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   ____    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____to_____

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   X    No __

At July 31, 2002, 171,484 shares of common stock, without par value, of the registrant were outstanding, all of which were held, beneficially and of record, by Dominion Resources, Inc.

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The accompanying notes are an integral part of the Consolidated Financial Statements.

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The accompanying notes are an integral part of the Consolidated Financial Statements.

* The Consolidated Balance Sheet at December 31, 2001 has been derived from the audited Consolidated Financial  Statements at that date.

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The accompanying notes are an integral part of the Consolidated Financial Statements.

* The Consolidated Balance Sheet at December 31, 2001 has been derived from the audited Consolidated Financial  Statements at that date.

**Debt securities issued by Virginia Electric and Power Company constitute 100 percent of the trust's assets.

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The accompanying notes are an integral part of the Consolidated Financial Statements.

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Note 1. Nature of Operations

Virginia Electric and Power Company (Virginia Power), a Virginia public service company, is a wholly-owned subsidiary of Dominion Resources, Inc. (Dominion). The Company is a regulated public utility that generates, transmits and distributes electric energy within a 30,000 square-mile area in Virginia and northeastern North Carolina. It sells electricity to approximately 2.2 million retail customers, including governmental agencies, and to wholesale customers such as rural electric cooperatives, municipalities, power marketers and other utilities. The Virginia service area comprises about 65% of Virginia's total land area but accounts for over 80% of its population. The Company has trading relationships beyond its retail service territory and buys and sells wholesale electricity, natural gas and other energy commodities. Within this document, the term "Company" refers to the entirety of Virginia Electric and Power Company, including its Virginia and North Carolina operations, and all of its subsidiaries.

The Company manages its daily operations through two operating segments, Energy and Delivery. In addition, the Company also presents its corporate and other operations as an operating segment. See Note 12.

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying unaudited consolidated financial statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles). These unaudited consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.

In the opinion of the Company's management, the accompanying unaudited consolidated financial statements contain all adjustments, including normal recurring accruals, necessary to present fairly the Company's financial position as of June 30, 2002 and its results of operations for the three and six-month periods and cash flows for the six-month periods ended June 30, 2002 and 2001.

The accompanying unaudited consolidated financial statements represent the accounts of the Company and its subsidiaries, with all significant intercompany transactions and accounts eliminated in consolidation.

The consolidated financial statements reflect certain estimates and assumptions made by management in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses for the periods presented. Actual results may differ from those estimates.

The Company reports certain contracts and instruments at fair value in accordance with generally accepted accounting principles. Market pricing and indicative price information from external sources are used to measure fair value when available. In the absence of this information, the Company estimates fair value based on near-term and historical price information and statistical methods. For individual contracts, the use of differing assumptions could have a material effect on the contract's estimated fair value. See Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 for a more detailed discussion of the Company's estimation techniques.

The results of operations for the interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, timing of fuel expense recovery and other factors.

During the second quarter of 2002, the Company extended the useful lives of most of its fossil fuel stations and distribution property based on depreciation studies that indicated longer lives were appropriate after considering the effects of aging, current and planned environmental and other capital expenditures. The new estimated useful lives of the Company's property, plant and equipment are as follows: generation 20-65 years, transmission 30-70 years, distribution 23-53 years, and other 5-25 years. These changes in estimated useful lives reduced depreciation

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expense by $8 million for the second quarter of 2002. These changes are expected to reduce depreciation expense for the entirety of 2002 by approximately $40 million and approximately $60 million on an annual pre-tax basis thereafter.

Certain amounts in the 2001 consolidated financial statements have been reclassified to conform to the 2002 presentation.

Note 3. Recently Issued Accounting Standards

In 2001, FASB issued SFAS No. 142, Goodwill and Other Intangible Assets. SFAS No. 142 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. SFAS No. 142 also requires that these assets be reviewed for impairment at least annually. Intangible assets with finite lives will continue to be amortized over their estimated useful lives.

The Company adopted SFAS No. 142 on January 1, 2002. The Company does not have any goodwill; thus the provisions of SFAS No. 142 requiring the discontinuance of goodwill amortization did not have an impact on the Company's results of operations in the first six months of 2002.

The Company has concluded that all of its intangible assets have finite lives and, therefore, are subject to amortization. Intangible assets amortization expense was $5 million for the second quarter of both 2002 and 2001, and $11 million and $10 million for the six months ended June 30, 2002 and June 30, 2001, respectively. There were no material acquisitions of intangible assets during the first half of 2002. The components of intangible assets were as follows:

Amortization expense for intangible assets is estimated to be $23 million for 2002, $22 million for 2003, $20 million for 2004, $13 million for 2005 and $10 million for 2006.

