SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT
Filed pursuant to Section 12, 13, and 15 (d) of
THE SECURITIES EXCHANGE ACT OF 1934
--------------------------------------------
Dominion Resources, Inc.
(Exact name of registrant as specified in charter)
AMENDMENT NO. 1 TO FORM 10-K
The undersigned registrant hereby amends the exhibits to its 1997 Annual Report
on Form 10-K to include the following 1997 Annual Reports for the Dominion
Resources, Inc. Employee Savings Plan, Dominion Subsidiary Savings Plan, and the
Virginia Power Hourly Employee Savings Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
DOMINION RESOURCES, INC.
Registrant
BY /s/EDGAR M. ROACH, JR.
-------------------------
Edgar M. Roach, Jr.
Executive Vice President,
Chief Financial Officer
Date: June 10, 1998
<PAGE>
FORM 11-K
DECEMBER 31, 1997
EXHIBIT INDEX
Exhibit Page
Exhibit 99(i) Financial Statements to Form 11-K of
Dominion Resources, Inc. Employee Savings
Plan (filed in paper format)
Exhibit 99(ii) Independent auditor's consent (filed
electronically herewith)
Exhibit 99(iii) Financial Statements to Form 11-K of
Dominion Resources, Inc. Dominion
Subsidiary Savings Plan (filed in paper
format).
Exhibit 99(iv) Independent auditor's consent (filed
electronically herewith)
Exhibit 99(v) Financial Statements to Form 11-K of
Virginia Power Hourly Employee Savings
Plan (filed in paper format)
Exhibit 99(vi) Independent auditor's consent (filed
electronically herewith)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One):
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
- ----- OF 1934.
For the fiscal year ended December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from __________ to ___________
Commission File number 333-09167
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Dominion Resources, Inc.
Employee Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
DOMINION RESOURCES, INC.
P. O. Box 26532
901 East Byrd Street - Suite 1700
Richmond, Virginia 23261-6111
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS
TABLE OF CONTENTS
Pages
Independent Auditors' Report F-2
Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 1997 and 1996 F-3
Statements of Changes in Net Assets Available
for Benefits for the Years Ended
December 31, 1997, 1996 and 1995 F-4
Notes to Financial Statements F-5 - F-21
Supplemental Schedules as of December 31, 1997:
Item 27a - Schedule of Assets Held for Investment
Purposes F-22
Item 27d - Schedule of Reportable Transactions F-23
Schedules Omitted:
The following schedules are omitted because of the absence of the conditions
under which they are required, or because the required information is included
in the financial statements or notes thereto:
Schedules I, II and III.
F-1
<PAGE>
INDEPENDENT AUDITORS REPORT
To the Organization and Compensation Committee of the
Board of Directors of Virginia Electric and Power Company
We have audited the accompanying financial statements of the Dominion Resources,
Inc. Employee Savings Plan (the Plan) as of December 31, 1997 and 1996 and for
each of the three years in the period ended December 31, 1997, listed in the
Table of Contents on page F-1. These financial statements are the responsibility
of the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 1997
and 1996, and the changes in net assets available for plan benefits for each of
the three years in the period ended December 31, 1997 in conformity with
generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
listed in the Table of Contents are presented for purposes of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 1997 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
Richmond, Virginia
May 29, 1998
F-2
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
ASSETS 1997 1996
- ------ --------------------- --------------------
<S> <C>
Investments (Notes 1 and 2):
Dominion Resources, Inc., Common Stock $ 227,358,045 $ 228,662,129
Common/Collective Trusts 83,467,788 57,850,573
Interest in Certus Stable Value Fund 44,640,390 39,215,119
Mutual Funds 101,096,713 61,943,145
Loans To Participants at Face Value 9,620,638 7,130,991
--------------------- --------------------
Total Investments 466,183,574 394,801,957
Receivables:
Interest 232,683 208,833
Other 2,219,510 1,442,346
--------------------- --------------------
Total Receivables 2,452,193 1,651,179
Cash 123,233
2,709
--------------------- --------------------
Total Assets 468,759,000 396,455,845
--------------------- --------------------
Liabilities - Other 602,594 332,207
--------------------- --------------------
Net Assets Available for Benefits $ 468,156,406 $ 396,123,638
===================== ====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
For the Years Ended December 31,
----------------------------------------------------------
1997 1996 1995
------------------ ------------------ -----------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 51,284,949 $ (7,870,296) $ 50,082,305
Dividend income 17,266,136 18,287,095 19,244,113
Interest and other income 3,610,729 2,047,417 892,225
------------------ ------------------ -----------------
Total investment income 72,161,814 12,464,216 70,218,643
Contributions:
Participant (Note 1) 23,543,017 22,092,365 22,329,543
Participating companies (Note 1) 7,457,675 7,752,850 8,363,366
------------------ ------------------ -----------------
Total additions 103,162,506 42,309,431 100,911,552
------------------ ------------------ -----------------
Benefits paid to participants 30,900,004 34,560,571 40,517,577
Administrative expenses 165,007 417,964 346,936
------------------ ------------------ -----------------
Total deductions 31,065,011 34,978,535 40,864,513
------------------ ------------------ -----------------
Net increase before transfer 72,097,495 7,330,896 60,047,039
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: (64,727) 2,224,545 325,430
------------------ ------------------ -----------------
Net increase 72,032,768 9,555,441 60,372,469
Net assets available for benefits:
Beginning of year 396,123,638 386,568,197 326,195,728
------------------ ------------------ -----------------
End of year $ 468,156,406 $ 396,123,638 $ 386,568,197
================== ================== =================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
- -------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the Dominion Resources, Inc. Employee
Savings Plan (the Plan) provides only general information. Participants
should refer to the Plan document for a more complete description of
the Plan's provisions.
a. GENERAL - The Plan is a defined contribution pension plan
covering all full-time salaried employees of the Virginia
Electric and Power Company (the Company) who have one year of
service and are age 18 or older. The Company, a wholly-owned
subsidiary of Dominion Resources, Inc. (DRI), is the
designated Plan sponsor, fiduciary and administrator. Mellon
Bank serves as the trustee of the Plan. The Plan is subject to
the provisions of the Employee Retirement Income Security Act
of 1974 (ERISA).
b. CONTRIBUTIONS -
Prior to June 1, 1996:
Under the terms of the Plan, participants
could make contributions to the Plan under the Regular
Option and the Savings Plus Option. The Regular Option
allowed participants to make after-tax contributions to
the Plan. The Savings Plus Option allowed participants to
contribute to the Plan with before-tax dollars.
A maximum of 16% of the participant's eligible
earnings could be invested in the Plan. Of this 16%, up to 10%
could be invested on a tax-deferred basis under the Savings
Plus Option. The Participating Companies (noted in Note 1d)
contributed a matching amount equivalent to 50% of each
participant's contributions, not to exceed 3% of the
participant's eligible earnings, which was used to purchase
DRI common stock.
Effective June 1, 1996:
A maximum of 17% of the participant's eligible
earnings and 9% of highly compensated employee's eligible
earnings can be invested in the Plan. Of the 17%, up to 12%
can be invested on a tax-deferred basis. The Participating
Companies contribute a matching amount equivalent to 50% of
each participant's contributions, not to exceed 3% of the
participant's eligible earnings, which is used to purchase DRI
common stock.
c. PARTICIPANT ACCOUNTS - Each participant's account is credited
with the participant's contributions and withdrawals, as
applicable, and allocations of (a) the Company's contributions
and (b) Plan earnings, and debited with an allocation of
administrative expenses. Allocations are based on participant
earnings or account balances, as defined. Forfeited balances
of terminated participants' non-vested accounts are used to
reduce future Participating Companies' contributions. The
benefit to which a participant is entitled is the benefit that
can be provided from the participant's account.
d. PLAN PARTICIPANTS - Any subsidiary of DRI may adopt the Plan
for the benefit of its qualified salaried employees subject to
approval of the Board of Directors of the Company. Currently
only Dominion Resources, Inc., Dominion Energy, Dominion
Capital, Vidalia Audit, Inc. and Company employees are
participating in the Plan.
F-5
<PAGE>
There were 5,443 and 5,801 participants in the Plan as of
December 31, 1997 and 1996, respectively.
e. VESTING -
Prior to June 1, 1996:
Participants became vested in their own contributions
immediately and in the Participating Companies' matching
contributions at the earlier of (a) the beginning of the third
year following the year in which the contribution was made or
(b) the date the participant completed five years of service
with the Company. Matching contributions vested immediately
for participants aged 55 or older.
Effective June 1, 1996:
Participants become vested in their own contributions and the
earnings on these amounts immediately, and in the
participating companies' matching contributions and earnings
after 3 years of service. Matching contributions vest
immediately for participants aged 55 or older.
f. INVESTMENT OPTIONS -
Prior to June 1, 1996:
The Plan provided for employee contributions to be invested in
the following funds:
Dominion Resources, Inc. (DRI) Common Stock Fund - All
investments are in DRI Common Stock or cash equivalent
investments for partial shares.
Interest-Bearing Fund - This fund's focus was on
preservation of principal and the primary investments were
in high quality fixed income securities.
Balanced Fund - Thirty percent of this fund was invested in
equity securities and the residual was invested in fixed
income securities. It was designed to produce stable long-term
principal growth.
America's Utility Fund - Investments were in the common stock
of electric, gas and telephone utilities, which were intended
to provide high income and moderate principal growth.
America's Utility Fund was sponsored and administered by a
subsidiary of DRI.
Equity Index Fund - The objective was to provide a return
equal to the return of the U.S. stock market as measured by
the Standard and Poor's 500 Composite Stock Price Index.
Loan Fund - Participants were allowed to borrow against their
vested balance and repay the amount over a three-or four-year
period.
Participating Companies' matching contributions were invested
only in the DRI Common Stock Fund and could not be transferred
to other funds.
Employee contributions could have been invested in any option
(except the loan fund) in 10% increments totaling to 100%.
Changes in investment options could have been selected four
times a year, to be effective the first day of each quarter.
F-6
<PAGE>
Effective June 1, 1996:
The Plan provides for employee contributions to be invested in
the following:
(1) Common Stock:
Dominion Resources, Inc. (DRI) Common Stock Fund - All
investments are in DRI Common Stock or cash equivalent
investments for partial shares.
(2) Interest in Certus Stable Value Fund:
Certus Stable Value Fund - The fund invests in investment
contracts of insurance companies and commercial banks and
U.S. Government or agency backed bonds.
(3) Mutual Funds:
Premier Managed Income Fund - The fund invests primarily in
investment-grade corporate and U.S. Government obligation and
in obligation having maturities of 10 years or less.
Dreyfus Balanced Fund, Inc. - The fund invests in equity and
debt securities of domestic and foreign issuers.
The Crabbe Huson Equity Fund, Inc. - The fund invests in
common stock that have large market capitalization.
Templeton Foreign Fund - The fund invests primarily in equity
and debt securities of companies and governments outside the
U.S.
Warburg Pincus Emerging Growth Fund - The fund invests in
equity securities of primarily domestic emerging growth
companies.
(4) Common/Collective Trust:
Equity Index Fund - The fund invests primarily in the 500
stocks of the S&P 500 and may also invest in exchange
traded options and financial futures.
Upon enrollment in the Plan, a participant may direct employee
contributions in any option (except the loan fund) in 1%
increments totaling to 100%. Changes in investment options may
be made at any time and become effective with the subsequent
pay period. Participants can make unlimited transfers among
existing funds.
Company matching contributions are automatically contributed
into the DRI Common Stock fund. However, participants who are
under age 50 may transfer 50% of the value of their Company
Match Account into another investment option, while
participants who are age 50 and over may transfer 100% of the
value of the Company Match Account.
f. LOANS TO PARTICIPANTS - Participants are eligible to secure
loans against their plan assets and repay the amount over a
one-to five-year period. The maximum loan amount is the lesser
of:
o 50% of the vested account balance
o $50,000 (reduced by the maximum outstanding loan balance
during the prior twelve months)
F-7
<PAGE>
The loans are interest-bearing at one percentage point above
the prime rate of interest. The rate is determined every
quarter; however, the rate is fixed at the inception of the
loan for the life of the loan.
Participants make repayments to the Plan on a monthly basis.
Any defaults in loans result in a reclassification of the
remaining loan balances as taxable distributions to the
participants.
g. PAYMENT OF BENEFITS - Distributions from the Plan are recorded
on the valuation date when a participant's valid withdrawal
request is processed by the record keeper. On termination of
service, a participant may elect to receive either a lump-sum
amount equal to the value of the participant's vested interest
in his or her account, or defer the payment to a future time
no later than the year in which the participant attains age 70
1/2. There were no amounts payable to participants at December
31, 1997 and 1996.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. VALUATION OF INVESTMENTS:
(1) Stock Fund - The investments of the Stock Fund are stated
at fair value based on closing sales prices reported on
recognized securities exchanges on the last business day
of the year.
(2) Mutual Funds - Investments in mutual funds are valued at
quoted market prices which represent the net asset
values of shares held by the Plan at year-end.
(3) Common/Collective Trusts - Investments in
common/collective trust funds (funds) are stated at
estimated fair values, which have been determined based on
the unit values of the funds. Unit values are determined
by the bank sponsoring such funds by dividing the fund's
net assets by its units outstanding at the valuation
dates.
(4) Investment Contracts - The guaranteed investment contracts
within the Certus Stable Value Fund are valued at contract
value. Contract value represents contributions made under
the contract, plus earnings, less Plan withdrawals and
administrative expenses.
b. INVESTMENT INCOME - Dividend income is recognized on the
ex-dividend date.
c. EXPENSES - The Plan's expenses are accrued as incurred and
paid by the Plan, as provided by the Plan document.
d. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from those estimates.
3. CHANGE IN TRUSTEE
Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the
Trustee of the Plan. The prior Trustee was Signet Trust Company with
respect to the DRI Common Stock Fund, America's Utility, Equity Income
and Balance Funds. NationsBank served as Trustee of the Plan with
respect to the Interest Bearing Fund.
