UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2023~~2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to


Commission File Number	Exact name of registrants as specified in their charters, address of principal executive offices and registrants’ telephone number	I.R.S. Employer Identification Number

001-08489	DOMINION ENERGY, INC.	54-1229715

000-55337	VIRGINIA ELECTRIC AND POWER COMPANY	54-0418825

	120 Tredegar Street Richmond, Virginia 23219 (804) 819-2284

State or other jurisdiction of incorporation or organization of the registrants: Virginia

Securities registered pursuant to Section 12(b) of the Act:

Registrant

Trading Symbol

Title of Each Class

Name of Each Exchange

on Which Registered

DOMINION ENERGY, INC.

Common Stock, no par value

New York Stock Exchange

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.

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Dominion Energy, Inc.


Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Smaller reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Virginia Electric and Power Company


Large accelerated filer	☐	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☒	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Dominion Energy, Inc. Yes ☐ No ☒ Virginia Electric and Power Company Yes ☐ No ☒

At April ~~28, 2023,~~26, 2024, the latest practicable date for determination, Dominion Energy, Inc. had ~~835,941,420~~838,210,685 shares of common stock outstanding and Virginia Electric and Power Company had ~~274,723~~324,245 shares of common stock outstanding. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company’s common stock.

This combined Form 10-Q represents separate filings by Dominion Energy, Inc. and Virginia Electric and Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Virginia Electric and Power Company makes no representation as to the information relating to Dominion Energy, Inc.’s other operations.

VIRGINIA ELECTRIC AND POWER COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE FORMAT.

COMBINED INDEX


		Page Number
	Glossary of Terms	3

	PART I. Financial Information

Item 1.	Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5558
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6974
Item 4.	Controls and Procedures	7075

	PART II. Other Information

Item 1.	Legal Proceedings	7176
Item 1A.	Risk Factors	7176
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7176
Item 5.	Other Information	76
Item 6.	Exhibits	7277

GLOSSARY OF TERMS

The following abbreviations or acronyms used in this Form 10-Q are defined below:


Abbreviation or Acronym		Definition
2017 Tax Reform Act		An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017
~~2019 Equity Units~~		Dominion Energy’s 2019 Series A Equity Units issued in June 2019, initially in the form of 2019 Series A Corporate Units, which consisted of a stock purchase contract and a 1/10 interest in a share of the Series A Preferred Stock
2021 Triennial Review		Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the four successive 12-month test periods beginning January 1, 2017 and ending December 31, 2020
2023 Biennial Review		Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2021 and ending December 31, 2022 and prospective rate base setting for the succeeding ~~two-year period~~annual periods beginning January 1, 2024 and ending December 31, 2025
2025 Biennial Review		Future Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the two successive 12-month test periods beginning January 1, 2023 and ending December 31, 2024 and prospective rate base setting for the succeeding annual periods beginning January 1, 2026 and ending December 31, 2027
ACE Rule		Affordable Clean Energy Rule
AES		The legal entity The AES Corporation, one or more of its consolidated subsidiaries, or the entirety of The AES Corporation and its consolidated subsidiaries
AFUDC		Allowance for funds used during construction
~~AMI~~		~~Advanced Metering Infrastructure~~
AOCI		Accumulated other comprehensive income (loss)
ARO		Asset retirement obligation
Atlantic Coast Pipeline		Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy and Duke Energy
Atlantic Coast Pipeline Project		A previously proposed approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which would have been owned by Dominion Energy and Duke Energy
bcf		Billion cubic feet
~~Bear Garden~~BHE		~~A 622 MW combined-cycle, natural gas-fired power station in Buckingham County, Virginia~~The legal entity, Berkshire Hathaway Energy Company, one or more of its consolidated subsidiaries (including Eastern Energy Gas Holdings, LLC, Northeast Midstream Partners, LP and Cove Point effective November 2020), or the entirety of Berkshire Hathaway Energy Company and its consolidated subsidiaries
Birdseye		Birdseye Renewable Energy, LLC
BOEM		Bureau of Ocean Energy Management
CAA		Clean Air Act
CCR		Coal combustion residual
CCRO		Customer credit reinvestment offset
CEO		Chief Executive Officer
~~CEP~~		~~Capital Expenditure Program, as established by House Bill 95, Ohio legislation enacted in 2011, deployed by East Ohio to recover certain costs associated with capital investment~~
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund
CFIUS		The Committee on Foreign Investment in the U.S.
CFO		Chief Financial Officer
CO2		Carbon dioxide
~~Colonial Trail West~~		~~A 142 MW utility-scale solar power station located in Surry County, Virginia~~
Companies		Dominion Energy and Virginia Power, collectively
Contracted ~~Assets~~Energy		Contracted ~~Assets~~Energy operating segment


Cooling degree days		Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, or 75 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 75 degrees, as applicable, and the average temperature for that day
Cove Point		Cove Point LNG, LP (formerly known as Dominion Energy Cove Point LNG, LP)
CPCN		Certificate of Public Convenience and Necessity


CVOW Commercial Project		A proposed 2.6 GW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters adjacent to the CVOW Pilot Project and associated interconnection facilities in and around Virginia Beach, Virginia
CVOW Pilot Project		A 12 MW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters
CWA		Clean Water Act
~~DEQPS~~		~~MountainWest Pipeline Services, Inc. (formerly known as Dominion Energy Questar Pipeline Services, Inc.)~~
DES		Dominion Energy Services, Inc.
DESC		The legal entity, Dominion Energy South Carolina, Inc., one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated entities
DGI		Dominion Generation, Inc.
DOE		U.S. Department of Energy
Dominion Energy		The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia Power) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries
Dominion Energy Direct®		A dividend reinvestment and open enrollment direct stock purchase plan
Dominion Energy ~~Questar Pipeline~~		The legal entity, MountainWest Pipeline, LLC (formerly known as Dominion Energy Questar Pipeline, LLC), one or more of its consolidated subsidiaries (including its 50% noncontrolling interest in White River Hub), or the entirety of Dominion Energy Questar Pipeline, LLC and its consolidated subsidiaries
~~Dominion Energy~~ South Carolina		Dominion Energy South Carolina operating segment
Dominion Energy Virginia		Dominion Energy Virginia operating segment
Dominion Privatization		Dominion Utility Privatization, LLC, a joint venture between Dominion Energy and Patriot
DSM		Demand-side management
Dth		Dekatherm
Duke Energy		The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy Corporation and its consolidated subsidiaries
Eagle Solar		Eagle Solar, LLC, a wholly-owned subsidiary of DGI
East Ohio		The East Ohio Gas Company ~~doing business as~~(a subsidiary of Enbridge effective March 2024)
East Ohio Transaction		The sale by Dominion Energy to Enbridge of all issued and outstanding capital stock in Dominion Energy Questar Corporation and its consolidated subsidiaries, which following a reorganization included East Ohio and Dominion Energy Gas Distribution, LLC, pursuant to a purchase and sale agreement entered into on September 5, 2023, which was completed on March 6, 2024
Enbridge		The legal entity, Enbridge Inc., one or more of its consolidated subsidiaries (including Enbridge Elephant Holdings, LLC, Enbridge Parrot Holdings, LLC, and Enbridge Quail Holdings, LLC), or the entirety of Enbridge Inc. and its consolidated subsidiaries
EPA		U.S. Environmental Protection Agency
EPS		Earnings per common share
FCC		Federal Communications Commission
FERC		Federal Energy Regulatory Commission
Fitch		Fitch Ratings Ltd.
FTRs		Financial transmission rights
GAAP		U.S. generally accepted accounting principles

~~Gas Distribution~~		~~Gas Distribution operating segment~~
~~GENCO~~		~~South Carolina Generating Company, Inc.~~
GHG		Greenhouse gas
GTSA		Virginia Grid Transformation and Security Act of 2018
GW		Gigawatt
Heating degree days		Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, or 60 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 60 degrees, as applicable, and the average temperature for that day
~~Hope~~IRA		~~Hope Gas, Inc., doing business~~An Act to Provide for Reconciliation Pursuant to Title II of Senate Concurrent Resolution 14 of the 117th Congress (also known as ~~Dominion Energy West Virginia through~~the Inflation Reduction Act of 2022) enacted on August 16, 2022
ISO		Independent system operator


Jones Act		The Coastwise Merchandise Statute (commonly known as the Jones Act) 46 U.S.C. §55102 regulating U.S. maritime commerce
kV		Kilovolt
~~LNG~~		~~Liquefied natural gas~~
MD&A		Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGD		Million gallons per day
Millstone		Millstone nuclear power station
Moody’s		Moody’s Investors Service
MW		Megawatt
MWh		Megawatt hour
Natural Gas Rate Stabilization Act		Legislation effective February 2005 designed to improve and maintain natural gas service infrastructure to meet the needs of customers in South Carolina
NAV		Net asset value
NND Project		V.C. Summer Units 2 and 3 nuclear development project under which DESC and Santee Cooper undertook to construct two Westinghouse AP1000 Advanced Passive Safety nuclear units in Jenkinsville, South Carolina
North Anna		North Anna nuclear power station
North Carolina Commission		North Carolina Utilities Commission
NOX		Nitrogen oxide
Ohio Commission		Public Utilities Commission of Ohio
Order 1000		Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development
OSWP		OSW Project LLC, a proposed limited liability company to be owned by Virginia Power at formation and subsequently owned by Virginia Power and Stonepeak
ozone season		The period May 1st through September 30th, as determined on a federal level
Patriot		Patriot Utility Privatizations, LLC, a joint venture between Foundation Infrastructure Partners, LLC and John Hancock Life Insurance Company (U.S.A.) and affiliates
PFAS		Per- and polyfluorinated substances, a group of widely used chemicals that break down very slowly over time in the environment
~~PIR~~		~~Pipeline Infrastructure Replacement program deployed by East Ohio~~
PJM		PJM Interconnection, LLC
PSD		Prevention of significant deterioration
PSNC		Public Service Company of North Carolina, Incorporated, doing business as Dominion Energy North Carolina


~~Q-Pipe Group~~PSNC Transaction		~~Collectively,~~The proposed sale by Dominion Energy ~~Questar Pipeline, DEQPS and MountainWest Energy Holding Company, LLC (formerly known as QPC Holding Company,~~to Enbridge of all of its membership interests in Fall North Carolina Holdco LLC and its ~~subsidiary MountainWest Southern Trails Pipeline Company (formerly known as Questar Southern Trails Pipeline Company))~~consolidated subsidiaries, which following a reorganization includes PSNC, pursuant to a purchase and sale agreement entered into on September 5, 2023
Questar Gas		Questar Gas Company, doing business as Dominion Energy Utah, Dominion Energy Wyoming and Dominion Energy Idaho
~~Regulation Act~~Questar Gas Transaction		~~Legislation effective July 1, 2007, that amended the Virginia Electric Utility Restructuring Act~~The proposed sale by Dominion Energy to Enbridge of all of its membership interests in Fall West Holdco LLC and ~~fuel factor statute,~~its consolidated subsidiaries, which ~~legislation is also known as the Virginia Electric Utility Regulation Act, as amended in 2015, 2018~~following a reorganization includes Questar Gas, Wexpro, Wexpro II Company, Wexpro Development Company, Dominion Energy Wexpro Services Company, Questar InfoComm Inc. and Dominion Gas Projects Company, LLC, pursuant to a purchase and sale agreement entered into on September 5, 2023
RGGI		Regional Greenhouse Gas Initiative
Rider CCR		A rate adjustment clause associated with the recovery of costs related to the removal of CCR at certain power stations
Rider CE		A rate adjustment clause associated with the recovery of costs related to certain renewable generation, energy storage and related transmission facilities in Virginia, ~~as well as~~ certain small-scale distributed generation projects and related transmission facilities
~~Rider D~~		~~A rate mechanism which allows PSNC to recover from customers all prudently incurred gas costs~~ and, beginning May 2024, power purchase agreements for the ~~related portion of uncollectible expenses as well as losses on negotiated gas~~energy, capacity, ancillary services and ~~transportation sales~~renewable energy credits owned by third parties
Rider GT		A rate adjustment clause associated with the recovery of costs associated with electric distribution grid transformation projects that the Virginia Commission has approved as authorized by the GTSA


~~Rider R~~		~~A rate adjustment clause associated with the recovery of costs related to Bear Garden~~
~~Rider S~~		~~A rate adjustment clause associated with the recovery of costs related to the Virginia City Hybrid Energy Center~~
Rider T1		A rate adjustment clause to recover the difference between revenues produced from transmission rates included in base rates, and the new total revenue requirement developed annually for the rate years effective September 1
~~Rider U~~		~~A rate adjustment clause associated with the recovery of costs of new underground distribution facilities~~
~~Rider US-3~~		~~A rate adjustment clause associated with the recovery of costs related to Colonial Trail West and Spring Grove 1~~
~~Rider US-4~~		~~A rate adjustment clause associated with the recovery of costs related to Sadler Solar~~
~~Rider W~~		~~A rate adjustment clause associated with the recovery of costs related to Warren County~~
ROE		Return on equity
RTO		Regional transmission organization
~~Sadler Solar~~		~~A 100 MW utility-scale solar power station located in Greensville County, Virginia~~
Santee Cooper		South Carolina Public Service Authority
SCANA		The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA Corporation and its consolidated subsidiaries
SCANA Combination		Dominion Energy’s acquisition of SCANA completed on January 1, 2019 pursuant to the terms of the agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA
SCANA Merger Approval Order		Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination
SCDOR		South Carolina Department of Revenue
SEC		U.S. Securities and Exchange Commission
Series ~~A Preferred Stock~~		Dominion Energy’s Series A Cumulative Perpetual Convertible Preferred Stock, without par value, with a liquidation preference of $1,000 per share (previously designated the 1.75% Series A Cumulative Perpetual Convertible Preferred Stock)
~~Series~~ B Preferred Stock		Dominion Energy’s 4.65% Series B Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share
Series C Preferred Stock		Dominion Energy’s 4.35% Series C Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share
South Carolina Commission		Public Service Commission of South Carolina
~~Southwest Gas~~		~~The legal entity, Southwest Gas Holdings, Inc., one or more of its consolidated subsidiaries, or the entirety of Southwest Gas Holdings, Inc. and its consolidated subsidiaries~~
~~Spring Grove 1~~		~~A 98 MW utility-scale solar power station located in Surry County, Virginia~~
Standard & Poor’s		Standard & Poor’s Ratings Services, a division of S&P Global Inc.
Stonepeak		The legal entity Stonepeak Partners, LLC, one or more of its affiliated investment vehicles (including Dunedin Members, LLC) or the entirety of Stonepeak Partners, LLC and its affiliated investment vehicles
Summer		V.C. Summer nuclear power station
~~Ullico~~Surry		~~The legal entity, Ullico Inc., one or more of its consolidated subsidiaries, or the entirety of Ullico Inc. and its consolidated subsidiaries~~Surry nuclear power station
Utah Commission		Utah Public Service Commission
VCEA		Virginia Clean Economy Act of March 2020


VEBA		Voluntary Employees’ Beneficiary Association
VIE		Variable interest entity
~~Virginia City Hybrid Energy Center~~		~~A 610 MW baseload carbon-capture compatible, clean coal powered electric generation facility in Wise County, Virginia~~


Virginia Commission		Virginia State Corporation Commission
Virginia Power		The legal entity, Virginia Electric and Power Company, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries
~~Warren County~~VPFS		~~A 1,349 MW combined-cycle, natural gas-fired power station in Warren County,~~ Virginia Power Fuel Securitization, LLC
Wexpro		The legal entity, Wexpro Company, one or more of its consolidated subsidiaries, or the entirety of Wexpro Company and its consolidated subsidiaries
~~White River Hub~~Wyoming Commission		~~MountainWest White River Hub, LLC (formerly known as White River Hub, LLC)~~
~~Wrangler~~		~~Wrangler Retail Gas Holdings, LLC, a partnership between Dominion Energy (through March 2022) and Interstate Gas Supply, Inc.~~Wyoming Public Service Commission

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended March 31,						Three Months Ended March 31,
	2023			2022			2024			2023
(millions, except per share amounts)
Operating Revenue	$	5,252		$	4,279		$	3,632		$	3,883
Operating Expenses
Electric fuel and other energy-related purchases		1,022			678			959			1,022
Purchased electric capacity		8			13			12			8
Purchased gas		764			645			120			123
Other operations and maintenance		921			1,054			856			742
Depreciation, depletion and amortization		720			698
Depreciation and amortization								621			622
Other taxes		275			253			202			191
Impairment of assets and other charges (benefits)		98			(10	)
Impairment of assets and other charges								30			98
Losses (gains) on sales of assets		(1	)		(28	)		(1	)		(2	)
Total operating expenses		3,807			3,303			2,799			2,804
Income from operations		1,445			976			833			1,079
Earnings from equity method investees		80			80
Other income (expense)		284			46			435			276
Interest and related charges		586			174			574			479
Income from continuing operations including noncontrolling interests before income tax expense		1,223			928			694			876
Income tax expense		221			236			134			176
Net Income From Continuing Operations		1,002			692			560			700
Net Income (Loss) From Discontinued Operations(1)		(5	)		19
Net Income From Discontinued Operations(1)								114			281
Net Income Including Noncontrolling Interests		997			711			674			981
Noncontrolling Interests		—			—			—			—
Net Income Attributable to Dominion Energy	$	997		$	711		$	674		$	981
Amounts attributable to Dominion Energy
Net income from continuing operations	$	1,002		$	692		$	560		$	700
Net income (loss) from discontinued operations		(5	)		19
Net income from discontinued operations								114			281
Net income attributable to Dominion Energy	$	997		$	711		$	674		$	981
EPS - Basic
Net income from continuing operations	$	1.18		$	0.82		$	0.64		$	0.81
Net income (loss) from discontinued operations		(0.01	)		0.02
Net income from discontinued operations								0.14			0.34
Net income attributable to Dominion Energy	$	1.17		$	0.84		$	0.78		$	1.15
EPS - Diluted
Net income from continuing operations	$	1.18		$	0.81		$	0.64		$	0.81
Net income (loss) from discontinued operations		(0.01	)		0.02
Net income from discontinued operations								0.14			0.34
Net income attributable to Dominion Energy	$	1.17		$	0.83		$	0.78		$	1.15

(1)

Includes income tax expense ~~(benefit)~~ of $($151) million and $656 million for the three months ended ~~three months ended~~ March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,						Three Months Ended March 31,
	2023			2022			2024			2023
(millions)
Net income including noncontrolling interests	$	997		$	711		$	674		$	981
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)		(9	)		25			7			(9	)
Changes in unrealized net gains (losses) on investment securities(2)		17			(62	)		(26	)		17
Changes in net unrecognized pension and other postretirement benefit costs(3)		—			28			(237	)		—
Amounts reclassified to net income:
Amounts reclassified to net income (loss):
Net derivative (gains) losses-hedging activities(4)		8			10			7			8
Net realized (gains) losses on investment securities(5)		1			3			6			1
Net pension and other postretirement benefit costs (credits) (6)		(11	)		17			5			(11	)
Changes in other comprehensive income from equity method investees(7)		1			1			—			1
Total other comprehensive income		7			22
Total other comprehensive income (loss)								(238	)		7
Comprehensive income including noncontrolling interests		1,004			733			436			988
Comprehensive income attributable to noncontrolling interests		—			—			—			—
Comprehensive income attributable to Dominion Energy	$	1,004		$	733		$	436		$	988

(1) Net of $(1) million and $3 million tax for the three months ended March 31, 2024 and 2023, respectively.

(2) Net of $10 million and $(87) million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

~~(2)~~(3) Net of $($784) million and $19$— million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

~~(3)~~(4) Net of $—$(4) million and $(103) million tax for the three months ended March 31, ~~2023~~2024 and ~~2022, respectively.~~

~~(4) Net of $(~~3~~) million and $(~~4~~) million tax for the three months ended March 31,~~ 2023, ~~and 2022,~~ respectively.

(5) Net of $(12) million and $(1) million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(6) Net of $(1) million and $4 ~~million and $(~~6) million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(7) Net of $— million and $— million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2023			December 31, 2022(1)			March 31, 2024			December 31, 2023(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	1,792		$	153		$	265		$	184
Customer receivables (less allowance for doubtful accounts of $33 and $31)		2,437			2,952
Other receivables (less allowance for doubtful accounts of $3 at both dates)		398			405
Customer receivables (less allowance for doubtful accounts of $39 and $38)								2,148			2,251
Other receivables (less allowance for doubtful accounts of $1 at both periods)								241			258
Inventories		1,746			1,729			1,719			1,698
Derivative assets		264			1,137
Margin deposit assets		193			480
Regulatory assets		2,156			2,340
Other		619			654
Regulatory assets(2)								1,092			1,309
Other(2)								1,018			1,158
Current assets held for sale								9,706			18,529
Total current assets		9,605			9,850			16,189			25,387
Investments
Nuclear decommissioning trust funds		6,262			5,957			7,418			6,946
Investment in equity method affiliates		3,014			3,012			137			268
Other		388			390			339			324
Total investments		9,664			9,359			7,894			7,538
Property, Plant and Equipment
Property, plant and equipment		92,748			91,202			85,497			83,417
Accumulated depreciation, depletion and amortization		(28,123	)		(27,742	)
Accumulated depreciation and amortization								(24,941	)		(24,637	)
Total property, plant and equipment, net		64,625			63,460			60,556			58,780
Deferred Charges and Other Assets
Goodwill		7,295			7,295			4,143			4,143
Regulatory assets		8,951			9,087
Regulatory assets(2)								7,859			8,356
Other		5,185			5,192			5,364			4,828
Total deferred charges and other assets		21,431			21,574			17,366			17,327
Total assets	$	105,325		$	104,243		$	102,005		$	109,032

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, ~~2022~~2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 15 for amounts attributable to VIEs.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)


	March 31, 2023			December 31, 2022(1)			March 31, 2024			December 31, 2023(1)
(millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Securities due within one year	$	4,352		$	3,341
Securities due within one year(2)							$	2,344		$	6,589
Supplemental credit facility borrowings								450			450
Short-term debt		3,546			3,423			3,626			3,956
Accounts payable		1,125			1,825			721			921
Accrued interest, payroll and taxes(2)		1,037			1,199			1,286			1,075
Derivative liabilities		371			778
Regulatory liabilities		651			946			512			522
Other(2)		1,680			1,938
Other(3)								2,093			2,078
Current liabilities held for sale								4,386			8,885
Total current liabilities		12,762			13,450			15,418			24,476
Long-Term Debt
Long-term debt		37,624			36,832			32,960			32,368
Securitization bonds(2)								1,217			—
Junior subordinated notes		1,387			1,387			688			688
Supplemental credit facility borrowings		900			450
Other		247			245			199			192
Total long-term debt		40,158			38,914			35,064			33,248
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		6,908			6,698
Deferred income taxes								6,421			6,611
Deferred investment tax credits								1,089			1,098
Regulatory liabilities		10,092			10,107			9,043			8,674
Other		7,049			7,193			7,549			7,396
Total deferred credits and other liabilities		24,049			23,998			24,102			23,779
Total liabilities		76,969			76,362			74,584			81,503
Commitments and Contingencies (see Note 17)
Shareholders' Equity
Shareholders’ Equity
Preferred stock (see Note 16)		1,783			1,783			1,783			1,783
Common stock – no par(3)		23,652			23,605
Common stock – no par(4)								23,763			23,728
Retained earnings		4,486			4,065			3,619			3,524
Accumulated other comprehensive loss		(1,565	)		(1,572	)		(1,744	)		(1,506	)
Shareholders' equity		28,356			27,881
Shareholders’ equity								27,421			27,529
Noncontrolling interests		—			—			—			—
Total shareholders' equity		28,356			27,881
Total liabilities and shareholders' equity	$	105,325		$	104,243
Total shareholders’ equity								27,421			27,529
Total liabilities and shareholders’ equity							$	102,005		$	109,032

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, ~~2022~~2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 15 for amounts attributable to VIEs.

(3) See Note 10 for amounts attributable to related parties.

~~(3)~~(4) 1.8 billion shares authorized; ~~836~~ ~~million and~~ ~~835~~838 million shares outstanding at both March 31, ~~2023~~2024 and December 31, ~~2022, respectively.~~2023.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)


	Preferred Stock				Common Stock				Dominion Energy Shareholders														Preferred Stock				Common Stock				Dominion Energy Shareholders
	Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Total Shareholders' Equity			Noncontrolling Interests		Total Equity			Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Total Shareholders’ Equity			Noncontrolling Interests		Total Equity
(millions, except per share amounts)
December 31, 2021		2	$	1,783		810	$	21,610	$	5,373		$	(1,458	)	$	27,308		$	—	$	27,308
Net income including noncontrolling interests										711						711			—		711
Issuance of stock						1		45								45					45
Stock awards (net of change in unearned compensation)								2								2					2
Preferred stock dividends (see Note 16)										(27	)					(27	)				(27	)
Common stock dividends ($0.6675 per common share) and distributions										(541	)					(541	)		—		(541	)
Other comprehensive income, net of tax													22			22					22
March 31, 2022		2	$	1,783		811	$	21,657	$	5,516		$	(1,436	)	$	27,520		$	—	$	27,520


December 31, 2022		2	$	1,783		835	$	23,605	$	4,065		$	(1,572	)	$	27,881		$	—	$	27,881			2	$	1,783		835	$	23,605	$	3,843		$	(1,572	)	$	27,659		$	—	$	27,659
Net income including noncontrolling interests										997						997			—		997											981						981			—		981
Issuance of stock						1		43								43					43							1		43								43					43
Stock awards (net of change in unearned compensation)								4								4					4									4								4					4
Preferred stock dividends (see Note 16)										(20	)					(20	)				(20	)										(20	)					(20	)				(20	)
Common stock dividends ($0.6675 per common share) and distributions										(557	)					(557	)		—		(557	)
Common stock dividends ($0.6675 per common share) and distributions																																(557	)					(557	)		—		(557	)
Other comprehensive income, net of tax													7			7					7														7			7					7
Other										1						1					1											1						1					1
March 31, 2023		2	$	1,783		836	$	23,652	$	4,486		$	(1,565	)	$	28,356		$	—	$	28,356			2	$	1,783		836	$	23,652	$	4,248		$	(1,565	)	$	28,118		$	—	$	28,118


December 31, 2023																								2	$	1,783		838	$	23,728	$	3,524		$	(1,506	)	$	27,529		$	—	$	27,529
Net income including noncontrolling interests																																674						674			—		674
Issuance of stock																												—		31								31					31
Stock awards (net of change in unearned compensation)																												—		4								4					4
Preferred stock dividends (see Note 16)																																(20	)					(20	)				(20	)
Common stock dividends ($0.6675 per common share) and distributions																																(559	)					(559	)		—		(559	)
Other comprehensive loss, net of tax																																			(238	)		(238	)				(238	)
March 31, 2024																								2	$	1,783		838	$	23,763	$	3,619		$	(1,744	)	$	27,421		$	—	$	27,421

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

2023

2022

(millions)

Operating Activities

Net income including noncontrolling interests

$
997

$
711

Adjustments to reconcile net income including noncontrolling interests to net cash
provided by operating activities:

Depreciation, depletion and amortization (including nuclear fuel)

799

773

Deferred income taxes and investment tax credits

174

246

Impairment of assets and other charges (benefits)

98

(13
)
Losses (gains) on sales of assets and equity method investments

—

(34
)
Net (gains) losses on nuclear decommissioning trust funds and other investments

(134
)

113

Other adjustments

23

(72
)
Changes in:

Accounts receivable

519

28

Inventories

(21
)

80

Deferred fuel and purchased gas costs, net

89

(256
)
Prepayments

43

21

Accounts payable

(588
)

52

Accrued interest, payroll and taxes

(161
)

(192
)
Margin deposit assets and liabilities

286

(52
)
Net realized and unrealized changes related to derivative activities

232

29

Pension and other postretirement benefits

(122
)

(117
)
Other operating assets and liabilities

(137
)

(192
)
Net cash provided by operating activities

2,097

1,125

Investing Activities

Plant construction and other property additions (including nuclear fuel)

(2,220
)

(1,622
)
Acquisition of solar development projects

(11
)

(37
)
Proceeds from sales of securities

544

814

Purchases of securities

(607
)

(824
)
Proceeds from sale of assets and equity method investments

—

146

Contributions to equity method affiliates

(10
)

(15
)
Other

2

(36
)
Net cash used in investing activities

(2,302
)

(1,574
)
Financing Activities

Issuance of short-term debt, net

123

234

364-day term loan facility borrowings

2,500

—

Issuance of long-term debt

1,500

1,000

Repayment of long-term debt

(2,197
)

(39
)
Supplemental credit facility borrowings

450

—

Issuance of common stock

43

45

Common dividend payments

(557
)

(541
)
Other

(42
)

(64
)
Net cash provided by financing activities

1,820

635

Increase in cash, restricted cash and equivalents

1,615

186

Cash, restricted cash and equivalents at beginning of period

341

408

Cash, restricted cash and equivalents at end of period

$
1,956

$
594


Three Months Ended March 31,	2024			2023
(millions)
Operating Activities
Net income including noncontrolling interests	$	674		$	981
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization (including nuclear fuel)		694			803
Deferred income taxes		(160	)		191
Deferred investment tax credits		(10	)		(5	)
Impairment of assets and other charges		109			98
Loss from East Ohio Transaction		102			—
Net gains on nuclear decommissioning trust funds and other investments		(294	)		(134	)
Other adjustments		59			23
Changes in:
Accounts receivable		133			519
Inventories		16			(21	)
Deferred fuel and purchased gas costs, net		495			89
Prepayments and deposits, net		42			333
Accounts payable		(126	)		(588	)
Accrued interest, payroll and taxes		153			(161	)
Net realized and unrealized changes related to derivative activities		257			232
Pension and other postretirement benefits		(115	)		(122	)
Other operating assets and liabilities		(47	)		(141	)
Net cash provided by operating activities		1,982			2,097
Investing Activities
Plant construction and other property additions (including nuclear fuel)		(2,769	)		(2,220	)
Acquisition of solar development projects		(161	)		(11	)
Proceeds from East Ohio Transaction		4,275			—
Proceeds from sales of securities		695			544
Purchases of securities		(757	)		(607	)
Contributions to equity method affiliates		(7	)		(10	)
Distributions from equity method affiliates		126			1
Other		(17	)		1
Net cash provided by (used in) investing activities		1,385			(2,302	)
Financing Activities
Issuance (repayment) of short-term debt, net		(330	)		123
364-day term loan facility borrowings		3,000			2,500
Repayment of 364-day term loan facility borrowings		(6,774	)		—
Issuance of long-term debt		1,000			1,500
Repayment and repurchase of long-term debt		(942	)		(2,197	)
Issuance of securitization bonds		1,282			—
Supplemental credit facility borrowings		—			450
Issuance of common stock		31			43
Common dividend payments		(559	)		(557	)
Other		(40	)		(42	)
Net cash provided by (used in) financing activities		(3,332	)		1,820
Increase in cash, restricted cash and equivalents		35			1,615
Cash, restricted cash and equivalents at beginning of period		301			341
Cash, restricted cash and equivalents at end of period	$	336		$	1,956

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended March 31,

2023

2022

(millions)

Operating Revenue(1)

$
2,384

$
2,167

Operating Expenses

Electric fuel and other energy-related purchases(1)

799

516

Purchased electric capacity

8

11

Other operations and maintenance:

Affiliated suppliers

93

91

Other

348

479

Depreciation and amortization

447

429

Other taxes

85

75

Impairment of assets and other charges

7

4

Total operating expenses

1,787

1,605

Income from operations

597

562

Other income (expense)

36

4

Interest and related charges(1)

181

148

Income before income tax expense

452

418

Income tax expense

99

61

Net Income

$
353

$
357


	Three Months Ended March 31,
	2024			2023
(millions)
Operating Revenue(1)	$	2,489		$	2,384
Operating Expenses
Electric fuel and other energy-related purchases(1)		701			799
Purchased electric capacity		13			8
Other operations and maintenance:
Affiliated suppliers		102			93
Other		429			348
Depreciation and amortization		448			447
Other taxes		93			85
Impairment of assets and other charges (benefits)		(17	)		7
Total operating expenses		1,769			1,787
Income from operations		720			597
Other income (expense)		63			36
Interest and related charges(1)		190			181
Income before income tax expense		593			452
Income tax expense		128			97
Net Income	$	465		$	355

(1)

See Note 19 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,						Three Months Ended March 31,
	2023			2022			2024			2023
(millions)
Net income	$	353		$	357		$	465		$	355
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)		(9	)		19			7			(9	)
Changes in unrealized net gains (losses) on investment securities(2)		4			(7	)		(5	)		4
Amounts reclassified to net income:
Net derivative (gains) losses-hedging activities(3)		—			1
Net realized (gains) losses on investment securities(4)		—			(1	)
Net realized (gains) losses on investment securities(3)								1			—
Total other comprehensive income (loss)		(5	)		12			3			(5	)
Comprehensive income	$	348		$	369		$	468		$	350

(1)

Net of $(1) million and $3 million tax for the three months ended March 31, 2024 and 2023, respectively.

