Summary
Dominion Energy, Inc. (D) filed an 8-K on February 14, 2011, to report a change in its financial results due to a Virginia State Corporation Commission ruling. The Commission denied a motion to defer a biennial rate review by one year for Dominion Virginia Power. Consequently, Dominion reversed a previously recorded reserve for potential rate credits, which was contingent on the approval of that motion. This reversal resulted in a non-operating earnings increase of $48 million, or $0.08 per share, for the fourth quarter and full year of 2010. It's important for investors to note that this adjustment impacts reported GAAP earnings but does not affect the company's operating earnings, which were previously reported on January 28, 2011. The company will provide updated financial information on its investor relations website.
Key Highlights
- 1Virginia State Corporation Commission denied Dominion Virginia Power's request to defer a biennial rate review by one year.
- 2Dominion reversed a $48 million reserve for potential rate credits previously established in anticipation of the rate review deferral.
- 3The reversal will increase reported (GAAP) earnings by $0.08 per share for Q4 and full-year 2010.
- 4This adjustment impacts reported GAAP earnings but does not affect Dominion's previously reported operating earnings for 2010.
- 5Reported GAAP earnings for the 12 months ended December 31, 2010, increased to $2.81 billion ($4.76 per share) from $1.94 billion ($2.17 per share) in 2009, including this adjustment.
- 6Dominion will publish revised financial materials including a Revised 4Q10 Earnings Release Kit and supplemental schedules on its investor relations website.