DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES

The Companies are exposed to the impact of market fluctuations in the price of electricity, natural gas and other energy-related products they market and purchase, as well as interest rate and foreign currency exchange rate risks of their business operations. The Companies use derivative instruments to manage exposure to these risks, and designate certain derivative instruments as fair value or cash flow hedges for accounting purposes. As discussed in Note 2, for jurisdictions subject to cost-based rate regulation, changes in the fair value of derivatives are deferred as regulatory assets or regulatory liabilities until the related transactions impact earnings. See Note 6 for further information about fair value measurements and associated valuation methods for derivatives.

Derivative assets and liabilities are presented gross on the Companies' Consolidated Balance Sheets. Dominion's derivative contracts include both over-the-counter transactions and those that are executed on an exchange or other trading platform (exchange contracts) and centrally cleared. Virginia Power's and Dominion Gas' derivative contracts include over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Exchange contracts utilize a financial intermediary, exchange, or clearinghouse to enter, execute, or clear the transactions. Certain over-the-counter and exchange contracts contain contractual rights of setoff through master netting arrangements, derivative clearing agreements, and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency, or other conditions.

In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit, and, in some cases, other forms of security, none of which are subject to restrictions. Cash collateral is used in the table below to offset derivative assets and liabilities. Certain accounts receivable and accounts payable recognized on the Companies' Consolidated Balance Sheets, as well as letters of credit and other forms of security, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure.

Dominion

Balance Sheet Presentation

The tables below present Dominion's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	211	$	—	$	211	$	217	$	—	$	217
Exchange	44		—		44		138		—		138
Interest rate contracts:
Over-the-counter	17		—		17		24		—		24
Total derivatives, subject to a master netting or similar arrangement	272		—		272		379		—		379
Total derivatives, not subject to a master netting or similar arrangement	7		—		7		9		—		9
Total	$	279	$	—	$	279	$	388	$	—	$	388



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	211	$	14	$	—	$	197	$	217	$	37	$	—	$	180
Exchange	44		44		—		—		138		82		—		56
Interest rate contracts:
Over-the-counter	17		9		—		8		24		22		—		2
Total	$	272	$	67	$	—	$	205	$	379	$	141	$	—	$	238



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	23	$	—	$	23	$	70	$	—	$	70
Exchange	71		—		71		82		—		82
Interest rate contracts:
Over-the-counter	53		—		53		183		—		183
Foreign currency contracts:
Over-the-counter	6		—		6		—		—		—
Total derivatives, subject to a master netting or similar arrangement	153		—		153		335		—		335
Total derivatives, not subject to a master netting or similar arrangement	2		—		2		8		—		8
Total	$	155	$	—	$	155	$	343	$	—	$	343



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	23	$	14	$	—	$	9	$	70	$	37	$	—	$	33
Exchange	71		44		27		—		82		82		—		—
Interest rate contracts:
Over-the-counter	53		9		—		44		183		22		—		161
Foreign currency contracts:
Over-the-counter	6		—		—		6		—		—		—		—
Total	$	153	$	67	$	27	$	59	$	335	$	141	$	—	$	194

Volumes

The following table presents the volume of Dominion's derivative activity as of December 31, 2016. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	91		18
Basis	223		593
Electricity (MWh):
Fixed price⁽¹⁾	11,880,630		1,963,426
FTRs	46,269,912		—
Liquids (Gal)⁽²⁾	46,311,225		12,741,120
Interest rate⁽³⁾	$	1,800,000,000	$	2,903,640,679
Foreign currency⁽³⁾⁽⁴⁾	$	—	$	280,000,000


(1)	Includes options.


(2)	Includes NGLs and oil.


(3)	Maturity is determined based on final settlement period.


(4)	Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the years ended December 31, 2016, 2015 and 2014, gains or losses on hedging instruments determined to be ineffective and amounts excluded from the assessment of effectiveness were not material. Amounts excluded from the assessment of effectiveness include gains or losses attributable to changes in the time value of options and changes in the differences between spot prices and forward prices.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion's Consolidated Balance Sheet at December 31, 2016:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	10		$	10		36 months
Electricity	(20		)	(20		)	12 months
Other	(3		)	(3		)	15 months
Interest rate	(274		)	(5		)	375 months
Foreign currency	7			(1		)	114 months
Total	$	(280	)	$	(19	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated sales) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in market prices, interest rates and foreign currency exchange rates.

