sample of
awards received in 2010:
Summit Award for Community Volunteerism (> news release)
United Way Worldwide
World’s Most Admired Companies (> more)
Fortune magazine/Hay Group
100 Best Corporate Citizens List
Corporate Responsibility Magazine
2010 Green Rankings, 500 Greenest Companies in the U.S. (> more)
Newsweek magazine
Hero of the Chesapeake Bay Award (> more)
Maryland Legislative Sportsmen’s Foundation
Utility Achievement Award for Outstanding Performance in Plant Operations (> more)
American Nuclear Society
Best New Website Award (> more)
PR News Digital Awards
10th Best Funded Pension Trust
Pensions & Investments magazine
Top 100 Military Friendly Employer Award (> more)
G.I. Jobs magazine
Best for Vets Employers Award (> more)
Military Times magazine
Community Advocacy Award (> more)
Variety the Children’s Charity, Pittsburgh, Pa.
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Focus Areas
OUR BUSINESS FOCUS AREAS
Achieve stable, sustainable earnings and dividend growth
Reduce commodity price exposure and risk profile
Expand and modernize energy infrastructure
Evaluate new and emerging alternative energy solutions and technologies
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Corporate Strategy
In 2010, we put the finishing touches on a five-year strategic transformation of Dominion
that favors our lower-risk, regulated natural gas and electric utility businesses.
Since 2006, we have taken a series of strategic steps to refocus on our core regulated
energy supply and delivery operations, divest more than $18 billion in non-strategic assets
and reduce our exposure to volatile commodity prices. These initiatives have strengthened
our balance sheet, reduced debt and improved our credit ratings.
We are now well positioned to embark on a five-year, $10 billion infrastructure expansion
plan and achieve sustainable value for our stakeholders. These investments will include
building new power stations, upgrading existing ones, adding new natural gas
pipelines and modernizing the power grid to meet the growing energy needs of our
customers.
Our Five-Year Growth Strategy
The key elements of our five-year growth strategy to achieve sustainable financial and
operational excellence include:
Increase regulated operating earnings to 65-75 percent of the total (up from 42
percent as recently as 2006)
Achieve 5-6 percent average annual operating earnings growth beginning in 2012
Raise the dividend payout ratio – the portion of earnings returned to investors in the
form of dividends – to 60-65 percent, subject to approval by the board of directors
Allocate most of our planned growth capital expenditures to our regulated
infrastructure expansion plan
Maximize the value of our unregulated electric and gas operations
$10 Billion Construction Investment Program
The main drivers behind our $10 billion construction investment program are:
Anticipated demand growth at our electric utility serving Virginia and North Carolina –
one of the nation’s fastest growing regions – equivalent to adding 1.1 million new
homes to our system by 2020
A boom in natural gas production from the Marcellus Shale formation in West Virginia
and Pennsylvania, where we plan to help producers gather, process and transport
their gas to market
Needed modernization of the pipes and wires supplying energy to our distribution
customers in Virginia, North Carolina, Ohio and West Virginia, and
new transmission pipes serving natural gas markets in the Northeast and mid-
Atlantic regions
Related Links
Dominion Companies
Dominion Leadership
Corporate Governance
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Risk Management
The company’s enterprise risk assessment process provides a business planning framework
to help define the company’s optimal risk/reward balance and align with our strategic
priorities and the way capital is deployed to support those priorities. Dominion employs an
integrated risk assessment framework to provide counsel to and prompt increased dialogue
among business unit leadership teams, corporate senior management and the board of
directors.
Any issue that has a material impact on Dominion can, by varying degrees, also affect our
employees, customers, shareholders, vendors, creditors and other stakeholders.
A summary of the key risks that affect Dominion can be found in the company’s Form 10-K
filing.
Related Links
SEC Filings
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Governance
Good governance is central to sustainable performance and success. It helps identify
Dominion as a competent and trustworthy steward of the resources entrusted to our care. It
also provides a foundation for constructive management oversight, upholds a rigorous
culture of accountability and helps protect the rights of shareholders.
Our Approach
We believe that a well-governed company does best over time by acknowledging the
interests of all stakeholders, including customers, the community, employees, shareholder
advocates and various other individuals and organizations.
Upholding shareholder interests is the fiduciary responsibility of our board of directors. The
board also seeks to be fair and responsive to all stakeholder groups. It is good business
practice, and it also reinforces two of Dominion’s core values: excellence and ethical
conduct.
Our Board of Directors
The Dominion Board of Directors is composed of 11 independent directors, plus Thomas F.
Farrell II, the company’s Chairman, President and CEO. The board has three committees to
help execute its responsibilities:
Compensation, Governance and Nominating
Audit
Finance and Risk Oversight
All committee members are independent directors. Each board committee has a charter that
describes its responsibilities in detail. The full board’s structure and responsibilities are
outlined in its corporate governance guidelines, which also include our director
independence standards.
Our Process
We review our governance documents and policies regularly and propose changes to those
documents with the advent of new rules and regulations, or if changes are consistent with
good governance practice and in the best interests of Dominion and its shareholders.
We have a number of procedures in place that are viewed as "best practices" and reflect
Dominion’s commitment to good governance. These include the designation of a lead
director; majority voting standard in uncontested director elections; annual election of
directors; and regular executive sessions of independent directors without management
present.
Related Links
Corporate Governance
Board of Directors
Board Committees and Charters
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Ethics
Ethics is a core value at Dominion. That means qualities such as integrity, individual
responsibility and accountability matter as much as bottom-line results. Doing right and
doing well are inseparable. All Dominion employees share the responsibility for making
ethical conduct central to our business operations and outlook.
Our Ethics and Compliance Program
Dominion’s Ethics and Compliance Program is designed to detect
and prevent violations of law, regulations and policies. Its key
components include:
A companywide Code of Ethics and Business Conduct Management oversight
Employee training and awareness
Regulatory compliance
Resources for employees to seek advice or guidance
Options for reporting concerns
Periodic program evaluations
The Audit Committee of the board of directors oversees our Ethics
and Compliance Program. The company’s general counsel serves as chief compliance
officer, and other company executives serve as high-level compliance officers. These
members of senior management are standard bearers for the Code of Ethics and Business Conduct. With the help of compliance attorneys, they work to ensure that Dominion complies
with applicable laws, regulations and company polices and maintains high ethical standards
in its business activities.
The Governance Department is responsible for day-to-day administration of the Ethics and
Compliance Program. Departmental staff evaluates the program periodically to make sure it
is working as intended and remains current with trends in the business world.
A New Code
A new Code of Ethics and Business Conduct was distributed to all employees in January
2011. The 28-page booklet with the tagline “Many strengths, one code,” creates a brand for
the Ethics and Compliance Program to increase awareness of the company’s ethical
expectations. The new format provides an overview of important policies and legal
requirements, as well as examples of ethical and compliance situations that can occur on
the job. The new brand is also featured on posters displayed throughout the company and
on mouse pads provided to all employees. The posters and mouse pads provide contact
information for reporting ethical concerns.
Employees, officers and board members are offered training on a regular basis to ensure
they understand key provisions of the ethics programs and the Code of Ethics and Business Conduct.
In 2010, all employees were required to complete a comprehensive training module on the
Code. Those affected by various regulatory requirements also received training on federal
and state codes and standards of conduct, electric reliability standards, and other
applicable regulatory activities. In 2011, the Governance Department began offering
interactive ethics and compliance training sessions on specific topics at various company
locations.
Our Shared Responsibility
Employees are expected to report any concerns about suspected misconduct or illegal
activities and may do so anonymously by means of a dedicated and confidential telephone
hotline and Internet website. Each year, the company distributes a compliance survey to
employees to help identify and address compliance concerns. A dedicated e-mail account
was created in 2011 to provide employees with an additional option for asking questions
and seeking guidance. Also, company shareholders may communicate directly to
independent board members via Dominion’s website or through the U.S. mail.
Retaliation for good-faith reporting is strictly prohibited.
In 2010, Dominion reviewed 179 concerns received through its compliance hotline, annual
compliance survey and other resources. We categorize these concerns by type of allegation
to facilitate investigation by appropriate company personnel. A compliance attorney
oversees all investigations.
Related Links
Code of Ethics and Business Conduct
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Stakeholder Engagement
Active engagement with our stakeholders is one way we demonstrate our commitment to
transparency and accountability in the way we run our business. Effective two-way
communication, consultation and collaboration with groups whose interests intersect with
ours provide opportunities for understanding diverse perspectives and priorities and aligning
our decisions with the needs and expectations of our stakeholders.
Some of the many channels that Dominion uses to engage stakeholders are listed in the
following table and throughout our report:
Stakeholder
Group
Channels of Engagement Examples
Workforce Print and electronic
communications
Town hall meetings with
executives
Quarterly safety meetings
Executive and business unit
diversity councils
Six Sigma quality
improvement teams
Awards/recognition banquets
Volunteer opportunities
Employee surveys
Labor negotiations
Wellness blog
Employee sustainability
teams
Career/leadership
development training
Confidential compliance
hotline
Annual performance
appraisal process
Employee Assistance
Program
Annual "Volunteers of the Year”
recognition banquet in Virginia and Ohio
to celebrate leadership in community
service
Partner with Corpedia to offer full suite
of management, professional
development and compliance
coursework
Employee Assistance Program provides
free, objective, confidential help for
employees and family members
Job
Candidates
Job fairs
College recruiting visits
Co-operative
education/internship program
Scholarship programs
Social media
Career Center website
Two-year “Troops to Energy Jobs” pilot
program will link job openings with troops
leaving military service
Diversity Scholarship Program provides
grant support for participants as well as a
summer internship
Customers Online account managements
tools
Bill inserts and newsletters
Customer educational
programs
Volunteer speakers bureau
Energy assistance programs
Energy conservation blog
Green power and conservation
program offerings
Interactive online power outage
viewer
Call center customer
assistance
Safety and storm
preparation news releases
"Key Customer"
commercial/industrial web
page
Public hearings
Social media
Home repair service programs
Business partnership programs
EnergyShare fuel assistance
program pays any type of heating bill for
needy customers
Investors,
Security
Analysts
Annual shareholder meeting
Annual Report, proxy
communications and sustainability
report publications
Investor newsletter
Online account services
Webcasts
Quarterly earnings conference
calls
Institutional investor meetings and
conference calls
Analyst road shows
CEO presentation, Barclays
Capital Energy/Power
Conference, NYC, September 16,
2010
2010 Summary Annual Report
Government,
Elected Officials
State and federal regulatory
proceedings and rate cases
Lobbying and advocacy
Meetings
Facility tours
Policy papers and testimony
Emergency preparedness drills
with state agencies
Local planning commissions
Project updates for local
officials
Representation on boards and
advisory committees
Virginia Offshore Wind
Development Authority
Pipeline Infrastructure
Improvement proceedings, Ohio
Power Siting Board
Executive Committee, Sustainable
Transportation Initiative of
Richmond, Va.
Federal Energy Regulatory
Commission
Communities,
Non-
Governmental
Organizations
Partnerships and networking
relationships
Employee volunteer projects
Participation on boards and
advisory committees
Charitable giving
Traditional and social media
Website and newsletters
Community recognition events
and sponsorships
Teacher workshops
Business alliances
Retiree organizations
Minority Supplier Development
Councils in Ohio and Virginia
Dominion Higher Educational
Grants Partnership
EnergyShare Citizen Steering
Committee
Corporate partner, The Nature
Conservancy
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Operations
Dominion’s corporate headquarters is located on the banks of the historic James River in
downtown Richmond, Va. Dominion serves about 5.7 million retail customers and has
business operations in 14 states, mostly in the mid-Atlantic, Midwest and Northeast regions
of the country.Dominion is a diversified Fortune 200 company and one of the nation’s
largest producers and transporters of energy.
We operate primarily in the energy-intensive Midwest, mid-Atlantic and Northeast regions of
the country, a potential market of 60 million homes and businesses where more than 40
percent of the nation’s energy is consumed.
Dominion has three operating segments, including Dominion Generation, Dominion Virginia
Power and Dominion Energy.
Dominion Generation
Dominion Generation operates our approximately 28,200-megawatt generating fleet, about
two-thirds of which is regulated utility generation. These assets are located in Virginia, West
Virginia and North Carolina. The remaining third of our generating assets is merchant power
located in the Midwest and Northeast. Dominion is the single largest producer of electricity
in New England, serving about 25 percent of that competitive market.
We actively pursue fuel diversity and balance in our generation portfolio. Slightly more than
half of our total fleet production is fossil-fired, and the rest is emissions-free nuclear and
renewable power.
Dominion Virginia Power
Dominion Virginia Power operates our 6,300-mile network of regulated electric transmission
lines and our 56,800 miles of distribution lines serving 2.4 million homes and businesses in
Virginia and North Carolina. In North Carolina the business operates under the
name Dominion North Carolina Power.
Dominion Retail, an unregulated energy marketing unit within Dominion Virginia Power,
operates in competitive energy markets in 15 states. Its product lines include natural gas,
electricity and home warranty services.
Dominion Energy
Dominion Energy includes the following natural gas operations:
Dominion East Ohio and Dominion Hope (West Virginia), regulated natural gas
distribution companies serving 1.3 million customers in the two-state area over a
21,800-mile network of gas distribution pipeline
Dominion Transmission, a regulated gas transmission pipeline and storage business
with 11,000 miles of pipeline in Maryland, New York, Ohio, Pennsylvania, Virginia and
West Virginia and approximately 950 Bcf of underground gas storage fields in New
York, Pennsylvania, West Virginia and Ohio
Dominion Cove Point LNG, a liquefied natural gas import terminal on the Chesapeake
Bay
Operating Businesses
Related Links
Dominion Companies
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Emergency Preparedness
Emergency planning and preparation are key components of Dominion’s integrated,
enterprise-wide risk assessment and sustainability framework. Our emergency preparedness
programs enable trained personnel to identify, evaluate and manage through a wide variety
of potential emergencies and major events, including those caused by severe weather and
equipment malfunctions.