F-8
<PAGE>
4. INVESTMENTS EXCEEDING 5% OF NET ASSETS
The following table represents the fair value of investments exceeding
5% of the Plan's net assets at each year end:
<TABLE>
<CAPTION>
1997 1996
------------------ ------------------
<S> <C>
Investment at Fair Value as Determined
by Quoted Market Price:
DRI Common Stock $ 227,358,045 $ 228,662,129
Dreyfus Balance Fund 47,064,871 39,029,616
------------------ ------------------
274,422,916 267,691,745
Investments at Estimated Fair Value:
Mellon EB Daily Liquidity Index Fund 82,903,904 57,233,393
------------------ ------------------
$ 357,326,820 $ 324,925,138
================== ==================
</TABLE>
5. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The Plan's investments (including investments bought, sold, as well as
held during the year) appreciated (depreciated) in value by $51,284,949
in 1997, ($7,870,296) in 1996 and $50,082,305 in 1995, as follows:
<TABLE>
<CAPTION>
a. Realized Gains/(Loss) 1997 1996 1995
----------------- ------------------ -----------------
<S> <C>
Investment at fair value as determined by
quoted market price:
Common Stock $ 4,151,677 $ 1,982,764 $ 2,753,725
U.S. Treasury Notes 102,473
- -
Interest in Certus Stable Value Fund 1,157 - -
Mutual Funds 9,873,380 1,787,621 175,324
----------------- ------------------ -----------------
14,026,214 3,770,385 3,031,522
Investments at estimated fair value:
Common/Collective Trust Funds 3,703,099 3,605,296 676
----------------- ------------------ -----------------
$ 17,729,313 $ 7,375,681 $ 3,032,198
================= ================== =================
<CAPTION>
b. Unrealized Gains/(Loss) 1997 1996 1995
----------------- ------------------ -----------------
<S> <C>
Investment at fair value as determined by
quoted market price:
Common Stock $ 17,986,445 $(21,274,904) $ 31,861,335
U.S. Treasury Bill 112,656
- -
Interest in Certus Stable Value Fund - - -
Mutual Funds (1,683,672) 1,037,481 5,217,311
----------------- ------------------ -----------------
16,302,773 (20,237,423) 37,191,302
Investments at estimated fair value:
Common/Collective Trust Funds 17,252,863 4,991,446 9,858,805
----------------- ------------------ -----------------
$ 33,555,636 $(15,245,977) $ 47,050,107
================= ================== =================
</TABLE>
F-9
<PAGE>
<TABLE>
<CAPTION>
c. Net Appreciation/(Depreciation)
in Fair Value of Investment 1997 1996 1995
----------------- ------------------ -----------------
<S> <C>
Investment at fair value as determined
by quoted market price:
Common Stock $ 22,138,122 $(19,292,140) $ 34,615,060
U.S. Treasury Bill - - 112,656
U.S. Treasury Notes - - 102,473
Interest in Certus Stable Value Fund 1,157 - -
Mutual Funds 8,189,708 2,825,102 5,392,635
----------------- ------------------ -----------------
30,328,987 (16,467,038) 40,222,824
Investments at estimated fair value:
Common/Collective Trust Funds 20,955,962 8,596,742 9,859,481
----------------- ------------------ -----------------
$ 51,284,949 $ (7,870,296) $ 50,082,305
================= ================== =================
</TABLE>
6. PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has
the right under the Plan to discontinue its contributions at any time
and to terminate the Plan subject to the provisions set forth in ERISA.
In the event of any termination of the Plan, or upon complete or
partial discontinuance of contributions, the accounts of each affected
participant shall become fully vested.
7. BY FUND INFORMATION
The net assets available for benefits on a by fund basis and the
changes in net assets available for benefits on a by fund basis are as
follows:
F-10
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------
DRI Common Certus Stable
Assets Total Stock Fund Value Fund
- ------ -------------------- ---------------------- --------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $ 227,358,045 $ 97,187,920
Common/collective trust 83,467,788 192,941
Interest in Certus Stable Value Fund 44,640,390 $ 44,640,390
Mutual funds 101,096,713
Loans 9,620,638
-------------------- ---------------------- --------------------
Total investments 466,183,574 97,380,861 44,640,390
Receivables:
Interest 232,683 2,603 225,973
Other 2,219,510 1,340,584
-------------------- ---------------------- --------------------
Total receivables 2,452,193 1,343,187 225,973
Cash 123,233 27,211 730
-------------------- ---------------------- --------------------
Total assets 468,759,000 98,751,259 44,867,093
-------------------- ---------------------- --------------------
Liabilities - other 602,594 74,403
-------------------- ---------------------- --------------------
Net assets available for benefits $ 468,156,406 $ 98,676,856 $ 44,867,093
==================== ====================== ====================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed (continued)
-------------------------------------------------------------------
Mellon EB
Dreyfus Daily Liquidity Crabbe Huson
Assets Balance Fund Index Fund Equity Fund
- ------ ------------------------- -------------------- ------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock
Common/collective trust $ 82,903,904
Interest in Certus Stable Value Fund
Mutual funds $ 47,064,871 $ 16,949,424
Loans
------------------------- -------------------- ------------------
Total investments 47,064,871 82,903,904 16,949,424
Receivables:
Interest
Other
------------------------- -------------------- ------------------
Total receivables - - -
Cash 93,573 597
------------------------- -------------------- ------------------
Total assets 47,158,444 82,904,501 16,949,424
------------------------- -------------------- ------------------
Liabilities - other 130,247 117,551
------------------------- -------------------- ------------------
Net assets available for benefits $ 47,028,197 $ 82,904,501 $ 16,831,873
========================= ==================== ==================
</TABLE>
F-11
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed (Cont'd)
--------------------------------------------------------------------------------------
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan
Income Fund Fund Growth Fund Fund
------------------- ------------------- ------------------------ ------------------
<S> <C>
Assets
- ------
Investments (Notes 1 and 2):
Common stock
Common/collective trust $ 112,524
Interest in Certus Stable Value Fund
Mutual funds $ 3,176,350 $ 11,224,996 $ 22,681,072
Loans 9,620,638
------------------- ------------------- ------------------------ ------------------
Total investments 3,176,350 11,224,996 22,681,072 9,733,162
Receivables:
Interest 513
Other
------------------- ------------------- ------------------------ ------------------
Total receivables - - - 513
Cash (2) (2,943)
------------------- ------------------- ------------------------ ------------------
Total assets 3,176,350 11,224,994 22,681,072 9,730,732
------------------- ------------------- ------------------------ ------------------
Liabilities - Other 7,409 71,872 115,164
------------------- ------------------- ------------------------ ------------------
Net Assets Available for benefits $ 3,168,941 $ 11,153,122 $ 22,565,908 $ 9,730,732
=================== =================== ======================== ==================
</TABLE>
Non-Participant
Directed
-------------------
DRI Common
Stock Fund
-------------------
Assets
- ------
Investments (Notes 1 and 2):
Common stock $ 130,170,125
Common/collective trust 258,419
Interest in Certus Stable Value Fund
Mutual funds
Loans
-------------------
Total investments 130,428,544
Receivables:
Interest 3,594
Other 878,926
-------------------
Total receivables 882,520
Cash 4,067
-------------------
Total assets 131,315,131
-------------------
Liabilities - Other 85,948
-------------------
Net Assets Available for benefits $ 131,229,183
===================
F-12
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1996
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------
DRI Common Certus Stable
Assets Total Stock Fund Value Fund
- ------ -------------------- ---------------------- --------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $ 228,662,129 $ 103,835,472
Common/collective trust 57,850,573 140,187
Interest in Certus Stable Value Fund 39,215,119 $ 39,215,119
Mutual funds 61,943,145
Loans 7,130,991
-------------------- ---------------------- --------------------
Total investments 394,801,957 103,975,659 39,215,119
Receivables:
Interest 208,833 5,789 199,539
Other 1,442,346 619,314
-------------------- ---------------------- --------------------
Total receivables 1,651,179 625,103 199,539
Cash 2,709
-------------------- ---------------------- --------------------
Total assets 396,455,845 104,600,762 39,414,658
-------------------- ---------------------- --------------------
Liabilities - other 332,207 53,092
-------------------- ---------------------- --------------------
Net assets available for benefits $ 396,123,638 $ 104,547,670 $ 39,414,658
==================== ====================== ====================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed (continued)
-------------------------------------------------------------------
Mellon EB
Dreyfus Daily Liquidity Crabbe Huson
Assets Balance Fund Index Fund Equity Fund
- ------ ------------------------- -------------------- -------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock
Common/collective trust $ 57,233,393
Interest in Certus Stable Value Fund
Mutual funds $ 39,029,616 $ 7,039,667
Loans
------------------------- -------------------- -------------------
Total investments 39,029,616 57,233,393 7,039,667
Receivables:
Interest
Other 78,519
------------------------- -------------------- -------------------
Total receivables 78,519 - -
Cash
------------------------- -------------------- -------------------
Total assets 39,108,135 57,233,393 7,039,667
------------------------- -------------------- -------------------
Liabilities - other 29,775
------------------------- -------------------- -------------------
Net assets available for benefits $ 39,108,135 $ 57,233,393 $ 7,009,892
========================= ==================== ===================
</TABLE>
F-13
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1996
<TABLE>
<CAPTION>
Participant Directed (Cont'd)
----------------------------------------------------------------------------------
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan
Assets Income Fund Fund Growth Fund Fund
- ------ ------------------ ----------------- --------------------- ------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock
Common/collective trust $ 308,467
Interest in Certus Stable Value Fund
Mutual funds $ 1,490,159 $ 4,537,727 $ 9,845,976
Loans
7,130,991
------------------ ----------------- --------------------- ------------------
Total investments 1,490,159 4,537,727 9,845,976 7,439,458
Receivables:
Interest 1,378
Other
------------------ ----------------- --------------------- ------------------
Total receivables - - - 1,378
Cash 1,666 1,043
------------------ ----------------- --------------------- ------------------
Total assets 1,491,825 4,537,727 9,845,976 7,441,879
------------------ ----------------- --------------------- ------------------
Liabilities - Other 19,035 56,127 110,353
------------------ ----------------- --------------------- ------------------
Net Assets Available for benefits $ 1,472,790 $ 4,481,600 $ 9,735,623 $ 7,441,879
================== ================= ===================== ==================
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed
----------------------
DRI Common
Assets Stock Fund
- ------ ----------------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $124,826,657
Common/collective trust 168,526
Interest in Certus Stable Value Fund
Mutual funds
Loans
----------------------
Total investments 124,995,183
Receivables:
Interest 2,127
Other 744,513
----------------------
Total receivables 746,640
Cash
----------------------
Total assets 125,741,823
----------------------
Liabilities - Other 63,825
----------------------
Net Assets Available for benefits $125,677,998
======================
</TABLE>
F-14
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------
Certus
DRI Common Stable
Total Stock Fund Value Fund
-------------------- ---------------------- -------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 51,284,949 $ 9,298,012 $ 1,158
Dividend income 17,266,136 6,363,373
Interest and other income 3,610,729 19,056 2,633,317
-------------------- ---------------------- -------------------
Total investment income 72,161,814 15,680,441 2,634,475
-------------------- ---------------------- -------------------
Contributions:
Participant (Note 1) 23,543,017 2,615,112 3,173,056
Participating companies (Note 1) 7,457,675
-------------------- ---------------------- -------------------
Total additions 103,162,506 18,295,553 5,807,531
-------------------- ---------------------- -------------------
Benefits paid to participants 30,900,004 6,676,627 4,887,344
Administrative expenses 165,007 39,392 20,203
-------------------- ---------------------- -------------------
Total deductions 31,065,011 6,716,019 4,907,547
-------------------- ---------------------- -------------------
Net increase/(decrease) before transfers 72,097,495 11,579,534 899,984
Interfund transfers, net - (17,650,575) 4,542,962
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: (64,727) 225,445 9,489
-------------------- ---------------------- -------------------
Net increase 72,032,768 (5,845,596) 5,452,435
Net assets available for benefits:
Beginning of year 396,123,638 104,522,452 39,414,658
-------------------- ---------------------- -------------------
End of year $ 468,156,406 $ 98,676,856 $ 44,867,093
==================== ====================== ===================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed (continued)
-------------------------------------------------------------------
Mellon EB
Dreyfus Daily Liquidity Crabbe Huson
Balance Fund Index Fund Equity Fund
-------------------- ---------------------- --------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 5,627,656 $ 18,009,278 $ 2,403,589
Dividend income 848,922 1,532,321 33,431
Interest and other income 245,734
-------------------- ---------------------- --------------------
Total investment income 6,722,312 19,541,599 2,437,020
-------------------- ---------------------- --------------------
Contributions:
Participant (Note 1) 2,565,734 5,493,143 3,056,811
Participating companies (Note 1)
-------------------- ---------------------- --------------------
Total additions 9,288,046 25,034,742 5,493,831
-------------------- ---------------------- --------------------
Benefits paid to participants 3,327,585 4,290,462 349,371
Administrative expenses 13,516 47,181 4,608
-------------------- ---------------------- --------------------
Total deductions 3,341,101 4,337,643 353,979
-------------------- ---------------------- --------------------
Net increase/(decrease) before transfers 5,946,945 20,697,099 5,139,852
Interfund transfers, net 2,097,143 5,045,450 4,657,377
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: (124,026) (71,441) 24,752
-------------------- ---------------------- --------------------
Net increase 7,920,062 25,671,108 9,821,981
Net assets available for benefits:
Beginning of year 39,108,135 57,233,393 7,009,892
-------------------- ---------------------- --------------------
End of year $ 47,028,197 $ 82,904,501 $ 16,831,873
==================== ====================== ====================
</TABLE>
F-15
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
Participant Directed (Cont'd)
----------------------------------------------------------------------------------
Templeton Warburg Pincus Premier
Foreign Emerging Managed Loan
Income Fund Growth Fund Income Fund Fund
------------------- ---------------------- ------------------- ---------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 101,969 $ 2,946,684 $ 56,494
Dividend income 310,931 133,661
Interest and other income 10,853 675,379
------------------- ---------------------- ------------------- ---------------
Total investment income 412,900 2,946,684 201,008 675,379
------------------- ---------------------- ------------------- ---------------
Contributions:
Participant (Note 1) 1,792,031 4,413,284 433,846
Participating companies (Note 1)
------------------- ---------------------- ------------------- ---------------
Total additions 2,204,931 7,359,968 634,854 675,379
------------------- ---------------------- ------------------- ---------------
Benefits paid to participants 500,694 649,302 182,751 789,389
Administrative expenses 3,046 6,716 620 (24,451)
------------------- ---------------------- ------------------- ---------------
Total deductions 503,740 656,018 183,371 764,938
------------------- ---------------------- ------------------- ---------------
Net increase/(decrease) before transfers 1,701,191 6,703,950 451,483 (89,559)
Interfund transfers, net 4,957,435 6,053,378 1,245,035 2,321,434
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 12,896 72,957 (367) 56,978
------------------- ---------------------- ------------------- ---------------
Net increase 6,671,522 12,830,285 1,696,151 2,288,853
Net assets available for benefits:
Beginning of year 4,481,600 9,735,623 1,472,790 7,441,879
------------------- ---------------------- ------------------- ---------------
End of year $ 11,153,122 $ 22,565,908 $ 3,168,941 $ 9,730,732
=================== ====================== =================== ===============
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed
---------------------
DRI Common
Stock Fund
---------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 12,840,109
Dividend income 8,043,497
Interest and other income 26,390
---------------------
Total investment income 20,909,996
---------------------
Contributions:
Participant (Note 1)