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion's derivatives and where they are presented in its Consolidated Balance Sheets:



	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2016
ASSETS
Current Assets
Commodity	$	29	$	101	$	130
Interest rate	10		—		10
Total current derivative assets	39		101		140
Noncurrent Assets
Commodity	—		132		132
Interest rate	7		—		7
Total noncurrent derivative assets⁽¹⁾	7		132		139
Total derivative assets	$	46	$	233	$	279
LIABILITIES
Current Liabilities
Commodity	$	51	$	41	$	92
Interest rate	33		—		33
Foreign currency	3		—		3
Total current derivative liabilities⁽²⁾	87		41		128
Noncurrent Liabilities
Commodity	1		3		4
Interest rate	20		—		20
Foreign currency	3		—		3
Total noncurrent derivative liabilities⁽³⁾	24		3		27
Total derivative liabilities	$	111	$	44	$	155
At December 31, 2015
ASSETS
Current Assets
Commodity	$	101	$	151	$	252
Interest rate	3		—		3
Total current derivative assets	104		151		255
Noncurrent Assets
Commodity	3		109		112
Interest rate	21		—		21
Total noncurrent derivative assets⁽¹⁾	24		109		133
Total derivative assets	$	128	$	260	$	388
LIABILITIES
Current Liabilities
Commodity	$	32	$	116	$	148
Interest rate	164		—		164
Total current derivative liabilities⁽²⁾	196		116		312
Noncurrent Liabilities
Commodity	—		12		12
Interest rate	19		—		19
Total noncurrent derivative liabilities⁽³⁾	19		12		31
Total derivative liabilities	$	215	$	128	$	343


(1)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion's Consolidated Balance Sheets.


(2)	Current derivative liabilities are presented in other current liabilities in Dominion's Consolidated Balance Sheets.


(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion's Consolidated Balance Sheets.

The following tables present the gains and losses on Dominion's derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)⁽¹⁾			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Year Ended December 31, 2016
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	330
Purchased gas				(13		)
Electric fuel and other energy-related purchases				(10		)
Total commodity	$	164		$	307		$	—
Interest rate⁽³⁾	(66		)	(31		)	(26		)
Foreign currency⁽⁴⁾	(6		)	(17		)	—
Total	$	92		$	259		$	(26	)
Year Ended December 31, 2015
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	203
Purchased gas				(15		)
Electric fuel and other energy-related purchases				(1		)
Total commodity	$	230		$	187		$	4
Interest rate⁽³⁾	(46		)	(11		)	(13		)
Total	$	184		$	176		$	(9	)
Year Ended December 31, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	(130	)
Purchased gas				(13		)
Electric fuel and other energy-related purchases				7
Total commodity	$	245		$	(136	)	$	(4	)
Interest rate⁽³⁾	(208		)	(16		)	(81		)
Total	$	37		$	(152	)	$	(85	)


(1)	Amounts deferred into AOCI have no associated effect in Dominion's Consolidated Statements of Income.


(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion's Consolidated Statements of Income.


(3)	Amounts recorded in Dominion's Consolidated Statements of Income are classified in interest and related charges.


(4)	Amounts recorded in Dominion's Consolidated Statements of Income are classified in other income.



Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2016			2015			2014
(millions)
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue	$	2		$	24		$	(310	)
Purchased gas	4			(14		)	(51		)
Electric fuel and other energy-related purchases	(70		)	(14		)	113
Other operations & maintenance	1			—			—
Interest rate⁽²⁾	—			(1		)	—
Total	$	(63	)	$	(5	)	$	(248	)


(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion's Consolidated Statements of Income.


(2)	Amounts recorded in Dominion's Consolidated Statements of Income are classified in interest and related charges.

Virginia Power

Balance Sheet Presentation

The tables below present Virginia Power's derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	147	$	—	$	147	$	101	$	—	$	101
Interest rate contracts:
Over-the-counter	6		—		6		13		—		13
Total derivatives, subject to a master netting or similar arrangement	153		—		153		114		—		114
Total derivatives, not subject to a master netting or similar arrangement	41		—		41		13		—		13
Total	$	194	$	—	$	194	$	127	$	—	$	127



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	147	$	2	$	—	$	145	$	101	$	3	$	—	$	98
Interest rate contracts:
Over-the-counter	6		—		—		6		13		10		—		3
Total	$	153	$	2	$	—	$	151	$	114	$	13	$	—	$	101



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	2	$	—	$	2	$	5	$	—	$	5
Interest rate contracts:
Over-the-counter	21		—		21		59		—		59
Total derivatives, subject to a master netting or similar arrangement	23		—		23		64		—		64
Total derivatives, not subject to a master netting or similar arrangement	8		—		8		22		—		22
Total	$	31	$	—	$	31	$	86	$	—	$	86



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	2	$	2	$	—	$	—	$	5	$	3	$	—	$	2
Interest rate contracts:
Over-the-counter	21		—		—		21		59		10		—		49
Total	$	23	$	2	$	—	$	21	$	64	$	13	$	—	$	51

Volumes

The following table presents the volume of Virginia Power's derivative activity at December 31, 2016. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.