In 2009, we added a Mobile Command Center to our emergency response fleet. This 38-
foot, high-tech trailer can serve as the nerve center to direct a variety of emergency
situations. The Center is equipped with two-way satellite communications equipment,
computer workstations, meeting space and support facilities. It can connect wirelessly to
Dominion’s computer network and telephone system from anywhere in the U.S.
Excellence in emergency preparedness goes beyond working to prevent incidents and being
ready to respond when events do occur. It also involves providing timely, clear
communications to all concerned.
To this end, Dominion began an initiative in 2010 to strengthen our crisis communications
capabilities and better integrate communications into our crisis planning. This initiative also
includes improvements in the company’s ability to sustain operations in the event that any
of our support facilities are not available. Updates on this important initiative will be
provided in the next edition of our Citizenship & Sustainability Report.
Two examples of Dominion’s emergency response plans and preparedness are discussed
below.
Nuclear
The mission of Dominion’s Nuclear Emergency Response Organization (ERO) is to ensure
that adequate protective measures can and will be taken, both within our station boundaries
and beyond, in the unlikely event of a radiological emergency at one of our four nuclear
facilities in Virginia, Wisconsin and Connecticut.
We do this by providing detailed plans, procedures, facilities, equipment, training and
performance-enhancing experiences for members of the ERO team and by partnering with
government response organizations at the federal, state and local levels.
The Nuclear Regulatory Commission (NRC) oversees our plans and programs to protect the
public by conducting thorough inspections of our facilities. As a condition of our operating
licenses, we are required to develop and maintain emergency preparedness plans that meet
comprehensive NRC guidelines. The agency evaluates our plans for compliance and also
tests our ability to implement them at each of our nuclear stations.
In collaboration with government emergency planning agencies, Dominion’s ERO teams
perform full-scale mock emergency exercises at least once every two years. These drills help
to maintain the skills of our emergency responders and also identify any needed
improvements in performance. These scenario-based exercises are both planned and
unscheduled and are evaluated by inspectors from the NRC, the Federal Emergency
Management Agency (FEMA) and the Institute of Nuclear Power Operations (INPO).
Because of the potential seriousness of a nuclear accident, the NRC also requires that state
and local communities within a 10-mile radius of a nuclear station also prepare emergency
response plans. These plans provide guidelines to state and local officials charged with
responding to a nuclear emergency, including procedures for communicating with the public
and for taking protective actions, such as sheltering or evacuation.
Assessing the Impact of the Fukushima Incident
In the wake of the March 2011 Fukushima Daiichi nuclear station accident in Japan, the
U.S. nuclear industry initiated a series of comprehensive safety reviews and inspections at
the nation’s 104 operating nuclear reactors. In addition, the NRC and INPO continue to
monitor and analyze the unfolding events at Fukushima, offering technical support and
focusing on what lessons can be learned from the Japanese experience.
The Electric Power Research Institute, the Nuclear Energy Institute and INPO have joined
forces to establish a Fukushima Steering Committee charged with coordinating the U.S.
nuclear industry’s response to the accident. Dominion’s chief nuclear officer is a member of
the Steering Committee.
At Dominion, we assembled a team of internal experts to rigorously examine our nuclear
safety procedures, training programs, systems and equipment to make sure that our
stations are well prepared to respond to any events that could challenge their continuing
safe operation. These efforts are ongoing and of the highest priority.
We will continue to work with our peer utilities, INPO, and the NRC to assess lessons learned
and to integrate any additional actions we think are necessary to enhance our readiness for
severe accidents.
Despite the seriousness of the accident at Fukushima, Dominion remains firmly committed
to nuclear power as a safe, clean, economic and reliable source of energy – now and in the
future. We plan to move forward with our efforts to secure a federal license to construct and
operate a third reactor at the North Anna Nuclear Station in Central Virginia, even though we
have not committed to building the unit at this time.
Storm Preparations and Planning
Mother Nature finds ways to disrupt electric service, whether in the form of ice storms,
hurricanes, thunderstorms or other types of severe weather.
To prepare for these occasions, Dominion Virginia Power employees in Transmission,
Distribution, Supply Chain Management, Facilities and Security, Information Technology,
Human Resources, Travel Services and Communications conduct annual drills that simulate
severe weather events. They practice putting into motion the same action plans,
technologies and modes of communication that would be used when the company’s
Emergency Preparedness Plan is activated by a real event.
Related Links
Nuclear Emergency Preparedness
U.S. NRC Emergency Preparedness & Response
Outage Preparation Tips
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Alternative Energy Research & Development
Dominion’s Alternative Energy Solutions (AES) group serves as the hub for all things related
to green and emerging energy technology research and development.
AES consists of three departments:
Research & Program Development conducts technology research in renewable
energy, conservation and load management to support the company’s operating
segments and act as an in-house information resource
Policy & Business Evaluation assesses potential investment opportunities and
partnerships in the alternative energy space, as well as the legal and regulatory
implications for Dominion
Financial Analysis models different investment options, analyzes federal and state
incentives and subsidies and looks at customer economics and engineering issues.
Technologies Under Review
Examples of alternative energy technologies under review by AES include:
Offshore wind
Solar photovoltaic
Distributed generation
Compressed air energy storage
Flywheel storage
Geothermal power
Solid oxide fuel cells
Smart microgrid
Plug-in hybrid electric vehicles
AES Investments
In 2010, AES identified two investment opportunities for Dominion in the alternative energy
sector:
Power Tagging Technologies, Inc., a Colorado-based developer of energy information
and customer service technology for use
through the emerging smart grid
GreenTech Incubator, a Dominion-sponsored
facility in Central Virginia that assists new
green energy entrepreneurs with research, financial services and planning
Two of the incubator’s current tenants are developing technologies to lower fuel use
and emissions in the trucking industry and manufacturing solar panels for big
business.
Related Links
Virginia Business article featuring Mary Doswell, Senior Vice President, Alternative
Energy Solutions
Dominion Resources GreenTech Incubator
Power Tagging
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Public Policy
Dominion actively participates in the political process to help shape policies that advance
our business strategies and goals, promote effective public and government relations, and
serve the interests of key stakeholder groups.
Why We Engage
With the many dramatic changes occurring in today's energy industry, we believe it is critical
to be engaged in the political arena. Making our position known on important issues, such
as climate change, natural gas pipeline safety, electric reliability and environmental
regulations, is essential if we are to be effective in protecting the interests of our
shareholders, customers, employees and the communities where we live and work.
At the federal level, we engage with Congress, federal agencies, the executive branch and
trade associations to promote legislation that will have a positive impact on the nation’s
energy landscape.
For example, our Chairman, President and CEO, Tom Farrell, has long been a vocal advocate
for a coherent and comprehensive national energy policy to guide the transition to a future
energy system that is both environmentally and economically sustainable.
At the state and local level, we engage with many different groups, including elected
officials, regulators, community and business leaders, and environmental and safety
agencies, among others. By nurturing these relationships and conducting our business as
transparently as possible, we hope to build public trust and form lasting partnerships that
are mutually beneficial.
Political Contributions
Dominion operates a political action committee (PAC) that is strictly voluntary and
nonpartisan. It is funded solely by our employees. The Dominion PAC represents our
collective voice, ensuring that employee, company and industry interests are upheld and
articulated at all levels of the political process.
One hundred percent of employee contributions to the PAC go directly to political candidates
who support sound energy and business policies at both the federal and state levels.
Each year Dominion voluntarily reports corporate political contributions to tax-exempt 527
organizations, as well as the lobbying portion of trade association payments and dues. In
addition, we disclose our political contributions on the website of the Federal Election
Commission and the electoral board website of each state in which we contribute to state
and local elections.
Dominion also has long supported the Virginia Public Access Project, a nonprofit,
nonpartisan group dedicated to improved transparency and disclosure of funding sources
for state elections.
Related Links
Political Contributions
Virginia Public Access Project
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Focus Areas
OUR WORKFORCE FOCUS AREAS
Promote a culture of safety, integrity, diversity and excellence
Provide challenging professional growth and leadership opportunities
Recognize, reward and celebrate employee achievement
Develop and execute strategies to attract and retain top talent
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Safety
Safety tops the list of our core values. And for good
reason. Many of our employees work around
electricity and natural gas in dangerous condition at
all times of the day and night. Our top priority is to
make sure they return home safely at the end of the
workday, each and every day.
Safety and Operational Excellence
Our chairman and CEO, Tom Farrell, likes to point out the correlation between safety
performance and overall operational excellence. Whenever he meets with employee groups,
the first subject on the agenda is safety. It is the glue that holds everything together.
Sloppy safety habits invariably affect our operating performance, our morale and our costs.
Everyone loses when safety is compromised. If we fail to operate our power stations, bucket
trucks and gas compressors safely and reliably, we will not achieve the level of operational
success that we want and need to be an industry leader. That is why our "zero tolerance" for
injuries is the only acceptable standard of performance.
Recent results reinforce this approach. As our safety emphasis has increased, so has our
performance – in power generation efficiency and productivity, electric transmission and
distribution reliability, and the level of customer satisfaction with our gas pipeline system.
Safety Performance
In 2010, all three of our operating units achieved their all-time best safety performance.
First and foremost, we experienced no employee fatalities for the third consecutive year. And
throughout 2010, we consistently ranked in the top quartile of companies in the Southeast
Electric Exchange in employee safety performance. Our OSHA recordable incident rate of
0.95 incidents per 100 employees represented a 17 percent drop from 2009, and a 77
percent reduction from 2003.
We attribute our success to a number of things:
Relentless safety focus and engagement by senior management and the workforce
Heightened emphasis on individual responsibility, performance and accountability
Strong commitment to core safety activities, such as pre-job briefings, safety
observations and regular safety meetings
Comprehensive and frequent employee communications about safety, including print
and electronic media and face-to-face meetings with company leaders
Delivering top-tier safety results depends as much on what we do not do as on what
we do. And that is rest on our laurels. Complacency and a “good enough” attitude are
unacceptable when you believe, as we do, that every accident is preventable.
By putting safety first and by focusing on continuous improvement, we create a strong
foundation for personal well-being and superior performance by the company.
Related Links
Safety
Electric Safety
Natural Gas Safety
Pipeline Safety
Nuclear Emergency Preparedness
Contractor Safety
First Responder Safety
Safety Education for Kids
Call Before You Dig
Speakers Bureau Program
Pipeline Safety Program
Natural gas is the nation’s dominant heating fuel, serving
close to 57 million homes in all. Pipeline operators and
the nation’s 2.5-million-mile network of natural gas
pipelines are regulated at the state and federal levels.
The industry is subject to rigorous inspections,
maintenance and oversight to ensure public safety.
Even though pipeline operators have an admirable long-
term safety record for transporting natural gas, several
fatal pipeline explosions that occurred in California and
Pennsylvania during the past year have elevated safety
concerns and led to increased scrutiny of the industry.
In the wake of these explosions, state and federal
regulatory agencies and Congress have held a series of
hearings to determine how pipeline safety could be
improved. New federally-mandated pipeline integrity
management rules affecting Dominion and other gas
distribution and transmission companies have been
promulgated. And the industry continues to evaluate the
root cause of these incidents to minimize the likelihood
of a reoccurrence.
As with all aspects of our business, Dominion takes the
safety of our natural gas customers and pipeline systems
very seriously. We comply fully with all state and federal
pipeline regulations. And our Pipeline Integrity
Management Program goes above and beyond the
provisions of the federal rules governing inspections and
repairs by evaluating many more miles of pipe than
required and taking corrective action as needed.
At the end of 2010, Dominion Transmission had
completed inline inspections of more than 80 percent of
its 7,800-mile pipeline system across six states using
smart pig technology – well ahead of the regulatory
deadline.
Smart pigs are robot-like devices that ride along the flow
of natural gas inside the pipeline, cleaning interior
surfaces, removing corrosion, and collecting and
transmitting data. (See accompanying article).
Dominion East Ohio (DEO), our natural gas distribution company that serves about 1.3
million customer accounts in Ohio and West Virginia, also uses smart pigging technology as
part of its Integrity Management Program.
The company conducts monthly aerial patrols of its entire transmission, storage and
gathering pipelines to monitor for any incursions, right-of-way encroachments,
undocumented construction and other unauthorized activities.
Each calendar year, DEO conducts leak inspections on mainlines and other distribution
pipelines within the commercial business districts we serve. Similar leak inspections take
place on most other pipelines every three calendar years.
Additional safety-related measures include:
Conducting public awareness educational campaigns
Participating in excavation damage prevention initiatives
Installing above-ground markers to indicate the location of buried gas lines
Maintaining rigorous standards for qualification and inspection of construction
techniques used in our systems
Supporting research and development related to pipeline inspection, integrity,
corrosion prevention and construction techniques
Related Links
Pipeline Integrity Management Program
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Health and Wellness
At Dominion, we adopt an expansive view of "wellness." We define it broadly to include
physical and mental health, fitness and general well-being. We strive to provide our
employees and their dependents with a wide array of wellness offerings and health
management services to encourage preventive care and to support work/life balance.
We value wellness for the same reasons we value peak performance in all areas of our
business: healthy employees tend to be the safest and most productive workers. And
studies show that a healthier workforce can translate to significant cost savings for the
company and employees alike.