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In the fourth quarter of 2001, after fully integrating Dominion's existing organization and operations, including those of the Company, with those of Consolidated Natural Gas Company (CNG), management initiated a focused review of Dominion's combined operations. As a result, the Company recognized restructuring costs which included employee severance and related benefits.

Under the 2001 restructuring plan, the Company identified 124 salaried positions to be eliminated and recorded $16 million in employee severance-related costs. Through June 30, 2002, the Company had eliminated 86 positions.

The change in the liabilities for severance and related costs during the first six months of 2002 is presented below:

For additional information on restructuring activities, see Note 5 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.

Note 6. Comprehensive Income

Total comprehensive income was $182 million and $132 million for the three months ended June 30, 2002 and 2001, respectively. Total comprehensive income was $335 million and $141 million for the six months ended June 30, 2002 and 2001, respectively.

Note 7. Derivatives and Hedge Accounting

The Company recorded an after-tax charge to accumulated other comprehensive income (AOCI) of $14 million, net of taxes of $9 million, in the first quarter of 2001 in connection with the January 1, 2001 adoption of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities.

Changes in the Company's accumulated other comprehensive income (loss) associated with the effective portion of the change in fair value of derivatives designated as hedging instruments in cash flow hedges, net of taxes, and related amounts reclassified to earnings follow:

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Based on balances at June 30, 2002, the Company expects to reclassify approximately $1 million of net losses from AOCI to earnings during the next twelve-month period. The actual amounts that will be reclassified to earnings over the next twelve months will vary from this amount as a result of changes in market prices. The effect of amounts being reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., anticipated purchases) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies. As of June 30, 2002, the Company is hedging its exposure to the variability in future cash flows for forecasted transactions over periods of one to four years. There was no hedge ineffectiveness recognized during the three and six month periods ended June 30, 2002. For the six months ended June 30, 2001, the Company recognized a pre-tax increase in earnings of approximately $1 million, principall y in the first quarter, for hedge ineffectiveness.

In June 2001, the FASB cleared guidance that permits certain option-type contracts for the purchase or sale of electricity to qualify for the normal purchases and sales exception, if certain criteria are met. Qualifying contracts, for which the Company elects and formally documents this exception, are not reported at fair value, as otherwise required by SFAS No. 133. In response to the June 2001 guidance and other guidance issued during that quarter, the Company reevaluated certain of its long-term power purchase contracts. The Company determined that such contracts qualified under the guidance and thus designated them as normal purchases and sales. In late December 2001, the FASB issued revised guidance on this matter that became effective April 1, 2002 for the Company. The Company reevaluated its long-term power purchase contracts and determined that such contracts continue to qualify for the normal purchases and sales exception based on the guidance issued in December 2001.

In May 2002, Dominion, CNG and the Company entered into two joint credit facilities that allow aggregate borrowings of up to $2 billion. The facilities include a $1.25 billion 364-day revolving credit facility that terminates in May 2003 and a $750 million 3-year revolving credit facility that terminates in May 2005. The $1.25 billion 364-day revolving credit facility replaced a similar credit facility of $1.75 billion that matured in May 2002. The new facilities will be used for working capital, as support for the combined commercial paper programs of Dominion, CNG and the Company and for other general corporate purposes. The multi-year facility can also be used to support up to $200 million of letters of credit. Letters of credit issued under the facility totaled $185 million at June 30, 2002, and were primarily issued on behalf of CNG.

Long Term Debt

During the first quarter of 2002, the Company redeemed its $200 million, 6.75 percent 1997-A mortgage bonds due February 1, 2007. The Company completed the redemption by issuing $650 million of 5.375 percent senior notes due 2007. The redemption included a direct exchange of $117 million of the senior notes for the mortgage bonds. The Company used the remaining cash proceeds from the issuance of the senior notes to redeem the remaining $83 million of the mortgage bonds and for general corporate purposes, including the repayment of other debt.

In March 2002, the Company repaid $220 million of maturing medium-term notes.

Other than the environmental matter discussed below, there have been no significant developments regarding commitments and contingencies disclosed in Note 19 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001, nor have any significant new matters arisen during the six months ended June 30, 2002.