	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾	27		14
Basis	101		539
Electricity (MWh):
Fixed price⁽¹⁾	1,343,310		1,963,426
FTRs	43,853,950		—
Interest rate	$	800,000,000	$	850,000,000


(1)	Includes options.

Ineffectiveness and AOCI

For the years ended December 31, 2016, 2015 and 2014, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Virginia Power's Consolidated Balance Sheet at December 31, 2016:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(8	)	$	(1	)	375 months
Total	$	(8	)	$	(1	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest payments) in earnings, thereby achieving the realization of interest rates contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Virginia Power's derivatives and where they are presented in its Consolidated Balance Sheets:



	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2016
ASSETS
Current Assets
Commodity	$	—	$	60	$	60
Interest rate	6		—		6
Total current derivative assets⁽¹⁾	6		60		66
Noncurrent Assets
Commodity	—		128		128
Total noncurrent derivative assets	—		128		128
Total derivative assets	$	6	$	188	$	194
LIABILITIES
Current Liabilities
Commodity	$	—	$	10	$	10
Interest rate	8		—		8
Total current derivative liabilities⁽²⁾	8		10		18
Noncurrent Liabilities
Interest rate	13		—		13
Total noncurrent derivative liabilities⁽³⁾	13		—		13
Total derivative liabilities	$	21	$	10	$	31
At December 31, 2015
ASSETS
Current Assets
Commodity	$	—	$	18	$	18
Total current derivative assets⁽¹⁾	—		18		18
Noncurrent Assets
Commodity	—		96		96
Interest rate	13		—		13
Total noncurrent derivative assets	13		96		109
Total derivative assets	$	13	$	114	$	127
LIABILITIES
Current Liabilities
Commodity	$	—	$	23	$	23
Interest rate	57		—		57
Total current derivative liabilities⁽²⁾	57		23		80
Noncurrent Liabilities
Commodity	—		4		4
Interest rate	2		—		2
Total noncurrent derivative liabilities⁽³⁾	2		4		6
Total derivative liabilities	$	59	$	27	$	86


(1)	Current derivative assets are presented in other current assets in Virginia Power's Consolidated Balance Sheets.


(2)	Current derivative liabilities are presented in other current liabilities in Virginia Power's Consolidated Balance Sheets.


(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power's Consolidated Balance Sheets.

The following tables present the gains and losses on Virginia Power's derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)⁽¹⁾			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Year Ended December 31, 2016
Derivative Type and Location of Gains (Losses)
Interest rate⁽³⁾	$	(3	)	$	(1	)	$	(26	)
Total	$	(3	)	$	(1	)	$	(26	)
Year Ended December 31, 2015
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	(1	)
Total commodity	$	—		$	(1	)	$	4
Interest rate⁽³⁾	(3		)	—			(13		)
Total	$	(3	)	$	(1	)	$	(9	)
Year Ended December 31, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Electric fuel and other energy-related purchases				$	5
Total commodity	$	4		$	5		$	(4	)
Interest rate⁽³⁾	(10		)	—			(81		)
Total	$	(6	)	$	5		$	(85	)


(1)	Amounts deferred into AOCI have no associated effect in Virginia Power's Consolidated Statements of Income.


(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power's Consolidated Statements of Income.


(3)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in interest and related charges.



Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Year Ended December 31,	2016			2015			2014
(millions)
Derivative Type and Location of Gains (Losses)
Commodity⁽²⁾	$	(70	)	$	(13	)	$	105
Total	$	(70	)	$	(13	)	$	105


(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power's Consolidated Statements of Income.


(2)	Amounts recorded in Virginia Power's Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.