(2)

Net of $1 million and $(71) million tax for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

~~(2)~~(3)

Net of $(1) million ~~and $~~2 ~~tax for the three months ended March 31, 2023 and 2022, respectively.~~

~~(3)~~

~~Net of $— and $— millio~~n~~tax for the three months ended March 31, 2023 and 2022, respectively.~~

~~(4)~~

~~Net of $—~~ and $— million tax for the three months ended March 31, 2024 and 2023, ~~and 2022,~~ respectively.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31, 2023

December 31, 2022(1)

(millions)

ASSETS

Current Assets

Cash and cash equivalents

$
21

$
22

Customer receivables (less allowance for doubtful accounts of $21 at both dates)

1,227

1,578

Other receivables (less allowance for doubtful accounts of $1 and $2)

196

204

Affiliated receivables

7

7

Inventories (average cost method)

962

924

Margin deposit assets

54

310

Derivative assets(2)

91

765

Regulatory assets

820

1,140

Other

49

52

Total current assets

3,427

5,002

Investments

Nuclear decommissioning trust funds

3,360

3,202

Other

3

3

Total investments

3,363

3,205

Property, Plant and Equipment

Property, plant and equipment

55,800

54,697

Accumulated depreciation and amortization

(16,466
)

(16,218
)
Total property, plant and equipment, net

39,334

38,479

Deferred Charges and Other Assets

Regulatory assets

4,151

4,247

Other(2)

2,343

2,261

Total deferred charges and other assets

6,494

6,508

Total assets

$
52,618

$
53,194


	March 31, 2024			December 31, 2023(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	119		$	90
Customer receivables (less allowance for doubtful accounts of $30 at both dates)		1,620			1,728
Other receivables (less allowance for doubtful accounts of $1 at both dates)		122			121
Affiliated receivables		212			50
Inventories (average cost method)		1,097			1,085
Regulatory assets(2)		744			868
Other(2)(3)		297			375
Total current assets		4,211			4,317
Investments
Nuclear decommissioning trust funds		3,960			3,716
Other		4			4
Total investments		3,964			3,720
Property, Plant and Equipment
Property, plant and equipment		62,668			60,963
Accumulated depreciation and amortization		(17,377	)		(17,096	)
Total property, plant and equipment, net		45,291			43,867
Deferred Charges and Other Assets
Regulatory assets(2)		4,352			4,317
Other(3)		2,626			2,397
Total deferred charges and other assets		6,978			6,714
Total assets	$	60,444		$	58,618

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, ~~2022~~2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 15 for amounts attributable to VIEs.

(3)

See Note 19 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

March 31, 2023

December 31, 2022(1)

(millions)

LIABILITIES AND SHAREHOLDER’S EQUITY

Current Liabilities

Securities due within one year

$
378

$
1,164

Short-term debt

1,010

941

Accounts payable

485

600

Payables to affiliates

203

255

Affiliated current borrowings

1,203

2,024

Accrued interest, payroll and taxes

344

270

Regulatory liabilities

309

506

Derivative liabilities(2)

152

298

Other

972

1,176

Total current liabilities

5,056

7,234

Long-Term Debt

Long-term debt

16,050

14,916

Other

73

65

Total long-term debt

16,123

14,981

Deferred Credits and Other Liabilities

Deferred income taxes and investment tax credits

3,463

3,452

Regulatory liabilities

5,557

5,499

Other(2)

4,826

4,783

Total deferred credits and other liabilities

13,846

13,734

Total liabilities

35,025

35,949

Commitments and Contingencies (see Note 17)

Common Shareholder’s Equity

Common stock – no par(3)

5,738

5,738

Other paid-in capital

1,113

1,113

Retained earnings

10,738

10,385

Accumulated other comprehensive income

4

9

Total common shareholder’s equity

17,593

17,245

Total liabilities and shareholder’s equity

$
52,618

$
53,194


	March 31, 2024		December 31, 2023(1)
(millions)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Securities due within one year(2)	$	100	$	381
Short-term debt		—		455
Accounts payable		453		597
Payables to affiliates		95		111
Affiliated current borrowings		1		500
Accrued interest, payroll and taxes(2)		414		293
Regulatory liabilities		284		321
Other(3)		1,437		1,529
Total current liabilities		2,784		4,187
Long-Term Debt
Long-term debt		18,032		17,043
Securitization bonds(2)		1,217		—
Other		86		72
Total long-term debt		19,335		17,115
Deferred Credits and Other Liabilities
Deferred income taxes		3,931		3,624
Deferred investment tax credits		651		656
Regulatory liabilities		6,343		5,978
Other(3)		5,524		5,401
Total deferred credits and other liabilities		16,449		15,659
Total liabilities		38,568		36,961
Commitments and Contingencies (see Note 17)
Common Shareholder’s Equity
Common stock – no par(4)		8,987		8,987
Other paid-in capital		1,113		1,113
Retained earnings		11,757		11,541
Accumulated other comprehensive income		19		16
Total common shareholder’s equity		21,876		21,657
Total liabilities and shareholder’s equity	$	60,444	$	58,618

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, ~~2022~~2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 15 for amounts attributable to VIEs.

(3)

See Note 19 for amounts attributable to affiliates.

~~(3)~~(4)

500,000 shares authorized; ~~274,723~~324,245 shares outstanding at both March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY

(Unaudited)


	Common Stock															Common Stock
	Shares		Amount		Other Paid-In Capital		Retained Earnings			AOCI			Total			Shares		Amount		Other Paid-In Capital		Retained Earnings			AOCI			Total
(millions, except for shares)	(thousands)															(thousands)
December 31, 2021		275	$	5,738	$	1,113	$	9,170		$	(41	)	$	15,980
Net income								357						357
Other comprehensive income, net of tax											12			12
Other								(1	)					(1	)
March 31, 2022		275	$	5,738	$	1,113	$	9,526		$	(29	)	$	16,348

December 31, 2022		275	$	5,738	$	1,113	$	10,385		$	9		$	17,245			275	$	5,738	$	1,113	$	10,089		$	9		$	16,949
Net income								353						353									355						355
Other comprehensive loss, net of tax											(5	)		(5	)											(5	)		(5	)
March 31, 2023		275	$	5,738	$	1,113	$	10,738		$	4		$	17,593			275	$	5,738	$	1,113	$	10,444		$	4		$	17,299

December 31, 2023																	324	$	8,987	$	1,113	$	11,541		$	16		$	21,657
Net income																							465						465
Dividends																							(250	)					(250	)
Other comprehensive income, net of tax																										3			3
Other																							1						1
March 31, 2024																	324	$	8,987	$	1,113	$	11,757		$	19		$	21,876

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Three Months Ended March 31,	2023			2022			2024			2023
(millions)
Operating Activities
Net income	$	353		$	357		$	465		$	355
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including nuclear fuel)		492			425			486			492
Deferred income taxes and investment tax credits		(3	)		105
Impairment of assets and other charges (benefit)		7			—
Deferred income taxes								284			(1	)
Deferred investment tax benefits								(6	)		(4	)
Impairment of assets and other charges (benefits)								(17	)		7
Net (gains) on nuclear decommissioning trust funds and other investments								(39	)		(19	)
Other adjustments		(9	)		3			(3	)		10
Changes in:
Accounts receivable		348			76			109			348
Affiliated receivables and payables		(52	)		9			(177	)		(52	)
Inventories		(39	)		34			(13	)		(39	)
Prepayments		—			3
Prepayments and deposits, net								34			260
Deferred fuel expenses, net		193			(297	)		131			193
Accounts payable		(103	)		90			(64	)		(103	)
Accrued interest, payroll and taxes		73			57			121			73
Margin deposit assets and liabilities		255			(125	)
Net realized and unrealized changes related to derivative activities		449			215			107			449
Other operating assets and liabilities		(16	)		(267	)		57			(21	)
Net cash provided by operating activities		1,948			685			1,475			1,948
Investing Activities
Plant construction and other property additions		(1,420	)		(1,037	)		(2,058	)		(1,420	)
Purchases of nuclear fuel		(52	)		(27	)		(44	)		(52	)
Acquisition of solar development projects		(11	)		(37	)		—			(11	)
Proceeds from sales of securities		373			392			471			373
Purchases of securities		(405	)		(415	)		(516	)		(405	)
Other		(4	)		(5	)		2			(4	)
Net cash used in investing activities		(1,519	)		(1,129	)		(2,145	)		(1,519	)
Financing Activities
Issuance (repayment) of short-term debt, net		69			(59	)		(455	)		69
Repayment of affiliated current borrowings, net		(821	)		(464	)		(499	)		(821	)
Issuance of long-term debt		1,500			1,000			1,000			1,500
Repayment of long-term debt		(1,148	)		—
Repayment and repurchase of long-term debt								(350	)		(1,148	)
Issuance of securitization bonds								1,282			—
Common dividend payments to parent								(250	)		—
Other		(31	)		(23	)		(23	)		(31	)
Net cash provided by (used in) financing activities		(431	)		454			705			(431	)
Increase (decrease) in cash, restricted cash and equivalents		(2	)		10			35			(2	)
Cash, restricted cash and equivalents at beginning of period		24			26			90			24
Cash, restricted cash and equivalents at end of period	$	22		$	36		$	125		$	22

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Nature of Operations

Dominion Energy, headquartered in Richmond, Virginia, is one of the nation’s largest producers and distributors of energy. Dominion Energy’s operations are conducted through various subsidiaries, including Virginia Power. Dominion Energy’s operations also include DESC, regulated gas distribution operations primarily in the eastern and Rocky Mountain regions of the U.S., and nonregulated electric ~~generation~~generation. See Note 3 for a description of the sale of regulated gas distribution operations to Enbridge including the East Ohio Transaction, which was completed in March 2024, and ~~a noncontrolling interest in Cove Point.~~the planned Questar Gas and PSNC Transactions.

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the SEC, the Companies’ 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 GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at March 31, ~~2023,~~2024, and ~~their~~ results of operations, changes in equity and cash flows for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. Such adjustments are normal and recurring in nature unless otherwise noted.

The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. 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 revenues and expenses for the periods presented. Actual results may differ from those estimates.

The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements.

The results of operations for 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, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors.

Certain amounts in the Companies’ ~~2022~~2023 Consolidated Financial Statements and Notes have been reclassified to conform to the ~~2023~~2024 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows.

Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, with the exception of the items described below.

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the three months ended March 31, ~~2023~~2024 and ~~2022:~~2023:


	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period				Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	March 31, 2023		March 31, 2022		December 31, 2022		December 31, 2021		March 31, 2024		March 31, 2023		December 31, 2023		December 31, 2022
(millions)
Dominion Energy
Cash and cash equivalents(1)	$	1,792	$	446	$	153	$	283	$	306	$	1,792	$	217	$	153
Restricted cash and equivalents(2)		164		148		188		125
Restricted cash and equivalents(2)(4)										30		164		84		188
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	1,956	$	594	$	341	$	408	$	336	$	1,956	$	301	$	341
Virginia Power
Cash and cash equivalents	$	21	$	36	$	22	$	26	$	119	$	21	$	90	$	22
Restricted cash and equivalents(2)		1		—		2		—
Restricted cash and equivalents(3)(4)										6		1		—		2
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	22	$	36	$	24	$	26	$	125	$	22	$	90	$	24

(1)

At March 31, 2024, March 31, 2023, December 31, 2023 and December 31, 2022, Dominion Energy had $241 million, $40 million, $33 million and $34 million, respectively, of cash and cash equivalents included in current assets held for sale.

No(2)

~~amounts were included in current assets held for sale at~~At March 31, 2024, March 31, 2023, December 31, ~~2022~~2023 and December 31, ~~2021.~~2022, Dominion Energy had $4 million, $1 million, $4 million and $2 million, respectively, of restricted cash and equivalents included in current assets held for sale with the remaining balances presented within other current assets in Dominion Energy’s Consolidated Balance Sheets.

~~(2)~~(3)

Restricted cash and equivalents balances are presented within other current assets in ~~the Companies’~~Virginia Power’s Consolidated Balance Sheets.

(4)

Includes $6 million attributable to VIEs at March 31, 2024.

Supplemental Cash Flow Information

The following table provides supplemental disclosure of cash flow information related to Dominion Energy:


Three Months Ended March 31,	2023		2022		2024		2023
(millions)
Significant noncash investing and financing activities:(1)
Accrued capital expenditures	$	671	$	425	$	753	$	671
Leases(2)		117		24		161		117

(1)

See ~~Note 10 for noncash investing activities related to the acquisition of a noncontrolling interest in Dominion Privatization~~Notes 3 and ~~Note~~ 17 for noncash financing activities related to debt assumed with closing of the East Ohio Transaction and the transfer of property associated with the settlement of litigation.

(2)

Includes $3226 million and $632 million of financing leases at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, and $85135 million and $1885 million of operating leases at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

The following table provides supplemental disclosure of cash flow information related to Virginia Power:


Three Months Ended March 31,	2023		2022		2024		2023
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	460	$	252	$	566	$	460
Leases(1)		99		21		142		99

(1)

Includes $3122 million and $431 million of financing leases at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, and $68120 million and $1768 million of operating leases at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

New Accounting Standards

Climate-Related Disclosures

In March 2024, the SEC issued guidance for climate-related disclosures. The guidance requires disclosure of the financial statement impacts of severe weather events and other natural conditions, including amounts capitalized or expensed as well as any associated recoveries. In addition, the guidance requires disclosure of amounts related to renewable energy credits or carbon offsets if utilized as

a material component of plans to achieve climate-related targets or goals. This guidance, which is currently subject to a stay issued by the SEC, would be effective for the fiscal year beginning January 1, 2025. The Companies expect this guidance to only impact their disclosures with no impacts to their results of operations, cash flows or financial condition.

Note 3. Acquisitions and Dispositions

~~Disposition~~Business Review Dispositions

Sale of ~~Gas Transmission & Storage Operations~~East Ohio

In ~~December 2021,~~September 2023, Dominion Energy ~~completed~~entered into an agreement with Enbridge for the East Ohio Transaction, which included the sale of East Ohio and was valued at approximately $6.6 billion, consisting of a purchase price of approximately $4.3 billion in cash and approximately $2.3 billion of assumed indebtedness. The sale closed in March 2024 after all customary closing and regulatory conditions were satisfied, including clearance or approval under or by the ~~Q-Pipe Group~~Hart-Scott-Rodino Act, CFIUS and FCC. Dominion Energy utilized the after-tax proceeds, as required, to ~~Southwest Gas,~~repay outstanding borrowings under 364-day term loan facilities. See Note 16 for additional information. The purchase price is subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. The transaction was structured as ~~discussed~~a stock sale for tax purposes. In October 2023, as required under the sale agreement, Dominion Energy filed a notice with the Ohio Commission. The internal reorganization in ~~Note 3~~connection with the East Ohio Transaction was subject to approval by the ~~Consolidated Financial Statements~~Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024.

Dominion Energy retained the pension and other postretirement benefit plan assets and obligations, including related income tax and other deferred balances, associated with retiree participants in both East Ohio’s union pension and other postretirement benefit plans and retiree participants of the sale entities in the ~~Companies’ Annual Report~~Dominion Energy Pension Plan and the Dominion Energy Retiree Health and Welfare Plan. Dominion Energy recognized a pre-tax loss of $102 million ($108 million after-tax) upon the closing of the transaction, including the write-off of $1.5 billion of goodwill which was not deductible for tax purposes but excluding the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $29 million to reflect the recognition of deferred taxes on ~~Form 10-K~~the outside basis of East Ohio’s stock upon meeting the classification as held for ~~the year ended December 31, 2022. In~~sale. These deferred taxes reversed in the first quarter of ~~2022,~~2024 upon closing of the sale and became a component of current income tax expense on the loss on sale disclosed above. See Note 5 for additional information.

At the closing of the East Ohio Transaction, Dominion Energy and Enbridge entered into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of East Ohio for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy.

Sale of PSNC

In September 2023, Dominion Energy entered into an agreement with Enbridge for the PSNC Transaction, which includes the sale of PSNC and is valued at approximately $3.1 billion, consisting of a purchase price of approximately $2.2 billion in cash and approximately $1.0 billion of assumed indebtedness. The purchase price will be subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. Closing of the PSNC Transaction is not conditioned upon the closing of the Questar Gas Transaction. The sale will be treated as a stock sale for tax purposes and is expected to close in the third quarter of 2024, subject to clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and North Carolina Commission as well as other customary closing and regulatory conditions. In November 2023, the waiting period under the Hart-Scott-Rodino Act expired. Also in November 2023, Dominion Energy submitted its initial filing request for approval by CFIUS, which was received in January 2024. In January 2024, Dominion Energy filed for approval with the FCC which was also received in January 2024. In October 2023, Dominion Energy filed for approval from the North Carolina Commission. The internal reorganization in connection with the PSNC Transaction was subject to approval by the North Carolina Commission. Dominion Energy filed for such approval in September 2023 which was received in November 2023. The internal reorganization was completed in December 2023.

Upon closing, Dominion Energy will retain the entirety of the assets and obligations, including related income tax and other deferred balances, of the pension and other postretirement employee benefit plans associated with the operations included in the transaction and relating to services provided through closing. The PSNC Transaction is subject to termination by either party if not completed by September 2024, subject to a potential three-month extension for receipt of regulatory approvals, with a termination fee of $78 million due to Dominion Energy under certain conditions. Based on the recorded balances at March 31, 2024, Dominion Energy expects to recognize a pre-tax gain of approximately $10 million ($8 million after-tax) upon closing, including the write-off of $0.7 billion of goodwill which is not deductible for tax purposes but excluding the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $334 million to reflect the deferred taxes on the outside basis of PSNC’s stock upon meeting the classification as held for sale. These deferred taxes will reverse upon closing of the sale and become a component of current income tax expense on the gain on sale.

At the closing of the PSNC Transaction, Dominion Energy and Enbridge will enter into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of PSNC for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy.

Sale of Questar Gas and Wexpro

In September 2023, Dominion Energy entered into an agreement with Enbridge for the Questar Gas Transaction, which includes the sale of Questar Gas, Wexpro and related affiliates and is valued at approximately $4.3 billion, consisting of a purchase price of approximately $3.0 billion in cash and approximately $1.3 billion of assumed indebtedness. The purchase price will be subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. Closing of the Questar Gas Transaction is not conditioned upon the closing of the PSNC Transaction. The sale will be treated as a stock sale for tax purposes and is expected to close in the second quarter of 2024, subject to clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and Utah and Wyoming Commissions as well as other customary closing and regulatory conditions. In November 2023, the waiting period under the Hart-Scott-Rodino Act expired. Also in November 2023, Dominion Energy submitted its initial filing request for approval by CFIUS, which was received in January 2024. In January 2024, Dominion Energy filed for approval with the FCC, which was received in February 2024. In October 2023, Dominion Energy filed for approvals from the Utah and Wyoming Commissions. In March 2024, a settlement stipulation supporting approval of the Questar Gas Transaction was filed with the Utah Commission. In October 2023, Dominion Energy filed the notice with the Idaho Commission required for closing of the Questar Gas Transaction. The internal reorganization in connection with the Questar Gas Transaction was subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024.

Upon closing, Dominion Energy will retain the pension and other postretirement benefit plan assets and obligations, including related income tax and other deferred balances, associated with retiree participants of the sale entities in the Dominion Energy Pension Plan and the Dominion Energy Retiree Health and Welfare Plan. The Questar Gas Transaction is subject to termination by either party if not completed by September 2024, subject to a potential three-month extension for receipt of regulatory approvals, with a termination fee of $107 million due to Dominion Energy under certain conditions. In 2023, Dominion Energy recorded a charge of $284 million ($279 million after-tax), including amounts associated with an impairment of goodwill. Based on the recorded balances at March 31, 2024, Dominion Energy recorded an additional charge of $78 million ($78 million after-tax), including amounts associated with an impairment of goodwill. Upon closing, Dominion Energy will write off the remaining $0.7 billion of goodwill which is not deductible for tax purposes. Following the internal reorganization noted above and upon closing of the East Ohio Transaction, Dominion Energy recorded a tax benefit of $5 million. In 2023, Dominion Energy recorded a charge of $462 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock upon meeting the classification as held for sale. These deferred taxes reversed in the first quarter of 2024 and became a component of current income tax expense. In addition, Dominion Energy recorded an incremental deferred tax benefit of $22 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock in the first quarter of 2024 which will reverse upon the closing of the Questar Gas Transaction. See Note 5 for additional information.

At the closing of the Questar Gas Transaction, Dominion Energy and Enbridge will enter into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of Questar Gas and Wexpro for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy.

Other Sales

In February 2024, Dominion Energy entered into an agreement with AES to sell Birdseye and the Madison solar project for approximately $17 million in cash, subject to customary closing adjustments, which closed in April 2024. Dominion Energy recognized a ~~gain~~charge of $2768 million ($2051 million after-tax) in the fourth quarter of 2023 to adjust the assets down to their realizable fair value. As a result, Dominion Energy expects any gain or loss on the sale, including the effects of final closing adjustments, to be inconsequential.

Financial Statement Information for Business Review Dispositions

The following table represents selected information regarding the results of operations, which were reported within discontinued operations in ~~its~~Dominion Energy’s Consolidated Statements of ~~Income~~Income:


	Three Months Ended March 31, 2024
	East Ohio Transaction(1)			PSNC Transaction		Questar Gas Transaction		Other
(millions)
Operating revenue	$	229		$	298	$	695	$	—
Operating expense(2)		254			158		575		1
Other income (expense)		(17	)		3		1		—
Interest and related charges		15			14		16		—
Income (loss) before income taxes		(57	)		129		105		(1	)
Income tax expense (benefit)		9			31		82		—
Net income (loss) attributable to Dominion Energy(3)	$	(66	)	$	98	$	23	$	(1	)

(1)

Represents amounts attributable to Dominion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024.

(2)

East Ohio Transaction includes a charge of $45 million ($33 million after-tax) associated with ~~finalization~~an increase to certain pension retirement benefits attributable to a plan amendment and a contribution to the defined contribution employee savings plan. See Note 20 for further information on these transactions.

(3)

Excludes $(69) million of ~~working capital adjustments.~~income tax expense (benefit) attributable to consolidated state adjustments for the three months ended March 31, 2024.


	Three Months Ended March 31, 2023
	East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other
(millions)
Operating revenue	$	312	$	326	$	730	$	1
Operating expense		216		208		579		3
Other income (expense)		8		2		1		—
Interest and related charges		15		13		16		—
Income (loss) before income taxes		89		107		136		(2	)
Income tax expense (benefit)		13		24		29		(1	)
Net income (loss) attributable to Dominion Energy(1)	$	76	$	83	$	107	$	(1	)

(1)

Excludes $(9) million of income tax expense (benefit) attributable to consolidated state and interim period tax allocation adjustments for three months ended March 31, 2023.

The carrying value of major classes of assets and liabilities relating to the disposal groups, which are reported as held for sale in Dominion Energy’s Consolidated Balance Sheets were as follows:


	At March 31, 2024							At December 31, 2023
	PSNC Transaction		Questar Gas Transaction		Other			East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other
(millions)
Current assets(1)	$	266	$	505	$	(2	)	$	497	$	336	$	764	$	1
Property, plant and equipment, net		2,899		4,465		28			5,443		2,806		4,369		26
Other deferred charges and other assets, including goodwill(2) and intangible assets		823		666		(1	)		2,659		834		766		—
Current liabilities(3)		180		282		5			560		224		389		7
Long-term debt		948		1,205		—			2,286		948		1,205		—
Other deferred credits and liabilities(4)		697		1,066		2			1,437		711		1,116		2

(1)

Includes cash and cash equivalents of $1 million and $2 million within the PSNC Transaction and $39 million and $26 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. Also includes regulatory assets of $68 million and $89 million within the PSNC Transaction and $53 million and $297 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes cash and cash equivalents of $4 million and regulatory assets of $75 million within the East Ohio Transaction at December 31, 2023.

(2)

Includes goodwill of $673 million at both March 31, 2024 and December 31, 2023 within the PSNC Transaction and $642 million and $720 million at March 31, 2024 and December 31, 2023, respectively within the Questar Gas Transaction. Also includes regulatory assets of $83 million and $86 million within the PSNC Transaction and $(44) million and $(39) million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes goodwill of $1.5 billion and regulatory assets of $781 million within the East Ohio Transaction at December 31, 2023.

2124

(3)

Includes regulatory liabilities of $42 million and $44 million within the PSNC Transaction and $56 million and $55 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes regulatory liabilities of $54 million within the East Ohio Transaction at December 31, 2023.

(4)

Includes regulatory liabilities of $430 million and $435 million within the PSNC Transaction and $498 million and $502 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition includes regulatory liabilities of $711 million within the East Ohio Transaction at December 31, 2023.

Capital expenditures and significant noncash items relating to the disposal groups included the following:


	Three Months Ended March 31, 2024								Three Months Ended March 31, 2023
	East Ohio Transaction(1)		PSNC Transaction		Questar Gas Transaction		Other		East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other
(millions)
Capital expenditures	$	65	$	82	$	100	$	—	$	98	$	44	$	85	$	—
Significant noncash items
Depreciation, depletion and amortization		—		—		—		—		35		22		44		1
Accrued capital expenditures				55		20		—		30		22		18		—

(1)

Represents amounts attributable to Dominion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024.

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:


	Dominion Energy					Virginia Power					Dominion Energy					Virginia Power
Three Months Ended March 31,	2023		2022			2023		2022
Period Ended March 31,												2024		2023			2024		2023
(millions)
Regulated electric sales:
Residential	$	1,286	$	1,287		$	1,010	$	1,015			$	1,365	$	1,286		$	1,052	$	1,010
Commercial		1,070		898			866		717				1,094		1,070			881		866
Industrial		220		197			116		103				213		220			106		116
Government and other retail		244		272			229		258				257		244			241		229
Wholesale		44		47			29		32				36		44			29		29
Nonregulated electric sales		257		367			11		14				220		257			14		11
Regulated gas sales:
Residential		862		769									151		136
Commercial		314		273									48		53
Other		35		45									19		23
Nonregulated gas sales		1		1
Regulated gas transportation and storage		311		297									4		4
Other regulated revenues		62		46			74		51				88		78			84		74
Other nonregulated revenues(1)(2)		50		48			11		6				29		37			10		11
Total operating revenue from contracts with customers		4,756		4,547			2,346		2,196				3,524		3,452			2,417		2,346
Other revenues(1)(3)		496		(268	)		38		(29	)			108		431			72		38
Total operating revenue	$	5,252	$	4,279		$	2,384	$	2,167			$	3,632	$	3,883		$	2,489	$	2,384

(1)

See Note 19 for amounts attributable to affiliates.

(2)

~~Includes sales which are considered to be goods transferred~~Sales of renewable energy credits were $5 million for both of the three months ended March 31, 2024 and 2023 at ~~a point in time of~~Dominion Energy and $82 million and $113 million for the three months ended March 31, ~~2023~~2024 and 2022, respectively, at Dominion Energy, primarily consisting of sales of commodities related to nonregulated extraction activities and other miscellaneous products. Additionally, sales of renewable energy credits were $5 ~~million and $~~4 ~~million for the three months ended March 31,~~ 2023, ~~and 2022, respectively, at Dominion Energy and $~~3 ~~million and less than $~~1 ~~million for the three months ended March 31, 2023 and 2022,~~ respectively, at Virginia Power.

(3)

Includes alternative revenue of $5728 million ~~and $~~30 ~~million at Dominion Energy~~ and $27 million at both Dominion Energy and $8 ~~million at~~ Virginia Power for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

The table below discloses the aggregate amount of the transaction price allocated to fixed-price performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period and when

Neither Dominion Energy ~~expects~~nor Virginia Power have any amounts for revenue to recognize this revenue. These revenues relate to contracts containing fixed prices where Dominion Energy will earn the associated revenue over time as it stands ready to perform services provided. This disclosure does not include revenue related to performance obligations that are part of a contract with original durations of one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which Dominion Energy elects to recognize revenuebe recognized in the ~~amount it has a right to invoice.~~future on multi-year contracts in place at March 31, 2024.

Revenue expected to be recognized on multi-year
contracts in place at March 31, 2023

2023

2024

2025

2026

2027

Thereafter

Total

(millions)

Dominion Energy(1)

$
51

$
61

$
54

$
48

$
46

$
402

$
662

~~(1)~~

~~Includes no amounts for Virginia Power.~~

At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy’s contract liability balances were $9359 million and $~~150~~47 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Virginia Power’s contract liability balances were $5153 million and $3940 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, Dominion Energy recognized revenue of $~~145~~43 million and $~~119~~46 million, respectively, from the beginning contract liability balances. During the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, Virginia Power recognized $3940 million and $3339 million, respectively, from the beginning contract liability balances.

2225

Note 5. Income Taxes

For continuing operations, including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:


	Dominion Energy						Virginia Power						Dominion Energy						Virginia Power
Three Months Ended March 31,	2023			2022			2023			2022			2024			2023			2024			2023
U.S. statutory rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%
Increases (reductions) resulting from:
Recognition of taxes - sale of subsidiary stock		—			9.4
State taxes, net of federal benefit		3.4			3.3			4.6			4.4			3.4			3.8			4.4			4.6
Investment tax credits		(2.3	)		(3.9	)		(0.3	)		(6.7	)		(1.3	)		(1.1	)		(0.7	)		(0.8	)
Production tax credits		(0.4	)		(0.4	)		(0.7	)		(0.8	)		(1.0	)		(0.4	)		(0.9	)		(0.7	)
Reversal of excess deferred income taxes		(2.7	)		(4.1	)		(2.7	)		(3.0	)		(2.1	)		(2.0	)		(1.7	)		(2.7	)
Changes in state deferred taxes associated with assets held for sale		—			0.5
AFUDC - equity		(0.1	)		(0.6	)		0.2			(0.9	)		(0.7	)		(0.1	)		(0.7	)		0.2
Other, net		(0.8	)		0.2			(0.2	)		0.6			0.1			(1.1	)		0.2			(0.2	)
Effective tax rate		18.1	%		25.4	%		21.9	%		14.6	%		19.4	%		20.1	%		21.6	%		21.4	%

InThe IRA created a nuclear production tax credit for electricity produced and sold starting in 2024. The Companies did not record these potential tax benefits for the ~~first quarter~~three months ended March 31, 2024 given computational uncertainty (in part from the absence of ~~2022, Dominion Energy entered into an agreement to sell~~ ~~100% of the equity interests in Hope in~~U.S. Treasury guidance) and market pricing volatility. Depending on future developments, 2024 nuclear production tax credits could have a ~~stock sale for income tax purposes. Upon meeting the classification as held for sale, Dominion Energy established $~~87 million of deferred tax liabilities reflecting the excess of the financial reporting basis over the tax basis in Hope’s stock. These deferred taxes reversed upon closing of the sale in August 2022 and became a component of current income tax expense on the sale. See Note 3material benefit to the ~~Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding the sale~~Companies’ results of ~~Hope.~~

operations and/or cash flows.