Initiatives
A sampling of our Health & Wellness and Work/Life Initiatives include:
Health plans (medical, prescription drug, dental and vision benefits as applicable)
Condition/disease management program
Employee assistance program
Fitness centers and health club discounts
Life insurance/accidental death and dismemberment, long-term care insurance,
long-term disability
Pre-natal risk management program
Child care and elder care
Adoption assistance
Employee discounts and loans
Flexible work arrangements
Student scholarships and work programs
Related Links
Our Benefits
Campus Connection
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Compensation and Benefits
We offer a competitive and integrated total rewards package designed to attract, motivate
and retain the best and brightest.
Our Compensation Package
Dominion’s compensation package includes a combination of base pay, annual
performance incentives and long-term incentives designed to reward strong performance.
We benchmark our compensation package against peer companies to make sure it is fair
and equitable, competitive and aligned to support our business objectives. We also
negotiate in good faith with union leaders regarding the employment terms and conditions
of our union-represented employees.
Our Annual Incentive Plan
The company’s Annual Incentive Plan (AIP) is a cash-based program focused on short-term
goal accomplishment. It is structured to link the interests of our customers, shareholders
and employees. The AIP also helps reinforce the importance of Dominion’s core values and
focus the workforce on corporate, operating, team and individual goals.
Our Suite of Benefits
Financial rewards are not the only ones that matter to employees. We also offer a
comprehensive suite of benefits that fit different needs and lifestyles, including:
A 401(k) retirement savings plan with company matching funds subject to IRS
guidelines
A pension plan with company-paid retirement benefits for eligible employees
A comprehensive package of health benefits, including medical, dental, vision, life
insurance and disability benefits
Online investment advice and personal asset manager through a third-party vendor
A retiree medical account for eligible employees
A tuition reimbursement program
Time off – paid holidays, personal days, vacation and sick leave
Family and medical leave
Healthcare and dependent care spending accounts
Numerous health and wellness and work/life balance initiatives
Related Links
Our Benefits
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Diversity and Inclusion
Today’s Dominion mirrors the increasingly diverse society in which we do
business. Measured by age, gender, education, ethnic background, personality type,
birthplace or any other classification, our workforce features great variety and richness.
We value diversity and inclusion as a strategic asset and an important expression of our
core values. We think it is vital to our future as a sustainable business
enterprise. Dominion’s approach to diversity is built on three pillars, all of which are
essential to our sustainability:
Workforce
Supply chain
Community
We want our employees to feel accepted, respected and given every opportunity to reach
their full potential. The differences they bring to work strengthen our company through
breadth of experience, perspective and talent. As ideas are exchanged and different
perspectives are shared, we become a more creative and productive company. This benefits
our employees, suppliers and the communities we serve.
In the Workforce
Dominion’s strategic workforce diversity plan includes five key elements:
Visible leadership
Communications and education
Sourcing and recruitment
Professional development
Employee engagement and retention
The 2010 reorganization of our diversity councils along business unit lines has served to
further integrate diversity goals and practices into our core businesses. Our goal is to embed
diversity into our corporate culture, much the same way that safety has become an
ingrained value and the touchstone of our daily work.
Each business unit council has an executive sponsor who works closely with the executive
diversity council. Company leaders have undergone extensive diversity training, which will
be offered to all employees as well.
In the Supply Chain
In 2010, Dominion purchased more than $300 million in goods and services from diverse
suppliers, a 31 percent increase over 2009 and a milestone for the company’s supplier
diversity program. Diverse suppliers are companies certified as owned by minorities, women
and service-disabled veterans and by those operating in a Historically Under-Utilized
Business, or HUB, zone.
Partnerships with diverse suppliers make good business sense. They translate into
economic growth and increased employment opportunities in the communities we serve. A
diverse, qualified supplier base leads to improved supplier performance and competitive
pricing. The products and services we procure range from equipment and hardware to
construction services and environmental consulting.
In The Community
Dominion has a longstanding track record of supporting diversity initiatives in the
communities where we operate. We do so through charitable giving programs, diverse
partnerships and volunteer outreach.
In 2010, the Dominion Foundation provided grants to more than 50 minority organizations
in eight states. Examples include the Virginia Holocaust Museum, the African American
Chamber Foundation in Pennsylvania and the Scottish Heritage Festival in West
Virginia. Focus areas for our diversity grants include history, workforce development and
education, as well as basic human needs for food, health and shelter.
We also empower employee volunteers to work hand-in-hand with numerous community-
based organizations. That could mean building homes for deserving families, working with
Special Olympians, participating in diversity walks, or donating care packages to American
troops overseas, among others.
Related Links
Diversity
Charitable Giving
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Employee Engagement and Recognition
All of the workplace initiatives featured in this report support our efforts to build and sustain
a high level of employee engagement.
We understand that an engaged and motivated workforce drives organizational
performance. And we know the more engaged our employees, the safer, more productive
and customer-focused they will be – and also the more committed to the company’s
strategic goals and mission.
As we work toward a sustainable engagement model, we strive to balance the company’s
business needs with our employees’ desire to grow professionally in their careers. The
guiding principles of this emerging model include:
Communications that align company and employee needs and reinforce our mutual
commitments and responsibilities
Performance and accountability that emphasize results and define and measure
success at every organizational level
Development initiatives that identify and grow leadership capacity and career path
potential
Recognition programs and awards that honor and encourage outstanding job
performance, innovation and community service
As in other areas of our business, our approach to engagement is focused on continuous
improvement and finding new ways to boost engagement levels in keeping with ever-
changing business conditions. We look forward to communicating our progress and any new
initiatives to drive performance in future editions of this report.
Related Links
Stakeholder Engagement
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Professional Development
We strive to offer our employees wide-ranging opportunities for sustained career growth and
fulfillment – from new hires to seasoned veterans. For example, the company covers the
cost of professional memberships and certifications, and generous tuition reimbursement is
available for those pursuing degrees in their chosen field. From informal mentoring to
formal classroom instruction, each Dominion business unit offers targeted work-related
training and development opportunities to its team members.
Our Training and Development Tools
We use a variety of training and development tools to make sure our employees have the
knowledge base and skill sets needed to optimize their performance and prepare for future
career opportunities, including:
In-house, instructor-led training programs
Webinars
e-Learning instruction modules
On-the-job development experiences
Tuition reimbursement through the Education Assistance Program
Our Performance Appraisal Process
All non-union employees and their supervisors use an annual performance appraisal
process as a tool for engagement, assessment and feedback.
The performance appraisal process has three goals:
Set expectations, objectives and measurement criteria for the coming year’s
performance
Provide feedback on the past year’s performance, focusing on accomplishments and
how expectations/objectives were met
Create a Performance Development Plan to improve or leverage performance
Specific and detailed feedback on performance is critical to maintaining a high level of
motivation and engagement. Objective appraisals document performance on established
goals and help define a roadmap for improvement and career development. With regular
feedback and coaching, ratings on the performance appraisal should never come as a
surprise to any employee.
Our Career Planning e-Tool
In 2010, we created and implemented a new Career Planning e-Tool to serve as a guide for
employees and their supervisors during the career planning process. Available on the
company’s Intranet website, the e-Tool resource features assessments, discussion guides,
templates, interviewing tips, mentoring and job shadowing guidance to help employees chart
their career development path.
We intend to place even more emphasis on career planning initiatives in 2011 and will
report on them in next year’s edition of our Citizenship & Sustainability Report.
Related Links
Careers
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Workforce Planning
It is a well-known fact that the Baby Boom generation – those born between 1946 and 1964
– are retiring from the workforce in growing numbers. Across the nation, they account for
about half of the entire labor market. At Dominion, the figure is about 44 percent.
Given the high percentage of employees becoming eligible for retirement, “people issues”
could have an even greater impact on our sustainability than technology, commodity prices,
or any number of other important concerns.
The bottom-line is this: when experienced employees walk out the door, they take with them
valuable skills, knowledge and expertise that we will have to replace. Failure to stay ahead
of this curve could have serious and far-reaching implications for our productivity,
performance and competitive position.
Our Workforce Planning Model
We are addressing this challenge the way we would any other. We are planning, evaluating
and managing through it proactively. Our workforce planning model provides us with a
roadmap for navigating the maze of workforce issues we face. Its five strategic focus areas
include:
Defining workforce needs
Recruiting quality candidates
Developing and managing talent
Strengthening retention programs and policies
Managing the transfer of knowledge
Following the contours of this model, we have implemented targeted and innovative
approaches to hiring, training and retaining employees, promoting diversity, managing
performance and implementing career development plans.
For example, in the area of recruitment, we are drawing on multiple tools – the Internet,
career fairs, visits to college campuses, career development workshops, corporate image
advertising, scholarships and internships, to name a few – to develop a talent pool for
critical jobs.
Recruitment
Military and veteran recruiting is a special focus area for us. (See details below). We have
long found that veterans possess an admirable work ethic and have many of the skill sets
we seek in our workforce. In 2010, Dominion was recognized by GI Jobs and Military Times
magazines as a national leader in helping veterans find and keep jobs in the civilian
workforce.
Through the Dominion Foundation, our philanthropic arm, we are supporting capital
campaigns and providing scholarship funds to junior colleges and colleges. We target our
giving to the areas of science, technology, engineering and math – fields of study that are
essential to the skills we seek in our current and future workforce.
Dominion also has a very active summer internship and co-op student program that serves
as an important recruitment tool. At the same time, it gives students valuable work
experience and exposure to the inner workings of a major corporation.
Troops to Energy Jobs Initiative
Dominion is a "Top 100 Military Friendly Employer," according to G.I. Jobs magazine. We are
one one of five utility companies nationwide that will partner with the Center for Energy
Workforce Development (CEWD) on a two-year "Troops to Energy Jobs" pilot program to link
future job openings in the energy business with troops leaving active military duty, the
National Guard and Reserve, and all other service veterans.
A 2009 survey by the CEWD estimated that nearly 100,000 openings would occur in the
energy industry by 2015 as engineers, technicians, line workers, plant operators, pipefitters
and others leave energy companies through retirement and normal attrition. As many as
250,000 jobs may open up by the end of the decade.
With the anticipated downsizing of military personnel, together with the normal rate of
military separations and retirements, hundreds of thousands of veterans may be seeking
civilian employment. The pilot program will help identify specific utility personnel needs,
training and educational requirements for former military personnel, as well as ways to
streamline the pathway from military to civilian energy jobs. The "Troops to Energy Jobs" pilot
is expected to begin recruiting veterans by September 2011.
Dominion currently employs more than 1,200 veterans in 14 states. We also have a website
specifically dedicated to recruiting current and former members of the military. The website
offers transition tools and informational videos. We think the "Troops to Energy Jobs"
initiative holds much promise for veterans and Dominion, and we look forward to reporting
on the pilot’s progress in next year’s report.
Related Links
Careers
Military and Veterans
'Troops to Energy Jobs' press release
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Workforce Demographics
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Workforce Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Customer Focus Areas
OUR CUSTOMER FOCUS AREAS
Invest in new energy infrastructure to enhance service reliability
Meet customer expectations by maintaining competitive rates and superior service
Provide customers with tools to conserve energy and manage costs
Expand green energy/conservation programs to benefit the environment
Assist low-income customers with heating and cooling bill payment programs
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Customer Assistance Programs
The weak economy continued to squeeze many of our customers in 2010. As in 2009,
Dominion partnered with social service agencies and the Virginia Employment Commission
to raise public awareness about various energy assistance programs, bill payment options
and weatherization and conservation tools that are available to help our customers manage
their energy use and costs.
To further assist those facing financial hardship, Dominion Virginia Power enacted its “no
disconnect” policy for delinquent customers to help those struggling to pay their winter
electric bills. The company also contributed a total of $4.5 million to its signature
EnergyShare fuel assistance program of last resort, almost 30 percent more than its 2009
donation. Dominion employees donated more than $102,000 to help needy customers in
their communities.
Related Links
EnergyShare
Dominion Virginia Power Energy Assistance Programs
Dominion North Carolina Power Energy Assistance Programs
Dominion East Ohio Energy Assistance Programs
Dominion Hope Energy Assistance Programs
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Service Reliability
Reliable service and responsible rates. Those are the two things our customers repeatedly
tell us they value the most. Our goal is to meet those expectations and deliver outstanding
and affordable service on a consistent basis.
Keeping the Lights On
For our electricity customers, the key performance measure is how well we do at keeping the
lights on. Any time they need power, customers expect it to be available – whether for
lighting, heating and cooling their homes and businesses, operating appliances or heavy
machinery, or relaxing in front of their television sets.
Frequent or long power outages frustrate customers and damage our reputation for quality
service. Outages also drive up our costs, which ultimately results in higher electric bills for
our customers. That is a lose/lose scenario – one that we work hard to avoid.
Although we strive to ensure that our infrastructure is reliable, Mother Nature will
occasionally disrupt electric service during times of high winds, thunderstorms, tornados
and hurricanes. When that happens, our goal is to restore power safely to the greatest
number of customers in the shortest amount of time. Critical facilities, such as hospitals and
emergency centers, are the first to see our line crews and bucket trucks in action.
Measuring Our Performance
The nationally recognized reliability and operational efficiency standard we use to measure
performance in this area – how well we keep the lights on – is the System Average
Interruption Duration Index (SAIDI). The index consists of the sum of all customer service
interruptions by duration divided by the total number of customers served.
Dominion Virginia Power uses three-year SAIDI averages to assess our performance over
time and to smooth out any peaks or valleys that can result from either an extreme number
of severe weather events, or the lack of them, in any given year.
Under this average service interruption index, service reliability has improved significantly in
the past decade. Innovative web-based technologies enable us to communicate outage
information to our customers and to local municipalities to assist with emergency response
efforts. For example, we are now able to provide customers with an estimated service
restoration time within 10 minutes of the onset of a power outage.
