DOMINION ENERGY, INC Annual Report, Year Ended Dec 31, 2013

Dominion Energy, Inc. (Dominion) reported a significant increase in net income attributable to Dominion for the fiscal year ended December 31, 2013, driven primarily by the absence of substantial impairment charges and losses from discontinued operations that impacted the prior year. The company continues to strategically shift its earnings mix towards regulated and long-term contracted businesses, with a target of 80-90% of future earnings from these segments. Dominion Generation's performance was stable, while Dominion Energy saw growth, particularly in regulated natural gas transmission and distribution. The DVP segment also showed growth, supported by increased electric sales and rate adjustments. Financially, Dominion demonstrated a strong liquidity position, with ample unused capacity under its credit facilities. The company also affirmed its commitment to returning capital to shareholders by maintaining its dividend policy and increasing the annual dividend rate for 2014. Capital expenditures remain focused on regulated infrastructure growth in both electric and gas segments, including significant investments in new generation capacity and pipeline upgrades. The company is also advancing its Cove Point LNG export project, subject to regulatory approvals. Risks highlighted in the filing include the impact of weather on energy sales and prices, complex government regulations, potential changes in wholesale market designs by FERC, and the execution risks associated with large construction projects. Environmental compliance costs and potential regulations related to climate change also pose ongoing considerations. The company also noted its dependence on third-party natural gas producers for its gathering and processing operations.