Exhibit 12.1
Dominion Resources, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(millions of dollars)
| Years Ended December, 31 | ||||||||||||||||||||||||||||
| Three Months Ended March 31, 2013(a) | Twelve Months Ended March 31, 2013(b) | 2012(c)* | 2011(d)* | 2010(e)* | 2009(f)* | 2008(g)* | ||||||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||||||
Income from continuing operations including noncontrolling interest before income tax expense | $ | 789 | $ | 2,274 | $ | 2,265 | $ | 2,262 | $ | 5,178 | $ | 1,936 | $ | 2,250 | ||||||||||||||
Distributed income from unconsolidated investees, less equity in earnings | (2 | ) | (9 | ) | (13 | ) | (23 | ) | (30 | ) | (30 | ) | (39 | ) | ||||||||||||||
Fixed charges included in income | 242 | 895 | 880 | 867 | 835 | 892 | 843 | |||||||||||||||||||||
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Total earnings, as defined | $ | 1,029 | $ | 3,160 | $ | 3,132 | $ | 3,106 | $ | 5,983 | $ | 2,798 | $ | 3,054 | ||||||||||||||
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Fixed charges, as defined: | ||||||||||||||||||||||||||||
Interest charges | $ | 233 | $ | 860 | $ | 845 | $ | 818 | $ | 781 | $ | 838 | $ | 792 | ||||||||||||||
Rental interest factor | 9 | 35 | 35 | 49 | 54 | 54 | 51 | |||||||||||||||||||||
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Fixed charges included in income | 242 | 895 | 880 | 867 | 835 | 892 | 843 | |||||||||||||||||||||
Preference security dividend requirement of consolidated subsidiary | 7 | 26 | 25 | 25 | 28 | 25 | 26 | |||||||||||||||||||||
Capitalized Interest | 8 | 28 | 24 | 11 | 11 | 13 | 43 | |||||||||||||||||||||
Interest from discontinued operations | 9 | 68 | 80 | 99 | 94 | 96 | 84 | |||||||||||||||||||||
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Total fixed charges, as defined | $ | 266 | $ | 1,017 | $ | 1,009 | $ | 1,002 | $ | 968 | $ | 1,026 | $ | 996 | ||||||||||||||
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Ratio of Earnings to Fixed Charges | 3.87 | 3.11 | 3.10 | 3.10 | 6.18 | 2.73 | 3.07 | |||||||||||||||||||||
| * | Recast to reflect Brayton Point and Kincaid power stations as discontinued operations. |
| (a) | Earnings for the three months ended March 31, 2013 include a $44 million net gain related to our investments in nuclear decommissioning trust funds partially offset by $17 million in other charges related to the shut-down of our Kewaunee nuclear power station (“Kewaunee”). Excluding the net effect of these items from the calculation would result in a lower ratio of earnings to fixed charges for the three months ended March 31, 2013. |
| (b) | Earnings for the twelve months ended March 31, 2013 include $421 million of impairment and other charges related to the planned shut-down of Kewaunee; $87 million of restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina service territories; partially offset by a $10 million net benefit related to other items. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended March 31, 2013. |
| (c) | Earnings for the twelve months ended December 31, 2012 include $438 million of impairment and other charges related the planned shut-down of Kewaunee; $87 million of restoration costs associated with severe storms affecting our Dominion Virginia Power and Dominion North Carolina service territories; partially offset by a $36 million net gain related to our investments in nuclear decommissioning trust funds and $4 million net benefit related to other items. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2012. |
| (d) | Earnings for the twelve months ended December 31, 2011 include $228 million of impairment charges related to electric utility generation assets; $96 million of restoration costs associated with Hurricane Irene; $43 million impairment of excess emission allowances resulting from a new EPA Air Pollution Rule; $31 million net charge in connection with the Virginia State Corporation Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2009 and 2010 test years; $21 million of earthquake related costs, largely related to inspections following the safe shutdown of reactors at our North Anna nuclear power station; and a $45 million net charge related to other items; partially offset by a $24 million benefit related to litigation with the Department of Energy for spent nuclear fuel-related costs at our Millstone nuclear power station. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2011. |
| (e) | Earnings for the twelve months ended December 31, 2010 include a $2.4 billion benefit resulting from the sale of our Appalachian exploration and production (“E&P”) operations—primarily reflecting the gain on the sale partially offset by certain transaction costs and other related charges. Earnings for the period also include a $326 million charge related to the workforce reduction program primarily reflecting severance pay and other benefits to affected employees and $1 million net charge related to other items. Excluding the net effect of these items from the calculation would result in a lower ratio of earnings to fixed charges for the twelve months ended December 31, 2010. |
| (f) | Earnings for the twelve months ended December 31, 2009 include a $712 million charge for a partial refund of 2008 earnings and other amounts in connection with the settlement of Virginia Power’s 2009 rate case proceeding; a $455 million impairment charge as a result of the quarterly ceiling test performed on our gas and oil properties under the full cost method of accounting; a $31 million impairment charge related to an equity method investment; and a $10 million net charge related to other items. Earnings for the period also include a $103 million reduction in other operation and maintenance expense due to a downward revision in the nuclear decommissioning asset retirement obligation for a power station that is no longer in service. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2009. |
| (g) | Earnings for the twelve months ended December 31, 2008 include $180 million of impairment charges reflecting other-than-temporary declines in the fair value of securities held in nuclear decommissioning trust funds; $59 million of impairment charges related to Dominion Capital, Inc. assets; a $42 million reduction in the gain recognized in 2007 from the sale of the majority of our U.S. E&P businesses as a result of post-closing adjustments; and a $30 million net charge related to other items. Excluding the net effect of these items from the calculation would result in a higher ratio of earnings to fixed charges for the twelve months ended December 31, 2008. |