Exhibit 12
Dominion Resources Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(millions of dollars)
Years Ended
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12 Months
Ended 2002 2001 (b) 2000 (c) 1999 1998
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June 30,
2003 (a)
Earnings, as defined:
Earnings before income taxes and
minority interests in consolidated
subsidiaries $ 2,091 $ 2,043 $ 914 $ 600 $ 829 $ 887
Distributed income from
unconsolidated investees, less equity
in earnings 17 24 33 6
Fixed charges included in the
determination of net income 987 975 1,026 1,042 583 656
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Total earnings, as defined $ 3,095 $ 3,042 $ 1,973 $ 1,648 $ 1,412 $ 1,543
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Fixed charges, as defined:
Interest charges $ 1,062 $ 1,051 $ 1,063 $ 1,039 $ 592 $ 670
Rental interest factor 31 27 19 18 8 6
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Total fixed charges, as defined $ 1,093 $ 1,078 $ 1,082 $ 1,057 $ 600 $ 676
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Ratio of Earnings to Fixed Charges 2.83 2.82 1.82 1.56 2.35 2.28
(a) Earnings for the twelve months ended June 30, 2003 include a $13 million
write-down of Dominion Capital, Inc. assets, $21 million for severance costs
related to workforce reductions, a $39 million impairment of certain assets held
for sale, and $101 million related to the cost of refinancings and impairments
at Dominion Fiber Ventures, LLC. Excluding these items from the calculation
would result in a higher ratio of earnings to fixed charges for the twelve
months ended March 31, 2003.
(b) Earnings for the twelve months ended December 31, 2001 include $220 million
related to the cost of the buyout of power purchase contracts and non-utility
generating plants previously serving the company under long-term contracts, a
$40 million loss associated with the divestiture of Saxon Capital Inc., a $281
million write-down of Dominion Capital, Inc. assets, $151 million charge
associated with Dominion's estimated Enron-related exposure, and $105 million
associated with a senior management restructuring initiative and related costs.
Excluding these items from the calculation above would result in a higher ratio
of earnings to fixed charges for the twelve months ended December 31, 2001.
(c) Earnings for the twelve months ended December 31, 2000 include $579 million
in restructuring and other acquisition-related costs resulting from the CNG
acquisition and a write-down at Dominion Capital, Inc. Excluding these items
from the calculation above would result in a higher ratio of earnings to fixed
charges for the twelve months ended December 31, 2000.