EX-12.A 7 d126742dex12a.htm EX-12.A EX-12.A

Exhibit 12.a

Dominion Resources, Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(millions of dollars)

 

     Years Ended December 31,  
     2015(a)      2014(b)     2013(c)      2012(d)     2011(e)  

Earnings, as defined:

            

Income from continuing operations including noncontrolling interest before income tax expense

   $ 2,828       $ 1,778      $ 2,704       $ 2,265      $ 2,262   

Distributed income from unconsolidated investees, less equity in earnings

     12         (8     17         (13     (23

Fixed charges included in income

     953         1,237        930         880        867   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total earnings, as defined

   $ 3,793       $ 3,007      $ 3,651       $ 3,132      $ 3,106   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Fixed charges, as defined:

            

Interest charges

   $ 920       $ 1,208      $ 899       $ 845      $ 818   

Rental interest factor

     33         29        31         35        49   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Fixed charges included in income

   $ 953       $ 1,237      $ 930       $ 880      $ 867   

Preference security dividend requirement of consolidated subsidiary

     0         17        25         25        25   

Capitalized Interest

     67         39        28         24        11   

Interest from discontinued operations

     0         0        85         80        99   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total fixed charges, as defined

   $ 1,020       $ 1,293      $ 1,068       $ 1,009      $ 1,002   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges

     3.72         2.33        3.42         3.10        3.10   

 

(a) Earnings for the twelve months ended December 31, 2015 include $85 million write-off of prior-period deferred fuel costs associated with Virginia legislation; $99 million charge associated to future ash pond and landfill closure costs; $78 million charge related to other items; partially offset by $60 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, 2015.
(b) 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 and landfill 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.
(c) 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.
(d) 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.
(e) 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.