UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58 OF
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
For the Calendar Quarter Ended September 30, 2004
Dominion Resources, Inc.
Consolidated Natural Gas Company
120 Tredegar Street
Richmond, Virginia 23219
(Address of principal executive offices)
Table of Contents
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Page |
Item 1. |
2 |
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Item 2. |
Issuances and Renewals of Securities and Capital Contributions |
7 |
Item 3. |
9 |
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Item 4. |
13 |
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Item 5. |
14 |
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Item 6. |
14 |
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Page 2
ITEM 1 - ORGANIZATION CHART
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% of Voting Securities Held |
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Dominion Resources, Inc. ("DRI")(a) |
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Dominion Alliance Holding, Inc. ("DAH") |
Energy Related |
11/2000 |
Delaware |
100% |
Held an investment in Bridgeco for the purpose of developing the infrastructure necessary to operate the Alliance regional transmission organization. |
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Dominion Energy Technologies, Inc. ("DETI") |
Energy Related |
4/2001 |
Virginia |
100% |
Holds venture investments in energy technology companies. |
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Dominion Ohio ES, Inc. ("DOES") |
Energy Related |
5/2001 |
Ohio |
100% |
Provides engineering, construction and other services. |
Dominion Technical Solutions, Inc. ("DTECH") |
Energy Related |
4/2002 |
Virginia |
100% |
Provides engineering, construction and other services. |
Page 3
ITEM 1 - ORGANIZATION CHART (CONTINUED)
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% of |
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Dominion Resources, Inc. ("DRI") (a) |
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Dominion Energy, Inc. ("DEI") (a) |
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Dominion Cleveland Thermal, Inc. ("DCT") |
Energy Related |
10/2000 |
Ohio |
100% |
Produces steam and chilled water for retail customers in the Cleveland, Ohio area. |
Dominion Energy Marketing, Inc. ("DEMI") |
Energy Related |
9/2000 |
Delaware |
100% |
Engages in the sale of energy on a portfolio basis. |
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Dominion Wagram, Inc. ("Wagram") |
Energy Related |
12/2001 |
North Carolina |
100% |
Holds contracts pertaining to a steam plant facility in Wagram, NC that serves Westpoint Stevens. |
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Dominion Energy Terminal Company, Inc. ("DETC") |
Energy Related |
2/2003 |
Virginia |
100% |
Holder of 20% general partnership interest in Dominion Terminal Associates. Primarily engages in coal terminal services. |
Page 4
ITEM 1 - ORGANIZATION CHART (CONTINUED)
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% of |
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Dominion Resources, Inc. ("DRI")(a) |
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Dominion Energy, Inc. ("DEI")(a) |
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Dominion Storage, Inc. ("DSI")(a) |
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Dominion Energy Canada Limited ("DECL")(a) |
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Dominion Energy Clearinghouse Canada, Inc. ("DECCI") |
Energy Related |
11/2002 |
Alberta, Canada |
100% |
Trading, hedging and marketing of production for Canadian operations. |
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Dominion Nuclear Projects, Inc. ("DNPI") |
Energy Related |
8/2003 |
Virginia |
100% |
Manage development of new nuclear generation facilities. |
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Dominion Energy Kewaunee, Inc. ("DEK") (new) |
Energy Related |
10/2003 |
Virginia |
100% |
Proposed owner of Kewaunee nuclear power plant |
Page 5
ITEM 1 - ORGANIZATION CHART (CONTINUED)
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% of Voting Securities Held |
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Dominion Resources, Inc. ("DRI")(a) |
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Consolidated Natural Gas |
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Dominion Field Services, Inc. ("Field Services") |
Gas Related |
3/1977 |
Delaware |
100% |
Engages in activities involving Appalachian natural gas supply, including gathering and administration of supply contracts. |
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Dominion Iroquois, Inc. (a) |
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Iroquois Gas Transmission System, L.P. ("Iroquois") |
Gas Related |
12/1989 |
Delaware Partnership |
24.72% |
Owns and operates an interstate natural gas pipeline that transports Canadian gas to utilities and power generators in New York and New England. |
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Dominion Greenbrier, Inc. ("Greenbrier") |
