PROPERTY, PLANT AND EQUIPMENT

Major classes of property, plant and equipment and their respective balances for the Companies are as follows:



At December 31,	2016		2015
(millions)
Dominion
Utility:
Generation	$	17,147	$	15,656
Transmission	14,315		11,461
Distribution	16,381		13,128
Storage	2,814		2,460
Nuclear fuel	1,537		1,464
Gas gathering and processing	216		799
Oil and gas	1,652		—
General and other	1,450		927
Plant under construction	6,254		5,550
Total utility	61,766		51,445
Nonutility:
Merchant generation-nuclear	1,419		1,339
Merchant generation-other	4,149		2,683
Nuclear fuel	897		938
Gas gathering and processing	619		—
Other-including plant under construction	706		1,371
Total nonutility	7,790		6,331
Total property, plant and equipment	$	69,556	$	57,776
Virginia Power
Utility:
Generation	$	17,147	$	15,656
Transmission	7,871		6,963
Distribution	10,573		10,048
Nuclear fuel	1,537		1,464
General and other	745		709
Plant under construction	2,146		2,793
Total utility	40,019		37,633
Nonutility-other	11		6
Total property, plant and equipment	$	40,030	$	37,639
Dominion Gas
Utility:
Transmission	$	4,231	$	3,804
Distribution	3,019		2,765
Storage	1,627		1,583
Gas gathering and processing	198		797
General and other	184		165
Plant under construction	448		443
Total utility	9,707		9,557
Nonutility:
Gas gathering and processing	$	619	$	—
Other-including plant under construction	149		136
Total nonutility	768		136
Total property, plant and equipment	$	10,475	$	9,693

Jointly-Owned Power Stations

Dominion's and Virginia Power's proportionate share of jointly-owned power stations at December 31, 2016 is as follows:



	Bath County Pumped Storage Station⁽¹⁾			North Anna Units 1 and 2⁽¹⁾			Clover Power Station⁽¹⁾			Millstone Unit 3⁽²⁾
(millions, except percentages)
Ownership interest	60		%	88.4		%	50		%	93.5		%
Plant in service	$	1,052		$	2,520		$	586		$	1,190
Accumulated depreciation	(585		)	(1,210		)	(219		)	(349		)
Nuclear fuel	—			718			—			469
Accumulated amortization of nuclear fuel	—			(549		)	—			(366		)
Plant under construction	8			69			4			51


(1)	Units jointly owned by Virginia Power.


(2)	Unit jointly owned by Dominion.

The co-owners are obligated to pay their share of all future construction expenditures and operating costs of the jointly-owned facilities in the same proportion as their respective ownership interest. Dominion and Virginia Power report their share of operating costs in the appropriate operating expense (electric fuel and other energy-related purchases, other operations and maintenance, depreciation, depletion and amortization and other taxes, etc.) in the Consolidated Statements of Income.

Assignments of Shale Development Rights

In December 2013, Dominion Gas closed on agreements with two natural gas producers to convey over time approximately 100,000 acres of Marcellus Shale development rights underneath several of its natural gas storage fields. The agreements provide for payments to Dominion Gas, subject to customary adjustments, of approximately $200 million over a period of nine years, and an overriding royalty interest in gas produced from the acreage. In 2013, Dominion Gas received approximately $100 million in cash proceeds, resulting in a $20 million ($12 million after-tax) gain, recorded to operations and maintenance expense in Dominion Gas' Consolidated Statements of Income. In 2014, Dominion Gas received $16 million in additional cash proceeds resulting from post-closing adjustments. In March 2015, Dominion Gas and one of the natural gas producers closed on an amendment to the agreement, which included the immediate conveyance of approximately 9,000 acres of Marcellus Shale development rights and a two-year extension of the term of the original agreement. The conveyance of development rights resulted in the recognition of $43 million ($27 million after-tax) of previously deferred revenue to operations and maintenance expense in Dominion Gas' Consolidated Statements of Income. In April 2016, Dominion Gas and the natural gas producer closed on an amendment to the agreement, which included the immediate conveyance of a 32% partial interest in the remaining approximately 70,000 acres. This conveyance resulted in the recognition of the remaining $35 million ($21 million after-tax) of previously deferred revenue to operations and maintenance expense in Dominion Gas’ Consolidated Statements of Income.

In November 2014, Dominion Gas closed an agreement with a natural gas producer to convey over time approximately 24,000 acres of Marcellus Shale development rights underneath one of its natural gas storage fields. The agreement provides for payments to Dominion Gas, subject to customary adjustments, of approximately $120 million over a period of four years, and an overriding royalty interest in gas produced from the acreage. In November 2014, Dominion Gas closed on the agreement and received proceeds of $60 million associated with an initial conveyance of approximately 12,000 acres, resulting in a $60 million ($36 million after-tax) gain, recorded to operations and maintenance expense in Dominion Gas' Consolidated Statements of Income. In connection with that agreement, in 2016, Dominion Gas conveyed approximately 4,000 acres of Marcellus Shale development rights and received proceeds of $10 million and an overriding royalty interest in gas produced from the acreage. These transactions resulted in a $10 million ($6 million after-tax) gain. The gains are included in other operations and maintenance expense in Dominion Gas' Consolidated Statements of Income.

In March 2015, Dominion Gas conveyed to a natural gas producer approximately 11,000 acres of Marcellus Shale development rights underneath one of its natural gas storage fields and received proceeds of $27 million and an overriding royalty interest in gas produced from the acreage. This transaction resulted in a $27 million ($16 million after-tax) gain, included in other operations and maintenance expense in Dominion Gas' Consolidated Statements of Income.

In September 2015, Dominion Gas closed on an agreement with a natural gas producer to convey approximately 16,000 acres of Utica and Point Pleasant Shale development rights underneath one of its natural gas storage fields. The agreement provided for a payment to Dominion Gas, subject to customary adjustments, of $52 million and an overriding royalty interest in gas produced from the acreage. In September 2015, Dominion Gas received proceeds of $52 million associated with the conveyance of the acreage, resulting in a $52 million ($29 million after-tax) gain, included in other operations and maintenance expense in Dominion Gas’ Consolidated Statements of Income.