As of March 31, ~~2023,~~2024, there have been no material changes in the Companies’ unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 5 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2023, for a discussion of these unrecognized tax benefits.

Discontinued operations

Income tax ~~(benefit)~~ expense reflected in discontinued operations is $($151) million and $656 million for the three months ended March 31, 2024 and 2023, respectively. Dominion Energy entered into agreements for the East Ohio, PSNC and ~~2022, respectively.~~Questar Gas Transactions in September 2023, each of which was or will be treated as a stock sale for income tax purposes. During 2023 in connection with the pending sales, Dominion Energy recorded a charge of $825 million to establish deferred tax liabilities to reflect the excess of financial reporting basis over tax basis in stock of the entities to be sold. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of these transactions.

Dominion Energy recorded tax expense of $6 million in the first quarter of 2024, including the reversal of $29 million of these previously established deferred tax liabilities associated with East Ohio through income tax expense. Following the internal reorganization discussed in Note 3 and upon closing of the East Ohio Transaction, Dominion Energy recorded a tax benefit of $5 million, including the reversal of $462 million of these previously established deferred tax liabilities associated with Questar Gas, Wexpro and related affiliates through income tax expense.

In addition, Dominion Energy recorded a tax benefit of $22 million to establish a deferred tax asset reflecting the excess of tax basis over financial reporting basis for Questar Gas, Wexpro and related affiliates. These deferred taxes will reverse upon closing of the Questar Gas Transaction, which is expected to occur in the second quarter of 2024.

Note 6. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:

Three Months Ended March 31,
2023

2022

(millions, except EPS)

Net income attributable to Dominion Energy from continuing operations

$
1,002

$
692

Preferred stock dividends (see Note 16)

(20
)

(27
)
Net income attributable to Dominion Energy from continuing operations – Basic

982

665

Dilutive effect of 2019 Equity Units(1)

—

7

Net income attributable to Dominion Energy from continuing operations - Diluted

$
982

$
672

Net income (loss) attributable to Dominion Energy from discontinued operations -
Basic & Diluted

$
(5
)

$
19

Average shares of common stock outstanding – Basic

835.2

810.6

Net effect of dilutive securities(2)

0.3

21.4

Average shares of common stock outstanding – Diluted

835.5

832.0

EPS from continuing operations – Basic

$
1.18

$
0.82

EPS from discontinued operations – Basic

(0.01
)

0.02

EPS attributable to Dominion Energy – Basic

$
1.17

$
0.84

EPS from continuing operations – Diluted

$
1.18

$
0.81

EPS from discontinued operations – Diluted

(0.01
)

0.02

EPS attributable to Dominion Energy – Diluted

$
1.17

$
0.83


Three Months Ended March 31,	2024			2023
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations	$	560		$	700
Preferred stock dividends (see Note 16)		(20	)		(20	)
Net income attributable to Dominion Energy from continuing operations - Basic & Diluted	$	540		$	680
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	114		$	281
Average shares of common stock outstanding - Basic		837.6			835.2
Net effect of dilutive securities(1)		—			0.3
Average shares of common stock outstanding - Diluted		837.6			835.5
EPS from continuing operations - Basic	$	0.64		$	0.81
EPS from discontinued operations - Basic	$	0.14			0.34
EPS attributable to Dominion Energy - Basic	$	0.78		$	1.15
EPS from continuing operations - Diluted	$	0.64		$	0.81
EPS from discontinued operations - Diluted	$	0.14			0.34
EPS attributable to Dominion Energy - Diluted	$	0.78		$	1.15

(1)

~~Effective January 2022, diluted net income was no longer reduced by the Series A Preferred Stock dividends.~~

~~(2)~~

Dilutive securities for the three months ended March 31, 2023 ~~and 2022~~ include stock potentially to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method). See Note 17 for additional information. Additionally, dilutive securities for the three months ended March 31, 2022 included the 2019 Equity Units (applying the if converted method) as well as forward sales agreements entered into in November 2021 (applying the treasury stock method). See Notes 19 and 20 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

The 2019 Equity Units, prior to settlement in June 2022, were a potentially dilutive instrument. See Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.27

Note 7. Accumulated Other Comprehensive Income (Loss)

Dominion Energy

The following table presents Dominion Energy’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:


	Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Pension and other postretirement benefit costs(4)			Equity Method Investees(5)			Total				Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Pension and other postretirement benefit costs(4)			Equity Method Investees(5)			Total
(millions)
Three Months Ended March 31, 2023
Three Months Ended March 31, 2024
Beginning balance	$	(249	)	$	(44	)	$	(1,276	)	$	(3	)	$	(1,572	)		$	(216	)	$	—		$	(1,290	)	$	—		$	(1,506	)
Other comprehensive income (loss) before reclassifications: gains (losses)		(9	)		17			—			1			9				7			(26	)		(237	)		—			(256	)
Amounts reclassified from AOCI: (gains) losses																Amounts reclassified from AOCI: (gains) losses
Interest and related charges (benefit)		11			—			—			—			11
Interest and related charges																		11			—			—			—			11
Other income (expense)		—			2			(15	)		—			(13	)			—			8			6			—			14
Total		11			2			(15	)		—			(2	)			11			8			6			—			25
Income tax expense (benefit)		(3	)		(1	)		4			—			—				(4	)		(2	)		(1	)		—			(7	)
Total, net of tax		8			1			(11	)		—			(2	)			7			6			5			—			18
Net current period other comprehensive income (loss)		(1	)		18			(11	)		1			7				14			(20	)		(232	)		—			(238	)
Ending balance	$	(250	)	$	(26	)	$	(1,287	)	$	(2	)	$	(1,565	)		$	(202	)	$	(20	)	$	(1,522	)	$	—		$	(1,744	)
Three Months Ended March 31, 2022
Three Months Ended March 31, 2023
Beginning balance	$	(358	)	$	37		$	(1,133	)	$	(4	)	$	(1,458	)		$	(249	)	$	(44	)	$	(1,276	)	$	(3	)	$	(1,572	)
Other comprehensive income (loss) before reclassifications: gains (losses)		25			(62	)		28			1			(8	)			(9	)		17			—			1			9
Amounts reclassified from AOCI: (gains) losses																Amounts reclassified from AOCI: (gains) losses
Interest and related charges (benefit)		14			—			—			—			14
Interest and related charges																		11			—			—			—			11
Other income (expense)		—			4			23			—			27				—			2			(15	)		—			(13	)
Total		14			4			23			—			41				11			2			(15	)		—			(2	)
Income tax expense (benefit)		(4	)		(1	)		(6	)		—			(11	)			(3	)		(1	)		4			—			—
Total, net of tax		10			3			17			—			30				8			1			(11	)		—			(2	)
Net current period other comprehensive income (loss)		35			(59	)		45			1			22				(1	)		18			(11	)		1			7
Ending balance	$	(323	)	$	(22	)	$	(1,088	)	$	(3	)	$	(1,436	)		$	(250	)	$	(26	)	$	(1,287	)	$	(2	)	$	(1,565	)

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

Net of $8368 million, $73 million, $83 million $~~107~~ ~~million~~ and $~~119~~83 million tax at March 31, ~~2023,~~2024, December 31, ~~2022,~~2023, March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

(3)

Net of $6 million, $$(132) million, $86 million and $($1013) million tax at March 31, ~~2023,~~2024, December 31, ~~2022,~~2023, March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

(4)

Net of $~~449~~538 million, $~~445~~456 million, $~~380~~449 million and $~~396~~445 million tax at March 31, ~~2023,~~2024, December 31, ~~2022,~~2023, March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

(5)

Net of ~~$— million,~~ $1— million $1 ~~million~~at March 31, 2024, December 31, 2023 and March 31, 2023 and $1 million ~~tax~~ at ~~March 31, 2023,~~ December 31, ~~2022, March 31, 2022 and December 31, 2021, respectively.~~2022.

2428

Virginia Power

The following table presents Virginia Power’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:


	Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Total				Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Total
(millions)
Three Months Ended March 31, 2024
Beginning balance											$	15		$	1		$	16
Other comprehensive income (loss) before reclassifications: gains (losses)												7			(5	)		2
Amounts reclassified from AOCI: (gains) losses										Amounts reclassified from AOCI: (gains) losses
Other income (expense)												—			2			2
Total												—			2			2
Income tax expense (benefit)												—			(1	)		(1	)
Total, net of tax												—			1			1
Net current period other comprehensive income (loss)												7			(4	)		3
Ending balance											$	22		$	(3	)	$	19
Three Months Ended March 31, 2023
Beginning balance	$	16		$	(7	)	$	9			$	16		$	(7	)	$	9
Other comprehensive income (loss) before reclassifications: gains (losses)		(9	)		4			(5	)			(9	)		4			(5	)
Net current period other comprehensive income (loss)		(9	)		4			(5	)			(9	)		4			(5	)
Ending balance	$	7		$	(3	)	$	4			$	7		$	(3	)	$	4
Three Months Ended March 31, 2022
Beginning balance	$	(45	)	$	4		$	(41	)
Other comprehensive income (loss) before reclassifications: gains (losses)		19			(7	)		12
Amounts reclassified from AOCI: (gains) losses
Interest and related charges (benefit)		1			—			1
Other income (expense)		—			(1	)		(1	)
Total		1			(1	)		—
Income tax expense		—			—			—
Total, net of tax		1			(1	)		—
Net current period other comprehensive income (loss)		20			(8	)		12
Ending balance	$	(25	)	$	(4	)	$	(29	)

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

Net of $(27) million, $(5) million, $$(92) million and $$(165) million tax at March 31, ~~2023,~~2024, December 31, ~~2022,~~2023, March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

(3)

Net of $1 million, $2— million, $1 million and $($2) million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, ~~March 31, 2022 and December 31, 2021,~~ respectively.

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. See Note 9 in this report for additional information about the Companies’ derivatives and hedge accounting activities.

The Companies enter into certain physical and financial forwards, futures and options, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical and financial forwards and futures contracts. An option model is used to value Level 3 physical options. The discounted cash flow model for forwards and futures calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. The ~~option model calculates mark-to-market valuations using variations of the Black-Scholes option model. The~~ inputs into the option models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices and volumes. For Level 3 fair value measurements, certain forward market prices and implied price volatilities are considered unobservable.

2529

The following table presents the ~~Companies'~~Companies’ quantitative information about Level 3 fair value measurements at March 31, ~~2023.~~2024. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.


				Dominion Energy				Virginia Power							Dominion Energy				Virginia Power
	Valuation Techniques	Unobservable Input		Fair Value (millions)		Range	Weighted Average(1)	Fair Value (millions)		Range	Weighted Average(1)	Valuation Techniques	Unobservable Input		Fair Value (millions)		Range	Weighted Average(1)	Fair Value (millions)		Range	Weighted Average(1)
Assets
Physical and financial forwards:	Physical and financial forwards:											Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)	(3)	$	6	(2)-5	—	$	6	(2)-3	—	Discounted cash flow	Market price (per Dth)	(3)	$	5	(2)-2	—	$	5	(2)-2	—
FTRs	Discounted cash flow	Market price (per MWh)	(3)		37	1-7	4		37	1-7	4	Discounted cash flow	Market price (per MWh)	(3)		2	(1)-3	1		2	(1)-3	1
Electricity	Discounted cash flow	Market price (per MWh)	(3)		152	18-110	48		—	—		Discounted cash flow	Market price (per MWh)	(3)		209	24-111	51
Physical options:	Physical options:											Physical options:
Natural gas(2)	Option model	Market price (per Dth)	(3)		16	1-10	4		16	1-10	4	Option model	Market price (per Dth)	(3)		49	1-7	3		23	1-7	3
		Price volatility	(4)			23%-74%	53%			23%-74%	53%		Price volatility	(4)			10%-75%	46%			23%-73%	52%
Total assets				$	211			$	59						$	265			$	30
Liabilities
Physical and financial forwards:	Physical and financial forwards:											Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)	(3)	$	3	(2)-3	(1)	$	3	(2)-0	(1)	Discounted cash flow	Market price (per Dth)	(3)	$	4	(2)-0	(1)	$	4	(2)-0	(1)
FTRs	Discounted cash flow	Market price (per MWh)	(3)		1	0-7	3		1	0-7	3	Discounted cash flow	Market price (per MWh)	(3)		64	(1)-4	2		64	(1)-4	2
Electricity	Discounted cash flow	Market price (per MWh)	(3)		1	34-129	63		—	—		Discounted cash flow	Market price (per MWh)	(3)		7	24-115	63
Total liabilities				$	5			$	4			Total liabilities			$	75			$	68

(1)

Averages weighted by volume.

(2)

Includes basis.

(3)

Represents market prices beyond defined terms for Levels 1 and 2.

(4)

Represents volatilities unrepresented in published markets.

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:


Significant Unobservable Inputs	Position	Change to Input	Impact on Fair Value Measurement
Market price	Buy	Increase (decrease)	Gain (loss)
Market price	Sell	Increase (decrease)	Loss (gain)
Price volatility	Buy	Increase (decrease)	Gain (loss)
Price volatility	Sell	Increase (decrease)	Loss (gain)

Nonrecurring Fair Value Measurements

See Note 1011 for information regarding ~~nonrecurring fair value measurements~~an impairment charge recorded by Dominion Energy associated with ~~Dominion Energy’s noncontrolling ownership interest in Dominion Privatization.~~

~~In the first quarter of 2023, Dominion Energy recorded a charge of $~~91 ~~million ($~~68 ~~million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income to adjust~~ a corporate office ~~building down to its estimated fair value, using a market approach, of $~~building.

3530

million. The valuation is considered a Level 3 fair value measurement as it is based on unobservable inputs due to limited comparable market activity. The corporate office building is reflected in the Corporate and Other segment and presented as held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2023.

Recurring Fair Value Measurements

The following table presents the ~~Companies'~~Companies’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:


	Dominion Energy								Virginia Power								Dominion Energy								Virginia Power
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
March 31, 2023
March 31, 2024
Assets
Derivatives:
Commodity	$	—	$	237	$	211	$	448	$	—	$	83	$	59	$	142	$	—	$	281	$	265	$	546	$	—	$	74	$	30	$	104
Interest rate		—		748		—		748		—		90		—		90		—		895		—		895		—		172		—		172
Foreign currency exchange rate		—		1		—		1		—		1		—		1		—		3		—		3		—		3		—		3
Investments(1):
Equity securities:
U.S.																		4,970		—		—		4,970		2,568		—		—		2,568
Fixed income:
Corporate debt instruments																		—		552		—		552		—		300		—		300
Government securities																		218		1,200		—		1,418		129		667		—		796
Other																		222		—		—		222		176		—		—		176
Cash equivalents and other																		2		3		—		5		2		1		—		3
Total assets																	$	5,412	$	2,934	$	265	$	8,611	$	2,875	$	1,217	$	30	$	4,122
Liabilities
Derivatives:
Commodity																	$	—	$	156	$	75	$	231	$	—	$	92	$	68	$	160
Interest rate																		—		483		—		483		—		21		—		21
Foreign currency exchange rate																		—		108		—		108		—		108		—		108
Total liabilities																	$	—	$	747	$	75	$	822	$	—	$	221	$	68	$	289
December 31, 2023
Assets
Derivatives:
Commodity																	$	—	$	325	$	225	$	550	$	—	$	96	$	21	$	117
Interest rate																		—		800		—		800		—		181		—		181
Investments(1):
Equity securities:
U.S.		4,052		—		—		4,052		2,155		—		—		2,155		4,527		—		—		4,527		2,362		—		—		2,362
Fixed income:
Corporate debt instruments		—		544		—		544		—		329		—		329		—		500		—		500		—		274		—		274
Government securities		165		1,137		—		1,302		92		605		—		697		219		1,238		—		1,457		129		687		—		816
Cash equivalents and other		36		—		—		36		11		—		—		11		31		—		—		31		20		—		—		20
Total assets	$	4,253	$	2,667	$	211	$	7,131	$	2,258	$	1,108	$	59	$	3,425	$	4,777	$	2,863	$	225	$	7,865	$	2,511	$	1,238	$	21	$	3,770
Liabilities
Derivatives:
Commodity	$	—	$	388	$	5	$	393	$	—	$	177	$	4	$	181	$	—	$	160	$	139	$	299	$	—	$	95	$	137	$	232
Interest rate		—		403		—		403		—		62		—		62		—		359		—		359		—		45		—		45
Foreign currency exchange rate		—		93		—		93		—		93		—		93		—		39		—		39		—		39		—		39
Total liabilities	$	—	$	884	$	5	$	889	$	—	$	332	$	4	$	336	$	—	$	558	$	139	$	697	$	—	$	179	$	137	$	316
December 31, 2022
Assets
Derivatives:
Commodity	$	—	$	332	$	437	$	769	$	—	$	32	$	236	$	268
Interest rate		—		1,407		—		1,407		—		614		—		614
Investments(1):
Equity securities:
U.S.		3,810		—		—		3,810		2,028		—		—		2,028
Fixed income:
Corporate debt instruments		—		576		—		576		—		360		—		360
Government securities		161		1,059		—		1,220		90		542		—		632
Total assets	$	3,971	$	3,374	$	437	$	7,782	$	2,118	$	1,548	$	236	$	3,902
Liabilities
Derivatives:
Commodity	$	—	$	911	$	15	$	926	$	—	$	333	$	15	$	348
Interest rate		—		377		—		377		—		7		—		7
Foreign currency exchange rate		—		101		—		101		—		101		—		101
Total liabilities	$	—	$	1,389	$	15	$	1,404	$	—	$	441	$	15	$	456

(1)

Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $~~381~~294 million and $~~404~~457 million of assets at Dominion Energy, inclusive of $~~152~~94 million and $~~161~~217 million at Virginia Power, at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

2731

The following table presents the net change in the ~~Companies'~~Companies’ assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:


	Dominion Energy						Virginia Power						Dominion Energy						Virginia Power
Three Months Ended March 31,	2023			2022			2023			2022
Period Ended March 31,													2024			2023			2024			2023
(millions)
Beginning balance	$	422		$	222		$	221		$	102		$	86		$	422		$	(116	)	$	221
Total realized and unrealized gains (losses):
Included in earnings:
Operating revenue														(8	)		—
Electric fuel and other energy-related purchases		(51	)		48			(52	)		45			(121	)		(51	)		(119	)		(52	)
Discontinued operations														(1	)		—
Included in regulatory assets/liabilities		(216	)		(20	)		(166	)		(80	)		131			(216	)		77			(166	)
Settlements		35			(48	)		36			(45	)		76			35			100			36
Purchases		16			—			16			—			27			16			20			16
Transfers out of Level 3		—			—			—			—
Ending balance	$	206		$	202		$	55		$	22		$	190		$	206		$	(38	)	$	55

Dominion Energy had $(8) million and less than $1 million of unrealized gains ~~and losses~~(losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2024 and 2023, ~~and~~respectively. Virginia Power had no ~~such amounts~~unrealized gains or losses for the three months ended March 31, ~~2022. Virginia Power had~~ no ~~such amounts for the three months ended March 31, 2023~~2024 and ~~2022.~~2023.

Fair Value of Financial Instruments

Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these instruments. For the ~~Companies'~~Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:


	Dominion Energy				Virginia Power				Dominion Energy				Virginia Power
	Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)
(millions)
March 31, 2023
March 31, 2024
Long-term debt(2)									$	36,529	$	34,197	$	18,032	$	16,665
Supplemental credit facility borrowings										450		450
Securitization bonds(3)										1,282		1,280		1,282		1,280
Junior subordinated notes(2)										1,388		1,389
December 31, 2023
Long-term debt(2)	$	41,920	$	39,771	$	16,400	$	15,314	$	42,526	$	40,539	$	17,392	$	16,418
Supplemental credit facility borrowings		900		900						450		450
Junior subordinated notes(2)		1,387		1,350						1,388		1,374
December 31, 2022
Long-term debt(2)	$	39,680	$	36,426	$	15,616	$	14,067
Supplemental credit facility borrowings		450		450
Junior subordinated notes(2)		1,387		1,340

(1)

Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at March 31, 2024 and December 31, 2023. Additionally, Dominion Energy carrying amounts include portions classified as current liabilities held for sale at both March 31, 2024 and December 31, 2023.

(3)

Carrying amount includes current portions included in securities due within one year.

Note 9. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments and cash collateral or other instruments under master netting or similar arrangements are discussed in ~~Note~~Notes 2 and 7 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. See Note 8 in this report for additional information about fair value measurements and associated valuation methods for derivatives.

Cash collateral is used in the table below to offset derivative assets and liabilities. In February 2022, Dominion Energy entered into contracts representing offsetting positions to certain existing exchange contracts with collateral requirements as well as new over-the-counter transactions that are not subject to collateral requirements. These contracts resulted in positions which limit the risk of increased cash collateral requirements. Certain accounts receivable and accounts payable recognized on the Companies’ Consolidated Balance Sheets, letters of credit and other forms of securities, as well as certain other long-term debt, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure. See Note 18 for additional information regarding credit-related contingent features for the Companies’ derivative instruments.

Balance Sheet Presentation

The tables below present the ~~Companies'~~Companies’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in their Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:


		Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet									Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet
		Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts			Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
March 31, 2023
March 31, 2024																		March 31, 2024
Commodity contracts:	Commodity contracts:																	Commodity contracts:
Over-the-counter		$	238	$	91	$	—	$	147	$	128	$	57	$	—	$	71		$	229	$	51	$	—	$	178	$	96	$	39	$	—	$	57
Exchange			59		59		—		—		13		13		—		—			114		65		—		49		4		4		—		—
Interest rate contracts:	Interest rate contracts:																	Interest rate contracts:
Over-the-counter			748		202		—		546		90		10		—		80			895		311		—		584		172		2		—		170
Foreign currency exchange rate contracts:	Foreign currency exchange rate contracts:																	Foreign currency exchange rate contracts:
Over-the-counter			1		1		—		—		1		1		—		—			3		3		—		—		3		3		—		—
Total derivatives, subject to a master netting or similar arrangement		$	1,046	$	353	$	—	$	693	$	232	$	81	$	—	$	151		$	1,241	$	430	$	—	$	811	$	275	$	48	$	—	$	227
December 31, 2022
December 31, 2023																		December 31, 2023
Commodity contracts:	Commodity contracts:																	Commodity contracts:
Over-the-counter		$	408	$	28	$	—	$	380	$	238	$	7	$	—	$	231		$	289	$	26	$	—	$	263	$	112	$	13	$	—	$	99
Exchange			160		159		—		1		—		—		—		—			118		33		15		70		4		3		—		1
Interest rate contracts:	Interest rate contracts:																	Interest rate contracts:
Over-the-counter			1,407		248		—		1,159		614		38		—		576			800		191		—		609		181		11		—		170
Total derivatives, subject to a master netting or similar arrangement		$	1,975	$	435	$	—	$	1,540	$	852	$	45	$	—	$	807		$	1,207	$	250	$	15	$	942	$	297	$	27	$	—	$	270

(1)

Excludes derivative assets of $~~151~~203 million and $~~201~~143 million at Dominion Energy and $14 million and $301 million at Virginia Power at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, which are not subject to master netting or other similar arrangements.

2933

Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet

Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet

Gross Liabilities
Presented in
the Consolidated
Balance Sheet(1)

Financial
Instruments

Cash
Collateral
Paid

Net
Amounts

Gross Liabilities
Presented in
the Consolidated
Balance Sheet(1)

Financial
Instruments

Cash
Collateral
Paid

Net
Amounts

(millions)

March 31, 2023

Commodity contracts:

Over-the-counter

$
219

$
100

$
—

$
119

$
82

$
66

$
—

$
16

Exchange

174

59

115

—

31

13

18

—

Interest rate contracts:

Over-the-counter

403

193

1

209

62

1

—

61

Foreign currency exchange rate contracts:

Over-the-counter

93

1

—

92

93

1

—

92

Total derivatives,
   subject to a
   master netting
   or similar
   arrangement

$
889

$
353

$
116

$
420

$
268

$
81

$
18

$
169

December 31, 2022

Commodity contracts:

Over-the-counter

$
443

$
34

$
71

$
338

$
146

$
13

$
71

$
62

Exchange

483

159

324

—

176

—

176

—

Interest rate contracts:

Over-the-counter

377

210

1

166

7

—

—

7

Foreign currency exchange rate contracts:

Over-the-counter

101

32

—

69

101

32

—

69

Total derivatives,
   subject to a
   master netting
   or similar
   arrangement

$
1,404

$
435

$
396

$
573

$
430

$
45

$
247

$
138


	Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
March 31, 2024
Commodity contracts:
Over-the-counter	$	163	$	46	$	—	$	117	$	100	$	34	$	—	$	66
Exchange		65		65		—		—		4		4		—		—
Interest rate contracts:
Over-the-counter		483		316		—		167		21		7		—		14
Foreign currency exchange rate contracts:
Over-the-counter		108		3		—		105		108		3		—		105
Total derivatives, subject to a master netting or similar arrangement	$	819	$	430	$	—	$	389	$	233	$	48	$	—	$	185
December 31, 2023
Commodity contracts:
Over-the-counter	$	266	$	26	$	30	$	210	$	153	$	13	$	30	$	110
Exchange		33		33		—		—		3		3		—		—
Interest rate contracts:
Over-the-counter		359		186		—		173		45		6		—		39
Foreign currency exchange rate contracts:
Over-the-counter		39		5		—		34		39		5		—		34
Total derivatives, subject to a master netting or similar arrangement	$	697	$	250	$	30	$	417	$	240	$	27	$	30	$	183

(1)

Excludes derivative liabilities of $683 million at Dominion Energy at March 31, 2024 and $56 million and $2676 million at Virginia Power at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, which are not subject to master netting or similar arrangements. Dominion Energy did not have any derivative liabilities at ~~March~~December 31, 2023 ~~and December 31, 2022~~ which were not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of the ~~Companies'~~Companies’ derivative activity at March 31, ~~2023.~~2024. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

Dominion Energy

Virginia Power

Current

Noncurrent

Current

Noncurrent

Natural Gas (bcf):

Fixed price

56

15

53

15

Basis(1)

160

405

148

402

Electricity (MWh in millions):

Fixed price

16

45

8

15

FTRs

18

—

18

—

Oil (Gal in millions)

6

—

6

—

Interest rate(2) (in millions)

$
526

$
11,782

$
125

$
2,750

Foreign currency exchange rate(2) (in millions)

Danish Krone

344 kr.

4,167 kr.

344 kr.

4,167 kr.

Euro

€676

€2,131

€676

€2,131


	Dominion Energy				Virginia Power
	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price(1)		43		14		41		14
Basis(2)		200		360		155		360
Electricity (MWh in millions):
Fixed price		18		37		8		7
FTRs		15		—		15		—
Interest rate(3) (in millions)	$	3,862	$	10,112	$	1,200	$	1,050
Foreign currency exchange rate(3) (in millions)
Danish Krone	1,628 kr.		2,237 kr.		1,628 kr.		2,237 kr.
Euro	€302		€1,551		€302		€1,551

(1)

Includes options at Dominion Energy.

(2)

Includes options.

~~(2)~~(3)

Maturity is determined based on final settlement period.

3034

AOCI

The following table presents selected information related to gains and losses on cash flow hedges included in AOCI in the ~~Companies'~~Companies’ Consolidated Balance Sheets at March 31, ~~2023:~~2024:


	Dominion Energy							Virginia Power					Dominion Energy							Virginia Power
	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax		Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax		Maximum Term	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax		Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax		Maximum Term
(millions)
Interest rate	$	(250	)	$	(33	)	393 months	$	7	$	—	393 months	$	(202	)	$	(31	)	381 months	$	22	$	—	381 months
Total	$	(250	)	$	(33	)		$	7	$	—		$	(202	)	$	(31	)		$	22	$	—

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest rate payments) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.

3135

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of the ~~Companies'~~Companies’ derivatives and where they are presented in their Consolidated Balance Sheets:


	Dominion Energy						Virginia Power						Dominion Energy						Virginia Power
	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At March 31, 2023
At March 31, 2024
ASSETS
Current Assets
Commodity	$	—	$	157	$	157	$	—	$	79	$	79	$	—	$	256	$	256	$	—	$	86	$	86
Interest rate		11		95		106		11		—		11		94		332		426		94		—		94
Foreign currency exchange rate		—		1		1		—		1		1		—		3		3		—		3		3
Total current derivative assets		11		253		264		11		80		91
Total current derivative assets(1)														94		591		685		94		89		183
Noncurrent Assets
Commodity		—		291		291		—		63		63		—		290		290		—		18		18
Interest rate		79		563		642		79		—		79		78		391		469		78		—		78
Total noncurrent derivative assets(1)		79		854		933		79		63		142
Total noncurrent derivative assets(2)														78		681		759		78		18		96
Total derivative assets	$	90	$	1,107	$	1,197	$	90	$	143	$	233	$	172	$	1,272	$	1,444	$	172	$	107	$	279
LIABILITIES
Current Liabilities
Commodity	$	—	$	309	$	309	$	—	$	145	$	145	$	—	$	191	$	191	$	—	$	136	$	136
Interest rate		—		55		55		—		—		—		21		96		117		21		—		21
Foreign currency exchange rate		—		7		7		—		7		7		—		35		35		—		35		35
Total current derivative liabilities		—		371		371		—		152		152
Total current derivative liabilities(3)														21		322		343		21		171		192
Noncurrent Liabilities
Commodity		—		84		84		—		36		36		—		40		40		—		24		24
Interest rate		62		286		348		62		—		62		—		366		366		—		—		—
Foreign currency exchange rate		—		86		86		—		86		86		—		73		73		—		73		73
Total noncurrent derivative liabilities(2)		62		456		518		62		122		184
Total noncurrent derivative liabilities(4)														—		479		479		—		97		97
Total derivative liabilities	$	62	$	827	$	889	$	62	$	274	$	336	$	21	$	801	$	822	$	21	$	268	$	289
At December 31, 2022
December 31, 2023
ASSETS
Current Assets
Commodity	$	—	$	532	$	532	$	—	$	264	$	264	$	—	$	312	$	312	$	—	$	91	$	91
Interest rate		501		104		605		501		—		501		143		298		441		143		—		143
Total current derivative assets		501		636		1,137		501		264		765
Total current derivative assets(1)														143		610		753		143		91		234
Noncurrent Assets
Commodity		—		237		237		—		4		4		—		238		238		—		26		26
Interest rate		113		689		802		113		—		113		38		321		359		38		—		38
Total noncurrent derivative assets(1)		113		926		1,039		113		4		117
Total noncurrent derivative assets(2)														38		559		597		38		26		64
Total derivative assets	$	614	$	1,562	$	2,176	$	614	$	268	$	882	$	181	$	1,169	$	1,350	$	181	$	117	$	298
LIABILITIES
Current Liabilities
Commodity	$	—	$	700	$	700	$	—	$	290	$	290	$	—	$	244	$	244	$	—	$	188	$	188
Interest rate		—		70		70		—		—		—		45		76		121		45		—		45
Foreign currency exchange rate		—		8		8		—		8		8		—		11		11		—		11		11
Total current derivative liabilities		—		778		778		—		298		298
Total current derivative liabilities(3)														45		331		376		45		199		244
Noncurrent Liabilities
Commodity		—		226		226		—		58		58		—		55		55		—		44		44
Interest rate		7		300		307		7		—		7		—		238		238		—		—		—
Foreign currency exchange rate		—		93		93		—		93		93		—		28		28		—		28		28
Total noncurrent derivative liabilities(2)		7		619		626		7		151		158
Total noncurrent derivative liabilities(4)														—		321		321		—		72		72
Total derivative liabilities	$	7	$	1,397	$	1,404	$	7	$	449	$	456	$	45	$	652	$	697	$	45	$	271	$	316

(1)

Includes $23 million and $54 million recorded in current assets held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative assets presented in other current assets in the Companies’ Consolidated Balance Sheets.