Gas Related |
11/2000 |
Virginia |
100% |
Owns 100% of Greenbrier Pipeline Company, LLC. (b) |
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Dominion Oklahoma Texas Exploration & Production, Inc. ("DOTEPI") |
Gas Related |
9/2001 |
Delaware |
100% |
Engages in natural gas and oil exploration and production. |
Page 6
ITEM 1 - ORGANIZATION CHART (CONTINUED)
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% of Voting Securities Held |
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Dominion Resources, Inc. ("DRI")(a) |
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Consolidated Natural Gas |
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Dominion Natural Gas Storage, Inc. ("DNGS") |
Gas Related |
11/2001 |
Delaware |
100% |
Owns gas storage facilities, a brine pipeline and a gas interconnect pipeline. |
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Dominion Cove Point, Inc. ("Cove Point") |
Gas Related |
8/2002 |
Virginia |
100% |
Indirectly owns Dominion Cove Point LNG, LP, a liquefied natural gas import facility. |
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Dominion Transmission, Inc. ("DTI") (a) |
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Tioga Properties, LLC ("Tioga") |
Gas Related |
6/2002 |
Delaware |
100% |
Owns a developmental underground natural gas storage system. |
(a)
Directly or indirectly holds interests in energy-related or gas-related companies.(b)
Greenbrier Pipeline Company, LLC plans to develop, construct and own a pipeline to meet increased demand for natural gas in the Appalachian and Piedmont regions.(c)
Not used.
ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS (d) (e)
Company issuing security (Borrower) |
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Person to whom issued |
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Cove Point |
Short Term Note |
$ 4,336,000 |
- |
- |
DRI |
- |
- |
Tioga |
Short Term Note |
80,000 |
- |
- |
DRI |
- |
- |
Company |
Company |
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none |
None |
(d)
The chart reflects net advances made by Lenders to Borrowers during the third quarter of 2004. Advances are evidenced by book entries and were made pursuant to Rule 52. See also the Form U6B-2 filed as Exhibit B to the Dominion Resources, Inc. Rule 24 Certificate for the period ending September 30, 2004.
Page 8
ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS (continued)
(e)
All of the following DRI Money Pool activity occurred from July through September 2004 for the participating energy-related and gas-related companies included in this U-9C-3.DRI Money Pool
(In Thousands)
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Beginning |
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Ending |
Field Services |
$45,015 |
$158,159 |
$153,327 |
$40,183 |
Dominion Iroquois, Inc. |
(1,632) |
23 |
-- |
(1,655) |
Greenbrier |
(28,499) |
157 |
-- |
(28,656) |
DOTEPI |
(117,854) |
423,209 |
128,062 |
(413,001) |
DNGS |
(19,518) |
132 |
-- |
(19,650) |
DAH |
(6,736) |
28 |
-- |
(6,764) |
Additionally, as of September 30, 2004 there remained outstanding the following guarantees and letters of credit.
Guarantees
(In Thousands)
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Field Services |
CNG |
$223,100 |
DOTEPI |
CNG |
259,000 |
DNGS |
CNG |
265 |
DEMI |
DRI |
633,750 |
DECCI |
DRI |
205,700 |
DETC |
DRI |
26,560 |
Page 9
ITEM 3 - ASSOCIATE TRANSACTIONS
Part I - Transactions Performed by Reporting Companies on Behalf of Associate Companies (f)
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Types of Services Rendered |
Direct |
Indirect |
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Total |
DTECH |
Fairless Energy, LLC (g) |
Engineering Services |
$38,626 |
-- |
-- |
$38,626 |
DTECH |
Kincaid Generation, LLC (h) |
Engineering Services |
$19,448 |
-- |
-- |
$19,448 |
Field Services |
Dominion Transmission, Inc. (l) |
Rental fees |
$5,418,627 |
-- |
-- |
$5,418,627 |
Field Services |
Dominion Exploration & Production, Inc. (m) |
Fuel Management Services |
$80,421 |
-- |
-- |
$80,421 |
Field Services |
Dominion Appalachian Development, Inc. (n) |
Fuel Management Services |
$9,028 |
-- |
-- |
$9,028 |
Dominion Cove Point LNG, LP |
Dominion Transmission, Inc. (o) |
Engineering & Legal Services |
$73,069 |
-- |
-- |
$73,069 |
(f)
As per Rules 80 and 81, natural gas supply, storage or transportation capacity transactions are not reported hereunder. Services provided by or to Dominion Resources Services, Inc. ("DRS") are billed pursuant to standard at-cost service agreements between DRS and Dominion Resources, Inc. subsidiaries. Information with respect to transactions under such agreements is not provided in this report, but is provided by Form U-13-60.(g)
Services provided by DTECH to Dresden Energy, LLC and Dominion Equipment III, Inc. as agent for Fairless Energy, LLC are provided pursuant to service agreements dated August 1, 2002 in the form of Exhibits D and E respectively, to the DRI Form U-9C-3 filed for the third quarter of 2002.