For the period 2003-2005, Dominion’s SAIDI average was 132 minutes; for the most recent
three-year period, 2008-2010, it was 114 minutes – a 14 percent improvement. The
following chart shows the average minutes out for our electric customers for the periods
2003-2005, 2006-2008 and 2008-2010:
Maintaining Safe, Reliable Gas Service
On the gas distribution side of our business, service disruptions may result from pipeline
pressure losses and fluctuations in flow rates that signal a gas leak in the system, or from
third-party damage to mains or service lines. When customers call us to report a problem
with their service, it is usually after detecting the odor of mercaptan, a strong-smelling sulfur
compound added to natural gas as an important safety feature.
Our service teams at Dominion East Ohio and at Dominion Hope in West Virginia respond to
customers’ outage-related service requests as quickly as possible. We measure our
emergency response performance in 15-minute increments, from receipt of a service call
request to time of arrival at the customer’s home or business.
In 2010, we achieved a slight improvement in our Emergency Response Rate, handling
about 89 percent of emergency service requests within 45 minutes, up from 87 percent in
2009. Just under 99 percent of these requests were reached successfully within one hour.
In all cases, whether it is electricity or natural gas service, our goal is to get customers back
on line as quickly and as safely as possible while providing them with timely and accurate
information about their service status. Electronic outage management systems pioneered by
Dominion and other technology-based tools support the physically demanding work of our
field crews who re-route gas lines and re-string power lines under potentially hazardous
conditions.
Related Links
Storm Center
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Infrastructure Modernization
To maintain and enhance the reliability of our regulated electric and natural gas systems, we
have embarked on a five-year, $10 billion growth capital spending program that includes the
construction of new power stations, electric transmission and distribution lines in Virginia, as
well as gas transmission and distribution pipelines and gathering systems in
the Marcellus and Utica Shale regions of Ohio, West Virginia, Pennsylvania and New York.
Growing Demand
Expected customer demand growth over the coming decade in our Virginia and North
Carolina electric service area is the principal driver of this investment program.
PJM Interconnection, the grid operator in our region, forecasts that Dominion will need to
add about 4,500 megawatts of new capacity to our system by 2020 – the highest demand
growth in PJM’s 13-state region – enough new capacity to serve an additional 1.1 million
new households.
Power Generation Projects
A little more than one-third of the total cost of our infrastructure modernization plan will go
to new power generation facilities.
Bear Garden, a 580-megawatt gas-fired combined-cycle facility began commercial operation
in May 2011. Other power generation projects we have in development or under
construction in Virginia include:
Virginia City Hybrid Energy Center, a 585-megawatt hybrid coal and renewable
biomass station
A 1,300-megawatt natural gas combined-cycle plant in Warren County, Va.
A 4-megawatt solar photovoltaic and advanced battery storage demonstration project
in Halifax County, Va.
We are also pursuing a federal license to construct and operate a third reactor at our North
Anna Nuclear Station in central Virginia, but we have not yet committed to building the
reactor.
Green Energy Projects
And finally, we are planning to increase our renewable energy portfolio by about 900
megawatts. This green energy is expected to come from new onshore wind farms and coal-
to-biomass conversions. In addition, our Alternative Energy Solutions group is evaluating
potential investments in offshore wind farms along the coast of Virginia.
Electric Delivery Projects
Roughly one-third of our planned $10 billion in growth capital expenditures will go
toward upgrading or adding new transmission and distribution lines, substations and other
facilities to ensure continued strong service reliability for our 2.4 million franchise electric
customers. These electric delivery infrastructure projects are intended to address both
continued population and demand growth in Virginia and North Carolina.
Gas Distribution Projects
The remaining third our planned growth capital expenditures will be used to construct
regulated natural gas pipeline infrastructure to handle the expected increase in production
from the Marcellus and Utica Shale formations, as well as needed upgrades to our gas
distribution network in Ohio and West Virginia.
For example, Dominion East Ohio has agreed with the Public Utilities Commission of Ohio to
increase the company’s investment in its 25-year Pipeline Infrastructure Replacement
Program to $160 million a year by 2013 from $120 million a year in 2011.
Related Links
Powering Virginia
Powering Virginia: Transmission Line Projects
Gas Transmission
Pipeline Infrastructure Replacement Program
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Rates and Regulation
Legislation dating back to the New Deal created a uniquely structured market for gas
utilities and for electric power. About 75 percent of the electricity generated in the U.S. is
supplied by investor-owned utility companies, such as Dominion. The rest comes from a
mixture of municipally owned utilities, rural electrical co-operatives and federal facilities.
On the natural gas side of the business, our regulated interstate transportation and storage
services and part of our liquefied natural gas storage services are provided under rates
approved by the Federal Energy Regulatory Commission (FERC). The company’s gas
distribution services, which are provided to residential, commercial and industrial customers
in Ohio and West Virginia, are offered under rates approved by regulators in those states.
Regulatory Compact
The traditional concept governing this structure is known as the "Regulatory Compact."
This compact – similar to a contract – exists between investor-owned utilities and state
governments, represented by public utility commissions, the FERC and, in some cases, local
governments. In exchange for the obligation to provide service to all customers in a given
territory, investor-owned utilities are granted exclusive rights to serve that territory and
allowed the opportunity to earn a regulated return on their investments. State regulators
have historically set prices at rates that reflect the utility’s cost of providing electricity or
natural gas service to its customers.
In 2010, more than 70 percent of Dominion’s earnings came from our regulated electric and
gas operations, so regulators are a key stakeholder group for our company. We work hard to
engage constructively and communicate regularly with the agencies that oversee our various
businesses.
Our utility and merchant generating fleets are subject to regulation by a number of federal,
state and local bodies. Retail rates for generation and distribution service are set by Virginia
and North Carolina regulatory authorities and state law. Electric transmission operations are
based on rates approved by federal and state authorities.
Virginia Regulatory Model
In our home state of Virginia, we have operated under an innovative, hybrid regulatory model
since 2007. This model balances consumer protections with utility performance incentives
designed to stimulate needed investment in new power generation and infrastructure to
serve the state’s homes and businesses. Prior to enactment of the law that created the new
regulatory framework, Virginia had been importing more power than any state except
California.
Virginia’s regulatory model has four overriding goals:
Affordable and stable electric rates for customers
Shared financial rewards for customers and utilities resulting from operational
efficiencies
Greater reliance on conservation and energy efficiency initiatives, and renewable
energy sources
Construction of new base load power generation, especially clean coal and nuclear
power to support the state’s expected growth
Our Rates
As a result of a March 2010 settlement of our first base rate case under the 2007 law,
Dominion’s electric customers will receive more than $700 million in refunds, or about
$153 in savings for a typical residential customer.
Electric rates for our typical Virginia residential customers are about 15 percent below the
national average and nearly 30 percent below the average on the East Coast.
Highly competitive rates for our commercial and industrial customers help keep operating
costs down and also benefit the state’s economy and growth prospects. As of Jan. 1, 2011,
Dominion’s typical commercial rates were more than 17 percent below the national average
and 27 percent below average on the East Coast. Our typical industrial rate performance
was even better: 32 percent below the national average and 43 percent below the East
Coast average.
As described elsewhere in this report, Dominion has embarked on a major five-year
infrastructure construction program designed specifically to work within Virginia’s regulatory
framework and meet our customers’ future energy needs and the state’s renewable energy
and conservation targets.
Inevitably, as we increase our investments in power stations, environmental controls and
other energy infrastructure to improve system reliability, environmental quality and customer
service, these added costs will eventually lead to higher rates for our customers, subject to
regulatory approval.
Even with any future changes in rates, Dominion will strive to maintain competitively priced
electric service that is below regional and national averages.
Related Links
Rates and Tariffs
The Virginia Energy Plan
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Customer Service and Satisfaction
Customer care is a core responsibility at Dominion. Our focus is on helping customers
manage their energy costs and making it as convenient as possible to do business with us.
New Technologies
One way we do this is to take advantage of new technologies that give customers more
opportunities to understand the value of their energy dollar and make smart choices about
their energy use.
Technology-driven process improvements provide a valuable tool for enhancing the services
we provide customers, while reducing costs at the same time. Our customers tell us they
want more energy information and control in their hands – a key factor in boosting their
satisfaction levels.
We have enhanced the power and allure of the company’s website for the growing number
of customers who prefer to obtain account information, pay their bills or interact with us
online. Dominion’s award-winning energy conservation blog, launched in 2008, is a
trendsetter in the industry and continues to garner accolades throughout the blogosphere.
In addition, our 2009 website re-design was recognized by PR News with a 2010 “Best New
Website Award.”
Dominion Virginia Power's Customer Care Business Service Center has about 40 employees
trained specifically to engage with our commercial customers and provide solutions to their
energy challenges, which range from reliability to rate comparisons to payment options.
Energy Advisor, one of our web-based tools, helps businesses make operational and
purchasing decisions and provides access to energy experts and engineers. And
the Business Energy Calculator on our website also provides helpful tips on ways to reduce
energy usage and costs.
Social media, such as YouTube, Facebook and Twitter, became mainstream customer
communications tools in 2010. We are using these channels to share information that
customers have told us is important to them, such as energy-saving tips, Dominion’s
community involvement, environmental preservation initiatives and storm-related outage
information. Increasingly, we are using social media to engage with our customers to
strengthen our relationships with them and get feedback about our services and their
satisfaction level.
Customer Contact
The explosive growth of social media is impressive, but plenty of customers still rely on the
telephone to communicate with us. Dominion receives about 7 million calls a year. Four
million of them are handled by customer care energy advisors in our Customer Care and
Energy Management Department, and 3 million self-service transactions are completed
through our interactive voice response system. We also respond to about 60,000 customer
emails each year. Regardless of the method, our job is to make sure customers have the
best possible experience when engaging with us.
Two areas targeted by Dominion Virginia Power in 2010 were our call response speed
related to outage calls received during major storms; and our ability to handle multilingual
communications with customers whose native language is something other than English.
Fully half of our customer care energy advisors are now based at home with the equipment
needed to respond to customer inquiries. This allows them to be accessible to customers at
all times and eliminates the need to travel to work during major storms – a plus for safety
and work/life balance. Customer service employees from other departments also have the
means to assist call handling during emergencies.
In 2010, we received about 100,000 foreign language calls, about 95 percent of them from
Spanish-speaking customers. In response, we re-tooled our automated system for in-coming
calls and established a network of Spanish-speaking associates to ensure more thoughtful
and effective service for these customers.
Accessibility and Responsiveness
The key performance measure we use to assess our level of customer call accessibility and
responsiveness is "Average Speed of Answer," or ASA – a recognized performance indicator
in the national call center industry. Innovative voice response technologies and other online
tools have enabled our gas and electric distribution companies to improve our ASA over time
as we strive to balance the costs of offering rapid response with the accessibility our
customers desire.
As with our service reliability measures, we use a rolling three-year ASA to gauge trends in
our levels of customer service. Using the 2003-2005 period as a baseline, the average for
Dominion Virginia Power for 2008-2010 improved by 42 percent, from an ASA of 73
seconds to 42 seconds.
Dominion East Ohio and Dominion Hope, our natural gas distribution units, measure ASA on
an annual basis and have improved the average speed to answer by 49 percent since 2008,
from 98 seconds to 50 seconds in 2010.
Emphasis continues to be placed on maximizing customer convenience any time of day or
night through the company’s "Manage Your Account" online application tools. Customers can
turn service on or off, make payments or payment arrangements, among more than a dozen
account selections. More than 900,000, or about 38 percent, of Dominion Virginia Power’s
customers are taking advantage of this convenient account enrollment option. And more
than 25 percent of Dominion East Ohio and Dominion Hope customers are enrolled in the
program.
Customer Satisfaction Benchmarks
In other well-known customer satisfaction benchmarks, Dominion improved its 2010 score
by 17 points in the annual J.D. Power and Associates Utility Residential Customer
Satisfaction Study. We scored 636 on a 1,000-point scale compared to our 2009 score of
619. We also topped the 2010 national average of 630 for large and mid-sized utilities.
In the American Customer Satisfaction Index, we scored a 75 in 2010, up 3 points from
2009 and 1 point above the national utility average. For comparison purposes, the top-
ranked company in our sector scored an 83 last year.
Our gas transmission pipeline business was ranked 1st in customer value and satisfaction
among its Northeast competitors for the 5th year, according to a 2010 study by consulting
firm Mastio & Co. Nationwide, Dominion Transmission ranked 3rd in customer value and 5th
in customer satisfaction among pipeline companies with at least 3,500 miles of
transmission pipeline and deliveries of at least 1 trillion cubic feet of gas.
Related Links
Dominion Virginia Power Customer Service
Dominion East Ohio Customer Service
Dominion Hope Customer Service
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Dominion Green Power Program
Customer participation in the Dominion
Green Power® program more than doubled in
2010 after a successful launch in 2009. We
created Dominion Green Power® to give our
Virginia customers a practical and
economical way to support the delivery of
renewable energy to the regional power pool.
Virginia customers who enroll in the Dominion Green Power® program direct us to purchase
renewable energy certificates (RECs) on their behalf. These RECs may be purchased from
wind, solar, biomass or low-impact hydroelectric facilities, and the additional cost is added
to the customer’s monthly electric bill.
Participation Options
Customers have two participation options:
1. Purchase RECs equal to 100 percent of their monthly electrical usage for an additional 1.5
cents per kilowatt-hour; or
2. Specify a fixed amount in any $2 increment to purchase RECs.
For a typical residential customer, participation in the 100 percent option for one year can
reduce carbon dioxide emissions by as much as 8.5 tons – the equivalent of taking a car off
the road for 18 months.