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During 2000, the Company received a Notice of Violation from the Environmental Protection Agency (EPA), alleging that the Company failed to obtain New Source Review permits under the Clean Air Act prior to undertaking specified construction projects at the Mt. Storm Power Station in West Virginia. The Attorney General of New York filed a suit against the Company alleging similar violations of the Clean Air Act at the Mt. Storm Power Station. The Company also received notices from the Attorneys General of Connecticut and New Jersey of their intentions to file suit for similar violations. Management believes that the Company has obtained the necessary permits for its generating facilities. The Company has reached an agreement in principle with the federal government and the state of New York to resolve this situation. The agreement in principle includes payment of a $5 million civil penalty, a commitment of $14 million for environmental projects in Virginia, West Virginia, Connecticut, New Jersey and New York, and a 12-year, $1.2 billion capital investment program for environmental improvements at the Company's coal-fired generating stations in Virginia and West Virginia. The Company had already committed to a substantial portion of the $1.2 billion expenditures for sulfur dioxide and nitrogen oxide emissions controls. The negotiations over the terms of a binding settlement have expanded beyond the basic agreement in principle and are ongoing. As of June 30, 2002, the Company has recorded, on a discounted basis, $18 million for the civil penalty and environmental projects. In May 2002, the EPA issued a Section 114 request for information about whether projects undertaken at the Company's Chesterfield, Chesapeake, Yorktown, Possum Point and Bremo Bluff power stations were properly permitted under the Clean Air Act's New Source Review requirements, to which the Company responded in a timely manner.

At June 30, 2002, the Company had $57 million of surety bonds associated with the financial assurance requirements imposed by the Nuclear Regulatory Commission with respect to the decommissioning of the Company's nuclear units. Under the terms of the surety bonds, the Company is obligated to indemnify the respective surety bond company for any amounts paid.

The Company, through an unregulated subsidiary, exchanges certain quantities of natural gas with other Dominion affiliates in the ordinary course of business. The affiliated commodity transactions are presented below:

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Through the same unregulated subsidiary, the Company is involved in facilitating Dominion's enterprise risk management strategy. In connection with this strategy, the Company enters into certain commodity derivative contracts with other Dominion affiliates. These contracts, which are principally comprised of commodity swaps, are used by Dominion affiliates to manage commodity price risks associated with purchases and sales of natural gas. As part of Dominion's enterprise risk management strategy, the Company generally manages such risk exposures by entering into offsetting derivative instruments with non-affiliates. The Company reports both affiliated and non-affiliated derivative instruments at fair value, with related changes included in earnings. The Company's consolidated balance sheets include derivative and energy trading assets of $65 million and $159 million with Dominion affiliates at June 30, 2002 and December 31, 2001, respectively, and derivative and energy trading liabilit ies of $67 million and $77 million with Dominion affiliates at June 30, 2002 and December 31, 2001, respectively. The Company's income from operations includes the recognition of the following derivative gains and losses on affiliated transactions:

Dominion Resources Services, Inc. (Dominion Services) provides certain administrative and technical services to the Company. The cost of services provided by Dominion Services to the Company in the second quarter of 2002 and 2001 was approximately $67 million and $76 million, respectively, and in the first six months of 2002 and 2001 was approximately $131 million and $139 million, respectively. The cost of services provided by the Company to Dominion Services was approximately $9 million in the second quarter of both 2002 and 2001 and, in the first six months of 2002 and 2001, was approximately $14 million and $10 million, respectively.

For information about the Company's agreement with Dominion Equipment II, Inc. to develop, construct, finance and lease a new power generation facility at its Possum Point station in Prince William County, Virginia, see Note 19 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.

For additional information on transactions with related parties, see Note 21 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.

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Credit risk is the risk of financial loss to the Company if counterparties fail to perform their contractual obligations. The Company sells electricity and provides distribution and transmission services to a diverse group of customers, including residential, commercial and industrial customers as well as rural electric cooperatives and municipalities. In addition, the Company enters into contracts with various companies in the energy industry for purchases and sales of energy-related commodities, including natural gas, electricity in its energy trading, hedging and arbitrage activities. These transactions principally occur in the Northeast, Midwest and Mid-Atlantic regions of the United States. Management does not believe that this geographic concentration contributes significantly to the Company's overall exposure to credit risk.

Credit risk associated with trade accounts receivable from energy consumers is limited due to the large number of customers. Dominion and its subsidiaries, including the Company, maintain credit policies with respect to its counterparties that management believes minimize overall credit risk. Such policies include the evaluation of a prospective counterparty's financial condition, collateral requirements, where deemed necessary, and in the case of energy trading, hedging and arbitrage activities, the use of standardized agreements that facilitate the netting of cash flows associated with a single counterparty. On behalf of the Company, Dominion also monitors the financial condition of existing counterparties on an ongoing basis. The Company maintains a provision for credit losses based upon factors surrounding the credit risk of its customers, historical trends and other information. Management believes, based on Dominion's credit policies and the June 30, 2002 provision for credit losses, that it is unlikel y that a material adverse effect on its financial position, results of operations or cash flows would occur as a result of counterparty nonperformance.

