The ratings on Dominion Resources Inc. reflect its utility subsidiaries' cash flow stability and supportive regulatory environment, 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, which it actively manages by hedging its exposure and therefore has limited upside relative to its exploration&production (E&P) peers. The company's business risk profile is considered weak (a '7' on a 10-point scale, where '1' is low risk) and its financial profile is weak for the rating. Subsidiary Virginia Electric&Power Co., which provides about 40% of operating cash flow, has an average business risk profile relative to its