Green-e Certification
By the end of 2010, more than 12,000
customers had enrolled in the program, which
achieved Green-e energy certification from the
Center for Resource Solutions in 2009. Green-
e Energy is the nation’s leading independent
consumer protection program for renewable
energy sales.
NC GreenPower
For our 115,000 customers in North Carolina, we support the NC GreenPower initiative,
which allows customers to add voluntary tax-deductible contributions to their electric
bills. These funds are used to promote renewable energy development in the state.
Related Links
VA Green Power®
NC GreenPower
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Energy Conservation and Efficiency Programs
In addition to our Green Power® program, we have ramped up our energy conservation
offerings to partner with customers on ways to manage their energy use more efficiently,
control costs and preserve environmental quality.
At Dominion East Ohio, we committed to invest $9.5 million a year in demand-side
management (DSM) programs for our Ohio customers as part of a 2009 rate case
settlement. Of that annual total, $6.5 million is funding home weatherization programs for
qualified low-income customers, administered by the Cleveland Housing Network.
We also created a DSM Collaborative, comprised of Dominion East Ohio, the Staff of the
Public Utilities Commission of Ohio, consumer advocates and other interested
stakeholders. Based on DSM Collaborative input, we are investing $3 million a year towards
a residential retrofit program called "Home Performance with Energy Star."
Dominion works with Good Cents, an independent service provider, to offer this program,
which features a home energy assessment including a blower door test – and basic
measures such as caulking, weather stripping, door sweeps and air filters – performed by
qualified auditors. Dominion customers pay $50 per audit, which may be credited toward
the cost of audit-recommended efficiency measures, such as furnace replacement, water
heater insulation or replacement, attic and wall insulation, new thermostats, window
replacement and instrumented air sealing.
On the electric side of our business, we received regulatory approval in March 2010 to
launch five voluntary energy efficiency and conservation programs that are expected to save
our customers an estimated $290 million over the next 15 years. These offerings are also
expected to provide significant environmental benefits and help Dominion meet the state of
Virginia’s voluntary 10 percent energy conservation goal by 2022.
Residential Programs
Home Energy Improvement. Eligible customers receive an energy audit, educational
materials and installed energy-efficiency improvements for their home free of charge
Lighting Program. Customers receive an instant, in-store discount on the purchase of energy-
efficient lighting products through major retail outlets
Smart Cooling Rewards. Customers receive a cash incentive to allow Dominion to cycle their
air conditioning system on and off during periods of peak demand
Business Programs
HVAC Rewards. Customers who replace existing electric HVAC systems or install new ones
with higher efficiency ratings receive a rebate from Dominion
Lighting Rewards. Customers who upgrade existing lighting systems or install new ones with
more energy-efficient equipment receive a rebate from Dominion
Related Links
Energy Conservation
Virginia Energy Conservation
North Carolina Energy Conservation
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Smart Grid Applications
"Smart meters" are a key building block of the smart grid, a modernized and digitized power
grid that will enhance the way we deliver electricity to our customers.
Smart meters enable two-way electronic communications between us and our customers,
giving customers more precise control over their energy dollars and helping them become
smarter energy consumers. At the same time, these digital devices enable Dominion to
manage the electric distribution grid more efficiently and reliably.
In 2010, we installed more than 30,000 smart meters and related technology in four
Northern Virginia localities, bringing total installations in Virginia to about 100,000. These
initial installations lay a foundation for more fully understanding the costs and benefits of
smart meter technology as we assess its potential for reducing our customers’ energy usage
and improving grid reliability.
Related Links
Smart Meter Deployment
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Customer Section
Customer Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Focus Areas
OUR COMMUNITY FOCUS AREAS
Help meet essential human needs for food, shelter and warmth
Support community vitality with charitable dollars and volunteer service
Foster educational excellence in science, technology, engineering and math
Promote sustainable economic development and supply chain diversity
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Energy Assistance Programs
The recession that began in earnest in 2008 continued to bring hardship to the
communities we serve in 2010. Unemployment remained high, home foreclosures
continued to grow and many families struggled to pay their energy bills.
In our home state of Virginia, we again partnered with the Virginia Employment Commission,
local employment offices, churches and community centers to sponsor energy assistance
and conservation fairs. These programs were designed to raise public awareness about four
types of available assistance:
Fuel assistance to help eligible households pay their home heating bills
Crisis assistance to help individuals and families in heating emergency situations pay
security deposits and utility bills, repair or replace heating equipment and fuel or find
emergency shelter
Cooling assistance to help pay summer electric bills or buy and/or repair cooling
equipment
Weatherization assistance to help increase household energy efficiency and reduce
air leaks
Requests for help from Dominion’s 29-year-old EnergyShare fuel assistance program rose by
28 percent. In response, the company increased its donation from the previous year by $1
million, for a total contribution of $4.5 million. Dominion employees contributed another
$102,000 to help needy members of their communities.
Fan Care, another Dominion-sponsored fuel assistance program now in its 20th year,
continued to assist elderly Virginia residents in cooling their homes during the summer
months. We teamed up with retail businesses and the Virginia Department of Aging to
provide free fans to eligible seniors who live in our service area. Fan Care is funded by an
annual grant of $50,000 from Dominion and administered by local area agencies on aging.
Related Links
Heating and Cooling Assistance
Online report: www.dom.com/sustainability
http://www.dom.com/dominion-virginia-power/customer-service/your-bill/energy-assistance-programs.jsp
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Philanthropy
Our community outreach and investment program is carried out primarily through
the Dominion Foundation, the company’s philanthropic arm. The Foundation board of
directors consists of Dominion officers and staff members who meet quarterly to review and
set the Foundation’s annual budget, policies, and procedures. The Foundation’s mission is
to improve the social, physical and economic well-being of the communities we serve.
Targeted Grants
We target our grants to qualified 501[c]3 organizations in the states where we have a
significant number of electric and gas customers – primarily Virginia, North Carolina, Ohio
and West Virginia – and to areas in New England, the Midwest and mid-Atlantic where we
have major facilities and business interests.
We view charitable giving as an integral aspect of good corporate citizenship. We look for
opportunities to meet demonstrated community needs that also align with our business
interests. The four areas we target include:
Human needs for food, warmth, energy-efficient shelter and access to basic medical
and health care
Environmental stewardship, protection of natural resources and helping nonprofit
organizations increase their energy efficiency
Education that focuses on increasing awareness of the role of energy in the economy
and helps develop related skill sets for working in tomorrow’s workforce
Community vitality that fosters an appreciation of diversity, stimulates neighborhood
revitalization and promotes vibrant community life through support of cultural
initiatives
Because of the continuing effects of recession, the Foundation has shifted its strategic
focus to respond to growing needs in human services. Additional support has targeted food
and shelter initiatives, fuel funds, conservation and weatherization programs and basic
needs assistance for the frail elderly and other at-risk groups.
$24.1 Million in Charitable Giving
In 2010, the Foundation made grants totaling $14.9 million. An additional $4.5 million
contribution was made to Dominion’s EnergyShare fuel assistance program, and $4.7
million in special events and sponsorship grants were awarded, for a total of $24.1 million in
charitable giving.
2010 Community Grant Highlights
A selection of the grants made by the Foundation in 2010 includes:
$1.1 million in donations to aid the homeless and needy families in 14
states. Working with local human services agencies and organizations, these grants
assisted homeless shelters, safe homes for abused women and programs that
provide housing for low-income families. Many of the grants are being used to make
the shelters or housing units more energy efficient.
For example, a team of Dominion volunteers partnered with Richmond Metropolitan
Habitat for Humanity to renovate a home for a single mother and her son. Energy-
efficient features installed in the home included a solar hot-water system and radiant
heating, high R-value insulation, and energy-efficient appliances and windows.
$1.1 million in environmental grants in honor of the 40th anniversary of Earth
Day. Grants were distributed to about 90 different environmental and conservation
groups in 11 states where we do business. The funds are being used to help protect
endangered species, restore wetlands, preserve forests and educate the public
through various environmental outreach initiatives.
$1 million in grants to support diversity projects in Virginia. Funds went to charitable
organizations in the fields of education, culture, history and health. The largest grants
targeted three educational initiatives of historical significance in our home state, one
involving the Civil War’s impact on race relations and two examining different aspects
of the Civil Rights movement.
Matching Gifts Program
Dominion also has a matching funds program to encourage our employees and retirees to
support eligible nonprofit organizations where they live and work. Eligible gifts are matched
on a dollar-for-dollar basis. To encourage volunteer community service, any employee who
serves on the board of directors of a qualified recipient organization can request a 2-for-1
match of their gift once per calendar year up to $2,500. The company’s Matching Gifts
program became available to part-time employees for the first time in 2010.
All together, Dominion provided more than $1.5 million in matching funds to about 1,500
nonprofit and educational institutions in 47 states and the District of Columbia in 2010.
Community Celebrations
Through small grants and large, we support a diverse array of cultural programs and events
that build community spirit and unity. A sampling of these programs includes:
The annual Dragon Boat Festival in Pittsburgh, Pa., the leading Asian heritage
celebration in the region
The Scottish Heritage Festival in Clarksburg, W. Va.
The Richmond Folk Festival and Dominion RiverRock in our hometown of Richmond,
Va., a 3-day outdoor international music and crafts festival; and a leading outdoor
sports adventure/musical festival along the historic James River
The Hispanic Gala economic development/awards ceremony in partnership with the
Hispanic Chamber of Commerce, Richmond
The Asian New Year celebration in collaboration with the St. Clair-Superior
Development Corp., Cleveland, Ohio
The Community Impact Awards program in Norfolk, Va., recognizing exceptional
community service in the areas of education, environment, health and safety,
regionalism and social justice
United Way Support
Dominion employees and retirees have a long history of joining forces to support their local
United Way, in good times and bad. In 2010, our employees and retirees pledged $2.2
million to the United Way. Their generosity will help provide meals for the elderly, support
mentoring and after-school programs for students, facilitate health care for the needy and
increase aid to homeless families, among other worthwhile causes.
Related Links
Charitable Giving
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Educational Partnerships
Education has long been a strategic focus area of Dominion’s philanthropic program. Over
the past decade, for example, the company has contributed more than $15 million to
support a wide range of K-12 and post-secondary educational programs that target science,
math and other subject areas important in the energy industry.
In 2010, approximately $3 million, or about 20 percent of the Dominion Foundation's
grants, went to the educational area.
$3 Million in Educational Grants
The company’s single largest educational donation in 2010 was made by Dominion New
England and went to the public school system in Salem, Mass., where we have a major
operating facility. The Salem public schools received a $1.2 million grant to create an
endowment to fund science, technology, engineering and math initiatives for students in
grades 1-8.
The city of Salem will use $1 million of the donation to create the endowment fund. Another
$100,000 will go to the Salem Education Foundation, and $100,000 will be used to support
the Salem Cyberspace Center – a community technology learning center dedicated to
expanding academic and career opportunities for the city’s neediest population.
Dominion’s award-winning Project Plant It! partnership with the Arbor Day Foundation and
the educational community expanded in 2010 to include elementary school systems in six
mid-Atlantic and New England states, joining those in Virginia, Connecticut, Massachusetts
and Rhode Island.
Almost 35,000 third-graders planted seedlings equivalent to about 75 acres of new forest
land and learned about the environmental benefits of trees. Dominion provided a $75,000
grant to the Arbor Day Foundation to purchase blue spruce seedlings for the annual progam.
In the five years since Dominion launched Project Plant It!, schoolchildren have planted
more than 100,000 tree seedlings – enough to fill a 250-acre forest.
K-12 Educational Grants Partnership
In 2010, Dominion awarded more than $326,000 in grants to 68 schools in nine states.
That represents about a four percent drop from 2009 in the total amount of grants awarded
but a more than 30 percent increase in the number of schools receiving support.
Grant recipients included:
A high school in Prince Frederick, Md., where students will study pollution using
Geographic Information Systems and perform school-wide energy audits
An inter-district school in New London, Conn., whose students will spearhead a year-
long scientific investigation and analysis of Long Island Sound
A neighborhood association center in Cleveland, Ohio, where urban residents and
students will learn how to protect and maintain a high-quality, healthy water supply
A high school in Chesterfield County, Va., where funds will be used to start a Solar
Energy Club and assist with the purchase of panels, batteries and converters to teach
students about solar energy
Virginia Higher Educational Partnership
We initiated a new, $500,000 competitive grant program in 2010 for accredited institutions
of higher learning in our home state of Virginia – community colleges, colleges, universities,
and vocational, technical or trade schools – aimed at developing workforce skills relevant to
our business.
Dominion Foundation grants of up to $50,000 support programs in business, skilled crafts,
engineering, environmental and technical studies, as well as for student-led energy
conservation programs. Foundation staff works closely with our Human Resources
Department to ensure that these grants align with the company’s future workforce needs.
A sampling of last year’s grant recipients includes:
Thomas Nelson Community College in Hampton received $10,000 to help students
explore wind turbine technology and design
Virginia Highlands Community College in Abingdon was awarded $30,000 to support
a student-run solar energy coffee shop. Students will learn about energy conservation
and alternative energies, as well as how to run a business
Virginia State University in Petersburg received $40,000 for students to perform
energy audits for elderly homeowners with the goal of saving 30 percent on their
heating and cooling costs
Virginia Union University in Richmond will use $40,000 to implement Six Sigma
business management tools to help students define problems, collect and analyze
data and submit solutions
In 2011, Dominion will make $1 million in higher educational grants available to qualified
institutions in 10 states where the company does business.
