Exhibit 12.a
Dominion Resources, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(millions of dollars)
Years Ended December, 31 | ||||||||||||||||||||
2014(a) | 2013(b) | 2012(c) | 2011(d) | 2010(e) | ||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||
Income from continuing operations including noncontrolling interests before income tax expense | $ | 1,778 | $ | 2,704 | $ | 2,265 | $ | 2,262 | $ | 5,178 | ||||||||||
Distributed income from unconsolidated investees, less equity in earnings | (8 | ) | 17 | (13 | ) | (23 | ) | (30 | ) | |||||||||||
Fixed charges included in income | 1,237 | 930 | 880 | 867 | 835 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total earnings, as defined | $ | 3,007 | $ | 3,651 | $ | 3,132 | $ | 3,106 | $ | 5,983 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fixed charges, as defined: | ||||||||||||||||||||
Interest charges | $ | 1,208 | $ | 899 | $ | 845 | $ | 818 | $ | 781 | ||||||||||
Rental interest factor | 29 | 31 | 35 | 49 | 54 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fixed charges included in income | 1,237 | 930 | 880 | 867 | 835 | |||||||||||||||
Preference security dividend requirement of consolidated subsidiary | 17 | 25 | 25 | 25 | 28 | |||||||||||||||
Capitalized Interest | 39 | 28 | 24 | 11 | 11 | |||||||||||||||
Interest from discontinued operations | 0 | 85 | 80 | 99 | 94 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fixed charges, as defined | $ | 1,293 | $ | 1,068 | $ | 1,009 | $ | 1,002 | $ | 968 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratio of Earnings to Fixed Charges | 2.33 | 3.42 | 3.10 | 3.10 | 6.18 |
(a) | Earnings for the twelve months ended December 31, 2014 include $374 million charge related to North Anna and offshore wind facilities; $284 million charge associated with our liability management effort, which is included in fixed charges; $121 million accrued charge associated with future ash pond closure costs; $93 million charge related to other items; partially offset by $100 million net gain on the sale of our electric retail energy marketing business and $72 million of net gain related to our investments in nuclear decommissioning trust funds. Excluding the 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, 2014. |
(b) | Earnings for the twelve months ended December 31, 2013 include a $55 million impairment charge related to certain natural gas infrastructure assets; $40 million charge in connection with the Virginia Commission’s final ruling associated with its biennial review of Virginia Power’s base rates for 2011-2012 test years; $28 million charge associated with our operating expense reduction initiative, primarily reflecting severance pay and other employee related costs; $26 million charge related to the expected early shutdown of certain coal-fired generating units; $29 million charge related to other items ; partially offset by $81 million of net gain related to our investments in nuclear decommissioning trust funds; $47 million benefit due to a downward revision in the nuclear decommissioning asset retirement obligations for certain merchant nuclear units that are no longer in service; $29 million net benefit primarily resulting from the sale of Elwood. 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, 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. |