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The Company manages its operations through the following operating segments:

Energy includes the Company's portfolio of generating facilities and power purchase contracts and its trading and marketing activities.

Delivery includes bulk power transmission, distribution and metering services and customer service and continues to be subject to the requirements of SFAS No. 71, Accounting for the Effects of Certain Types of Regulation.

Corporate and Other includes certain expenses which are not allocated to the Energy and Delivery segments, including those related to the following: 1) corporate operations and assets; and 2) an after-tax charge of $136 million related to the termination of certain long-term power purchase contracts in 2001. (See Note 19 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.)

For more information, see Note 23 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.

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Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) discusses the results of operations and general financial condition of Virginia Power. MD&A should be read in conjunction with the Consolidated Financial Statements. "The Company" is used throughout MD&A and, depending on the context of its use, may represent any of the following: the legal entity, Virginia Electric and Power Company, one of Virginia Power's consolidated subsidiaries or the entirety of Virginia Power and its consolidated subsidiaries. The Company is a wholly-owned subsidiary of Dominion Resources, Inc.

From time to time the Company makes statements concerning its expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases the reader can identify these forward-looking statements by words such as "anticipate", "estimate", "expect", "forecast", "believe", "should", "could", "plan", "may" or other similar words.

Forward-looking statements are made by the Company with full knowledge that risks and uncertainties exist that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially are often presented with the forward-looking statements themselves. In addition, other factors could cause actual results to differ materially from those indicated in any forward-looking statement. These factors include, but are not limited to:

• Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;
• Extreme weather events that could disrupt or cause catastrophic damage to the Company's electric distribution and transmission systems;
• Exposure to unanticipated changes in prices for energy commodities purchased or sold;
• State and federal legislative and regulatory developments, including deregulation and restructuring of the electric utility industry and changes in environmental and other laws and regulations to which the Company is subject;
• The effects of competition, including the extent and timing of the entry of additional competitors in the electric market;
• The Company's pursuit of potential business strategies, including acquisitions or dispositions of assets and its business separation plan;
• Regulatory factors such as changes in the policies or procedures that set rates, changes in the Company's ability to recover investments made under traditional regulation through rates and changes to the frequency and timing of rate increases;
• Transfer of control over the Company's transmission facilities to a regional transmission entity;
• Risks associated with the operation of nuclear facilities;
• Financial or regulatory accounting principles or policies imposed by standard-setting bodies;
• Political, legal and economic conditions and developments in the U.S., including the threat of domestic terrorism, inflation rates and monetary fluctuations;
• Changing market conditions and other factors related to physical and financial energy trading activities, including energy commodity price, basis, counterparty credit risk, liquidity, volatility, capacity, transmission, currency exchange rates, interest rates and warranty risks;
• Financial market conditions, including availability and cost of capital, and the Company's ability to obtain financing on favorable terms;
• Changing rating agency requirements;
• The performance of the Company's projects and the success of efforts to invest in and develop new opportunities, including development of power generation facilities;
• Unanticipated changes in operating expenses and capital expenditures;
• The cost of replacement electric energy in the event of unscheduled generation outages; and
• Employee workforce factors, including collective bargaining agreements and labor negotiations with union employees.

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The Company has based its forward-looking statements on management's beliefs and assumptions using information available at the time the statements were made. The Company cautions the reader not to place undue reliance on its forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, materially differ from actual results. The Company undertakes no obligation to update any forward-looking statements to reflect developments occurring after the statements are made. Interested parties should also consider other risks identified from time to time in the Company's reports and registration statements filed with the SEC.

In general, management's discussion of the Company's results of operations focuses on the contributions of its operating segments. However, the discussion of the Company's financial condition under Liquidity and Capital Resources is for the entirety of the Company. The Company's two operating segments are Energy and Delivery. In addition, the Company presents its corporate and other operations, including certain expenses which are not allocated to the Energy and Delivery segments, as a segment. For more information on the Company's operating segments, see Note 12 to the Consolidated Financial Statements.

Critical Accounting Policies

See MD&A in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 for a detailed discussion of the Company's critical accounting policies. These policies include the accounting for risk management and energy trading contracts at fair value and accounting for regulated operations.