(2)

Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

~~(2)~~(3)

Includes $1 million and $30 million recorded in current liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative liabilities presented in other current liabilities in the Companies’ Consolidated Balance Sheets.

(4)

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

The following tables present the gains and losses on the ~~Companies'~~Companies’ derivatives, as well as where the associated activity is presented in their Consolidated Balance Sheets and Statements of Income.


		Dominion Energy									Virginia Power										Dominion Energy									Virginia Power
Derivatives in cash flow hedging relationships		Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)			Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)				Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)			Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income		Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)
(millions)
Three Months Ended March 31, 2024																				Three Months Ended March 31, 2024
Derivative type and location of gains (losses):																				Derivative type and location of gains (losses):
Interest rate(3)																					$	8		$	(11	)	$	88		$	8		$	—	$	88
Total																					$	8		$	(11	)	$	88		$	8		$	—	$	88
Three Months Ended March 31, 2023	Three Months Ended March 31, 2023																			Three Months Ended March 31, 2023
Derivative type and location of gains (losses):	Derivative type and location of gains (losses):																			Derivative type and location of gains (losses):
Interest rate(3)		$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—		$	(120	)		$	(12	)		(11	)	$	(120	)	$	(12	)	$	—	$	(120	)
Total		$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—		$	(120	)		$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—	$	(120	)
Three Months Ended March 31, 2022
Derivative type and location of gains (losses):
Interest rate(3)		$	33			(14	)	$	279		$	26		$	(1	)	$	279
Total		$	33		$	(14	)	$	279		$	26		$	(1	)	$	279

(1)

Amounts deferred into AOCI have no associated effect in the ~~Companies'~~Companies’ Consolidated Statements of Income.

(2)

Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the ~~Companies'~~Companies’ Consolidated Statements of Income.

(3)

Amounts recorded in the ~~Companies'~~Companies’ Consolidated Statement of Income are classified in interest and related charges.


	Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)													Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)
Derivatives not designated as hedging instruments	Dominion Energy						Virginia Power							Dominion Energy						Virginia Power
Three Months Ended March 31,	2023			2022			2023			2022
Period Ended March 31,														2024			2023			2024			2023
(millions)
Derivative type and location of gains (losses):													Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	395		$	(330	)	$	9		$	(41	)		$	76		$	395		$	41		$	9
Purchased gas		94			2
Electric fuel and other energy-related purchases		(45	)		59			(46	)		57				(148	)		(45	)		(146	)		(46	)
Discontinued operations															(24	)		94
Interest rate:
Interest and related charges		(102	)		196										(78	)		(76	)
Discontinued operations															—			(26	)
Total	$	342		$	(73	)	$	(37	)	$	16			$	(174	)	$	342		$	(105	)	$	(37	)

(1)

Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the ~~Companies'~~Companies’ Consolidated Statements of Income.

(2)

Excludes amounts related to foreign currency exchange rate derivatives that are deferred to plant under construction within property, plant and equipment and regulatory assets/liabilities that will begin to amortize once the CVOW Commercial Project is placed in service.

Note 10. Investments

Dominion Energy

Equity and Debt Securities

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $~~108~~141 million and $~~111~~119 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

3337

Decommissioning Trust Securities

The Companies hold equity and fixed income securities and cash equivalents, and Dominion Energy also holds insurance contracts, in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. The ~~Companies'~~Companies’ decommissioning trust funds are summarized below:


	Dominion Energy												Virginia Power												Dominion Energy												Virginia Power
	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value		Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value		Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value		Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value
(millions)
March 31, 2023
March 31, 2024																									March 31, 2024
Equity securities:(1)																									Equity securities:(1)
U.S.																									$	1,260	$	3,720	$	(10	)				$	4,970	$	733	$	1,936	$	(7	)				$	2,662
Fixed income securities:(2)																									Fixed income securities:(2)
Corporate debt instruments																										562		7		(27	)		$	—		542		319		2		(21	)		$	—		300
Government securities																										1,441		12		(61	)			—		1,392		822		7		(34	)			—		795
Common/ collective trust funds																										—		—		—				—		—		—		—		—				—		—
Other																										211		—		—				—		211		176		—		—				—		176
Insurance contracts																										245		—		—						245
Cash equivalents and other(3)																										58		—		—				—		58		27		—		—				—		27
Total																									$	3,777	$	3,739	$	(98	)	(4)	$	—	$	7,418	$	2,077	$	1,945	$	(62	)	(4)	$	—	$	3,960
December 31, 2023																									December 31, 2023
Equity securities:(1)																									Equity securities:(1)
U.S.	$	1,392	$	2,708	$	(25	)				$	4,075	$	867	$	1,407	$	(22	)				$	2,252	$	1,276	$	3,270	$	(10	)				$	4,536	$	759	$	1,706	$	(10	)				$	2,455
Fixed income securities:(2)	Fixed income securities:(2)																								Fixed income securities:(2)
Corporate debt instruments		586		3		(46	)		$	—		543		360		2		(33	)		$	—		329		508		10		(27	)		$	—		491		292		3		(21	)		$	—		274
Government securities		1,299		12		(42	)			—		1,269		709		7		(19	)			—		697		1,426		28		(24	)			—		1,430		811		17		(12	)			—		816
Common/ collective trust funds		74		—		—				—		74		54		—		—				—		54		161		—		—				—		161		124		—		—				—		124
Insurance contracts		232		—		—						232														244		—		—						244
Cash equivalents and other(3)		69		—		—				—		69		28		—		—				—		28		84		—		—				—		84		47		—		—				—		47
Total	$	3,652	$	2,723	$	(113	)	(4)	$	—	$	6,262	$	2,018	$	1,416	$	(74	)	(4)	$	—	$	3,360	$	3,699	$	3,308	$	(61	)	(4)	$	—	$	6,946	$	2,033	$	1,726	$	(43	)	(4)	$	—	$	3,716
December 31, 2022
Equity securities:(1)
U.S.	$	1,378	$	2,501	$	(46	)				$	3,833	$	858	$	1,304	$	(35	)				$	2,127
Fixed income securities:(2)
Corporate debt instruments		640		1		(65	)		$	—		576		406		1		(47	)		$	—		360
Government securities		1,252		4		(70	)			—		1,186		664		2		(35	)			—		631
Common/ collective trust funds		98		—		—				—		98		61		—		—				—		61
Insurance contracts		221		—		—						221
Cash equivalents and other(3)		43		—		—				—		43		23		—		—				—		23
Total	$	3,632	$	2,506	$	(181	)	(4)	$	—	$	5,957	$	2,012	$	1,307	$	(117	)	(4)	$	—	$	3,202

(1)

Unrealized gains and losses on equity securities are included in other income (expense) and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Changes in allowance for credit losses are included in other income (expense).

(3)

Dominion Energy includes pending sales of securities of $3345 million and $4249 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively. Virginia Power includes pending sales of securities of $1724 million and $2427 million at March 31, ~~2023,~~2024, and December 31, ~~2022,~~2023, respectively.

(4)

Dominion ~~Energy's~~Energy’s fair value of securities in an unrealized loss position was $1.2 billion and $~~1.6~~764 ~~billion~~million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively. Virginia ~~Power's~~Power’s fair value of securities in an unrealized loss position was $~~627~~696 million and $~~946~~384 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

3438

The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy and Virginia Power’s nuclear decommissioning trusts is summarized below:

Dominion Energy

Virginia Power

Three Months Ended March 31,

2023

2022

2023

2022

(millions)

Net gains (losses) recognized during the period

$
226

$
(206
)

$
116

$
(102
)
Less: Net (gains) losses recognized during the period
on securities sold during the period

2

(1
)

1

(4
)
Unrealized gains (losses) recognized during the period
on securities still held at period end(1)

$
228

$
(207
)

$
117

$
(106
)


	Dominion Energy					Virginia Power
Three Months Ended March 31,	2024			2023		2024			2023
(millions)
Net gains (losses) recognized during the period	$	459		$	226	$	242		$	116
Less: Net (gains) losses recognized during the period on securities sold during the period		(10	)		2		(9	)		1
Unrealized gains (losses) recognized during the period on securities still held at period end(1)	$	449		$	228	$	233		$	117

(1)

Included in other income (expense) and the nuclear decommissioning trust regulatory liability.

The fair value of Dominion Energy and Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, ~~2023~~2024 by contractual maturity is as follows:


	Dominion Energy		Virginia Power		Dominion Energy		Virginia Power
(millions)
Due in one year or less	$	90	$	58	$	30	$	16
Due after one year through five years		500		274		514		254
Due after five years through ten years		420		245		405		236
Due after ten years		876		503		985		589
Total	$	1,886	$	1,080	$	1,934	$	1,095

Presented below is selected information regarding Dominion Energy and Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.

Dominion Energy

Virginia Power

Three Months Ended March 31,

2023

2022

2023

2022

(millions)

Proceeds from sales

$
544

$
814

$
373

$
392

Realized gains(1)

21

40

17

16

Realized losses(1)

41

54

31

19


	Dominion Energy				Virginia Power
Three Months Ended March 31,	2024		2023		2024		2023
(millions)
Proceeds from sales	$	695	$	544	$	471	$	373
Realized gains(1)		32		21		23		17
Realized losses(1)		38		41		23		31

(1)

Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Equity Method Investments

Dominion Energy recorded equity earnings on its investments of $80 million for both the three months ended March 31, 2023 and 2022, in earnings from equity method investees in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity losses ofless than $1 million and $2 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, in ~~discontinued operations related to~~other income (expense) in its ~~investment in Atlantic Coast Pipeline.~~Consolidated Statements of Income. In addition, Dominion Energy ~~received distributions~~recorded equity earnings (losses) of $$(8510) million and $76 million for the three months ended March 31, 2024 and 2023, respectively, in discontinued operations, including amounts related to its investments in Cove Point and ~~2022, respectively.~~Atlantic Coast Pipeline discussed below. Dominion Energy ~~made contributions~~received distributions of $10131 million and $7485 million for the three months ended March 31, 2024 and 2023, respectively. Dominion Energy made contributions of $3 million and ~~2022,~~$10 million for the three months ended March 31, 2024 and 2023, respectively. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $~~217~~13 million and $~~223~~18 million, respectively. At March 31, 2024, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $2 million attributable to capitalized interest. At December 31, 2023, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and a $~~213~~3 million ~~basis difference from Dominion Energy’s investment in Cove Point, which is being amortized over the useful lives of the underlying assets. At December 31, 2022, these differences are comprised of $~~9 ~~million of equity method goodwill that is not being amortized, $215~~ ~~million basis difference from Dominion Energy’s investment in Cove Point, which is being amortized over the useful lives of the underlying assets and a net $(~~1~~) million basis difference primarily~~ attributable to capitalized interest.

Cove Point

~~Dominion Energy holds a~~ 50~~% noncontrolling limited partnership interest in Cove Point which is accounted for as an equity method investment, as discussed in~~See Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023 for a discussion of the sale of Dominion Energy’s remaining interest in Cove Point to BHE, which closed in September 2023.

Dominion Energy recorded distributions from Cove Point of $83 million ~~and $~~for the three months ended March 31, 2023.

7639

~~million~~

Amounts presented within discontinued operations within Dominion Energy’s Consolidated Statements of Income related to Cove Point for the three months ended March 31, 2023 were $76 million for earnings on equity method investees, $62 million of interest expense and ~~2022, respectively.~~$3 million of income tax expense.

Atlantic Coast Pipeline

A description of Dominion Energy’s investment in Atlantic Coast Pipeline, including events that led to the cancellation of the Atlantic Coast Pipeline Project in July 2020, is included in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

Dominion Energy recorded equity losses related to Atlantic Coast Pipeline of $11 million and $1 million for the three months ended March 31, 2024 and 2023, respectively, in discontinued operations.

At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy has recorded a liability of $~~100~~14 million and $~~114~~4 million, respectively, in other current liabilities in its Consolidated Balance Sheets as a result of its share of equity losses exceeding its investment which reflects Dominion Energy’s obligations on behalf of Atlantic Coast Pipeline related to its AROs.

Dominion Energy ~~recorded $~~6 ~~million of contributions to Atlantic Coast Pipeline during the three months ended March 31, 2023. Dominion Energy made~~ no ~~contributions to Atlantic Coast Pipeline during the three months ended March 31, 2022.~~

~~Dominion Energy~~ expects toit could incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows.

~~Wrangler~~

A description of Dominion Energy’s investment in Wrangler (through March 2022) is included in Note 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.

~~In March 2022, Dominion Energy sold its remaining~~ 15~~% noncontrolling partnership interest in Wrangler to Interstate Gas Supply, Inc. for cash consideration of $~~85 ~~million. Dominion Energy recognized a gain of $~~11 ~~million ($~~8 ~~million after-tax), included in other income (expense), in its Consolidated Statements of Income for the three months ended March 31, 2022.~~

Dominion Privatization

In February 2024, Dominion Energy ~~holds~~received a distribution of $50126~~% noncontrolling ownership interest in~~ million from Dominion Privatization, which iswas accounted for as a return of an ~~equity method investment, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.~~

In March 2022, Dominion Energy completed its initial contribution of privatization operations in South Carolina (excluding contracts held by DESC), Texas and Pennsylvania to Dominion Privatization for total consideration of $~~120~~ ~~million, subject to customary closing adjustments, comprised of $~~60 ~~million in cash proceeds and a~~ 50~~% noncontrolling ownership interest in Dominion Privatization with an initial fair value of $~~60 million, estimated using the market approach. This was considered a Level 2 fair value measurement given that it was based on the agreed-upon sales price. In the first quarter of 2022, Dominion Energy recorded a gain of $23 ~~million ($~~16 ~~million after-tax), presented in losses (gains) on sales of assets in its Consolidated Statements of Income.~~investment.

Note 11. Property, Plant and Equipment

Acquisitions of Nonregulated Solar Projects

Other than the item discussed below, there have been no significant updates to acquisitions of solar projects by the Companies from those discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

In March 2023, Dominion Energy entered into an agreement to acquire the Foxhound solar development project in Virginia (reflected in Contracted ~~Assets) with closing on the agreement expected~~Energy) which closed in February 2024~~. The project is expected to cost approximately $205~~ ~~million, including the initial acquisition cost,~~, and ~~commence~~commenced commercial operations in April 2024~~with a generating capacity of~~ 83 ~~MW.~~. Dominion Energy ~~expects to~~will claim production tax credits on the energy generated and sold by the project.

Sale of Corporate Office Building

In the first quarter of 2023, Dominion Energy ~~anticipates that an~~recorded a charge of $91 million ($68 million after-tax) in impairment ~~charge may be required upon closing given~~of assets and other charges in its ~~expectation that~~Consolidated Statements of Income to adjust a corporate office building down to its estimated fair value, using a market approach, of $35 million. The valuation is considered a Level 3 fair value measurement as it is ~~more likely that not that~~based on unobservable inputs due to limited comparable market activity. The corporate office building is reflected in the ~~nonregulated solar generation projects within Contracted Assets will be sold before the end of their useful lives~~Corporate and Other segment and presented as ~~described in Note 10 to the Consolidated Financial Statements~~held for sale in Dominion Energy’s ~~Annual Report on Form 10-K for the year ended~~Consolidated Balance Sheets at both March 31, 2024 and December 31, ~~2022.~~2023.

3640

Note 12. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

Dominion Energy

Virginia Power

March 31,
2023

December 31,
2022

March 31,
2023

December 31,
2022

(millions)

Regulatory assets:

Deferred cost of fuel used in electric generation(1)

$
537

$
603

$
118

$
133

Deferred project costs and DSM programs for gas utilities(2)

48

68

Unrecovered gas costs(3)

551

374

Deferred rider costs for Virginia electric utility(4)

90

152

90

152

Ash pond and landfill closure costs(5)

205

221

205

221

Deferred nuclear refueling outage costs(6)

66

83

66

83

NND Project costs(7)

138

138

Deferred early plant retirement charges(8)

169

226

169

226

Derivatives(9)

116

262

112

251

Other

236

213

60

74

Regulatory assets-current

2,156

2,340

820

1,140

Unrecognized pension and other postretirement benefit costs(10)

971

989

4

4

Deferred rider costs for Virginia electric utility(4)

496

363

496

363

Deferred project costs for gas utilities(2)

732

703

Interest rate hedges(11)

169

169

—

—

AROs and related funding(12)

393

398

NND Project costs(7)

2,053

2,088

Ash pond and landfill closure costs(5)

2,033

2,051

2,030

2,049

Deferred cost of fuel used in electric generation(1)

1,400

1,551

1,400

1,551

Derivatives(9)

199

255

92

148

Other

505

520

129

132

Regulatory assets-noncurrent

8,951

9,087

4,151

4,247

Total regulatory assets

$
11,107

$
11,427

$
4,971

$
5,387

Regulatory liabilities:

Provision for future cost of removal and AROs(13)

127

127

111

111

Reserve for refunds and rate credits to electric utility customers(14)

109

125

14

25

Income taxes refundable through future rates(15)

150

152

65

65

Monetization of guarantee settlement(16)

67

67

Derivatives(9)

40

327

31

176

Other

158

148

88

129

Regulatory liabilities-current

651

946

309

506

Income taxes refundable through future rates(15)

4,017

4,054

2,256

2,272

Provision for future cost of removal and AROs(13)

2,537

2,510

1,148

1,135

Nuclear decommissioning trust(17)

1,812

1,685

1,812

1,685

Monetization of guarantee settlement(16)

686

702

Interest rate hedges(11)

107

240

107

240

Reserve for refunds and rate credits to electric utility customers(14)

298

325

—

—

Unrecognized pension and other postretirement benefit costs(10)

18

22

Overrecovered other postretirement benefit costs(18)

146

140

Derivatives(9)

209

235

—

—

Other

262

194

234

167

Regulatory liabilities-noncurrent

10,092

10,107

5,557

5,499

Total regulatory liabilities

$
10,743

$
11,053

$
5,866

$
6,005


	Dominion Energy				Virginia Power
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)	$	105	$	245	$	34	$	95
Securitized cost of fuel used in electric generation(2)		100		—		100		—
Deferred rider costs for Virginia electric utility(3)		168		270		168		270
Ash pond and landfill closure costs(4)		188		200		188		200
Deferred nuclear refueling outage costs(5)		64		63		64		63
NND Project costs(6)		138		138
Derivatives(7)		98		162		96		160
Other		231		231		94		80
Regulatory assets-current		1,092		1,309		744		868
Unrecognized pension and other postretirement benefit costs(8)		518		1,036		—		—
Deferred rider costs for Virginia electric utility(3)		553		496		553		496
Interest rate hedges(9)		168		168		—		—
AROs and related funding(10)		381		379
NND Project costs(6)		1,914		1,949
Ash pond and landfill closure costs(4)		2,403		2,410		2,396		2,407
Deferred cost of fuel used in electric generation(1)		—		1,221		—		1,221
Securitized cost of fuel used in electric generation(2)		1,177		—		1,177		—
Derivatives(7)		142		107		104		66
Other		603		590		122		127
Regulatory assets-noncurrent		7,859		8,356		4,352		4,317
Total regulatory assets	$	8,951	$	9,665	$	5,096	$	5,185
Regulatory liabilities:
Provision for future cost of removal and AROs(11)		118		118		118		118
Reserve for refunds and rate credits to electric utility customers(12)		83		83		—		—
Income taxes refundable through future rates(13)		107		107		70		70
Monetization of guarantee settlement(14)		67		67
Derivatives(7)		10		7		—		—
Other		127		140		96		133
Regulatory liabilities-current		512		522		284		321
Income taxes refundable through future rates(13)		3,044		3,076		2,214		2,237
Provision for future cost of removal and AROs(11)		1,826		1,818		1,186		1,185
Nuclear decommissioning trust(15)		2,297		2,098		2,297		2,098
Monetization of guarantee settlement(14)		619		635
Interest rate hedges(9)		313		233		313		233
Reserve for refunds and rate credits to electric utility customers(12)		212		237		—		—
Overrecovered other postretirement benefit costs(16)		162		155
Derivatives(7)		194		136		—		—
Other		376		286		333		225
Regulatory liabilities-noncurrent		9,043		8,674		6,343		5,978
Total regulatory liabilities	$	9,555	$	9,196	$	6,627	$	6,299

(1)

Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia ~~Power's~~Power’s electric generation ~~operations and additionally for~~operations. Additionally, Dominion Energy includes deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations. In February 2024, Virginia Power completed a securitization of $1.3 billion of under-recovered fuel costs for its Virginia service territory.

(2)

~~Primarily reflects amounts expected to be collected from or owed to gas customers~~Reflects under-recovered fuel costs for Virginia Power’s Virginia service territory securitized through the issuance of bonds by VPFS in ~~Dominion Energy’s service territories associated with current rider projects, including CEP, PIR and certain amounts related to pipeline integrity management.~~February 2024. See Note 15 in this report and Notes 13 and 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.

(3)

~~Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.~~

~~(4)~~

Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects. ~~See Note 13 for additional information.~~

~~(5)~~(4)

Primarily reflects legislation in Virginia which requires any CCR asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through beneficial reuse. These deferred costs are expected to be collected over a period between 15 and 18 years commencing December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs on uncollected expenditures once expenditures have been made.

~~(6)~~41

(5)

Legislation in Virginia requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

~~(7)~~(6)

Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20-year period ending in 2039.

~~(8)~~

Reflects amounts from the early retirements of certain coal- and oil-fired generating units to be amortized through 2023 in accordance with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

~~(9)~~(7)

Represents changes in the fair value of derivatives, excluding separately presented interest rate hedges, that following settlement are expected to be recovered from or refunded to customers.

~~(10)~~(8)

Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion ~~Energy's~~Energy’s rate-regulated subsidiaries. Includes regulatory assets of $10 million and $215 million and regulatory liabilities of $(5) million and $12 million at March 31, 2024 and December 31, 2023, respectively, related to retained pension and other postretirement benefit plan assets and obligations for the East Ohio (at December 31, 2023 only), PSNC and Questar Gas Transactions which will be reclassified to AOCI upon closing of each transaction.

~~(11)~~(9)

Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 25 years and 24 years for Dominion Energy and Virginia Power, respectively, as of March 31, ~~2023.~~2024.

~~(12)~~(10)

Represents uncollected costs, including deferred depreciation and accretion expense, related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC’s electric generating facilities, including Summer, and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately 105 years.

~~(13)~~(11)

Rates charged to customers by Dominion Energy and Virginia ~~Power's~~Power’s regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

~~(14)~~(12)

Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period effective February 2019, in connection with the SCANA Merger Approval Order. Also reflects amounts to be refunded to jurisdictional retail electric customers in Virginia associated with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 for additional information.

~~(15)~~(13)

Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will primarily reverse at the weighted average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.

~~(16)~~(14)

Reflects amounts to be refunded to DESC electric service customers over a 20-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement.

~~(17)~~(15)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon, as applicable) for the future decommissioning of Virginia ~~Power's~~Power’s utility nuclear generation stations, in excess of the related AROs.

~~(18)~~(16)

Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

At March 31, ~~2023,~~2024, Dominion Energy and Virginia Power regulatory assets include $~~5.7~~5.8 billion and $~~2.7~~4.5 billion, respectively, on which they do not expect to earn a return during the applicable recovery period. With the exception of certain items discussed above, the majority of these expenditures are expected to be recovered within the next two years.

Note 13. Regulatory Matters

Regulatory Matters Involving Potential Loss Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in various regulatory matters. Certain regulatory matters may ultimately result in a loss; however, as such matters are in an initial procedural phase, involve uncertainty as to the outcome of pending reviews or orders, and/or involve significant factual issues that need to be resolved, it is not possible for the Companies to estimate a range of possible loss. For regulatory matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the regulatory process such that the Companies are able to estimate a range of possible loss. For regulatory matters that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any estimated range is based on currently available information, involves elements of judgment and significant uncertainties and may not represent the Companies’ maximum possible loss exposure. The circumstances of such regulatory matters will change from time to time and actual results may vary significantly from the current estimate. For current matters not specifically reported below, management does not anticipate that the outcome from such matters would have a material effect on the Companies’ financial position, liquidity or results of operations.

Other Regulatory Matters

Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

3842

Virginia Regulation - ~~Key Legislation Affecting Operations~~Recent Developments

~~Virginia~~ 2023 ~~Legislation~~Biennial Review

In ~~April~~July 2023, ~~legislation was enacted that amended several key provisions of the Regulation Act, as previously amended by the GTSA, and revised portions of the existing regulatory framework affecting~~ Virginia ~~Power’s operations. See Note 13 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, for additional information on the Regulation Act and GTSA.~~

~~The legislation resets the frequency of~~Power filed its base rate reviews from a triennial period, as established under the GTSA, to a biennial period commencing with the 2023 Biennial Review. Such biennial reviews shall include the establishment of an authorized ROE to be utilized for base ratescase and riders, prospective base rates for the upcoming two-year period based on projected cost of service and a determination by the Virginia Commission as to Virginia Power’s base rate earned return for the most recently completed two-year period against the previously authorized ROE, including any potential credits to customers’ bills.

~~The legislation provides that the Virginia Commission will establish an authorized ROE of~~ ~~9.70% for Virginia Power~~accompanying schedules in the 2023 Biennial Review, reflecting the average authorized ROE of vertically integrated electric utilities by the applicable regulatory commissions in the peer group jurisdictions of Florida, Georgia, Texas, Tennessee, West Virginia, Kentucky and North Carolina. Subsequent to the 2023 Biennial Review, all provisions related to this peer group benchmarking expire and the Virginia Commission is authorized to utilize any methodology it deems to be consistent with the public interest to make future ROE determinations. In all future biennial reviews, if the Virginia Commission determines that Virginia Power’s existing base rates will, on a going-forward basis, produce revenues that are either in excess of or below its authorized rate of return, the Virginia Commission is authorized to reduce or increase such base rates, as applicable and necessary, to ensure that Virginia Power’s base rates are just and reasonable while still allowing Virginia Power to recover its costs and earn a fair rate of return. In addition, beginning with the biennial review to be filed in 2025, the Virginia Commission may, at its discretion, increase or decrease Virginia Power’s authorized ROE by up to 50 basis points based on factors that may include reliability, generating plant performance, customer service and operating efficiency, with the provisions applying to such adjustments to be determined in a future proceeding.

~~The legislation directs that if the Virginia Commission determines as part~~support of the 2023 Biennial Review ~~that~~in accordance with legislation enacted in Virginia ~~Power has~~in April 2023. Virginia Power’s earnings test analysis, as filed, demonstrated it earned ~~more than~~a combined ROE of 9.04% on its generation and distribution services for the test period, within 70 basis points ~~above~~of its authorized ROE of 9.35% established in the 2021 Triennial ~~Review~~Review. Virginia Power did not request an increase in base rates for generation and distribution services and proposed that base rates remain at their existing level utilizing an ROE of 859.70% for the prospective test periods and a common equity capitalization to total capitalization ratio of ~~the amount of such earnings above this level be credited to customers’ bills. In future biennial reviews, beginning with the biennial review to be filed in 2025,~~ 8552.10% ~~of any earnings determined by the Virginia Commission to be up to 150 basis points above Virginia Power’s authorized ROE shall be credited to customers’ bills as well as~~ ~~100~~% of any earnings that are more than 150 basis points above Virginia Power’s authorized ROE. For the purposes of measuring any bill credits due to customers, associated income taxes are factored into the determination of such amounts. In addition, the legislation eliminates Virginia Power’s ability to utilize Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects as a CCRO to reduce or offset any earnings otherwise eligible for customer credits as previously permitted under the GTSA.

~~In addition to the biennial review mechanisms discussed above, the legislation also includes provisions related to other aspects of Virginia Power’s ratemaking framework.~~

•

~~Riders into base rates~~:. Virginia Power ~~is required~~noted that while its prospective test periods would result in a revenue deficiency, it did not request an increase to ~~combine~~base rates given that the combination of certain riders with an aggregate annual revenue requirement of at least $350 million ~~with its~~into base rates effective July ~~2023. After such riders are combined, they will be considered as part of base rates for the purposes of the biennial review proceedings. The inclusion of such riders~~2023 cannot serve as the basis for an increase in base rates as part of the 2023 Biennial Review.

•

~~Rider consolidation: Upon determination by~~In November 2023, Virginia Power, the Virginia Commission ~~certain riders, while remaining separate from base rates, may be consolidated for cost recovery~~staff and ~~review purposes.~~

•

~~Capitalization ratio: The legislation establishes that Virginia Power is required to undertake reasonable efforts to maintain~~other parties filed a ~~common equity capitalization to total capitalization ratio through December 2024 of~~ ~~52.10~~%.

•

~~Fuel cost securitization: Virginia Power is authorized, on or before July 2024, to petition~~comprehensive settlement agreement with the Virginia Commission for ~~approval of a financing order for certain deferred fuel costs.~~approval. The comprehensive settlement agreement indicates that Virginia Power ~~is required~~demonstrated it earned a combined ROE of 9.05% on its generation and distribution services for the test period, requires previously unrecovered severe weather event costs of $45 million to ~~permit certain retail~~be recovered through base rates during the 2023-2024 biennial period, with carrying costs, and provides for $15 million in one-time credits to customers ~~to opt out~~by September 2024.

In February 2024, the Virginia Commission approved the comprehensive settlement agreement and issued its order in this matter. In doing so, the Virginia Commission determined that Virginia Power’s earnings for the test period, considered as a whole, were within 70 basis points above or below its authorized ROE of ~~any such deferred fuel cost securitization.~~

•

~~Electric generation plant retirements~~:9.35%. The Virginia Commission ~~shall provide~~also authorized an ROE of 9.70%, as directed by legislation enacted in Virginia in April 2023, for Virginia Power that will be applied to Virginia Power’s riders prospectively and that will also be utilized to measure base rate earnings for the ~~Virginia General Assembly, on an annual basis, a report that includes information concerning the reliability impacts of generation unit additions and retirement determinations, along~~2025 Biennial Review. In connection with the ~~potential impact on~~order, Virginia Power recorded a net benefit of $17 million ($12 million after-tax) in the ~~purchase~~first quarter of ~~power from generation~~2024 within impairment of assets ~~outside~~and other charges in its Consolidated Statements of Income for a regulatory asset for previously unrecovered severe weather event costs, which will be amortized by the ~~Virginia jurisdiction, the result~~end of ~~which could impact the depreciable lives of Virginia Power’s electric generation facilities in future periods.~~

~~Virginia Regulation - Recent Developments~~2024.