Participating companies (Note 1) 7,457,675
---------------------
Total additions 28,367,671
---------------------
Benefits paid to participants 9,246,479
Administrative expenses 54,176
---------------------
Total deductions 9,300,655
---------------------
Net increase/(decrease) before transfers 19,067,016
Interfund transfers, net (13,269,639)
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: (271,410)
---------------------
Net increase 5,525,967
Net assets available for benefits:
Beginning of year 125,703,216
---------------------
End of year $ 131,229,183
=====================
</TABLE>
F-16
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------
Interest America's
DRI Common Bearing Utility
Total Stock Fund Fund Fund
-------------------- -------------------- ------------------ ------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ (7,870,296) $ (10,396,563) $ 272,572 $ (563,467)
Dividend income 18,287,095 7,563,811 233,931
Interest and other income 2,047,417 28,611 444,739 1,910
-------------------- -------------------- ------------------ ------------------
Total investment income 12,464,216 (2,804,141) 717,311 (327,626)
-------------------- -------------------- ------------------ ------------------
Contributions:
Participant (Note 1) 22,092,365 5,206,623 1,174,359 777,461
Participating companies (Note 1) 7,752,850
-------------------- -------------------- ------------------ ------------------
Total additions 42,309,431 2,402,482 1,891,670 449,835
-------------------- -------------------- ------------------ ------------------
Benefits paid to participants 34,560,571 12,303,448 3,348,095 835,652
Administrative expenses 417,964 103,844 50,676 5,740
-------------------- -------------------- ------------------ ------------------
Total deductions 34,978,535 12,407,292 3,398,771 841,392
-------------------- -------------------- ------------------ ------------------
Net increase/(decrease) before transfer 7,330,896 (10,004,810) (1,507,101) (391,557)
Interfund transfers, net - (16,249,140) 240,198 (2,001,426)
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 2,224,545 889,424 42,940
Transfer to new trust funds - (37,015,507) (15,992,207)
-------------------- -------------------- ------------------ ------------------
Net increase/(decrease) 9,555,441 (25,364,526) (38,239,470) (18,385,190)
Net assets available for benefits:
Beginning of year 386,568,197 129,886,978 38,239,470 18,385,190
-------------------- -------------------- ------------------ ------------------
End of year $ 396,123,638 $ 104,522,452 $ - $ -
==================== ==================== ================== ==================
</TABLE>
<TABLE>
<CAPTION>
Participant Directed (continued)
----------------------------------------------------------
Equity Certus
Index Balanced Stable
Fund Fund Value Fund
------------------ ------------------ -------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 3,303,646 $ 321,938 $ -
Dividend income 261,781
Interest and other income 11,505 4,941 1,239,187
------------------ ------------------ -------------------
Total investment income 3,315,151 588,660 1,239,187
------------------ ------------------ -------------------
Contributions:
Participant (Note 1) 2,242,536 973,740 2,138,842
Participating companies (Note 1)
------------------ ------------------ -------------------
Total additions 5,557,687 1,562,400 3,378,029
------------------ ------------------ -------------------
Benefits paid to participants 2,067,437 971,930 1,375,339
Administrative expenses 20,883 6,294 50,613
------------------ ------------------ -------------------
Total deductions 2,088,320 978,224 1,425,952
------------------ ------------------ -------------------
Net increase/(decrease) before transfer 3,469,367 584,176 1,952,077
Interfund transfers, net 7,006,247 1,600,348 93,991
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 353,083
Transfer to new trust funds (48,736,048) (22,018,467) 37,015,507
------------------ ------------------ -------------------
Net increase/(decrease) (38,260,434) (19,833,943) 39,414,658
Net assets available for benefits:
Beginning of year 38,260,434 19,833,943 -
------------------ ------------------ -------------------
End of year $ - $ - $ 39,414,658
================== ================== ===================
</TABLE>
F-17
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996
<TABLE>
<CAPTION>
Participant Directed (Cont'd)
----------------------------------------------------------------------------------------
Mellon EB Templeton Warburg Pincus
Dreyfus Daily Liquidity Crabbe Huson Foreign Emerging
Balance Fund Index Fund Equity Fund Income Fund Growth Fund
---------------------------------- ---------------- ----------------------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 2,301,165 $ 5,020,524 $ 289,700 $ 185,202 $ 278,625
Dividend income 768,875 875,885 23,398 79,864
Interest and other income 35,183 9,141
---------------- ----------------- ---------------- --------------- ------------------
Total investment income 3,105,223 5,905,550 313,098 265,066 278,625
---------------- ----------------- ---------------- --------------- ------------------
Contributions:
Participant (Note 1) 1,330,274 2,786,313 1,742,644 813,774 2,660,889
Participating companies (Note 1)
---------------- ----------------- ---------------- --------------- ------------------
Total additions 4,435,497 8,691,863 2,055,742 1,078,840 2,939,514
---------------- ----------------- ---------------- --------------- ------------------
Benefits paid to participants 792,870 1,197,651 36,828 24,142 40,385
Administrative expenses 32,818 50,235 2,298 1,067 3,823
---------------- ----------------- ---------------- --------------- ------------------
Total deductions 825,688 1,247,886 39,126 25,209 44,208
---------------- ----------------- ---------------- --------------- ------------------
Net increase/(decrease) before transfer 3,609,809 7,443,977 2,016,616 1,053,631 2,895,306
Interfund transfers, net (2,539,280) 1,021,192 4,984,590 3,418,728 6,814,803
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 26,932 32,176 8,686 9,241 25,514
Transfer to new trust funds 38,010,674 48,736,048
---------------- ----------------- ---------------- --------------- ------------------
Net increase/(decrease) 39,108,135 57,233,393 7,009,892 4,481,600 9,735,623
Net assets available for benefits:
Beginning of year - - - - -
---------------- ----------------- ---------------- --------------- ------------------
End of year $ 39,108,135 $ 57,233,393 $ 7,009,892 $ 4,481,600 $ 9,735,623
================ ================= ================ =============== ==================
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Participant Directed (Cont'd) Directed
------------------------------- -------------------
Premier
Managed Loan DRI Common
Income Fund Fund Stock Fund
------------------------------- -------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 11,939 $ (8,895,577)
Dividend income 24,281 8,455,269
Interest and other income 255,615 16,585
--------------- -------------- -------------------
Total investment income 36,220 255,615 (423,723)
--------------- -------------- -------------------
Contributions:
Participant (Note 1) 244,910
Participating companies (Note 1) 7,752,850
--------------- -------------- -------------------
Total additions 281,130 255,615 7,329,127
--------------- -------------- -------------------
Benefits paid to participants 3,591 (82,311) 11,645,514
Administrative expenses 301 (29,000) 118,372
--------------- -------------- -------------------
Total deductions 3,892 (111,311) 11,763,886
--------------- -------------- -------------------
Net increase/(decrease) before transfer 277,238 366,926 (4,434,759)
Interfund transfers, net 1,195,210 3,139,289 (8,724,750)
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 342 9,478 826,729
Transfer to new trust funds
--------------- -------------- -------------------
Net increase/(decrease) 1,472,790 3,515,693 (12,332,780)
Net assets available for benefits:
Beginning of year - 3,926,186 138,035,996
--------------- -------------- -------------------
End of year $ 1,472,790 $7,441,879 $ 125,703,216
=============== ============== ===================
</TABLE>
F-18
<PAGE>
Dominion Resources, Inc. Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1995
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------
Interest America's Equity
DRI Common Bearing Utility Index
Total Stock Fund Fund Fund Fund
----------------- ----------------- ---------------- -------------- ---------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $50,082,305 $ 18,176,998 $ 2,355,598 $3,769,694 $7,719,012
Dividend income 19,244,113 8,303,336 752,087 378,731
Interest and other income 892,225 34,512 476,794 3,225 29,425
----------------- ----------------- ---------------- -------------- ---------------
Total investment income 70,218,643 26,514,846 2,832,392 4,525,006 8,127,168
----------------- ----------------- ---------------- -------------- ---------------
Contributions:
Participant (Note 1) 22,329,543 11,092,552 3,402,032 1,944,346 3,890,588
Participating companies (Note 1) 8,363,366
----------------- ----------------- ---------------- -------------- ---------------
Total additions 100,911,552 37,607,398 6,234,424 6,469,352 12,017,756
----------------- ----------------- ---------------- -------------- ---------------
Benefits paid to participants 40,517,577 14,078,153 5,714,483 1,137,853 2,958,019
Administrative expenses 346,936 97,263 87,264 12,595 30,450
----------------- ----------------- ---------------- -------------- ---------------
Total deductions 40,864,513 14,175,416 5,801,747 1,150,448 2,988,469
----------------- ----------------- ---------------- -------------- ---------------
Net increase/(decrease) before transfers 60,047,039 23,431,982 432,677 5,318,904 9,029,287
Interfund transfers, net - (12,006,936) (1,836,902) (679,631) 10,644,834
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 325,430 146,033 24,765
----------------- ----------------- ---------------- -------------- ---------------
Net increase/(decrease) 60,372,469 11,571,079 (1,379,460) 4,639,273 19,674,121
Net assets available for benefits:
Beginning of year 326,195,728 118,315,899 39,618,930 13,745,917 18,586,313
----------------- ----------------- ---------------- -------------- ---------------
End of year $386,568,197 $129,886,978 $38,239,470 $18,385,190 $38,260,434
================= ================= ================ ============== ===============
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Participant Directed (Cont'd) Directed
------------------------------- ---------------------
Balanced Loan DRI Common
Fund Fund Stock Fund
--------------- -------------- ---------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $1,622,941 - $ 16,438,062
Dividend income 1,345,653 8,464,306
Interest and other income 5,021 318,664 24,584
--------------- -------------- ---------------------
Total investment income 2,973,615 318,664 24,926,952
--------------- -------------- ---------------------
Contributions:
Participant (Note 1) 2,000,025
Participating companies (Note 1) 8,363,366
--------------- -------------- ---------------------
Total additions 4,973,640 318,664 33,290,318
--------------- -------------- ---------------------
Benefits paid to participants 1,594,519 139,348 14,895,202
Administrative expenses 12,025 8,190 99,149
--------------- -------------- ---------------------
Total deductions 1,606,544 147,538 14,994,351
--------------- -------------- ---------------------
Net increase/(decrease) before transfers 3,367,096 171,126 18,295,967
Interfund transfers, net 4,530,386 (1,142,676) 490,925
Transfer of participants' assets to/(from)
the Plan (to)/from other plans: 154,632
--------------- -------------- ---------------------
Net increase/(decrease) 7,897,482 (971,550) 18,941,524
Net assets available for benefits:
Beginning of year 11,936,461 4,897,736 119,094,472
--------------- -------------- ---------------------
End of year $19,833,943 $ 3,926,186 $ 138,035,996
=============== ============== =====================
</TABLE>
F-19
<PAGE>
8. PLAN INTEREST IN THE CERTUS STABLE VALUE FUND
The Plan's investments are in a Master Trust which was established for
the investment of assets for the Plan and several other Company
sponsored plans (the Virginia Power Hourly Employee Savings Plan and
the Dominion Subsidiary Savings Plan). The assets of the Master Trust
are held by Mellon Bank. As of December 31, 1997 and 1996, the assets
of the Master Trust were separately maintained by each Company
sponsored plan, with the exception of the Certus Stable Value Fund
(Certus Fund). As of December 31, 1997 and 1996, the Plan's interest in
the net assets of the Certus Fund was approximately 70% and 69%,
respectively. Investment income and administrative expenses relating to
the Certus Fund are allocated to the individual plans based upon
average monthly balances invested by each Plan.
The following table presents the fair value of the undivided
investments in the Certus Fund:
December 31,
Investments at fair value: 1997 1996
------------------------------------
Guaranteed Investment Contracts $ 58,085,100 $ 52,832,197
Common/collective trust 7,012,518 5,098,631
----------------- -----------------
Total $ 65,097,618 $ 57,930,828
================= =================
Investment income for the
Certus Stable Value December 31,
Fund is as follows: 1997 1996
------------------------------------
Net appreciation in fair
value of investments $ 426,972 $ 792,346
Interest 3,883,054 1,928,461
----------------- -----------------
Total $ 4,310,026 $ 2,720,807
================= =================
9. VALUATION OF INVESTMENT CONTRACTS
Effective June 1, 1996, the Plan adopted the provisions of AICPA
Statement of Position 94-4, "Reporting of Investment Contracts Held by
Health and Welfare Benefit Plans and Defined-Contribution Pension
Plans". The Plans investment contracts are fully-benefit responsive and
have been presented on the financial statements at contract value. The
Plan's portion of the contracts have an estimated value of $44,875,042
and $39,404,775 at December 31, 1997 and 1996, respectively. The
underlying investment contracts are carried at variable and fixed rates
with expiration dates through 2007. The variable rates are reviewed and
adjusted quarterly. The average yield on the contracts are estimated at
6.57% and 6.54% at December 31, 1997 and December 31, 1996.
10. TAX STATUS
The Plan is a qualified employees' profit sharing trust under Sections
401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt
from Federal income taxes under Section 501(a). Pursuant to Section
402(a) of the Internal Revenue Code, a participant is not taxed on the
income and pre-tax contributions allocated to the participant's account
until such time as the participant or the participant's beneficiaries
receive distributions from the Plan.
The Plan obtained its latest determination letter on November 9, 1993,
in which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving the
determination letter. However, the Company believes that the Plan is
currently designed and operating in compliance with the applicable
requirements of the Internal Revenue Code.
F-20
<PAGE>
11. SUBSEQUENT EVENT
During the first quarter of 1998, the Board of Directors of the Company
approved an amendment to the Plan that adopts a KSOP provision
(combines the features of a 401K and an Employee Stock Ownership Plan)
effective May 1, 1998. The KSOP allows participants the choice of (1)
receiving cash dividends paid on vested shares held in their DRI Common
Stock Fund or (2) continuing to reinvest the dividends in the fund.
In addition, effective May 1, 1998, the new maximum contribution
rates for hourly employees are 15 percent for pre-tax; 20 percent for
after-tax, and 2 to 20 percent for combined contributions.
F-21
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
Current
Description Cost Value
- -------------------------------------------------------- ----------------------- ------------------------
<S> <C>
Dominion Resources, Inc., Common Stock $ 209,371,600 $ 227,358,045
----------------------- ------------------------
Interest in Certus Stable Value Fund
Certus Stable Value Fund 44,640,390 44,640,390
----------------------- ------------------------
Common/Collective Trusts
DRI Common Stock Fund 451,360 451,360
Loan Fund 112,524 112,524
Mellon S&P 500 Index Daily Fund 82,349,304 82,903,904
----------------------- ------------------------
82,913,188 83,467,788
----------------------- ------------------------
Mutual Funds
Crabbe Huson Equity Fund Inc. 17,196,836 16,949,424
Dreyfus Balanced Fund Inc. 47,162,591 47,064,871
Premier Managed Income Fund 3,171,878 3,176,350
Templeton Foreign Fund Inc. 11,352,747 11,224,996
Warburg Pincus Emerging Growth Fund 22,384,540 22,681,072
----------------------- ------------------------
101,268,592 101,096,713
----------------------- ------------------------
Loans to Participants 9,620,638 9,620,638
----------------------- ------------------------
Total Assets Held for Investment $ 447,814,408 $ 466,183,574
======================= ========================
</TABLE>
F-22
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
The assets of the Dominion Resources, Inc. Employee Savings Plan were combined
with the assets of the Virginia Power Hourly Employee Savings Plan and the
Dominion Subsidiary Savings Plan in a master trust for investment purposes until
June 1, 1996. Effective June 1, 1996, a new master trust was established which
does not combine the assets of the Dominion Resources, Inc. Employee Savings
Plan with the assets of the Virginia Power Hourly Employee Savings Plan and the
Dominion Subsidiary Savings Plan, except for the Certus Stable Value Fund. Such
schedules report the 5% transactions, which transpired in 1997 for the master
trusts, were filed in paper format as Exhibit 99(i).
