Standard&Poor's Ratings Services' ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and supportive regulatory environment for its utilities, its much smaller upstream and 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" (as our criteria define those terms). Dominion's sale 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 regulated segments solidified its improved business risk position. Regulated activities
