This document reconciles operating earnings, return on equity, and return on invested capital to reported earnings, return on equity, and return on invested capital for the years 2003-2007 for a company. It shows adjustments made to operating earnings such as gains or losses from sales of business units, impairment charges, discontinued operations, and other one-time items to derive reported earnings according to GAAP. The reconciliation also calculates the impact of these adjustments on the company's return on equity and return on invested capital.

1. Reconciliation of Operating Earnings to Reported Earnings (GAAP)
2003* 2004* 2005* 2006* 2007
Millions EPS Millions EPS Millions EPS Millions EPS Millions EPS
Operating Earnings $1,408 $ 2.21 $ 1,504 $ 2.28 $1,557 $ 2.26 $1,781 $ 2.53 $1,678 $ 2.56
After-tax items:
Net gain from sale of
non-Appalachian E&P business — — — — — — — — 2,139 3.27
Charges related to the E&P divestitures — — — — — — (5) (0.01) (506) (0.77)
Charges related to early retirement
of debt — — — — — — — — (148) (0.23)
Extraordinary item related to the
reapplication of SFAS No. 71 — — — — — — — — (158) (0.24)
Impairment of merchant generation
assets — — — — — — — — (270) (0.41)
Income (loss) from discontinued
operations of merchant generation
plants 7 0.01 (9) (0.01) (14) (0.02) (183) (0.26) (28) (0.04)
Dominion Capital related charges (84) (0.13) (64) (0.10) (22) (0.03) (91) (0.13) (65) (0.10)
Income (loss) related to
Telecom business (750) (1.18) (13) (0.02) 5 0.01 — — — —
Termination of power purchase and
sales contracts (65) (0.10) (155) (0.23) (52) (0.08) — — (137) (0.21)
Charges related to hurricanes (122) (0.19) (50) (0.08) (375) (0.54) (11) (0.02) — —
Net benefits (charges) related to
exiting certain businesses (32) (0.05) 51 0.08 10 0.01 (41) (0.05) (32) (0.05)
Other items (44) (0.07) (15) (0.03) (76) (0.11) (70) (0.10) 66 0.10
Total after-tax items (1,090) (1.71) (255) (0.39) (524) (0.76) (401) (0.57) 861 1.32
Reported Earnings (GAAP) $ 318 $ 0.50 $ 1,249 $ 1.89 $1,033 $ 1.50 $1,380 $ 1.96 $2,539 $ 3.88
* Prior years’ amounts have been recast to exclude certain discontinued operations from operating earnings and to reflect the November 2007 2-for-1 stock split.
Reconciliation of Operating Return on Equity
to Reported Return on Equity
2006 2007
Millions % Millions %
Common Shareholders’
Equity—13 mos. average $12,059 $11,508
Operating Earnings—
Twelve months ended* 1,781 1,678
Return on average common
equity—operating 14.8% 14.6%
Reported Earnings—
Twelve months ended 1,380 2,539
Return on average common
equity—reported 11.4% 22.1%
* See Reconciliation of Operating Earnings to Reported Earnings.
26 Dominion 2007 Annual Report

2. Reconciliation of Operating ROIC to Reported ROIC
2006 2007
Millions % Millions %
Invested capital—operating—13 mos. average $ 32,886 $ 29,113
Accumulated other comprehensive loss—13 mos. average (1,430) (190)
Invested capital—reported—13 mos. average* 31,456 28,923
Operating Earnings—Twelve months ended** 1,781 1,678
Reported Earnings—Twelve months ended 1,380 2,539
Interest and related charges—operating (after-tax) 646 589
Charges related to debt tender offer (after-tax) — 143
Interest and related charges—reported (after-tax) 646 732
Operating Earnings & Interest and related charges (after-tax)—
Twelve months ended 2,427 2,267
Return on invested capital—operating 7.4% 7.8%
Reported Earnings & Interest and related charges (after-tax)—
Twelve months ended 2,026 3,271
Return on invested capital—reported 6.4% 11.3%
* Comprised of total debt, subsidiary preferred stock, and common shareholders’ equity.
** See Reconciliation of Operating Earnings to Reported Earnings.
For factors that could cause actual results to differ, see Forward-Looking Statements, Risk Factors and
Market Risk Sensitive Instruments and Risk Management in Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
Dominion 2007 Annual Report 27