Dominion's business profile reflects a large portion of regulated and quasi-regulated generation, transmission, and distribution operations in prime markets. Virginia Electric&Power Co. benefits from a constructive regulatory environment and a measured deregulation process. The utility has an economically healthy service area with high per capita income levels that are about 105% of U.S averages, and strong population (1.5%) and employment growth. Competition in Virginia Power's service territory has been minimal. Dominion has efficient E&P operations with a cost performance that is better than its peer group; most of Dominion's E&P assets are part of the CNG legal entity. A large proportion of oil and gas production is hedged forward, which provides price stability. Strong financial flexibility and access
