What a difference two decades can make. Take Dominion Resources, whose subsidiary, Dominion Virginia Power, is the electric utility for most Virginians. As our special report in this

issue,"Electricity’s Brave New World," shows, Dominion is a true leader in preparing for the coming era of deregulation. Its execs have

anticipated many new and critically-important trends. One is electricity trading, which will become commonplace when deregulation kicks in this January and then really takes off in 2007 when retail prices will be based on market rates. Dominion’s strategy of being an advocate of competition and a public educator of what will happen is an intelligent and far-sighted one. It is risky business, to be sure. Half-baked deregulation in California has tripled power prices, caused brownouts and bankrupted Pacific Gas & Electric, a major Sunshine State utility.

My point is that the Dominion of today is a far cry from its predecessor. Twenty years ago, Virginia Electric & Power Co., was in deep trouble. Its woefully-managed nuclear program at its Surry and North Anna units had garnered more fines than any other utility from the U.S. Nuclear Regulatory Commission. Its radiation levels at those plants were among the highest in the country. Vepco’s management of its coal-fired generating plants was little better. The units were down so often that in August of 1980, Vepco was on the verge of widespread brownouts. While Wall Street trashed Vepco, its entrenched management took few positive steps to remedy its deep-seated problems. I know. At the time, I was on the Vepco beat for The Virginian-Pilot, and the utility did not take kindly to public criticism from me or anyone else. A major drawback for the company was that its president, the late Stanley Ragone, regarded any negative comment as a personal attack.

Finally, Vepco saw the light. It hired a ringer to fix its nukes. Other generation units likewise improved. Within half a decade, Vepco was becoming a new company. Today, it is on the "buy" lists of many stock analysts as it picks up markets and assets far beyond the Old Dominion. This isn’t to say that one should trust Dominion completely since no one should trust any corporation implicitly. But when you read our special report, and you consider California’s plight, you might want to remember what the biggest electric utility in Virginia was doing not too long ago. And consider what it is doing now.