F-23
<PAGE>
Exhibit 99(ii)
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-09167 of Dominion Resources, Inc. on Form S-8 of our report dated May 29,
1998, appearing in this Annual Report on Form 11-K of Dominion Resources, Inc.
Employee Savings Plan for the year ended December 31, 1997.
DELOITTE & TOUCHE LLP
Richmond, Virginia
June 10, 1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One):
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934.
For the fiscal year ended December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from __________ to ___________
Commission File number 333-09167
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Dominion Subsidiary Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
DOMINION RESOURCES, INC.
P. O. Box 26532
901 East Byrd Street - Suite 1700
Richmond, Virginia 23261-6111
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN.
FINANCIAL STATEMENTS
TABLE OF CONTENTS
Pages
Independent Auditors' Report F-2
Financial Statements:
Statements of Net Assets Available for
Benefits as of December 31, 1997 and 1996 F-3
Statements of Changes in Net Assets Available
for Benefits for the Years Ended December 31,
1997, 1996 and for the period October 1, 1995
(Inception) to December 31, 1995 F-4
Notes to Financial Statements F-5 - F-21
Supplemental Schedules as of December 31, 1997:
Item 27a - Schedule of Assets Held for Investment
Purposes F-22
Item 27d - Schedule of Reportable Transactions F-23
Schedules Omitted:
The following schedules are omitted because of the absence of the conditions
under which they are required, or because the required information is included
in the financial statements or notes thereto:
Schedules I, II and III.
F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Organization and Compensation Committee of the
Board of Directors of Dominion Resources, Inc.
We have audited the accompanying financial statements of the Dominion Subsidiary
Savings Plan (the Plan) as of December 31, 1997 and 1996 and for the years ended
December 31, 1997 and 1996 and the period October 1, 1995 (inception) to
December 31, 1995, listed in the Table of Contents on page F-1. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 1997
and 1996, and the changes in net assets available for plan benefits for the
years ended December 31, 1997 and 1996 and the period October 1, 1995 to
December 31, 1995 in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 1997 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
As discussed in Note 10, the accompanying 1996 financial statements have been
restated to reflect an adjustment for a transfer of plan assets.
Richmond, Virginia
May 29, 1998
F-2
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
ASSETS 1997 1996
------ ---------------- -----------------------
(As Restated -
See Note 10)
---------------- -----------------------
<S> <C>
Investments:
Dominion Resources, Inc., Common Stock $1,531,994 $ 345,307
Common/Collective Trusts 1,489,609 686,176
Mutual Funds 2,079,050 794,651
Loans To Participants at Face Value 231,367 4,001
---------------- -----------------------
Total Investments 5,332,020 1,830,135
Receivables:
Interest 4,657 4,503
Contributions:
Participants 47,803 30,679
Participating companies 14,299 11,025
---------------- -----------------------
Total receivables 66,759 46,207
Other 3,777 4,859
---------------- -----------------------
Total assets 5,402,556 1,881,201
---------------- -----------------------
LIABILITIES
Other Liabilities 13,606
---------------- -----------------------
Net Assets Available for Benefits $5,402,556 $1,867,595
================ =======================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
For the Period October 1, 1995
For the Years (Inception) to
Ended December 31 December 31,
--------------------------------------------------------------------
1997 1996 1995
----------------- -------------------------- -----------------------
<S> <C>
Investment income: (As Restated -
See Note 10)
Dividends $ 108,309 $ 15,570 $ 75
Interest and other 63,535 2,589 366
Net appreciation in fair value
of investments 577,340 29,599 363
----------------- -------------------------- -----------------------
Total investment income 749,184 47,758 804
Contributions:
Participants 1,080,983 625,638 59,725
Participating companies 397,339 191,750 26,161
----------------- -------------------------- -----------------------
Total additions 2,227,506 865,146 86,690
----------------- -------------------------- -----------------------
Benefits paid to participants 277,929 118,266
Administrative expense 6,314 2,781
----------------- -------------------------- -----------------------
Total Deductions 284,243 121,047
----------------- -------------------------- -----------------------
Net increase before transfer 1,943,263 744,099 86,690
Transfer of participants' assets
to the Plan from other plans 1,591,698 1,008,659 28,147
Net assets available for benefits:
Beginning of year 1,867,595 114,837
----------------- -------------------------- -----------------------
End of year $5,402,556 $1,867,595 $114,837
================= ========================== =======================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. DESCRIPTION OF PLAN
The following description of the Dominion Subsidiary Savings Plan ( the
"Plan") provides only general information. Participants should refer to
the Plan document for a more complete description of the Plan's
provisions.
a. GENERAL - The Plan is a defined contribution pension plan
covering all employees of Dominion Land Management Company;
Carthage Energy Services, Inc.; Waterford Management
Company; Stonehouse Management Company; Saxon Mortgage,
Inc.; Meritech Mortgage Services, Inc.; America's
MoneyLine, Inc.; Mortgage Finance, Inc.; Governor's Land
Management Company, Inc.; Old North State Management Company;
Dominion Appalachian Development, Inc,; and Wolverine Gas
and Oil Company, Inc. Employees are eligible who have
six months of service and are age 18 or older and are
scheduled to work or actually work at least 1,000 hours a
year as a regular full-time employee or part-time
employee. Dominion Capital, Inc. (the "Company"), a
wholly-owned subsidiary of Dominion Resources (DRI), is
the designated Plan sponsor and fiduciary . DRI is the
plan administrator. Mellon Bank serves as the trustee of
the Plan. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
b. CONTRIBUTIONS - Prior to June 1, 1996:
Under the terms of the Plan, participants could make
contributions to the Plan with before-tax dollars.
A maximum of 10% of the participant's eligible earnings could
be invested in the Plan. The Participating Companies
contribute a matching amount equivalent to 50% of each
participant's contributions, not to exceed 3% of the
participant's eligible earnings, which is used to purchase
Dominion Resources common stock.
Effective June 1, 1996:
A maximum of 17% of the participant's eligible earnings can be
invested in the Plan. Of this 17%, up to 12% can be invested
on a tax-deferred basis. The Participating Companies
contribute a matching amount equivalent to 50% of each
participant's contributions, not to exceed 3% of the
participant's eligible earnings, which is used to purchase
Dominion Resources common stock.
c. PARTICIPANT ACCOUNTS - Each participant's account is credited
with the participant's contributions and withdrawals, as
applicable, and allocations of (a) the Company's contributions
and (b) Plan earnings, and debited with an allocation of
administrative expenses. Allocations are based on participant
earnings or account balances, as defined. Forfeited balances
of terminated participants' nonvested accounts are used to
reduce future Company contributions. The benefit to which a
participant is entitled is the benefit that
can be provided from the participant's account.
d. PLAN PARTICIPANTS - There were 422 and 203 participants
in the Plan as of December 31, 1997 and 1996, respectively.
e. VESTING - Prior to June 1, 1996:
Participants become vested in their own contributions
immediately and in the Participating Companies' matching
contributions after
F-5
<PAGE>
three years of vesting services. Matching contributions vest
immediately when the participants meet any one of the
following criteria; reach the age of 55, retire, die while
employed by the Participating Company, become totally and
permanently disabled as determined by the Company or lose
his/her job due to a Company-ordered reduction in force.
Effective June 1, 1996:
Participants become vested in their own contributions and the
earnings on these amounts immediately and in the Participating
Companies' matching contributions and earnings after 3 years
of service.
f. INVESTMENT OPTIONS - Upon enrollment in the Plan, a
participant may direct employee contributions in any option
(except the loan fund) in 1% increments totaling to 100%.
Changes in investment options may be made at any time and
become effective with the subsequent pay period. Participants
can make unlimited transfers among existing fund balances.
Participating Companies' matching contributions are originally
invested in DRI Common Stock. However, participants who are
under age 50 may transfer 50% of the value of the stock in the
Company Match Account into another investment option, while
participants who are age 50 and over may transfer 100% of the
value of the Company Match Account.
Prior to June 1, 1996:
The Plan provides for employee contributions to be invested in
the following funds:
Dominion Resources, Inc. (DRI) Common Stock Fund - All
investments are in DRI Common Stock.
Interest-Bearing Fund - This fund's primary investments are in
high quality fixed income securities.
Balanced Fund - Thirty percent of this fund is invested in
equity securities and the residual is invested in fixed income
securities.
America's Utility Fund - Investments are in the common stock
of electric, gas and telephone utilities. America's Utility
Fund is sponsored and administered by a subsidiary of Dominion
Resources.
Equity Index Fund - The fund invests primarily in the 500
stocks of the S&P 500 and may also invest in exchange traded
options and financial futures.
Loan Fund - Participants are allowed to borrow against their
vested balance and repay the amount over a one to five year
period.
Participating Companies' matching contributions are invested
only in the DRI Common Stock Fund and cannot be transferred to
other funds.
Effective June 1, 1996:
The Plan provides for employee contributions to be invested in
the following funds:
Dominion Resources, Inc. (DRI) Common Stock Fund - All
investments are in DRI Common Stock
F-6
<PAGE>
Certus Stable Value Fund - The fund invests in investment
contracts of insurance companies and commercial banks and U.S.
Government or agency backed bonds.
Premier Managed Income Fund - The fund invests mainly in
U. S. Government securities and corporate bonds, but may
also invest in foreign securities.
Dreyfus Balanced Fund, Inc. - The fund invests in equities,
fixed income securities and cash equivalents.
Equity Index Fund - The fund invests primarily in the 500
stocks of the S&P 500 and may also invest in exchange traded
options and financial futures.
The Crabbe Huson Equity Fund, Inc. - The fund may invest in
domestic and foreign securities.
Warburg Pincus Emerging Growth Fund - The fund invests in
equity securities of primarily domestic emerging growth
companies.
Templeton Foreign Fund - The fund invests primarily in foreign
securities.
Loan Fund - Participants are allowed to borrow against their
vested balance and repay the amount over a one to five year
period.
g. LOANS TO PARTICIPANTS - The Plan has an established loan
feature; however, loans were not available to participants
until June 1, 1996. Participants are eligible to secure loans
against their Plan assets. The maximum loan amount is the
lesser of:
o 50% of the vested account balance or
o $50,000 (reduced by the maximum outstanding
loan balance during the prior twelve months)
The loans are interest-bearing at one percentage point above
the prime rate of interest. The rate is determined every
quarter, however, the rate is fixed at the inception of the
loan for the life of the loan.
Participants make repayments to the Plan on a monthly basis.
Any defaults in loans result in a reclassification of the
remaining loan balances as taxable distributions to the
participants.
h. PAYMENT OF BENEFITS - On termination of service, a participant
may elect to receive either a lump-sum amount equal to the
value of the participant's vested interest in his or her
account, or annual installments over a ten year period. There
were no amounts payable to such participants at December 31,
1997 and 1996
i. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from those estimates.
F-7
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. VALUATION OF INVESTMENTS:
(1) Stock Fund - the investments of the Stock Fund are
stated at fair value based on closing sales prices
reported on recognized securities exchanges on the
last business day of the year, or for listed
securities having no sales reported and for unlisted
securities, upon the last reported bid prices on that
date. The mutual funds are valued at quoted market
prices which represent the net asset values of shares
held by the Plan at year-end.
(2) Common/Collective Trusts - Investments in
common/collective trust funds (funds) are stated at
estimated fair values, which have been determined
based on the unit values of the funds. Unit values
are determined by the bank sponsoring such funds by
dividing the fund's net assets by its units
outstanding at the valuation dates.
(3) Investment Contracts - The guaranteed investment
contracts within the Certus Stable Value Fund are
valued at contract value. Contract value represents
contributions made under the contract, plus earnings,
less Plan withdrawals and administrative expense.
(4) Mutual Funds - Investments in mutual funds are valued
at quoted market prices which represent the net asset
values of shares held by the Plan at year-end.
(5) Loans to Participants - The loans to participants are
valued at cost plus accrued interest which
approximates fair value.
(b) INVESTMENT INCOME - Dividend income is recognized on the
ex-dividend date.
(c) EXPENSES - The Plan's expenses are accrued as incurred and
paid by the Plan, as provided by the Plan document.
3. INVESTMENTS EXCEEDING 5% OF NET ASSETS
The following table represents the fair value of investments exceeding 5% of the
Plan's net assets at each year end:
<TABLE>
<CAPTION>
1997 1996
(As Restated -
See Note 10)
------------------------ ------------------------
<S> <C>
Investment at Fair Value as Determined
by Quoted Market Price:
DRI Common Stock $1,531,994 $345,307
Dreyfus Balance 627,790 264,502
Crabbe Huson Equity 549,158 170,022
Templeton Foreign 96,963
Warburg Pincus Emerging Growth 537,412 215,027
======================== ========================
$3,246,354 $1,091,821
======================== ========================
Investments at Estimated Fair Value:
Certus Stable Value $625,665 $303,769
Mellon EB Daily Liquidity Index 844,580 309,981
======================== ========================
$1,470,245 $613,750
======================== ========================
</TABLE>
F-8
<PAGE>
4. NET APPRECIATION IN FAIR VALUE OF INVESTMENTS
The Plan's investments (including investments bought, sold, as well as held
during the year) appreciated in value by $577,340 in 1997 and $29,599 in 1996,
as follows:
<TABLE>
<CAPTION>
1997 1996 1995
--------------------- -------------------- ---------------------
<S> <C>
a. Realized Gains/(Loss)
Investment at Fair Value as
Determined by Quoted Market
Price:
Common Stock $ -4,600 $ -132
Mutual Funds 252,293 13,230
--------------------- -------------------- ---------------------
247,693 13,098
Investments at Estimated
Fair Value:
Common/Collective Trust Funds 12,752 153
--------------------- -------------------- ---------------------
Net change in fair value $260,445 $13,251
===================== ==================== =====================
b. Unrealized Gains/(Loss)
Investment at Fair Value as
Determined by Quoted Market Price:
Common Stock $191,388 $ 218 $161
Mutual Funds -23,397 4,230 202
----------------------------------------------------------------------
167,991 4,448 363
Investments at Estimated
Fair Value:
Common/Collective Trust Funds 148,904 11,900
--------------------- -------------------- ---------------------
Net change in fair value $316,895 $16,348 $363
===================== ==================== =====================
</TABLE>
5. CHANGE IN TRUSTEE
Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the
Trustee of the Plan. The prior Trustee was Signet Trust Company with
respect to the DRI Common Stock, America's Utility, Equity Index, and
Balanced Fund. NationsBank served as Trustee of the Plan with respect
to the Interest Bearing Fund.
F-9
<PAGE>
6. PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has
the right under the Plan to discontinue its contributions at any time
and to terminate the Plan subject to the provisions set forth in ERISA.
In the event of any termination of the Plan, or upon complete or
partial discontinuance of contributions, the accounts of each affected
participant shall become fully vested.
7. BY FUND INFORMATION
The net assets available for benefits on a by fund basis and the
changes in net assets available for benefits on a by fund basis are as
follows:
F-10
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Net Assets Available
for Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Participant Directed
----------------------------------------------------------------------
DRI Common Certus Stable Dreyfus
Assets Total Stock Fund Value Fund Balance Fund
- ------
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments:
Common Stock $1,531,994 $841,960
Common/Collective Trust 1,489,609 10,695 $625,665
Mutual Funds 2,079,050 $627,790
Loans Receivable 231,367
---------------- --------------------- --------------------- ------------------------
Total Investments 5,332,020 852,655 625,665 627,790
Receivables:
Interest Receivable 4,657 64 3,271
Contribution Receivable:
Participants 47,803 4,671 4,565 6,350
Participating companies 14,299
---------------- --------------------- --------------------- ------------------------
Total receivables 66,759 4,735 7,836 6,350
Other 3,777 141
---------------- --------------------- --------------------- ------------------------
Total Assets 5,402,556 857,531 633,501 634,140
---------------- --------------------- --------------------- ------------------------
Other Liabilities
---------------- --------------------- --------------------- ------------------------
Net Assets Available for Benefits $5,402,556 $857,531 $633,501 $634,140
================ ===================== ===================== ========================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Participant Directed
------------------------------------------
Mellon EB
Daily Liquidity Crabbe Huson
Assets Index Fund Equity Fund
- ------
- --------------------------------------------------------------------------------
<S> <C>
Investments:
Common Stock
Common/Collective Trust $844,580
Mutual Funds $549,158
Loans Receivable
-------------------- -------------------
Total Investments 844,580 549,158
Receivables:
Interest Receivable
Contribution Receivable:
Participants 9,721 8,306
Participating companies
-------------------- -------------------
Total receivables 9,721 8,306
Other 559
-------------------- -------------------
Total Assets 854,301 558,023
-------------------- -------------------
Other Liabilities
-------------------- -------------------
Net Assets Available for Benefits $854,301 $558,023
==================== ===================
</TABLE>
F-11
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Net Assets Available
For Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Participant Directed (Cont'd)
---------------------------------------------------------------------------------
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan
Assets Income Fund Fund Growth Fund Fund
---------------- ----------------- ------------------------ -----------------
<S> <C>
Investments:
Common Stock
Common/Collective Trust $511
Mutual Funds $111,431 $253,259 $537,412
Loans Receivable 231,367
---------------- ----------------- ------------------------ -----------------
Total Investments 111,431 253,259 537,412 231,878
Receibables:
Interest Receivable 1,252
Contribution Receivable:
Participant 1,230 4,807 8,153
Participating Companies
---------------- ----------------- ------------------------ -----------------
Total receivables 1,230 4,807 8,153 1,252
Other -83 3,003
---------------- ----------------- ------------------------ -----------------
Total Assets 112,661 258,066 545,482 236,133
---------------- ----------------- ------------------------ -----------------
Other Liabilities
---------------- ----------------- ------------------------ -----------------
Net assets available for
benefits $112,661 $258,066 $545,482 $236,133
================ ================= ======================== =================
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------
Non-Participant
Directed
--------------------------
DRI Common
Assets Stock Fund
--------------------------
<S> <C>
Investments:
Common Stock $690,034
Common/Collective Trust 8,158
Mutual Funds
Loans Receivable
--------------------------
Total Investments 698,192
Receibables:
Interest Receivable 70
Contribution Receivable:
Participant
Participating Companies 14,299
--------------------------
Total receivables 14,369
Other 157
--------------------------
Total Assets 712,718
--------------------------
Other Liabilities
--------------------------
Net assets available for
benefits $712,718
==========================
</TABLE>
F-12
<PAGE>
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available
For Benefits by Fund
December 31, 1996 (As Restated)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Participant Directed
----------------------------------------------------------------------
DRI Common Certus Stable Dreyfus
Assets Total Stock Fund Value Fund Balance Fund
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments:
Common Stock $345,307 $172,704
Common/Collective Trust 686,176 5,984 $303,769
Mutual Funds 794,651 $264,502
Loans Receivable 4,001
---------------- --------------------- -------------------- ------------------------
Total Investments 1,830,135 178,688 303,769 264,502
Receivables:
Interest Receivable 4,503 1,647 370
Contribution receivable:
Participant 30,679 2,377 4,672 4,587
Participating Companies 11,025
----------------------------------------------------------------------------------------
Total receivables 46,207 4,024 5,042 4,587
Other 4,859 2,636
---------------- --------------------- -------------------- ------------------------
Total Assets 1,881,201 182,712 308,811 271,725
---------------- --------------------- -------------------- ------------------------
Liabilities
Other Liabilities 13,606 8,058
================ ===================== ==================== ========================
Net Assets Available for Benefit $1,867,595 $174,654 $308,811 $271,725
================ ===================== ==================== ========================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Participant Directed
------------------------------------------
Mellon EB
Daily Liquidity Crabbe Huson
Assets Index Fund Equity Fund
- --------------------------------------------------------------------------
<S> <C>
Investments:
Common Stock
Common/Collective Trust $309,981
Mutual Funds $170,022
Loans Receivable
-------------------- -------------------
Total Investments 309,981 170,022
Receivables:
Interest Receivable
Contribution receivable:
Participant 6,094 5,052
Participating Companies
------------------------------------------
Total receivables 6,094 5,052
Other 172
-------------------- -------------------
Total Assets 316,075 175,246
-------------------- -------------------
Liabilities
Other Liabilities -224
==================== ===================
Net Assets Available for Benefit $316,299 $175,246
==================== ===================
</TABLE>
F-13
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Net Assets Available
For Benefits by Fund
December 31, 1996 (As Restated)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Participant Directed (Cont'd)
---------------------------------------------------------------------------------
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan
Assets Income Fund Fund Growth Fund Fund
--------------- ---------------- ----------------- -----------------
<S> <C>
Investments:
Common Stock
Common/Collective Trust $ 56,469
Mutual Funds $ 48,137 $96,963 $ 215,027
Loans Receivable 4,001
--------------- ---------------- ----------------- -----------------
Total Investments 48,137 96,963 215,027 60,470
Receivables:
Interest Receivable 15
Contribution receivable:
Participant 754 1,960 5,183
Participating Companies
--------------- ---------------- ----------------- -----------------
Total receivables 754 1,960 5,183 15
Other 813 1,238
--------------- ---------------- ----------------- -----------------
Total Assets 48,891 99,736 221,448 60,485
--------------- ---------------- ----------------- -----------------
Liabilities
Other Liabilities
--------------- ---------------- ----------------- -----------------
Net Assets Available for
Benefits $48,891 $99,736 $221,448 $60,485
=============== ================ ================= =================
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
Non-Participant Directed
----------------------
DRI Common
Assets Stock Fund
-----------------------
<S> <C>
Investments:
Common Stock $172,603
Common/Collective Trust 9,973
Mutual Funds
Loans Receivable
----------------------
Total Investments 182,576
Receivables:
Interest Receivable 2,471
Contribution receivable:
Participant
Participating Companies 11,025
----------------------
Total receivables 13,496
Other
----------------------
Total Assets 196,072
----------------------
Liabilities
Other Liabilities 5,772
----------------------
Net Assets Available for
Benefits $190,300
======================
</TABLE>
F-14
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Participant Directed
-------------------------------------------------------------------------------------
Certus Dreyfus Mellon EB Crabbe Templeton
DRI Common Stable Balanced Daily Liquidity Huson Foreign
Total Stock Fund Value Fund Fund Index Fund Equity Fund Income Fund
----- ------------ ---------- ------- --------------- ------------ -----------
<S> <C>
Investment Income:
Dividends $108,309 $29,906 $11,051 $13,791 $1,135 $6,835
Interest and Other 63,535 1,887 $42,949 3,162 723 506 338
Net appreciation in fair
value of investments 577,340 73,781 70,280 161,656 81,875 -394
------------------------------------------------------------------------------------------------
Total Investment Income 749,184 105,574 42,949 84,493 176,170 83,516 6,779
Contributions:
Participants 1,080,983 126,108 128,123 141,932 205,664 179,138 101,852
Participating Companies 397,339
Interfund Transfers, Net 0 -48,160 19,209 -44,913 -49,947 -19,689 -4,595
------------------------------------------------------------------------------------------------
Total Additions/(Subtractions) 2,227,506 183,522 190,281 181,512 331,887 242,965 104,036
------------------------------------------------------------------------------------------------
Distributions to Participants 277,929 29,816 132,462 17,352 26,789 23,404 3,731
Administrative Expense 6,314 -13 1,691 1,042 1,428 765 369
------------------------------------------------------------------------------------------------
Total deductions 284,243 29,803 134,153 18,394 28,217 24,169 4,100
------------------------------------------------------------------------------------------------
Net increase/(decrease) before
transfer 1,943,263 153,719 56,128 163,118 303,670 218,796 99,936
Transfer of Participants' Assets
To the Plan from other Plans
1,591,698 529,158 268,562 199,297 234,332 163,981 58,394
------------------------------------------------------------------------------------------------
Net Increase/(Decrease) 3,534,961 682,877 324,690 362,415 538,002 382,777 158,330
Net Assets Available
for Benefits:
Beginning of Year 1,867,595 174,654 308,811 271,725 316,299 175,246 99,736
-----------------------------------------------------------------------------------------------
End of Year $5,402,556 $857,531 $633,501 $634,140 $854,301 $558,023 $258,066
================================================================================================
</TABLE>
F-15
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Non-Participant
Participant Directed (Cont'd) Directed
----------------------------- ---------
Warburg
Pincus Premier
Emerging Managed Loan DRI Common
Growth Fund Income Fund Fund Stock Fund
------------ ----------- ------ ----------
<S> <C>
Investment Income:
Dividends $5,296 $40,295
Interest and Other $695 482 $9,902 2,891
Net appreciation in fair
value of investments 74,214 2,921 113,007
-------------------------------------------------------------
Total Investment Income 74,909 8,699 9,902 156,193
Contributions:
Participants 167,454 30,712
Participating Companies 397,339
Interfund Transfers, Net -11,338 19,217 152,530 -12,314
-------------------------------------------------------------
Total Additions/(Subtractions) 231,025 58,628 162,432 541,218
-------------------------------------------------------------
Distributions to Participants 22,173 16,594 -13,216 18,824
Administrative Expense 874 182 -24
-------------------------------------------------------------
Total Deductions 23,047 16,776 -13,216 18,800
-------------------------------------------------------------
Net increase/(decrease) before
transfer 207,978 41,852 175,648 522,418
Transfer of Participants' Assets To
the Plan from other Plans 116,056 21,918
-------------------------------------------------------------
Net Increase/(Decrease) 324,034 63,770 175,648 522,418
Net Assets Available for benefits:
Beginning of Year (as restated) 221,448 48,891 60,485 190,300
-------------------------------------------------------------
End of Year $545,482 $112,661 $236,133 $712,718
=============================================================
</TABLE>
F-16
<PAGE>
DOMINION RESOURCES, INC.
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996 (As Restated)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Participant Directed
-----------------------------------------------------------------------
Interest America's Equity
DRI Common Bearing Utility Index
Total Stock Fund Fund Fund Fund
--------------- ------------------- ---------------- ---------------- ----------------
<S> <C>
Investment Income:
Dividends $ 15,570 $ 3,810 $ 186
Interest and Other 2,589 148 $ 24 $ 443
Net Appreciation(Depreciation) in
fair value of investments 29,599 34 253 -185
--------------- ------------------- ---------------- ---------------- ----------------
Total Investment Income 47,758 3,992 277 186 258
Contributions:
Participants 625,638 109,474 3,456 24,784 83,443
Participating Companies 191,750
-
Interfund Transfers, Net -48
Transfer to New Trust Funds - -14,367 -34,979 -106,948
--------------- ------------------- ---------------- ---------------- ----------------
Total Additions/(Subtractions) 865,146 113,418 -10,634 -10,009 -23,247
------------------------------------------------------------------------------------------
Distributions to Participants 118,266 22,179 115
Administrative Expense 2,781 176
--------------- ------------------- ---------------- ---------------- ----------------
Total Deductions 121,047 22,355 115
--------------- ------------------- ---------------- ---------------- ----------------
Net increase(decrease) before
transfer 744,099 91,063 -10,634 -10,124 -23,247
Transfer of Participants' Assets
To the Plan from other Plans 1,008,659 71,555
------------------------------------------------------------------------------------------
Net Increase/(Decrease) 1,752,758 162,618 -10,634 -10,124 -23,247
Net Assets Available for
Benefits:
Beginning of Year 114,837 12,036 10,634 10,124 23,247
--------------- ------------------- ---------------- ---------------- ----------------
End of Year $1,867,595 $ 174,654 $ - $ - $ -
=============== =================== ================ ================ ================
</TABLE>
F-17
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996 (As Restated)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Participant Directed (Cont'd)
----------------------------------------------------------------------------------------
Certus Mellon EB
Balanced Stable Dreyfus Daily Liquidity Crabbe Huson
Fund Value Fund Balance Fund Index Fund Equity Fund
---------------- ----------------- ---------------- ---------------- ---------------
<S> <C>
Investment Income:
Dividends $ 555 $2,205 $ 2,179 $ 192
Interest and Other $ 1,614 3
Net Appreciation (Depreciation)
in fair value of investments 11,138 11,800 3,062
---------------- ----------------- ---------------- ---------------- --------------
Total Investment Income 555 1,614 13,343 13,982 3,254
Contributions:
Participants 62,631 70,292 43,275 71,049 59,590
Participating Companies
Interfund Transfers, Net -211 -1,486 -4,281 -507
Transfer to New Trust Funds -95,668 14,367 130,647 106,948
---------------- ----------------- ---------------- ---------------- --------------
Total Additions/(Subtractions) -32,482 86,062 185,779 187,698 62,337
---------------- ----------------- ---------------- ---------------- --------------
Distributions to Participants 153 7,462 22,021 32,989
Administrative Expense 436 606 544 242
---------------- ----------------- ---------------- ---------------- --------------
Total Deductions 153 7,898 22,627 33,533 242
---------------- ----------------- ---------------- ---------------- --------------
Net increase /(decrease) before -32,635 78,164 163,152 154,165 62,095
transfer
Transfer of Participants' Assets
To the Plan from other Plans 230,647 108,573 162,134 113,151
---------------------------------------------------------------------------------------
Net Increase/(Decrease) -32,635 308,811 271,725 316,299 175,246
Net Assets Available for Benefits:
Beginning of Year 32,635 - -
---------------- ----------------- ---------------- ---------------- --------------
End of Year $ $308,811 $271,725 $316,299 $ 175,246
================ ================= ================ ================ ==============
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
Participant Directed (Cont'd)
-----------------------------
Templeton
Foreign
Income Fund
-------------------
<S> <C>
Investment Income:
Dividends $ 502
Interest and Other
Net Appreciation (Depreciation)
in fair value of investments 1,241
---------------------
Total Investment Income 1,743
Contributions:
Participants 26,972
Participating Companies
Interfund Transfers, Net -63
Transfer to New Trust Funds
---------------------
Total Additions/(Subtractions) 28,652
---------------------
Distributions to Participants
Administrative Expense 118
---------------------
Total Deductions 118
---------------------
Net increase /(decrease) before 28,534
transfer
Transfer of Participants' Assets
To the Plan from other Plans 71,202
---------------------
Net Increase/(Decrease) 99,736
Net Assets Available for Benefits:
Beginning of Year -
---------------------
End of Year $ 99,736
=====================
</TABLE>
F-18
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996 (As Restated)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Non-Participant
Participant Directed (Cont'd) Directed
--------------------------------------------------- ---------------------
Warburg Pincus
Premier
Emerging Managed Loan DRI Common
Growth Fund Income Fund Fund Stock Fund
---------------- ------------------- ------------ -------------------
<S> <C>
Investment Income:
Dividends $ 221 $ 5,720
Interest and Other $ 133 224
Net Appreciation (Depreciation) in
fair value of investments $2,087 117 52
---------------- ------------------- ------------ ------------------
Total Investment Income 2,087 338 133 5,996
Contributions:
Participants 58,793 11,879
Participating Companies 191,750
Interfund Transfers, Net -499 -42 7,208 -71
Transfer to New Trust Funds
---------------- ------------------- ------------ ------------------
Total Additions/(Subtractions) 60,381 12,175 7,341 197,675
---------------- ------------------- ------------ ------------------
Distributions to Participants 74 33,273
Administrative Expense 318 78 263
---------------- ------------------- ------------ ------------------
Total Deductions 392 78 33,536
------------------------------------------------------------------------
Net increase /(decrease) before 59,989 12,097 7,341 164,139
transfer
Transfer of Participants' Assets
To the Plan from other Plans 161,459 36,794 53,144
------------------------------------------------------------------------
Net Increase/(Decrease) 221,448 48,891 60,485 164,139
Net Assets Available for
Benefits:
Beginning of Year - - 26,161
---------------- ------------------- ------------ ------------------
End of Year $ 221,448 $ 48,891 $60,485 $ 190,300
================ =================== ============ ==================
</TABLE>
F-19
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits by Fund
For Period October 1, 1995 (Inception) to December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Participant Directed
------------------------------------------------------------------------
Interest America's Equity
DRI Common Bearing Utility Index
Total Stock Fund Fund Fund Fund
------------------ ------------------- ---------------- ---------------- ----------------
<S> <C>
Investment Income:
Dividends $75 $ 75
Interest and Other 366 $ 27
Net appreciation in fair value of
investments 363 $161 43
-------------------------------------------------------------------------------------------
Total Investment Income 804 161 27 118
Contributions:
Participants 59,725 7,211 1,194 6,458 $22,418
Participating Companies 26,161
------------------ ------------------- ---------------- ---------------- ----------------
Total additions 86,690 7,372 1,221 6,576 22,418
Total deductions
-------------------------------------------------------------------------------------------
Net increase before transfer 86,690 7,372 1,221 6,576 22,418
Transfer of participants' assets to
the Plan from other plans
28,147 4,664 9,413 3,548 829
Net Assets Available for
Benefits:
Beginning of Year
------------------ ------------------- ---------------- ---------------- ----------------
End of Year $114,837 $ 12,036 $10,634 $10,124 $23,247
================== =================== ================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Participant Non-Participant
Direct Directed
------------------ -------------------
Balanced DRI Common
Fund Stock Fund
---------------- -------------------
<S> <C>
Investment Income:
Dividends
Interest and Other $339
Net appreciation in fair value of
investments 159
--------------------------------------
Total Investment Income 498
Contributions:
Participants 22,444
Participating Companies $26,161
---------------- -------------------
Total additions 22,942 26,161
Total deductions
--------------------------------------
Net increase before transfer 22,942 26,161
Transfer of participants' assets to
the Plan from other plans
9,693
Net Assets Available for
Benefits:
Beginning of Year
---------------- -------------------
End of Year $32,635 $ 26,161
================ ===================
</TABLE>
F-20
<PAGE>
8. TAX STATUS
The Plan is a qualified employees' profit sharing trust under Sections
401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt
from Federal income taxes under Section 501(a). Pursuant to Section 402
(a) of the Internal Revenue Code, a participant is not taxed on the
income and contributions allocated to the participant's account until
such time as the participant or the participant's beneficiaries receive
distributions from the Plan.
The Plan obtained its latest determination letter on May 21, 1996, in
which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, no provision for income taxes has
been included in the Plan's financial statements.
9. VALUATION OF INVESTMENT CONTRACTS
Effective January 1, 1996, the Plan adopted the provision of AICPA
Statement of Position 94-4, "Reporting of Investment Contracts Held by
Health and Welfare Benefit Plans and Defined-Contribution Pension
Plans." The Plan's investment contracts are fully-benefit responsive
and have been presented on the financial statements at contract value.
The contract value is estimated at $655,057 and $80,418 at December 31,
1997 and December 31, 1996. The underlying investment contracts are
carried at variable and fixed rates with expiration dates through 2007.
The variable rates are reviewed and adjusted quarterly. The average
yield on the contracts are estimated at 6.57% and 6.54% at December 31,
1997 and December 31, 1996.
10. RESTATEMENT OF PRIOR YEAR
Subsequent to the issuance of the Company's 1996 financial statements,
the Company's management determined that a transfer of assets to the
plan was not reflected in the trustee statement, thus the amount was
not reflected within the financial statements. However, the amount
transferred was properly reflected within the participant accounts as
of December 31, 1996. As a result, the amount of transfers and assets
have been restated from the amounts previously reported to record the
transfer of assets in the proper period.
A summary of the effects of the restatement is as follows:
<TABLE>
<CAPTION>
As
Previously As
Reported Restated
-------- --------
<S> <C>
Assets at December 31, 1996 Investments:
DRI Common Stock $287,672 $345,307
Common/Collective Trusts 254,142 686,176
Mutual Funds 345,441 794,651
------- -------
Total Assets Restated at
December 31, 1996 $887,255 $1,826,134
======= =========
Transfers of assets to the plan
from other plans for the year
ended December 31, 1996 $69,780 $1,008,659
====== =========
</TABLE>
F-21
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
Current
Description Cost Value
------------------- ---------------------
<S> <C>
Dominion Resources, Inc., Common Stock $1,340,299 $ 1,531,994
------------------- ---------------------
Common/Collective Trusts
TBC Inc Pooled Employee Funds
Daily Liquidity Fund 19,364 19,364
Certus Stable Value Fund 625,665 625,665
Mellon S&P 500 Index Daily Fund 685,048 844,580
------------------- ---------------------
1,330,077 1,489,609
------------------- ---------------------
Mutual Funds
Crabbe Huson Equity Fund Inc. 586,402 549,158
Dreyfus Balanced Fund Inc. 633,119 627,790
Premier Managed Income Fund 108,868 111,431
Templeton Foreign Fund Inc. 271,112 253,259
Warburg Pincus Emerging Growth Fund 497,888 537,412
------------------- ---------------------
2,097,389 2,079,050
------------------- ---------------------
Participant Loans bearing interest
At 9.5% with maturities in 60 months 231,367 231,367
- -
------------------- ---------------------
Total Assets Held for Investment $ 4,999,132 $ 5,332,020
=================== =====================
</TABLE>
F-22
<PAGE>
DOMINION SUBSIDIARY SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
Schedules that report the 5% transactions which transpired in 1997 for this
trust were filed in paper format as Exhibit 99 (iii).
F-23
Exhibit 99(iv)
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No. 33-
62705 of Dominion Resources, Inc. on Form S-8 of our report dated May 29, 1998,
appearing in this Annual Report on Form 11-K of Dominion Resources, Inc.
Dominion Subsidiary Savings Plan for the year ended December 31, 1997.
DELOITTE & TOUCHE LLP
Richmond, Virginia
June 10, 1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934.
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from __________ to ___________
Commission File number 333-09167
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Virginia Power
Hourly Employee Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
DOMINION RESOURCES, INC.
P. O. Box 26532
901 East Byrd Street - Suite 1700
Richmond, Virginia 23261-6111
<PAGE>
VIRGINIA POWER
HOURLY EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS
TABLE OF CONTENTS
Pages
-----
Independent Auditors' Report F-2
Financial Statements:
Statements of Net Assets Available for Benefits
as of December 31, 1997 and 1996 F-3
Statements of Changes in Net Assets Available
for Benefits for the Years Ended
December 31, 1997, 1996 and 1995 F-4
Notes to Financial Statements F-5 - F-21
Supplemental Schedules as of December 31, 1997:
Item 27a - Schedule of Assets Held for Investment
Purposes F-22
Item 27d - Schedule of Reportable Transactions F-23
Schedules Omitted:
The following schedules are omitted because of the absence of the conditions
under which they are required, or because the required information is included
in the financial statements or notes thereto:
Schedules I, II and III.
F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Organization and Compensation Committee of the
Board of Directors of Virginia Electric and Power Company
We have audited the accompanying financial statements of the Virginia Power
Hourly Employee Savings Plan (the Plan) as of December 31, 1997 and 1996 and for
each of the three years in the period ended December 31, 1997, listed in the
Table of Contents on page F-1. These financial statements are the responsibility
of the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 1997
and 1996, and the changes in net assets available for plan benefits for each of
the three years in the period ended December 31, 1997 in conformity with
generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
listed in the Table of Contents are presented for purposes of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 1997 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
Richmond, Virginia
May 29, 1998
F-2
<PAGE>
VIRGINIA POWER
HOURLY EMPLOYEE SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
ASSETS 1997 1996
- ------ --------------------- ---------------------
<S> <C>
Investments (Note 1 and 2):
Dominion Resources, Inc., Common Stock $ 71,021,169 $ 65,756,889
Common/Collective Trusts 4,189,191 1,117,091
Interest in Certus Stable Value Fund 18,587,458 17,778,061
Mutual Funds 12,388,533 4,095,047
Loans To Participants at Face Value 3,301,157 2,171,916
--------------------- ---------------------
Total Investments 109,487,508 90,919,004
Receivables:
Interest 97,259 94,358
Other 313,962 129,499
--------------------- ---------------------
Total Receivables 411,221 223,857
Cash 64 76
--------------------- ---------------------
Total Assets 109,898,793 91,142,937
--------------------- ---------------------
Liabilities - Other 376,182 2,055
--------------------- ---------------------
Net Assets Available for Benefits $ 109,522,611 $ 91,140,882
===================== =====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
VIRGINIA POWER
HOURLY EMPLOYEE SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
For the Years Ended December 31,
----------------------------------------------------------------------
1997 1996 1995
--------------------- --------------------- ---------------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 8,702,140 $ (2,576,111) $ 9,002,279
Dividend income 4,461,716 4,432,457 4,012,680
Interest and other income 1,370,147 868,746 285,800
--------------------- --------------------- ---------------------
Total investment income 14,534,003 2,725,092 13,300,759
Contributions:
Participant (Note 1) 7,954,739 7,393,173 6,814,194
Participating companies (Note 1) 3,138,250 3,223,090 3,144,158
--------------------- --------------------- ---------------------
Total additions 25,626,992 13,341,355 23,259,111
--------------------- --------------------- ---------------------
Benefits paid to participants 6,469,943 7,626,380 4,784,785
Administrative expenses 58,906 76,644 85,552
--------------------- --------------------- ---------------------
Total deductions 6,528,849 7,703,024 4,870,337
--------------------- --------------------- ---------------------
Net increase before transfers 19,098,143 5,638,331 18,388,774
Transfer of participants' assets
from the Plan to other plans (716,414) (2,088,502) (325,430)
--------------------- --------------------- ---------------------
Net increase 18,381,729 3,549,829 18,063,344
Net assets available for benefits:
Beginning of year 91,140,882 87,591,053 69,527,709
--------------------- --------------------- ---------------------
End of year $ 109,522,611 $ 91,140,882 $ 87,591,053
===================== ===================== =====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. DESCRIPTION OF PLAN
The following description of the Virginia Power Hourly Employee Savings
Plan (the Plan) provides only general information. Participants should
refer to the Plan document for a more complete description of the Plan's
provisions.
a. GENERAL - The Plan is a defined contribution pension plan covering all
full-time hourly employees of the Virginia Electric and Power Company
(the Company) who have one year of service and are age 18 or older.
The Company, a wholly-owned subsidiary of Dominion Resources, Inc.
(DRI), is the designated Plan sponsor, fiduciary and administrator.
Mellon Bank serves as the trustee of the Plan. The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
b. CONTRIBUTIONS -
Prior to June 1, 1996:
Under the terms of the Plan, participants could make contributions to
the Plan under the Regular Option and the Savings Plus Option. The
Regular Option allowed participants to make after-tax contributions to
the Plan. The Savings Plus Option allowed participants to contribute
to the Plan with before-tax dollars.
A maximum of 16% of the participant's eligible earnings could be
invested in the Plan. Of this 16%, up to 10% could be invested on a
tax-deferred basis under the Savings Plus Option. The Participating
Companies (noted in Note 1d) contributed a matching amount equivalent
to 50% of each participant's contributions, not to exceed 3% of the
participant's eligible earnings, which is used to purchase DRI common
stock.
Effective June 1, 1996:
A maximum of 17% of the participant's eligible earnings and 9% of
highly compensated employee's eligible earnings can be invested in the
Plan. Of the 17%, up to 12% can be invested on a tax-deferred basis.
The Participating Companies contribute a matching amount equivalent to
50% of each participant's contributions, not to exceed 3% of the
participant's eligible earnings, which was used to purchase DRI common
stock.
c. PARTICIPANT ACCOUNTS - Each participant's account is credited with the
participant's contributions and withdrawals, as applicable, and
allocations of (a) the Company's contributions and (b) Plan earnings,
and debited with an allocation of administrative expenses. Allocations
are based on participant earnings or account balances, as defined.
Forfeited balances of terminated participants' non-vested accounts are
used to reduce future Participating Companies' contributions. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's account.
d. PLAN PARTICIPANTS - Any subsidiary of DRI may adopt the Plan for the
benefit of its qualified hourly employees subject to approval of the
Board of Directors of the Company. Currently only Company employees
are participating in the Plan.
There were 3,054 and 3,134 participants in the Plan as of December 31,
1997 and 1996, respectively.
F-5
e. VESTING -
Prior to June 1, 1996:
Participants became vested in their own contributions immediately and
in the Participating Companies' matching contributions at the earlier
of (a) the beginning of the third year following the year in which the
contribution was made or (b) the date the participant completed five
years of service with the Company. Matching contributions vested
immediately for participants aged 55 or older.