Employee Mentoring
Dominion volunteers also take an active role in promoting educational excellence and
supporting the needs of students. Many of our employees mentor at-risk youth through
school-sponsored "Lunch Buddies" programs, for example. Others participate in company-
backed programs, such as the "Dominion Engineering Explorer" program.
Now in its fifth year, this program uses recently hired Dominion engineers to demonstrate
engineering principles to Virginia high-school students during hands-on, monthly sessions
during the school year. Using basic materials, students conduct experiments in boat
building, bridge design, aeronautics, tower design and power generator design, among other
things. In addition to engineering principles, they also learn about budgeting, sales and
marketing.
Speakers Bureau
Our Dominion Virginia Power and Dominion North Carolina Power unit also has
an experienced group of employee volunteers specially trained to give free educational
presentations to schools, community groups and civic organizations in Virginia and North
Carolina.
Our speakers offer audiences valuable information on a wide range of subjects, such as
energy conservation, nuclear power, safety and careers at Dominion. In 2010, company
volunteers made about 550 presentations to groups in the two-state area.
Related Links
Dominion Foundation
Educational Programs
Dominion K-12 Educational Partnership
Dominion Higher Educational Partnership
Dominion Speakers Bureau
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Volunteerism
Dominion employees who volunteer in the community set a high standard. They teach us
what it means to look beyond individual job responsibilities to the larger needs of society.
Volunteer Leave Time Policy
The company’s Volunteer Leave Time Policy provides full- and part-time non-union
employees with eight hours of paid time off each year to pursue volunteer activities of their
choosing. This is above and beyond any company-sponsored volunteer projects they may
participate in. Volunteer project hours are recorded in the company’s volunteer database for
documentation purposes.
United Way Recognition
Volunteering is not a spectator sport at Dominion. Our employees mentor at-risk children.
They collect food for earthquake victims. They support women with cancer, victims of
domestic violence and families of children with heart defects. They repair cars in Mexico and
even install solar panels in Uganda. The scope of their service is far-reaching, and their
accomplishments are impressive.
In recognition of our volunteers’ exceptional commitment to improve the communities where
they live and work, United Way Worldwide awarded Dominion a prestigious 2010 "Summit
Award," one of the organization’s highest national honors given to a corporation.
2010: Record-setting Volunteer Service
In 2010 we completed 14 environmental projects in nine states as part of our longstanding
signature volunteer initiative, "Putting Our Energy to Work for the Environment." Volunteers
packed more than 2,000 boxes of supplies to send to our troops overseas (see below). And
we weatherized homes for seniors to help them be more energy efficient. These and many
other projects contributed to a record-setting performance last year: 150,000 hours of
volunteer service to the community.
Other initiatives in which our volunteers participated last year include:
Project Healing Waters, part of the national Wounded Warrior Project, provides
physical and recreational therapy to wounded soldiers by teaching them how to fly
fish
Stuff the Bus, a back-to-school program that helps collect school supplies and
clothing for needy children
Susan G. Komen Race for the Cure, a series of 5K-runs and fitness walks around the
world that raises funds and awareness for the fight against breast cancer
Cove Point Marsh Restoration, a partnership program with the Sierra Club and the
Maryland Conservation Council that engaged Dominion volunteers in helping to
restore a rare freshwater marsh habitat near the company’s Cove Point liquefied
natural gas terminal on the Chesapeake Bay
Employee Recognition
To pay tribute to our volunteers’ outstanding work in the community, we hold an annual
recognition banquet in Virginia and Ohio. Since 1986, more than 280 Dominion employees
have been honored by their peers as "Volunteers of the Year." Each year, 13 employees are
chosen by a panel of community leaders for their exemplary community service. Dominion
makes a financial contribution in the name of the award winners to a charity of their
choosing.
Related Links
Volunteering in the Community
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Support for the Military
Dominion’s Troop Support program began in 2006 when an employee in our Nuclear
division decided she would rally her fellow employees to support America’s troops in Iraq as
a way of celebrating Armed Services Day.
Armed with a vision and a passion to serve, she assembled a group of Dominion volunteers
who set about to raise money for supplies to fill about 500 care packages to send to soldiers
serving in Operation Iraqi Freedom. The initial recipients were members of the 224th AVN
BN of the Air National Guard flying Black Hawk helicopters in hostile airspace above Iraq.
The boxes included everything from deodorant to disposable cameras to pillows; from
powdered beverage mix to canned fruit to chewing gum – anything our volunteers thought
the troops might be homesick for. Dominion employees also wrote letters to send along with
the packages thanking the servicemen and women for their courage and sacrifice.
What started five years ago as a local initiative in Richmond has now spread to Dominion
office locations in 13 states and the District of Columbia.
In 2010, company volunteers mailed more than 2,000 care packages to troops serving in
Iraq and Afghanistan, as well as to the Craig Joint Theater Hospital in Afghanistan.
Sadly, a Dominion employee from the Security Department at the Millstone Power Station in
Connecticut died in May 2010 from injuries suffered during his second tour of duty in
Afghanistan.
Approximately 1,200 company employees, or 8 percent of our workforce, are veterans. For
the past two years, Dominion has been ranked by GI Jobs magazine as one of the nation’s
top 100 employers for ex-military and also was named a top 50 "Best for Vets Employers" by
the Military Times Media Group.
Related Links
Military and Veterans
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Supplier Diversity
One way we make good on our commitment to improve the economic well-being of the
communities we serve is to increase our spending with diverse suppliers. These are
companies that are certified as owned by minorities, women and service-disabled veterans,
as well as those operating in a Historically Under-Utilized Business (HUB) zone.
Our Approach
The companies that provide us with goods and services are important to our sustainability.
Our business is supported by a diverse population, and we believe we have a responsibility
to reciprocate. As a result, we set rigorous annual goals for spending with diverse suppliers,
and we set clear expectations of our procurement teams and business leaders and assign
responsibilities for meeting our goals.
Our approach is to identify diverse suppliers by maintaining active memberships and
partnerships with organizations such as the Virginia Minority Supplier Development Council,
the Metropolitan Business League, the Women Presidents’ Educational Organization, the
Virginia Department of Minority Business Enterprise, the Hispanic Chamber of Commerce
and other local Chambers and advocacy groups in the states where we operate. In many
cases, Dominion employees hold important leadership positions with these organizations.
In all cases, our partnerships with diverse suppliers translate into economic growth and
increased employment opportunities in the communities we serve. The products and
services we receive range from equipment and hardware to construction services and
environmental consulting.
Supplier Diversity Spending
In 2010, our spending with diverse suppliers increased by more than 30 percent, from $239
million to $312 million, despite the economy’s continuing struggles.
Related Links
Suppliers
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Economic Development
We know how important energy costs are for every household and business we serve. We
also know that nothing is more critical to the sustainable success and stability of the
economy than abundant and reliable energy. Our mission is to meet these expectations –
and do so in an environmentally responsible manner.
Sustainable Growth in Virginia
Our home state of Virginia has long enjoyed a reputation as one of the nation’s best places
in which to live and do business. According to the U.S. Census Bureau, the Commonwealth
has experienced double-digit population growth for eight straight decades. And throughout
the prolonged economic recession that began in 2008, Virginia’s unemployment rate has
consistently stayed 2-3 percentage points below the national average.
One of Virginia’s key strengths is a strong partnership between the public and private
sectors – a partnership that is committed to sustainable growth through innovation and
investment.
In 2010, almost 300 companies announced either a new location or an expansion of
existing facilities in the state, resulting in 18,000 new jobs and $2.2 billion in new capital
investment.
Dominion contributed to this expected growth by announcing the opening of its third Virginia-
based customer service center in Martinsville, a city hard hit by job losses in recent
years. The new facility created 250 new jobs, adding value for our customers and the local
economy.
Data Centers
In addition, Dominion’s Economic Development Department supported the location or
expansion of 17 companies in 2010, including Microsoft Corp., which announced
construction of a $499 million advanced data center in Southside Virginia.
Data centers, which are basically warehouses for mainframe servers powering the Internet,
are among Dominion’s largest customers. Their electricity demand is comparable to a big
manufacturing plant, the only difference being the constancy of their load.
At the beginning of 2011, for example, the electric load from these data centers was almost
300 megawatts. We expect that load to grow to 545 megawatts by the end of 2012 and to
rise to 715 megawatts by the end of 2013 – an increase of more than 140 percent in just
three years.
Data centers run 24/7, 365 days a year at full capacity. In Northern Virginia alone, which
handles about half of all the Internet traffic in the U.S., there are more than 40 data centers
in operation, with 20 more planned. Each one consumes about the same amount of power
as 9,000 residential households.
Virginia’s expected strong growth rate over the coming decade can be attributed in part to
these data centers and other high-tech businesses located in the Northern Virginia suburbs
of Washington, D.C.
2010 Economic Development Highlights
Affordable energy is a key factor in attracting and retaining business investment in the state.
As of Jan. 1, 2011, Dominion’s typical commercial rates were more than 17 percent below
the national average and 27 percent below those on the East Coast. Our typical industrial
rates were extremely competitive: 32 percent below the national average and 43 percent
below the East Coast average.
Dominion benefits from forward-looking regulatory policies and legislation that supports our
five-year infrastructure modernization plan. Of the $10.1 billion in growth-related capital
investments we are planning to make by 2015, approximately 75 percent, or $7.4 billion,
will be made in Virginia to keep pace with our customers’ future energy needs.
Other high points on the economic development front in 2010 included:
A solar energy research facility in Halifax County, Virginia. Dominion is partnering with
the county’s Industrial Development Authority, the University of Virginia, and a battery
manufacturer to construct a 4-megawatt integrated solar and advanced energy
storage facility that will be the largest solar project in the state.
The Dominion GreenTech Incubator in central Virginia was founded in 2009 by
Dominion and three partners to provide office space, research assistance, financial
services and business guidance for start-up companies focused on green energy
technologies. In 2010, four client companies populated the Incubator. As they
mature, these and other start-ups are expected to move to nearby locations, boosting
the local economy and helping to create green energy jobs in the region.
Related Links
Economic Development
Dominion Resources GreenTech Incubator
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Focus Areas
OUR ENVIRONMENTAL FOCUS AREAS
Minimize operational impacts on air, land, water and wildlife
Achieve renewable energy and conservation targets:
- 15% renewable power by 2025 (Virginia)
- 12.5% renewable power by 2021 (North Carolina)
- 10% reduction in retail customers’ energy use by 2022 (Virginia)
Support the company’s infrastructure growth plan through environmental permitting
and integration of sustainability into project development
Enhance employee engagement in the company’s sustainability initiatives
Increase sustainability reporting and disclosure
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Environmental Commitment
Dominion makes, moves, manages and markets energy. These activities, as vital as they are
to society, have an undeniable impact on the natural world. Our leading sustainability
challenge is to minimize these environmental impacts while fulfilling our business mission.
Environmental Stewardship
Environmental stewardship is embedded in Dominion’s culture and core values. The
commitment to best practices and proactive engagement in the nation’s environmental
policy debate begins with the company’s senior management team. They set the tone and
the clear expectation that environmental protection is the responsibility of every Dominion
employee. Our business units set environmental goals that ensure compliance with all
relevant environmental laws and regulations. This helps promote commitment to the
continuous environmental performance improvements that we seek.
Addressing Challenges While Meeting Demand
Addressing the challenge of climate change and other environmental concerns, while also
meeting growing long-term energy demand that underlies rising standards of living, calls for
unprecedented levels of public/private collaboration, leadership and technological
innovation. We are committed to working with lawmakers, regulators, industry peers,
community groups and other stakeholders to find sustainable solutions to the energy and
environmental challenges that confront our nation and the global community.
Related Links
Environmental Responsibility
Dominion's Environmental Commitment
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Climate Change
Dominion is fully committed to meeting the carbon challenge responsibly by working for a
sustainable solution that balances the interdependent goals of environmental stewardship
and economic prosperity. The issue is extraordinarily complex and multifaceted. The
decisions we make as a nation about how to control greenhouse gases will directly affect
the cost and reliability of energy. The approach or approaches we adopt will play a major role
in our country’s job and income growth, our standard of living, our foreign policy, and our
ability to compete in global markets.
Our Position
Since 2007, when the climate change debate in Congress began in earnest, Dominion has
supported comprehensive, economy-wide federal legislation that caps greenhouse gas
(GHG) emissions and creates a market for trading emission allowances. We believe that a
legislative approach is the most practical, cost-effective means of achieving greenhouse gas
reductions and controlling the costs that inevitably will be passed on to consumers.
Our preference is for Congress to develop a national climate change policy in conjunction
with a comprehensive national energy strategy that provides for fuel diversity, a reliable
energy supply and affordable electric service for America’s homes and businesses. The
optimal climate change policy would promote the development and deployment of
technology-based solutions that include renewable energy, advanced nuclear power, natural
gas and clean-coal technologies, as well as effective energy efficiency, conservation and
demand-side management programs.
As of mid-2011, Congress had failed to pass a bill reducing greenhouse gases. During past
legislative deliberations on climate change, Dominion actively participated in public
hearings, meetings and other venues with members of the legislative and executive
branches. We intend to remain actively engaged on this important issue going forward.
When policymakers again make climate change a legislative priority, we believe a federal bill
should include the following provisions:
Economy-wide regulation of greenhouse gas emissions
A system of tradable emission allowances
A realistic baseline year and compliance schedule that first slows the growth of
greenhouse gases in the near term, stops them, and then reduces them over the
long term
A realistic baseline year and compliance schedule that is linked with expected
commercial availability of carbon capture and storage technologies
Investment incentives for the development and deployment of carbon capture and
storage and other emerging technologies
A cost-containment mechanism to protect consumers – and the economy – from
drastic rate increases while reducing emissions
Our Strategy
Climate change, more than any other environmental concern, presents us with an
unprecedented long-term challenge with long-term consequences. Our company, as well as
our country, needs an integrated strategy that works both sides of the energy equation –
production and consumption – in order to lay the foundation for a cleaner, more secure
energy future.
