5. Investments

Investments were as follows at September 30, 2011, and December 31, 2010:

	Description				Designation	Cost	Gross Unrealized Gains		Gross Unrealized Losses	Fair Value	Carrying Value
						(in thousands)
	September 30, 2011

	Nuclear decommissioning trust ⁽¹⁾
			Debt securities		Available for sale	$ 42,160		$ 2,399	$ -	$ 44,559	$ 44,559
			Equity securities		Available for sale	51,028		3,770	(4,677)	50,121	50,121
			Cash and other		Available for sale	167		-	-	167	167
				Total Nuclear Decommissioning Trust		$ 93,355		$ 6,169	$ (4,677)	$ 94,847	$ 94,847

	Lease deposits ⁽²⁾
			Government obligations		Held to maturity	$ 91,049		$ 9,075	$ -	$ 100,124	$ 91,049
				Total Lease Deposits		$ 91,049		$ 9,075	$ -	$ 100,124	$ 91,049

	Unrestricted investments
			Government obligations		Held to maturity	$ 8,900		$ 1	-	$ 8,901	$ 8,900
				Total Unrestricted Investments		$ 8,900		$ 1	$ -	$ 8,901	$ 8,900

	Other
			Equity securities		Available for sale	$ 94		$ -	$ (12)	$ 82	$ 82
			Non-marketable equity investments ⁽³⁾		Equity	1,777		-	-	1,777	1,777
				Total Other		$ 1,871		$ -	$ (12)	$ 1,859	$ 1,859
									Total Carrying Value		$ 196,655
	December 31, 2010

	Nuclear decommissioning trust ⁽¹⁾
			Debt securities		Available for sale	$ 41,049		$ 839	$ -	$ 41,888	$ 41,888
			Equity securities		Available for sale	48,522		9,095	(2,211)	55,406	55,406
			Cash and other		Available for sale	237		-	-	237	237
				Total Nuclear Decommissioning Trust		$ 89,808		$ 9,934	$ (2,211)	$ 97,531	$ 97,531

	Lease deposits ⁽²⁾
			Government obligations		Held to maturity	$ 89,355		$ 185	$ (405)	$ 89,135	$ 89,355
				Total Lease Deposits		$ 89,355		$ 185	$ (405)	$ 89,135	$ 89,355

	Unrestricted investments⁽⁴⁾
			Debt securities		Available for sale	$ 7,723		$ -	$ -	$ 7,723	$ 7,723
			Equity securities		Available for sale	139		-	-	139	139
				Total Unrestricted Investments		$ 7,862		$ -	$ -	$ 7,862	$ 7,862

	Other
			Equity securities		Available for sale	$ 78		$ 2	$ -	$ 80	$ 80
			Non-marketable equity investments ⁽³⁾		Equity	1,769		-	-	1,769	1,769
				Total Other		$ 1,847		$ 2	$ -	$ 1,849	$ 1,849
									Total Carrying Value		$ 196,597

⁽¹⁾		Investments in the nuclear decommissioning trust are restricted for the use of funding our share of the asset retirement obligations of the future decommissioning of the North Anna Nuclear Power Station ("North Anna"). See Note 3 of the Notes to Consolidated Financial Statements in our 2010 Annual Report on Form 10-K. Realized and unrealized gains and losses related to assets held in the nuclear decommissioning trust are deferred as a regulatory asset or liability.
⁽²⁾		Investments in lease deposits are restricted for the use of funding our future lease obligations. See Note 8 of the Notes to Consolidated Financial Statements in our 2010 Annual Report on Form 10-K.
⁽³⁾		We believe the carrying value approximates fair value for our equity investments.
⁽⁴⁾		The cost represents investments in ARS with a principal value of $16.8 million. The cost has been written down by $9.0 million due to the fair value adjustment. During 2010, we amortized $3.4 million of the regulatory asset as loss on investment and deferred the remaining balance of $5.6 million as a regulatory asset in accordance with Accounting for Regulated Operations. See Note 10 of the Notes to Consolidated Financial Statements in our 2010 Annual Report on Form 10-K. As of December 31, 2010, we owned five ARS; during 2011, we sold all five ARS.

Our investments by classification at September 30, 2011, and December 31, 2010, were as follows:

	September 30, 2011		December 31, 2010
Description	Cost	Carrying Value	Cost	Carrying Value
	(in thousands)
Available for sale	$ 93,449	$ 94,929	$ 97,748	$ 105,473
Held to maturity	99,949	99,949	89,355	89,355
Equity	1,777	1,777	1,769	1,769
	$ 195,175	$ 196,655	$ 188,872	$ 196,597

Contractual maturities of unrestricted debt securities at September 30, 2011, were as follows:

Description	Less than 1 year	1-5 years	5-10 years	More than 10 years		Total
	(in thousands)
Available for Sale	$ -	$ -	$ -		$ -	$ -
Held to Maturity	8,900	-	-		-	8,900
	$ 8,900	$ -	$ -		$ -	$ 8,900

The contractual maturities of our restricted debt securities related to our nuclear decommissioning trust have not been disclosed because all maturities are prior to the estimated decommissioning date and the contractual maturities of our restricted debt securities related to our lease deposits have not been disclosed because all maturities are concurrent with the transaction maturity date.