Page 10
ITEM 3 - ASSOCIATE TRANSACTIONS (continued)
(h)
Services provided by DTECH to Kincaid Generation, LLC are provided pursuant to a service agreement dated June 1, 2004 in the form of Exhibit C attached hereto.(i)
Not used.(j)
Not used.(k)
Not used.(l)
Services provided by Field Services to DTI are provided pursuant to a service agreement dated April 23, 2001 in the form of Exhibit A(e) to the CNG Form U-9C-3 filed for the second calendar quarter of 2002.(m)
Services provided at cost.(n)
Services provided by Field Services to Dominion Appalachian Development, Inc. are provided pursuant to a service agreement dated May 1, 2002 in the form of Exhibit A(g) to the CNG Form U-9C-3 filed for the second calendar quarter of 2002.(o)
Services provided by Dominion Cove Point LNG, LP to DTI are provided pursuant to service agreements dated January 1, 2004 in the form of Exhibit B to the DRI Form U-9C-3 filed for the first quarter of 2004.
Page 11
ITEM 3 - ASSOCIATE TRANSACTIONS (continued)
Part II - Transactions Performed by Associate Companies on Behalf of Reporting Companies (f)
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Direct |
Indirect |
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Total |
The East Ohio Gas Company |
Field Services (p) |
Maintenance, Rebuild &Other Technical Services |
$76,203 |
$9,275 |
-- |
$84,478 |
DTI |
Field Services (q) |
Operations & Maintenance Services |
$89,549 |
$(2,115) |
-- |
$87,434 |
DTI |
Greenbrier (r) |
Administration, Engineering, Operations & Maintenance Services |
$(979) |
$(5) |
-- |
$(984) |
DTI |
DNGS (s) |
Administration, Engineering, Operations & Maintenance Services |
$2,926 |
$92 |
-- |
$3,018 |
DTI |
Dominion Cove Point LNG, LP (t) |
Engineering, Operations & Maintenance Services |
$926,634 |
$144,215 |
-- |
$1,070,849 |
DTI |
Tioga (u) |
Administration, Engineering, Operations, Accounting, Marketing & Storage Services |
$81,787 |
$1,942 |
-- |
$83,729 |
Dominion Exploration & Production, Inc. |
DOTEPI (v) |
Operations & Maintenance of Gas Properties |
$8,912,835 |
-- |
-- |
$8,912,835 |
Dominion Exploration & Production, Inc. |
Stonewater Pipeline Company, LP (w) |
Operations & Maintenance of Gas Properties |
$55,893 |
-- |
-- |
$55,893 |
Virginia Power Energy Marketing, Inc. |
DETC (x) |
Business Operations Support |
$26,987 |
-- |
-- |
$26,987 |
(p)
Services provided by The East Ohio Gas Company to Field Services are provided pursuant to an agreement dated August 1, 2004 in the form of Exhibit D to the DRI Form U-9C-3.(q)
Services provided by DTI to Field Services are provided pursuant to agreements in the form of Exhibit A(i) to the CNG Form U-9C-3 filed for the second calendar quarter of 2002.(r)
Services provided by DTI to Greenbrier are provided pursuant to a service agreement dated January 1, 2001, in the form of Exhibit B to the CNG Form U-9C-3 filed for the first calendar quarter of 2001.(s)
Services provided by DTI to DNGS are provided pursuant to a service agreement dated December 1, 2001 in the form of Exhibit A(l) to the CNG Form U-9C-3 filed for the third calendar quarter of 2002.