Virginia Fuel Expenses

In May 2023, Virginia Power filed its annual fuel factor filing with the Virginia Commission to recover an estimated $2.3 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2023 and a projected $1.3 billion under-recovered balance as of June 30, 2023. ~~The projected under-recovered balance includes $578~~ ~~million representing the remaining two years of under-recovered balance as of June 30, 2022 being collected over a~~ ~~three-year~~ ~~period in accordance with the Virginia Commission’s approval of Virginia Power’s 2022 annual fuel factor as described~~As discussed in Note 13 to the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023, Virginia Power proposed two alternatives to recover these under-collected fuel ~~costs. The first~~costs, including an option ~~reflects recovery~~based on an anticipated securitization of ~~the total $3.3~~ ~~billion fuel cost requirement over the July 2023 through June 2024 fuel period and results in an increase in Virginia Power’s fuel revenues of $631~~ million when applied to projected kilowatt-hour sales for the period. The second option proposed by Virginia Power incorporates its anticipated July 2023 application to the Virginia Commission for approval of a financing order to securitize up to ~~the projected~~ $1.3 billion under-recovered balance as of June 30, 2023 as permitted under legislation enacted in Virginia in April ~~2023. Under this option, Virginia Power proposed implementation of the current period fuel factor rate only effective July~~ 2023, ~~on an interim basis, while suspending implementation of the prior-period fuel factor rate pending the Virginia Commission’s consideration of the~~with such securitization ~~petition. If~~ approved by the Virginia Commission in November 2023 and completed by Virginia Power in February 2024. In March 2024, the Virginia Commission approved Virginia Power’s annual fuel factor based on the securitization option, which results in a net decrease in Virginia Power’s fuel revenues for the rate year of approximately $541 million. In addition, the Virginia ~~Power has proposed~~Commission approved Virginia Power’s proposal to alter the order in which revenue from certain customers who elect to pay market-based rates would be allocated between base rates and fuel, which ~~if approved would result~~results in a reduction to fuel revenue of $13 million.

In May 2024, Virginia Power filed its annual fuel factor with the Virginia Commission to recover an estimated $2.2 billion in Virginia jurisdictional projected fuel expenses for the rate year beginning July 1, 2024 and to return an estimated $266 million net over-recovered balance through June 30, 2024. Virginia Power’s proposed fuel rate represents a fuel revenue decrease of $636 million when applied to projected kilowatt-hour sales for the rate year beginning July 1, 2024. This matter is pending.

~~GTSA Filing~~

In March 2023, Virginia Power filed a petition with the Virginia Commission for approval of Phase III, covering 2024 through 2026, of its plan for electric distribution grid transformation projects as authorized by the GTSA. The plan includes 14 ~~projects covering~~ ~~six~~ components (i) AMI; (ii) customer information platform; (iii) grid improvement projects; (iv) physical and cyber security; (v) telecommunications infrastructure and (vi) customer education. For Phase III, the total proposed capital investment is $~~1.1~~ ~~billion and the proposed operations and maintenance investment is $~~71 ~~million. This matter is pending.~~

Renewable Generation Projects

In October ~~2022,~~2023, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct or acquire and operate ~~eight~~four utility-scale projects totaling approximately ~~474~~329 MW of solar generation ~~and~~ 16 ~~MW of energy storage~~ as part of its efforts to meet the renewable generation development ~~requirements~~targets under the VCEA. The projects, as of October ~~2022,~~2023, are expected to cost approximately $~~1.2~~850 ~~billion~~million in the aggregate, excluding financing costs, and be placed into service between 2024 ~~through 2025.~~and 2026. In ~~April 2023,~~March 2024, the Virginia Commission approved the petition.

Riders

~~Developments for~~Other than the following matters, there have been no significant developments regarding the riders associated with various Virginia Power projects ~~are as follows:~~disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

Rider Name

Application Date

Approval Date

Rate Year
Beginning

Total Revenue
Requirement
(millions)

Increase (Decrease)
Over Previous Year
(millions)

Rider CCR

February 2023

Pending

December 2023

$
194

$
(37
)
Rider CE(1)

October 2022

April 2023

May 2023

89

18

Rider GT

August 2022

April 2023

June 2023

14

(42
)
Rider R

June 2021

March 2022

April 2023

55

(4)

(4
)
Rider S

June 2021

February 2022

April 2023

191

(4)

(1
)
Rider T1(2)

May 2023

Pending

September 2023

879

173

Rider U(3)

June 2022

February 2023

April 2023

74

(21
)
Rider US-3

August 2022

April 2023

June 2023

40

(10
)
Rider US-4

August 2022

April 2023

June 2023

16

1

Rider W(5)

June 2022

February 2023

April 2023

105

(4)

(16
)

Rider Name

Application Date

Approval Date

Rate Year
Beginning

Total Revenue
Requirement
(millions)(1)

Increase (Decrease)
from Previous
(millions)

Rider CCR

March 2024

Pending

December 2024

103

(91

)

Rider CE(2)

October 2023

March 2024

May 2024

133

Rider GT

August 2023

May 2024

June 2024

145

131

Rider T1(3)

May 2024

Pending

September 2024

1,170

291

(1)

~~Associated~~In addition, Virginia Power has various riders associated with other projects with an aggregate total annual revenue requirement of approximately $120 million as of March 31, 2024.

(2)

The Virginia Commission approved four solar generation projects and ~~energy storage projects requested for approval in October 2022 and certain small-scale solar projects~~13 power purchase agreements in addition to previously approved Rider CE projects. In addition, the approved total revenue requirement includes amounts which had previously been collected under a separate rider.

~~(2)~~(3)

Consists of $~~510~~532 million for the transmission component of Virginia ~~Power's~~Power’s base rates and $~~369~~638 million for Rider T1.

~~(3)~~

~~Consists of previously approved phases of Rider U.~~

~~(4)~~

In May 2023, Virginia Power filed a notification with the Virginia Commission to combine Riders R, S and W, which have an aggregate revenue requirement of $351 million, into base rates effective July 2023 in accordance with legislation enacted in Virginia in April 2023.

~~(5)~~

In February 2023, the Virginia Commission also approved Virginia Power's requested revenue requirement for the rate year beginning April 2024. However, as Virginia Power provided notification in May 2023 to combine Rider W into base rates as discussed above, Rider W will cease to be separately collected effective July 2023.

Electric Transmission Projects

~~Developments for~~Other than the following matters, there have been no significant developments regarding the Virginia Power electric transmission projects disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

Description and Location
of Project

Application Date

Approval Date

Type of
Line

Miles of
Lines

Cost Estimate
(millions)(1)

Construct new Aspen and Golden substations,
transmission lines and related projects in Loudoun
County, Virginia

March 2024

Pending

500-
230 kV

690

Partial rebuild Fredericksburg-Aquia Harbour
transmission lines and related projects in Stafford
County and the City of Fredericksburg, Virginia

March 2024

Pending

230-
115 kV

135

Construct new Apollo-Twin Creeks transmission
lines, new substations and related projects in
Loudoun County, Virginia

March 2024

Pending

230 kV

285

Rebuild Dooms-Harrisonburg transmission lines
  and related projects in the Counties of Augusta
  and Rockingham and the Town of Grottoes,
  Virginia

April 2024

Pending

230 kV

(1)

Represents the cost estimate included in the application except as updated in the approval if applicable. In addition, Virginia Power had various other transmission projects approved or applied for ~~are as follows:~~and currently pending approval with aggregate cost estimates of approximately $

Description and Location
of Project

Application Date

Approval Date

Type of
Line

Miles of
Lines

Cost Estimate
(millions)

Partial rebuild of Bristers-Ox 115 kV line in
  Fauquier and Prince William Counties, Virginia

August 2022

April 2023

230 kV

15

$
40

Construct new Mars and Wishing Star substations,
  transmission lines and related projects in Loudoun
  County, Virginia

October 2022

April 2023

500/230 kV

4

720

Rebuild of Lines #2019 and #2007 in the City of
  Virginia Beach, Virginia

February 2023

Pending

230 kV

5

95

Install transformer at Possum Point substation,
  rebuild and construct transmission lines and
  related projects in Prince William County, Virginia

March 2023

Pending

230 kV

2

35

Partial rebuild of Line #2011 in the Cities of
  Manassas and Manassas Park, Virginia and
  Prince William and Fairfax Counties, Virginia

March 2023

Pending

230 kV

7

35

45 million and $100 million, respectively.

North Carolina Regulation

~~PSNC Rider D~~Virginia Power Base Rate Case

~~Rider D allows PSNC to recover from customers all prudently incurred gas costs~~In March 2024, Virginia Power filed its base rate case and ~~the related portion of uncollectible expenses as well as losses on negotiated gas and transportation sales. In February 2023, PSNC submitted a filing~~schedules with the North Carolina ~~Commission for~~Commission. Virginia Power proposed a non-fuel, base rate increase of $5657 million ~~gas cost decrease~~effective November 1, 2024 on an interim basis subject to refund, with any permanent rates ~~effective March 2023. The~~ordered by the North Carolina Commission ~~approved~~effective February 1, 2025. The base rate increase was proposed to recover the ~~filing~~significant investments in generation, transmission and distribution infrastructure for the benefit of North Carolina customers. Virginia Power presented an earned return of ~~March 2023~~5.01.% based upon a fully-adjusted test period, compared to its authorized 9.75% return, and proposed a 10.60% ROE. This matter is pending.

PSNC Customer Usage Tracker

PSNC utilizes a customer usage tracker, a decoupling mechanism, which allows it to adjust its base rates semi-annually for residential and commercial customers based on average per customer consumption. In March ~~2023~~2024, PSNC submitted a filing with the North Carolina Commission for a $2331 million decrease relating to the customer usage tracker. The North Carolina Commission approved the filing in March ~~2023~~2024 with rates effective April ~~2023.~~2024.

South Carolina Regulation

Electric Base Rate Case

In March 2024, DESC filed its retail electric base rate case and schedules with the South Carolina Commission. DESC proposed a non-fuel, base rate increase of $295 million, partially offset by a net decrease in storm damage and DSM components of $4 million. If approved, the overall proposed rate increase of $291 million, or 12.59%, would be effective on and after the first billing cycle of September 2024. The base rate increase was proposed to recover the significant investment in assets and operating resources required to serve an expanding customer base, maintain the safety, reliability and efficiency of DESC’s system and meet increasingly stringent reliability, security and environmental requirements for the benefit of South Carolina customers. DESC presented an earned ROE of 4.32% based upon a fully-adjusted test period. The proposed rates would provide for an earned ROE of 10.60% compared to the currently authorized ROE of 9.50%. This matter is pending.

Cost of Fuel

DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February 2024, DESC filed with the South Carolina Commission a proposal to decrease the total fuel cost component of retail electric rates. DESC’s proposed adjustment is designed to recover DESC’s current base fuel costs, including its existing under-collected balance, over the 12-month period beginning with the first billing cycle of May 2024. In addition, DESC proposed an increase to its variable environmental and avoided capacity cost component. The net effect is a proposed annual decrease of $315 million. In March 2024, DESC, the South Carolina Office of Regulatory Staff and another party of record filed a settlement agreement with the South Carolina Commission for approval to make certain adjustments to the February 2024 filing that would result in a net annual decrease of $316 million. In April 2024, the South Carolina Commission voted to approve the settlement agreement, with rates effective May 2024.

DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January ~~2023,~~2024, DESC filed an application with the South Carolina Commission seeking approval to recover $4647 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. DESC requested that rates be effective with the first billing cycle of May ~~2023.~~2024. In April ~~2023,~~2024, the South Carolina Commission approved the request, effective with the first billing cycle of May ~~2023.~~

~~Cost of Fuel~~

DESC's retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February 2023, DESC filed with the South Carolina Commission a proposal to increase the total fuel cost component of retail electric rates. DESC's proposed adjustment is designed to recover DESC's current base fuel costs, including its existing under-collected balance, over the 12-month period beginning with the first billing cycle of May 2023, along with a requested decrease to DESC's variable environmental and avoided capacity cost component. The net effect of the proposal is an annual increase of $~~176~~ million. In March 2023, DESC, the South Carolina Office of Regulatory Staff and another party of record filed a stipulation with the South Carolina Commission for approval to reduce the base fuel cost component reflecting a subsequent decrease in current fuel prices, resulting in a net annual increase of $~~121~~ ~~million. In April 2023, the South Carolina Commission voted to approve the stipulation, with rates effective May 2023.~~2024.

Electric - Transmission Project

In March ~~2023~~2024, DESC filed an application with the South Carolina Commission requesting approval of a CPCN to construct and operate the Church Creek - Charleston Transmission Line, comprised of a 197 ~~miles of~~mile 230 kV transmission ~~lines, a substation~~line and associated facilities in ~~Jasper~~Charleston County, South Carolina with an estimated tototal project cost ~~approximately~~of $5540 million. This matter is pending.

~~Electric - Other~~

DESC utilizes a pension costs rider approved by the South Carolina Commission which is designed to allow recovery of projected pension costs, including under-collected balances or net of over-collected balances, as applicable. The rider is typically reviewed for adjustment every 12 months with any resulting increase or decrease going into effect beginning with the first billing cycle in May. In February 2023, DESC requested that the South Carolina Commission approve an adjustment to this rider to increase annual revenue by $24 ~~million. In April 2023, the South Carolina Commission approved the request.~~

~~Natural Gas Base Rate Case~~

~~In March 2023, DESC filed its natural gas base rate case and schedules with the South Carolina Commission. DESC proposed a non-fuel, base rate increase of $~~19 million effective October 2023. The base rate increase was proposed to recover significant investment in distribution infrastructure for the benefit of customers. The proposed rates would provide for an ROE of ~~10.38% compared to the currently authorized ROE of~~ ~~10.25~~%. In addition, DESC elected to continue applicability of the Natural Gas Rate Stabilization Act, which allows for the adjustment of natural gas base rates annually, to its future rates and charges. This matter is pending.

~~Ohio Regulation~~

~~PIR Program~~

~~In 2008, East Ohio began PIR, aimed at replacing approximately~~ 25~~% of its pipeline system. The Ohio Commission has approved East Ohio’s PIR program for capital investments through 2026 with~~ 3~~% increases of annual capital expenditures per year.~~

In ~~February 2023, East Ohio filed an application with the Ohio Commission requesting approval to adjust the PIR recovery. The filing reflects gross plant investment for 2022 of $225~~ ~~million, cumulative gross plant investment of $2.4~~ ~~billion and a revenue requirement of $305~~ ~~million. In April 2023, the Ohio Commission approved the request.~~

~~CEP Program~~

~~In 2011, East Ohio began CEP which enables East Ohio to defer depreciation expense, property tax expense and carrying costs at the debt rate of~~ ~~6.5~~% on capital investments not covered by its PIR program to expand, upgrade or replace its infrastructure and information technology systems as well as investments necessary to comply with the Ohio Commission or other government regulations. In April 2022, certain parties filed an appeal with the Supreme Court of Ohio appealing the Ohio Commission’s December 2020 order establishing the CEP rider, including the rate of return utilized in determining the revenue requirement. This matter is pending.

In ~~March 2023, East Ohio filed an application with the Ohio Commission requesting approval to adjust CEP cost recovery rates for 2022 costs. The filing reflects gross plant investment for 2022 of $195~~ ~~million, cumulative gross plant investment of $1.3~~ ~~billion and a revenue requirement of $151~~ ~~million. This matter is pending.~~

~~Utah Regulation~~

~~Purchased Gas~~

In ~~February 2023, Questar Gas filed an application with the Utah Commission seeking approval for a $~~92 ~~million gas cost increase with rates effective March 2023. Subsequently in February 2023, the Utah Commission approved a $164~~ ~~million gas cost increase reflecting additional undercollected gas costs incurred in January 2023.~~

Note 14. Leases

Other than the items discussed below, there have been no significant changes regarding the Companies’ leases as described in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~

2023.

Dominion Energy’s Consolidated Statements of Income include $53 million and $45 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, of rental revenue included in operating ~~revenue.~~revenue. Dominion Energy’s Consolidated Statements of Income include $13 million and $91 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, of depreciation expense included in depreciation ~~depletion~~ and amortization related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

In April 2024, Dominion Energy agreed to pay $47 million in connection with a settlement of an agreement related to the offshore wind installation vessel under development and recorded a charge of $47 million ($35 million after-tax) in the first quarter of 2024 within impairments and other charges in its Consolidated Statements of Income.

Note 15. Variable Interest Entities

There have been no significant changes regarding the entities the Companies consider VIEs as described in Note 16 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

Virginia Power

Virginia Power purchased shared services from DES, an affiliated VIE, of $~~113~~115 million and $98113 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of $2833 million and $2832 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, recorded in payables to affiliates.

As described in Note 18 of the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, Virginia Power formed VPFS in October 2023, a wholly-owned special purpose subsidiary which is considered to be a VIE, for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of senior secured deferred fuel cost bonds. Virginia Power’s Consolidated Balance Sheets at March 31, 2024 included balances for VPFS in regulatory assets-current ($100 million), other current assets ($6 million), regulatory assets-noncurrent ($1.2 billion), securities due within one year ($65 million), accrued interest, payroll and taxes ($8 million) and securitization bonds ($1.2 billion).

Note 16. Significant Financing Transactions

Credit Facilities and Short-term Debt

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties. Other than the items discussed below, there have been no significant changes regarding the Companies’ credit facilities and short-term debt as described in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

Dominion Energy

Dominion Energy’s short-term financing is supported by its $6.0 billion joint revolving credit facility that provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives.

At March 31, ~~2023,~~2024, Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility, were as follows:

Facility
Limit

Outstanding
Commercial
Paper

Outstanding
Letters of
Credit

Facility
Capacity
Available

(millions)

Joint revolving credit facility(1)

$
6,000

$
3,157

$
154

$
2,689


	Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available
(millions)
Joint revolving credit facility(1)	$	6,000	$	3,164	$	34	$	2,802

(1)

This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $2.0 billion of letters of credit.

DESC and Questar Gas’ short-term financings are supported through access as co-borrowers to the joint revolving credit facility discussed above with the Companies. At March 31, ~~2023,~~2024, the sub-limits for DESC and Questar Gas were $500 million and $250 million, respectively.

In ~~March 2023, FERC granted DESC authority through March 2025 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $2.2~~ ~~billion outstanding with maturity dates of one year or less. In addition, in March 2023, FERC granted GENCO authority through March 2025 to issue short-term indebtedness not to exceed $200~~ ~~million outstanding with maturity dates of one year or less.~~

In addition to the credit facility mentioned above and Virginia ~~Power's~~Power’s letter of credit facilities mentioned below, Dominion Energy also has a credit facility which allows Dominion Energy to issue up to approximately $30 million in letters of credit and will mature in June 2024. At ~~both March~~December 31, 2023, ~~and December 31, 2022,~~ Dominion Energy had $25 million in letters of credit outstanding under this facility. There were no such balances outstanding as of March 31, 2024.

In March 2023, Dominion Energy entered into an agreement with a financial institution which it expects to allow it to issue up to $100 million in letters of credit. At March 31, 2024 and December 31, 2023, $no58 million and $54 million, respectively, in letters of credit were issued and outstanding ~~associated with this agreement. In April 2023, Dominion Energy issued $~~58 ~~million in letters of credit associated with~~under this agreement.

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM as disclosed in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy’s Consolidated Balance Sheets include $~~389~~462 million and $~~347~~409 million, respectively, with respect to such notes presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

In ~~January 2023,~~ March 2024, Dominion Energy ~~entered into a~~repaid the full $2.5 billion outstanding under its $2.5 billion 364-day term loan facility ~~which bears interest at a variable rate and will~~entered into in January 2023 as amended in January 2024, using after-tax proceeds received in connection with the East Ohio Transaction. The debt was scheduled to mature in ~~January 2024~~ ~~with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes. Concurrently,~~July 2024. At December 31, 2023, Dominion ~~Energy borrowed an initial~~Energy’s Consolidated Balance Sheet included $~~1.0~~2.5 billion with ~~the proceeds used~~respect to ~~repay~~such facility presented within securities due within one year.

~~long-term debt.~~ In ~~February and~~ March ~~2023,~~2024, Dominion Energy repaid $1.8 billion of its $2.25 billion 364-day term loan facility entered into in October 2023, using after-tax proceeds received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested and received a $500 million increase to the amount of the facility and concurrently borrowed $500 million ~~and $1.0~~ ~~billion, respectively,~~ with the proceeds used for general corporate ~~purposes~~purposes. The debt is scheduled to mature in October 2024. The agreement contains certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the PSNC and Questar Gas Transactions be applied to ~~repay long-term debt.~~any outstanding borrowings under this facility. At March 31, 2024 and December 31, 2023, Dominion Energy’s Consolidated Balance Sheet includes $976 million and $2.25 billion, respectively, with respect to such facility presented within securities due within one year. The maximum allowed total debt to total capital ratio under ~~the~~this facility is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

Virginia Power

Virginia Power’s short-term financing is supported through its access as co-borrower to Dominion Energy’s $6.0 billion joint revolving credit facility. The credit facility can be used for working capital, as support for the combined commercial paper programs of the borrowers under the credit facility and for other general corporate purposes.

At March 31, ~~2023,~~2024, Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy, Questar Gas and DESC was as follows:

Facility
Limit(1)

Outstanding
Commercial
Paper

Outstanding
Letters of
Credit

(millions)

Joint revolving credit facility(1)

$
6,000

$
1,010

$
90


	Facility Limit(1)		Outstanding Commercial Paper		Outstanding Letters of Credit
(millions)
Joint revolving credit facility(1)	$	6,000	$	—	$	10

(1)

The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy, Questar Gas and DESC. The sub-limit for Virginia Power is set pursuant to the terms of the facility but can be changed at the option of the borrowers multiple times per year. At March 31, ~~2023,~~2024, the sub-limit for Virginia Power was $1.75 billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $2.0 billion (or the sub-limit, whichever is less) of letters of credit.

In January 2023, Virginia Power entered into a letter of credit facility which ~~allows~~allowed Virginia Power to issue up to $125 million in letters of credit and ~~matures~~was scheduled to mature in January 2026. At ~~March~~December 31, 2023, less than $1 million in letters of credit were issued and outstanding under this facility with no amounts drawn under the letters of credit. As of March 31, 2024, the credit facility had been terminated.

In March 2023, Virginia Power entered into an agreement with a financial institution, which it expects to allow it to issue up to $~~125~~200 million in letters of credit. At March 31, 2024 and December 31, 2023, $no119 million and $124 million, respectively, in letters of credit were issued and outstanding ~~associated with~~under this agreement. ~~In April 2023, Virginia Power issued $~~80 ~~million in letters of credit associated with this agreement.~~

Long-term Debt

~~Unless otherwise noted,~~There have been no significant changes regarding the ~~proceeds of~~Companies’ long-term debt ~~issuances were used for general corporate purposes and/or to repay short-term debt.~~

~~In March 2023, Dominion Energy borrowed $450~~ ~~million under its Sustainability Revolving Credit Agreement, which,~~ as described in Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022, matures in~~ 2023.

Dominion Energy recognized a charge of $~~2024~~10 ~~and bears interest at a variable rate. The proceeds from these borrowings were used for general corporate purposes. At~~million during the three months ended March 31, ~~2023 and December 31, 2022, Dominion Energy’s~~2024 within interest expense in its Consolidated ~~Balance Sheets include $900~~ ~~million and $450~~ ~~million, respectively,~~Statements of Income in connection with ~~respect to this facility. In April 2023, Dominion Energy repaid $450~~ ~~million borrowed for general corporate purposes.~~

~~In March 2023, Virginia Power issued $750~~ ~~million~~the early redemption of ~~5.00~~%Eagle Solar’s secured senior notes ~~and $750~~ ~~million of~~ ~~5.45% senior notes that mature~~ in ~~2033~~ ~~and~~ ~~2053, respectively.~~

~~Derivative Restructuring~~

~~In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900~~ million, extending the mandatory termination dates, as discussed in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. In March 2023, Virginia Power settled the remaining outstanding interest rate swaps which would have otherwise matured in ~~December 2023, resulting in a $448~~ ~~million reduction in securities due within one year.~~February 2024.

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy had issued and outstanding 1.8 million shares of preferred stock, 0.8 million and 1.0 million of which were designated as the Series B Preferred Stock and the Series C Preferred Stock, respectively.

4447

~~Dominion Energy recorded dividends of $~~

7 ~~million ($4.375~~ ~~per share) for the three months ended March 31, 2022, on the Series A Preferred Stock.~~ Dominion Energy recorded dividends of $9 million ($11.625 per share) for both the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 on the Series B Preferred Stock. Dominion Energy recorded dividends of $11 million ($10.875 per share) for both the three months ended March 31, ~~2023~~2024 and ~~2022~~2023 on the Series C Preferred Stock.

There have been no significant changes to Dominion Energy’s Series B Preferred Stock and Series C Preferred Stock as described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, $43 million from the issuance of 1 million shares of common stock for the three months ended March 31, 2023 and $4531 million from the issuance of less than 1one million shares of common stock for the three months ended March 31, ~~2022,~~2024, through various programs including Dominion Energy Direct® and employee savings plans as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~

~~At-the-Market Program~~

2023. In August ~~2020,~~2023, Dominion Energy ~~entered into sales agency agreements to effect sales under an at-the-market program as discussed~~began purchasing its common stock on the open market for these direct stock purchase plans and, in ~~Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December 31, 2022. Dominion Energy did not issue any~~March 2024, began issuing new shares ~~or enter into any forward sale agreements under this program during the three months ended March 31, 2023.~~of common stock.

Repurchase of Common Stock

In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock, ~~in addition to the~~with $~~3.0~~0.9 billion ~~repurchase program authorized in July 2020 and completed in December 2020~~available as ~~discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December~~of March 31, ~~2022.~~2024.

Dominion Energy did not repurchase any shares of common stock during ~~the~~ three months ended March 31, ~~2023,~~2024, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which do not count against its stock repurchase authorization.

Note 17. Commitments and Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in legal proceedings before various courts and are periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions, or involve significant factual issues that need to be resolved, such that it is not possible for the Companies to estimate a range of possible loss. For such matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that the Companies are able to estimate a range of possible loss. For legal proceedings and governmental examinations that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. The Companies maintain various insurance programs, including general liability insurance coverage which provides coverage for personal injury or wrongful death cases. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Companies’ maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the Companies’ financial position, liquidity or results of operations.

Environmental Matters

The Companies are subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations.

Air

The CAA, as amended, is a comprehensive program utilizing a broad range of regulatory tools to protect and preserve the nation’s air quality. At a minimum, states are required to establish regulatory programs to meet applicable requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements.

Ozone Standards

The EPA published final non-attainment designations for the October 2015 ozone standards in June 2018 with states required to develop plans to address the new standard. Certain states in which the Companies operate have developed plans, and had such plans approved or partially approved by the EPA, which are not expected to have a material impact on the Companies’ results of operations or cash flows. In March 2023, the EPA issued a final rule specifying an interstate federal implementation plan to comply with certain aspects of planning for the 2015 ozone standards which ~~will be~~is applicable ~~60 days after publication~~ in ~~the Federal Register~~August 2023 for certain states, including Virginia. The interstate federal implementation plan imposes tighter NOX emissions limits during the ozone season and includes provisions for the use of allowances to cover such emissions. Until implementation plans for the 2015 ozone standards are fully developed and approved for all states in which the Companies operate, the Companies are unable to predict whether or to what extent the new rules will ultimately require additional controls. The expenditures required to implement additional controls could have a material impact on the Companies’ results of operations, financial condition and/or cash flows.

ACE Rule

In July 2019, the EPA published the final rule informally referred to as the ACE Rule, as a replacement for the Clean Power Plan. The ACE Rule regulated GHG emissions from existing coal-fired power plants pursuant to Section 111(d) of the CAA and required states to develop plans by July 2022 establishing unit-specific performance standards for existing coal-fired power plants. In January 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the ACE Rule and remanded it to the EPA. This decision would take effect upon issuance of the court’s mandate. In March 2021, the court issued a partial mandate vacating and remanding all parts of the ACE Rule except for the portion of the ACE Rule that repealed the Clean Power Plan. In October 2021, the U.S. Supreme Court agreed to hear a challenge of the U.S. Court of Appeals for the D.C. Circuit’s decision on the ACE Rule. In June 2022, the U.S. Supreme Court reversed the D.C. Circuit’s decision on the ACE Rule and remanded the case back to the D.C. Circuit. In May 2023, the EPA proposed to repeal the ACE Rule as part of a package of proposed rules addressing CO2 emissions from new and existing fossil fuel-fired electric generating units. Until the ~~case is resolved by the D.C. Circuit and/or the~~ EPA ~~issues new~~takes final action on this proposed rulemaking, the Companies cannot predict an impact to its operations, financial condition and/or cash flows.

Carbon Regulations

In August 2016, the EPA issued a draft rule proposing to reaffirm that a source’s obligation to obtain a PSD or Title V permit for GHGs is triggered only if such permitting requirements are first triggered by non-GHG, or conventional, pollutants that are regulated by the New Source Review program, and exceed a significant emissions rate of 75,000 tons per year of CO2 equivalent emissions. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.

In December 2018, the EPA proposed revised Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources. The proposed rule would amend the previous determination that the best system of emission reduction for newly constructed coal-fired steam generating units is no longer partial carbon capture and storage. Instead, the proposed revised best system of emission reduction for this source category is the most efficient demonstrated steam cycle (e.g., supercritical steam conditions for large units and subcritical steam conditions for small units) in combination with best operating practices. The proposed revision to the performance standards for coal-fired steam generating units remains pending. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.

Water

The CWA, as amended, is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms. The Companies must comply with applicable aspects of the CWA programs at their operating facilities.

Regulation 316(b)

In October 2014, the final regulations under Section 316(b) of the CWA that govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold became effective. The rule establishes a national standard for impingement based on seven compliance options, but forgoes the creation of a single technology standard for entrainment. Instead, the EPA has delegated entrainment technology decisions to state regulators. State

regulators are to make case-by-case entrainment technology determinations after an examination of five mandatory facility-specific factors, including a social cost-benefit test, and six optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two MGD, with a heightened entrainment analysis for those facilities over 125 MGD. Dominion Energy and Virginia Power currently have 15 and nine facilities, respectively, that are subject to the final regulations. Dominion Energy is

also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to eight hydroelectric facilities, including three Virginia Power facilities. The Companies anticipate that they may have to install impingement control technologies at certain of these stations that have once-through cooling systems. The Companies are currently evaluating the need or potential for entrainment controls under the final rule as these decisions will be made on a case-by-case basis after a thorough review of detailed biological, technological, and cost benefit studies. DESC is conducting studies and implementing plans as required by the rule to determine appropriate intake structure modifications at certain facilities to ensure compliance with this rule. While the impacts of this rule could be material to the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Effluent Limitations Guidelines

In September 2015, the EPA released a final rule to revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category. The final rule established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required to convert from wet to dry or closed cycle coal ash management, improve existing wastewater treatment systems and/or install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted two separate petitions for reconsideration of the Effluent Limitations Guidelines final rule and stayed future compliance dates in the rule. Also in April 2017, the U.S. Court of Appeals for the Fifth Circuit granted the EPA’s request for a stay of the pending consolidated litigation challenging the rule while the EPA addresses the petitions for reconsideration. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the Effluent Limitations Guidelines final rule from November 2018 to November 2020; however, the latest date for compliance for these regulations was December 2023. In October 2020, the EPA released the final rule that extends the latest dates for compliance. Individual facilities’ compliance dates will vary based on circumstances and the determination by state regulators and may range from 2021 to 2028. While the impacts of this rule could be material to the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Waste Management and Remediation

The operations of the Companies are subject to a variety of state and federal laws and regulations governing the management and disposal of solid and hazardous waste, and release of hazardous substances associated with current and/or historical operations. The CERCLA, as amended, and similar state laws, may impose joint, several and strict liability for cleanup on potentially responsible parties who owned, operated or arranged for disposal at facilities affected by a release of hazardous substances. In addition, many states have created programs to incentivize voluntary remediation of sites where historical releases of hazardous substances are identified and property owners or responsible parties decide to initiate cleanups.

From time to time, the Companies may be identified as a potentially responsible party in connection with the alleged release of hazardous substances or wastes at a site. Under applicable federal and state laws, the Companies could be responsible for costs associated with the investigation or remediation of impacted sites, or subject to contribution claims by other responsible parties for their costs incurred at such sites. The Companies also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under the Companies’ insurance policies, rate recovery mechanisms, or both. Except as described below, the Companies do not believe these matters will have a material effect on results of operations, financial condition and/or cash flows.

Dominion Energy has determined that it is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. At 1311 sites associated with Dominion Energy, remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy ~~commenced remediation activities at~~ ~~one~~ ~~site in the second quarter of 2022. In addition, Dominion Energy~~ has proposed remediation plans for one site at Virginia Power and expects to commence remediation activities in ~~2023~~2024 depending on receipt of final permits and approvals. At ~~both~~ March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy had $4731 million and $32 million, respectively, of reserves recorded. At both March 31, 2024 and December 31, 2023, Virginia Power had $25 million of reserves recorded. Dominion Energy is associated with 12three additional sites, including two associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, the Companies are unable to make an estimate of the potential financial statement impacts.

Other Legal Matters

The Companies are defendants in a number of lawsuits and claims involving unrelated incidents of property damage and personal injury. Due to the uncertainty surrounding these matters, the Companies are unable to make an estimate of the potential financial statement impacts; however, they could have a material impact on results of operations, financial condition and/or cash flows.

SCANA Legal Proceedings

The following describes certain legal proceedings involving Dominion Energy, SCANA or DESC relating primarily to events occurring before closing of the SCANA Combination. ~~In addition, certain legal matters which have been resolved are discussed in Note 23~~

Matters Fully Resolved Prior to 2024 Impacting the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. No reference to, or disclosure of, any proceeding, item or matter described below shall be construed as an admission or indication that such proceeding, item or matter is material. For certain of these matters, and unless otherwise noted therein, Dominion Energy is unable to estimate a reasonable range of possible loss and the related financial statement impacts, but for any such matter there could be a material impact to its results of operations, financial condition and/or cash flows. For the matters for which Dominion Energy is able to reasonably estimate a probable loss, Dominion Energy’s Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 include reserves of $88~~million and $~~94 ~~million, respectively, included in other current liabilities, and insurance receivables of $~~72 ~~million and $~~68 ~~million, respectively, included within other receivables. These balances at March 31, 2023 and December 31, 2022 include $~~72 ~~million and $~~68 million, respectively, of offsetting reserves and insurance receivables related to personal injury or wrongful death cases which are currently pending. During both the three months ended March 31, 2023 and 2022, no charges were included in Dominion Energy’s Consolidated Statements of Income.

Governmental Proceedings and Investigations

In June 2018, DESC received a notice of proposed assessment of approximately $410 million, excluding interest, from the SCDOR following its audit of DESC’s sales and use tax returns for the periods September 1, 2008 through December 31, 2017. The proposed assessment, which includes 100% of the NND Project, is based on the SCDOR’s position that DESC’s sales and use tax exemption for the NND Project does not apply because the facility will not become operational. In December 2020, the parties reached an agreement in principle in the amount of $165 million to resolve this matter. In June 2021, the parties executed a settlement agreement which allows DESC to fund the settlement amount through a combination of cash, shares of Dominion Energy common stock or real estate with an initial payment of at least $43 million in shares of Dominion Energy common stock. In August 2021, Dominion Energy issued 0.6 million shares of its common stock to satisfy DESC’s obligation for the initial payment under the settlement agreement. In May 2022, Dominion Energy issued an additional 0.9 million shares of its common stock to partially satisfy DESC’s remaining obligation under the settlement agreement. In June 2022, DESC requested approval from the South Carolina Commission to transfer certain real estate with a total settlement value of $51 million to satisfy its remaining obligation under the settlement agreement. In July 2022, the South Carolina Commission voted to approve the request and issued its final order in August 2022. In September 2022, DESC transferred certain non-utility property with a fair value of $28 million to the SCDOR under the settlement agreement. In December 2022, DESC transferred additional utility property with a fair value of $3 million to the SCDOR. In October 2022, DESC filed for approval to transfer the remaining real estate with FERC which was received in November 2022. In March 2023, DESC transferred utility property with a fair value of $10 million to the SCDOR resulting in a gain of $9 million ($7 million after-tax), recorded in losses (gains) on sales of assets in Dominion Energy’s Consolidated Statements of Income for the three months ended March 31, 2023. ~~The~~In June 2023, DESC transferred the remaining utility property ~~transfer is expected to be completed by early 2024 and result in~~with a ~~gain~~fair value of ~~approximately~~ $1011 million ~~upon completion.~~to the SCDOR. In July 2023, DESC made a less than $1 million cash payment to the SCDOR to fully satisfy its remaining obligation, including applicable interest, under the settlement agreement.

Nuclear Operations

Nuclear Insurance

~~There~~Other than the items discussed below, there have been no significant changes regarding the Companies’ nuclear insurance as described in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

During the first quarter of 2024, the total liability protection per nuclear incident available to all participants in the Secondary Financial Protection Program increased from $16.2 billion to $16.3 billion. This increase does not impact Dominion Energy’s responsibility per active unit under the Price-Anderson Amendments Act of 1988. Additionally, the Companies increased the amount of coverage purchased from commercial insurance pools for Millstone, Summer, Surry and North Anna from $450 million to $500 million with the remainder provided through the mandatory industry retrospective rating plan.

Spent Nuclear Fuel

As discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, the Companies entered into contracts with the DOE for the disposal of spent nuclear fuel under provisions of the Nuclear Waste Policy Act of 1982.

Guarantees, Surety Bonds and Letters of Credit

~~At March 31, 2023, Dominion Energy had issued~~ ~~four~~ ~~guarantees related to Cove Point, an equity method investment, in support of terminal services, transportation and construction.~~ ~~Two~~ ~~of the Cove Point guarantees have a cumulative maximum exposure of $1.9~~ ~~billion while the other~~ ~~two~~ ~~guarantees have~~ no ~~maximum limit. No amounts related to these guarantees have been recorded.~~

~~In addition, at March 31, 2023, Dominion Energy had issued an additional $~~20 ~~million of guarantees, primarily to support third parties. No amounts related to these guarantees have been recorded.~~

Dominion Energy ~~also~~ enters into guarantee arrangements on behalf of its consolidated subsidiaries, primarily to facilitate their commercial transactions with third parties. If any of these subsidiaries fail to perform or pay under the contracts and the counterparties seek performance or payment, Dominion Energy would be obligated to satisfy such obligation. To the extent that a liability subject to a guarantee has been incurred by one of Dominion Energy’s consolidated subsidiaries, that liability is included in the Consolidated Financial Statements. Dominion Energy is not required to recognize liabilities for guarantees issued on behalf of its subsidiaries unless it becomes probable that it will have to perform under the guarantees. Terms of the guarantees typically end once obligations have been paid. Dominion Energy currently believes it is unlikely that it would be required to perform or otherwise incur any losses associated with guarantees of its subsidiaries’ obligations.

At March 31, ~~2023,~~2024, Dominion Energy had issued the following subsidiary guarantees:

Maximum
Exposure

(millions)

Commodity transactions(1)

$
2,710

Nuclear obligations(2)

245

Solar(3)

214

Other(4)

1,269

Total(5)(6)

$
4,438


	Maximum Exposure
(millions)
Commodity transactions(1)	$	2,842
Nuclear obligations(2)		245
Solar(3)		215
Other(4)		1,094
Total(5)(6)	$	4,396

(1)

Guarantees related to commodity commitments of certain subsidiaries. These guarantees were provided to counterparties in order to facilitate physical and financial transaction related commodities and services.

(2)

Guarantees primarily related to certain DGI subsidiaries regarding all aspects of running a nuclear facility.

(3)

Includes guarantees to facilitate the development of solar projects.

(4)

Guarantees related to other miscellaneous contractual obligations such as leases, environmental obligations, construction projects and insurance programs. Also includes guarantees entered into by Dominion Energy RNG Holdings II, Inc. on behalf of a subsidiary to facilitate construction of renewable natural gas facilities. Due to the uncertainty of workers’ compensation claims, the parental guarantee has no stated limit.

(5)

Excludes Dominion Energy’s guarantee of an offshore wind installation vessel discussed in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

(6)

In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia. The lessor provided equity and obtained financing commitments from debt investors, totaling $365 million, which funded total project costs. The project became substantially complete in August 2019 at which point the facility was available for Dominion Energy’s use and the five-year lease term commenced. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional five years, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the project costs or, (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the project costs, Dominion Energy may be required to make a payment to the lessor, up to 87% of project costs, for the difference between the project costs and sale proceeds. In December 2023, the agreement was amended to permit more than one renewal term and reduce the required term for a renewal from five years to at least one year. At March 31, ~~2023,~~2024, no amounts have been recorded related to this guarantee.

In addition, Dominion Energy had issued an additional $20 million of guarantees at March 31, 2024, primarily to support third parties. No amounts related to these guarantees have been recorded.

Dominion Energy also had issued four guarantees as of March 31, 2024 related to Cove Point, previously an equity method investment, in support of terminal services, transportation and construction. Two of the Cove Point guarantees have a cumulative maximum exposure of $1.9 billion while the other two guarantees have no maximum limit. No amounts related to these guarantees have been recorded.

Additionally, at March 31, ~~2023,~~2024, Dominion Energy had purchased $~~268~~316 million of surety bonds, including $~~190~~213 million at Virginia Power and $33 million related to entities held for sale, and authorized the issuance of letters of credit by financial institutions of $~~154~~34 million to facilitate commercial transactions by its subsidiaries with third parties. Under the terms of surety bonds, the Companies are obligated to indemnify the respective surety bond company for any amounts paid.

Note 18. Credit Risk

The Companies’ accounting policies for credit risk are discussed in Note 24 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

At March 31, ~~2023,~~2024, Dominion Energy’s credit exposure totaled $~~217~~274 million, primarily related to price risk management activities. Of this amount, investment grade counterparties, including those internally rated, represented 8986%. No single counterparty, whether investment grade or non-investment grade, exceeded $4880 million of exposure. At March 31, ~~2023,~~2024, Virginia Power’s exposure related to wholesale customers totaled $34107 million. Of this amount, investment grade counterparties, including those internally rated, represented 5473%. No single counterparty, whether investment grade or non-investment grade, exceeded $1323 million of exposure.

4952

Credit-Related Contingent Provisions

Certain of Dominion Energy and Virginia ~~Power's~~Power’s derivative instruments contain credit-related contingent provisions. These provisions require Dominion Energy and Virginia Power to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered, Dominion Energy and Virginia Power would have been required to post additional collateral to its counterparties of $~~106~~32 million and $4524 million, respectively, as of March 31, ~~2023,~~2024, and $~~140~~28 million and $2814 million, respectively, as of December 31, ~~2022.~~2023. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. Dominion Energy ~~had posted collateral of $~~1 ~~million at March 31, 2023, and both Dominion Energy~~ and Virginia Power had ~~posted $~~72no ~~million~~posted collateral at March 31, 2024 or December 31, ~~2022,~~2023 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. ~~Virginia Power had~~ no ~~such collateral posted at March 31, 2023.~~ In addition, Dominion Energy and Virginia Power had both posted letters of credit as collateral with counterparties covering less than $6 ~~million and $~~201 million of fair value of derivative instruments in a liability position at ~~March 31, 2023 and~~ December 31, ~~2022, respectively.~~2023. The aggregate fair value of all derivative instruments with credit related contingent provisions that are in a liability position and not fully collateralized with cash for Dominion Energy and Virginia Power was $~~107~~32 million and $4524 million, respectively, as of March 31, ~~2023~~2024 and $~~212~~28 million and $9914 million, respectively, as of December 31, ~~2022,~~2023, which does not include the impact of any offsetting asset positions.

See Note 9 for additional information about derivative instruments.

Note 19. Related-Party Transactions

Dominion Energy’s transactions with equity method investments are described in Note 10. Virginia Power engages in related-party transactions primarily with other Dominion Energy subsidiaries (affiliates). Virginia Power’s receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power is included in Dominion ~~Energy's~~Energy’s consolidated federal income tax return and, where applicable, combined income tax returns for Dominion Energy are filed in various states. A discussion of Virginia ~~Power's~~Power’s significant related-party transactions follows.

Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of natural gas. At March 31, 2024, Virginia Power’s derivative assets and liabilities with affiliates were $4 million and $59 million, respectively. At December 31, 2023, Virginia Power’s derivative assets and liabilities with affiliates were $51 million and $82 ~~million, respectively. At December 31, 2022, Virginia Power’s derivative assets and liabilities with affiliates were $~~33 ~~million and $~~3179 million, respectively. See Note 9 for additional information.

Virginia Power participates in certain Dominion Energy benefit plans described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were $~~431~~468 million and $~~422~~456 million, respectively. At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Virginia ~~Power's~~Power’s amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were $~~534~~602 million and $~~518~~584 million, respectively.

DES and other affiliates provide accounting, legal, finance and certain administrative and technical services and licenses to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage.

The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Virginia Power on the basis of direct and allocated methods in accordance with Virginia Power’s services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.

Presented below are Virginia Power’s significant transactions with DES and other affiliates:

Three Months Ended March 31,
2023

2022

(millions)

Commodity purchases from affiliates

$
214

$
293

Services provided by affiliates(1)

147

130

Services provided to affiliates

4

4


Three Months Ended March 31,	2024		2023
(millions)
Commodity purchases from affiliates	$	198	$	214
Services provided by affiliates(1)		155		147
Services provided to affiliates		4		4

(1)

Includes capitalized expenditures of $5453 million and $3954 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were $~~1.2~~1 ~~billion~~million and $~~2.0~~500 ~~billion~~million in short-term demand note borrowings from Dominion Energy as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively. Virginia Power had no outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. Interest charges related to Virginia Power’s borrowings from Dominion Energy were $24 ~~million and~~ less than $1 million and $24 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

There were no issuances of Virginia Power’s common stock to Dominion Energy for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

In ~~January~~ 2023, Virginia Power entered into a lease contract with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel currently under development with commencement of the 20-month lease term in August 2025 at a total cost of approximately $240 million plus ancillary services.

Note 20. Employee Benefit Plans

Net Periodic Benefit (Credit) Cost

The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of ~~Income.~~Income, except for $3 million and $4 million for the three months ended March 31, 2024 and 2023, respectively, presented in discontinued operations. The non-service cost components of net periodic benefit (credit) cost are reflected in other income (expense) in Dominion Energy’s Consolidated Statements of ~~Income.~~Income, except for $14 million and $(11) million for the three months ended March 31, 2024 and 2023, respectively, presented in discontinued operations. The components of Dominion Energy’s provision for net periodic benefit cost (credit) are as follows:


	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
Three Months Ended March 31,	2023			2022			2023			2022
Period Ended March 31,													2024			2023			2024			2023
(millions)
Service cost	$	24		$	36		$	3		$	6		$	22		$	24		$	3		$	3
Interest cost		111			83			15			11			109			111			14			15
Expected return on plan assets		(216	)		(223	)		(38	)		(48	)		(204	)		(216	)		(42	)		(38	)
Amortization of prior service cost (credit)		—			—			(9	)		(10	)		—			—			(9	)		(9	)
Amortization of net actuarial (gain) loss		—			40			(1	)		—			6			—			(2	)		(1	)
Plan amendment														22			—			—			—
Net periodic benefit (credit) cost	$	(81	)	$	(64	)	$	(30	)	$	(41	)	$	(45	)	$	(81	)	$	(36	)	$	(30	)

Pension and Other Postretirement Benefit Plan Remeasurement

In the first quarter of 2024, Dominion Energy remeasured its pension and other postretirement benefit plans as a result of the close of the East Ohio Transaction. The remeasurement and transfer to Enbridge of pension plan assets and liabilities resulted in a decrease in the pension benefit obligation of $419 million, inclusive of $195 million transferred upon closing, and a decrease in the fair value of the pension plan assets of $555 million, inclusive of $531 million transferred upon closing. In addition, the remeasurement and transfer to Enbridge of other postretirement benefit plan assets and liabilities resulted in a decrease in the accumulated postretirement benefit obligation of $38 million, inclusive of $22 million transferred upon closing, and a decrease in the fair value of the other postretirement benefit plan assets of $19 million, inclusive of $36 million transferred upon closing. The impact of the remeasurement and transfer of pension and other postretirement benefit plan assets and liabilities on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The remeasurement is expected to decrease the net periodic pension benefit credit by approximately $11 million and increase the net periodic other postretirement benefit credit by approximately $1 million for the year ending December 31, 2024, excluding the impact of a one-time plan amendment. The discount rate used for the remeasurement was 5.62% for the pension plans and 5.61%-5.62% for the other postretirement benefit plans. The net actuarial loss (gain) and prior service cost (credit) related to the transferred pension and other postretirement plan assets and liabilities included in the East Ohio Transaction loss on sale was $147 million for pension and $(9) million for other postretirement benefits.

All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2023.

Employer Contributions

During the three months ended March 31, ~~2023,~~2024, Dominion Energy made no contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy is no~~t required~~expects to make ~~any~~$46 million of minimum required contributions to its qualified defined benefit pension plans orin 2024. In April 2024, Dominion Energy made $7 million of contributions to its qualified defined benefit pension plans. Dominion Energy is not required to make any contributions to its VEBAs associated with its other postretirement plans in ~~2023.~~2024. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities.

Other Employee Matters

In March 2024, Dominion Energy recorded a charge of $23 million ($17 million after-tax) within discontinued operations attributable to a contribution to its defined contribution employee savings plan associated with the closing of the East Ohio Transaction. Additionally, Dominion Energy recorded a charge of $13 million ($10 million after-tax) in other operations and maintenance expense related to a severance accrual for certain employees in connection with the business review.

Note 21. Operating Segments

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:


Primary Operating Segment	Description of Operations	Dominion Energy	Virginia Power
Dominion Energy Virginia	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Regulated electric generation fleet(1)	X	X
~~Gas Distribution~~	~~Regulated gas distribution and storage(2)~~	X
Dominion Energy South Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted ~~Assets~~Energy(2)	Nonregulated electric generation fleet~~(3)~~	X
	~~Noncontrolling interest in Cove Point~~	X

(1)

Includes Virginia Power’s non-jurisdictional solar generation operations.

(2)

Includes renewable natural gas ~~operations as well as Wexpro’s natural gas development and production operations.~~

~~(3)~~

~~Includes solar generation facility development~~ operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion ~~Privatization and its noncontrolling interest in Wrangler (through March 2022).~~Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, ~~as well as~~including the net impact of the ~~gas transmission~~operations reflected as discontinued operations, which includes the entities included in the East Ohio (through March 2024), PSNC and ~~storage~~Questar Gas Transactions, a noncontrolling interest in Cove Point (through September 2023), solar generation facility development operations ~~including its~~and a noncontrolling interest in Atlantic Coast Pipeline ~~reported~~ as ~~discontinued operations which are~~ discussed in Notes 3 and 10 as well as Notes 3 and 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

In the three months ended March 31, ~~2023,~~2024, Dominion Energy reported after-tax net income of $8648 million in the Corporate and Other segment, including $~~148~~191 million of after-tax net income for specific items with $~~272~~124 million of after-tax net income attributable to its operating segments. In the three months ended March 31, ~~2022,~~2023, Dominion Energy reported after-tax net ~~expenses~~income of $~~311~~393 million in the Corporate and Other segment, including $~~289~~466 million of after-tax net ~~expenses~~income for specific items with $~~269~~304 million of after-tax net ~~expenses~~income attributable to its operating segments.

The net income for specific items attributable to Dominion Energy’s operating segments in 2024 primarily related to the impact of the following items:

•

A $266 million ($202 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

•

Contracted Energy ($175 million after-tax); and

•

Dominion Energy Virginia ($27 million after-tax);

•

A $61 million ($47 million after-tax) loss related to economic hedging activities, attributable to Contracted Energy; and

•

A $47 million ($35 million after-tax) charge in connection with a settlement of an agreement, attributable to Contracted Energy.

The net income for specific items attributable to Dominion Energy’s operating segments in 2023 primarily related to the impact of the following items:

•

A $~~291~~332 million ($~~221~~253 million after-tax) gain related to economic hedging activities, attributable to Contracted ~~Assets;~~Energy;

•

A $123 million ($90 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

•

Contracted ~~Assets~~Energy ($77 million after-tax); and

•

Dominion Energy Virginia ($13 million after-tax); and

•

A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.

~~The net expenses for specific items attributable to Dominion Energy’s operating segments in 2022 primarily related to the impact of the following items:~~

•

~~A $125~~ ~~million ($102~~ ~~million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:~~

•

~~Contracted Assets ($~~90 ~~million after-tax); and~~

•

~~Dominion Energy Virginia ($~~12 ~~million after-tax);~~

•

~~A $~~94 ~~million ($~~70 ~~million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia;~~

•

~~A $~~66 ~~million ($~~47 ~~million after-tax) loss related to economic hedging activities, attributable to Contracted Assets; and~~

•

~~A $~~61 ~~million ($~~45 ~~million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.~~

The following table presents segment information pertaining to Dominion Energy’s operations:


		Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina		Contracted Assets		Corporate and Other			Adjustments & Eliminations			Consolidated Total				Dominion Energy Virginia		Dominion Energy South Carolina		Contracted Energy		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2024																				Three Months Ended March 31, 2024
Total revenue from external customers																					$	2,489	$	892	$	306	$	(55	)	$	—		$	3,632
Intersegment revenue																						—		1		2		234			(237	)		—
Total operating revenue																						2,489		893		308		179			(237	)		3,632
Net income from discontinued operations																						—		—		—		114			—			114
Net income attributable to Dominion Energy																						424		80		122		48			—			674
Three Months Ended March 31, 2023	Three Months Ended March 31, 2023																			Three Months Ended March 31, 2023
Total revenue from external customers		$	2,389		$	1,367	$	844	$	308	$	344		$	—		$	5,252			$	2,384	$	844	$	308	$	347		$	—		$	3,883
Intersegment revenue			(1	)		1		1		3		250			(254	)		—				—		1		3		232			(236	)		—
Total operating revenue			2,388			1,368		845		311		594			(254	)		5,252				2,384		845		311		579			(236	)		3,883
Net loss from discontinued operations			—			—		—		—		(5	)		—			(5	)
Net income from discontinued operations																						—		—		—		281			—			281
Net income attributable to Dominion Energy			386			278		91		156		86			—			997				386		91		111		393			—			981
Three Months Ended March 31, 2022
Total revenue from external customers		$	2,172		$	1,229	$	798	$	245	$	(165	)	$	—		$	4,279
Intersegment revenue			(3	)		1		1		4		237			(240	)		—
Total operating revenue			2,169			1,230		799		249		72			(240	)		4,279
Net income from discontinued operations			—			—		—		—		19			—			19
Net income (loss) attributable to Dominion Energy			518			294		109		101		(311	)		—			711

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In the three months ended March 31, 2024, Virginia Power reported after-tax net income of $41 million in the Corporate and Other segment, including $39 million of after-tax net income for specific items all of which was attributable to its operating segment. In the three months ended March 31, 2023, Virginia Power reported after-tax net expenses of $31 million in the Corporate and Other segment, including $32 million of after-tax net expenses for specific items all of which was attributable to its operating segment. ~~In the three months ended March 31, 2022, Virginia Power reported after-tax~~

The net ~~expenses of $159~~ ~~million in the Corporate and Other segment, including $130~~ ~~million of after-tax net expenses~~income for specific items ~~all of which was~~ attributable to ~~its~~Virginia Power’s operating ~~segment.~~segment in 2024 primarily related to the impact of the following item:

•

A $37 million ($27 million after-tax) gain related to investments in nuclear decommissioning trust funds.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2023 primarily related to the impact of the following item:

•

A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review.

~~The net expenses for specific items attributable to Virginia Power’s operating segment in 2022 primarily related to the impact of the following items:~~

•56

~~A $~~94 ~~million ($~~70 ~~million after-tax) charge associated with storm damage and service restoration in its service territory; and~~

•

~~A $~~61 ~~million ($~~45 ~~million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review.~~

The following table presents segment information pertaining to Virginia Power’s operations:


	Dominion Energy Virginia		Corporate and Other			Consolidated Total		Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2024
Operating revenue								$	2,489	$	—		$	2,489
Net income									424		41			465
Three Months Ended March 31, 2023
Operating revenue	$	2,384	$	—		$	2,384	$	2,384	$	—		$	2,384
Net income (loss)		384		(31	)		353		386		(31	)		355
Three Months Ended March 31, 2022
Operating revenue	$	2,165	$	2		$	2,167
Net income (loss)		516		(159	)		357

5457

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A discusses Dominion Energy’s results of operations and general financial condition and Virginia Power’s results of operations. MD&A should be read in conjunction with the Companies’ Consolidated Financial Statements. Virginia Power meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

Contents of MD&A

MD&A consists of the following information:

•

Forward-Looking Statements—Dominion Energy and Virginia Power

•

Accounting Matters—Dominion Energy

•

Results of Operations—Dominion Energy and Virginia Power

•

Segment Results of Operations—Dominion Energy

•

Outlook—Dominion Energy

•

Liquidity and Capital Resources—Dominion Energy

•

Future Issues and Other Matters—Dominion Energy

Forward-Looking Statements

This report contains statements concerning the Companies’ 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 most cases, the reader can identify these forward-looking statements by such words as “path,” “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “plan,” “may,” “continue,” “target” or other similar words.

The Companies make forward-looking statements with full knowledge that risks and uncertainties exist that may cause actual results to differ materially from predicted results. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additionally, other factors may 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 and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;

•

The impact of extraordinary external events, such as the ~~current~~ pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in ~~our~~the Companies’ markets and global supply chains;

•

Federal, state and local legislative and regulatory developments, including changes in or interpretations of federal and state tax laws and regulations;

•

The direct and indirect impacts of implementing recommendations resulting from the business review ~~announced~~concluded in ~~November 2022;~~March 2024;

•

Risks of operating businesses in regulated industries that are subject to changing regulatory structures;

•

Changes to regulated electric rates collected by the Companies and regulated gas distribution, transportation and storage rates collected by Dominion Energy;

•

Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;

•

Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;

•

Risks associated with entities in which Dominion Energy shares ownership with third parties, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third party participants and difficulties in exiting these arrangements;

•

Changes in future levels of domestic and international natural gas production, supply or consumption;

•

Impacts to Dominion Energy’s noncontrolling interest in Cove Point from fluctuations in future volumes of LNG imports or exports from the U.S. and other countries worldwide or demand for, purchases of, and prices related to natural gas or LNG;

•

Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;

•

The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;

•

Risks and uncertainties that may impact the Companies’ ability to develop and construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;

•

Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;

•

Cost of environmental strategy and compliance, including those costs related to climate change;

•

Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;

•

Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;

•

Unplanned outages at facilities in which the Companies have an ownership interest;

•

The impact of operational hazards, including adverse developments with respect to pipeline and plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events;

•

Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;

•

Changes in operating, maintenance and construction costs;

•

Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as threats to cybersecurity;

•

Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;

•

Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;

•

Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;

•

Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, changes in supplies of natural gas delivered to Dominion Energy’s pipeline system, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;

•

Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;

•

Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews;

•

The expected timing and likelihood of the completion of either or both of the PSNC and Questar Gas Transactions, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals;

•

The expected timing and likelihood of the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals;

•

Adverse outcomes in litigation matters or regulatory ~~proceedings, including matters acquired in the SCANA Combination;~~proceedings;

•

Counterparty credit and performance risk;

•

Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;

•

Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;

•

Fluctuations in interest rates;

•

The effectiveness to which existing economic hedging instruments mitigate fluctuations in currency exchange rates of the Euro and Danish Krone associated with certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project;

•

Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;

•

Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;

•

Political and economic conditions, including inflation and deflation;

•

Employee workforce factors including collective bargaining agreements and labor negotiations with union employees; and

•

Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

The Companies’ forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Companies caution the reader not to place undue reliance on their forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. The Companies undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Accounting Matters

As of March 31, ~~2023,~~2024, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of estimates in long-lived asset ~~and equity method investment~~ impairment testing, held for sale classification and employee benefit plans.

Results of Operations—Dominion Energy

Presented below is a summary of Dominion Energy’s consolidated results:


	2023		2022		$ Change		2024		2023		$ Change
(millions, except EPS)
First Quarter
Net income attributable to Dominion Energy	$	997	$	711	$	286	$	674	$	981	$	(307	)
Diluted EPS		1.17		0.83		0.34		0.78		1.15		(0.37	)

Overview

First Quarter ~~2023~~2024 vs. ~~2022~~2023

Net income attributable to Dominion Energy ~~increased 40%~~decreased 31%, primarily due to the closing of the East Ohio Transaction, increased unrealized losses on economic hedging activities and the impact of 2023 Virginia legislation, partially offset by an increase in net investment earnings on nuclear decommissioning trust funds, increased unrealized gains on economic hedging activities, a decrease in storm damage and service restoration costs and the absence of a charge to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale, partially offset by a charge associated with the impairment of a corporate office building and a decrease in sales to electric utility customers attributable to weather.funds.

5760

Analysis of Consolidated Operations

Presented below are selected amounts related to Dominion Energy’s results of operations:


	First Quarter									First Quarter
	2023			2022			$ Change			2024			2023			$ Change
(millions)
Operating revenue	$	5,252		$	4,279		$	973		$	3,632		$	3,883		$	(251	)
Electric fuel and other energy-related purchases		1,022			678			344			959			1,022			(63	)
Purchased electric capacity		8			13			(5	)		12			8			4
Purchased gas		764			645			119			120			123			(3	)
Other operations and maintenance		921			1,054			(133	)		856			742			114
Depreciation, depletion and amortization		720			698			22
Depreciation and amortization											621			622			(1	)
Other taxes		275			253			22			202			191			11
Impairment of assets and other charges (benefits)		98			(10	)		108
Impairment of assets and other charges											30			98			(68	)
Losses (gains) on sales of assets		(1	)		(28	)		27			(1	)		(2	)		1
Earnings from equity method investees		80			80			—
Other income (expense)		284			46			238			435			276			159
Interest and related charges		586			174			412			574			479			95
Income tax expense		221			236			(15	)		134			176			(42	)
Net income (loss) from discontinued operations including noncontrolling interests		(5	)		19			(24	)
Net income from discontinued operations including noncontrolling interests											114			281			(167	)

An analysis of Dominion Energy’s results of operations follows:

First Quarter ~~2023~~2024 vs. ~~2022~~2023

Operating revenue ~~increased 23%~~decreased 6%, primarily reflecting:

•

A ~~$573~~$383 million net ~~increase~~decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized ~~gains~~losses on freestanding derivatives ($~~675~~351 million);

•

A ~~$480~~$102 million ~~increase~~decrease from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation; and

•

A $44 million net decrease in fuel-related revenue as a result of ~~an increase~~a decrease in commodity costs associated with sales to electric utility retail ~~customers ($316 million) and gas utility customers ($164 million);~~customers.