Effective June 1, 1996:
Participants become vested in their own contributions and the earnings
on these amounts immediately, and in the participating companies'
matching contributions and earnings after 3 years of service. Matching
contributions vest immediately for participants aged 55 or older.
f. INVESTMENT OPTIONS -
Prior to June 1, 1996:
The Plan provided for employee contributions to be invested in the
following funds:
Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are
in DRI Common Stock or cash equivalent investments for partial shares.
Interest-Bearing Fund - This fund's focus was on preservation of
principal and the primary investments were in high quality fixed
income securities.
Loan Fund - Participants were allowed to borrow against their vested
balance and repay the amount over a three-or four-year period.
Participating Companies' matching contributions were invested only in
the DRI Common Stock Fund and could not be transferred to other funds.
Participants could have elected to have 50% of their contributions
invested in each of the funds (expect the Loan Fund) or to have 100%
invested in either fund.
Effective June 1, 1996:
The Plan provides for employee contributions to be invested in the
following:
(1) Common Stock:
Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are
in DRI Common Stock or cash equivalent investments for partial shares.
(2) Interest in Certus Stable Value Fund:
Certus Stable Value Fund - The fund invests in investment contracts of
insurance companies and commercial banks and U.S. Government or agency
backed bonds.
F-6
<PAGE>
(3) Mutual Funds:
Premier Managed Income Fund - The fund invests primarily in
investment-grade corporate and U.S. Government obligation and in
obligation having maturities of 10 years or less.
Dreyfus Balanced Fund, Inc. - The fund invests in equity and debt
securities of domestic and foreign issuers.
The Crabbe Huson Equity Fund, Inc. - The fund invests in common stock
that have large market capitalization.
Templeton Foreign Fund - The fund invests primarily in equity and debt
securities of companies and governments outside the U.S.
Warburg Pincus Emerging Growth Fund - The fund invests in equity
securities of primarily domestic emerging growth companies.
(4) Common/Collective Trust:
Equity Index Fund - The fund invests primarily in the 500 stocks of
the S&P 500 and may also invest in exchange traded options and
financial futures.
Upon enrollment in the Plan, a participant may direct employee
contributions in any option (except the loan fund) in 1% increments
totaling to 100%. Changes in investment options may be made at any
time and become effective with the subsequent pay period. Participants
can make unlimited transfers among existing funds.
Company matching contributions are automatically contributed into the
DRI Common Stock fund. However, participants who are under age 50 may
transfer 50% of the value of their Company Match Account into another
investment option, while participants who are age 50 and over may
transfer 100% of the value of the Company Match Account.
f. LOANS TO PARTICIPANTS - Participants are eligible to secure loans
against their plan assets and repay the amount over a one-to five-year
period. The maximum loan amount is the lesser of:
o 50% of the vested account balance
o $50,000 (reduced by the maximum outstanding loan balance during
the prior 12 months)
The loans are interest-bearing at one percentage point above the prime
rate of interest. The rate is determined every quarter; however, the
rate is fixed at the inception of the loan for the life of the loan.
Participants make repayments to the Plan on a monthly basis. Any
defaults in loans result in a reclassification of the remaining loan
balances as taxable distributions to the participants.
g. PAYMENT OF BENEFITS - Distributions from the Plan are recorded on the
valuation date when a participant's valid withdrawal request is
processed by the record keeper. On termination of service, a
participant may elect to receive either a lump-sum amount equal to the
value of the participant's vested interest in his or her account, or
defer the payment to a future time no later than the year in which the
participant attains age 70 1/2. There were no amounts payable to
participants at December 31, 1997 and 1996.
F-7
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. VALUATION OF INVESTMENTS:
(1) Stock Fund - The investments of the Stock Fund are stated at fair
value based on closing sales prices reported on recognized
securities exchanges on the last business day of the year.
(2) Mutual Funds - Investments in mutual funds are valued at quoted
market prices which represent the net asset values of shares held
by the Plan at year-end.
(3) Common/Collective Trusts - Investments in common/collective trust
funds (funds) are stated at estimated fair values, which have
been determined based on the unit values of the funds. Unit
values are determined by the bank sponsoring such funds by
dividing the fund's net assets by its units outstanding at the
valuation dates.
(4) Investment Contracts - The guaranteed investment contracts within
the Certus Stable Value Fund are valued at contract value.
Contract value represents contributions made under the contract,
plus earnings, less Plan withdrawals and administrative expenses.
b. INVESTMENT INCOME - Dividend income is recognized on the ex-dividend
date.
c. EXPENSES - The Plan's expenses are accrued as incurred and paid by the
Plan, as provided by the Plan document.
d. USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
3 CHANGE IN TRUSTEE
Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the Trustee
of the Plan. The prior Trustee was Signet Trust Company with respect to the
DRI Common Stock Fund. NationsBank served as Trustee of the Plan with
respect to the Interest Bearing Fund.
4. INVESTMENTS EXCEEDING 5% OF NET ASSETS
The following table represents the fair value of investments exceeding 5%
of the Plan's net assets at each year end:
Investment at Fair Value as Determined 1997 1996
----------- ----------
by Quoted Market Price:
DRI Common Stock $ 71,021,169 $ 65,756,889
F-8
<PAGE>
5. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The Plan's investments (including investments bought, sold, as well as held
during the year) appreciated (depreciated) in value by $8,702,140 in 1997,
($2,576,111) in 1996 and $9,002,279 in 1995, as follows:
<TABLE>
<CAPTION>
a. Realized Gain/(Loss) 1997 1996 1995
----------------- ------------------ ------------------
<S> <C>
Investment at fair value as determined
by quoted market price:
Common Stock $ 836,050 $ 275,244 $ 676,426
U.S. Treasury Notes - - 41,814
- - -
Interest in Certus Stable Value Fund 22 - -
Mutual Funds 1,076,392 115,613 -
----------------- ------------------ ------------------
1,912,464 390,857 718,240
Investments at estimated fair value:
Common/Collective Trust Funds 380,093 389,274 -
----------------- ------------------ ------------------
$ 2,292,557 $ 780,131 $ 718,240
================= ================== ==================
<CAPTION>
b. Unrealized Gain/(Loss) 1997 1996 1995
----------------- ------------------ ------------------
<S> <C>
Investment at fair value as determined
by quoted market price:
Common Stock $ 6,026,861 $ (3,435,255) $ 7,858,329
U.S. Treasury Bill - - 21,285
Interest in Certus Stable Value Fund - - -
Mutual Funds (468,411) 26,165 -
----------------- ------------------ ------------------
5,558,450 (3,409,090) 7,879,614
Investments at estimated fair value:
Common/Collective Trust Funds 851,132 52,848 404,425
----------------- ------------------ ------------------
$ 6,409,582 $ (3,356,242) $ 8,284,039
================= ================== ==================
<CAPTION>
c. Net Appreciation/(Depreciation)
in Fair Value of Investment 1997 1996 1995
----------------- ------------------ ------------------
<S> <C>
Investment at fair value as determined
by quoted market price:
Common Stock $ 6,862,912 $ (3,160,011) $ 8,534,755
U.S. Treasury Bill - - 21,285
U.S. Treasury Notes - - 41,814
Interest in Certus Stable Value Fund 22 - -
Mutual Funds 607,981 141,778 -
----------------- ------------------ ------------------
7,470,915 (3,018,233) 8,597,854
Investments at estimated fair value:
Common/Collective Trust Funds 1,231,225 442,122 404,425
----------------- ------------------ ------------------
$ 8,702,140 $ (2,576,111) $ 9,002,279
================= ================== ==================
</TABLE>
F-9
<PAGE>
6. PLAN TERMINATION
Although it has not expressed any intention to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions set forth in ERISA. In the
event of any termination of the Plan, or upon complete or partial
discontinuance of contributions, the accounts of each affected participant
shall become fully vested.
7. BY FUND INFORMATION
The net assets available for benefits on a by fund basis and the changes in
net assets available for benefits on a by fund basis are as follows:
F-10
<PAGE>
Virginia Power Hourly Employee Saving Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------------
Mellon EB
DRI Common Certus Stable Dreyfus Daily Liquidity Crabbe Huson
Assets Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund
- ------ ------------- ------------ ------------ ------------ --------------- -------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $ 71,021,169 $31,903,015
Common/collective trust 4,189,191 $ 4,132,879
Interest in Certus Stable Value Fund 18,587,458 $18,587,458
Mutual funds 12,388,533 $2,106,357 $ 3,542,278
Loans 3,301,157
------------- ------------ ------------ ----------- ------------ ------------
Total investments 109,487,508 31,903,015 18,587,458 2,106,357 4,132,879 3,542,278
Receivables:
Interest 97,259 483 95,918
Other 313,962 140,027
------------- ------------ ------------ ----------- ------------ ------------
Total receivables 411,221 140,510 95,918 - - -
Cash 64 50
------------- ------------ ------------ ----------- ------------ ------------
Total assets 109,898,793 32,043,525 18,683,376 2,106,357 4,132,929 3,542,278
------------- ------------ ------------ ----------- ------------ ------------
Liabilities - other 376,182 100,273 30,059 49 37,012
------------- ------------ ------------ ----------- ------------ ------------
Net assets available for benefits $109,522,611 $31,943,252 $18,683,376 $2,076,298 $ 4,132,880 $ 3,505,266
============= ============ ============ =========== ============ ============
</TABLE>
F-11
<PAGE>
Virginia Power Hourly Employee Saving Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Non-Participant
Participant Directed (Cont'd) Directed
------------------------------------------------------- ------------
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan DRI Common
Assets Income Fund Fund Growth Fund Fund Stock Fund
------------ ---------- -------------- ------------ ------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $39,118,154
Common/collective trust $ 56,312
Interest in Certus Stable Value Fund
Mutual funds $ 347,852 $1,537,699 $ 4,854,347
Loans 3,301,157
------------ ---------- -------------- ------------ ------------
Total investments 347,852 1,537,699 4,854,347 3,357,469 39,118,154
Receivables:
Interest 256 602
Other 173,935
------------ ---------- -------------- ------------ ------------
Total receivables - - - 256 174,537
Cash 14
------------ ---------- -------------- ------------ ------------
Total assets 347,852 1,537,699 4,854,347 3,357,739 39,292,691
------------ ---------- -------------- ------------ ------------
Liabilities - Other 3,671 19,565 59,732 125,821
------------ ---------- -------------- ------------ ------------
Net assets available for benefits $ 344,181 $1,518,134 $ 4,794,615 $3,357,739 $39,166,870
============ ========== ============== ============ ============
</TABLE>
F-12
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1996
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------
Mellon EB
DRI Common Certus Stable Dreyfus Daily Liquidity Crabbe Huson
Assets Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund
- ------ ------------ ------------ ------------- ------------ --------------- ------------
<S> <C>
Investments (Notes 1 and 2):
Common stock $ 65,756,889 $ 31,826,430
Common/collective trust 1,117,091 145 $ 1,045,583
Interest in Certus Stable Value Fund 17,778,061 $17,778,061
Mutual funds 4,095,047 $ 504,921 $ 1,221,285
Loans 2,171,916
------------ ------------ ----------- ---------- ---------- -----------
Total investments 90,919,004 31,826,575 17,778,061 504,921 1,045,583 1,221,285
Receivables:
Interest 94,358 878 91,792
Other 129,499 62,279 660
------------ ------------ ----------- ---------- ---------- -----------
Total receivables 223,857 63,157 91,792 - - 660
Cash 76
------------ ------------ ----------- ---------- ---------- -----------
Total assets 91,142,937 31,889,732 17,869,853 504,921 1,045,583 1,221,945
------------ ------------ ----------- ---------- ---------- -----------
Liabilities - other 2,055 24 278
------------ ------------ ----------- ---------- ---------- -----------
Net assets available for benefits $ 91,140,882 $ 31,889,708 $17,869,853 $ 504,643 $1,045,583 $ 1,221,945
============ ============ =========== ========== ========== ===========
</TABLE>
F-13
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Net Assets Available for Benefits by Fund
December 31, 1996
<TABLE>
<CAPTION>
Non-Participant
Participant Directed (Cont'd) Directed
---------------------------------------------------- -------------
<S> <C>
Premier Templeton Warburg Pincus
Managed Foreign Emerging Loan DRI Common
Assets Income Fund Fund Growth Fund Fund Stock Fund
----------- ---------- -------------- ---------- ------------
Investments (Notes 1 and 2):
Common stock $ 33,930,459
Common/collective trust $ 71,210 153
Interest in Certus Stable Value Fund
Mutual funds $ 81,508 $ 487,025 $ 1,800,308
Loans 2,171,916
----------- ---------- -------------- --------- ------------
Total investments 81,508 487,025 1,800,308 2,243,126 33,930,612
Receivables:
Interest 312 1,376
Other 403 66,157
----------- ---------- -------------- --------- ------------
Total receivables - 403 - 312 67,533
Cash 76
----------- ---------- -------------- --------- ------------
Total assets 81,508 487,428 1,800,308 2,243,514 33,998,145
----------- ---------- -------------- --------- ------------
Liabilities - Other 105 1,622 26
----------- ---------- -------------- --------- ------------
Net assets available for benefits $ 81,403 $ 87,428 $ 1,798,686 $2,243,514 $ 33,998,119
=========== ========== =============== ========= ============
</TABLE>
F-14
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------
Certus Mellon EB
DRI Common Stable Dreyfus Daily Liquidity Crabbe Huson
Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund
------------- -------------- ------------- ------------- -------------- ------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 8,702,140 $ 3,067,722 $ 22 $ 136,853 $ 638,620 $ 479,795
Dividend income 4,461,716 1,995,965 31,149 60,066 7,149
Interest and other income 1,370,147 3,981 1,117,126 6,059
------------- -------------- ------------- ------------- ------------- --------------
Total investment income 14,534,003 5,067,668 1,117,148 174,061 698,686 486,944
-------------- --------------- -------------- -------------- ------------- --------------
Contributions:
Participant (Note 1) 7,954,739 1,521,458 2,487,916 599,771 874,926 760,358
Participating companies (Note 1) 3,138,250
------------- -------------- ------------- ------------- ------------- --------------
Total additions 25,626,992 6,589,126 3,605,064 773,832 1,573,612 1,247,302
------------- -------------- ------------- ------------- ------------- --------------
Benefits paid to participants 6,469,943 2,195,899 1,852,353 80,010 165,054 158,551
Administrative expenses 58,906 23,396 16,744 1,397 2,847 1,895
-------------- --------------- -------------- -------------- -------------- -------------
Total deductions 6,528,849 2,219,295 1,869,097 81,407 167,901 160,446
------------- -------------- ------------- ------------- ------------- --------------
Net increase/(decrease) before transfers 19,098,143 4,369,831 1,735,967 692,425 1,405,711 1,086,856
Interfund transfers, net - (4,122,295) (820,835) 869,814 1,734,428 1,221,175
Transfer of participants' assets
from the Plan to other plans (716,414) (193,992) (101,609) 9,416 (52,842) (24,710)
------------- -------------- ------------- ------------- ------------- --------------
Net increase 18,381,729 53,544 813,523 1,571,655 3,087,297 2,283,321
Net assets available for benefits:
Beginning of year 91,140,882 31,889,708 17,869,853 504,643 1,045,583 1,221,945
------------- -------------- ------------- ------------- ------------- --------------
End of year $109,522,611 $ 31,943,252 $ 18,683,376 $ 2,076,298 $ 4,132,880 $ 3,505,266
============= ============== ============= ============= ============= ==============
</TABLE>
F-15
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1997
<TABLE>
<CAPTION>
Non-Participant
Participant Directed (Cont'd) Directed
----------------------------------------------------------- -------------
Templeton Warburg Pincus Premier
Foreign Emerging Managed Loan DRI Common
Income Fund Growth Fund Income Fund Fund Stock Fund
------------- --------------- ------------ ----------- -------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ (13,821) 592,605 $ 5,153 $ $ 3,795,191
Dividend income 41,522 10,891 2,314,974
Interest and other income 759 231,718 10,504
------------- ------------ ------------ ------------ -------------
Total investment income 27,701 592,605 16,803 231,718 6,120,669
------------- ------------ ------------- ------------- --------------
Contributions:
Participant (Note 1) 421,360 1,188,716 100,234
Participating companies (Note 1) 3,138,250
------------- ------------ ------------ ------------ -------------
Total additions 449,061 1,781,321 117,037 231,718 9,258,919
------------- ------------ ------------ ------------ -------------
Benefits paid to participants 52,540 156,758 18,798 126,250 1,663,730
Administrative expenses 1,006 2,830 190 (28,302) 36,903
------------- ------------ ------------- ------------- --------------
Total deductions 53,546 159,588 18,988 97,948 1,700,633
------------- ------------ ------------ ------------ -------------
Net increase/(decrease) before transfers 395,515 1,621,733 98,049 133,770 7,558,286
Interfund transfers, net 650,821 1,447,781 165,503 1,037,433 (2,183,825)
Transfer of participants' assets
from the Plan to other plans (15,630) (73,585) (774) (56,978) (205,710)
------------- ------------ ------------ ------------ -------------
Net increase 1,030,706 2,995,929 262,778 1,114,225 5,168,751
Net assets available for benefits:
Beginning of year 487,428 1,798,686 81,403 2,243,514 33,998,119
------------- ------------ ------------ ------------ -------------
End of year $ 1,518,134 $ 4,794,615 $ 344,181 $ 3,357,739 $ 39,166,870
============= ============ ============ ============ ==============
</TABLE>
F-16
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------
Interest Certus Mellon EB
DRI Common Bearing Stable Dreyfus Daily Liquidity
Total Stock Fund Fund Value Fund Balance Fund Index Fund
----------- ------------- ----------- ------------ ------------ --------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5 $(2,576,111) $ (322,499) $ 385,695 $ - $ 27,908 $ 56,427
Dividend income 4,432,457 2,146,471 4,890 7,035
Interest and other income 868,746 7,888 206,703 605,827 23 107
-------------- ------------- -------------- -------------- ------------ -----------
Total investment income 2,725,092 1,831,860 592,398 605,827 32,821 63,569
------------- ------------- ------------- -------------- ----------- -----------
Contributions:
Participant (Note 1) 7,393,173 2,596,342 1,118,896 1,594,793 304,229 419,871
Participating companies (Note 1) 3,223,090
------------- ------------- ------------- -------------- ----------- -----------
Total additions 13,341,355 4,428,202 1,711,294 2,200,620 337,050 483,440
-------------- ------------- -------------- --------------- ------------ ------------
Benefits paid to participants 7,626,380 2,909,682 1,175,122 763,662 6,388 17,987
Administrative expenses 76,644 35,206 23,553 33,095 1,059 1,485
------------- ------------- ------------- -------------- ----------- -----------
Total deductions 7,703,024 2,944,888 1,198,675 796,757 7,447 19,472
-------------- ------------- -------------- --------------- ------------ ------------
Net increase/(decrease) before transfer 5,638,331 1,483,314 512,619 1,403,863 329,603 463,968
Interfund transfers, net - (1,924,682) 123,612 (1,404,654) 169,982 571,104
Transfer of participants' assets
from the Plan to other plans (2,088,502) (1,081,567) (42,940) (346,879) 5,058 10,511
Transfer to new trust funds - (18,217,523) 18,217,523
------------- ------------- ------------- -------------- ----------- -----------
Net increase 3,549,829 (1,522,935) (17,624,232) 17,869,853 504,643 1,045,583
Net assets available for benefits:
Beginning of year 87,591,053 33,412,643 17,624,232 - - -
------------- ------------- ------------- -------------- ----------- -----------
End of year $ 91,140,882 $ 31,889,708 $ - $ 17,869,853 $ 504,643 $1,045,583
============= ============= ============= ============== =========== ===========
</TABLE>
F-17
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1996
<TABLE>
<CAPTION> Non-
Participant
Participant Directed (Cont'd) Directed
-------------------------------------------------------------- -----------
Templeton Warburg Pincus Premier
Crabbe Huson Foreign Emerging Managed Loan DRI Common
Equity Fund Income Fund Growth Fund Income Fund Fund Stock Fund
------------ ----------- -------------- ----------- --------- ------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 48,824 $ 20,306 $ 43,906 $ 834 $ - $ (2,837,512)
Dividend income 4,024 9,236 1,445 2,259,356
Interest and other income 40,133 8,065
------------ ------------- ------------ --------- -------------- --------------
Total investment income 52,848 29,542 43,906 2,279 40,133 (570,091)
----------- ------------ ----------- -------- ------------- -------------
Contributions:
Participant (Note 1) 410,399 198,711 689,935 59,997
Participating companies (Note 1) 3,223,090
----------- ------------ ----------- -------- ------------- -------------
Total additions 463,247 228,253 733,841 62,276 40,133 2,652,999
----------- ------------ ----------- -------- ------------- -------------
Benefits paid to participants 13,206 6,439 18,216 2,466 216,506 2,496,706
Administrative expenses 1,426 669 2,480 209 (67,110) 44,572
----------- ------------ ----------- -------- ------------- -------------
Total deductions 14,632 7,108 20,696 2,675 149,396 2,541,278
----------- ------------ ----------- -------- ------------- -------------
Net increase/(decrease) before transfer 448,615 221,145 713,145 59,601 (109,263) 111,721
Interfund transfers, net 782,016 275,524 1,111,055 22,145 1,185,433 (911,535)
Transfer of participants' assets
from the Plan to other plans (8,686) (9,241) (25,514) (343) (9,478) (579,423)
Transfer to new trust funds
----------- ------------ ----------- -------- ------------- -------------
Net increase 1,221,945 487,428 1,798,686 81,403 1,066,692 (1,379,237)
Net assets available for benefits:
Beginning of year - - - - 1,176,822 35,377,356
----------- ------------ ----------- -------- ------------- -------------
End of year $1,221,945 $ 487,428 $1,798,686 $81,403 $2,243,514 $33,998,119
=========== ============ =========== ======== ============= =============
</TABLE>
F-18
<PAGE>
Virginia Power Hourly Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits by Fund
For Year Ended December 31, 1995
<TABLE>
<CAPTION>
Non-Participant
Participant Directed Directed
-------------------------------------------- ---------------
Interest
DRI Common Bearing Loan DRI Common
Total Stock Fund Fund Fund Stock Fund
------------- ---------------- -------------- ------------- ----------------
<S> <C>
Investment income:
Net appreciation/(depreciation)
in fair value of investments (Note 5) $ 9,002,279 $ 2,814,393 $ 467,524 $ - $ 5,720,362
Dividend income 4,012,680 1,987,079 2,025,601
Interest and other income 285,800 11,370 194,558 71,773 8,099
-------------- --------------- --------------- -------------- --------------
Total investment income 13,300,759 4,812,842 662,082 71,773 7,754,062
--------------- --------------- --------------- -------------- ---------------
Contributions:
Participant (Note 1) 6,814,194 4,178,032 2,636,162
Participating companies (Note 1) 3,144,158 3,144,158
-------------- --------------- --------------- -------------- --------------
Total additions 23,259,111 8,990,874 3,298,244 71,773 10,898,220
-------------- --------------- --------------- -------------- --------------
Benefits paid to participants 4,784,785 1,666,976 1,334,716 19,371 1,763,722
Administrative expenses 85,552 23,276 35,609 2,940 23,727
-------------- --------------- --------------- -------------- --------------
Total deductions 4,870,337 1,690,252 1,370,325 22,311 1,787,449
-------------- --------------- --------------- -------------- --------------
Net increase/(decrease) before transfers 18,388,774 7,300,622 1,927,919 49,462 9,110,771
Interfund transfers, net - 137,937 (50,227) (230,583) 142,873
Transfer of participants' assets
from the Plan to other plans (325,430) (146,033) (24,765) (154,632)
-------------- --------------- --------------- -------------- --------------
Net increase 18,063,344 7,292,526 1,852,927 (181,121) 9,099,012
Net assets available for benefits:
Beginning of year 69,527,709 26,120,117 15,771,305 1,357,943 26,278,344
-------------- --------------- --------------- -------------- --------------
End of year $ 87,591,053 $ 33,412,643 $ 17,624,232 $ 1,176,822 $ 35,377,356
============== =============== =============== ============== ==============
</TABLE>
F-19
<PAGE>
8. INTEREST IN THE CERTUS STABLE VALUE FUND
The Plan's investments are in a Master Trust which was established for the
investment of assets for the Plan and several other Company sponsored plans
(the Dominion Resources, Inc. Employee Savings Plan and the Dominion
Subsidiary Savings Plan). The assets of the Master Trust are held by Mellon
Bank. As of December 31, 1997 and 1996, the assets of the Master Trust were
separately maintained by each Company sponsored plan, with the exception of
the Certus Stable Value Fund (Certus Fund). As of December 31, 1997 and
1996, the Plan's interest in the net assets of the Certus Fund was
approximately 29% and 31%, respectively. Investment income and
administrative expenses relating to the Certus Fund are allocated to the
individual plans based upon average monthly balances invested by each Plan.
The following table presents the fair value of the undivided investments in
the Certus Fund:
<TABLE>
<CAPTION>
December 31,
Investments at fair value: 1997 1996
------------------------------------
<S> <C>
Guaranteed Investment Contracts $ 58,085,100 $ 52,832,197
Common/collective trust 7,012,518 5,098,631
----------------- -----------------
Total $ 65,097,618 $ 57,930,828
================= =================
<CAPTION>
Investment income for the Certus Stable Value December 31,
Fund is as follows: 1997 1996
------------------------------------
<S> <C>
Net appreciation in fair value of investments $ 426,972 $ 792,346
Interest 3,883,054 1,928,461
----------------- -----------------
Total $ 4,310,026 $ 2,720,807
================= =================
</TABLE>
9. VALUATION OF INVESTMENT CONTRACTS
Effective June 1, 1996, the Plan adopted the provisions of AICPA Statement
of Position 94-4, "Reporting of Investment Contracts Held by Health and
Welfare Benefit Plans and Defined-Contribution Pension Plans". The Plan's
investment contracts are fully-benefit responsive and have been presented
on the financial statements at contract value. The Plan's portion of the
contracts have an estimated value of $18,685,163 and $17,864,264 at
December 31, 1997 and 1996, respectively. The underlying investment
contracts are carried at variable and fixed rates with expiration dates
through 2007. The variable rates are reviewed and adjusted quarterly. The
average yield on the contracts are estimated at 6.57% and 6.54% at December
31, 1997 and December 31, 1996.
10. TAX STATUS
The Plan is a qualified employees' profit sharing trust under Sections
401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt from
Federal income taxes under Section 501(a). Pursuant to Section 402(a) of
the Internal Revenue Code, a participant is not taxed on the income and
pre-tax contributions allocated to the participant's account until such
time as the participant or the participant's beneficiaries receive
distributions from the Plan.
The Plan obtained its latest determination letter on November 9, 1993, in
which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue
Code. The Plan has been amended since receiving the determination letter.
However, the Company believes that the Plan is currently designed and
operating in compliance with the applicable requirements of the Internal
Revenue Code.
F-20
<PAGE>
11. SUBSEQUENT EVENT
During the first quarter of 1998, the Board of Directors of the Company
approved an amendment to the Plan that adopts a KSOP provision (combines
the features of a 401K and an Employee Stock Ownership Plan) effective May
1, 1998. The KSOP allows participants the choice of (1) receiving cash
dividends paid on vested shares held in their DRI Common Stock Fund or (2)
continuing to reinvest the dividends in the fund.
In addition, effective May 1, 1998, the new maximum contribution rates for
hourly employees are 15 percent for pre-tax; 20 percent for after-tax, and
2 to 20 percent for combined contributions.
F-21
<PAGE>
VIRGINIA POWER
HOURLY EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
Current
Description Cost Value
- ------------------------------------------- ---------------- --------------
<S> <C>
Dominion Resources, Inc., Common Stock: $ 64,994,308 $ 71,021,169
--------------- ---------------
Interest in Certus Stable Value Fund:
Certus Stable Value Fund 18,587,458 18,587,458
--------------- ---------------
Common/Collective Trusts:
Loan Fund 56,312 56,312
Mellon S&P 500 Index Daily Fund 3,578,279 4,132,879
--------------- ---------------
3,634,591 4,189,191
--------------- ---------------
Mutual Funds:
Crabbe Huson Equity Fund Inc. 3,789,690 3,542,278
Dreyfus Balanced Fund Inc. 2,204,077 2,106,357
Premier Managed Income Fund 343,380 347,852
Templeton Foreign Fund Inc. 1,665,450 1,537,699
Warburg Pincus Emerging Growth Fund 4,557,815 4,854,347
--------------- ---------------
12,560,412 12,388,533
--------------- ---------------
Loans to Participants: 3,301,157 3,301,157
--------------- ---------------
Total Assets Held for Investment $103,077,926 $109,487,508
=============== ===============
</TABLE>
F-22
<PAGE>
VIRGINIA POWER
HOURLY EMPLOYEE SAVINGS PLAN
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
The assets of the Virginia Power Hourly Employee Savings Plan were combined with
the assets of the Dominion Resources, Inc. Employee Savings Plan and the
Dominion Subsidiary Savings Plan in a master trust for investment purposes until
June 1, 1996. Effective June 1, 1996, a new master trust was established which
does not combine the assets of the Virginia Power Hourly Employee Savings Plan
with the assets of the Dominion Resources, Inc. Employee Savings Plan and the
Dominion Subsidiary Savings Plan, except for the Certus Stable Value Fund master
trust. Such schedules that report the 5% transactions, which transpired in 1997
for the master trusts, were filed in paper format as Exhibit 99(v).
F-23
Exhibit 99(vi)
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-09167 of Dominion Resources, Inc. on Form S-8 of our report dated May 29,
1998, appearing in this Annual Report on Form 11-K of Virginia Power Hourly
Employee Savings Plan for the year ended December 31, 1997.
DELOITTE & TOUCHE LLP
Richmond, Virginia
June 10, 1998
