Subsidiary VEPCO is vertically integrated and fully regulated. Decision to largely exit the exploration and production business removed considerable business risk from the organization and shows a commitment to credit quality. Future spending is concentrated on the lower-risk utility side of the enterprise. Good access to capital and bank markets. Virginia Power has sizable nonutility generator obligations, the above-market portion of which may be unrecoverable beyond 2010. The higher-risk, unregulated generation portfolio could garner more management attention in the reconfigured company. The ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and supportive regulatory environment for its utilities, combined with much smaller oil and gas exploration and production operations and a portfolio of unregulated power generation
