Dominion selects SAS for risk management

CARY, N.C., Nov. 7, 2001– Dominion has selected SAS Institute to provide a risk management solution for the company’s energy marketing and trading operations.

SAS, the world’s largest privately held software company, is the market leader in enterprise intelligence and data warehousing.

“Dominion’s risk management system, powered by SAS’ Risk Dimensions, gives our executives and traders the information they need to make more timely and more accurate business decisions,” said John Shaw, senior vice president of financial management at Dominion. “The SAS risk management solution also supplies answers more quickly than ever. What used to take us weeks now takes us days, hours or even minutes.”

Dominion has implemented Risk Dimensions, SAS’ comprehensive risk management software solution, to identify and manage the risk inherent in trading natural gas, oil, electricity and other energy commodity contracts. Risk Dimensions helps Dominion analyze and mitigate the effect of variables that can affect energy prices – and Dominion’s earnings – including changes in customer demand, power production and energy costs.

Analysts at Dominion employ Risk Dimensions to construct predictive models and what-if scenarios. These models reveal the potential business effects of countless combinations of events. Dominion executives can then devise business strategies and commodity trading plans that not only limit their business risks, but also allow them to exploit risk to the company’s advantage.

To make informed decisions, Dominion needs thousands of data elements from a multitude of systems. A single risk model, for example, might require information about production plant gas consumption, hourly energy usage, customer demand per region, and future demand given different weather scenarios and rate changes. Before Risk Dimensions, Dominion analysts had to collect all this data from dozens of different programs.

With Risk Dimensions, Dominion analysts create daily and monthly reports for the company’s executives and calculate specific risk statistics for commodity traders. In addition to these static reports, the system delivers a full view of the company’s risk portfolio via the corporate intranet. Executives and managers with access can discover up-to-the-minute information about the company’s risk picture.

“Risk Dimensions transforms the vast amounts of data generated by an organization into intelligence, so decision makers can react to quickly changing market conditions, rapidly identify new strategic directions, and uncover sources of potential problems before they materialize,” said Sam Harris, SAS’ global strategist for risk management. “We’re pleased that Dominion has chosen SAS to deliver risk-based intelligence and provide it with a competitive edge.”

About Risk Dimensions®

SAS’ Risk Dimensions ( is a comprehensive, packaged software solution designed to re-engineer and accelerate the risk-management process. It leverages SAS’ industry- analytical and data warehousing technology to help firms compute and communicate different market and credit risk measures. Risk Dimensions gives energy and financial firms the ability to:

* Access and consolidate position and market data from virtually any format, system or location.

* Analyze and explore that data in order to compute risk measures.

* Communicate these risk measures effectively to business users and decision-makers.

About Dominion

Dominion, with headquarters in Richmond, Va., is one of the nation’s largest energy producers. For more information about Dominion, visit the company’s Web site at

About SAS

SAS provides software and services that enable customers to transform data from all areas of their business into intelligence. For more information, visit

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at

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