These decreases were partially offset by:

•

A ~~$48~~$177 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

•

A ~~$37~~$43 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season;

•

A $27 million increase in sales to electric utility retail customers associated with ~~economic and other usage factors;~~

•

~~A $21 million increase following the approved base rate case for Questar Gas;~~

•

~~A $17 million increase from gas utility capital cost riders;~~growth; and

•

A ~~$16 million increase in sales to electric utility retail customers associated with growth.~~

~~These increases were partially offset by:~~

•

~~A $117 million decrease in sales to electric utility retail customers, primarily due to a decrease in heating degree days;~~

•

~~A $66 million decrease from the sale of Hope; and~~

•

~~A $37~~$26 million net ~~decrease~~increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power.

Electric fuel and other energy-related purchases ~~increased 51%~~decreased 6%, primarily due to ~~higher~~lower commodity costs for electric utilities ($~~316~~50 million) and ~~an increase~~a decrease in the use of purchased renewable energy credits at Virginia Power ($2812 million), which are offset in operating revenue and do not impact net income.

~~Purchased gas~~

Other operations and maintenance increased ~~18%~~15%, primarily due to an increase in ~~commodity costs for gas utilities ($164 million),~~certain Virginia Power expenditures which are ~~offset in operating revenue~~primarily recovered through state- and FERC-regulated rates and do not impact net income ~~partially offset by a decrease from the sale of Hope~~ ($25 million).

~~Other operations and maintenance~~ ~~decreased 13%~~, ~~primarily due to a decrease~~an increase in storm damage and restoration costs in Virginia Power’s service territory ($~~104~~21 million), an increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation ($20 million), an increase in costs associated with the business review completed in March 2024 ($15 million) and an increase in outage costs at Virginia Power ($15 million).

Depreciation and amortization remained substantially consistent as the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in ~~certain~~amortization associated with Virginia Power ~~expenditures which are primarily recovered through~~non-fuel

5861

~~state- and FERC-regulated rates and do not impact net income~~

riders ($7135 million)~~, partially~~ were substantially offset by an increase in ~~outside services~~RGGI-related amortization ($1992 million)., which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges ~~increased $108 million, primarily due to the impairment of a corporate office building.~~

~~Gains on sales of assets~~ decreased ~~96%~~69%, primarily due to the absence of the impairment of a ~~gain on~~corporate office building ($91 million) and a benefit from the ~~contribution~~establishment of ~~certain privatization operations to Dominion Privatization.~~a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review ($17 million), partially offset by a charge in connection with a settlement of an agreement ($47 million).

Other income increased ~~$238 million,~~58%, primarily due to an increase in net investment gains ~~in 2023 compared to net investment losses in 2022~~ on nuclear decommissioning trust funds.

Interest and related charges increased ~~$412 million,~~20%, primarily due to ~~unrealized losses~~net debt issuances in 2023 ~~compared to unrealized gains in 2022 associated with freestanding derivatives~~ ($~~278 million), higher interest rates on commercial paper and long-term debt ($47~~64 million), higher interest rates on variable rate debt and cash flow interest rate swaps ($4614 million) ~~and increased~~, higher interest rates on commercial paper and long-term debt ~~borrowings~~ ($4513 million), charges incurred due to early debt repayments associated with the business review completed in March 2024 ($12 million) and premiums paid in 2024 compared to premiums received in 2023 on interest rate derivatives ($10 million), partially offset by lower unrealized losses in 2024 compared to 2023 associated with freestanding derivatives ($15 million).

Income tax expense decreased 6%24%, primarily due to ~~the absence of a charge to reflect the recognition of deferred taxes on the outside basis of Hope's stock upon meeting the classification as held for sale ($87 million), partially offset by higher~~lower pre-tax ~~income ($83 million).~~income.

Net income from discontinued operations including noncontrolling interests decreased ~~$24 million,~~59%, primarily due to a loss on the closing of the East Ohio Transaction ($108 million), an impairment associated with the Questar Gas Transaction ($78 million), the absence of ~~a gain~~equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($57 million), charges for employee benefit items related to the East Ohio Transaction ($33 million) and the absence of earnings from operations following the closing of the East Ohio Transaction ($26 million), partially offset by the absence of depreciation expense associated with the ~~Q-Pipe Group~~East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($78 million), lower tax expense associated with the ~~finalization~~PSNC and Questar Gas Transactions ($25 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($25 million) and the ~~working capital adjustment~~absence of unrealized losses on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in ~~the first quarter of 2022.~~Cove Point ($19 million).

Results of Operations—Virginia Power

Presented below is a summary of Virginia Power’s consolidated results:


	First Quarter							First Quarter
	2023		2022		$ Change			2024		2023		$ Change
(millions)
Net income	$	353	$	357	$	(4	)	$	465	$	355	$	110

Overview

First Quarter ~~2023~~2024 vs. ~~2022~~2023

Net income ~~decreased 1%~~increased 31%, primarily due to ~~a decrease~~the absence of amortization associated with the 2021 Triennial Review, an increase in net investment earnings on nuclear decommissioning trust funds and an increase in sales to electric utility customers ~~attributable to~~from weather ~~substantially~~and other customer-related factors, partially offset by a net decrease ~~in storm damage and service restoration costs.~~from riders primarily from 2023 Virginia legislation.

Analysis of Consolidated Operations

Presented below are selected amounts related to Virginia Power’s results of operations:


	First Quarter							First Quarter
	2023		2022		$ Change			2024			2023		$ Change
(millions)
Operating revenue	$	2,384	$	2,167	$	217		$	2,489		$	2,384	$	105
Electric fuel and other energy-related purchases		799		516		283			701			799		(98	)
Purchased electric capacity		8		11		(3	)		13			8		5
Other operations and maintenance		441		570		(129	)		531			441		90
Depreciation and amortization		447		429		18			448			447		1
Other taxes		85		75		10			93			85		8
Impairment of assets and other charges		7		4		3
Impairment of assets and other charges (benefits)									(17	)		7		(24	)
Other income (expense)		36		4		32			63			36		27
Interest and related charges		181		148		33			190			181		9
Income tax expense		99		61		38			128			97		31

An analysis of Virginia Power’s results of operations follows:

First Quarter ~~2023~~2024 vs. ~~2022~~2023

Operating revenue increased ~~10%~~4%, primarily reflecting:

•

A ~~$249 million increase in fuel-related revenue as a result of a net increase in commodity costs associated with sales to electric utility retail customers;~~

•

~~A $48~~$177 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

•

A ~~$35~~$30 million increase in sales to electric utility retail customers ~~associated with economic and other usage factors; and~~

•

~~A $10 million~~from an increase ~~in sales to electric utility retail customers associated with growth.~~

~~These increases were partially offset by:~~

•

~~A $91 million decrease in sales to electric utility retail customers, primarily due to a decrease~~ in heating degree ~~days; and~~days during the heating season;

•

A $28 million ~~net decrease~~increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic ~~hedges.~~hedges;

•

A $21 million increase in sales to electric utility retail customers associated with growth; and

•

A $10 million increase in sales to electric utility retail customers associated with economic and other usage factors.

These increases were partially offset by:

•

A $102 million decrease from the combination of certain riders into base rates as a result of 2023 Virginia legislation; and

•

A $69 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers.

Electric fuel and other energy-related purchases ~~increased 55%~~decreased 12%, primarily due to ~~higher~~lower commodity costs for electric utilities ($~~249~~75 million) and ~~an increase~~a decrease in the use of purchased renewable energy credits ($2812 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance ~~decreased 23%~~increased 20%, primarily due to ~~a decrease in storm damage and restoration costs ($104 million) and a decrease~~an increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($7125 million), ~~partially~~an increase in storm damage and restoration costs ($21 million), an increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation ($20 million) and an increase in outage costs ($15 million).

Depreciation and amortization remained substantially consistent as the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and a decrease in amortization associated with non-fuel riders ($35 million) were substantially offset by an increase in ~~outside services~~RGGI-related amortization ($1692 million)., which is offset in operating revenue and does not impact net income.

Impairment of assets and other charges decreased $24 million, primarily due to a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review.

Other income increased ~~$32 million,~~75%, primarily due to an increase in net investment gains ~~in 2023 compared to net investment losses in 2022~~ on nuclear decommissioning trust funds.

Interest and related charges increased ~~22%~~5%, primarily due to ~~increased~~an increase in long-term debt borrowings ($44 million), partially offset by a decrease in principal on commercial paper ~~long-term debt~~ and intercompany borrowings with Dominion Energy ($33 million) and higher interest rates on commercial paper, long-term debt and intercompany borrowings with Dominion Energy ($11 million), partially offset by decreased interest expense associated with rider deferrals ($1234 million).

Income tax expense increased ~~62%~~32%, primarily due to ~~lower investment tax credits ($27 million) and~~ higher pre-tax ~~income ($10 million).~~income.

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. Presented below is a summary of contributions by Dominion Energy’s operating segments to net income ~~(loss)~~ attributable to Dominion Energy:


	Net Income (Loss) Attributable to Dominion Energy								EPS(1)								Net Income Attributable to Dominion Energy							EPS(1)
	2023		2022			$ Change			2023		2022			$ Change			2024		2023		$ Change			2024		2023		$ Change
(millions, except EPS)
First Quarter
Dominion Energy Virginia	$	386	$	518		$	(132	)	$	0.46	$	0.64		$	(0.18	)	$	424	$	386	$	38		$	0.51	$	0.46	$	0.05
Gas Distribution		278		294			(16	)		0.33		0.36			(0.03	)
Dominion Energy South Carolina		91		109			(18	)		0.11		0.13			(0.02	)		80		91		(11	)		0.10		0.11		(0.01	)
Contracted Assets		156		101			55			0.19		0.13			0.06
Contracted Energy																		122		111		11			0.14		0.13		0.01
Corporate and Other		86		(311	)		397			0.08		(0.43	)		0.51			48		393		(345	)		0.03		0.45		(0.42	)
Consolidated	$	997	$	711		$	286		$	1.17	$	0.83		$	0.34		$	674	$	981	$	(307	)	$	0.78	$	1.15	$	(0.37	)

(1)

Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

Dominion Energy Virginia

Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:


	First Quarter								First Quarter
	2023		2022		% Change				2024		2023		% Change
Electricity delivered (million MWh)		21.7		22.3		(3	)%			23.4		21.7		8	%
Electricity supplied (million MWh):
Utility		21.8		22.3		(2	)			23.4		21.8		7
Non-Jurisdictional		0.3		0.3		—				0.3		0.3		—
Degree days (electric distribution and utility service area):								Degree days (electric distribution and utility service area):
Cooling		3		11		(73	)			4		3		33
Heating		1,471		1,895		(22	)			1,659		1,471		13
Average electric distribution customer accounts (thousands)		2,742		2,716		1				2,771		2,742		1

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:

First Quarter
2023 vs. 2022
Increase (Decrease)

Amount

EPS

(millions, except EPS)

Weather

$
(67
)

$
(0.08
)
Customer usage and other factors

33

0.04

Customer-elected rate impacts

(21
)

(0.03
)
Rider equity return

32

0.04

Depreciation and amortization

(6
)

(0.01
)
Renewable energy investment tax credits

(57
)

(0.07
)
Interest expense, net

(13
)

(0.02
)
Other

(33
)

(0.04
)
Share dilution

—

(0.01
)
Change in net income contribution

$
(132
)

$
(0.18
)

~~Gas Distribution~~

~~Presented below are selected operating statistics related to Gas Distribution’s operations:~~


	First Quarter 2024 vs. 2023 Increase (Decrease)
	Amount			EPS
(millions, except EPS)
Weather	$	22		$	0.03
Customer usage and other factors		23			0.03
Customer-elected rate impacts		21			0.03
Impact of 2023 Virginia legislation		(79	)		(0.09	)
Rider equity return		53			0.06
Storm damage and restoration costs		(15	)		(0.02	)
Planned outage costs		(7	)		(0.01	)
Depreciation and amortization		(3	)		—
Interest expense, net		7			0.01
Other		16			0.01
Share dilution		—			—
Change in net income contribution	$	38		$	0.05

First Quarter

2023

2022(1)

% Change

Gas distribution throughput (bcf):

Sales

84

89

(6
%)
Transportation

272

301

(10
)
Heating degree days (gas distribution service area):

North Carolina

1,188

1,583

(25
)
Ohio and West Virginia(1)

2,397

2,912

(18
)
Utah, Wyoming and Idaho

2,655

2,478

7

Average gas distribution customer accounts
(thousands):

Sales

1,896

1,965

(4
)
Transportation

1,139

1,140

—

~~(1)~~

~~Includes Hope in 2022.~~

6164

~~Presented below, on an after-tax basis, are the key factors impacting Gas Distribution’s net income contribution:~~

First Quarter
2023 vs. 2022
Increase (Decrease)

Amount

EPS

(millions, except EPS)

Weather

$
(4
)

$
—

Customer usage and other factors

7

0.01

Base rate case impacts

16

0.02

Rider equity return

3

—

Wexpro cost saving sharing incentives

3

—

Sale of Hope

(19
)

(0.02
)
Interest expense, net

(12
)

(0.01
)
Other

(10
)

(0.02
)
Share dilution

—

(0.01
)
Change in net income contribution

$
(16
)

$
(0.03
)

Dominion Energy South Carolina

Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:


	First Quarter								First Quarter
	2023		2022		% Change				2024		2023		% Change
Electricity delivered (million MWh)		5.0		5.2		(4	%)			5.0		5.0		—		%
Electricity supplied (million MWh)		5.2		5.5		(5	)			5.3		5.2		2
Degree days (electric distribution service areas):
Cooling		1		—		100				—		1		(100	)
Heating		459		750		(39	)			620		459		35
Gas distribution throughput (bcf):
Sales		17		20		(15	)			19		17		12
Average distribution customer accounts (thousands):								Average distribution customer accounts (thousands):
Electric		783		772		1				797		783		2
Gas		437		422		4				454		437		4

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:


	First Quarter 2023 vs. 2022 Increase (Decrease)						First Quarter 2024 vs. 2023 Increase (Decrease)
	Amount			EPS			Amount			EPS
(millions, except EPS)
Weather	$	(19	)	$	(0.02	)	$	10		$	0.01
Customer usage and other factors		7			0.01			12			0.01
Customer-elected rate impacts		(7	)		(0.01	)		(2	)		—
Base rate case & Natural Gas Rate Stabilization Act impacts		5			0.01
Natural Gas Rate Stabilization Act impacts								1			—
Capital cost rider		(2	)		—			(1	)		—
Depreciation and amortization		(3	)		—			(5	)		(0.01	)
Interest expense, net		(6	)		(0.01	)		(7	)		(0.01	)
Other		7			—			(19	)		(0.01	)
Share dilution		—			—			—			—
Change in net income contribution	$	(18	)	$	(0.02	)	$	(11	)	$	(0.01	)

Contracted ~~Assets~~Energy

Presented below are selected operating statistics related to Contracted ~~Asset’s~~Energy’s operations:

First Quarter

2023

2022

% Change

Electricity supplied (million MWh)

4.6

4.6

—

%


	First Quarter
	2024		2023		% Change
Electricity supplied (million MWh)		4.4		4.6		(4	%)

Presented below, on an after-tax basis, are the key factors impacting Contracted ~~Asset’s~~Energy’s net income contribution:


	First Quarter 2023 vs. 2022 Increase (Decrease)						First Quarter 2024 vs. 2023 Increase (Decrease)
	Amount			EPS			Amount			EPS
(millions, except EPS)
Margin(1)	$	49		$	0.06
Planned outage costs		3			—
Margin							$	1		$	—
Planned Millstone outages(1)								2			—
Unplanned Millstone outages(1)								(6	)		(0.01	)
Depreciation and amortization		5			0.01			7			0.01
Interest expense, net		(5	)		(0.01	)
Other		3			0.01			7			0.01
Share dilution		—			(0.01	)		—			—
Change in net income contribution	$	55		$	0.06		$	11		$	0.01

(1)

Includes earnings ~~associated with a 50% noncontrolling interest in Cove Point.~~impact from outage costs and lower energy margins.

Corporate and Other

Presented below are the Corporate and Other segment’s after-tax results:


	First Quarter									First Quarter
	2023			2022			$ Change			2024			2023			$ Change
(millions, except EPS)
Specific items attributable to operating segments	$	272		$	(269	)	$	541		$	124		$	304		$	(180	)
Specific items attributable to Corporate and Other segment		(124	)		(20	)		(104	)		67			162			(95	)
Total specific items		148			(289	)		437
Other corporate operations:
Net income from specific items											191			466			(275	)
Corporate and other operations:
Interest expense, net		(120	)		(79	)		(41	)		(180	)		(120	)		(60	)
Equity method investments											—			2			(2	)
Pension and other postretirement benefit plans											62			66			(4	)
Corporate service company costs											(27	)		(31	)		4
Other		58			57			1			2			10			(8	)
Total other corporate operations		(62	)		(22	)		(40	)
Total net income (expense)	$	86		$	(311	)	$	397
Net expense from corporate and other operations											(143	)		(73	)		(70	)
Total net income										$	48		$	393		$	(345	)
EPS impact	$	0.08		$	(0.43	)	$	0.51		$	0.03		$	0.45		$	(0.42	)

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the ~~segments'~~segments’ performance or in allocating resources. See Note 21 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. For the three months ended March 31, 2024, this primarily included $114 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio Transaction, as well as an impairment charge associated with the Questar Gas Transaction,and a $34 million after-tax loss for derivative mark-to-market changes.

For the three months ended March 31, 2023, this primarily included $281 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, a $68 million after-tax charge associated with the impairment of a corporate office building and a $45 million after-tax loss for derivative mark-to-market changes.

For the three months ended March 31, 2022, this primarily included a $87 million charge to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale, a $52 million after-tax benefit for derivative mark-to-market changes and $19 million net income from discontinued operations, primarily associated with the Q-Pipe Group.

Outlook

As of March 31, ~~2023,~~2024, there have been no material changes to Dominion Energy’s ~~2023~~2024 outlook as described in Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. As discussed in Future Issues and Other Matters, legislation enacted in Virginia in April 2023 is expected to decrease Dominion Energy’s 2023 net income for riders to be combined into base rates effective July 2023.

Liquidity and Capital Resources

Dominion Energy depends on both cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term financings. Dominion Energy’s material cash requirements include capital and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock. ~~This section should be read in conjunction with Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.~~

Analysis of Cash Flows

Presented below are selected amounts related to Dominion Energy’s cash flows:


	2023			2022			2024			2023
(millions)
Cash, restricted cash and equivalents at January 1	$	341		$	408		$	301		$	341
Cash flows provided by (used in):
Operating activities		2,097			1,125
Operating activities(1)								1,982			2,097
Investing activities		(2,302	)		(1,574	)		1,385			(2,302	)
Financing activities		1,820			635			(3,332	)		1,820
Net increase in cash, restricted cash and equivalents		1,615			186			35			1,615
Cash, restricted cash and equivalents at March 31	$	1,956		$	594		$	336		$	1,956

(1)

Includes cash outflows of $17 million for energy efficiency programs in Virginia for both the three months ended March 31, 2024 and 2023 and $5 million and $4 million for DSM programs in South Carolina for the three months ended March 31, 2024 and 2023, respectively.

Operating Cash Flows

Net cash provided by Dominion ~~Energy's~~Energy’s operating activities ~~increased $972~~decreased $115 million, inclusive of a $487 million increase from discontinued operations. Net cash provided by continuing operations decreased $602 million primarily due to higher ~~deferred fuel~~net prepayments and ~~purchased gas cost recoveries ($345 million), lower margin~~ deposits ($~~338~~283 million), and a decrease in refund payments to Virginia electric customers associated with the settlement of the 2021 Triennial Review ($179 million) and an increase of $307 million primarily as a result of higher operating cash flows from ~~electric utility and gas distribution operations driven by riders, customer usage and other factors, partially offset by~~ changes in working capital ($~~197~~373 million).

Investing Cash Flows

Net cash ~~used in~~from Dominion Energy’s investing activities increased ~~$728 million,~~$3.7 billion, primarily due to net proceeds from the East Ohio Transaction ($4.3 billion) and an increase in distributions from equity method affiliates ($126 million), partially offset by an increase in plant construction and other property additions ($~~598~~549 million) and ~~the absence~~higher acquisitions of ~~proceeds from the sale of assets and equity method investments in 2022~~solar development projects ($~~146~~150 million).

Financing Cash Flows

Net cash ~~provided by~~from Dominion ~~Energy's~~Energy’s financing activities ~~increased $1.2~~decreased $5.2 billion, primarily due to a $6.3 billion decrease due to net repayments on 364-day term loan ~~facility borrowings~~facilities in 2024 versus net issuances in 2023, net repayments of short-term debt ($~~2.5 billion)~~453 million) and the absence of supplemental credit facility borrowings in 2023 ($450 million), partially offset by a ~~$1.7~~$2.0 billion ~~decrease~~increase due to net ~~repayments~~issuances of long-term debt in ~~2023~~2024 versus net ~~issuances~~repayments in ~~2022.~~2023.

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. There have been no significant changes to Dominion Energy’s use of credit facilities and/or short-term debt during the three months ended March 31, ~~2023.~~2024.

Joint Revolving Credit Facility

Dominion Energy maintains a $6.0 billion joint revolving credit facility which provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives. At


	Facility Limit		Outstanding Commercial Paper(1)		Outstanding Letters of Credit		Facility Capacity Available
(millions)
At March 31, 2024
Joint revolving credit facility(2)	$	6,000	$	3,164	$	34	$	2,802

(1)

The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s credit facility was 5.67% at March 31, ~~2023, Dominion Energy had $2.7 billion of unused capacity~~2024.

(2)

This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028, and can be used by the borrowers under ~~its joint revolving~~the credit ~~facility. See Note 16~~facility to support bank borrowings and the ~~Consolidated Financial Statements in this report for the balances~~issuance of commercial paper, ~~and~~as well as to support up to a combined $2.0 billion of letters of ~~credit outstanding.~~credit.

Dominion Energy Reliability InvestmentSM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At March 31, ~~2023,~~2024, Dominion Energy’s Consolidated Balance Sheets include ~~$389~~$462 million ~~with respect to such notes~~ presented within short-term ~~debt.~~debt, with a weighted-average interest rate of 5.50%. The proceeds are used for general corporate purposes and to repay debt.

Other Facilities

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans as discussed in Note 16 to the Consolidated Financial Statements in this report.

In March 2024, Dominion Energy repaid $1.8 billion of its $2.25 billion 364-day term loan facility entered into in October 2023, using after-tax proceeds ~~to be used to repay existing long-term debt and short-term debt upon maturity and for other~~received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested

6467

~~general corporate purposes. Concurrently, Dominion Energy borrowed an initial $1.0 billion with~~

and received a $500 million increase to the ~~proceeds used to repay long-term debt. In February~~amount of the facility and ~~March 2023, Dominion Energy~~concurrently borrowed $500 million ~~and $1.0 billion, respectively,~~ with the proceeds used for general corporate ~~purposes~~purposes. The debt is scheduled to mature in October 2024. The agreement contains certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the PSNC and Questar Gas Transactions be applied to ~~repay long-term debt.~~any outstanding borrowings under this facility. At March 31, 2024, Dominion Energy’s Consolidated Balance Sheet includes $976 million with respect to such facility presented within securities due within one year. The maximum allowed total debt to total capital ratio under this facility is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

Long-Term Debt

Sustainability Revolving Credit ~~Agreement~~Facility

Dominion Energy maintains a $900 million Sustainability Revolving Credit ~~Agreement~~Facility which matures in June 2024 and bears interest at a variable rate. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. ~~In March 2023, Dominion Energy borrowed $450 million with the proceeds used for general corporate purposes.~~ At March 31, ~~2023,~~2024, Dominion Energy had ~~$900~~$450 million outstanding under this supplemental credit facility, ~~including $450 million~~ borrowed to support environmental sustainability and social investment initiatives. ~~In April 2023, Dominion Energy repaid $450 million borrowed for general corporate purposes.~~

Issuances and Borrowings of Long-Term Debt

During the three months ended March 31, ~~2023,~~2024, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds for senior notes were used for the repayment of existing indebtedness and for general corporate purposes. See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information, including use of proceeds and repayment provisions, on the securitization bonds issued in February 2024.


Month		Type	Public / Private	Entity	Principal		Rate			Stated Maturity		Type	Public / Private	Entity	Principal		Rate			Stated Maturity
					(millions)
March		Senior notes	Public	Virginia Power	$	750		5.000	%	2033
March		Senior notes	Public	Virginia Power		750		5.450	%	2053
January												Senior notes	Public	Virginia Power	$	500		5.000	%	2034
January												Senior notes	Public	Virginia Power		500		5.350	%	2054
February												Senior secured deferred fuel cost bonds	Public	VPFS		439		5.088	%	2029
February												Senior secured deferred fuel cost bonds	Public	VPFS		843		4.877	%	2033
Total issuances and borrowings	Total issuances and borrowings				$	1,500					Total issuances and borrowings				$	2,282

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

~~As the comprehensive business review announced in November 2022 is still in progress,~~ Dominion Energy ~~is uncertain as to~~anticipates, excluding potential opportunistic financings and the ~~amount~~securitization bonds, issuing between approximately $3.0 billion and $4.3 billion of long-term debt ~~it anticipates issuing in 2023.~~during 2024, inclusive of $1 billion issued at Virginia Power as shown above and an expected issuance at PSNC of up to $300 million prior to closing of the PSNC Transaction. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends, after-tax proceeds from the completion of the PSNC and Questar Gas Transactions remaining after the repayment of the 364-day term loan facility, after-tax proceeds from the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayments, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed during the three months ended March 31, ~~2023:~~2024:

Month

Type

Entity

Principal (1)

Rate

Stated Maturity

Type

Entity

Principal (1)

Rate

Stated Maturity

(millions)

Debt scheduled to mature in 2023

Multiple

1,749

various

Debt scheduled to mature in 2024

Multiple

663

various

Early redemptions

None

February

Secured senior notes

Eagle Solar

279

4.820

2042

Total repayments, repurchases and redemptions

1,749

Total repayments, repurchases and redemptions

942

(1)

Total amount redeemed prior to maturity includes remaining principal plus accrued interest.

See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

~~During the three months ended March 31, 2023, Dominion Energy was not required to and did not complete the remarketing of any of its long-term debt.~~ In ~~2023,~~2024, Dominion Energy expects to remarket approximately ~~$160~~$270 million of its tax-exempt bonds.

Credit Ratings

~~As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022,~~ Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer its debt securities. The credit ratings for Dominion Energy are affected by its financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the ~~ratings~~rating agencies and event risk, if applicable, such as major acquisitions or dispositions. Credit ratings and outlooks as of April 25, 2024 are as follows:


	Fitch	Moody’s	Standard & Poor’s
Dominion Energy
Issuer	BBB+	Baa2	BBB+
Senior unsecured debt securities	BBB+	Baa2	BBB
Junior subordinated notes	BBB	Baa3	BBB
Enhanced junior subordinated notes	BBB-	Baa3	BBB-
Preferred stock	BBB-	Ba1	BBB-
Commercial paper	F2	P-2	A-2
Outlook	Stable	Stable	Negative

A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. As of March 31, 2023, there have been no changes in Dominion Energy’s credit ratings. In April 2023, Standard & Poor’s affirmed its credit ratings but revised its outlook for Dominion Energy from stableRatings are subject to ~~negative. Dominion Energy cannot predict~~revision or withdrawal at any time by the potential impact the negative outlook at Standard & Poor’s could have on its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer debt securities.applicable rating organization.

Financial Covenants

As ~~discussed~~part of borrowing funds and issuing both short-term and long-term debt or preferred securities, Dominion Energy must enter into enabling agreements. These agreements contain customary covenants that, in the ~~Companies’ Annual Report~~event of default, could result in the acceleration of principal and interest payments; restrictions on ~~Form 10-K for~~distributions related to capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments; and in some cases, the ~~year ended December 31, 2022,~~ termination of credit commitments unless a waiver of such requirements is agreed to by the lenders/security holders. These provisions are customary, with each agreement specifying which covenants apply. These provisions are not necessarily unique to Dominion Energy.

Dominion Energy is ~~subject~~required to pay annual commitment fees to maintain its joint revolving credit facility. In addition, the credit agreement contains various ~~covenants present in the enabling agreements underlying~~terms and conditions that could affect Dominion Energy’s ~~debt.~~ ability to borrow under the facility. They include a maximum debt to total capital ratio, which is also included in Dominion Energy’s Sustainability Revolving Credit Agreement entered into in 2021 and the 364-day term loan facility entered into in October 2023, and cross-default provisions.

As of March 31, ~~2023,~~2024, the calculated total debt to total capital ratio, pursuant to the terms of the agreements, was as follows:


Company	Maximum Allowed Ratio			Actual Ratio(1)
Dominion Energy		67.5	%		58.3	%

(1)

Indebtedness as defined by the agreements excludes certain junior subordinated notes and securitization bonds reflected as long-term debt as well as AOCI reflected as equity in the Consolidated Balance Sheets.

If Dominion Energy or any of its material subsidiaries fails to make payment on various debt obligations in excess of $100 million, the lenders could require the defaulting company, if it is a borrower under Dominion Energy’s joint revolving credit facility, to accelerate its repayment of any outstanding borrowings and the lenders could terminate their commitments, if any, to lend funds to that company under the credit facility. In addition, if the defaulting company is Virginia Power, Dominion Energy’s obligations to repay any outstanding borrowing under the credit facility could also be accelerated and the lenders’ commitments to Dominion Energy could terminate.

Dominion Energy monitors compliance with these covenants on a regular basis in order to ensure that events of default will not occur. As of March 31, 2024, there have been no ~~material changes to covenants, nor any~~ events of default under Dominion Energy’s covenants.

Common Stock, Preferred Stock and Other Equity Securities

~~In the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, there is~~Issuances of Equity Securities

Dominion Energy maintains Dominion Energy Direct® and a ~~discussion~~number of employee savings plans through which contributions may be invested in Dominion Energy’s ~~existing equity financing programs, including an at-the-market program and~~common stock. These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In August 2023, Dominion Energy ~~Direct®.~~began purchasing its common stock on the open market for these direct stock purchase plans and, in March 2024, began issuing new shares of common stock. During the three months ended March 31, ~~2023,~~2024, Dominion Energy issued ~~$43~~less than 1 million of ~~stock through these programs. See Note 16 to the Consolidated Financial Statements in this report for additional information.~~such shares and received proceeds of $31 million.

~~As the comprehensive business review announced in November 2022 is still in progress,~~ Dominion Energy ~~is uncertain~~expects to issue equity through programs such as ~~to the amount of common stock that it anticipates issuing in 2023, including through its at-the-market program. However, Dominion Energy anticipates raising similar amounts of capital through~~ Dominion Energy Direct® ~~in 2023 compared~~and employee savings plans of approximately $200 million annually from 2024 through 2029. In addition, Dominion Energy expects to ~~2022 and 2021.~~issue equity, excluding potential opportunistic offerings, through an at-the-market program, including any related forward-sale agreements, of approximately $400 million to $600 million annually from 2024 through 2029. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

AsRepurchases of ~~March 31, 2023, there have been no material changes to~~Equity Securities

In November 2020, the Board of Directors ~~authorization~~authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock. This repurchase program does not include a specific timetable or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors. At March 31, 2024, Dominion Energy ~~stock, or the remaining~~had $920 million of available capacity under this ~~authorization, disclosed~~authorization.

