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&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Dominion and Virginia Power
regularly evaluate and validate the inputs used to estimate fair
value by a number of methods, including review and verification of
models, as well as various market price verification procedures
such as the use of pricing services and multiple broker quotes to
support the market price of the various commodities in which the
Companies transact.&lt;/font&gt;&lt;/p&gt;
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regularly evaluate and validate the inputs used to estimate fair
value by a number of methods, including review and verification</NonNumericTextHeader>
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      <ShortDefinition>Provides a description of the entities credit risk policy.</ShortDefinition>
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&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;For derivative contracts,
Dominion and Virginia Power recognize transfers among Level 1,
Level 2 and Level 3 based on fair values as of the first day of the
month in which the transfer occurs. Transfers out of Level&amp;#xA0;3
represent assets and liabilities that were previously classified as
Level&amp;#xA0;3 for which the inputs became observable based on the
criteria discussed in Note 7 to the Consolidated Financial
Statements in Dominion&amp;#x2019;s and Virginia Power&amp;#x2019;s Annual
Report on Form 10-K for the year ended December&amp;#xA0;31, 2009 for
classification in either Level&amp;#xA0;1 or Level&amp;#xA0;2. Because the
activity and liquidity of commodity markets vary substantially
between regions and time periods, the availability of observable
inputs for substantially the full term and value of the
Companies&amp;#x2019; over-the-counter derivative contracts is subject
to change.&lt;/font&gt;&lt;/p&gt;
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