Page 12
(t)
Services provided by DTI to Dominion Cove Point LNG, LP are provided pursuant to a service agreement dated August 30, 2002 in the form of Exhibit A(m) to the CNG Form U-9C-3 filed for the third calendar quarter of 2002.(u)
Services provided by DTI to Tioga Properties, LLC are provided pursuant to a service agreement dated July 2, 2002 in the form of Exhibit A(o) to the CNG Form U-9C-3 filed for the fourth calendar quarter of 2002.(v)
Services provided by Dominion Exploration & Production, Inc. to DOTEPI are provided pursuant to a Market Services Agreement dated November 1, 2001 in the form of Exhibit A(k) to the CNG Form U-9C-3 filed for the second calendar quarter of 2002.(w)
Services provided by Dominion Exploration & Production, Inc. to Stonewater Pipeline Company, LP are provided pursuant to a service agreement dated September 1, 2004 in the form of Exhibit B attached hereto.(x)
Services provided by Virginia Power Energy Marketing, Inc. to DETC are provided pursuant to a service agreement dated June 30, 2003 in the form of Exhibit D to the DRI Form U-9C-3 filed for the first quarter of 2004.Page 13
ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investments in energy-related companies (in thousands):
Total consolidated capitalization of DRI as of September 30, 2004 |
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Total capitalization multiplied by 15% (Line 1 multiplied by 0.15) |
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Greater of $50 million or line 2 |
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$4,208,610 |
Line 3 |
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Total current aggregate investment: (categorized by major line of energy-related business) |
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Energy-related business by category |
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Category 2 |
|
10 |
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Category 5 |
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2,739,382 |
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Category 6 |
|
13,752 |
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Category 7 |
|
9,474 |
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Category 8 |
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1 |
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Category 9 |
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26,561 |
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Total current aggregate investment (z) |
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2,789,180 |
Line 4 |
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Difference between the greater of $50 million or 15% of capitalization and the total aggregate investment of the registered holding system |
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$1,419,430 |
Line 5 |
Investments in gas-related companies (in thousands):
Total current aggregate investment: (categorized by major line of gas-related business) (aa) |
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Gas exploration and production |
|
2,655,283 |
|
Gas sales and storage services |
|
584,698 |
|
Gas transportation |
|
54,634 |
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$3,294,615 |
(y)
Includes short-term debt of $348,012.ITEM 5 - OTHER INVESTMENTS
Major Line of Energy- |
Other Investment in |
Other Investment in this |
Reason for Difference |
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None.
A. Financial Statements
Balance sheets as of September 30, 2004 and income statements for the three-months and nine-months ended September 30, 2004 for the following companies are filed under confidential treatment pursuant to Rule 104(b):
DAH |
DETI |
DCT |
DOES |
Wagram |
DTECH |
DEMI |
Field Services |
Greenbrier |
DOTEPI |
DNGS |
Cove Point |
Tioga |
DETC |
DECCI |
DNPI |
DEK |
B. Exhibits
The certificate as to filing with interested state commissions is attached hereto as Exhibit A.
The form of service agreement, dated September 1, 2004 between Dominion Exploration & Production, Inc. and Stonewater Pipeline Company, LP. is attached as Exhibit B.
The form of service agreement, dated June 1, 2004 between Dominion Technical Solutions, Inc. and Kincaid Generation, LLC is attached hereto as Exhibit C.
The form of service agreement, dated August 1, 2004 between The East Ohio Gas Company and Dominion Field Services, Inc. is attached hereto as Exhibit D.
Page 15
SIGNATURE
The undersigned registered holding companies have duly caused this quarterly report to be signed on their behalf by the undersigned attorney thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.
DOMINION RESOURCES, INC. |
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By: /s/ James F. Stutts |
CONSOLIDATED NATURAL GAS COMPANY |
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By: /s/ James F. Stutts |
Dated: November 12, 2004
Page 16
Exhibit A
CERTIFICATE
The undersigned certifies that she is the duly designated and acting attorney of Dominion Resources, Inc., a Virginia corporation ("DRI") and Consolidated Natural Gas Company, a Delaware corporation ("CNG") and that:
The Combined Quarterly Report for DRI and CNG on Form U-9C-3 filed pursuant to Rule 58 for the quarter ended September 30, 2004 was filed with each state commission having jurisdiction over the retail rates of the public utility companies that are associate companies of any of the reporting companies.
The names and addresses of such state utility commissions are:
Utilities Department |
Executive Secretary |
Secretary |
Director, Public Utility Accounting |
Chief Clerk |
IN WITNESS WHEREOF, I have hereunto set my hand as of the 12th day of November 2004.
/s/ Sharon L. Burr |
Sharon L. Burr |
|
Exhibit B
September 1, 2004
Stonewater Pipeline Company, L.P.
14000 Quail Springs Parkway, Suite 600
Oklahoma City, Oklahoma 73134
Dominion Exploration & Production, Inc.
Four Greenspoint Plaza
16945 North Chase Drive, Suite 1750
Houston, TX 77060-2133
Gentlemen:
This Agreement is entered into by and between Dominion Exploration & Production, Inc. ("Providing Company"), a Delaware corporation and Stonewater Pipeline Company, L.P. ("Receiving Company"), a Texas Limited Partnership. Receiving Company has requested that Providing Company provide it with certain services which it may from time to time require in the conduct of its business. Providing Company has agreed to provide such services to Receiving Company, upon the terms and conditions hereinafter provided.
Accordingly, in consideration of the mutual promises herein contained, Providing Company and Receiving Company agree as follows:
The cost of rendering such services shall include: (1) a portion of the salaries and wages of employees of Providing Company determined according to the time devoted by such employees to the performance of services hereunder for Receiving Company; (2) the costs of such employees' benefits, payroll taxes and compensated absences attributable to salaries and wages directly billed, as determined in accordance with Providing Company policies and procedures in place from time to time, (3) all other out-of-pocket operating costs, including expenses for transportation, tolls and other expenses incurred by Providing Company or its employees in connection with the performance of services under this Agreement , (4) the actual costs of materials and supplies furnished by Providing Company in connection with the performance of services under this Agreement, and (5) administrative and general costs attributable to services performed under this Agreement, determined in accordance with Providing Company's policies and procedures.
If you approve of this proposal, please indicate your acceptance by executing both copies hereof in the space provided and return one (1) fully executed copy to Providing Company.
Respectfully submitted,
Dominion Exploration & Production, Inc.
By: /s/ Dennis G. Millet |
Accepted and Agreed to:
Stonewater Pipeline Company, L.P.,
By it's General Partner, Stonewater Pipeline
Company of Texas, Inc.
By: /s/ Ronnie K. Irani
Ronnie K. Irani
Senior Vice President and General Manager - Western Operations
Exhibit C
SERVICE AGREEMENT
BETWEEN
DOMINION TECHNICAL SOLUTIONS AND
KINCAID POWER STATION
This document defines the services provided to Kincaid Power Station by Dominion Technical Solutions. These services are detailed in the chapters that follow. A pricing schedule and a contact listing for this agreement is provided.
Duration: This service agreement will be in effect from June 1, 2004 (or the actual execution date) through December 31, 2005. The Director - Electric Transmission Operations and the Director-F&H Station II must agree to any changes to this agreement.
Pricing: Pricing is based upon time and materials in accordance with the pricing schedules in Appendix "A". As you will note we have included SBU overheads and the SAP billing surcharge according to our agreement with the Virginia SCC for work with other affiliates within Dominion.
Requests: All work request for Engineering, Construction, Material Procurement, and Technical Services for substations by Dominion Technical Solutions shall be made by authorized station personnel. Initial contact can be made according to the contact listings in Appendix "B". A Letter of Authorization (LOA) for the work must be sent to the person on top of the contact listing even if the initial contact was by telephone. Emergency telephone numbers are provided for work request outside of normal business hours.
Billing: A WBS element will be set up that defaults to the Dominion Service Company for any work Dominion Technical Solutions may perform for Kincaid Power Station. The WBS element will be used for labor and SAP will be set up to add the appropriate overhead markups per the pricing schedule. Specific purchased materials will be charged directly to Kincaid Power Station at cost. The Service Company will automatically invoice Kincaid Power Station each month based upon any charges that have been made to the Kincaid Power Station WBS element. This invoice will be entered as revenue to the Dominion Technical Solutions income statement.