Dominion Energy does not plan to repurchase shares of common stock in 2024, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization.~~Repurchases of Equity Securities~~

~~section of MD&A~~Capital Expenditures

See Note 26 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023 for Dominion Energy’s historical capital expenditures by segment. In March 2024, in connection with the completion of the business review, Dominion Energy ~~has not repurchased~~announced a $43 billion capital expenditure plan for 2025 through ~~March 31~~2029, including the impact of a 50% noncontrolling equity partner funding 50% of the CVOW Commercial Project costs, representing significant investments in decarbonization and ~~does not plan to repurchase in the remainder of 2023 any shares of its common stock, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock.~~

~~Capital Expenditures~~

~~As of March 31, 2023, there have been no material changes to~~reliability. Dominion Energy’s ~~expectation for~~total planned capital expenditures for each segment for 2024 through 2029 are presented in the table below:


	2024		2025		2026		2027		2028		2029		Total(3)
(billions)
Dominion Energy Virginia(1)	$	9.4	$	9.0	$	7.4	$	7.4	$	6.7	$	7.0	$	46.9
Dominion Energy South Carolina		1.3		1.1		1.0		1.2		1.3		1.3		7.2
Contracted Energy		0.5		0.3		0.2		0.3		0.2		0.2		1.7
Corporate and Other segment(2)		0.7		0.1		0.1		0.2		0.1		0.1		1.3
Total(3)	$	11.8	$	10.5	$	8.8	$	9.0	$	8.2	$	8.7	$	57.0

(1)

Includes $3.3 billion in 2024, $2.7 billion in 2025, $0.9 billion in 2026 and $0.1 billion in 2027 for 100% of the CVOW Commercial Project.

(2)

Includes $0.6 billion in 2024 related to gas distribution operations sold or expected to be sold to Enbridge.

(3)

Totals may not foot due to rounding.

Dominion Energy’s planned growth expenditures are subject to approval by the Board of Directors as ~~disclosed~~well as potentially by regulatory bodies based on the individual project and are expected to include significant investments in support of its clean energy profile. See Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy in Item 1. Business in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023 for additional discussion of various significant capital projects currently under development. The above estimates are based on capital expenditures plans reviewed and endorsed by Dominion Energy’s Board of Directors in early 2024, and subsequently in February 2024 in connection with conclusion of the business review, and are subject to continuing review and adjustment. Actual capital expenditures may vary from these estimates. Dominion Energy may also choose to postpone or cancel certain planned capital expenditures in order to mitigate the need for future debt financings and equity issuances.

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. In December 2023, Dominion Energy’s Board of Directors established an annual dividend rate for 2024 of $2.67 per share of common stock, consistent with the 2023 rate. Dividends are subject to declaration by the Board of Directors.

See Note 16 to the Consolidated Financial Statements in this report for additional information regarding Dominion Energy’s outstanding preferred stock and associated dividend rates.

Subsidiary Dividend Restrictions

AsCertain of Dominion Energy’s subsidiaries may, from time to time, be subject to certain restrictions imposed by regulators or financing arrangements on their ability to pay dividends, or to advance or repay funds, to Dominion Energy. At March 31, ~~2023, there~~2024, these restrictions did not have ~~been no material changes~~a significant impact on Dominion Energy’s ability to pay dividends on its common or preferred stock or meet its other cash obligations.

See Note 21 to the ~~subsidiary dividend restrictions disclosed in the~~ ~~Dividends~~ ~~section of MD&A~~Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023 for a description of such restrictions and any other restrictions on Dominion Energy’s ability to pay dividends.

Collateral and Credit Risk

AsCollateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of ~~March 31, 2023, there have been no material changes~~its counterparties. In connection with commodity hedging activities, Dominion Energy is required to provide collateral to counterparties under some circumstances. Under certain collateral arrangements, Dominion Energy may satisfy these requirements by electing to either deposit cash, post letters of credit or, in some cases, utilize other forms of security. From time to time, Dominion Energy may vary the form of collateral ~~requirements disclosed in~~provided to counterparties after weighing the ~~Collateral~~costs and ~~Credit Risk~~ ~~section~~benefits of ~~MD&A in~~various factors associated with the ~~Companies’ Annual Report on Form 10-K for~~different forms of collateral. These factors include short-term borrowing and short-term investment rates, the ~~year ended December 31, 2022.~~spread over these short-term rates at which Dominion Energy can issue commercial paper, balance sheet impacts, the costs and fees of alternative collateral postings with these and other counterparties and overall liquidity management objectives.

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure at March 31, ~~2023~~2024 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

Gross Credit
Exposure

Credit
Collateral

Net Credit
Exposure

(millions)

Investment grade(1)

$
151

$
—

$
151

Non-investment grade(2)

14

12

2

No external ratings:

Internally rated—investment grade(3)

47

6

41

Internally rated—non-investment grade(4)

24

1

23

Total(5)

$
236

$
19

$
217


	Gross Credit Exposure		Credit Collateral		Net Credit Exposure
(millions)
Investment grade(1)	$	219	$	—	$	219
Non-investment grade(2)		11		—		11
No external ratings:
Internally rated—investment grade(3)		16		—		16
Internally rated—non-investment grade(4)		28		—		28
Total(5)	$	274	$	—	$	274

(1)

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately ~~55%~~59% of the total net credit exposure.

(2)

The five largest counterparty exposures, combined, for this category represented approximately 1%4% of the total net credit exposure.

(3)

The five largest counterparty exposures, combined, for this category represented approximately ~~19%~~6% of the total net credit exposure.

(4)

The five largest counterparty exposures, combined, for this category represented approximately 7%8% of the total net credit exposure.

(5)

Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements.

Fuel and Other Purchase Commitments

~~There have been no~~Dominion Energy is party to various contracts for fuel and purchased power commitments related to both its regulated and nonregulated operations. Total estimated costs for such commitments are presented in the table below. These costs represent estimated annual minimum obligations for various purchased power and capacity agreements and actual costs may differ from amounts presented below depending on actual quantities purchased and prices paid.


		2024	2025		2026		2027		2028		Total
(millions)
Purchased electric capacity for utility operations	$	62	$	62	$	64	$	64	$	64	$	316
Fuel commitments for utility operations		1,103		715		370		374		434		2,996
Fuel commitments for nonregulated operations		157		77		67		69		56		426
Pipeline transportation and storage(1)		591		564		528		444		394		2,521
Total	$	1,913	$	1,418	$	1,029	$	951	$	948	$	6,259

(1)

Commitments include $346 million for 2024, $352 million for 2025, $327 million for 2026, $247 million for 2027 and $201 million for 2028 related to gas distribution operations sold or expected to be sold to Enbridge.

Other Material Cash Requirements

In addition to the financing arrangements discussed above, Dominion Energy is party to numerous contracts and arrangements obligating it to make cash payments in future years. Dominion Energy expects current liabilities to be paid within the next twelve months. In addition to the items already discussed, the following represent material ~~changes outside of the ordinary course of business to~~expected cash requirements recorded on Dominion Energy’s ~~fuel~~Consolidated Balance Sheets at March 31, 2024. Such obligations include:

•

Operating and ~~other purchase commitments included~~finance lease obligations – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~

~~Other Material Cash Requirements~~

As of March 31, 2023, there have been no material changes outside of the ordinary course of business to Dominion Energy’s other material cash requirements included in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. Such obligations include:

•

~~Operating and finance lease obligations – See Note 14 to the Consolidated Financial Statements in this report;~~2023;

•

Regulatory liabilities – See Note 12 to the Consolidated Financial Statements in this report;

•

AROs – See Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022;~~2023;

•

Employee benefit plan obligations – See Note 20 to the Consolidated Financial Statements in this report and Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022;~~2023;

•

~~Charitable commitments – See Note 23~~In addition, Dominion Energy is party to ~~the~~contracts and arrangements which may require it to make material cash payments in future years that are not recorded on its Consolidated ~~Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022;~~

Balance Sheets. Such obligations include:

•

Off-balance sheet leasing arrangements – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022;~~2023; and

•

Guarantees – See Note 17 to the Consolidated Financial Statements in this report.

Future Issues and Other Matters

See Item 1. Business, Future Issues and Other Matters in MD&A and Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 and Notes 13 and 17 to the Consolidated Financial Statements in this report for additional information on various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows.

Business Review

In November 2022, Dominion Energy announced the commencement of a business review of value-maximizing strategic business actions, alternatives to its current business mix and capital allocation and regulatory options which may assist customers to manage costs and provide greater predictability to its long-term, state-regulated utility value proposition. In April 2023, the legislative process in Virginia was substantially completed resulting in new legislation which ~~will shift~~shifts $350 million of annual revenue requirement for costs ~~currently~~ recovered through riders into base rates effective July 2023, ~~eliminate~~eliminates the ability of Virginia Power to utilize CCROs and ~~adjust~~adjusts the parameters for determining an authorized ROE and revenue sharing. In addition, new legislation allows Virginia Power to apply for the securitization of certain deferred fuel costs as well as seek approval for a noncontrolling equity financing partner for the CVOW Commercial Project. ~~As part of the on-going business review,~~In September 2023, Dominion Energy ~~may consider divestiture of all or a portion of certain operations. While the ultimate impacts cannot be estimated until the review is completed, which is expected~~entered agreements to occur in the third quarter of 2023, implementation of recommendations resulting from the business review could have a material impact on Dominion Energy's future results of operations, financial condition and/or cash flows.sell East Ohio, PSNC, Questar Gas and Wexpro to

~~Virginia Legislation~~

~~The 2023 General Assembly session~~Enbridge and completed the sale of its 50% noncontrolling limited partner interest in ~~Virginia included several proposals, including those ultimately enacted into law, related~~Cove Point to ~~Virginia Power’s retail base rates and other cost recovery mechanisms. In April 2023, legislation was enacted that amended several key provisions of~~BHE under the ~~Regulation Act, as previously amended by the GTSA. The new legislation will shift $350 million of annual revenue requirement for costs currently recovered under riders into base rates effective~~agreement signed in July 2023 ~~eliminate the ability of Virginia Power to utilize CCROs~~as discussed in Notes 3 and adjust the parameters for determining an authorized ROE and revenue sharing. In addition, this legislation reestablishes biennial base rate reviews, sets a target capitalization ratio and permits Virginia Power to apply for the securitization of certain deferred fuel costs. See Note 139 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for ~~additional information.~~the year ended December 31, 2023. In ~~March 2023, legislation was enacted that permits~~February 2024, Virginia Power completed the securitization of $1.3 billion of deferred fuel costs as discussed in Notes 13 and 18 to ~~seek approval~~the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In February 2024, Dominion Energy entered into an agreement to sell a 50% noncontrolling equity ~~financing partner for~~interest in the CVOW Commercial ~~Project. In addition, proposed legislation~~Project to ~~amend certain portions~~Stonepeak, as discussed in Note 10 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, representing the final strategic component of the VCEA remains pending, subject to potential veto by the Governor of Virginia, which would qualify generation produced by Virginia Power’s biomass electric generating stations as renewable energy and would eliminate the mandated retirement by the end of 2028 of such facilities. Whileon-going business review. In March 2024, Dominion Energy concluded the business review, including its long-term financial plan which is ~~unable to estimate the ultimate financial statement impacts related to the newly enacted,~~reflected within Liquidity and ~~remaining proposed legislation, it expects there could be a material impact to its results of operations, financial condition~~Capital Resources in MD&A in this report.

Proposed and/or ~~cash flows.~~

~~Future Environmental Regulations~~Recently Issued EPA Rules

In March 2023, the EPA released a proposed rule to further revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category, which apply primarily to wastewater discharges at coal and oil steam generating stations. ~~Also in March 2023, the~~The EPA released ~~its first proposed~~a prepublication final rule to establish national drinking water standards for PFAS. Dominion Energy anticipates that the EPA will release additional rulemakings as part of an overall strategy to identify and mitigate PFAS exposure. Additionally, in April 2024. In April 2023, the EPA released a proposal to tighten aspects of the Mercury and Air Toxics Standards Risk and Technology Review, including the reduction of emissions limits for filterable particulate matter, and requiring the use of continuous emissions monitoring systems to demonstrate compliance. The EPA released a prepublication final rule in April 2024. In May 2023, the EPA proposed a package of rules designed to reduce CO2 emissions from certain fossil fuel-fired electric generating units. The proposal sets standards of performance and emission guidelines for CO2 emissions from new gas-fired combustion turbines and modified coal-fired steam generating units. The proposed rulemaking package also proposes emission guidelines, including presumptive emission limits, for existing coal, oil and gas-fired steam generating units and certain gas-fired combustion turbines. The EPA released a prepublication final rule in April 2024 related to coal, oil and gas-fired steam generating units. Also in May 2023, the EPA released a proposed rule to regulate inactive surface impoundments located at retired generating stations that contained CCR and liquids after October 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR. The EPA released a prepublication final rule in April 2024. In addition, in March 2024, the EPA published a final rule strengthening the national air quality annual standard for fine particulate matter. Further, Dominion Energy anticipates that the EPA will release additional rulemakings as part of an overall strategy to identify and mitigate PFAS exposure, beyond the national drinking water standards for PFAS issued in April 2024. Until the EPA ultimately takes final action on ~~these~~the proposed rulemakings and publishes all final rules in the federal register, specific state implementation plans are developed for final rules and/or Dominion Energy has sufficient time to review final rules and develop implementation strategies, Dominion Energy is unable to predict whether or to what extent the new rules will ultimately require additional ~~controls.~~controls or other actions. The expenditures required to implement additional controls or other actions could have a material impact on Dominion Energy’s financial condition and cash flows.

CVOW Commercial Project

~~Federal Income Tax Laws~~

In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. The total cost of the project is estimated to be approximately $10 billion, excluding financing costs. Virginia Power’s current estimate for the 2.6 GW project’s projected levelized cost of energy is approximately $73/MWh, compared to the initial filing submission of $80-90/MWh. Virginia Power commenced major onshore construction activities in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction of the CVOW Commercial Project. In January 2024, Virginia Power received the final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction. As a result, Virginia Power anticipates commencing major offshore construction activities in the first half of 2024. The project is expected to be placed in service by the end of 2026. Through March 31, 2024, Virginia Power had incurred approximately $3.5 billion of costs. In April 2024, a motion was filed in the U.S. District Court for the DC Circuit requesting a preliminary injunction in connection with a complaint filed related to the administrative process for certain permits and approvals received. While the Companies expect to prevail, any injunction granted could potentially impact the project timeline and/or costs. As discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, the ~~IRS issued safe harbor guidance~~Companies are subject to ~~taxpayers~~a cost sharing mechanism in accordance with the Virginia Commission’s order in December 2022 for incremental construction costs which fall between $10.3 billion and $13.7 billion. Also as discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on the treatment of amounts paid to repair, maintain, replace, or improve natural gas distribution property, including whether expenditures should be deducted as repairs or capitalized and depreciated on tax returns. The guidance includes safe harbor tax accounting methods which a taxpayer may choose to elect and provides special transition rules and incentives that vary depending on which tax year isForm 10-K for the year ended December 31, 2023, Virginia Power entered into an agreement in February 2024 to sell a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the formation of ~~change. Dominion Energy~~OSWP. The agreement, subject to applicable regulatory approvals, is ~~evaluating this new guidance~~expected to provide for funding of 50% of the estimated total project costs of the CVOW Commercial Project, subject to certain adjustments. In March 2024, Virginia Power filed applications with the Virginia and ~~cannot currently estimate the potential financial statement impacts, but there could be a material impact to its results of operations, financial condition and/or cash flows.~~North Carolina Commissions and BOEM for such approvals.

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ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The matters discussed in this Item may contain “forward-looking statements” as described in the introductory paragraphs under Part I., Item 2. MD&A in this report. The reader’s attention is directed to those paragraphs for discussion of various risks and uncertainties that may impact the Companies.

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates, foreign currency exchange rates and equity securities prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts associated with the CVOW Commercial Project which it manages through foreign currency exchange rate derivatives. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel.

The following sensitivity analysis estimates the potential loss of future earnings or fair value from market risk sensitive instruments over a selected time period due to a 10% change in commodity prices, interest rates or foreign currency exchange rates.

Commodity Price Risk

To manage price risk, the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products.

The derivatives used to manage commodity price risk are executed within established policies and procedures and may include instruments such as futures, forwards, swaps, options and FTRs that are sensitive to changes in the related commodity prices. For sensitivity analysis purposes, the hypothetical change in market prices of commodity-based derivative instruments is determined based on models that consider the market prices of commodities in future periods, the volatility of the market prices in each period, as well as the time value factors of the derivative instruments. Prices and volatility are principally determined based on observable market prices.

A hypothetical 10% increase in commodity prices would have resulted in a decrease of ~~$88~~$49 million and ~~$52~~$62 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

A hypothetical 10% increase in commodity prices would have resulted in a decrease of ~~$50~~$26 million and ~~$25~~$24 million in the fair value of Virginia Power’s commodity-based derivative instruments as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

The impact of a change in energy commodity prices on the ~~Companies'~~Companies’ commodity-based derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net losses from commodity-based financial derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction, such as revenue from physical sales of the commodity.

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a ~~$58~~$30 million and ~~$37~~$56 million decrease in earnings at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively. For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a ~~$11~~less than $1 million and ~~$14~~$5 million decrease in earnings at March 31, ~~2023~~2024 or December 31, ~~2022,~~2023, respectively.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate lock agreements to manage interest rate risk. As of March 31, ~~2023,~~2024, Dominion Energy and Virginia Power had ~~$12.3~~$14.0 billion and ~~$2.9~~$2.3 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$268~~$85 million and ~~$120~~$101 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at March 31, ~~2023.~~2024. As of December 31, ~~2022,~~2023, Dominion Energy and Virginia Power had ~~$12.7~~$16.3 billion and ~~$3.6~~$3.3 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A

6974

hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$274~~$120 million and ~~$156~~$151 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, ~~2022.~~2023.

The impact of a change in interest rates on the Companies’ interest rate-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from interest rate derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Foreign Currency Exchange Rate Risk

The Companies utilize foreign currency exchange rate swaps to economically hedge the foreign currency exchange risk associated with fixed price contracts related to the CVOW Commercial Project denominated in foreign currencies. As of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, Dominion Energy had ~~€2.8~~€1.9 billion and ~~€2.9~~€2.1 billion, respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding. A hypothetical 10% increase in exchange rates would have resulted in a decrease of ~~$277~~$179 million and ~~$284~~$202 million in the fair value of Dominion Energy’s foreign currency swaps at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

The impact of a change in exchange rates on the Companies’ foreign currency-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from foreign exchange derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Investment Price Risk

The Companies are subject to investment price risk due to securities held as investments in nuclear decommissioning and rabbi trust funds that are managed by third-party investment managers. These trust funds primarily hold marketable securities that are reported in the Companies’ Consolidated Balance Sheets at fair value.

Dominion Energy recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $529 million, $252 million and $879 million for the three months ended March 31, ~~2023,~~2024 and ~~net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $197 million and $888 million for the three months ended March 31, 2022~~2023 and the year ended December 31, ~~2022,~~2023, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded in AOCI and regulatory liabilities, a net ~~increase~~decrease in unrealized gains on debt investments of ~~$56~~$55 million for the three months ended March 31, ~~2023~~2024 and a net ~~decrease in unrealized gains on debt investments~~increase of ~~$134~~$117 million and ~~$196~~$56 million for the year ended December 31, 2023 and the three months ended March 31, ~~2022 and the year ended December 31, 2022,~~2023, respectively.

Virginia Power recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $276 million, $123 million and $448 million for the three months ended March 31, ~~2023,~~2024 and ~~net investment losses (including investment income) on nuclear decommissioning trust investments of $89 million and $426 million for the three months ended March 31, 2022~~2023 and the year ended December 31, ~~2022,~~2023, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Virginia Power recorded in AOCI and regulatory liabilities, a net ~~increase~~decrease in unrealized gains on debt investments of $32 million for the three months ended March 31, 2024 and a net increase of $35 million and $66 million for the for the three months ended March 31, 2023 and ~~a net decrease in unrealized gains on debt investments of $68 million and $106 million for the three months ended March 31, 2022 and~~ the year ended December 31, ~~2022,~~2023, respectively.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods. As such, any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash to be contributed to the employee benefit plans.

ITEM 4. CONTROLS AND PROCEDURES

Senior management of both Dominion Energy and Virginia Power, including Dominion Energy and Virginia Power’s CEO and CFO, evaluated the effectiveness of each company’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, each of Dominion Energy and Virginia Power’s CEO and CFO have concluded that each company’s disclosure controls and procedures are effective.

There were no changes that occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, Dominion Energy or Virginia Power’s internal control over financial reporting.

7075

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Companies are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Companies reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Companies use a threshold of $1 million for such proceedings.

See the following for discussions on various legal, environmental and other regulatory proceedings to which the Companies are a party, which information is incorporated herein by reference:

•

Notes 13 and 23 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

•

Notes 13 and 17 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in this report.

ITEM 1A. RISK FACTORS

The Companies’ businesses are influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Companies’ control. A number of these risk factors have been identified in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022,~~2023, which should be taken into consideration when reviewing the information contained in this report. There have been no material changes with regard to the risk factors previously disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. For other factors that may cause actual results to differ materially from those indicated in any forward-looking statement or projection contained in this report, see Forward-Looking Statements in MD&A in this report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Dominion Energy

Purchases of Equity Securities

Period

Total Number of
Shares (or Units)
Purchased(1)

Average
Price Paid
per Share
(or Unit)(2)

Total Number of Shares (or
Units) Purchased as Part of
Publicly Announced Plans
or Programs

Maximum Number (or Approximate Dollar Value)
of Shares (or Units that
May Yet Be Purchased under
the Plans or Programs(3)
1/1/23 - 1/31/23

1,740

$
61.32

—

$ 0.92 billion
2/1/23 - 2/28/23

53,415

63.10

—

0.92 billion
3/1/23 - 3/31/23

544

54.74

—

0.92 billion
Total

55,699

$
62.96

—

$ 0.92 billion


Period	Total Number of Shares (or Units) Purchased(1)		Average Price Paid per Share (or Unit)(2)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units that May Yet Be Purchased under the Plans or Programs(3)
1/1/24 - 1/31/24		12,239	$	47.00		—	$ 0.92 billion
2/1/24 - 2/29/24		57,852		46.68		—	0.92 billion
3/1/24 - 3/31/24		9,608		47.06		—	0.92 billion
Total		79,699	$	46.78		—	$ 0.92 billion

(1)

Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.

(2)

Represents the weighted-average price paid per share.

(3)

In November 2020, the Dominion Energy Board of Directors authorized the repurchase of up to $1.0 billion of shares of common stock. This repurchase program has no expiration date or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors.

71ITEM 5. OTHER INFORMATION

During the last fiscal quarter, none of the Companies’ directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit Number	Description	Dominion Energy	Virginia Power


~~3.1.a~~2.1	~~Dominion Energy, Inc. Amended and Restated Articles of Incorporation,~~Equity Capital Contribution Agreement, dated as of ~~September 2, 2022~~February 21, 2024, by and between Virginia Electric and Power Company and Dunedin Member LLC (Exhibit ~~3.1,~~2.1, Form 8-K filed ~~September 2, 2022,~~February 26, 2024, File ~~No.1-8489)~~No. 1-8489 and File No. 000-55337).	X

~~3.1.b~~	~~Virginia Electric and Power Company Amended and Restated Articles of Incorporation, as in effect on October 30, 2014 (Exhibit 3.1.b, Form 10-Q filed November 3, 2014, File No. 1-2255).~~		X

3.1.a	Dominion Energy, Inc. Amended and Restated Articles of Incorporation, dated as of September 2, 2022 (Exhibit 3.1, Form 8-K filed September 2, 2022, File No.1-8489).	X

3.1.b	Virginia Electric and Power Company Amended and Restated Articles of Incorporation, as in effect on October 30, 2014 (Exhibit 3.1.b, Form 10-Q filed November 3, 2014, File No. 1-2255).		X

3.2.a	Dominion Energy, Inc. Bylaws, as amended and restated, effective February ~~20, 2023~~21, 2024 (Exhibit 3.2.a, Form 10-K for the fiscal year ended December 31, ~~2022~~2023 filed February 21, ~~2023,~~2024, File No. 1-8489).	X

3.2.b	Virginia Electric and Power Company Amended and Restated Bylaws, effective June 1, 2009 (Exhibit 3.1, Form 8-K filed June 3, 2009, File No. 1-2255).		X

4	Dominion Energy, Inc. and Virginia Electric and Power Company agree to furnish to the Securities and Exchange Commission upon request any other instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of any of their total consolidated assets.	X	X

4.1	Senior Indenture, dated as of September 1, 2017, between Virginia Electric and Power Company and U.S. Bank National Association, as Trustee (Exhibit 4.1, Form 8-K filed September 13, 2017, File No.000-55337); First Supplemental Indenture, dated as of September 1, 2017 (Exhibit 4.2, Form 8-K filed September 13, 2017, File No.000-55337); Second Supplemental Indenture, dated as of March 1, 2018 (Exhibit 4.2, Form 8-K filed March 22, 2018, File No. 000-55337);; Third Supplemental Indenture, dated as of November 1, 2018 (Exhibit 4.2, Form 8-K filed November 28, 2018, File No. 000-55337);; Fourth Supplemental Indenture, dated as of July 1, 2019 (Exhibit 4.2, Form 8-K filed July 10, 2019, File No. 00-55337);; Fifth Supplemental Indenture, dated as of December 1, 2019 (Exhibit 4.2, Form 8-K filed December 5, 2019, File No. 000-55337);; Sixth Supplemental Indenture, dated as of December 1, 2020 (Exhibit 4.2, Form 8-K filed December 15, 2020, File No. 00-55337);; Seventh Supplemental Indenture, dated as of November 1, 2021 (Exhibit 4.2, Form 8-K filed November 22, 2021, File No.000-55337);; Eighth Supplemental Indenture, dated as of November 1, 2021 (Exhibit 4.3, Form 8-K filed November 22, 2021, File No.000-55337);; Ninth Supplemental Indenture, dated as of January 1, 2022 (Exhibit 4.3, Form 8-K filed January 13, 2022, File No.000-55337);; Tenth Supplemental Indenture, dated as of May 1, 2022, (Exhibit 4.2, Form 8-K filed May 31, 2022, File No. 000-55337);; Eleventh Supplemental Indenture, dated as of May 1, 2022, (Exhibit 4.3, Form 8-K filed May 31, 2022, File No. 000-55337);; Twelfth Supplemental Indenture, dated March 1, 2023 (Exhibit 4.2, Form 8-K filed March 30, 2023, File No. 000-55337);; Thirteenth Supplemental Indenture, dated March 1, 2023 (Exhibit 4.3, Form 8-K filed March 30, 2023, File No. 000-55337); Fourteenth Supplemental Indenture, dated August 1, 2023 (Exhibit 4.2, Form 8-K filed August 10, 2023, File No. 000-55337); Fifteenth Supplemental Indenture, dated August 1, 2023 (Exhibit 4.3, Form 8-K filed August 10, 2023, File No. 000-55337); Sixteenth Supplemental Indenture, dated January 1, 2024 (Exhibit 4.2, Form 8-K filed January 8, 2024, File No. 000-55337); Seventeenth Supplemental Indenture, dated January 1, 2024 (Exhibit 4.3, Form 8-K filed January 8, 2024, File No. 000-55337).	X	X

~~31.a~~10.1	~~Certification by Chief Executive Officer~~Form of ~~Dominion Energy, Inc. pursuant to Section 302~~2024 Performance Grant Agreement under the 2024 Long-Term Incentive Program approved January 25, 2024 (filed herewith).	X

10.2	Form of 2024 Performance Share Award Agreement under the ~~Sarbanes-Oxley Act of 2002~~2024 Long-Term Incentive Program approved January 25, 2024 (filed herewith).	X

10.3	Form of 2024 Performance Grant Agreement for Robert M. Blue under the 2024 Long-Term Incentive Program approved January 25, 2024 (filed herewith).	X

31.a	Certification by Chief Executive Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).	X


Exhibit Number	Description	Dominion Energy	Virginia Power
31.b	Certification by Chief Financial Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).	X

31.c	Certification by Chief Executive Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).		X

31.d	Certification by Chief Financial Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).		X

32.a	Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).	X

32.b	Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Virginia Electric and Power Company as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).		X

99	Condensed consolidated earnings statements (filed herewith).	X	X


~~Exhibit~~ ~~Number~~	~~Description~~	~~Dominion Energy~~	~~Virginia Power~~

101	The following financial statements from Dominion Energy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2023,~~2024, filed on May ~~5, 2023,~~2, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. The following financial statements from Virginia Electric and Power Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2023,~~2024, filed on May ~~5, 2023,~~2, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Common Shareholder’s Equity (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.	X	X

104	Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.	X	X

7378

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	DOMINION ENERGY, INC. Registrant

May ~~5, 2023~~2, 2024	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

	VIRGINIA ELECTRIC AND POWER COMPANY Registrant

May ~~5, 2023~~2, 2024	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

7479


	Dominion Energy				Virginia Power
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)	$	537	$	603	$	118	$	133
Deferred project costs and DSM programs for gas utilities(2)		48		68
Unrecovered gas costs(3)		551		374
Deferred rider costs for Virginia electric utility(4)		90		152		90		152
Ash pond and landfill closure costs(5)		205		221		205		221
Deferred nuclear refueling outage costs(6)		66		83		66		83
NND Project costs(7)		138		138
Deferred early plant retirement charges(8)		169		226		169		226
Derivatives(9)		116		262		112		251
Other		236		213		60		74
Regulatory assets-current		2,156		2,340		820		1,140
Unrecognized pension and other postretirement benefit costs(10)		971		989		4		4
Deferred rider costs for Virginia electric utility(4)		496		363		496		363
Deferred project costs for gas utilities(2)		732		703
Interest rate hedges(11)		169		169		—		—
AROs and related funding(12)		393		398
NND Project costs(7)		2,053		2,088
Ash pond and landfill closure costs(5)		2,033		2,051		2,030		2,049
Deferred cost of fuel used in electric generation(1)		1,400		1,551		1,400		1,551
Derivatives(9)		199		255		92		148
Other		505		520		129		132
Regulatory assets-noncurrent		8,951		9,087		4,151		4,247
Total regulatory assets	$	11,107	$	11,427	$	4,971	$	5,387
Regulatory liabilities:
Provision for future cost of removal and AROs(13)		127		127		111		111
Reserve for refunds and rate credits to electric utility customers(14)		109		125		14		25
Income taxes refundable through future rates(15)		150		152		65		65
Monetization of guarantee settlement(16)		67		67
Derivatives(9)		40		327		31		176
Other		158		148		88		129
Regulatory liabilities-current		651		946		309		506
Income taxes refundable through future rates(15)		4,017		4,054		2,256		2,272
Provision for future cost of removal and AROs(13)		2,537		2,510		1,148		1,135
Nuclear decommissioning trust(17)		1,812		1,685		1,812		1,685
Monetization of guarantee settlement(16)		686		702
Interest rate hedges(11)		107		240		107		240
Reserve for refunds and rate credits to electric utility customers(14)		298		325		—		—
Unrecognized pension and other postretirement benefit costs(10)		18		22
Overrecovered other postretirement benefit costs(18)		146		140
Derivatives(9)		209		235		—		—
Other		262		194		234		167
Regulatory liabilities-noncurrent		10,092		10,107		5,557		5,499
Total regulatory liabilities	$	10,743	$	11,053	$	5,866	$	6,005


	First Quarter
	2023		2022(1)		% Change
Gas distribution throughput (bcf):
Sales		84		89		(6	%)
Transportation		272		301		(10	)
Heating degree days (gas distribution service area):
North Carolina		1,188		1,583		(25	)
Ohio and West Virginia(1)		2,397		2,912		(18	)
Utah, Wyoming and Idaho		2,655		2,478		7
Average gas distribution customer accounts (thousands):
Sales		1,896		1,965		(4	)
Transportation		1,139		1,140		—