Dominion Resources (NYSE:D) Postpones Biennial ROE Review at Dominion Virginia Power Utility

Dominion Resources (NYSE:D) said last week it has reached an agreement with a number of parties to postpone their biennial review of its Dominion Virginia Power utility.

Barclays (NYSE:BCS) commented on the decision saying, "On Thursday, D announced that it had reached an agreement with multiple parties to postpone the biennial ROE review at its Dominion Virginia Power (DVP) utility. Among other details we discuss below, the settlement would allow base rates to remain unchanged through at least December 2014, and would allow the current base ROE of 11.9% to continue. We think the postponement underscores yet again the highly constructive regulatory environment in which Dominion operates. Particularly following the stock's recent weakness, we would highlight that this extension of DVP's positive environment is supportive of our view of D as a premium regulated utility and a core holding for utility investors."

"We are updating our 2010 EPS estimate from $3.31 to $3.34, and introducing a 4Q10 estimate of $0.63. The increase is due largely to stronger than expected weather in a Virginia in 4Q."

Barclays reiterates an "Overweight" rating on Dominion Resources, Inc., which closed Friday at $42.98, gaining $0.37, or 0.87 percent. Barclays has a price target on Dominion of $46.