Service Agreement Approvals
/s/ David W. Roop |
/s/ Carl J. Saladino |
|
|
SERVICES PROVIDED BY DOMINION TECHNICAL SOLUTIONS
TO
KINCAID POWER STATION
TABLE OF CONTENTS
Chapter 1.0 Dominion Technical Solutions
1.1 System Protection Engineering Services |
1.2 Substation Engineering Services |
1.3 Project Management Support Services |
1.4 Construction Support Services |
1.5 Electrical Equipment Support Services |
1.6 System Protection Support Services |
Appendix "A" Dominion Technical Solutions Pricing Schedule
Appendix "B" Contact Listing
1.0 Dominion Technical Solutions
Description of Services Provided
Dominion Technical Solutions provides the following Engineering, Project Management, Construction and Technical Support services on a routine or "as requested" basis:
1.1 System Protection Engineering - Protection and Control Design, including the related engineering and construction specifications, cost estimating, applications analysis, communications paths, and Computer Aided Design and Drafting (CADD).
1.2 Substation Engineering - Design engineering and construction specifications for substation additions/modifications.
1.3 Project Management and Support - Provides turnkey project management for construction of transmission lines and substations. Permitting, routing, scheduling, surveying, real estate acquisition, Materials Management, and cost tracking and analysis.
1.4 Construction Support Services - Direct construction activities which includes scheduling, tracking, and staging of materials, construction development, and selection of contractors.
1.5 Electrical Equipment Technical Support Services
1.6 Protective Relaying Technical Support Services
Service Level Provided
Services requested by the customer will be provided as needed. If the requested services are required on site, an advance notice of one week will be required prior to date the services are needed. If the on site services requested are delayed or canceled without prior notice, all cost incurred will be billed.
Transformer oil dissolved gas analysis (DGA) services will be scheduled through Electric Transmission Field Operations - Substations computerized maintenance management system (CMMS) at the intervals set by the customer. Oil syringes will be provided to the customer and should be returned within 2 weeks. The test results and the interpretation of those results should be available within 30 days. This service will be billed on a per sample basis.
Pricing Schedule
See Appendix "A"
Request for Service
See Appendix "B"
Service Agreement Approval
/s/ David W. Roop |
/s/ Carl J. Saladino |
Exhibit D
August 1, 2004
Dominion Field Services, Inc.
140 W. Main Street
Clarksburg, WV 26301
Gentlemen:
This Agreement is entered into by and between The East Ohio Gas Company ("Providing Company"), an Ohio corporation and Dominion Field Services, Inc. ("Receiving Company"), a Delaware corporation. Receiving Company has requested that Providing Company provide it with certain services which it may from time to time require in the conduct of its business. Providing Company has agreed to provide such services to Receiving Company, upon the terms and conditions hereinafter provided.
Accordingly, in consideration of the mutual promises herein contained, Providing Company and Receiving Company agree as follows:
The cost of rendering such services shall include: (1) a portion of the salaries and wages of employees of Providing Company determined according to the time devoted by such employees to the performance of services hereunder for Receiving Company; (2) the costs of such employees' benefits, payroll taxes and compensated absences attributable to salaries and wages directly billed, as determined in accordance with Providing Company policies and procedures in place from time to time, (3) all other out-of-pocket operating costs, including expenses for transportation, tolls and other expenses incurred by Providing Company or its employees in connection with the performance of services under this Agreement , (4) the actual costs of materials and supplies furnished by Providing Company in connection with the performance of services under this Agreement, and (5) administrative and general costs attributable to services performed under this Agreement (including reasonable amounts for general office maintenance and depreciation, amortization, return and related taxes on Providing Company's general plant investment), determined in accordance with Providing Company's policies and procedures.
If you approve of this proposal, please indicate your acceptance by executing both copies hereof in the space provided and return one (1) fully executed copy to Providing Company.
Respectfully submitted, |
The East Ohio Gas Company |
By: /s/ Maxwell R. Schools, Jr. |
Accepted and Agreed to:
Dominion Field Services, Inc.
By: /s/ Joseph C. McCann
Joseph C. McCann
Controller