Although Dominion has not established a stand-alone GHG emissions reduction target or
timetable, we do have an integrated climate change strategy that has successfully reduced
our CO2 intensity, with further reductions expected in the future.
The cornerstone of Dominion’s strategy is diversification. Its four principal components
include initiatives that address energy management, energy production and energy delivery
as follows:
Enhance conservation and energy efficiency programs to help customers use energy
wisely and reduce environmental impacts
Expand our renewable energy portfolio, principally wind power and biomass, to help
diversify our fleet, meet state renewable energy targets and lower our carbon
footprint
Build other new generating capacity, including emissions-free nuclear, carbon-
capture-compatible clean coal and low-emissions natural gas-fired units to meet our
customers’ future electricity needs
Construct new electric transmission infrastructure to modernize the grid, promote
economic security and help deliver more green energy to population centers where it
is needed most
Improving the efficiency of our existing utility generation fleet has been a strategic focus
over the past several years, allowing us to squeeze more power out of our units while using
roughly to same amount of fuel – and avoiding additional atmospheric emissions – a plus
for our customers and for the environment.
These generating unit upgrades, known as "uprates" in the industry, are achieved by
installing larger, state-of-the-art power turbines or advanced instrumentation devices, for
example, to allow for more efficient and accurate operations. Between 2007 and 2010,
these uprates added about 450 megawatts of additional capacity to our utility fleet. Another
185 megawatts of uprates are either under way or planned for the near future. In total,
these station improvements will give us approximately 635 additional megawatts of cost-
effective capacity to help meet the electricity needs of about 160,000 typical Virginia
households.
Carbon Capture and Storage
Coal is our nation’s most abundant domestic fuel source, accounting for about half of all the
power produced in the U.S. At Dominion, about 40 percent of our total 2010 generating
output came from coal.
Because combusted coal is a leading source of carbon emissions, we believe the ability to
capture these emissions from coal stations and store them underground could prove critical
to the future of coal as a viable energy resource.
To that end, Dominion is supporting a number of research projects designed to
commercialize carbon capture and storage (CCS) technologies. For example, we contributed
$500,000 to the Virginia Center for Coal & Energy Research at Virginia Tech where
scientists are studying carbon dioxide storage in the unmineable coal seams of Central
Appalachia.
Some of the most promising sites for carbon storage are in Virginia’s coalfield region near
the company’s new Virginia City Hybrid Energy Center, which we have designed to
accommodate CCS technology once it is becomes available.
Related Links
Greenhouse Gases and Climate Change
Greenhouse Gas Report
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Renewable Energy
Renewable energy is an increasingly important aspect of Dominion’s diverse generating
portfolio. In the near term, green power could help lower the company’s carbon intensity and
reduce our exposure to unpredictable fuel price swings. Longer term, it is an important
aspect of our climate change strategy and the nation’s transition to a low-carbon economy.
Expanding Our Renewable Assets
Adding renewable resources to our generating portfolio has important advantages:
It potentially reduces our carbon intensity
It diversifies our new-build portfolio, which helps lower our exposure to fuel price
volatility
It positions us to help meet current or future federal and state renewable energy
standards or carbon legislation
Dominion’s renewable assets in Virginia, North Carolina, West Virginia, Indiana and Illinois
include wind, hydro, and wood biomass, as well as a small solar demonstration
project under development in Virginia. When completed and operating at full power, their
combined output is expected to exceed 1,600 megawatts of clean energy – enough to
supply more than 400,000 typical households.
In 2010, hydroelectric power provided almost half (46 percent) of our in-service renewable
energy capacity. Wind power accounted for about 41 percent of the total, with the remaining
13 percent coming from wood biomass.
Solar Power
In June of last year, we announced plans to partner in a 4-megawatt, 50-acre
solar photovoltaic development in Virginia, coupled with a new and advanced battery
storage technology that could store up to 12.5 megawatt-hours of energy.
The company’s Alternative Energy Solutions group and the New Technology team at
Dominion Virginia Power are also evaluating the costs and benefits of a solar distributed
generation program for our electric customers. Distributed generation refers to power that
is generated and used on-site as opposed to power produced at a large, centrally located
facility and transmitted long distances via the power grid to homes and businesses. This
program would consist of utility-owned solar installations on leased roof space, as well as
special pricing incentives to encourage customer-owned solar installations.
Offshore Wind Power
Offshore wind is potentially one of the largest sources of carbon-free, renewable energy in
Virginia. In 2010, the Virginia Offshore Wind Development Authority was created to facilitate
the commercial development of this renewable resource. A Dominion executive was
appointed by Gov. Bob McDonnell to serve on the Authority and assist with policy
development. Dominion is currently assessing the potential of Virginia’s offshore wind
resources and announced an offshore transmission line feasibility study in March 2011.
Biomass
Biomass refers to an assortment of renewable organic materials, such as wood and
agricultural crops, that are readily available and can be burned directly as an energy source.
In April 2011, Dominion announced plans to convert three small coal-burning power stations
to biomass (using mostly wood waste), which, pending regulatory approvals, would add 153
megawatts of renewable energy to our regulated Virginia generating fleet when they are
scheduled to begin operations in 2013. The fuel conversion would result in reduced nitrogen
oxide, sulfur dioxide and particulate emissions.
2010 Renewable Energy Portfolio
In addition to these initiatives, we are evaluating a range of opportunities to expand our
green portfolio in Virginia and other areas in the company’s mid-Atlantic footprint. These
efforts are consistent with our commitment to help Virginia and North Carolina meet
established renewable energy targets – 15 percent by 2025 in Virginia and 12.5 percent by
2021 in North Carolina.
Related Links
Renewable Energy and Green Power
Renewable Generation
News release on Power Station Conversions to Biomass
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Compliance and Disclosure
Dominion’s operations are subject to extensive and evolving federal, state and local
environmental laws, rules and regulations governing such things as air and water quality,
waste management, natural resources and health and safety.
Environmental Compliance
We are committed to full compliance with these legal requirements, which requires
significant spending for permitting, emissions fees, environmental monitoring, installation
and operation of pollution control equipment, purchase of emission allowances and offsets
and any required remediation work.
Our highly trained team of scientists, engineers and environmental specialists work closely
with our operating business units to make sure we are integrating responsible
environmental stewardship with the company’s business goals and strategies. Ultimately,
our CEO and the company’s business unit leaders are responsible for environmental
compliance. The Dominion Board of Directors receives periodic updates on these matters.
In addition to periodic self-assessments, we routinely audit our facilities to ensure
compliance with all relevant environmental rules and regulations. These audits are carried
out independent of our operating or environmental staff to promote objective performance
assessments.
In 2010, our environmental operating and maintenance expenses amounted to $228
million, and capital expenditures for environmental improvements were $351 million. Total
environmental spending was $579 million.
Detailed discussion of the risks associated with Dominion’s environmental compliance,
including potential greenhouse gas regulation, can be found in Dominion’s most recent
quarterly report on Form 10-Q, or annual report on Form 10-K filed with the U.S. Securities
and Exchange Commission.
Dominion’s emissions data and climate change risks and opportunities are described in full
in our 2010 Carbon Disclosure Project (CDP) report. The CDP is an independent, not-for-
profit organization with the largest database on global corporate climate change
information.
In 2011, we participated in the CDP Water Disclosure for the first time to share data and
information about Dominion’s water use and risk management practices.
Proposed EPA Regulations
In addition to existing environmental laws and regulations, the U.S. Environmental Protection
Agency (EPA) has proposed or is planning to propose a number of new and stricter
environmental regulations related to greenhouse gases and other air emissions, coal
combustion byproducts and cooling water intake structures and discharges. We face
challenging compliance windows for these various air, water and waste regulations.
Dominion already has spent or has committed to spend more than $3 billion by 2015 to
improve the environmental performance of our utility and merchant generating fleets. Our
main options for complying with EPA’s new regulations will be to retrofit or retire a number of
our coal units, convert them to other fuel sources (most likely natural gas or
renewable biomass) and add new transmission capacity, or some combination of the three.
As of July 2011, Dominion had announced plans to shut down or convert seven coal
stations. This includes the closing of two major merchant coal stations in Indiana and
Massachusetts and a small utility coal station in West Virginia. The new EPA regulations and
market conditions will make these stations uneconomical to operate. Pending regulatory
approvals, the company’s oldest coal station in Virginia would be converted to natural gas,
and as previously discussed, three other Virginia coal stations would be converted to
biomass, a carbon-neutral renewable energy source.
Related Links
Greenhouse Gases and Climate Change
Emerging Regulations
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Air Quality
Dominion’s environmental investments already have produced significant improvements in
air quality – and more benefits are on the way.
By 2015, Dominion will have made system-wide cuts in acid-rain-producing sulfur dioxide
(SO2) emissions averaging 80 percent. Nitrogen oxide (NO2) emissions, which contribute to
ozone pollution, will have declined by 79 percent; and mercury emissions, which can cause
health problems at high concentrations, will have fallen by 84 percent from 1998 emissions
levels. By 2020, when all of EPA’s new rules will be in effect, we expect even greater
emissions reduction totals – approximately 88 percent for mercury, 85 percent for SO2, and
83 percent for NOx.
Related Links
Air Emissions from Generation
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Carbon Intensity
According to the latest biennial CERES and Natural Resources Defense Council
"Benchmarking Air Emissions" study, which was published in June 2010 using 2008
emissions data, Dominion continued to be among the top third of the nation’s 100 largest
power producers in minimizing carbon intensity.
The CERES analysis found that Dominion produced 1,089 pounds of carbon dioxide (CO2)
per megawatt-hour (mWh) of electric output in 2008 – about 27 percent below the industry
median of 1,489 pounds CO2 per mWh.
In 2010, slightly more than half (56 percent) of Dominion’s total electricity production wass
fossil-fired. The rest was carbon-free nuclear and renewable energy.
Between 2000-2010, we reduced the average CO2 emissions rate per unit of output at our
generation fleet by about 17 percent, while fleet capacity grew significantly. We attribute this
achievement to the balance and diversity of our fuel mix, combined with sustained
productivity improvements at our power stations and a growing reliance on conservation and
efficiency programs. We expect our carbon intensity to continue to decline as the pieces of
our climate change strategy fall into place in the coming years.
Related Links
CO2 Emissions
Natural Resources Defense Council "Benchmarking Air Emissions" Study
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Coal Combustion Byproducts
Coal ash is one of several coal combustion byproducts (CCBs) created when coal is burned
to generate electricity. It has the consistency of fine powder and is captured by air pollution
control equipment at the power station.
Coal Ash Storage
CCBs are typically stored in ash ponds on site, in dry landfills or recycled for reuse in a
variety of commercial applications, such as feedstock in cement and concrete
manufacturing, additives for plastics manufacturing, and specialty paint ingredients.
Dominion’s ash ponds and landfills comply with all local, state and federal environmental
regulations. Professional engineers and other specialists monitor the structural integrity of
our ash impoundments on a regular basis.
2010 CCB Production
In 2010, Dominion’s fossil fleet produced about 2.7 million tons of CCBs. In keeping with
industry norms, about half of Dominion’s CCBs are typically disposed on site, and the
balance is recycled. Approximately 1.4 million tons of coal ash were used in 2010 to replace
higher value, or "beneficially reused" materials offsite.
Coal ash disposal is currently not regulated at the federal level, but the EPA proposed a rule
in 2010 that could change that. A final rule is now expected in 2012.
Related Links
Waste
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Water Use and Conservation
Water use and conservation are significant strategic issues for Dominion. We heat highly
purified and pressurized water in our steam-electric generating units to produce the steam
that spins turbines to generate electricity. Water is also the most common source of cooling
for these units, which use either once-through cooling systems or closed-loop systems to
remove excess heat.
Brayton Point Cooling Tower System
Dominion is constructing a $600 million, twin closed-loop cooling tower system at the
company’s Brayton Point station in Massachusetts, the largest fossil station in New England.
By late 2010, both cooling towers had reached their full height of 500 feet. When the towers
are completed in 2012, the amount of water withdrawn from Mt. Hope Bay is expected to
drop by more than 90 percent, from about 1 billion gallons per day to about 100 million
gallons per day.
Water Sluicing, Sediment Ponds and Scrubbers
Other ways that we use water in our operations include water sluicing processes
(transporting coal ash), water treatment systems (sediment ponds) and air pollution control
equipment (sulfur dioxide scrubbers). Of course, we also use water for drinking and sanitary
purposes at our various facilities.
At two of our fossil stations, one located in Virginia and one in Massachusetts, we have
partnered with local wastewater treatment facilities to reuse their treated waste water rather
than fresh water to supply the scrubbers we use to control sulfur dioxide emissions at the
stations.
As in other areas of our business, we also are successfully making use of the Six
Sigma process improvement methodology in a number of projects to reduce our city water
usage, the water used in our power station systems, and the river water used in the clarified
water systems at various company facilities.
2011 Water Disclosure Reporting
In 2011, we are participating for the first time in the Carbon Disclosure Project’s "Water
Disclosure" reporting process to share data and information about Dominion’s overall water
use and risk management practices.
Related Links
Resource Conservation
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Biodiversity and Habitat Protection
The protection of species and habitats on the lands, rights-of-way and waterways around our
facilities is an integral part of Dominion’s commitment to responsible environmental
stewardship.
