The ratings on Dominion Resources Inc. reflect the relative cash flow stability and supportive regulatory environment for its utilities, combined with riskier oil and gas exploration and production (E&P) operations and a growing portfolio of unregulated power generation. The ratings also reflect the company's announcement that it proposes to sell a majority of its higher-risk E&P assets. Credit strengths are offset by fuel factor losses at Virginia Electric&Power Co. (Virginia Power; BBB/Positive/A-2) and interruptions in production at Dominion Exploration&Production Inc. (unrated), which have caused deterioration in Dominion's financial performance during the past 18 months, and continuing negative free cash generation. Richmond, Va.-based Dominion had about $18.7 billion of debt, including off-balance-sheet obligations, as of Sept. 30,
