The ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and favorable regulatory environment at its utility subsidiaries combined with riskier oil and gas exploration operations and a growing portfolio of unregulated power generation. In nearly all of its businesses, Dominion faces a high level of commodity price risk. Standard&Poor's views the company's recently announced slower pace of acquisitions as a temporary lull in a sustained aggressive growth strategy. The company's financial profile is weak for the rating, although it is expected to strengthen in 2005. Richmond, Va.-based Dominion had about $19 billion of debt (including hybrids and imputed debt equivalents) as of Dec 31, 2004. Virginia Electric&Power Co., which provides about