Biodiversity Preservation Initiatives
Our many conservation initiatives have helped preserve vital ecosystems by:
Protecting more than 1,000 acres of land in conservation easements
Managing more than 2,000 acres of land for wildlife habitat enhancement
Creating and protecting 46,000 acres of lakes and reservoirs
Creating or restoring about 800 acres of wetlands
Dominion has long been active in a wide range of sustainability projects and programs
whose goal is biodiversity preservation.
For example, our avian and wildlife protection program is widely regarded as one of the
industry’s best. We have received several National Conservation Service Awards from the
U.S. Fish and Wildlife Service for our efforts to protect birds from adverse power line
impacts.
Dominion was one of the original parties of APLIC (Avian Powerline Interaction Committee), a
global leader in providing guidance to utilities on minimizing harm to bird populations. These
guidelines help reduce costly power outages while also providing compliance with laws
protecting birds.
Some other examples of our ecosystem conservation initiatives and partnerships include the
following:
Chesapeake Bay Marsh Restoration Project
Dominion’s Cove Point LNG facility on the western shore of the Chesapeake Bay is
surrounded by 1,000 acres of forested hills, marshland and unspoiled shoreline. The area
includes the 190-acre Cove Point Marsh, a designated Maryland Natural Heritage Area and
the region’s largest freshwater marsh. Home to numerous rare insects, amphibians and 40
endangered marsh plants, this unique marine ecosystem had been threatened by brackish
salt water and tidal actions resulting from a breach in the shoreline after a violent storm in
2006.
In partnership with about 20 regulatory, environmental and community groups, Dominion
engineers and other workers designed and rebuilt barrier walls with 33,000 tons of stone
and hauled in additional tons of sand and other raw materials to reinforce the shoreline and
protect the marshland. In collaboration with Baltimore’s National Aquarium, 400 volunteers
from local schools and the surrounding community planted native grasses to stabilize the
dune structure and habitat.
In May 2011, a second volunteer planting project added native plants to reinforce the buffer
zone between the freshwater marsh and the bay. Dominion worked with the Providence
Center, a nonprofit organization that operates greenhouses staffed by adults with
developmental disabilities to grow the marsh plants.
All together, more than 300,000 plants were planted as part of the marsh restoration
project.
Looking ahead, Dominion plans to partner with area schools and scientists to monitor the
water quality, plants and wildlife to learn how to best manage this type of habitat
restoration.
Wildlife Preservation
Dominion is partnering with the Rocky Mountain Elk Foundation and the Pennsylvania Game
Commission to help create safe havens and grazing areas for the elk and deer, which has
resulted in a tripling of the herds. Since 1995, Dominion also has hosted an annual "elk
tour" for state legislators to showcase the project. The tour is held in conjunction with a
Dominion employee volunteer workday in support of various elk conservation projects in the
area.
Rare Plant Protection
Dominion has collaborated with the Virginia Department of Conservation and
Recreation and the Natural Heritage Department to identify and protect colonies of rare
plants on its various rights-of-way. To date, about 130 sites containing rare plants have been
noted and specific management plans adopted to protect the sites.
Land Conservation
Dominion donated 477 acres of unique ecological habitat called Bear Rocks to The Nature
Conservancy of West Virginia. The land, located adjacent to the Dolly Sods Wilderness Area,
will be used in perpetuity for conservation purposes.
In 2010, the Maryland Legislative Sportsmen’s Foundation named Dominion a "Hero of the
Chesapeake Bay" for its continuing support of regional environmental programs. In
particular, the award recognized the Maryland Artificial Reef Initiative, which is restoring and
enhancing marine ecosystems in the Bay.
Our Partnerships
A partial list of the governmental agencies, environmental groups and other nonprofit
organizations we partner with to conserve natural resources include:
The Nature Conservancy
The National Audubon Society
The Virginia Department of Game and Inland Fisheries
The National Fish and Wildlife Foundation
Trout Unlimited
The Virginia Department of Conservation and Recreation
The Pennsylvania Game Commission
The Maryland Conservation Council
The James River Association
The Corporate Wetlands Restoration Partnership
Related Links
Ecosystem Conservation
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Resource Conservation, Recycling and Waste Management
We strive to minimize the amount of hazardous and non-hazardous waste we create in our
facilities and operations, and to handle and dispose it responsibly in compliance with all
applicable regulations. We also actively seek opportunities to recycle and reuse waste
materials whenever possible.
Investment Recovery
For example, in the Investment Recovery unit of our Supply Chain Management group,
specialists focus on disposing surplus assets in ways that maximize the company’s return on
investment while minimizing the amount of material sent to landfills or incinerators – a plus
for the environment.
In 2010, Investment Recovery was able to recycle close to 20 million pounds of scrap metal
from electric transformers, wire and cable, circuit breakers, motors, pumps, valves and other
surplus equipment. These efforts to recycle and reuse materials returned approximately $10
million to the various business areas that submitted them.
Gas Transmission Recycling
Likewise, at our gas transmission business, the recycling of surplus steel pipes, valves,
flanges and other materials generated more than $1.3 million in cash and more than $3.1
million in additional savings resulting from the reuse of idle surplus assets.
Getting Our Own House in Order
Conserving resources, minimizing waste and improving efficiency reinforces our core values
of ethical and excellent performance. It is the right thing to do and the smart thing to do. We
recycle office paper, wooden pallets and scrap electrical wiring and other
equipment. Employee-initiated projects have created opportunities to collect and recycle
oils, solvents and other liquid substances used in our operations.
In 1994, our Dominion Virginia Power unit became a charter member of the EPA’s
WasteWise program, which promotes recycling and waste prevention at industrial facilities.
Employee volunteer teams for many years have participated in projects to clean up public
highways and parks, recycle plastics and aluminum cans. Through school mentoring
programs, our volunteers teach young people the importance of resource conservation.
We have long shared conservation tips with our customers to help them use less energy and
improve environmental quality. In recent years, we have taken significant steps to make
sure we are walking the conservation talk by getting our own house in order. Many of the
initiatives listed below started as local Six Sigma quality improvement projects and
expanded across the company as they proved successful.
Facilities
Adopted preventive maintenance programs to keep equipment in peak condition and
delay replacements
Installed Energy Management Systems to control lighting and HVAC systems after
hours and reduce overall energy use
Installed solar film on office windows to decrease heat infiltration and increase the
efficiency of air conditioning operations
Constructed LEED-certified “green” administrative building at the Maryland Cove
Point LNG facility (Silver Certification) and at the Dominion Transmission Sabinsville
office building in Pennsylvania (Gold Certification)
Lighting
Retrofitted 2.2 million square feet of building light fixtures with more efficient
models, saving 1,835 kilowatts of electric demand and energy savings of 8,775
megawatt-hours per year
Installed light sensor-activated switches in conference rooms to turn lights on and off
Replaced incandescent lighting in buildings, garages and warehouses with high-
efficiency Light-Emitting Diode (LED) lights and compact fluorescent light bulbs (CFLs)
Recycling and Waste Management
Partnered with green vendors to recycle thousands of used company computers,
monitors and printers to keep them out of public landfills
Created employee “Green Teams” to incorporate an environmental perspective into
all aspects of the business
Formed an internal communications task force to help raise employee awareness
about recycling initiatives and publicize our efforts to the public
Implemented “single stream” recycling of co-mingled glass, papers and plastics at
Dominion East Ohio facilities and at one of the company’s fossil stations for possible
adoption throughout the generating fleet
Implemented recycling of papers, aluminum and plastics at corporate offices in
Richmond
Annual Recycled Materials, 2006-2010
The Greening of Dominion IT
Beginning in 2004, our Information Technology (IT) department started looking for
opportunities to lower our power use and promote greater sustainability in our computing
operations. Over time, a number of isolated green initiatives evolved into four focus areas:
Desktop computers
Data centers
Server environments
Printing needs
Some examples of our green IT initiatives include:
Desktop environments
Implemented power-saving mode for monitors companywide, lowering usage by an
estimated 3.3 million kilowatt-hours
Replaced older CRT type monitors with energy-efficient LCD monitors, saving an
estimated 92,000 kilowatt-hours and eliminating 50 tons of atmospheric carbon
dioxide emissions
Deployed a desktop power management program to turn off idle PCs left on
overnight, resulting in estimated annual electricity savings of 961,000 kilowatt-hours
Implemented a policy requiring all new desktops, laptops and printers to be Energy
Star compliant or certified.
Data centers
Switched to a more energy-efficient technology infrastructure that lowered power,
cooling and space requirements, producing an estimated savings of 1.2 million
kilowatt-hours over the past five years
Redesigned the layout of our main data centers to improve cooling efficiency,
producing an estimate energy savings of 263,000 kilowatt-hours
Eliminated traditional hardware purchases by consolidating and migrating existing
systems to a virtual server environment, creating estimated annual savings of 1.7
million kilowatt-hours
Printing needs
Instituted a LaserJet printer cartridge recycling program, generating $23,000 in
savings and preventing tons of non-biodegradable plastics from landfill disposal
The Dominion IT department also requires any vendors who supply our company to provide
us with details about their own sustainability initiatives. Going forward, we will continue to
look for more accurate and comprehensive metrics about our green IT programs and new
opportunities for sustainable performance improvements.
Related Links
Resource Conservation
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Alternative Vehicles and Fuels
Dominion is an active participant in efforts to develop and deploy alternative vehicle
technologies and fuels as a way of lowering greenhouse gas emissions and reducing our
nation’s dependence on foreign oil.
Passenger vehicles account for about 40 percent of all U.S. oil consumption and almost 20
percent of total greenhouse gas emissions. Fuel economy improvements are widely seen as
the biggest single step that our nation can take – short of a mandatory emissions cap – to
lower greenhouse gas levels.
An Emerging Electric Vehicles Market
Our home state of Virginia is a very active emerging market for electric vehicles (EVs) and is
ahead of many other states in laying the groundwork for their development and use. We
believe the EV market has the potential to grow to 86,000, or 5 percent of all vehicle sales
in Virginia by 2020.
Hybrid Electric Vehicles
Our Dominion Virginia Power unit currently has three Plug-In Hybrid Electric Vehicles (PHEVs)
in its service fleet. We are adding PHEVs to lower our carbon footprint, cut fuel use and test
the value of this clean technology in densely populated Northern Virginia. The PHEVs run off
of a large lithium ion battery pack, with a range of about 40 miles. Once the battery is
depleted, the vehicle operates in standard fuel mode. We expect annual fuel savings in
excess of $900 per vehicle.
We also have two hybrid aerial lift trucks in service in Northern Virginia, where they are used
to work on power lines. Tests have produced fuel savings of up to 60 percent relative to their
diesel-powered counterparts. In addition to the environmental benefits, the hybrid vehicle
technology offers potentially lower maintenance costs, less noise at service calls, and
healthier work conditions for our line crews.
Dominion is partnering in several public/private research initiatives designed to test hybrid
EVs, collect data and evaluate opportunities to incorporate them into our vehicle fleet.
We have teamed up with General Motors and eight other utilities to test the Chevrolet
Volt Extended Range Electric Vehicle and supporting charging infrastructure.
Dominion installed four charging stations in late 2010 in Northern Virginia and has
received three Chevy Volts in 2011. Company employees are driving the Volts as
frequently as possible to facilitate data collection and analysis by GM and the U.S.
Department of Energy.
In October 2010, Dominion and Ford Motor Company announced plans to coordinate
efforts to help prepare Virginia for the operation of EVs. Our two companies will work
together to develop consumer outreach and EV educational programs, as well as
share information on charging needs and requirements to ensure the power grid can
support the necessary electrical demand.
The collaboration between Ford and Dominion also involves working with state and
local governments on the most efficient ways to bring EVs to Virginia. Government
support for infrastructure and a simple charging station permitting process are
thought to be two key prerequisites for EV acceptance in Virginia and across the
country.
EV Pilot Program
In January 2011, Dominion filed an application with Virginia regulators for an EV Pilot
Program. The goal of the pilot program is to collect data on customer adoption of EVs,
battery charging patterns and the effects of EV charging on the power grid. If approved, the
pilot would offer two different voluntary time-of-use pricing options to encourage customers
to charge their EVs at times when electric demand – and costs – are lower (off-peak). Each
of the two off-peak pricing options would be less than half the standard residential rate. Up
to 1,500 customers will be eligible to participate in the pilot program.
Natural Gas Vehicles
Our Dominion Energy unit currently employs more than 300 natural gas vehicles (NGVs),
primarily light- and medium-duty pickup trucks, at 22 locations in Ohio. The compressed
natural gas (CNG) fueling these vehicles displaces the equivalent of 360,000 gallons of
gasoline a year. CNG usage in light-duty pickup trucks typically requires 87 percent less
gasoline than regular, gasoline-fueled light-duty pickup trucks. Over the past decade, we
estimate that our NGV fleet has displaced a total of about 2.4 million gallons of gasoline.
Biofuels
We are committed to reducing our reliance on traditional fuels as a way of lowering our
carbon footprint and supporting renewable energy sources.
We began testing B20 biodiesel fuel in our Dominion Virginia Power fleet in 2007. Since
then, we have used 4 million gallons of B20 at 32 locations in Virginia and North Carolina.
More than 1,000 Dominion service vehicles currently operate on biodiesel fuel every day.
Related Links
Greening Vehicles
Electric/Hybrid Vehicles
Plug-In EVs
"Ford and Dominion Virginia Power Team Up to Prepare Virginia for Electric Vehicles"
press release
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Performance Section
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Business Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Workforce Section
Workforce Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011 Customers Section
Online report: www.dom.com/sustainability
Customer Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011 Customers Section
Online report: www.dom.com/sustainability
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Community Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Environment Section
Performance Highlights
CITIZENSHIP & SUSTAINABILITY REPORT 2010/2011
Performance Section
Summary Data Table, 2006 - 2010
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