Dominion Gas

Balance Sheet Presentation

The tables below present Dominion Gas' derivative asset and liability balances by type of financial instrument, before and after the effects of offsetting:



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	—	$	—	$	—	$	11	$	—	$	11
Total derivatives, subject to a master netting or similar arrangement	$	—	$	—	$	—	$	11	$	—	$	11



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	—	$	—	$	—	$	—	$	11	$	—	$	—	$	11
Total	$	—	$	—	$	—	$	—	$	11	$	—	$	—	$	11



	December 31, 2016						December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
(millions)
Commodity contracts:
Over-the-counter	$	5	$	—	$	5	$	—	$	—	$	—
Interest rate contracts:
Over-the-counter	—		—		—		14		—		14
Foreign currency contracts:
Over-the-counter	6		—		6		—		—		—
Total derivatives, subject to a master netting or similar arrangement	$	11	$	—	$	11	$	14	$	—	$	14



			December 31, 2016								December 31, 2015
			Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	5	$	—	$	—	$	5	$	—	$	—	$	—	$	—
Interest rate contracts:
Over-the-counter	—		—		—		—		14		—		—		14
Foreign currency contracts:
Over-the-counter	6		—		—		6		—		—		—		—
Total	$	11	$	—	$	—	$	11	$	14	$	—	$	—	$	14

Volumes

The following table presents the volume of Dominion Gas' derivative activity at December 31, 2016. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.


(1)	Maturity is determined based on final settlement period. Euro equivalent volumes are €250,000,000.

Ineffectiveness and AOCI

For the years ended December 31, 2016, 2015 and 2014, gains or losses on hedging instruments determined to be ineffective were not material.

The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Gas' Consolidated Balance Sheet at December 31, 2016:



	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings during the next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
NGLs	$	(3	)	$	(3	)	15 months
Interest rate	(28		)	(3		)	336 months
Foreign currency	7			(1		)	114 months
Total	$	(24	)	$	(7	)

Fair Value and Gains and Losses on Derivative Instruments

The following tables present the fair values of Dominion Gas' derivatives and where they are presented in its Consolidated Balance Sheets:



	Fair Value - Derivatives under Hedge Accounting		Fair Value - Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At December 31, 2016
LIABILITIES
Current Liabilities
Commodity	$	4	$	—	$	4
Foreign currency	3		—		3
Total current derivative liabilities⁽³⁾	7		—		7
Noncurrent Liabilities
Commodity	1		—		1
Foreign currency	3		—		3
Total noncurrent derivative liabilities⁽⁴⁾	4		—		4
Total derivative liabilities	$	11	$	—	$	11
At December 31, 2015
ASSETS
Current Assets
Commodity	$	10	$	—	$	10
Total current derivative assets⁽¹⁾	10		—		10
Noncurrent Assets
Commodity	1		—		1
Total noncurrent derivative assets⁽²⁾	1		—		1
Total derivative assets	$	11	$	—	$	11
LIABILITIES
Current Liabilities
Interest rate	$	14	$	—	$	14
Total current derivative liabilities⁽³⁾	14		—		14
Total derivative liabilities	$	14	$	—	$	14


(1)	Current derivative assets are presented in other current assets in Dominion Gas' Consolidated Balance Sheets.


(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.


(3)	Current derivative liabilities are presented in other current liabilities in Dominion Gas' Consolidated Balance Sheets.


(4)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.

The following tables present the gains and losses on Dominion Gas' derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:



Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)⁽¹⁾			Amount of Gain (Loss) Reclassified from AOCI to Income
(millions)
Year Ended December 31, 2016
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	4
Total commodity	$	(12	)	$	4
Interest rate⁽²⁾	(8		)	(2		)
Foreign currency⁽³⁾	(6		)	(17		)
Total	$	(26	)	$	(15	)
Year Ended December 31, 2015
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	6
Total commodity	$	16		$	6
Interest rate⁽²⁾	(6		)	—
Total	$	10		$	6
Year Ended December 31, 2014
Derivative Type and Location of Gains (Losses)
Commodity:
Operating revenue				$	2
Purchased gas				(14		)
Total commodity	$	12		$	(12	)
Interest rate⁽²⁾	(62		)	(1		)
Total	$	(50	)	$	(13	)


(1)	Amounts deferred into AOCI have no associated effect in Dominion Gas' Consolidated Statements of Income.


(2)	Amounts recorded in Dominion Gas' Consolidated Statements of Income are classified in interest and related charges.


(3)	Amounts recorded in Dominion Gas' Consolidated Statements of Income are classified in other income.



Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives
Year Ended December 31,	2016		2015		2014
(millions)
Derivative Type and Location of Gains (Losses)
Commodity
Operating revenue	$	1	$	6	$	—
Total	$	1	$	6	$	—

Noncurrent

NGLs (Gal)

Foreign currency⁽¹⁾