Standard&Poor's Ratings Services' ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and effective regulatory risk management for its utilities, its smaller but growing midstream natural gas operations, and a substantial portfolio of unregulated power generation assets. Dominion faces commodity price and operational risks in its unregulated operations that require extensive risk management. The company's business risk profile is "excellent" and its financial risk profile is "significant" under our criteria. Dominion's sales of its exploration and production assets, the reregulation in Virginia of its main utility, Virginia Electric&Power Co. (VEPCO), and the company's plans to invest predominantly in its lower-risk segments have solidified its improved business risk position. Regulated activities constitute about