Results Of Operations

The Company's discussion of its results of operations includes a summary of contributions by the operating segments to net income, an overview of consolidated 2002 and 2001 results of operations and a more detailed discussion of the results of operations of the operating segments.

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The following table provides data on electricity supplied by Energy and transported by Delivery:

Net income increased $170 million to $329 million for the six months ended June 30, 2002, as compared to the same period in 2001. Net income increased due primarily to an after-tax charge of $136 million taken in the first quarter of 2001 in connection with the termination of certain long-term power purchase agreements under which the Company previously purchased electric energy. Operating revenue decreased in 2002, reflecting the effect of comparably milder weather on regulated electric sales during the first quarter, offset by customer growth and the increase in second quarter sales resulting from comparably higher temperatures. Net revenue from trading and marketing operations also decreased for the first six months of 2002. Other taxes decreased, as compared to 2001, primarily due to a reduction in average business and occupation tax rates and the impact of favorable resolution of prior year sales and use tax issues.

Energy Segment

Second Quarter 2002 Results

Energy's net income contribution increased $22 million to $105 million for the three months ended June 30, 2002, as compared to the same period in 2001. Comparably higher temperatures and customer growth contributed approximately $22 million and $10 million, respectively, to the $44 million increase in regulated electric sales. The increase also included approximately $10 million attributable to higher fuel recoveries, which is directly offset in electric fuel and energy purchases expense and does not contribute to net income. There were 25 percent more cooling degree days in the second quarter of 2002 as compared to 2001, and there were approximately 44,000 new electric customers added over the last twelve months. The Company's non-regulated electric and gas trading and marketing operations' revenue decreased by $18 million in the second quarter of 2002, as compared to 2001. Non-regulated gas sales revenue decreased $11 million due to the effect of unfavorable price changes on commodity contracts held and n ot yet settled, partially offset by increased trading margins on comparably higher volumes of trades.

Operating expenses increased $12 million to $710 million in the second quarter of 2002, primarily due to increases in other operations and maintenance expense, offset by decreases in other taxes and depreciation. Other operations and maintenance expense increased primarily due to a $5 million increase in general and administrative expenses and a $5 million increase in credit reserves. Depreciation expense decreased by $3 million, representing the net effect of a $5 million decrease for changes in the estimated useful lives of fossil-fired generation property, offset by a $2 million increase related to new property additions. See Future Issues for additional discussion.

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Net income contribution for the Energy segment increased $13 million to $192 million for the six months ended June 30, 2002, as compared to the same period in 2001. While regulated electric sales revenue was higher for the second quarter of 2002, as compared to 2001, such revenue increased only approximately $3 million for the six month period ending June 30, 2002, as compared to 2001, as a result of milder weather in the first quarter of 2002. The Company's trading and marketing operations' revenue decreased by $42 million in the first six months of 2002, as compared to 2001. Non-regulated gas sales revenue decreased approximately $58 million due to the effect of unfavorable price changes on commodity contracts held and not yet settled, partially offset by increased trading margins on comparably higher volumes of trades. The decrease in the non-regulated gas revenues was partially offset by an approximately $16 million increase in non-regulated electric sales revenue due primarily to the effect of f avorable price changes on commodity contracts held and not yet settled and increased volumes of trading activities.

Operating expenses decreased $32 million to $1,394 million in the six month period ended June 30, 2002, primarily due to decreases in electric fuel and energy purchases offset by increases in other operations and maintenance expense and other taxes. Electric fuel and energy purchases, net decreased $29 million primarily due to a change in generation mix and comparatively milder weather in the first quarter of 2002. The increases in other operations and maintenance expense is primarily due to a $7 million increase in administrative and general expenses and a $5 million increase in credit reserves.

Energy manages the Company's energy trading, hedging and arbitrage activities through the Dominion Energy Clearinghouse (the Clearinghouse). In Selected Information-Energy Trading Activities in the MD&A of the Company's Annual Report on Form 10-K for the year ended December 31, 2001, the Company discussed the energy trading, hedging and arbitrage activities of the Clearinghouse and related accounting policies. For additional discussion of trading activities, see Market Rate Sensitive Instruments and Risk Management.

A summary of the changes in the unrealized gains and losses in the Company's portfolio of energy contracts held for trading purposes during the first six months of 2002 follows:

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The balance of net unrealized gains and losses in the Company's portfolio of energy trading contracts at June 30, 2002 is summarized in the following table based on the approach used to determine fair value and the contract settlement or delivery dates: