Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2022 | Feb. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Title of 12(g) Security | Series A Nonvoting Preferred Shares | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | SC | |
Entity Registrant Name | DOMINION ENERGY SOUTH CAROLINA, INC. | |
Entity Central Index Key | 0000091882 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 40,296,147 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-3375 | |
Entity Tax Identification Number | 57-0248695 | |
Entity Address, Address Line One | 400 OTARRE PARKWAY | |
Entity Address, City or Town | CAYCE | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29033 | |
City Area Code | 804 | |
Local Phone Number | 819-2284 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
ICFR Auditor Attestation Flag | false | |
Auditor Name | Deloitte & Touche LLP | |
Auditor Location | Richmond, Virginia | |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Utility plant in service | $ 14,688 | $ 14,200 | |
Accumulated depreciation and amortization | (5,335) | (5,192) | |
Construction work in progress | 541 | 481 | |
Nuclear fuel, net of accumulated amortization | 204 | 216 | |
Utility plant, net | 10,098 | 9,705 | |
Nonutility Property and Investments: | |||
Nonutility property, net of accumulated depreciation | 20 | 42 | |
Assets held in trust, nuclear decommissioning | 223 | 256 | |
Nonutility property and investments, net | 243 | 298 | |
Current Assets: | |||
Cash and cash equivalents | 11 | 30 | |
Customer, net of allowance for uncollectible accounts of $5 at both periods | 420 | 358 | |
Receivables, affiliated and related party | 2 | 16 | |
Receivables, other | 141 | 152 | |
Inventories (at average cost): | |||
Fuel | 98 | 60 | |
Gas storage | 38 | 25 | |
Materials and supplies | 218 | 186 | |
Prepayments | 76 | 70 | |
Regulatory assets | 743 | 361 | |
Other current assets | [1] | 49 | 57 |
Current assets held for sale | 8 | 0 | |
Total current assets | 1,804 | 1,315 | |
Deferred Debits and Other Assets: | |||
Regulatory assets | 3,289 | 3,323 | |
Affiliated receivables | 0 | 66 | |
Other | [1] | 315 | 220 |
Total deferred debits and other assets | 3,604 | 3,609 | |
Total assets | 15,749 | 14,927 | |
CAPITALIZATION AND LIABILITIES | |||
Common Stock - no par value | 4,088 | 4,016 | |
Retained earnings | 418 | 335 | |
Accumulated other comprehensive loss | (2) | (1) | |
Total common equity | 4,504 | 4,350 | |
Noncontrolling interest | 162 | 175 | |
Total equity | 4,666 | 4,525 | |
Long-term debt, net | 3,725 | 3,724 | |
Affiliated long-term debt | 230 | 230 | |
Finance leases | 6 | 10 | |
Total long-term debt | 3,961 | 3,964 | |
Total capitalization | 8,627 | 8,489 | |
Current Liabilities: | |||
Short-term borrowings | 249 | 0 | |
Securities due within one year | 4 | 5 | |
Accounts payable | 297 | 232 | |
Affiliated and related party payables | 871 | 458 | |
Customer deposits and customer prepayments | 79 | 73 | |
Taxes accrued | 236 | 222 | |
Interest accrued | 75 | 73 | |
Regulatory liabilities | 251 | 245 | |
Reserves for litigation and regulatory proceedings | 94 | 211 | |
Other | 115 | 144 | |
Total current liabilities | 2,271 | 1,663 | |
Deferred Credits and Other Liabilities: | |||
Deferred income taxes and investment tax credits | 1,230 | 975 | |
Asset retirement obligations | 628 | 599 | |
Pension and other postretirement benefits | 114 | 164 | |
Regulatory liabilities | 2,785 | 2,936 | |
Affiliated liabilities | 19 | 0 | |
Other | 75 | 101 | |
Total deferred credits and other liabilities | 4,851 | 4,775 | |
Commitments and Contingencies | |||
Total capitalization and liabilities | $ 15,749 | $ 14,927 | |
[1] See Note 16 for amounts attributable to affiliates. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Utility plant, net | $ 10,098 | $ 9,705 |
Receivables, customer, allowance for uncollectible accounts | 5 | 5 |
Total current assets | 1,804 | 1,315 |
Total deferred debits and other assets | $ 3,604 | $ 3,609 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares outstanding | 40.3 | 40.3 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Utility plant, net | $ 719 | $ 729 |
Total current assets | 92 | 77 |
Total deferred debits and other assets | $ 23 | $ 31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Operating Revenue | [1] | $ 3,783 | $ 3,146 | $ 2,739 |
Operating Expenses: | ||||
Fuel used in electric generation | [1] | 1,000 | 646 | 447 |
Purchased power | [1] | 137 | 116 | 86 |
Gas purchased for resale | [1] | 433 | 285 | 181 |
Other operations and maintenance | 460 | 417 | 357 | |
Other operations and maintenance – affiliated suppliers | 164 | 189 | 213 | |
Impairment of assets and other charges | 6 | 320 | 111 | |
Depreciation and amortization | 507 | 486 | 474 | |
Other taxes | [1] | 277 | 255 | 239 |
Total operating expenses | 2,984 | 2,714 | 2,108 | |
Operating income | 799 | 432 | 631 | |
Other income (expense), net | 55 | (2) | (23) | |
Interest charges, net of AFUDC | [1] | 220 | 192 | 229 |
Income before income tax expense | 634 | 238 | 379 | |
Income tax expense | 131 | 9 | 71 | |
Net Income | 503 | 229 | 308 | |
Other Comprehensive Income (Loss): | ||||
Deferred cost of employee benefit plans, net of tax | (1) | 1 | 1 | |
Total Comprehensive Income | 502 | 230 | 309 | |
Comprehensive Income Attributable to Noncontrolling Interest | 20 | 21 | 12 | |
Comprehensive Income Available to Common Shareholder | $ 482 | $ 209 | $ 297 | |
[1] See Note 16 for amounts attributable to affiliates. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Allowance for funds used during construction | $ 7 | $ 3 | $ 5 |
Deferred cost of employee benefit plans, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating Activities | ||||
Net income | $ 503 | $ 229 | $ 308 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Impairment of assets and other charges | 4 | 311 | (14) | |
Deferred income taxes, net | 255 | 117 | 229 | |
Depreciation and amortization | 507 | 486 | 474 | |
Amortization of nuclear fuel | 39 | 34 | 41 | |
Other adjustments | (33) | 14 | 25 | |
Changes in certain assets and liabilities: | ||||
Receivables | (72) | (79) | (8) | |
Receivables – affiliated and related party | 14 | (15) | 4 | |
Inventories | (83) | (13) | 14 | |
Prepayments | (6) | 13 | 15 | |
Regulatory assets | (532) | (152) | 21 | |
Regulatory liabilities | (94) | (109) | (193) | |
Accounts payable | 52 | 44 | (19) | |
Accounts payable – affiliated and related party | 59 | (59) | 52 | |
Interest accrued | 2 | (22) | 0 | |
Taxes accrued | 14 | 7 | (3) | |
Pension and other postretirement benefits | (50) | (8) | (31) | |
Other assets and liabilities | (73) | (79) | 97 | |
Net cash provided by operating activities | 506 | 719 | 1,012 | |
Investing Activities | ||||
Property additions and construction expenditures | (697) | (758) | (742) | |
Proceeds from investments and sales or disposals of assets | (19) | 7 | (12) | |
Purchase of investments | (5) | (9) | 15 | |
Purchase of investments - affiliated | 0 | 0 | (1) | |
Short-term investments – affiliated | 0 | 15 | 0 | |
Investment in affiliate, net | 0 | 0 | (7) | |
Other | 6 | (5) | 0 | |
Net cash used in investing activities | (715) | (750) | (747) | |
Financing Activities | ||||
Proceeds from issuance of debt | 0 | 397 | 0 | |
Repayment of long-term debt | 0 | (34) | 0 | |
Dividend to parent | (433) | (188) | (38) | |
Short-term borrowings, net | 249 | 0 | 0 | |
Short-term borrowings – affiliated, net | 354 | 60 | (219) | |
Return of capital to parent | 0 | (150) | 0 | |
Other | (4) | (5) | (7) | |
Net cash provided by (used in) financing activities | 166 | 80 | (264) | |
Net increase (decrease) in cash, restricted cash and equivalents | (43) | 49 | 1 | |
Cash, restricted cash and equivalents at beginning of period | 54 | 5 | 4 | |
Cash, restricted cash and equivalents at end of period | 11 | 54 | 5 | |
Supplemental Cash Flow Information | ||||
Interest paid (net of capitalized interest of $7, $3 and $5) | 190 | 175 | 176 | |
Income taxes paid | 0 | 16 | 0 | |
Income taxes received | 130 | 0 | 220 | |
Noncash investing and financing activities: | ||||
Accrued construction expenditures | [1] | 126 | 110 | 48 |
Leases | [1],[2] | 6 | 0 | 3 |
Contributed capital | [1] | $ 72 | $ 149 | $ 322 |
[1] See Note 5 for noncash financing activities related to capital contributions associated with the settlement of litigation. See Note 12 for noncash investing activities related to the transfer of property associated with the settlement of litigation. Includes $ 3 million of financing leases entered into during the year ended December 31, 2020, and $ 6 million of operating leases entered into during the year ended December 31, 2022. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Cash Flows [Abstract] | |||
Cash paid for interest, capitalized interest | $ 7 | $ 3 | $ 5 |
Financing leases | $ 3 | ||
Operating leases | $ 6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | AOCI | Non-controlling Interest |
Beginning balance at Dec. 31, 2019 | $ 3,892 | $ 3,695 | $ 20 | $ (3) | $ 180 |
Beginning balance (in shares) at Dec. 31, 2019 | 40 | ||||
Total comprehensive income available to common shareholder | 308 | 295 | 1 | 12 | |
Capital contribution from parent | 322 | $ 322 | |||
Dividend to parent | (38) | (38) | |||
Ending balance at Dec. 31, 2020 | 4,484 | $ 4,017 | 277 | (2) | 192 |
Ending balance (in shares) at Dec. 31, 2020 | 40 | ||||
Total comprehensive income available to common shareholder | 230 | 208 | 1 | 21 | |
Capital contribution from parent | 149 | $ 149 | |||
Return of capital to parent | (150) | (150) | |||
Dividend to parent | (188) | (150) | (38) | ||
Ending balance at Dec. 31, 2021 | 4,525 | $ 4,016 | 335 | (1) | 175 |
Ending balance (in shares) at Dec. 31, 2021 | 40 | ||||
Total comprehensive income available to common shareholder | 502 | 483 | (1) | 20 | |
Capital contribution from parent | 72 | $ 72 | |||
Dividend to parent | (433) | (400) | (33) | ||
Ending balance at Dec. 31, 2022 | $ 4,666 | $ 4,088 | $ 418 | $ (2) | $ 162 |
Ending balance (in shares) at Dec. 31, 2022 | 40 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS DESC is a wholly-owned subsidiary of SCANA, which is a wholly-owned subsidiary of Dominion Energy. DESC is engaged in the generation, transmission and distribution of electricity in the central, southern and southwestern portions of South Carolina. Additionally, DESC distributes natural gas to residential, commercial and industrial customers in South Carolina. DESC manages its daily operations through one primary operating segment: Dominion Energy South Carolina. It also reports a Corporate and Other segment that 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General DESC makes certain estimates and assumptions in preparing its 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 dates of the financial statements and the reported amounts of revenues, expenses and cash flows for the periods presented. Actual results may differ from those estimates. DESC’s Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. DESC has concluded that GENCO and Fuel Company are VIEs due to the members lacking the characteristics of a controlling financial interest. DESC is the primary beneficiary of GENCO and Fuel Company and therefore is required to consolidate the VIEs. The equity interests in GENCO and Fuel Company are held solely by SCANA, DESC’s parent. As a result, GENCO and Fuel Company’s equity and results of operations are reflected as noncontrolling interest in the Consolidated Financial Statements. GENCO owns a coal-fired electric generating station with a 605 MW net generating capacity (summer rating). GENCO’s electricity is sold exclusively to DESC, pursuant to a FERC approved power purchase agreement and related operating agreement. The effects of these transactions are eliminated in consolidation. Fuel Company acquires, owns and provides financing for DESC's nuclear fuel, certain fossil fuels and emission and other environmental allowances. See also Note 6. Additionally, effective January 2021, DESC purchases shared services from DES, an affiliated VIE that provides accounting, legal, finance and certain administrative and technical services to all Dominion Energy subsidiaries, including DESC. DESC previously purchased such services from DESS, an affiliated VIE, that had provided such services to all SCANA subsidiaries. DESC has determined that it is not the primary beneficiary of DES as it does not have either the power to direct the activities that most significantly impact its economic performance or an obligation to absorb losses and benefits which could be significant to it. See Note 16 for amounts attributable to affiliates. DESC reports certain contracts and instruments at fair value. See below and Note 9 for further information on fair value measurements. DESC maintains pension and other postretirement benefit plans. See Note 11 for further information on these plans. Certain amounts in the 2021 and 2020 Consolidated Financial Statements and Notes have been reclassified to conform to the 2022 presentation for comparative purposes; however, such reclassifications did not affect DESC’s net income, total assets, liabilities, equity or cash flows. Effective in 2021, DESC updated its Statements of Cash Flows to present net charges for allowance for credit risk and write-offs of accounts receivables within other adjustments to reconcile net income to net cash provided by operating activities from the previous presentation within changes in accounts receivable. All prior period information was previously conformed to this presentation, which does not result in a change to net cash provided by operating activities. Utility Plant Utility plant is stated at original cost. The costs of additions, replacements and betterments to utility plant, including direct labor, material and indirect charges for engineering, supervision and AFUDC, are added to utility plant accounts. The original cost of utility property retired or otherwise disposed of is removed from utility plant accounts and generally charged to accumulated depreciation. The costs of repairs and replacements of items of property determined to be less than a unit of property or that do not increase the asset’s life or functionality are charged to expense. AFUDC is a noncash item that reflects the period cost of capital devoted to plant under construction. This accounting practice results in the inclusion of, as a component of construction cost, the costs of debt and equity capital dedicated to construction investment. AFUDC is included in rate base investment and depreciated as a component of plant cost in establishing rates for utility services. DESC calculated AFUDC using average composite rates of 2.7 %, 2.6 % and 2.6 % for 2022, 2021 and 2020, respectively. These rates do not exceed the maximum rates allowed in the various regulatory jurisdictions. DESC capitalizes interest on nuclear fuel in process at the actual interest cost incurred. For property subject to cost-of-service rate regulation that will be abandoned significantly before the end of its useful life, the net carrying value is reclassified from utility plant-in-service when it becomes probable it will be abandoned and recorded as a regulatory asset for amounts expected to be collected through future rates. Provisions for depreciation and amortization are recorded using the straight-line method based on the estimated service lives of the various classes of property, and in most cases, include provisions for future cost of removal. The composite weighted average depreciation rates for utility plant by function were as follows: Year Ended December 31, 2022 (1) 2021 (1) 2020 (percent) Generation 2.34 2.46 2.50 Transmission 2.36 2.56 2.56 Distribution 2.59 2.48 2.42 Storage 2.93 2.85 2.75 General and other 3.35 2.27 3.17 (1) Rates include the impact of a change in depreciation rates approved in connection with the settlement of the electric base rate case in 2021, which resulted in a decrease to depreciation expense of $ 12 million and $ 6 million for the years ended December 31, 2022 and 2021, respectively. DESC records nuclear fuel amortization using the units-of-production method, which is included in fuel used in electric generation and recovered through the fuel cost component of retail electric rates. Major Maintenance Planned major maintenance costs related to certain fossil fuel turbine generator equipment, nuclear refueling outages and cyclical tree trimming and vegetation management are collected in rates and accrued in periods other than when incurred in accordance with approval by the South Carolina Commission for such accounting treatment and rate recovery of expenses accrued thereunder. The difference between such cumulative major maintenance costs and cumulative collections is classified as a regulatory asset or regulatory liability on the consolidated balance sheet. Other planned major maintenance is expensed when incurred. Effective September 2021, DESC is authorized to collect $ 25 million annually through electric rates to offset certain turbine generator maintenance expenditures. Prior to September 2021, DESC was authorized to collect $ 18 million annually. For the years ended December 31, 2022, 2021 and 2020, DESC incurred $ 20 million, $ 20 million and $ 19 million, respectively, for turbine generator maintenance. Nuclear refueling outages are scheduled 18 months apart. As approved by the South Carolina Commission, DESC accrues $ 17 million annually for its portion of the nuclear refueling outages, that are scheduled to occur from the fall of 2021 through the fall of 2027 as well as unrecovered balances from the previous accrual cycle. Refueling outage costs incurred for which DESC was responsible totaled $ 1 million in 2022, $ 24 million in 2021 and $ 23 million in 2020. Effective September 2021, DESC implemented a tree trimming and vegetation management accrual where costs associated with cyclical tree trimming and vegetation management are accrued over the five-year operating cycle DESC seeks to maintain for such activities. As approved by the South Carolina Commission, DESC accrues $ 28 million annually. In 2021, DESC accrued $ 9 million during the period the accrual was effective. During the years ended December 31, 2022 and 2021, DESC incurred costs totaling $ 33 million and $ 9 million, respectively. Asset Retirement Obligations DESC recognizes AROs at fair value as incurred or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement activities to be performed, for which a legal obligation exists. These amounts are generally capitalized as costs of the related tangible long-lived assets. Since relevant market information is not available, fair value is estimated using discounted cash flow analyses. Periodically, DESC assesses its AROs to determine if circumstances indicate that estimates of the amounts or timing of future cash flows associated with retirement activities have changed. AROs are adjusted when significant changes in the amounts or timing of future cash flows are identified. DESC reports accretion of AROs and depreciation on asset retirement costs as an adjustment to regulatory assets. Nuclear Decommissioning Based on a decommissioning cost study completed in 2020, DESC’s two-thirds share of estimated site-specific nuclear decommissioning costs for Summer, including the cost of decommissioning plant components both subject to and not subject to radioactive contamination, totals $ 788 million, stated in 2022 dollars. Santee Cooper is responsible for decommissioning costs related to its one-third ownership interest in Summer. The cost estimate assumes that the site will be maintained over a period of approximately 60 years in such a manner as to allow for subsequent decontamination that would permit release for unrestricted use. Under DESC’s method of funding decommissioning costs, DESC transfers to an external trust fund the amounts collected through rates ($ 3 million in each period presented), less expenses. The trust invests the amounts transferred into insurance policies on the lives of certain company personnel. Insurance proceeds are reinvested in insurance policies. The asset balance held in trust reflects the net cash surrender value of the insurance policies and cash held by the trust. Management intends for the fund, including earnings thereon, to provide for all eventual decommissioning expenditures for Summer on an after-tax basis. Cash, Restricted Cash and Equivalents Cash, restricted cash and equivalents include cash on hand, cash in banks and temporary investments purchased with an original maturity of three months or less. Restricted Cash and Equivalents Beginning in 2021, DESC may hold restricted cash and equivalent balances that consists of federal assistance funds to be used towards customer bill assistance. The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within DESC’s Consolidated Balance Sheets to the corresponding amounts reported within DESC’s Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020: Cash, Restricted Cash and Equivalents at End/Beginning of Year December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (millions) Cash and cash equivalents $ 11 $ 30 $ 5 $ 4 Restricted cash and equivalents (1) — 24 — — Cash, restricted cash and equivalents shown in the $ 11 $ 54 $ 5 $ 4 (1) Restricted cash and equivalent balances are presented within other current assets on the Consolidated Balance Sheets. Receivables Customer receivables reflect amounts due from customers arising from the delivery of energy or related services and include both billed and unbilled amounts earned pursuant to revenue recognition practices described in Note 4. Customer receivables are generally due within one month of receipt of invoices which are presented on a monthly cycle basis. Unbilled revenues totaled $ 188 million and $ 139 million at December 31, 2022 and 2021, respectively. DESC sells electricity and natural gas and provides distribution and transmission services to customers in South Carolina. Management believes that this geographic concentration risk is mitigated by the diversity of DESC’s customer base, which includes a large number of residential, commercial and industrial customers. Credit risk associated with accounts receivable is limited due to the large number of customers. DESC’s exposure to potential concentrations of credit risk results primarily from amounts due from Santee Cooper related to the jointly owned nuclear generating facility at Summer. Such receivables represented approximately 4 % of DESC’s accounts receivable balance at December 31, 2022. Inventories Materials and supplies include the average cost of transmission, distribution, and generating plant materials. Materials are charged to inventory when purchased and then expensed or capitalized to plant, as appropriate, at weighted average cost when used. Fuel inventory includes the average cost of coal, natural gas, fuel oil and emission allowances. Fuel is charged to inventory when purchased and is expensed, at weighted average cost, as used and recovered through fuel cost recovery rates approved by the South Carolina Commission. Income Taxes A consolidated federal income tax return is filed for Dominion Energy and its subsidiaries, including DESC. In addition, where applicable, combined income tax returns for Dominion Energy, including DESC, are filed in various states including South Carolina; otherwise, separate state income tax returns are filed. DESC participates in an intercompany tax sharing agreement with Dominion Energy. Current income taxes are based on taxable income or loss and credits determined on a separate company basis. Under the agreements, if a subsidiary incurs a tax loss or earns a credit, recognition of current income tax benefits is limited to refunds of prior year taxes obtained by the carryback of the net operating loss or credit or to the extent the tax loss or credit is absorbed by the taxable income of other Dominion Energy consolidated group members. Otherwise, the net operating loss or credit is carried forward and is recognized as a deferred tax asset until realized. Accounting for income taxes involves an asset and liability approach. Deferred income tax assets and liabilities are provided, representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Accordingly, deferred taxes are recognized for the future consequences of different treatments used for the reporting of transactions in financial accounting and income tax returns. DESC establishes a valuation allowance when it is more-likely-than-not that all, or a portion, of a deferred tax asset will not be realized. DESC did not have any valuation allowances recorded for the periods presented. Where the treatment of temporary differences is different for rate-regulated operations, a regulatory asset is recognized if it is probable that future revenues will be provided for the payment of deferred tax liabilities. DESC recognizes positions taken, or expected to be taken, in income tax returns that are more-likely-than-not to be realized, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. At December 31, 2022 and 2021, DESC had $ 68 million and $ 62 million, respectively, of unrecognized tax benefits. If it is not more-likely-than-not that a tax position, or some portion thereof, will be sustained, the related tax benefits are not recognized in the financial statements. Unrecognized tax benefits may result in an increase in income taxes payable, a reduction of income tax refunds receivable or changes in deferred taxes. Also, when uncertainty about the deductibility of an amount is limited to the timing of such deductibility, the increase in income taxes payable (or reduction in tax refunds receivable) is accompanied by a decrease in deferred tax liabilities. Except when such amounts are presented net with amounts receivable from or amounts prepaid to tax authorities, noncurrent income taxes payable related to unrecognized tax benefits are classified in other deferred credits and other liabilities on the Consolidated Balance Sheets and current payables are included in taxes accrued on the Consolidated Balance Sheets. DESC recognizes interest on underpayments and overpayments of income taxes in interest expense and interest income, respectively. Penalties are also recognized in other expenses. Interest expense at DESC was $ 2 million in 2022 and $ 7 million in 2020. In 2021, DESC reflected a $ 21 million benefit in interest expense and recognized a $ 7 million benefit from the reversal of penalty expenses associated with the effective settlement of uncertain tax positions. Interest income at DESC was less than $ 1 million in 2022, 2021 and 2020. DESC recorded penalty expenses of $ 4 million in 2020. At December 31, 2022, DESC had an income tax-related affiliated payable of $ 47 million to Dominion Energy. This balance is expected to be paid to Dominion Energy. At December 31, 2021, DESC had an income tax-related affiliated receivable of $ 24 million from Dominion Energy. This balance was received from Dominion Energy in 2022. At DESC investment tax credits are deferred and amortized over the service lives of the properties giving rise to the credits. Production tax credits are recognized as energy is generated and sold. Regulatory Assets and Liabilities The accounting for DESC’s regulated electric and gas operations differs from the accounting for nonregulated operations in that DESC is required to reflect the effect of rate regulation in its Consolidated Financial Statements. For regulated businesses subject to federal or state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. DESC evaluates whether or not recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on: • Orders issued by regulatory commissions, legislation and judicial actions; • Past experience; and • Discussions with applicable regulatory authorities and legal counsel. Generally, regulatory assets and liabilities are amortized into income over the period authorized by the regulator. If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable. See Note 3 to the Consolidated Financial Statements for additional information. Derivative Instruments DESC is exposed to the impact of market fluctuations in the price of electricity and natural gas it markets and purchases, as well as interest rate risk in its business operations. DESC uses derivative instruments such as physical forwards and swaps to manage commodity and/or interest rate risks of its business operations. Derivative assets and liabilities are presented gross on DESC’s Consolidated Balance Sheets. Derivative contracts representing unrealized gain positions are reported as derivative assets. Derivative contracts representing unrealized losses are reported as derivative liabilities. All derivatives, except those for which an exception applies, are required to be reported in the Consolidated Balance Sheets at fair value. One of the exceptions to fair value accounting, normal purchases and normal sales, may be elected when the contract satisfies certain criteria, including a requirement that physical delivery of the underlying commodity is probable. Expenses and revenues resulting from deliveries under normal purchase contracts and normal sales contracts, respectively, are included in earnings at the time of contract performance. See Fair Value Measurements below for additional information about fair value measurements and associated valuation methods for derivatives. DESC’s derivative contracts include over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of setoff through master netting arrangements and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency, or other conditions. In general, most over-the-counter transactions are subject to collateral requirements. Types of collateral for over-the-counter contracts include cash, letters of credit and, in some cases, other forms of security, none of which are subject to restrictions. DESC does not offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. DESC had margin assets of $ 1 million and $ 11 million associated with cash collateral at December 31, 2022 and 2021, respectively, reflected in other current assets in the Consolidated Balance Sheets. DESC had no margin liabilities associated with cash collateral at December 31, 2022 and 2021. See Note 8 for further information about derivatives. To manage price and interest rate risk, DESC holds derivative instruments that are not designated as hedges for accounting purposes. However, to the extent DESC does not hold offsetting position for such derivatives, it believes these instruments represent economic hedges that mitigate its exposure to fluctuations in commodity prices or interest rates. All income statement activity, including amounts realized upon settlement, is presented in operating expenses and interest charges based on the nature of the underlying risk. For derivative instruments that are not accounted for as cash flow hedges, the cash flows from the derivatives are classified in operating cash flows. Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities. Realized gains or losses on the derivative instruments are generally recognized when the related transactions impact earnings. DERIVATIVE INSTRUMENTS DESIGNATED AS HEDGING INSTRUMENTS In accordance with accounting guidance pertaining to derivatives and hedge accounting, DESC designates a portion of their derivative instruments as cash flow hedges for accounting purposes. For derivative instruments that are accounted for as cash flow hedges, the cash flows from the derivatives and from the related hedged items are classified in operating cash flows. Cash Flow Hedges - DESC uses interest rate swaps to hedge its exposure to variable interest rates on long-term debt. For transactions in which DESC is hedging the variability of cash flows, changes in the fair value of the derivatives are reported in regulatory assets or liabilities. Any derivative gains or losses reported in regulatory assets or liabilities are reclassified to earnings when the forecasted item is included in earnings, or earlier, if it becomes probable that the forecasted transaction will not occur. For cash flow hedge transactions, hedge accounting is discontinued if the occurrence of the forecasted transaction is no longer probable. Pursuant to regulatory orders, interest rate derivatives entered into by DESC after October 2013 were not designated for accounting purposes as cash flow hedges, and fair value changes and settlement amounts related to them have been recorded as regulatory assets and liabilities. Settlement losses on swaps generally have been amortized over the lives of subsequent debt issuances, and gains have been amortized to interest charges or have been applied as otherwise directed by the South Carolina Commission. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. However, the use of a mid-market pricing convention (the mid-point between bid and ask prices) is permitted. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of DESC’s own nonperformance risk on its liabilities. Fair value measurements assume that the transaction occurs in the principal market for the asset or liability (the market with the most volume and activity for the asset or liability from the perspective of the reporting entity), or in the absence of a principal market, the most advantageous market for the asset or liability (the market in which the reporting entity would be able to maximize the amount received or minimize the amount paid). DESC applies fair value measurements to certain assets and liabilities including commodity and interest rate derivative instruments. DESC applies credit adjustments to its derivative fair values in accordance with the requirements described above. Inputs and Assumptions Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, price information is sought from external sources, including industry publications, and to a lesser extent, broker quotes. When evaluating pricing information provided by Designated Contract Market settlement pricing, other pricing services, or brokers, DESC considers the ability to transact at the quoted price, i.e. if the quotes are based on an active market or an inactive market and to the extent which pricing models are used, if pricing is not readily available. If pricing information from external sources is not available, or if DESC believes that observable pricing is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases the unobservable inputs are developed and substantiated using historical information, available market data, third-party data and statistical analysis. Periodically, inputs to valuation models are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships and changes in third-party sources. The inputs and assumptions used in measuring fair value include the following: Derivative Contracts Inputs and assumptions Commodity Interest Rate Forward commodity prices X Transaction prices X Volumes X Commodity location X Interest rates X Interest rate curves X Credit quality of counterparties and DESC X X Credit enhancements X X Time value X X Notional value X Levels DESC utilizes the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1-Quoted prices (unadjusted) in active markets for identical assets and liabilities that they have the ability to access at the measurement date. • Level 2-Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include interest rate swaps. • Level 3-Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. Instruments categorized in Level 3 for DESC consist of long-dated commodity derivatives. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. Debt Issuance Costs DESC defers and amortizes debt issuance costs and debt premiums or discounts over the expected lives of the respective debt issues, considering maturity dates and, if applicable, redemption rights held by others. Deferred debt issuance costs are recorded as a reduction in long-term debt in the Consolidated Balance Sheets. Amortization of the issuance costs is reported as interest charges. As permitted by regulatory authorities, gains or losses resulting from the refinancing or redemption of debt that are probable of recovery through future rates are deferred and amortized. Environmental An environmental assessment program is maintained to identify and evaluate current and former operations sites that could require environmental clean-up. As site assessments are initiated, estimates are made of the amount of expenditures, if any, deemed necessary to investigate and remediate each site. Environmental remediation liabilities are accrued when the criteria for loss contingencies are met. These estimates are refined as additional information becomes available; therefore, actual expenditures could differ significantly from the original estimates. Probable and estimable costs are accrued related to environmental sites on an undiscounted basis. Amounts estimated and accrued to date for site assessments and clean-up relate solely to regulated operations. Amounts expected to be recovered through rates are recorded in regulatory assets and, if applicable, amortized over approved amortization periods. Other environmental costs are expensed as incurred. Statement of Operations Presentation Revenues and expenses arising from regulated businesses are presented within operating income, and all other activities are presented within other income (expense), net. Operating Revenue Operating revenue is recorded on the basis of services rendered, commodities delivered, or contracts settled and includes amounts yet to be billed to customers. DESC collects sales, consumption, consumer utility taxes and sales taxes; however, these amounts are excluded from revenue and are recorded as liabilities until they are remitted to the respective taxing authority. The primary types of sales and service activities reported as operating revenue for DESC are as follows: Revenue from Contracts with Customers • Regulated electric sales consist primarily of state-regulated retail electric sales, and federally-regulated wholesale electric sales and electric transmission services; • Regulated gas sales consist primarily of state-regulated natural gas sales and related distribution services; and • Other regulated revenue consists primarily of miscellaneous service revenue from electric and gas distribution operations and sales of excess electric capacity and other commodities. Other Revenue • Other revenue consists primarily of alternative revenue programs, gains and losses from derivative instruments not subject to hedge accounting and lease revenues. DESC records refunds to customers as required by the South Carolina Commission as a reduction to regulated electric sales or regulated gas sales, as applicable. Revenues from electric and gas sales are recognized over time, as the customers of DESC consume gas and electricity as it is delivered. Sales of products and services typically transfer control and are recognized as revenue upon delivery of the product or service. The customer is able to direct the use of, and obtain substantially all of the benefits from, the product at the time the product is delivered. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. Payment for most sales and services va |
Rate and Other Regulatory Matte
Rate and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Rate and Other Regulatory Matters | 3. RATE AND OTHER REGULATORY MATTERS Regulatory Matters Involving Potential Loss Contingencies As a result of issues generated in the ordinary course of business, DESC is 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 DESC to estimate a range of possible loss. For regulatory matters that DESC 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 DESC is able to estimate a range of possible loss. For regulatory matters that DESC is 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 DESC’s 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 DESC’s financial position, liquidity or results of operations. 2017 Tax Reform Act DESC’s provision of electric transmission service is pursuant to a FERC approved formula rate. In December 2019, FERC issued an order requiring transmission providers with transmission formula rates to account for the impacts of the 2017 Tax Reform Act on rates charged to customers. The order requires companies to include a mechanism to decrease or increase their income tax allowances to account for the 2017 Tax Reform Act and any other future changes in tax law, and to submit annual information reflecting the amortization of these excess deferred income taxes. DESC submitted a proposed update to its formula rate to FERC in May 2020, and DESC amended its proposed update in October 2021 and July 2022. In November 2022, FERC accepted DESC's proposed update, as amended, effective January 2020, which did not result in any impact to DESC’s Consolidated Financial Statements. Other Regulatory Matters South Carolina Electric Base Rate Case In August 2020, DESC filed its retail electric base rate case and schedules with the South Carolina Commission. In July 2021, DESC, the South Carolina Office of Regulatory Staff and other parties of record filed a comprehensive settlement agreement with the South Carolina Commission for approval. The comprehensive settlement agreement provided for a non-fuel, base rate increase of $ 62 million (resulting in a net increase of $ 36 million after considering an accelerated amortization of certain excess deferred income taxes) commencing with bills issued on September 1, 2021 and an authorized earned ROE of 9.50 %. Additionally, DESC agreed to commit up to $ 15 million to forgive retail electric customer balances that were more than 60 days past due as of May 31, 2021 and provide $ 15 million for energy efficiency upgrades and critical health and safety repairs to customer homes. Pursuant to the comprehensive settlement agreement, DESC would not file a retail electric base rate case prior to July 1, 2023, such that new rates would not be effective prior to January 1, 2024, absent unforeseen extraordinary economic or financial conditions that may include changes in corporate tax rates. In July 2021, the South Carolina Commission approved the comprehensive settlement agreement and issued its final order in August 2021. In connection with this matter, DESC recorded charges of $ 249 million ($ 187 million after-tax) reflected within impairment of assets and other charges (reflected in the Corporate and Other segment), including $ 237 million of regulatory assets associated with DESC’s purchases of its first mortgage bonds during 2019 that are no longer probable of recovery under the settlement agreement, and $ 18 million ($ 14 million after-tax) reflected within other income (expense), net in its Consolidated Statements of Income for the year ended December 31, 2021. Electric – 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 2022, 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 2022. DESC also proposed to apply approximately $ 66 million representing the net balance of funds associated with the monetization of the bankruptcy settlement with Toshiba following the satisfaction of liens against NND Project property recorded in regulatory liabilities, as a reduction to its under-collected base fuel cost balance. In addition, DESC proposed an increase to its variable environmental and avoided capacity cost component. The net effect is a proposed annual increase of $ 143 million. In April 2022, the South Carolina Commission approved the filing. In August 2022, DESC filed an application with the South Carolina Commission seeking a mid-period adjustment to increase the base fuel component of retail electric rates for the recovery of electric fuel costs. The application requested an increase of the base fuel cost component of $ 399 million, with rates expected to be effective with the first billing cycle of January 2023. In November 2022, DESC, the South Carolina Office of Regulatory Staff and other parties of record filed a stipulation agreement with the South Carolina Commission for approval that reflects updated fuel cost experience and forecasts. The stipulation agreement proposes an increase of the base fuel cost component to be effective with the first billing cycle of January 2023, with an estimated annual increase of $ 168 million. In December 2022, the South Carolina Commission approved the stipulation agreement and issued a final order. 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. In addition, DESC proposed a decrease to its variable environmental and avoided capacity cost component. The net effect is a proposed annual increase of $ 176 million. This matter is pending. Electric – Other DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January 2022, DESC filed an application with the South Carolina Commission seeking approval to recover $ 60 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. In April 2022, the South Carolina Commission approved the request, effective with the first billing cycle of May 2022. In January 2023, DESC filed an application with the South Carolina Commission seeking approval to recover $ 46 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. This matter is pending. 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 April 2022, the South Carolina Commission approved DESC's requested adjustment to this rider to decrease annual revenue by $ 12 million. In February 2023, DESC requested that the South Carolina Commission approve an adjustment to this rider to increase annual revenue by $ 24 million. This matter is pending. Natural Gas Rates In November 2021, DESC filed an application with the South Carolina Commission seeking approval to create DSM programs for DESC's residential and commercial natural gas customers and a new rider to retail gas rates for the recovery of the associated program costs and a shared savings incentive of 9.9 %. The application also includes a notice of intent that DESC would seek to recover the net lost revenues resulting from the proposed DSM programs through the annual Natural Gas Rate Stabilization Act proceeding. In June 2022, the South Carolina Commission voted to approve the proposed DSM programs with a shared savings incentive of 8.14 % with a final order issued in September 2022. In June 2022, DESC filed with the South Carolina Commission its monitoring report for the 12-month period ended March 31, 2022 with a total revenue requirement of $ 553 million. This represents a $ 129 million overall annual increase to its natural gas rates including a $ 16 million base rate increase under the terms of the Natural Gas Rate Stabilization Act effective with the first billing cycle of November 2022. In October 2022, the South Carolina Commission issued an order approving a total revenue requirement of $ 549 million effective with the first billing cycle of November 2022. This represents a $ 125 million overall annual increase to DESC’s natural gas rates including a $ 12 million base rate increase under the terms of the Natural Gas Rate Stabilization Act. DESC's natural gas tariffs include a PGA that provides for the recovery of actual gas costs incurred, including transportation costs. DESC’s gas rates are calculated using a methodology which may adjust the cost of gas monthly based on a 12-month rolling average, and its gas purchasing policies and practices are reviewed annually by the South Carolina Commission. Regulatory Assets and Regulatory Liabilities Rate-regulated utilities recognize in their financial statements certain revenues and expenses in different periods than do other enterprises. As a result, DESC has recorded regulatory assets and regulatory liabilities which are summarized in the following table. Except for NND Project costs and certain other unrecovered plant costs, substantially all regulatory assets are either explicitly excluded from rate base or are effectively excluded from rate base due to their being offset by related liabilities. At December 31, 2022 2021 (millions) Regulatory assets: NND Project costs (1) $ 138 $ 138 Deferred employee benefit plan costs (2) 4 8 Other unrecovered plant (3) 17 16 DSM programs (4) 21 23 Cost of fuel and purchased gas under-collections (5) 508 126 Other 55 50 Regulatory assets - current 743 361 NND Project costs (1) 2,088 2,226 AROs (6) 381 311 Deferred employee benefit plan costs (2) 161 106 Interest rate hedges (7) 169 170 Other unrecovered plant (3) 58 57 DSM programs (4) 41 45 Environmental remediation costs (8) 37 30 Deferred storm damage costs (9) 43 38 Deferred transmission operating costs (10) 75 77 Derivatives (11) 105 125 Other (12) 131 138 Regulatory assets - noncurrent 3,289 3,323 Total regulatory assets $ 4,032 $ 3,684 Regulatory liabilities: Monetization of guaranty settlement (13) $ 67 $ 67 Income taxes refundable through future rates (14) 34 42 Reserve for refunds to electric utility customers (15) 100 113 Derivatives (11) 43 20 Other 7 3 Regulatory liabilities - current 251 245 Monetization of guaranty settlement (13) 702 831 Income taxes refundable through future rates (14) 871 903 Asset removal costs (16) 596 570 Reserve for refunds to electric utility customers (15) 325 425 Derivatives (11) 276 198 Other 15 9 Regulatory liabilities - noncurrent 2,785 2,936 Total regulatory liabilities $ 3,036 $ 3,181 (1) Reflects expenditures associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from electric service customers over a 20 -year period ending in 2039 . (2) Employee benefit plan costs have historically been recovered as they have been recorded under GAAP. Deferred employee benefit plan costs represent amounts of pension and other postretirement benefit costs which were accrued as liabilities and treated as regulatory assets pursuant to FERC guidance, and costs deferred pursuant to specific South Carolina Commission regulatory orders. DESC expects to recover deferred pension costs through utility rates over periods through 2044 . DESC expects to recover other deferred benefit costs through utility rates, primarily over average service periods of participating employees up to 11 years. (3) Represents the carrying value of coal-fired generating units, including related materials and supplies inventory, retired from service prior to being fully depreciated. DESC is amortizing these amounts through cost of service rates following depreciation amounts that were designed to recover the retired units cost over their previous estimated remaining useful lives, which has been estimated to be through 2025 . Based on current projections of remaining decommissioning costs, projected recovery is expected to extend through 2029 . In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advanced Metering Infrastructure project, which are being recovered through rates through 2028 . This amount also includes certain inventory and preliminary survey and investigation charges being amortized over five years related to the transition or conversion from coal to gas fired generation at certain facilities. In addition, reflects an increase of approximately $ 7 million related to the abandonment of certain peaking gas generation facilities, such amounts having been reclassified from property, plant and equipment to noncurrent other unrecovered plant. Unamortized amounts are included in rate base and are earning a current return. (4) Represents deferred costs associated with electric demand reduction programs, and such deferred costs are currently being recovered over three years through an approved rate rider. (5) Represents amounts under- or over-collected from customers pursuant to the cost of fuel components approved by the South Carolina Commission. (6) Represents 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. (7) Represents the changes in fair value and payments made or received upon settlement of certain interest rate derivatives designated as cash flow hedges. The amounts recorded are expected to be amortized to interest expense over the lives of the underlying debt through 2065 . (8) Reflects amounts associated with the assessment and clean-up of sites currently or formerly owned by DESC. Such remediation costs are expected to be recovered over periods of up to 27 years. See Note 12 for additional information. (9) Represents storm restoration costs for which DESC expects to receive future recovery through customer rates over approximately 10 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and are earning a current return. (10) Includes deferred depreciation and property taxes associated with certain transmission assets for which DESC expects recovery from customers through future rates over approximately 42 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and earning a current return. See Note 12 for additional information. (11) 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. (12) Various other regulatory assets are expected to be recovered through rates over varying periods through 2047 . (13) Represents proceeds related to the monetization of the Toshiba Settlement. In accordance with the SCANA Merger Approval Order, this balance, net of amounts that may be required to satisfy liens, will be refunded to electric customers over a 20 -year period ending in 2039 . (14) Includes (i) excess deferred income taxes arising from the remeasurement of deferred income taxes in connection with the enactment of the 2017 Tax Reform Act (certain of which are protected under normalization rules and will be amortized over the remaining lives of related property, and certain of which will be amortized to the benefit of customers over prescribed periods as instructed by regulators) and (ii) deferred income taxes arising from investment tax credits, offset by (iii) deferred income taxes that arise from utility operations that have not been included in customer rates (a portion of which relate to depreciation and are expected to be recovered over the remaining lives of the related property which may range up to 85 years). See Note 7 for additional information. (15) Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited to customers over an estimated 11 -year period effective February 2019 in connection with the SCANA Merger Approval Order. (16) Represents estimated net collections through depreciation rates of amounts to be expended for the removal of assets in the future. Regulatory assets have been recorded based on the probability of their recovery. All regulatory assets represent incurred costs that may be deferred under GAAP for regulated operations. The South Carolina Commission or the FERC has reviewed and approved through specific orders certain of the items shown as regulatory assets. In addition, regulatory assets include, but are not limited to, certain costs which have not been specifically approved for recovery by one of these regulatory agencies. While such costs are not currently being recovered, management believes that they would be allowable under existing rate-making concepts embodied in rate orders or applicable state law and expects to recover these costs through rates in future periods. |
Operating Revenue
Operating Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenues [Abstract] | |
Operating Revenue | 4. OPERATING REVENUE DESC’s operating revenue consists of the following: Year Ended December 31, 2022 2021 2020 (millions) Electric Gas Electric Gas Electric Gas Customer class: Residential $ 1,375 $ 303 $ 1,211 $ 245 $ 1,127 $ 201 Commercial 968 184 834 133 746 103 Industrial 533 166 424 103 341 65 Other 203 23 157 25 123 18 Revenues from contracts with customers 3,079 676 2,626 506 2,337 387 Other revenues 27 1 13 1 15 — Total Operating Revenues $ 3,106 $ 677 $ 2,639 $ 507 $ 2,352 $ 387 Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has already been received from the customer. DESC had contract liability balances of $ 12 million and $ 8 million at December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021, DESC recognized revenue of $ 6 million and $ 4 million, respectively, from the beginning contract liability balances as DESC fulfilled its obligations to provide service to its customers. Contract liabilities are recorded in customer deposits and customer prepayments in the Consolidated Balance Sheets. Contract Costs In limited instances, DESC provides economic development grants intended to support economic growth within DESC’s electric service territory and defers such grants as regulatory assets on the Consolidated Balance Sheets. Whenever these grants are contingent on a customer entering into a long-term electric supply contract with DESC such costs are deferred and amortized on a straight-line basis over the term of the related service contract, which generally ranges from ten to 15 years . Balances and activity related to contract costs deferred as regulatory assets were as follows: Regulatory Assets (millions) 2022 2021 Beginning balance $ 11 $ 12 Amortization ( 2 ) ( 1 ) Ending balance $ 9 $ 11 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Equity | 5. EQUITY For all periods presented, DESC's authorized shares of common stock, no par value, were 50 million, of which 40.3 million were issued and outstanding, and DESC's authorized shares of preferred stock, no par value, were 20 million, of which 1,000 shares were issued and outstanding. All outstanding shares of common and preferred stock are held by SCANA. In 2022, Dominion Energy issued $ 72 million of shares of Dominion Energy common stock to partially satisfy DESC’s remaining obligation under a settlement agreement with the SCDOR discussed in Note 12. In connection with this transaction, DESC recorded an equity contribution from Dominion Energy. In 2021, Dominion Energy issued $ 104 million of shares of Dominion Energy common stock to satisfy DESC’s obligation under a settlement agreement for the FILOT litigation discussed in Note 12. Additionally, in 2021, Dominion Energy issued $ 45 million of shares of Dominion Energy common stock to satisfy DESC’s obligation for the initial payment under a settlement agreement with the SCDOR discussed in Note 12. In connection with these transactions, DESC recorded equity contributions from Dominion Energy. In 2021, DESC returned $ 150 million of capital previously contributed from SCANA which had been funded by Dominion Energy. In 2020, Dominion Energy issued $ 322 million of shares of Dominion Energy common stock in accordance with the settlement agreement associated with the Santee Cooper Ratepayer Case, as discussed in Note 12. In connection with this transaction, DESC recorded an equity contribution from Dominion Energy. DESC’s bond indenture under which it issues first mortgage bonds contains provisions that could limit the payment of cash dividends on its common stock. DESC's bond indenture permits the payment of dividends on DESC's common stock only either (1) out of its Surplus (as defined in the bond indenture) or (2) in case there is no Surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. In addition, pursuant to the SCANA Merger Approval Order, the amount of any DESC dividends paid must be reasonable and consistent with the long-term payout ratio of the electric utility industry and gas distribution industry. At December 31, 2022, DESC’s retained earnings exceed the balance established by the Federal Power Act as a reserve on earnings attributable to hydroelectric generation plants. As a result, DESC is permitted to pay dividends without additional regulatory approval provided that such amounts would not bring the retained earnings balance below the established threshold. |
Long-Term and Short-Term Debt
Long-Term and Short-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term and Short-Term Debt | 6. LONG-TERM AND SHORT-TERM DEBT Long-term debt by type with related weighted-average coupon rates and maturities at December 31, 2022 and 2021 is as follows: At December 31, 2022 (1) 2022 2021 (millions, except percentages) DESC: First Mortgage Bonds, 2.30 % to 6.625 %, due 2028 to 2065 5.09 % $ 3,634 $ 3,634 Tax-Exempt Financings: (2) Variable rate due 2038 3.70 % 35 35 3.625 % and 4.00 %, due 2028 and 2033 3.90 % 54 54 Other 3.63 % 1 1 GENCO: Tax-Exempt Financing, variable rate due 2038 3.70 % 33 33 Affiliated note, 3.05 % due 2024 3.05 % 230 230 Total principal 3,987 3,987 Securities due within one year — — Unamortized discount, premium and debt issuance costs, net ( 32 ) ( 33 ) Finance leases 6 10 Total long-term debt $ 3,961 $ 3,964 (1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2022 . (2) Industrial revenue bonds totaling $ 68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2023. Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2022, were as follows: (millions, except percentages) 2023 2024 2025 2026 2027 Thereafter Total First Mortgage Bonds $ — $ — $ — $ — $ — $ 3,634 $ 3,634 Tax-Exempt Financings — — — — — 122 122 Other — 230 — — — 1 231 Total $ — $ 230 $ — $ — $ — $ 3,757 $ 3,987 Weighted-average coupon 3.05 % 5.05 % Substantially all of DESC’s electric utility plant is pledged as collateral in connection with long-term debt. DESC is subject to a bond indenture dated April 1, 1993 (Mortgage) covering substantially all of its electric properties under which all of its first mortgage bonds (Bonds) have been issued. Bonds may be issued under the Mortgage in an aggregate principal amount not exceeding the sum of (1) 70 % of Unfunded Net Property Additions (as therein defined), (2) the aggregate principal amount of retired Bonds and (3) cash deposited with the trustee. Bonds, other than certain Bonds issued on the basis of retired Bonds, may be issued under the Mortgage only if Adjusted Net Earnings (as therein defined) for 12 consecutive months out of the 18 months immediately preceding the month of issuance are at least twice the annual interest requirements on all outstanding Bonds and Bonds to be issued (Bond Ratio). For the year ended December 31, 2022, the Bond Ratio was approximately 7 . Short-Term Debt DESC's short-term financing is supported through its access as co-borrower to Dominion Energy’s $ 6.0 billion joint revolving credit facility, which can be used for working capital, as support for the combined commercial paper programs of DESC, Dominion Energy, Virginia Power and Questar Gas, and for other general corporate purposes. DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, were as follows: (millions) Facility Limit Outstanding (1) Outstanding At December 31, 2022 Joint revolving credit facility (2) $ 1,000 $ 249 $ — At December 31, 2021 Joint revolving credit facility (2) $ 1,000 $ — $ — (1) The weighted-average interest rate of the outstanding commercial paper supported by the credit facility was 4.76 % at December 31 2022. (2) A maximum of $ 1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2022, the sub-limit for DESC was $ 500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or 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 $ 1.0 billion (or the sub-limit, whichever is less) of letters of credit. In March 2021, FERC granted DESC authority through March 2023 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 2021, FERC granted GENCO authority through March 2023 to issue short-term indebtedness not to exceed $ 200 million outstanding with maturity dates of one year or less. In January 2023, DESC and GENCO applied to FERC for a two-year short-term borrowing authorization. The applications are pending. DESC is obligated with respect to an aggregate of $ 68 million of industrial revenue bonds which are secured by letters of credit. These letters of credit expire, subject to renewal, in the fourth quarter of 2023. DESC has FERC approval to enter into an inter-company credit agreement with Dominion Energy under which DESC may have short-term borrowings outstanding up to $ 900 million. At December 31, 2022 and 2021, DESC had borrowings outstanding under this credit agreement totaling $ 769 million and $ 415 million, respectively, which are recorded in affiliated and related party payables in DESC’s Consolidated Balance Sheets. For the years ended December 31, 2022, 2021 and 2020, DESC recorded interest charges of $ 19 million, less than $ 1 million and $ 7 million, respectively. Fuel Company and GENCO participated in a SCANA utility money pool until January 2021, when that utility money pool was closed. Money pool borrowings and investments bore interest at short-term market rates. For the years ended December 31, 2021 and 2020, DESC recorded interest income from money pool transactions of less than $ 1 million and $ 2 million, respectively, and for the same periods DESC recorded interest expense from money pool transactions of less than $ 1 million and $ 2 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities. The interpretation of tax laws involves uncertainty, since tax authorities may interpret the laws differently. DESC is routinely audited by federal and state tax authorities. Ultimate resolution of income tax matters may result in favorable or unfavorable impacts to net income and cash flows, and adjustments to tax-related assets and liabilities could be material. As indicated in Note 2, DESC’s operations, including accounting for income taxes, are subject to regulatory accounting treatment. See Note 3 for more information and current year developments. Details of income tax expense for continuing operations including noncontrolling interests were as follows: Year Ended December 31, 2022 2021 2020 (millions) Current: Federal $ ( 69 ) $ ( 52 ) $ ( 139 ) State ( 3 ) ( 39 ) 3 Total current benefit ( 72 ) ( 91 ) ( 136 ) Deferred: Federal Taxes before operating loss carryforwards and investment tax credits 135 61 158 Tax utilization expense of operating loss carryforwards 33 34 33 State 36 7 17 Total deferred expense 204 102 208 Investment tax credit-amortization ( 1 ) ( 2 ) ( 1 ) Total income tax expense $ 131 $ 9 $ 71 Subsequent to the SCANA Combination, DESC’s annual utilization of its net operating losses are restricted by the tax law, however in certain circumstances the utilization may be increased if SCANA recognizes built-in gains on certain sales of assets. For continuing operations including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to DESC’s effective income tax rate as follows: Year Ended December 31, 2022 2021 2020 U.S. statutory rate 21.0 % 21.0 % 21.0 % Increases (reductions) resulting from: State taxes, net of federal benefit 4.7 5.6 4.2 AFUDC - equity — ( 0.4 ) ( 0.1 ) Amortization of federal investment tax credits ( 0.2 ) ( 0.6 ) ( 0.4 ) Reversal of excess deferred income taxes ( 4.6 ) ( 8.1 ) ( 6.0 ) Changes in unrecognized tax benefits — ( 15.8 ) — Prior period adjustments — 1.6 — Other ( 0.2 ) 0.5 0.1 Effective tax rate 20.7 % 3.8 % 18.8 % In December 2021, unrecognized tax benefits related to several state uncertain tax positions were effectively settled through negotiations with the taxing authority. Management believed it was reasonably possible these unrecognized tax benefits could decrease through settlement negotiations or payments during 2021, however no income tax benefits could be recognized unless or until the positions were effectively settled. Resolution of these uncertain tax positions decreased income tax expense by $ 38 million. DESC’s deferred income taxes consist of the following: At December 31, 2022 2021 (millions) Deferred income taxes: Total deferred income tax assets $ 892 $ 1,015 Total deferred income tax liabilities 2,107 1,974 Total net deferred income tax liabilities $ 1,215 $ 959 Total deferred income taxes: Depreciation method and plant basis differences $ 1,164 $ 1,139 Excess deferred income taxes ( 219 ) ( 228 ) Unrecovered nuclear plant cost 479 508 DESC rate refund ( 89 ) ( 113 ) Toshiba settlement ( 162 ) ( 189 ) Nuclear decommissioning ( 44 ) ( 54 ) Deferred state income taxes 275 226 Federal benefit of deferred state income taxes ( 60 ) ( 47 ) Deferred fuel, purchased energy and gas costs 107 27 Pension benefits 51 35 Other postretirement benefits ( 32 ) ( 35 ) Loss and credit carryforwards ( 313 ) ( 343 ) Other 58 33 Total net deferred income tax liabilities $ 1,215 $ 959 Deferred investment tax credits-regulated operations 15 16 Total deferred taxes and deferred investment tax credits $ 1,230 $ 975 At December 31, 2022, DESC had the following deductible loss and credit carryforwards: (millions) Deductible Amount Deferred Tax Asset Expiration Period Federal losses $ 731 $ 153 2037 Federal production and other credits — 29 2035 - 2042 State losses 2,779 139 2037 - 2042 State investment and other credits — 32 2026 - 2032 Total $ 3,510 $ 353 A reconciliation of changes in DESC’s unrecognized tax benefits follows: (millions) 2022 2021 2020 Beginning balance $ 62 $ 138 $ 132 Increases-prior period positions 6 6 5 Decreases-prior period positions ( 1 ) ( 57 ) — Increases-current period positions 1 1 1 Settlements with tax authorities — ( 26 ) — Ending balance $ 68 $ 62 $ 138 Certain unrecognized tax benefits, or portions thereof, if recognized, would affect the effective tax rate. Changes in these unrecognized tax benefits may result from remeasurement of amounts expected to be realized, settlements with tax authorities and expiration of statutes of limitations. If recognized, all the unrecognized tax benefits would impact the effective tax rate. The statute is closed for IRS examination of years prior to 2013. The IRS is currently examining DESC’s federal returns from 2013 through 2017 . DESC is no longer subject to state and local income tax examinations by tax authorities for years prior to 2019. 39 million within the next twelve months. If such changes were to occur, other than revisions of the accrual for interest on tax underpayments and overpayments, earnings could increase by $ 26 million. Otherwise, with regard to 2022 and prior years, DESC cannot estimate the range of reasonably possible changes to unrecognized tax benefits that may occur in 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. DERIVATIVE FINANCIAL INSTRUMENTS See Note 2 for DESC’s accounting policies, objectives, and strategies for using derivative instruments. See Notes 2 and 9 for further 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. Certain of DESC’s derivative instruments contain credit-related contingent provisions. These provisions require DESC to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying the instruments that are in a liability position and not fully collateralized with cash were fully triggered as of December 31, 2022 and 2021, DESC would have been required to post $ 1 million and $ 8 million, respectively, of additional collateral to its counterparties. 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. DESC had posted $ 1 million and $ 11 million, respectively, of collateral at December 31, 2022 and 2021 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. 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 as of December 31, 2022 and 2021 was $ 2 million and $ 19 million, respectively, which does not include the impact of any offsetting asset positions. The table below presents derivative balances by type of financial instrument, if the gross amounts recognized in the Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid. DESC’s commodity derivative assets are not subject to a master netting agreement or similar arrangement. December 31, 2022 December 31, 2021 Gross Amounts Not Offset Gross Amounts Not Offset (millions) Gross Assets Financial Cash Net Gross Assets Financial Cash Net Interest rate contracts: Over-the-counter $ 1 $ — $ — $ 1 $ — $ — $ — $ — Total derivatives $ 1 $ — $ — $ 1 $ — $ — $ — $ — December 31, 2022 December 31, 2021 Gross Amounts Not Offset Gross Amounts Not Offset (millions) Gross Financial Cash Net Gross Financial Cash Net Interest rate contracts: Over-the-counter $ 2 $ — $ 1 $ 1 $ 19 $ — $ 11 $ 8 Total derivatives $ 2 $ — $ 1 $ 1 $ 19 $ — $ 11 $ 8 Volumes The following table presents the volume of derivative activity at December 31, 2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions. (millions) Current Noncurrent Electricity (MWh): Fixed price 2 24 Interest rate (1) $ — $ 71 (1) Maturity is determined based on final settlement period. Fair Value and Gains and Losses on Derivative Instruments The following table presents the fair values of derivatives and where they are presented in the Consolidated Balance Sheets: (millions) Fair Value - Fair Value - Total Fair At December 31, 2022 Current Assets Commodity $ — $ 41 $ 41 Total current derivative assets (1) — 41 41 Noncurrent Assets Commodity — 210 210 Interest rate — 1 1 Total noncurrent derivative assets (2) — 211 211 Total derivative assets $ — $ 252 $ 252 Noncurrent Liabilities Interest rate $ 2 $ — $ 2 Total noncurrent derivative liabilities (4) 2 — 2 Total derivative liabilities $ 2 $ — $ 2 At December 31, 2021 Current Assets Commodity $ — $ 18 $ 18 Total current derivative assets (1) — 18 18 Noncurrent Assets Commodity — 130 130 Total noncurrent derivative assets (2) — 130 130 Total derivative assets $ — $ 148 $ 148 Current Liabilities Interest rate $ 1 $ 1 $ 2 Total current derivative liabilities (3) 1 1 2 Noncurrent Liabilities Interest rate 11 6 17 Total noncurrent derivative liabilities (4) 11 6 17 Total derivative liabilities $ 12 $ 7 $ 19 (1) Current derivative assets are presented in other current assets in DESC’s Consolidated Balance Sheets. (2) Noncurrent derivative assets are presented in other deferred debits and other assets in DESC’s Consolidated Balance Sheets. (3) Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets. (4) Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in DESC’s Consolidated Balance Sheets. The following tables present the gains and losses on derivatives, as well as where the associated activity is presented in the Consolidated Balance Sheets and Statements of Comprehensive Income: Derivatives in Cash Flow Hedging Relationships (millions) Increase (1) Year Ended December 31, 2022 Derivative type and location of gains (losses): Interest rate $ 11 Total $ 11 Year Ended December 31, 2021 Derivative type and location of gains (losses): Interest rate $ 9 Total $ 9 Year Ended December 31, 2020 Derivative type and location of gains (losses): Interest rate $ 1 Total $ 1 (1) 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 Consolidated Statements of Comprehensive Income. Derivatives Not designated as Hedging Instruments (millions) Amount of Gain (Loss) (1) Year Ended December 31, 2022 2021 2020 Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 77 $ 8 $ — Interest rate contracts: Interest charges ( 2 ) ( 2 ) ( 1 ) Total $ 75 $ 6 $ ( 1 ) (1) Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Consolidated Statements of Comprehensive Income. |
Fair Value Measurements, Includ
Fair Value Measurements, Including Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Including Derivatives | 9. FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES DESC's fair value measurements are made in accordance with the policies discussed in Note 2. See Note 8 for additional information about DESC’s derivative and hedge accounting activities. Level 3 Valuations DESC enters into physical forwards contracts, 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 forwards contracts. The discounted cash flow model for forwards calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return, and credit spreads. For Level 3 fair value measurements, certain forward market prices are considered unobservable. The following table presents DESC’s quantitative information about Level 3 fair value measurements at December 31, 2022. The range and weighted average are presented in dollars for market price inputs. Fair Value (millions) Valuation Techniques Unobservable Input Range Weighted Average (1) Assets Physical forwards: Electricity $ 251 Discounted cash flow Market price (per MWh) (2) 27 - 110 51 Total assets $ 251 (1) Averages weighted by volume. (2) Represents market prices beyond defined terms for Levels 1 and 2. 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) Nonrecurring Fair Value Measurement During the third quarter of 2020, DESC determined that certain of its nonutility property was impaired and recorded a $ 12 million charge ($ 9 million after-tax) within impairments and other charges in its Consolidated Statements of Comprehensive Income (reflected in the Corporate and Other Segment) to adjust the property down to its estimated fair value of $ 6 million. The fair value determinations are considered Level 2 fair value measurements due to the use of real estate appraised values. Recurring Fair Value Measurements Fair value disclosures for assets held in DESC’s pension plan are presented in Note 11. The following table presents DESC’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions: Level 1 Level 2 Level 3 Total (millions) At December 31, 2022 Assets Commodity $ — $ — $ 251 $ 251 Interest rate — 1 — 1 Total assets $ — $ 1 $ 251 $ 252 Liabilities Interest rate $ — $ 2 $ — $ 2 Total liabilities $ — $ 2 $ — $ 2 At December 31, 2021 Assets Commodity $ — $ — $ 148 $ 148 Total assets $ — $ — $ 148 $ 148 Liabilities Interest rate $ — $ 19 $ — $ 19 Total liabilities $ — $ 19 $ — $ 19 The following table presents the net change in DESC's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category. There were no net changes in assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category for the year ended December 31, 2020. 2022 2021 (millions) Balance at January 1, $ 148 $ — Total realized and unrealized gains (losses): Included in earnings: Purchased power 77 8 Included in regulatory assets/liabilities 103 148 Settlements ( 77 ) ( 8 ) Balance at December 31, $ 251 $ 148 There are no unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the years ended December 31, 2022 and 2021. Fair Value of Financial Instruments Substantially all of DESC’s 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 financial instruments classified within current assets and current liabilities are representative of fair value because of the short-term nature of these instruments. For financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows: At December 31, 2022 2021 (millions) Carrying Estimated (1) Carrying Estimated (1) Long-term debt (2) $ 3,725 $ 3,614 $ 3,724 $ 4,831 Affiliated long-term debt 230 230 230 230 (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. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 10. ASSET RETIREMENT OBLIGATIONS A liability for the present value of an ARO is recognized when incurred if the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional ARO is factored into the measurement of the liability when sufficient information exists, but such uncertainty is not a basis upon which to avoid liability recognition. The legal obligations associated with the retirement of long-lived tangible assets that result from their acquisition, construction, development and normal operation relate primarily to DESC’s regulated utility operations. As of December 31, 2022 and 2021, DESC has recorded AROs of $ 299 million and $ 287 million, respectively, for nuclear plant decommissioning. In addition, DESC has recorded AROs of $ 329 million and $ 312 million at December 31, 2022 and 2021, respectively, for other conditional obligations primarily related to other generation and distribution properties, including gas pipelines. All of the amounts recorded are based upon estimates which are subject to varying degrees of precision, particularly since such payments will be made many years in the future. A reconciliation of the beginning and ending aggregate carrying amount of AROs is as follows: (millions) 2022 2021 Beginning balance $ 599 $ 597 Liabilities incurred 6 — Liabilities settled ( 1 ) — Accretion expense 26 25 Revisions in estimated cash flows (1) ( 2 ) ( 23 ) Ending balance $ 628 $ 599 (1) The decrease in 2021 is due to the remeasurement of gas pipeline AROs. |
Employee Benefit Plans and Equi
Employee Benefit Plans and Equity Compensation Plan | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans and Equity Compensation Plan | 11. EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN Pension and Other Postretirement Benefit Plans SCANA sponsors a noncontributory defined benefit pension plan covering regular, full-time employees hired before January 1, 2014. DESC participates in SCANA's pension plan. SCANA’s policy has been to fund the plan as permitted by applicable federal income tax regulations, as determined by an independent actuary. The pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and all eligible employees hired subsequently. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits. Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment. Benefits under the cash balance formula continued to accrue through December 31, 2020, after which no benefits accrue except for those participants under the cash balance formula who continue to earn interest credits. Benefits under the final average pay formula will continue to accrue through December 31, 2023, after which date no benefits will be accrued. Once the benefits under SCANA's pension plan no longer accrue, eligible participants will accrue benefits under a cash balance formula within the Dominion Energy Pension Plan, a qualified defined benefit pension plan sponsored by Dominion Energy. In addition to pension benefits, SCANA provides certain unfunded postretirement health care and life insurance benefits to certain active and retired employees. DESC participates in these programs. Retirees hired before January 1, 2011 share in a portion of their medical care cost, while employees hired subsequently are responsible for the full cost of retiree medical benefits elected by them. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits. The same benefit formula applies to all SCANA subsidiaries participating in the parent sponsored plans and, with regard to the pension plan, there are no legally separate asset pools. The postretirement benefit plans are accounted for as multiple employer plans. Changes in Benefit Obligations The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for pension benefits and the accumulated benefit obligation for other postretirement benefits are presented below. Pension Benefits Other Postretirement Benefits (millions) 2022 2021 2022 2021 Beginning balance $ 702 $ 742 $ 171 $ 184 Service cost 8 9 1 1 Interest cost 21 20 6 6 Actuarial (gain) loss ( 105 ) ( 28 ) ( 44 ) ( 8 ) Benefits paid ( 46 ) ( 41 ) ( 13 ) ( 12 ) Ending balance $ 580 $ 702 $ 121 $ 171 The accumulated benefit obligation for pension benefits for DESC was $ 578 million and $ 697 million at December 31, 2022 and 2021, respectively. The accumulated pension benefit obligation differs from the projected pension benefit obligation above in that it reflects no assumptions about future compensation levels. Significant assumptions used to determine the above benefit obligations are as follows: Pension Benefits Other Postretirement Benefits 2022 2021 2022 2021 Annual discount rate used to determine benefit obligation 5.69 % 3.06 % 5.70 % 3.11 % Assumed annual rate of future salary increases for projected 3.93 % 3.71 % N/A N/A Crediting interest rate for cash balance plans 4.44 % 1.81 % N/A N/A DESC’s pension benefit obligations include a gain of $ 105 million in 2022 resulting primarily from an increase in the discount rate and a gain of $ 29 million in 2021 resulting primarily from an increase in the discount rate and a completed experience study. Actuarial gains recognized in DESC’s other postretirement benefit obligations include a $ 44 million gain in 2022 and a $ 8 million gain in 2021 resulting from an increase in the discount rate. A 6.25 % annual rate of increase in the per capita cost of covered health care benefits was assumed for 2022. The rate was assumed to decrease gradually to 5.0 % in 2026 and to remain at that level thereafter. Funded Status Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Fair value of plan assets $ 561 $ 768 $ — $ — Benefit obligation 580 702 121 171 Funded status $ ( 19 ) $ 66 $ ( 121 ) $ ( 171 ) Amounts recognized on the consolidated balance sheets were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Noncurrent assets $ — $ 66 $ — $ — Current liability — — ( 11 ) ( 10 ) Noncurrent liability ( 19 ) — ( 110 ) ( 161 ) Amounts recognized in AOCI were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Net actuarial (gain) loss $ 3 $ 1 $ ( 1 ) $ — Amounts recognized in regulatory assets were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Net actuarial (gain) loss $ 164 $ 70 $ ( 46 ) $ ( 5 ) In connection with the joint ownership of Summer, costs related to pensions attributable to Santee Cooper as of both December 31, 2022 and 2021 totaled $ 21 million and $ 14 million and were recorded within deferred debits. Costs related to other postretirement benefits attributable to Santee Cooper as of December 31, 2022 and 2021 totaled $ 9 million and $ 12 million were recorded within deferred debits. Changes in Fair Value of Plan Assets Pension Benefits (millions) 2022 2021 Beginning balance $ 768 $ 747 Actual return (loss) on plan assets ( 161 ) 62 Benefits paid ( 46 ) ( 41 ) Ending balance $ 561 $ 768 Investment Policies and Strategies Strategic investment policies are established for DESC’s prefunded benefit plans based upon periodic asset/liability studies. Factors considered in setting the investment policy include employee demographics, liability growth rates, future discount rates, the funded status of the plans and the expected long-term rate of return on plan assets. Deviations from the plans’ strategic allocation are a function of DESC’s assessments regarding short-term risk and reward opportunities in the capital markets and/or short-term market movements which result in the plans’ actual asset allocations varying from the strategic target asset allocations. Through periodic rebalancing, actual allocations are brought back in line with the target. Future asset/liability studies will focus on strategies to further reduce pension and other postretirement plan risk, while still achieving attractive levels of returns. Financial derivatives may be used to obtain or manage market exposures and to hedge assets and liabilities. DESC’s overall objective for investing its pension plan assets is to achieve appropriate long-term rates of return commensurate with prudent levels of risk. To minimize risk, funds are diversified among asset classes, securities, active and passive investment strategies and investment advisors. The strategic target asset allocations for DESC’s pension fund is: 45 % global equities, 53 % fixed income and 2 % cash. Global equities include investments in U.S. and non-U.S. companies, developed and emerging markets and small and large cap companies. The split between U.S. and non-U.S. companies is roughly 60 % U.S./ 40 % Non-U.S. Fixed income includes corporate debt instruments of companies from diversified industries and U.S. Treasuries. Equity and fixed income investments are in individual securities as well as mutual funds. DESC also utilizes common/collective trust funds as an investment vehicle for its defined benefit plans. A common/collective trust fund is a pooled fund operated by a bank or trust company for investment of the assets of various organizations and individuals in a well-diversified portfolio. Common/collective trust funds are funds of grouped assets that follow various investment strategies. For 2023, the expected long-term rate of return on assets will be 7.00 %. DESC determines the expected long-term rates of return on plan assets for its pension plans by using a combination of: • Expected inflation and risk-free interest rate assumptions; • Historical return analysis to determine long term historic returns as well as historic risk premiums for various asset classes; • Expected future risk premiums, asset classes’ volatilities and correlations; • Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and • Investment allocation of plan assets. Fair Value Measurements Assets held by the pension plan are measured at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2022 and 2021, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows: At December 31, 2022 2021 (millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 2 $ — $ 2 $ — $ 1 $ — $ 1 Corporate debt instruments — 137 — 137 — 332 — 332 Government and other debt instruments — 18 — 18 — 67 — 67 Total recorded at fair value $ — $ 157 $ — $ 157 $ — $ 400 $ — $ 400 Assets recorded at NAV (1) Common/collective trust funds 417 387 Total recorded at NAV $ 417 $ 387 Total investments (2) $ 574 $ 787 (1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy. (2) Excludes net assets related to pending sales of securities of $ 1 million, net accrued income of $ 1 million, and includes net assets related to pending purchases of securities of $ 15 million at December 31, 2022. Excludes net assets related to pending sales of securities of $ 4 million, net accrued income of $ 2 million, and includes net assets related to pending purchases of securities of $ 25 million at December 31, 2021. For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. U.S. Treasury securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt instruments and government and other debt instruments are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. In addition, corporate debt instruments include investments in open-end mutual funds registered with the SEC that invest in corporate debt instruments. Common collective trust assets are valued at NAV, which has been determined based on the unit values of the trust funds. Unit values are determined by the organization sponsoring such trust funds by dividing the trust funds’ net assets at fair value by the units outstanding at each valuation date. Expected Cash Flows Total benefits expected to be paid from the pension plan or company assets for the other postretirement benefits plan (net of participant contributions), respectively, are as follows: Expected Benefit Payments (millions) Pension Other 2023 $ 45 $ 11 2024 47 11 2025 47 11 2026 46 11 2027 45 11 2028 - 2032 243 57 Pension Plan Contributions Under its funding policies, DESC evaluates plan funding requirements annually, usually in the fourth quarter after receiving updated plan information from its actuary. Based on the funded status of each plan and other factors, DESC determines the amount of contributions for the current year, if any, at that time. DESC made no contributions to the pension trust in 2022, 2021 or 2020. DESC does not expect to contribute to its qualified pension plan in 2023. Net Periodic Benefit Cost Net periodic benefit cost is recorded utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables. Components of Net Periodic Benefit (Credit) Cost Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Service cost $ 8 $ 9 $ 12 $ 1 $ 1 $ 3 Interest cost 21 20 24 6 6 8 Expected return on assets ( 49 ) ( 48 ) ( 45 ) — — — Amortization of actuarial losses 1 6 6 — — — Settlement loss — — 7 — — — Net periodic benefit (credit) cost $ ( 19 ) $ ( 13 ) $ 4 $ 7 $ 7 $ 11 In connection with regulatory orders, DESC recovers current pension costs through a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations. For retail electric operations, current pension expense is recognized based on amounts collected through a rate rider, and differences between actual pension expense and amounts recognized pursuant to the rider are deferred as a regulatory asset (for under-collections) or regulatory liability (for over-collections) as applicable. In addition, DESC amortizes certain previously deferred pension costs. See Note 3. Other changes in plan assets and benefit obligations recognized in other comprehensive income (net of tax) were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Current year actuarial (gain) loss $ 2 $ ( 3 ) $ 2 $ ( 1 ) $ — $ ( 2 ) Total recognized in other comprehensive income $ 2 $ ( 3 ) $ 2 $ ( 1 ) $ — $ ( 2 ) Other changes in plan assets and benefit obligations recognized in regulatory assets were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Current year actuarial (gain) loss $ 95 $ ( 39 ) $ 1 $ ( 41 ) $ ( 6 ) $ ( 27 ) Amortization of actuarial losses ( 1 ) ( 5 ) ( 6 ) — — ( 1 ) Settlement loss — — ( 6 ) — — — Total recognized in regulatory assets $ 94 $ ( 44 ) $ ( 11 ) $ ( 41 ) $ ( 6 ) $ ( 28 ) Significant assumptions used in determining net periodic benefit cost: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 3.06 % 2.73 % 3.47 % 3.11 % 2.80 % 2.80 % Expected return on plan assets 7.00 % 7.00 % 7.00 % n/a n/a n/a Rate of compensation increase 3.71 % 4.52 % 3.00 % n/a n/a n/a Crediting interest rate for cash balance plans 1.81 % 1.93 % 2.67 % n/a n/a n/a Health care cost trend rate 6.25 % 6.25 % 6.25 % Ultimate health care cost trend rate 5.00 % 5.00 % 5.00 % Year achieved 2026 - 2027 2025 - 2026 2025 - 2026 Participation in Dominion Energy Defined Benefit Plans As discussed above, effective January 2021, DESC employees who had been receiving a cash balance formula became covered by the Dominion Energy Pension Plan. In addition, DESC employees hired in 2021 prior to July 2021 are covered by the Dominion Energy Pension Plan. As a participating employer, DESC is subject to Dominion Energy’s funding policy, which is to contribute annually an amount that is in accordance with ERISA. DESC made contributions of less than $ 1 million to the Dominion Energy Pension Plan during 2022 and DESC made no contributions to the Dominion Energy Pension Plan during 2021. DESC’s net periodic pension cost related to this plan was $ 1 million and $ 3 million in 2022 and 2021, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in DESC’s Consolidated Statements of Income. The funded status of various Dominion Energy subsidiary groups and employee compensation are the basis for determining the share of total pension costs for participating Dominion Energy subsidiaries. During 2022 and 2021, DESC’s pension and other postretirement benefits obligation includes $ 4 million and $ 3 million, respectively, for amounts due to Dominion Energy related to this plan. Dominion Energy holds investments in trusts to fund employee benefit payments for the pension plan in which DESC’s employees participate. 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 that DESC will provide to Dominion Energy for its share of employee benefit plan contributions. 401(k) Retirement Savings Plan Effective January 2021, DESC participates in a defined contribution savings plan sponsored by Dominion Energy. Previously, DESC had participated in a defined contribution plan sponsored by SCANA, which was merged into the Dominion Energy plan in December 2020. DESC recognized employer matching contributions of $ 13 million, $ 11 million, and $ 14 million in 2022, 2021, and 2020, respectively. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES As a result of issues generated in the ordinary course of business, DESC is involved in legal proceedings before various courts and is 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 DESC to estimate a range of possible loss. For such matters that DESC 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 DESC is able to estimate a range of possible loss. For legal proceedings and governmental examinations that DESC is 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. DESC maintains 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 DESC’s 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 DESC’s financial position, liquidity or results of operations. Environmental Matters DESC is 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. From a regulatory perspective, DESC continually monitors and evaluates its current and projected emission levels and strives to comply with all state and federal regulations regarding those emissions. DESC participates in the SO 2 and NO X emission allowance programs with respect to coal plant emissions and also has constructed additional pollution control equipment at its coal-fired electric generating plants. These actions are expected to address many of the rules and regulations discussed herein. 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 DESC’s facilities are subject to the CAA’s permitting and other requirements. 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. Until the case is resolved by the D.C. Circuit and/or the EPA issues new rulemaking, DESC 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 CO 2 equivalent emissions. Until the EPA ultimately takes final action on this rulemaking, DESC cannot predict the impact to its 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, DESC cannot predict the impact to its 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. DESC must comply with applicable aspects of the CWA programs at its 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. DESC has five facilities that are subject to the final regulations. DESC is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to five hydroelectric facilities. DESC anticipates that it may have to install impingement control technologies at certain of these stations that have once-through cooling systems. DESC is 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 DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC. Effluent Limitations Guidelines In September 2015, the EPA released a final rule to revise the ELG Rule. 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 final ELG 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 final ELG 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 DESC’s results of operations, financial condition and/or cash flows, as DESC expects that wastewater treatment technology retrofits and modifications at the Williams and Wateree generating stations will be required, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC. Capacity Use Area In November 2019, a new CUA was established in the counties surrounding the Cope Generating Station (Western Capacity Use Area) under the South Carolina Groundwater Use and Reporting Regulation. Under the regulation any groundwater well in a CUA that withdraws above three million gallons per month must be permitted. The Cope Generating Station is located within this new Western Capacity Use Area. Cope has been using four deep groundwater wells for cooling water and other house loads since 1996. Prior to designation of the new Western Capacity Use Area, the wells at Cope Station were only required to be registered not permitted. As a result of this designation, Cope will need to restore the surface water equipment to operable status to reduce reliance on groundwater wells. This includes completion of 316(b) requirements, (including SCDHEC BACT determination and modification of the station national pollutant discharge elimination system permit) and extensive inspection, repair and/or replacement of the associated surface water withdrawal equipment which has been idle since 1996. While the impacts of this rule change are potentially material to DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC. Waste Management and Remediation The operations of DESC 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, DESC 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, DESC 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. DESC also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under DESC’s insurance policies, rate recovery mechanisms, or both. Except as described below, DESC does not believe these matters will have a material effect on results of operations, financial condition and/or cash flows. DESC has four decommissioned manufactured gas plant sites in South Carolina that are in various states of investigation, remediation and monitoring under work plans approved by, or under review by, the SCDHEC or the EPA. DESC anticipates that activities at these sites will continue through 2025 with a remaining estimated cost of $ 21 million. DESC expects to recover costs arising from the remediation work at all four sites through rate recovery mechanisms and as of December 31, 2022, deferred amounts, net of amounts previously recovered through rates and insurance settlements, totaled $ 38 million and are included in regulatory assets. Ash Pond and Landfill Closure Costs In April 2015, the EPA enacted a final rule regulating CCR landfills, existing ash ponds that still receive and manage CCRs, and inactive ash ponds that do not receive, but still store, CCRs. DESC currently has inactive and existing CCR ponds and CCR landfills subject to the final rule at three different facilities. This rule created a legal obligation for DESC to retrofit or close all of its inactive and existing ash ponds over a certain period of time, as well as perform required monitoring, corrective action, and post-closure care activities as necessary. In December 2016, legislation was enacted that creates a framework for EPA- approved state CCR permit programs. In August 2017, the EPA issued interim guidance outlining the framework for state CCR program approval. The EPA has enforcement authority until state programs are approved. The EPA and states with approved programs both will have authority to enforce CCR requirements under their respective rules and programs. In September 2017, the EPA agreed to reconsider portions of the CCR rule in response to two petitions for reconsideration. In March 2018, the EPA proposed certain changes to the CCR rule related to issues remanded as part of the pending litigation and other issues the EPA is reconsidering. Several of the proposed changes would allow states with approved CCR permit programs additional flexibility in implementing their programs. In July 2018, the EPA promulgated the first phase of changes to the CCR rule. In August 2018, the U.S. Court of Appeals for the D.C. Circuit issued its decision in the pending challenges of the CCR rule, vacating and remanding to the EPA three provisions of the rule. Until this matter is resolved and all phases of the CCR rule are promulgated, DESC is unable to precisely estimate potential incremental impacts or costs related to existing coal ash sites in connection with future implementation of the final CCR rule. While such amounts may be material to DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts. Claims and Litigation The following describes certain legal proceedings involving DESC relating primarily to events occurring before closing of the SCANA Combination. 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, DESC 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 DESC is able to reasonably estimate a probable loss, the Consolidated Balance Sheets at December 31, 2022 and 2021 include reserves of $ 94 million and $ 211 million, respectively, and insurance receivables of $ 68 million and $ 85 million, respectively, included within other receivables. These balances at December 31, 2022 and 2021 include $ 68 million and $ 85 million, respectively, of offsetting reserves and insurance receivables related to personal injury or wrongful death cases which are currently pending. For the year ended December 31, 2022, charges included in DESC’s Consolidated Statements of Comprehensive Income were inconsequential. DESC’s Consolidated Statements of Comprehensive Income for the years ended December 31, 2021 and 2020 include charges of $ 70 million ($ 53 million after-tax) and $ 97 million ($ 73 million after-tax), respectively, within impairment of assets and other charges, reflected in the Corporate and Other segment. SCANA Shareholder Litigation In February 2018, a purported class action was filed against Dominion Energy and certain former directors of SCANA and DESC in the State Court of Common Pleas in Richland County, South Carolina (the Metzler Lawsuit). The plaintiff alleges, among other things, that defendants violated their fiduciary duties to shareholders by executing a merger agreement that would unfairly deprive plaintiffs of the true value of their SCANA stock, and that Dominion Energy aided and abetted these actions. Among other remedies, the plaintiff seeks to enjoin and/or rescind the merger. In February 2018, Dominion Energy removed the case to the U.S. District Court for the District of South Carolina and filed a Motion to Dismiss in March 2018. In September 2019, the U.S. District Court for the District of South Carolina granted the plaintiffs’ motion to consolidate the Metzler Lawsuit with another lawsuit regarding the SCANA Merger Agreement to which DESC is not a party. In October 2019, the plaintiffs filed an amended complaint against certain former directors and executive officers of SCANA and DESC, which stated substantially similar allegations to those in the initial lawsuits as well as an inseparable fraud claim. In November 2019, the defendants filed a motion to dismiss. In April 2020, the U.S. District Court for the District of South Carolina denied the motion to dismiss. In May 2020, SCANA filed a motion to intervene, which was denied in August 2020. In September 2020, SCANA filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. In June 2021, the parties reached an agreement in principle to settle this case, along with a related case to which DESC was not a party, subject to court approval, with no financial impact to DESC. In June 2022, this case was dismissed in connection with court approval of the related case to which DESC was not a party. Employment Class Actions and Indemnification In August 2017, a case was filed in the U.S. District Court for the District of South Carolina on behalf of persons who were formerly employed at the NND Project. In July 2018, the court certified this case as a class action. In February 2019, certain of these plaintiffs filed an additional case, which case has been dismissed and the plaintiffs have joined the case filed August 2017. The plaintiffs allege, among other things, that SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. violated the Worker Adjustment and Retraining Notification Act in connection with the decision to stop construction at the NND Project. The plaintiffs allege that the defendants failed to provide adequate advance written notice of their terminations of employment and are seeking damages, which could be as much as $ 100 million for 100 % of the NND Project. In January 2021, the U.S. District Court for the District of South Carolina granted summary judgment in favor of SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. In February 2021, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. In November 2021, the U.S. Court of Appeals for the Fourth Circuit affirmed the lower court ruling. In March 2022, the deadline to file an appeal to the Supreme Court of the United States expired. In September 2018, a case was filed in the State Court of Common Pleas in Fairfield County, South Carolina by Fluor Enterprises, Inc. and Fluor Daniel Maintenance Services, Inc. against DESC and Santee Cooper. The plaintiffs make claims for indemnification, breach of contract and promissory estoppel arising from, among other things, the defendants' alleged failure and refusal to defend and indemnify the Fluor defendants in the aforementioned case. As a result of the ruling in favor of the defendants in the aforementioned case, DESC was able to resolve Fluor’s claims for an inconsequential amount. 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, resulting in a gain of $ 19 million ($ 14 million after-tax) recorded in other income (expense), net in DESC’s Consolidated Statements of Comprehensive Income for the year ended December 31, 2022. In December 2022, DESC transferred additional utility property with a fair value of $ 3 million to the SCDOR, resulting in an inconsequential gain. In October 2022, DESC filed for approval to transfer the remaining real estate with FERC which was received in November 2022. The transfers of such utility properties are expected to be completed by early 2024 and to result in a gain of approximately $ 20 million upon completion. Matters Fully Resolved Prior to 2022 Ratepayer Class Actions In May 2018, a consolidated complaint against DESC, SCANA and the State of South Carolina was filed in the State Court of Common Pleas in Hampton County, South Carolina (the DESC Ratepayer Case). The plaintiffs alleged, among other things, that DESC was negligent and unjustly enriched, breached alleged fiduciary and contractual duties and committed fraud and misrepresentation in failing to properly manage the NND Project, and that DESC committed unfair trade practices and violated state anti-trust laws. In December 2018, the State Court of Common Pleas in Hampton County entered an order granting preliminary approval of a class action settlement. The court entered an order granting final approval of the settlement in June 2019, which became effective in July 2019. The settlement agreement, contingent upon the closing of the SCANA Combination, provided that SCANA and DESC establish an escrow account and proceeds from the escrow account would be distributed to the plaintiffs, after payment of certain taxes, attorneys' fees and other expenses and administrative costs. The escrow account would include (1) up to $ 2.0 billion, net of a credit of up to $ 2.0 billion in future electric bill relief, which would inure to the benefit of the escrow account in favor of class members over a period of time established by the South Carolina Commission in its order related to matters before the South Carolina Commission related to the NND Project, (2) a cash payment of $ 115 million and (3) the transfer of certain DESC-owned real estate or sales proceeds from the sale of such properties, which counsel for the plaintiffs estimated to have an aggregate value between $ 60 million and $ 85 million. At the closing of the SCANA Combination, SCANA and DESC funded the cash payment portion of the escrow account. In July 2019, DESC transferred $ 117 million representing the cash payment, plus accrued interest, to the plaintiffs. Through August 2020, property, plant and equipment with a net recorded value of $ 22 million had been transferred to the plaintiffs in coordination with the court-appointed real estate trustee to satisfy the settlement agreement. In September 2020, the court entered an order approving a final resolution of the transfer of real estate or sales proceeds with a cash contribution of $ 38.5 million by DESC and the conveyance of property, plant and equipment with a net recorded value of $ 3 million, which was completed by DESC in October 2020. In December 2021, the court approved a motion for and DESC completed the repurchase of $ 8 million of property, plant and equipment previously transferred to the plaintiffs. In September 2017, a purported class action was filed by Santee Cooper ratepayers against Santee Cooper, DESC, Palmetto Electric Cooperative, Inc. and Central Electric Power Cooperative, Inc. in the State Court of Common Pleas in Hampton County, South Carolina (the Santee Cooper Ratepayer Case). The allegations were substantially similar to those in the DESC Ratepayer Case. In March 2020, the parties executed a settlement agreement relating to this matter as well as the Luquire Case and the Glibowski Case described below. The settlement agreement provided that Dominion Energy and Santee Cooper establish a fund for the benefit of class members in the amount of $ 520 million, of which Dominion Energy’s portion was $ 320 million of shares of Dominion Energy common stock. In July 2020, the court issued a final approval of the settlement agreement. In September 2020, Dominion Energy issued $ 322 million of shares of Dominion Energy common stock to satisfy its obligation under the settlement agreement, including interest charges. In July 2019, a similar purported class action was filed by certain Santee Cooper ratepayers against DESC, SCANA, Dominion Energy and former directors and officers of SCANA in the State Court of Common Pleas in Orangeburg, South Carolina (the Luquire Case). In August 2019, DESC, SCANA and Dominion Energy were voluntarily dismissed from the case. The claims were similar to the Santee Cooper Ratepayer Case. In March 2020, the parties executed a settlement agreement as described above relating to this matter as well as the Santee Cooper Ratepayer Case and the Glibowski Case. This case was dismissed as part of the Santee Cooper Ratepayer Case settlement described above. RICO Class Action In January 2018, a purported class action was filed, and subsequently amended, against SCANA, DESC and certain former executive officers in the U.S. District Court for the District of South Carolina (the Glibowski Case). The plaintiff alleged, among other things, that SCANA, DESC and the individual defendants participated in an unlawful racketeering enterprise in violation of RICO and conspired to violate RICO by fraudulently inflating utility bills to generate unlawful proceeds. In March 2020, the parties executed a settlement agreement as described above relating to this matter as well as the Santee Cooper Ratepayer Case and the Luquire Case. This case was dismissed as part of the Santee Cooper Ratepayer Case settlement described above. FILOT Litigation and Related Matters In November 2017, Fairfield County filed a complaint and a motion for temporary injunction against DESC in the State Court of Common Pleas in Fairfield County, South Carolina, making allegations of breach of contract, fraud, negligent misrepresentation, breach of fiduciary duty, breach of implied duty of good faith and fair dealing and unfair trade practices related to DESC’s termination of the FILOT agreement between DESC and Fairfield County related to the NND Project. The plaintiff sought a temporary and permanent injunction to prevent DESC from terminating the FILOT agreement. The plaintiff withdrew the motion for temporary injunction in December 2017. In July 2021, the parties executed a settlement agreement requiring DESC to pay $ 99 million, which could be satisfied in either cash or shares of Dominion Energy common stock. Also in July 2021, the State Court of Common Pleas in Fairfield County, South Carolina approved the settlement. In July 2021, Dominion Energy issued 1.4 million shares of Dominion Energy common stock to satisfy DESC’s obligation under the settlement agreement. Governmental Proceedings and Investigations In September and October 2017, SCANA was served with subpoenas issued by the U.S. Attorney’s Office for the District of South Carolina and the Staff of the SEC’s Division of Enforcement seeking documents related to the NND Project. In February 2020, the SEC filed a complaint against SCANA, two of its former executive officers and DESC in the U.S. District Court for the District of South Carolina alleging that the defendants violated federal securities laws by making false and misleading statements about the NND Project. In April 2020, SCANA and DESC reached an agreement in principle with the Staff of the SEC’s Division of Enforcement to settle, without admitting or denying the allegations in the complaint. In December 2020, the U.S. District Court for the District of South Carolina issued an order approving the settlement which required SCANA to pay a civil monetary penalty totaling $ 25 million, and SCANA and DESC to pay disgorgement and prejudgment interest totaling $ 112.5 million, which disgorgement and prejudgment interest amount were deemed satisfied by the settlements in the SCANA Securities Class Action and the DESC Ratepayer Case. SCANA paid the civil penalty in December 2020. The SEC civil action against two former executive officers of SCANA remains pending and is currently subject to a stay granted by the court in June 2020 at the request of the U.S. Attorney’s Office for the District of South Carolina. In addition, the South Carolina Law Enforcement Division is conducting a criminal investigation into the handling of the NND Project by SCANA and DESC. Dominion Energy is cooperating fully with the investigations by the U.S. Attorney’s Office and the South Carolina Law Enforcement Division, including responding to additional subpoenas and document requests. Dominion Energy has also entered into a cooperation agreement with the U.S. Attorney’s Office and the South Carolina Attorney General’s Office. The cooperation agreement provides that in consideration of its full cooperation with these investigations to the satisfaction of both agencies, neither such agency will criminally prosecute or bring any civil action against Dominion Energy or any of its current, previous, or future direct or indirect subsidiaries related to the NND Project. A former executive officer of SCANA entered a plea agreement with the U.S. Attorney’s Office and the South Carolina Attorney General’s Office in June 2020 and enter |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 13. LEASES At December 31, 2022 and 2021, DESC had the following lease assets and liabilities recorded in the Consolidated Balance Sheets: At December 31, 2022 2021 (millions) Lease assets: Operating lease assets (1) $ 20 $ 19 Finance lease assets (2) 9 13 Total lease assets $ 29 $ 32 Lease liabilities: Operating lease - current (3) $ 3 $ 2 Operating lease - noncurrent (4) 18 17 Finance lease - current (5) 4 5 Finance lease - noncurrent 6 10 Total lease liabilities $ 31 $ 34 (1) Included in other deferred debits and other assets in the Consolidated Balance Sheets. (2) Included in utility plant, net, in the Consolidated Balance Sheets, net of $ 20 million and $ 20 million of accumulated amortization at December 31, 2022 and December 31, 2021, respectively. (3) Included in other current liabilities in the Consolidated Balance Sheets. (4) Included in other deferred credits and other liabilities in the Consolidated Balance Sheets. (5) Included in securities due within one year in the Consolidated Balance Sheets. For the years ended December 31, 2022, 2021 and 2020, total lease cost consisted of the following: Year Ended December 31, 2022 2021 2020 (millions) Finance lease cost: Amortization $ 4 $ 6 $ 8 Interest 1 1 1 Operating lease cost 4 4 4 Short-term lease cost 2 2 2 Total lease cost $ 11 $ 13 $ 15 For the years ended December 31, 2022, 2021 and 2020, cash paid for amounts included in the measurement of lease liabilities consisted of the following amounts, included in the Consolidated Statements of Cash Flows: Year Ended December 31, 2022 2021 2020 (millions) Operating cash flows from finance leases $ 1 $ 1 $ 1 Operating cash flows from operating leases 6 4 4 Financing cash flows from finance leases 4 6 8 At December 31, 2022 and 2021, the weighted average remaining lease term and weighted average discount rate for finance and operating leases were as follows: At December 31, 2022 2021 Weighted average remaining lease term - finance leases 3 years 4 years Weighted average remaining lease term - operating leases 17 years 20 years Weighted average discount rate - finance leases 2.91 % 2.91 % Weighted average discount rate - operating leases 3.94 % 3.97 % Lease liabilities have the following scheduled maturities: (millions) Operating Finance 2023 $ 4 $ 4 2024 2 3 2025 2 2 2026 2 1 2027 1 — After 2027 20 — Total undiscounted lease payments 31 10 Present value adjustment ( 10 ) — Present value of lease liabilities $ 21 $ 10 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | 14. OPERATING SEGMENTS The Corporate and Other Segment primarily includes specific items attributable to DESC's operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources. In 2022, DESC reported after-tax expenses of $ 3 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segment. In 2021, DESC reported after-tax net expenses of $ 212 million for specific items in the Corporate and Other segment, of which $ 208 million was attributable to its operating segment. The net expense for specific items attributable to DESC’s operating segment in 2021 primarily related to $ 266 million ($ 199 million after-tax) of charges associated with the settlement of the South Carolina electric base rate case and a $ 70 million ($ 53 million after-tax) charge associated with litigation. In 2020, DESC reported after-tax net expenses of $ 104 million for specific items in the Corporate and Other segment, all of which were attributable to its operating segment. The net expense for specific items attributable to DESC’s operating segment in 2020 primarily related to $ 99 million ($ 74 million after-tax) of charges associated with litigation. The following table presents segment information pertaining to DESC’s operations: Year Ended December 31, Dominion Energy Corporate Consolidated (millions) 2022 External revenue $ 3,783 $ — $ 3,783 Depreciation and amortization 507 — 507 Interest charges, net of AFUDC 220 — 220 Income tax expense (benefit) 132 ( 1 ) 131 Comprehensive income (loss) available (attributable) to 485 ( 3 ) 482 Capital expenditures 697 — 697 Total assets (billions) 15.7 — 15.7 2021 External revenue $ 3,146 $ — $ 3,146 Depreciation and amortization 486 — 486 Interest charges (benefit), net of AFUDC 215 ( 23 ) 192 Income tax expense (benefit) 125 ( 116 ) 9 Comprehensive income (loss) available (attributable) to 421 ( 212 ) 209 Capital expenditures 758 — 758 Total assets (billions) 14.9 — 14.9 2020 External revenue $ 2,739 $ — $ 2,739 Depreciation and amortization 474 — 474 Interest charges, net of AFUDC 223 6 229 Income tax expense (benefit) 107 ( 36 ) 71 Comprehensive income (loss) available (attributable) to 410 ( 113 ) 297 Capital expenditures 742 — 742 |
Utility Plant and Nonutility Pr
Utility Plant and Nonutility Property | 12 Months Ended |
Dec. 31, 2022 | |
Utility Plant And Non Utility Property [Abstract] | |
Utility Plant and Nonutility Property | 15. UTILITY PLANT AND NONUTILITY PROPERTY Major classes of utility plant and other property and their respective balances at December 31, 2022 and 2021 were as follows: At December 31, 2022 2021 (millions) Gross utility plant: Generation $ 6,108 $ 6,053 Transmission 2,145 2,037 Distribution 5,472 5,191 Storage 76 76 General and other 630 601 Intangible 257 242 Construction work in progress 541 481 Nuclear fuel 550 603 Total gross utility plant $ 15,779 $ 15,284 Gross nonutility property $ 21 $ 44 Jointly Owned Utility Plant DESC jointly owns and is the operator of Summer. Each joint owner provides its own financing and shares the direct expenses and generation output in proportion to its ownership. DESC’s share of the direct expenses of Summer is included in the corresponding operating expenses on its income statement. The units associated with the NND Project, net of impairment charges, have been reclassified from construction work in progress to a regulatory asset as a result of the decision to stop their construction. See additional discussion at Note 3. At December 31, 2022 2021 Summer Unit 1 Summer Unit 1 Percent owned 66.7 % 66.7 % Plant in service $ 1.6 billion $ 1.6 billion Accumulated depreciation $ 751 million $ 725 million Construction work in progress $ 87 million $ 76 million Included within other receivables on the balance sheet were amounts due to DESC from Santee Cooper for its share of direct expenses. These amounts totaled $ 21 million at December 31, 2022 and $ 32 million at December 31, 2021. |
Affiliated and Related Party Tr
Affiliated and Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Affiliated and Related Party Transactions | 16. AFFILIATED AND RELATED PARTY TRANSACTIONS DESS, on behalf of itself and its parent company, provided the following services to DESC through December 2020, which were rendered at direct or allocated cost: information systems, telecommunications, customer support, marketing and sales, human resources, corporate compliance, purchasing, financial, risk management, public affairs, legal, investor relations, gas supply and capacity management, strategic planning, general administrative, and retirement benefits. In addition, DESS processed and paid invoices for DESC and was reimbursed. Effective January 2021, DES provides to DESC the services previously provided by DESS. Costs for these services include amounts capitalized. Amounts expensed are primarily recorded in other operations and maintenance – affiliated suppliers and other expense, net in the Consolidated Statements of Comprehensive Income. DESC transacts with affiliates for certain quantities of electricity in the ordinary course of business. DESC also enters into certain commodity derivative contracts with affiliates. DESC uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of electricity. See Note 8 for more information. Year Ended December 31, 2022 2021 2020 (millions) Direct and allocated costs from DES and DESS (1) $ 212 $ 226 $ 294 Operating Revenues – Electric from sales to affiliate 4 4 4 Operating Revenues – Gas from sales to affiliate 1 1 1 Operating Expenses – Other taxes from affiliate 8 7 9 Purchases of electricity from solar affiliates 14 14 12 Demand and transportation charges from DECG - Fuel used in — — 16 Demand and transportation charges from DECG - Gas purchased — — 36 (1) Includes capitalized expenditures of $ 48 million, $ 37 million and $ 81 million for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022 2021 (millions) Payable to Dominion Energy $ 1 $ 1 Payable to DES 22 30 Payable to SCANA Corporation 7 — Payable to Public Service Company of North Carolina, Incorporated 12 — Receivable from Public Service Company of North Carolina, Incorporated — 60 Payable to solar affiliates — 1 Receivable from nuclear affiliates — 1 Derivative assets with affiliates (1) 51 28 (1) Includes amounts recorded in other current assets of $ 8 million and $ 4 million as of December 31, 2022 and 2021, respectively, and amounts recorded in other deferred debits and other assets of $ 43 million and $ 24 million as of December 31, 2022 and 2021, respectively. Certain disclosures regarding tax related affiliate balances are included in Note 2. Borrowings from an affiliate are described in Note 6. Certain disclosures regarding DESC’s participation in SCANA's noncontributory defined benefit pension plan and unfunded postretirement health care and life insurance programs are included in Note 11. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2022 | |
Income Statement [Abstract] | |
Other Income (Expense), Net | 17. OTHER INCOME (EXPENSE), NET Components of other income (expense), net are as follows: Year Ended December 31, 2022 2021 2020 (millions) Revenues from contracts with customers $ — $ — $ 1 Other income 10 11 13 Gains on sales of assets (1) 42 — — Other expense 2 ( 18 ) ( 38 ) Allowance for equity funds used during construction 1 5 1 Other income (expense), net $ 55 $ ( 2 ) $ ( 23 ) (1) Includes amounts recognized in connection with the transfer of property, plant and equipment to satisfy litigation. See Note 12 for additional information. Non-service cost components of pension and other postretirement benefits are included in other expense. In 2022, DESC completed the sales of certain utility property in South Carolina, as approved by the South Carolina Commission, for total cash consideration of $ 20 million. In connection with the sales, DESC recognized a gain of $ 20 million ($ 15 million after-tax) for the year ended December 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
General | General DESC makes certain estimates and assumptions in preparing its 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 dates of the financial statements and the reported amounts of revenues, expenses and cash flows for the periods presented. Actual results may differ from those estimates. DESC’s Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. DESC has concluded that GENCO and Fuel Company are VIEs due to the members lacking the characteristics of a controlling financial interest. DESC is the primary beneficiary of GENCO and Fuel Company and therefore is required to consolidate the VIEs. The equity interests in GENCO and Fuel Company are held solely by SCANA, DESC’s parent. As a result, GENCO and Fuel Company’s equity and results of operations are reflected as noncontrolling interest in the Consolidated Financial Statements. GENCO owns a coal-fired electric generating station with a 605 MW net generating capacity (summer rating). GENCO’s electricity is sold exclusively to DESC, pursuant to a FERC approved power purchase agreement and related operating agreement. The effects of these transactions are eliminated in consolidation. Fuel Company acquires, owns and provides financing for DESC's nuclear fuel, certain fossil fuels and emission and other environmental allowances. See also Note 6. Additionally, effective January 2021, DESC purchases shared services from DES, an affiliated VIE that provides accounting, legal, finance and certain administrative and technical services to all Dominion Energy subsidiaries, including DESC. DESC previously purchased such services from DESS, an affiliated VIE, that had provided such services to all SCANA subsidiaries. DESC has determined that it is not the primary beneficiary of DES as it does not have either the power to direct the activities that most significantly impact its economic performance or an obligation to absorb losses and benefits which could be significant to it. See Note 16 for amounts attributable to affiliates. DESC reports certain contracts and instruments at fair value. See below and Note 9 for further information on fair value measurements. DESC maintains pension and other postretirement benefit plans. See Note 11 for further information on these plans. Certain amounts in the 2021 and 2020 Consolidated Financial Statements and Notes have been reclassified to conform to the 2022 presentation for comparative purposes; however, such reclassifications did not affect DESC’s net income, total assets, liabilities, equity or cash flows. Effective in 2021, DESC updated its Statements of Cash Flows to present net charges for allowance for credit risk and write-offs of accounts receivables within other adjustments to reconcile net income to net cash provided by operating activities from the previous presentation within changes in accounts receivable. All prior period information was previously conformed to this presentation, which does not result in a change to net cash provided by operating activities. |
Utility Plant | Utility Plant Utility plant is stated at original cost. The costs of additions, replacements and betterments to utility plant, including direct labor, material and indirect charges for engineering, supervision and AFUDC, are added to utility plant accounts. The original cost of utility property retired or otherwise disposed of is removed from utility plant accounts and generally charged to accumulated depreciation. The costs of repairs and replacements of items of property determined to be less than a unit of property or that do not increase the asset’s life or functionality are charged to expense. AFUDC is a noncash item that reflects the period cost of capital devoted to plant under construction. This accounting practice results in the inclusion of, as a component of construction cost, the costs of debt and equity capital dedicated to construction investment. AFUDC is included in rate base investment and depreciated as a component of plant cost in establishing rates for utility services. DESC calculated AFUDC using average composite rates of 2.7 %, 2.6 % and 2.6 % for 2022, 2021 and 2020, respectively. These rates do not exceed the maximum rates allowed in the various regulatory jurisdictions. DESC capitalizes interest on nuclear fuel in process at the actual interest cost incurred. For property subject to cost-of-service rate regulation that will be abandoned significantly before the end of its useful life, the net carrying value is reclassified from utility plant-in-service when it becomes probable it will be abandoned and recorded as a regulatory asset for amounts expected to be collected through future rates. Provisions for depreciation and amortization are recorded using the straight-line method based on the estimated service lives of the various classes of property, and in most cases, include provisions for future cost of removal. The composite weighted average depreciation rates for utility plant by function were as follows: Year Ended December 31, 2022 (1) 2021 (1) 2020 (percent) Generation 2.34 2.46 2.50 Transmission 2.36 2.56 2.56 Distribution 2.59 2.48 2.42 Storage 2.93 2.85 2.75 General and other 3.35 2.27 3.17 (1) Rates include the impact of a change in depreciation rates approved in connection with the settlement of the electric base rate case in 2021, which resulted in a decrease to depreciation expense of $ 12 million and $ 6 million for the years ended December 31, 2022 and 2021, respectively. DESC records nuclear fuel amortization using the units-of-production method, which is included in fuel used in electric generation and recovered through the fuel cost component of retail electric rates. |
Major Maintenance | Major Maintenance Planned major maintenance costs related to certain fossil fuel turbine generator equipment, nuclear refueling outages and cyclical tree trimming and vegetation management are collected in rates and accrued in periods other than when incurred in accordance with approval by the South Carolina Commission for such accounting treatment and rate recovery of expenses accrued thereunder. The difference between such cumulative major maintenance costs and cumulative collections is classified as a regulatory asset or regulatory liability on the consolidated balance sheet. Other planned major maintenance is expensed when incurred. Effective September 2021, DESC is authorized to collect $ 25 million annually through electric rates to offset certain turbine generator maintenance expenditures. Prior to September 2021, DESC was authorized to collect $ 18 million annually. For the years ended December 31, 2022, 2021 and 2020, DESC incurred $ 20 million, $ 20 million and $ 19 million, respectively, for turbine generator maintenance. Nuclear refueling outages are scheduled 18 months apart. As approved by the South Carolina Commission, DESC accrues $ 17 million annually for its portion of the nuclear refueling outages, that are scheduled to occur from the fall of 2021 through the fall of 2027 as well as unrecovered balances from the previous accrual cycle. Refueling outage costs incurred for which DESC was responsible totaled $ 1 million in 2022, $ 24 million in 2021 and $ 23 million in 2020. Effective September 2021, DESC implemented a tree trimming and vegetation management accrual where costs associated with cyclical tree trimming and vegetation management are accrued over the five-year operating cycle DESC seeks to maintain for such activities. As approved by the South Carolina Commission, DESC accrues $ 28 million annually. In 2021, DESC accrued $ 9 million during the period the accrual was effective. During the years ended December 31, 2022 and 2021, DESC incurred costs totaling $ 33 million and $ 9 million, respectively. |
Asset Retirement Obligations | Asset Retirement Obligations DESC recognizes AROs at fair value as incurred or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement activities to be performed, for which a legal obligation exists. These amounts are generally capitalized as costs of the related tangible long-lived assets. Since relevant market information is not available, fair value is estimated using discounted cash flow analyses. Periodically, DESC assesses its AROs to determine if circumstances indicate that estimates of the amounts or timing of future cash flows associated with retirement activities have changed. AROs are adjusted when significant changes in the amounts or timing of future cash flows are identified. DESC reports accretion of AROs and depreciation on asset retirement costs as an adjustment to regulatory assets. |
Nuclear Decommissioning | Nuclear Decommissioning Based on a decommissioning cost study completed in 2020, DESC’s two-thirds share of estimated site-specific nuclear decommissioning costs for Summer, including the cost of decommissioning plant components both subject to and not subject to radioactive contamination, totals $ 788 million, stated in 2022 dollars. Santee Cooper is responsible for decommissioning costs related to its one-third ownership interest in Summer. The cost estimate assumes that the site will be maintained over a period of approximately 60 years in such a manner as to allow for subsequent decontamination that would permit release for unrestricted use. Under DESC’s method of funding decommissioning costs, DESC transfers to an external trust fund the amounts collected through rates ($ 3 million in each period presented), less expenses. The trust invests the amounts transferred into insurance policies on the lives of certain company personnel. Insurance proceeds are reinvested in insurance policies. The asset balance held in trust reflects the net cash surrender value of the insurance policies and cash held by the trust. Management intends for the fund, including earnings thereon, to provide for all eventual decommissioning expenditures for Summer on an after-tax basis. |
Cash, Restricted Cash and Equivalents | Cash, Restricted Cash and Equivalents Cash, restricted cash and equivalents include cash on hand, cash in banks and temporary investments purchased with an original maturity of three months or less. Restricted Cash and Equivalents Beginning in 2021, DESC may hold restricted cash and equivalent balances that consists of federal assistance funds to be used towards customer bill assistance. The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within DESC’s Consolidated Balance Sheets to the corresponding amounts reported within DESC’s Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020: Cash, Restricted Cash and Equivalents at End/Beginning of Year December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (millions) Cash and cash equivalents $ 11 $ 30 $ 5 $ 4 Restricted cash and equivalents (1) — 24 — — Cash, restricted cash and equivalents shown in the $ 11 $ 54 $ 5 $ 4 (1) Restricted cash and equivalent balances are presented within other current assets on the Consolidated Balance Sheets. |
Receivables | Receivables Customer receivables reflect amounts due from customers arising from the delivery of energy or related services and include both billed and unbilled amounts earned pursuant to revenue recognition practices described in Note 4. Customer receivables are generally due within one month of receipt of invoices which are presented on a monthly cycle basis. Unbilled revenues totaled $ 188 million and $ 139 million at December 31, 2022 and 2021, respectively. DESC sells electricity and natural gas and provides distribution and transmission services to customers in South Carolina. Management believes that this geographic concentration risk is mitigated by the diversity of DESC’s customer base, which includes a large number of residential, commercial and industrial customers. Credit risk associated with accounts receivable is limited due to the large number of customers. DESC’s exposure to potential concentrations of credit risk results primarily from amounts due from Santee Cooper related to the jointly owned nuclear generating facility at Summer. Such receivables represented approximately 4 % of DESC’s accounts receivable balance at December 31, 2022. |
Inventories | Inventories Materials and supplies include the average cost of transmission, distribution, and generating plant materials. Materials are charged to inventory when purchased and then expensed or capitalized to plant, as appropriate, at weighted average cost when used. Fuel inventory includes the average cost of coal, natural gas, fuel oil and emission allowances. Fuel is charged to inventory when purchased and is expensed, at weighted average cost, as used and recovered through fuel cost recovery rates approved by the South Carolina Commission. |
Income Taxes | Income Taxes A consolidated federal income tax return is filed for Dominion Energy and its subsidiaries, including DESC. In addition, where applicable, combined income tax returns for Dominion Energy, including DESC, are filed in various states including South Carolina; otherwise, separate state income tax returns are filed. DESC participates in an intercompany tax sharing agreement with Dominion Energy. Current income taxes are based on taxable income or loss and credits determined on a separate company basis. Under the agreements, if a subsidiary incurs a tax loss or earns a credit, recognition of current income tax benefits is limited to refunds of prior year taxes obtained by the carryback of the net operating loss or credit or to the extent the tax loss or credit is absorbed by the taxable income of other Dominion Energy consolidated group members. Otherwise, the net operating loss or credit is carried forward and is recognized as a deferred tax asset until realized. Accounting for income taxes involves an asset and liability approach. Deferred income tax assets and liabilities are provided, representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Accordingly, deferred taxes are recognized for the future consequences of different treatments used for the reporting of transactions in financial accounting and income tax returns. DESC establishes a valuation allowance when it is more-likely-than-not that all, or a portion, of a deferred tax asset will not be realized. DESC did not have any valuation allowances recorded for the periods presented. Where the treatment of temporary differences is different for rate-regulated operations, a regulatory asset is recognized if it is probable that future revenues will be provided for the payment of deferred tax liabilities. DESC recognizes positions taken, or expected to be taken, in income tax returns that are more-likely-than-not to be realized, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. At December 31, 2022 and 2021, DESC had $ 68 million and $ 62 million, respectively, of unrecognized tax benefits. If it is not more-likely-than-not that a tax position, or some portion thereof, will be sustained, the related tax benefits are not recognized in the financial statements. Unrecognized tax benefits may result in an increase in income taxes payable, a reduction of income tax refunds receivable or changes in deferred taxes. Also, when uncertainty about the deductibility of an amount is limited to the timing of such deductibility, the increase in income taxes payable (or reduction in tax refunds receivable) is accompanied by a decrease in deferred tax liabilities. Except when such amounts are presented net with amounts receivable from or amounts prepaid to tax authorities, noncurrent income taxes payable related to unrecognized tax benefits are classified in other deferred credits and other liabilities on the Consolidated Balance Sheets and current payables are included in taxes accrued on the Consolidated Balance Sheets. DESC recognizes interest on underpayments and overpayments of income taxes in interest expense and interest income, respectively. Penalties are also recognized in other expenses. Interest expense at DESC was $ 2 million in 2022 and $ 7 million in 2020. In 2021, DESC reflected a $ 21 million benefit in interest expense and recognized a $ 7 million benefit from the reversal of penalty expenses associated with the effective settlement of uncertain tax positions. Interest income at DESC was less than $ 1 million in 2022, 2021 and 2020. DESC recorded penalty expenses of $ 4 million in 2020. At December 31, 2022, DESC had an income tax-related affiliated payable of $ 47 million to Dominion Energy. This balance is expected to be paid to Dominion Energy. At December 31, 2021, DESC had an income tax-related affiliated receivable of $ 24 million from Dominion Energy. This balance was received from Dominion Energy in 2022. At DESC investment tax credits are deferred and amortized over the service lives of the properties giving rise to the credits. Production tax credits are recognized as energy is generated and sold. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The accounting for DESC’s regulated electric and gas operations differs from the accounting for nonregulated operations in that DESC is required to reflect the effect of rate regulation in its Consolidated Financial Statements. For regulated businesses subject to federal or state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. DESC evaluates whether or not recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on: • Orders issued by regulatory commissions, legislation and judicial actions; • Past experience; and • Discussions with applicable regulatory authorities and legal counsel. Generally, regulatory assets and liabilities are amortized into income over the period authorized by the regulator. If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable. See Note 3 to the Consolidated Financial Statements for additional information. |
Derivative Instruments | Derivative Instruments DESC is exposed to the impact of market fluctuations in the price of electricity and natural gas it markets and purchases, as well as interest rate risk in its business operations. DESC uses derivative instruments such as physical forwards and swaps to manage commodity and/or interest rate risks of its business operations. Derivative assets and liabilities are presented gross on DESC’s Consolidated Balance Sheets. Derivative contracts representing unrealized gain positions are reported as derivative assets. Derivative contracts representing unrealized losses are reported as derivative liabilities. All derivatives, except those for which an exception applies, are required to be reported in the Consolidated Balance Sheets at fair value. One of the exceptions to fair value accounting, normal purchases and normal sales, may be elected when the contract satisfies certain criteria, including a requirement that physical delivery of the underlying commodity is probable. Expenses and revenues resulting from deliveries under normal purchase contracts and normal sales contracts, respectively, are included in earnings at the time of contract performance. See Fair Value Measurements below for additional information about fair value measurements and associated valuation methods for derivatives. DESC’s derivative contracts include over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of setoff through master netting arrangements and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency, or other conditions. In general, most over-the-counter transactions are subject to collateral requirements. Types of collateral for over-the-counter contracts include cash, letters of credit and, in some cases, other forms of security, none of which are subject to restrictions. DESC does not offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. DESC had margin assets of $ 1 million and $ 11 million associated with cash collateral at December 31, 2022 and 2021, respectively, reflected in other current assets in the Consolidated Balance Sheets. DESC had no margin liabilities associated with cash collateral at December 31, 2022 and 2021. See Note 8 for further information about derivatives. To manage price and interest rate risk, DESC holds derivative instruments that are not designated as hedges for accounting purposes. However, to the extent DESC does not hold offsetting position for such derivatives, it believes these instruments represent economic hedges that mitigate its exposure to fluctuations in commodity prices or interest rates. All income statement activity, including amounts realized upon settlement, is presented in operating expenses and interest charges based on the nature of the underlying risk. For derivative instruments that are not accounted for as cash flow hedges, the cash flows from the derivatives are classified in operating cash flows. Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities. Realized gains or losses on the derivative instruments are generally recognized when the related transactions impact earnings. DERIVATIVE INSTRUMENTS DESIGNATED AS HEDGING INSTRUMENTS In accordance with accounting guidance pertaining to derivatives and hedge accounting, DESC designates a portion of their derivative instruments as cash flow hedges for accounting purposes. For derivative instruments that are accounted for as cash flow hedges, the cash flows from the derivatives and from the related hedged items are classified in operating cash flows. Cash Flow Hedges - DESC uses interest rate swaps to hedge its exposure to variable interest rates on long-term debt. For transactions in which DESC is hedging the variability of cash flows, changes in the fair value of the derivatives are reported in regulatory assets or liabilities. Any derivative gains or losses reported in regulatory assets or liabilities are reclassified to earnings when the forecasted item is included in earnings, or earlier, if it becomes probable that the forecasted transaction will not occur. For cash flow hedge transactions, hedge accounting is discontinued if the occurrence of the forecasted transaction is no longer probable. Pursuant to regulatory orders, interest rate derivatives entered into by DESC after October 2013 were not designated for accounting purposes as cash flow hedges, and fair value changes and settlement amounts related to them have been recorded as regulatory assets and liabilities. Settlement losses on swaps generally have been amortized over the lives of subsequent debt issuances, and gains have been amortized to interest charges or have been applied as otherwise directed by the South Carolina Commission. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. However, the use of a mid-market pricing convention (the mid-point between bid and ask prices) is permitted. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of DESC’s own nonperformance risk on its liabilities. Fair value measurements assume that the transaction occurs in the principal market for the asset or liability (the market with the most volume and activity for the asset or liability from the perspective of the reporting entity), or in the absence of a principal market, the most advantageous market for the asset or liability (the market in which the reporting entity would be able to maximize the amount received or minimize the amount paid). DESC applies fair value measurements to certain assets and liabilities including commodity and interest rate derivative instruments. DESC applies credit adjustments to its derivative fair values in accordance with the requirements described above. Inputs and Assumptions Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, price information is sought from external sources, including industry publications, and to a lesser extent, broker quotes. When evaluating pricing information provided by Designated Contract Market settlement pricing, other pricing services, or brokers, DESC considers the ability to transact at the quoted price, i.e. if the quotes are based on an active market or an inactive market and to the extent which pricing models are used, if pricing is not readily available. If pricing information from external sources is not available, or if DESC believes that observable pricing is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases the unobservable inputs are developed and substantiated using historical information, available market data, third-party data and statistical analysis. Periodically, inputs to valuation models are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships and changes in third-party sources. The inputs and assumptions used in measuring fair value include the following: Derivative Contracts Inputs and assumptions Commodity Interest Rate Forward commodity prices X Transaction prices X Volumes X Commodity location X Interest rates X Interest rate curves X Credit quality of counterparties and DESC X X Credit enhancements X X Time value X X Notional value X Levels DESC utilizes the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1-Quoted prices (unadjusted) in active markets for identical assets and liabilities that they have the ability to access at the measurement date. • Level 2-Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include interest rate swaps. • Level 3-Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. Instruments categorized in Level 3 for DESC consist of long-dated commodity derivatives. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. |
Debt Issuance Costs | Debt Issuance Costs DESC defers and amortizes debt issuance costs and debt premiums or discounts over the expected lives of the respective debt issues, considering maturity dates and, if applicable, redemption rights held by others. Deferred debt issuance costs are recorded as a reduction in long-term debt in the Consolidated Balance Sheets. Amortization of the issuance costs is reported as interest charges. As permitted by regulatory authorities, gains or losses resulting from the refinancing or redemption of debt that are probable of recovery through future rates are deferred and amortized. |
Environmental | Environmental An environmental assessment program is maintained to identify and evaluate current and former operations sites that could require environmental clean-up. As site assessments are initiated, estimates are made of the amount of expenditures, if any, deemed necessary to investigate and remediate each site. Environmental remediation liabilities are accrued when the criteria for loss contingencies are met. These estimates are refined as additional information becomes available; therefore, actual expenditures could differ significantly from the original estimates. Probable and estimable costs are accrued related to environmental sites on an undiscounted basis. Amounts estimated and accrued to date for site assessments and clean-up relate solely to regulated operations. Amounts expected to be recovered through rates are recorded in regulatory assets and, if applicable, amortized over approved amortization periods. Other environmental costs are expensed as incurred. |
Statement of Operations Presentation | Statement of Operations Presentation Revenues and expenses arising from regulated businesses are presented within operating income, and all other activities are presented within other income (expense), net. |
Operating Revenue | Operating Revenue Operating revenue is recorded on the basis of services rendered, commodities delivered, or contracts settled and includes amounts yet to be billed to customers. DESC collects sales, consumption, consumer utility taxes and sales taxes; however, these amounts are excluded from revenue and are recorded as liabilities until they are remitted to the respective taxing authority. The primary types of sales and service activities reported as operating revenue for DESC are as follows: Revenue from Contracts with Customers • Regulated electric sales consist primarily of state-regulated retail electric sales, and federally-regulated wholesale electric sales and electric transmission services; • Regulated gas sales consist primarily of state-regulated natural gas sales and related distribution services; and • Other regulated revenue consists primarily of miscellaneous service revenue from electric and gas distribution operations and sales of excess electric capacity and other commodities. Other Revenue • Other revenue consists primarily of alternative revenue programs, gains and losses from derivative instruments not subject to hedge accounting and lease revenues. DESC records refunds to customers as required by the South Carolina Commission as a reduction to regulated electric sales or regulated gas sales, as applicable. Revenues from electric and gas sales are recognized over time, as the customers of DESC consume gas and electricity as it is delivered. Sales of products and services typically transfer control and are recognized as revenue upon delivery of the product or service. The customer is able to direct the use of, and obtain substantially all of the benefits from, the product at the time the product is delivered. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. Payment for most sales and services varies by contract type, but is typically due within a month of billing. DESC customers subject to an electric fuel cost recovery component or a PGA are billed based on a fuel or cost of gas factor calculated in accordance with cost recovery procedures approved by the South Carolina Commission and subject to adjustment periodically. Any difference between actual costs and amounts contained in rates is adjusted through revenue and is deferred and included when making the next adjustment to the cost recovery factors. Certain amounts deferred for the WNA arise under specific arrangements with regulators rather than customers and are accounted for as an alternative revenue program. This alternative revenue is included within Other operating revenues, separate from revenue arising from contracts with customers, in the month such adjustments are deferred within regulatory accounts. As permitted, DESC has elected to reduce the regulatory accounts in the period when such amounts are reflected on customer bills without affecting operating revenues. Performance obligations which have not been satisfied by DESC relate primarily to demand or standby service for natural gas. Demand or standby charges for natural gas arise when an industrial customer reserves capacity on assets controlled by the service provider and may use that capacity to move natural gas it has acquired from other suppliers. For all periods presented, the amount of revenue recognized by DESC for these charges is equal to the amount of consideration DESC has a right to invoice and corresponds directly to the value transferred to the customer. |
Leases | Leases DESC leases certain assets including vehicles, real estate, office equipment and other assets under both operating and finance leases. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease agreement, subject to regulatory framework. Rent expense associated with operating leases, short-term leases and variable leases is primarily recorded in other operations and maintenance expense in the Consolidated Statements of Comprehensive Income (Loss). Amortization expense and interest charges associated with finance leases are deferred within regulatory assets in the Consolidated Balance Sheets and amortized into the Consolidated Statements of Comprehensive Income (Loss). Certain leases include one or more options to renew, with renewal terms that can extend the lease from one to 70 years . The exercise of renewal options is solely at DESC's discretion and is included in the lease term if the option is reasonably certain to be exercised. A right-of-use asset and corresponding lease liability for leases with original lease terms of one year or less are not included in the Consolidated Balance Sheets, unless such leases contain renewal options that DESC is reasonably certain will be exercised. The determination of the discount rate utilized has a significant impact on the calculation of the present value of the lease liability included in the Consolidated Balance Sheets. For DESC’s leased assets, the discount rate implicit in the lease is generally unable to be determined from a lessee perspective. As such, DESC uses internally-developed incremental borrowing rates as a discount rate in the calculation of the present value of the lease liability. The incremental borrowing rates are determined based on an analysis of DESC's publicly available secured borrowing rates over various lengths of time that most closely corresponds to DESC's lease maturities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Depreciation Rates | The composite weighted average depreciation rates for utility plant by function were as follows: Year Ended December 31, 2022 (1) 2021 (1) 2020 (percent) Generation 2.34 2.46 2.50 Transmission 2.36 2.56 2.56 Distribution 2.59 2.48 2.42 Storage 2.93 2.85 2.75 General and other 3.35 2.27 3.17 (1) Rates include the impact of a change in depreciation rates approved in connection with the settlement of the electric base rate case in 2021, which resulted in a decrease to depreciation expense of $ 12 million and $ 6 million for the years ended December 31, 2022 and 2021, respectively. |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within DESC’s Consolidated Balance Sheets to the corresponding amounts reported within DESC’s Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020: Cash, Restricted Cash and Equivalents at End/Beginning of Year December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (millions) Cash and cash equivalents $ 11 $ 30 $ 5 $ 4 Restricted cash and equivalents (1) — 24 — — Cash, restricted cash and equivalents shown in the $ 11 $ 54 $ 5 $ 4 (1) Restricted cash and equivalent balances are presented within other current assets on the Consolidated Balance Sheets. |
Schedule of Input And Assumptions Used in Measuring Fair Value | The inputs and assumptions used in measuring fair value include the following: Derivative Contracts Inputs and assumptions Commodity Interest Rate Forward commodity prices X Transaction prices X Volumes X Commodity location X Interest rates X Interest rate curves X Credit quality of counterparties and DESC X X Credit enhancements X X Time value X X Notional value X |
Rate and Other Regulatory Mat_2
Rate and Other Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | At December 31, 2022 2021 (millions) Regulatory assets: NND Project costs (1) $ 138 $ 138 Deferred employee benefit plan costs (2) 4 8 Other unrecovered plant (3) 17 16 DSM programs (4) 21 23 Cost of fuel and purchased gas under-collections (5) 508 126 Other 55 50 Regulatory assets - current 743 361 NND Project costs (1) 2,088 2,226 AROs (6) 381 311 Deferred employee benefit plan costs (2) 161 106 Interest rate hedges (7) 169 170 Other unrecovered plant (3) 58 57 DSM programs (4) 41 45 Environmental remediation costs (8) 37 30 Deferred storm damage costs (9) 43 38 Deferred transmission operating costs (10) 75 77 Derivatives (11) 105 125 Other (12) 131 138 Regulatory assets - noncurrent 3,289 3,323 Total regulatory assets $ 4,032 $ 3,684 Regulatory liabilities: Monetization of guaranty settlement (13) $ 67 $ 67 Income taxes refundable through future rates (14) 34 42 Reserve for refunds to electric utility customers (15) 100 113 Derivatives (11) 43 20 Other 7 3 Regulatory liabilities - current 251 245 Monetization of guaranty settlement (13) 702 831 Income taxes refundable through future rates (14) 871 903 Asset removal costs (16) 596 570 Reserve for refunds to electric utility customers (15) 325 425 Derivatives (11) 276 198 Other 15 9 Regulatory liabilities - noncurrent 2,785 2,936 Total regulatory liabilities $ 3,036 $ 3,181 (1) Reflects expenditures associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from electric service customers over a 20 -year period ending in 2039 . (2) Employee benefit plan costs have historically been recovered as they have been recorded under GAAP. Deferred employee benefit plan costs represent amounts of pension and other postretirement benefit costs which were accrued as liabilities and treated as regulatory assets pursuant to FERC guidance, and costs deferred pursuant to specific South Carolina Commission regulatory orders. DESC expects to recover deferred pension costs through utility rates over periods through 2044 . DESC expects to recover other deferred benefit costs through utility rates, primarily over average service periods of participating employees up to 11 years. (3) Represents the carrying value of coal-fired generating units, including related materials and supplies inventory, retired from service prior to being fully depreciated. DESC is amortizing these amounts through cost of service rates following depreciation amounts that were designed to recover the retired units cost over their previous estimated remaining useful lives, which has been estimated to be through 2025 . Based on current projections of remaining decommissioning costs, projected recovery is expected to extend through 2029 . In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advanced Metering Infrastructure project, which are being recovered through rates through 2028 . This amount also includes certain inventory and preliminary survey and investigation charges being amortized over five years related to the transition or conversion from coal to gas fired generation at certain facilities. In addition, reflects an increase of approximately $ 7 million related to the abandonment of certain peaking gas generation facilities, such amounts having been reclassified from property, plant and equipment to noncurrent other unrecovered plant. Unamortized amounts are included in rate base and are earning a current return. (4) Represents deferred costs associated with electric demand reduction programs, and such deferred costs are currently being recovered over three years through an approved rate rider. (5) Represents amounts under- or over-collected from customers pursuant to the cost of fuel components approved by the South Carolina Commission. (6) Represents 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. (7) Represents the changes in fair value and payments made or received upon settlement of certain interest rate derivatives designated as cash flow hedges. The amounts recorded are expected to be amortized to interest expense over the lives of the underlying debt through 2065 . (8) Reflects amounts associated with the assessment and clean-up of sites currently or formerly owned by DESC. Such remediation costs are expected to be recovered over periods of up to 27 years. See Note 12 for additional information. (9) Represents storm restoration costs for which DESC expects to receive future recovery through customer rates over approximately 10 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and are earning a current return. (10) Includes deferred depreciation and property taxes associated with certain transmission assets for which DESC expects recovery from customers through future rates over approximately 42 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and earning a current return. See Note 12 for additional information. (11) 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. (12) Various other regulatory assets are expected to be recovered through rates over varying periods through 2047 . (13) Represents proceeds related to the monetization of the Toshiba Settlement. In accordance with the SCANA Merger Approval Order, this balance, net of amounts that may be required to satisfy liens, will be refunded to electric customers over a 20 -year period ending in 2039 . (14) Includes (i) excess deferred income taxes arising from the remeasurement of deferred income taxes in connection with the enactment of the 2017 Tax Reform Act (certain of which are protected under normalization rules and will be amortized over the remaining lives of related property, and certain of which will be amortized to the benefit of customers over prescribed periods as instructed by regulators) and (ii) deferred income taxes arising from investment tax credits, offset by (iii) deferred income taxes that arise from utility operations that have not been included in customer rates (a portion of which relate to depreciation and are expected to be recovered over the remaining lives of the related property which may range up to 85 years). See Note 7 for additional information. (15) Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited to customers over an estimated 11 -year period effective February 2019 in connection with the SCANA Merger Approval Order. (16) Represents estimated net collections through depreciation rates of amounts to be expended for the removal of assets in the future. |
Operating Revenue (Tables)
Operating Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Disaggregation of Revenue | DESC’s operating revenue consists of the following: Year Ended December 31, 2022 2021 2020 (millions) Electric Gas Electric Gas Electric Gas Customer class: Residential $ 1,375 $ 303 $ 1,211 $ 245 $ 1,127 $ 201 Commercial 968 184 834 133 746 103 Industrial 533 166 424 103 341 65 Other 203 23 157 25 123 18 Revenues from contracts with customers 3,079 676 2,626 506 2,337 387 Other revenues 27 1 13 1 15 — Total Operating Revenues $ 3,106 $ 677 $ 2,639 $ 507 $ 2,352 $ 387 |
Balance and Activity Related to Contract Costs Deferred as Regulatory Assets | Balances and activity related to contract costs deferred as regulatory assets were as follows: Regulatory Assets (millions) 2022 2021 Beginning balance $ 11 $ 12 Amortization ( 2 ) ( 1 ) Ending balance $ 9 $ 11 |
Long-Term and Short-Term Debt (
Long-Term and Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt by type with related weighted-average coupon rates and maturities at December 31, 2022 and 2021 is as follows: At December 31, 2022 (1) 2022 2021 (millions, except percentages) DESC: First Mortgage Bonds, 2.30 % to 6.625 %, due 2028 to 2065 5.09 % $ 3,634 $ 3,634 Tax-Exempt Financings: (2) Variable rate due 2038 3.70 % 35 35 3.625 % and 4.00 %, due 2028 and 2033 3.90 % 54 54 Other 3.63 % 1 1 GENCO: Tax-Exempt Financing, variable rate due 2038 3.70 % 33 33 Affiliated note, 3.05 % due 2024 3.05 % 230 230 Total principal 3,987 3,987 Securities due within one year — — Unamortized discount, premium and debt issuance costs, net ( 32 ) ( 33 ) Finance leases 6 10 Total long-term debt $ 3,961 $ 3,964 (1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2022 . (2) Industrial revenue bonds totaling $ 68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2023. |
Schedule of Principal Payments of Long-Term Debt | Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2022, were as follows: (millions, except percentages) 2023 2024 2025 2026 2027 Thereafter Total First Mortgage Bonds $ — $ — $ — $ — $ — $ 3,634 $ 3,634 Tax-Exempt Financings — — — — — 122 122 Other — 230 — — — 1 231 Total $ — $ 230 $ — $ — $ — $ 3,757 $ 3,987 Weighted-average coupon 3.05 % 5.05 % |
Schedule of Line of Credit Facilities | DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, were as follows: (millions) Facility Limit Outstanding (1) Outstanding At December 31, 2022 Joint revolving credit facility (2) $ 1,000 $ 249 $ — At December 31, 2021 Joint revolving credit facility (2) $ 1,000 $ — $ — (1) The weighted-average interest rate of the outstanding commercial paper supported by the credit facility was 4.76 % at December 31 2022. A maximum of $ 1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2022, the sub-limit for DESC was $ 500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or 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 $ 1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Details of Income Tax Expense for Continuing Operations Including Noncontrolling Interests | Year Ended December 31, 2022 2021 2020 (millions) Current: Federal $ ( 69 ) $ ( 52 ) $ ( 139 ) State ( 3 ) ( 39 ) 3 Total current benefit ( 72 ) ( 91 ) ( 136 ) Deferred: Federal Taxes before operating loss carryforwards and investment tax credits 135 61 158 Tax utilization expense of operating loss carryforwards 33 34 33 State 36 7 17 Total deferred expense 204 102 208 Investment tax credit-amortization ( 1 ) ( 2 ) ( 1 ) Total income tax expense $ 131 $ 9 $ 71 |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2022 2021 2020 U.S. statutory rate 21.0 % 21.0 % 21.0 % Increases (reductions) resulting from: State taxes, net of federal benefit 4.7 5.6 4.2 AFUDC - equity — ( 0.4 ) ( 0.1 ) Amortization of federal investment tax credits ( 0.2 ) ( 0.6 ) ( 0.4 ) Reversal of excess deferred income taxes ( 4.6 ) ( 8.1 ) ( 6.0 ) Changes in unrecognized tax benefits — ( 15.8 ) — Prior period adjustments — 1.6 — Other ( 0.2 ) 0.5 0.1 Effective tax rate 20.7 % 3.8 % 18.8 % |
Schedule of Deferred Income Taxes | DESC’s deferred income taxes consist of the following: At December 31, 2022 2021 (millions) Deferred income taxes: Total deferred income tax assets $ 892 $ 1,015 Total deferred income tax liabilities 2,107 1,974 Total net deferred income tax liabilities $ 1,215 $ 959 Total deferred income taxes: Depreciation method and plant basis differences $ 1,164 $ 1,139 Excess deferred income taxes ( 219 ) ( 228 ) Unrecovered nuclear plant cost 479 508 DESC rate refund ( 89 ) ( 113 ) Toshiba settlement ( 162 ) ( 189 ) Nuclear decommissioning ( 44 ) ( 54 ) Deferred state income taxes 275 226 Federal benefit of deferred state income taxes ( 60 ) ( 47 ) Deferred fuel, purchased energy and gas costs 107 27 Pension benefits 51 35 Other postretirement benefits ( 32 ) ( 35 ) Loss and credit carryforwards ( 313 ) ( 343 ) Other 58 33 Total net deferred income tax liabilities $ 1,215 $ 959 Deferred investment tax credits-regulated operations 15 16 Total deferred taxes and deferred investment tax credits $ 1,230 $ 975 |
Summary of Tax Credit Carryforwards | At December 31, 2022, DESC had the following deductible loss and credit carryforwards: (millions) Deductible Amount Deferred Tax Asset Expiration Period Federal losses $ 731 $ 153 2037 Federal production and other credits — 29 2035 - 2042 State losses 2,779 139 2037 - 2042 State investment and other credits — 32 2026 - 2032 Total $ 3,510 $ 353 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of changes in DESC’s unrecognized tax benefits follows: (millions) 2022 2021 2020 Beginning balance $ 62 $ 138 $ 132 Increases-prior period positions 6 6 5 Decreases-prior period positions ( 1 ) ( 57 ) — Increases-current period positions 1 1 1 Settlements with tax authorities — ( 26 ) — Ending balance $ 68 $ 62 $ 138 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Offsetting Assets | The table below presents derivative balances by type of financial instrument, if the gross amounts recognized in the Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid. DESC’s commodity derivative assets are not subject to a master netting agreement or similar arrangement. December 31, 2022 December 31, 2021 Gross Amounts Not Offset Gross Amounts Not Offset (millions) Gross Assets Financial Cash Net Gross Assets Financial Cash Net Interest rate contracts: Over-the-counter $ 1 $ — $ — $ 1 $ — $ — $ — $ — Total derivatives $ 1 $ — $ — $ 1 $ — $ — $ — $ — |
Offsetting Liabilities | December 31, 2022 December 31, 2021 Gross Amounts Not Offset Gross Amounts Not Offset (millions) Gross Financial Cash Net Gross Financial Cash Net Interest rate contracts: Over-the-counter $ 2 $ — $ 1 $ 1 $ 19 $ — $ 11 $ 8 Total derivatives $ 2 $ — $ 1 $ 1 $ 19 $ — $ 11 $ 8 |
Schedule of Volume of Derivative Activity | The following table presents the volume of derivative activity at December 31, 2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions. (millions) Current Noncurrent Electricity (MWh): Fixed price 2 24 Interest rate (1) $ — $ 71 (1) Maturity is determined based on final settlement period. |
Fair Value of Derivatives | The following table presents the fair values of derivatives and where they are presented in the Consolidated Balance Sheets: (millions) Fair Value - Fair Value - Total Fair At December 31, 2022 Current Assets Commodity $ — $ 41 $ 41 Total current derivative assets (1) — 41 41 Noncurrent Assets Commodity — 210 210 Interest rate — 1 1 Total noncurrent derivative assets (2) — 211 211 Total derivative assets $ — $ 252 $ 252 Noncurrent Liabilities Interest rate $ 2 $ — $ 2 Total noncurrent derivative liabilities (4) 2 — 2 Total derivative liabilities $ 2 $ — $ 2 At December 31, 2021 Current Assets Commodity $ — $ 18 $ 18 Total current derivative assets (1) — 18 18 Noncurrent Assets Commodity — 130 130 Total noncurrent derivative assets (2) — 130 130 Total derivative assets $ — $ 148 $ 148 Current Liabilities Interest rate $ 1 $ 1 $ 2 Total current derivative liabilities (3) 1 1 2 Noncurrent Liabilities Interest rate 11 6 17 Total noncurrent derivative liabilities (4) 11 6 17 Total derivative liabilities $ 12 $ 7 $ 19 (1) Current derivative assets are presented in other current assets in DESC’s Consolidated Balance Sheets. (2) Noncurrent derivative assets are presented in other deferred debits and other assets in DESC’s Consolidated Balance Sheets. (3) Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets. (4) Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in DESC’s Consolidated Balance Sheets. |
Derivatives in Cash Flow Hedging Relationships | The following tables present the gains and losses on derivatives, as well as where the associated activity is presented in the Consolidated Balance Sheets and Statements of Comprehensive Income: Derivatives in Cash Flow Hedging Relationships (millions) Increase (1) Year Ended December 31, 2022 Derivative type and location of gains (losses): Interest rate $ 11 Total $ 11 Year Ended December 31, 2021 Derivative type and location of gains (losses): Interest rate $ 9 Total $ 9 Year Ended December 31, 2020 Derivative type and location of gains (losses): Interest rate $ 1 Total $ 1 (1) 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 Consolidated Statements of Comprehensive Income. |
Derivatives Not Designated as Hedging Instruments | Derivatives Not designated as Hedging Instruments (millions) Amount of Gain (Loss) (1) Year Ended December 31, 2022 2021 2020 Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 77 $ 8 $ — Interest rate contracts: Interest charges ( 2 ) ( 2 ) ( 1 ) Total $ 75 $ 6 $ ( 1 ) (1) Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Consolidated Statements of Comprehensive Income. |
Fair Value Measurements, Incl_2
Fair Value Measurements, Including Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The following table presents DESC’s quantitative information about Level 3 fair value measurements at December 31, 2022. The range and weighted average are presented in dollars for market price inputs. Fair Value (millions) Valuation Techniques Unobservable Input Range Weighted Average (1) Assets Physical forwards: Electricity $ 251 Discounted cash flow Market price (per MWh) (2) 27 - 110 51 Total assets $ 251 (1) Averages weighted by volume. (2) Represents market prices beyond defined terms for Levels 1 and 2. |
Schedule of Sensitivity of The Fair Value Measurements To Changes in The Significant Unobservable Inputs | 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) |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents DESC’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions: Level 1 Level 2 Level 3 Total (millions) At December 31, 2022 Assets Commodity $ — $ — $ 251 $ 251 Interest rate — 1 — 1 Total assets $ — $ 1 $ 251 $ 252 Liabilities Interest rate $ — $ 2 $ — $ 2 Total liabilities $ — $ 2 $ — $ 2 At December 31, 2021 Assets Commodity $ — $ — $ 148 $ 148 Total assets $ — $ — $ 148 $ 148 Liabilities Interest rate $ — $ 19 $ — $ 19 Total liabilities $ — $ 19 $ — $ 19 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and included in Level 3 | The following table presents the net change in DESC's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category. There were no net changes in assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category for the year ended December 31, 2020. 2022 2021 (millions) Balance at January 1, $ 148 $ — Total realized and unrealized gains (losses): Included in earnings: Purchased power 77 8 Included in regulatory assets/liabilities 103 148 Settlements ( 77 ) ( 8 ) Balance at December 31, $ 251 $ 148 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | For financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows: At December 31, 2022 2021 (millions) Carrying Estimated (1) Carrying Estimated (1) Long-term debt (2) $ 3,725 $ 3,614 $ 3,724 $ 4,831 Affiliated long-term debt 230 230 230 230 (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. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Reconciliation of the Carrying Amount of AROs | A reconciliation of the beginning and ending aggregate carrying amount of AROs is as follows: (millions) 2022 2021 Beginning balance $ 599 $ 597 Liabilities incurred 6 — Liabilities settled ( 1 ) — Accretion expense 26 25 Revisions in estimated cash flows (1) ( 2 ) ( 23 ) Ending balance $ 628 $ 599 (1) The decrease in 2021 is due to the remeasurement of gas pipeline AROs. |
Employee Benefit Plans and Eq_2
Employee Benefit Plans and Equity Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for pension benefits and the accumulated benefit obligation for other postretirement benefits are presented below. Pension Benefits Other Postretirement Benefits (millions) 2022 2021 2022 2021 Beginning balance $ 702 $ 742 $ 171 $ 184 Service cost 8 9 1 1 Interest cost 21 20 6 6 Actuarial (gain) loss ( 105 ) ( 28 ) ( 44 ) ( 8 ) Benefits paid ( 46 ) ( 41 ) ( 13 ) ( 12 ) Ending balance $ 580 $ 702 $ 121 $ 171 |
Schedule of Assumptions Used to Determine Benefit Obligations | Significant assumptions used to determine the above benefit obligations are as follows: Pension Benefits Other Postretirement Benefits 2022 2021 2022 2021 Annual discount rate used to determine benefit obligation 5.69 % 3.06 % 5.70 % 3.11 % Assumed annual rate of future salary increases for projected 3.93 % 3.71 % N/A N/A Crediting interest rate for cash balance plans 4.44 % 1.81 % N/A N/A |
Schedule of Net Funded Status | Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Fair value of plan assets $ 561 $ 768 $ — $ — Benefit obligation 580 702 121 171 Funded status $ ( 19 ) $ 66 $ ( 121 ) $ ( 171 ) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized on the consolidated balance sheets were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Noncurrent assets $ — $ 66 $ — $ — Current liability — — ( 11 ) ( 10 ) Noncurrent liability ( 19 ) — ( 110 ) ( 161 ) |
Schedule of Amounts Recognized in AOCI | Amounts recognized in AOCI were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Net actuarial (gain) loss $ 3 $ 1 $ ( 1 ) $ — |
Schedule of Amounts Recognized in Regulatory Assets | Amounts recognized in regulatory assets were as follows: Pension Benefits Other Postretirement Benefits At December 31, 2022 2021 2022 2021 (millions) Net actuarial (gain) loss $ 164 $ 70 $ ( 46 ) $ ( 5 ) |
Schedule of Changes in Fair Value of Plan Assets | Changes in Fair Value of Plan Assets Pension Benefits (millions) 2022 2021 Beginning balance $ 768 $ 747 Actual return (loss) on plan assets ( 161 ) 62 Benefits paid ( 46 ) ( 41 ) Ending balance $ 561 $ 768 |
Schedule of Fair Value Measurements By Category | At December 31, 2022 and 2021, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows: At December 31, 2022 2021 (millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 2 $ — $ 2 $ — $ 1 $ — $ 1 Corporate debt instruments — 137 — 137 — 332 — 332 Government and other debt instruments — 18 — 18 — 67 — 67 Total recorded at fair value $ — $ 157 $ — $ 157 $ — $ 400 $ — $ 400 Assets recorded at NAV (1) Common/collective trust funds 417 387 Total recorded at NAV $ 417 $ 387 Total investments (2) $ 574 $ 787 (1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy. (2) Excludes net assets related to pending sales of securities of $ 1 million, net accrued income of $ 1 million, and includes net assets related to pending purchases of securities of $ 15 million at December 31, 2022. Excludes net assets related to pending sales of securities of $ 4 million, net accrued income of $ 2 million, and includes net assets related to pending purchases of securities of $ 25 million at December 31, 2021. |
Schedule of Expected Benefit Payments | Expected Benefit Payments (millions) Pension Other 2023 $ 45 $ 11 2024 47 11 2025 47 11 2026 46 11 2027 45 11 2028 - 2032 243 57 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit (Credit) Cost Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Service cost $ 8 $ 9 $ 12 $ 1 $ 1 $ 3 Interest cost 21 20 24 6 6 8 Expected return on assets ( 49 ) ( 48 ) ( 45 ) — — — Amortization of actuarial losses 1 6 6 — — — Settlement loss — — 7 — — — Net periodic benefit (credit) cost $ ( 19 ) $ ( 13 ) $ 4 $ 7 $ 7 $ 11 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (net of tax) were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Current year actuarial (gain) loss $ 2 $ ( 3 ) $ 2 $ ( 1 ) $ — $ ( 2 ) Total recognized in other comprehensive income $ 2 $ ( 3 ) $ 2 $ ( 1 ) $ — $ ( 2 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Regulatory Assets | Other changes in plan assets and benefit obligations recognized in regulatory assets were as follows: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 (millions) Current year actuarial (gain) loss $ 95 $ ( 39 ) $ 1 $ ( 41 ) $ ( 6 ) $ ( 27 ) Amortization of actuarial losses ( 1 ) ( 5 ) ( 6 ) — — ( 1 ) Settlement loss — — ( 6 ) — — — Total recognized in regulatory assets $ 94 $ ( 44 ) $ ( 11 ) $ ( 41 ) $ ( 6 ) $ ( 28 ) |
Schedule of Assumptions Used in Determining Net Periodic Benefit Cost | Significant assumptions used in determining net periodic benefit cost: Pension Benefits Other Postretirement Benefits Year Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 3.06 % 2.73 % 3.47 % 3.11 % 2.80 % 2.80 % Expected return on plan assets 7.00 % 7.00 % 7.00 % n/a n/a n/a Rate of compensation increase 3.71 % 4.52 % 3.00 % n/a n/a n/a Crediting interest rate for cash balance plans 1.81 % 1.93 % 2.67 % n/a n/a n/a Health care cost trend rate 6.25 % 6.25 % 6.25 % Ultimate health care cost trend rate 5.00 % 5.00 % 5.00 % Year achieved 2026 - 2027 2025 - 2026 2025 - 2026 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Long-Term Purchase Agreements | At December 31, 2022, DESC had the following long-term commitments that are noncancelable or cancelable only under certain conditions, and that a third party that will provide the contracted goods or services has used to secure financing. (millions) 2023 2024 2025 2026 2027 Thereafter Total Purchased electric capacity (1) $ 87 $ 86 $ 87 $ 91 $ 92 $ 762 $ 1,205 (1) Includes affiliated amounts with certain solar facilities of $ 219 million. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities Recorded in Consolidated Balance Sheets | At December 31, 2022 and 2021, DESC had the following lease assets and liabilities recorded in the Consolidated Balance Sheets: At December 31, 2022 2021 (millions) Lease assets: Operating lease assets (1) $ 20 $ 19 Finance lease assets (2) 9 13 Total lease assets $ 29 $ 32 Lease liabilities: Operating lease - current (3) $ 3 $ 2 Operating lease - noncurrent (4) 18 17 Finance lease - current (5) 4 5 Finance lease - noncurrent 6 10 Total lease liabilities $ 31 $ 34 (1) Included in other deferred debits and other assets in the Consolidated Balance Sheets. (2) Included in utility plant, net, in the Consolidated Balance Sheets, net of $ 20 million and $ 20 million of accumulated amortization at December 31, 2022 and December 31, 2021, respectively. (3) Included in other current liabilities in the Consolidated Balance Sheets. (4) Included in other deferred credits and other liabilities in the Consolidated Balance Sheets. (5) Included in securities due within one year in the Consolidated Balance Sheets. |
Summary of Total Lease Cost | For the years ended December 31, 2022, 2021 and 2020, total lease cost consisted of the following: Year Ended December 31, 2022 2021 2020 (millions) Finance lease cost: Amortization $ 4 $ 6 $ 8 Interest 1 1 1 Operating lease cost 4 4 4 Short-term lease cost 2 2 2 Total lease cost $ 11 $ 13 $ 15 |
Cash Paid for Amounts Included in Measurement of Lease Liabilities | For the years ended December 31, 2022, 2021 and 2020, cash paid for amounts included in the measurement of lease liabilities consisted of the following amounts, included in the Consolidated Statements of Cash Flows: Year Ended December 31, 2022 2021 2020 (millions) Operating cash flows from finance leases $ 1 $ 1 $ 1 Operating cash flows from operating leases 6 4 4 Financing cash flows from finance leases 4 6 8 |
Summary of Weighted Average Remaining Lease Term And Discount Rate for Operating and Finance Leases | At December 31, 2022 and 2021, the weighted average remaining lease term and weighted average discount rate for finance and operating leases were as follows: At December 31, 2022 2021 Weighted average remaining lease term - finance leases 3 years 4 years Weighted average remaining lease term - operating leases 17 years 20 years Weighted average discount rate - finance leases 2.91 % 2.91 % Weighted average discount rate - operating leases 3.94 % 3.97 % |
Schedule of Maturity Analysis of Operating and Finance Lease Liabilities | Lease liabilities have the following scheduled maturities: (millions) Operating Finance 2023 $ 4 $ 4 2024 2 3 2025 2 2 2026 2 1 2027 1 — After 2027 20 — Total undiscounted lease payments 31 10 Present value adjustment ( 10 ) — Present value of lease liabilities $ 21 $ 10 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents segment information pertaining to DESC’s operations: Year Ended December 31, Dominion Energy Corporate Consolidated (millions) 2022 External revenue $ 3,783 $ — $ 3,783 Depreciation and amortization 507 — 507 Interest charges, net of AFUDC 220 — 220 Income tax expense (benefit) 132 ( 1 ) 131 Comprehensive income (loss) available (attributable) to 485 ( 3 ) 482 Capital expenditures 697 — 697 Total assets (billions) 15.7 — 15.7 2021 External revenue $ 3,146 $ — $ 3,146 Depreciation and amortization 486 — 486 Interest charges (benefit), net of AFUDC 215 ( 23 ) 192 Income tax expense (benefit) 125 ( 116 ) 9 Comprehensive income (loss) available (attributable) to 421 ( 212 ) 209 Capital expenditures 758 — 758 Total assets (billions) 14.9 — 14.9 2020 External revenue $ 2,739 $ — $ 2,739 Depreciation and amortization 474 — 474 Interest charges, net of AFUDC 223 6 229 Income tax expense (benefit) 107 ( 36 ) 71 Comprehensive income (loss) available (attributable) to 410 ( 113 ) 297 Capital expenditures 742 — 742 |
Utility Plant and Nonutility _2
Utility Plant and Nonutility Property (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Utility Plant And Non Utility Property [Abstract] | |
Property, Plant and Equipment | Major classes of utility plant and other property and their respective balances at December 31, 2022 and 2021 were as follows: At December 31, 2022 2021 (millions) Gross utility plant: Generation $ 6,108 $ 6,053 Transmission 2,145 2,037 Distribution 5,472 5,191 Storage 76 76 General and other 630 601 Intangible 257 242 Construction work in progress 541 481 Nuclear fuel 550 603 Total gross utility plant $ 15,779 $ 15,284 Gross nonutility property $ 21 $ 44 |
Schedule of Jointly Owned Utility Plants | At December 31, 2022 2021 Summer Unit 1 Summer Unit 1 Percent owned 66.7 % 66.7 % Plant in service $ 1.6 billion $ 1.6 billion Accumulated depreciation $ 751 million $ 725 million Construction work in progress $ 87 million $ 76 million |
Affiliated and Related Party _2
Affiliated and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Affiliated Transactions | Amounts expensed are primarily recorded in other operations and maintenance – affiliated suppliers and other expense, net in the Consolidated Statements of Comprehensive Income. Year Ended December 31, 2022 2021 2020 (millions) Direct and allocated costs from DES and DESS (1) $ 212 $ 226 $ 294 Operating Revenues – Electric from sales to affiliate 4 4 4 Operating Revenues – Gas from sales to affiliate 1 1 1 Operating Expenses – Other taxes from affiliate 8 7 9 Purchases of electricity from solar affiliates 14 14 12 Demand and transportation charges from DECG - Fuel used in — — 16 Demand and transportation charges from DECG - Gas purchased — — 36 (1) Includes capitalized expenditures of $ 48 million, $ 37 million and $ 81 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Schedule of Affiliated Transactions | At December 31, 2022 2021 (millions) Payable to Dominion Energy $ 1 $ 1 Payable to DES 22 30 Payable to SCANA Corporation 7 — Payable to Public Service Company of North Carolina, Incorporated 12 — Receivable from Public Service Company of North Carolina, Incorporated — 60 Payable to solar affiliates — 1 Receivable from nuclear affiliates — 1 Derivative assets with affiliates (1) 51 28 (1) Includes amounts recorded in other current assets of $ 8 million and $ 4 million as of December 31, 2022 and 2021, respectively, and amounts recorded in other deferred debits and other assets of $ 43 million and $ 24 million as of December 31, 2022 and 2021, respectively. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Statement [Abstract] | |
Components of Other Income (Expense), Net | Components of other income (expense), net are as follows: Year Ended December 31, 2022 2021 2020 (millions) Revenues from contracts with customers $ — $ — $ 1 Other income 10 11 13 Gains on sales of assets (1) 42 — — Other expense 2 ( 18 ) ( 38 ) Allowance for equity funds used during construction 1 5 1 Other income (expense), net $ 55 $ ( 2 ) $ ( 23 ) (1) Includes amounts recognized in connection with the transfer of property, plant and equipment to satisfy litigation. See Note 12 for additional information. |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of primary operating segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Significant Accounting Policies | ||||||
Public utilities, allowance for funds used during construction, rate | 2.70% | 2.60% | 2.60% | |||
Utilities operating expense, maintenance and operations | $ 460 | $ 417 | $ 357 | |||
Turbine maintenance expense | 20 | 20 | 19 | |||
Amount accrued annually for nuclear fuel outages | 17 | |||||
Nuclear refueling outage cost | 1 | 24 | 23 | |||
Amount accrued annually for tree trimming and vegetation management | $ 28 | |||||
Amount accrued for tree trimming and vegetation management | 9 | |||||
Tree trimming and vegetation management cost | 33 | 9 | ||||
Decommissioning liability, noncurrent | 788 | |||||
Payments to acquire investments to be held in decommissioning trust fund | 3 | |||||
Unbilled revenues | 188 | 139 | ||||
Unrecognized tax benefits | 68 | 62 | 138 | $ 132 | ||
Interest expense | 2 | 21 | 7 | |||
Penalty expenses | 7 | 4 | ||||
Income taxes related to affiliated payable | 47 | |||||
Income taxes related to affiliated receivable | 24 | |||||
Margin liabilities with cash collateral | 0 | 0 | ||||
Margin assets with cash collateral | 1 | $ 11 | ||||
Option to extend, existence, operating lease | true | |||||
Maximum [Member] | ||||||
Significant Accounting Policies | ||||||
Interest income | $ 1 | $ 1 | $ 1 | |||
Lease renewal term | 70 years | |||||
Original term of leases | 1 year | |||||
Minimum [Member] | ||||||
Significant Accounting Policies | ||||||
Lease renewal term | 1 year | |||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Residential Commercial And Industrial Customers [Member] | ||||||
Significant Accounting Policies | ||||||
Concentration risk percentage | 4% | |||||
Turbine [Member] | ||||||
Significant Accounting Policies | ||||||
Utilities operating expense, maintenance and operations | $ 25 | $ 18 | ||||
Genco [Member] | ||||||
Significant Accounting Policies | ||||||
Power Generation Capacity Megawatts | MW | 605 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Weighted Average Depreciation Rates) (Detail) | 12 Months Ended | ||||
Dec. 31, 2022 | [1] | Dec. 31, 2021 | [1] | Dec. 31, 2020 | |
Generation [Member] | |||||
Composite weighted average depreciation rates for utility plant | 2.34% | 2.46% | 2.50% | ||
Transmission [Member] | |||||
Composite weighted average depreciation rates for utility plant | 2.36% | 2.56% | 2.56% | ||
Distribution [Member] | |||||
Composite weighted average depreciation rates for utility plant | 2.59% | 2.48% | 2.42% | ||
Storage [Member] | |||||
Composite weighted average depreciation rates for utility plant | 2.93% | 2.85% | 2.75% | ||
General and other [Member] | |||||
Composite weighted average depreciation rates for utility plant | 3.35% | 2.27% | 3.17% | ||
[1] Rates include the impact of a change in depreciation rates approved in connection with the settlement of the electric base rate case in 2021, which resulted in a decrease to depreciation expense of $ 12 million and $ 6 million for the years ended December 31, 2022 and 2021, respectively. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Weighted Average Depreciation Rates) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Public utilities, decrease in depreciation expense | $ 12 | $ 6 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Cash and Cash equivalents) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 11 | $ 30 | $ 5 | $ 4 | |
Restricted cash and equivalents | [1] | 24 | |||
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows | $ 11 | $ 54 | $ 5 | $ 4 | |
[1] Restricted cash and equivalent balances are presented within other current assets on the Consolidated Balance Sheets. |
Rate and Other Regulatory Mat_3
Rate and Other Regulatory Matters (Narrative) (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jun. 30, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Nov. 30, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2022 | |
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Percentage of current authorized earned ROE under RSA | 8.14% | 9.90% | |||||||||||
Other asset impairment charges | $ 249 | ||||||||||||
Other asset impairment charges after tax | 187 | ||||||||||||
Purchase of first mortgage bond | $ 237 | ||||||||||||
Recovery under settlement agreement | $ 18 | ||||||||||||
Recovery under settlement agreement after tax | 14 | ||||||||||||
South Carolina Commission Order for Increase/Decrease of Total Fuel Cost Component of Retail Electric Rates to produce a projected under-recovery | $ 168 | ||||||||||||
South Carolina Commission Order for Increase/Decrease of Total Fuel Cost Component of Retail Electric Rates to produce a projected under-recovery | $ 143 | ||||||||||||
South Carolina Commission Order for Increase/Decrease of Total Fuel Cost Component of Retail Electric Rates to produce a projected under-recovery | $ 399 | ||||||||||||
Annual increase (decrease) in pension cost rider | (12) | ||||||||||||
South Carolina Commission order, revenue requirement under RSA | $ 549 | $ 553 | |||||||||||
South Carolina Commission order, increase in natural gas rates under RSA | 125 | 129 | |||||||||||
South Carolina Commission order, increase in natural gas rates under RSA effective first billing cycle | $ 12 | $ 16 | |||||||||||
Regulatory asset recovery assessment end period | 2047 | ||||||||||||
Impairment of assets and other charges | $ 4 | $ 311 | $ (14) | ||||||||||
Subsequent Event [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
South Carolina Commission Order for Increase/Decrease of Total Fuel Cost Component of Retail Electric Rates to produce a projected under-recovery | $ 176 | ||||||||||||
South Carolina Commission Order, Annual DSM Program Rate Rider Recovery Amount | $ 46 | ||||||||||||
Annual increase (decrease) in pension cost rider | $ 24 | ||||||||||||
Monetization Of Guaranty Settlement [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Electric service customers recovery period | 20 years | ||||||||||||
End period for recovery | 2039 | ||||||||||||
Income Taxes Refundable Through Future Rates [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Remaining lives of related property period | 85 years | ||||||||||||
Reserve For Refunds To Electric Utility Customers [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Electric service customers recovery period | 11 years | ||||||||||||
Deferred Losses or Gains On Interest Rate Derivatives [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Changes in fair value and payments of interest rate derivatives designated as cash flow hedge, amortized to interest expense, year | 2065 | ||||||||||||
Dominion Energy South Carolina, Inc. [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Storm restoration recovery period | 10 years | ||||||||||||
NND Project Costs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Electric service customers recovery period | 20 years | ||||||||||||
End period for recovery | 2039 | ||||||||||||
Deferred Employee Benefit Plan Costs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Regulatory asset recovery assessment end period | 2044 | ||||||||||||
Average service period expected to recover other deferred benefit costs | 11 years | ||||||||||||
Other Unrecovered Plant [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Amortization of carrying value of coal-fired generating unit | 2025 | ||||||||||||
New expected amortization of carrying value of coal-fired generating unit | 2029 | ||||||||||||
Increase in abandonment of certain peaking gas generation facilities | $ 7 | ||||||||||||
Advanced Metering Infrastructure Project [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
New expected amortization of carrying value of coal-fired generating unit | 2028 | ||||||||||||
Demand Side Management Programs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Recovery period of regulatory asset | 3 years | ||||||||||||
Asset Retirement Obligation Costs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Recovery period of regulatory asset | 105 years | ||||||||||||
Environmental Remediation Costs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Recovery period of regulatory asset | 27 years | ||||||||||||
Deferred Transmission Operating Costs [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Recovery period of regulatory asset | 42 years | ||||||||||||
Rider DSM [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
South Carolina Commission Order, Annual DSM Program Rate Rider Recovery Amount | $ 60 | ||||||||||||
South Carolina Office Of Regulatory Staff And Other Parties [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Amount of Increase in proposed non fuel base rate | $ 62 | ||||||||||||
Percentage of current authorized earned ROE | 9.50% | ||||||||||||
Non fuel base rate increase after amortization | $ 36 | ||||||||||||
Retail electric customer balance | 15 | ||||||||||||
Welfare charges for customers | $ 15 | ||||||||||||
Toshiba Corporation [Member] | |||||||||||||
Rate And Other Regulatory Matters [Line Items] | |||||||||||||
Bankruptcy Claims, Amount of Claims Filed | $ 66 |
Rate and Other Regulatory Mat_4
Rate and Other Regulatory Matters (Schedule of Regulatory Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Regulatory Assets | |||
Regulatory assets, current | $ 743 | $ 361 | |
Regulatory assets, noncurrent | 3,289 | 3,323 | |
Total regulatory assets | 4,032 | 3,684 | |
NND Project Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [1] | 138 | 138 |
Regulatory assets, noncurrent | [1] | 2,088 | 2,226 |
Deferred Employee Benefit Plan Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [2] | 4 | 8 |
Regulatory assets, noncurrent | [2] | 161 | 106 |
Interest Rate Hedges [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [3] | 169 | 170 |
Other Unrecovered Plant [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [4] | 17 | 16 |
Regulatory assets, noncurrent | [4] | 58 | 57 |
Demand Side Management Programs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [5] | 21 | 23 |
Regulatory assets, noncurrent | [5] | 41 | 45 |
Asset Retirement Obligation Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [6] | 381 | 311 |
Cost of Fuel and Purchased Gas Under-Collections [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [7] | 508 | 126 |
Other Regulatory Assets [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | 55 | 50 | |
Regulatory assets, noncurrent | [8] | 131 | 138 |
Environmental Remediation Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [9] | 37 | 30 |
Deferred Storm Damage Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [10] | 43 | 38 |
Deferred Transmission Operating Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [11] | 75 | 77 |
Derivatives [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [12] | $ 105 | $ 125 |
[1] Reflects expenditures associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from electric service customers over a 20 -year period ending in 2039 . Employee benefit plan costs have historically been recovered as they have been recorded under GAAP. Deferred employee benefit plan costs represent amounts of pension and other postretirement benefit costs which were accrued as liabilities and treated as regulatory assets pursuant to FERC guidance, and costs deferred pursuant to specific South Carolina Commission regulatory orders. DESC expects to recover deferred pension costs through utility rates over periods through 2044 . DESC expects to recover other deferred benefit costs through utility rates, primarily over average service periods of participating employees up to 11 years. Represents the changes in fair value and payments made or received upon settlement of certain interest rate derivatives designated as cash flow hedges. The amounts recorded are expected to be amortized to interest expense over the lives of the underlying debt through 2065 . Represents the carrying value of coal-fired generating units, including related materials and supplies inventory, retired from service prior to being fully depreciated. DESC is amortizing these amounts through cost of service rates following depreciation amounts that were designed to recover the retired units cost over their previous estimated remaining useful lives, which has been estimated to be through 2025 . Based on current projections of remaining decommissioning costs, projected recovery is expected to extend through 2029 . In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advanced Metering Infrastructure project, which are being recovered through rates through 2028 . This amount also includes certain inventory and preliminary survey and investigation charges being amortized over five years related to the transition or conversion from coal to gas fired generation at certain facilities. In addition, reflects an increase of approximately $ 7 million related to the abandonment of certain peaking gas generation facilities, such amounts having been reclassified from property, plant and equipment to noncurrent other unrecovered plant. Unamortized amounts are included in rate base and are earning a current return. Represents deferred costs associated with electric demand reduction programs, and such deferred costs are currently being recovered over three years through an approved rate rider. Represents 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. Represents amounts under- or over-collected from customers pursuant to the cost of fuel components approved by the South Carolina Commission. Various other regulatory assets are expected to be recovered through rates over varying periods through 2047 . Reflects amounts associated with the assessment and clean-up of sites currently or formerly owned by DESC. Such remediation costs are expected to be recovered over periods of up to 27 years. See Note 12 for additional information. Represents storm restoration costs for which DESC expects to receive future recovery through customer rates over approximately 10 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and are earning a current return. Includes deferred depreciation and property taxes associated with certain transmission assets for which DESC expects recovery from customers through future rates over approximately 42 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case. Unamortized amounts are included in rate base and earning a current return. See Note 12 for additional information. 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. |
Rate and Other Regulatory Mat_5
Rate and Other Regulatory Matters (Schedule of Regulatory Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Regulatory Liabilities | |||
Regulatory liability, current | $ 251 | $ 245 | |
Regulatory liability, noncurrent | 2,785 | 2,936 | |
Total regulatory liabilities | 3,036 | 3,181 | |
Monetization Of Guaranty Settlement [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [1] | 67 | 67 |
Regulatory liability, noncurrent | [1] | 702 | 831 |
Income Taxes Refundable Through Future Rates [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [2] | 34 | 42 |
Regulatory liability, noncurrent | [2] | 871 | 903 |
Asset Removal Costs [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, noncurrent | [3] | 596 | 570 |
Reserve For Refunds To Electric Utility Customers [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [4] | 100 | 113 |
Regulatory liability, noncurrent | [4] | 325 | 425 |
Derivatives [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [5] | 43 | 20 |
Regulatory liability, noncurrent | [5] | 276 | 198 |
Other Regulatory Liability [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | 7 | 3 | |
Regulatory liability, noncurrent | $ 15 | $ 9 | |
[1] Represents proceeds related to the monetization of the Toshiba Settlement. In accordance with the SCANA Merger Approval Order, this balance, net of amounts that may be required to satisfy liens, will be refunded to electric customers over a 20 -year period ending in 2039 . Includes (i) excess deferred income taxes arising from the remeasurement of deferred income taxes in connection with the enactment of the 2017 Tax Reform Act (certain of which are protected under normalization rules and will be amortized over the remaining lives of related property, and certain of which will be amortized to the benefit of customers over prescribed periods as instructed by regulators) and (ii) deferred income taxes arising from investment tax credits, offset by (iii) deferred income taxes that arise from utility operations that have not been included in customer rates (a portion of which relate to depreciation and are expected to be recovered over the remaining lives of the related property which may range up to 85 years). See Note 7 for additional information. Represents estimated net collections through depreciation rates of amounts to be expended for the removal of assets in the future. Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited to customers over an estimated 11 -year period effective February 2019 in connection with the SCANA Merger Approval Order. 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. |
Operating Revenue (Disaggregati
Operating Revenue (Disaggregation of Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating revenue from contracts with customers | $ 0 | $ 0 | $ 1 | |
Total Operating Revenues | [1] | 3,783 | 3,146 | 2,739 |
Electric Operations | ||||
Operating revenue from contracts with customers | 3,079 | 2,626 | 2,337 | |
Other revenues | 27 | 13 | 15 | |
Total Operating Revenues | 3,106 | 2,639 | 2,352 | |
Gas Distribution | ||||
Operating revenue from contracts with customers | 676 | 506 | 387 | |
Other revenues | 1 | 1 | 0 | |
Total Operating Revenues | 677 | 507 | 387 | |
Residential | Electric Operations | ||||
Operating revenue from contracts with customers | 1,375 | 1,211 | 1,127 | |
Residential | Gas Distribution | ||||
Operating revenue from contracts with customers | 303 | 245 | 201 | |
Commercial | Electric Operations | ||||
Operating revenue from contracts with customers | 968 | 834 | 746 | |
Commercial | Gas Distribution | ||||
Operating revenue from contracts with customers | 184 | 133 | 103 | |
Industrial | Electric Operations | ||||
Operating revenue from contracts with customers | 533 | 424 | 341 | |
Industrial | Gas Distribution | ||||
Operating revenue from contracts with customers | 166 | 103 | 65 | |
Other | Electric Operations | ||||
Operating revenue from contracts with customers | 203 | 157 | 123 | |
Other | Gas Distribution | ||||
Operating revenue from contracts with customers | $ 23 | $ 25 | $ 18 | |
[1] See Note 16 for amounts attributable to affiliates. |
Operating Revenue (Narrative) (
Operating Revenue (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Contract liability balances | $ 12 | $ 8 |
Revenue recognized from contract liability balances | $ 6 | $ 4 |
Minimum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Service Contract, Term | 10 years | |
Maximum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Service Contract, Term | 15 years |
Operating Revenue (Balance and
Operating Revenue (Balance and Activity Related to Contract Costs Deferred as Regulatory Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues [Abstract] | ||
Beginning balance | $ 11 | $ 12 |
Amortization | (2) | (1) |
Ending balance | $ 9 | $ 11 |
Equity (Narrative) (Detail)
Equity (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Common stock, par value | $ 0 | $ 0 | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 40,300,000 | 40,300,000 | ||
Common stock, shares outstanding | 40,300,000 | 40,300,000 | ||
Preferred stock, par value | $ 0 | $ 0 | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||
Preferred stock, shares issued | 1,000 | 1,000 | ||
Preferred stock, shares outstanding | 1,000 | 1,000 | ||
Dominion Energy | ||||
Class Of Stock [Line Items] | ||||
Contributions from SCANA | $ 150 | |||
Dominion Energy | Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock issued to satisfy the settlement | $ 322 | $ 322 | ||
Dominion Energy | FILOT [Member] | Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock issued to satisfy the settlement | 104 | |||
Dominion Energy | SCDOR | Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock issued to satisfy the settlement | $ 72 | $ 45 |
Long-Term and Short-Term Debt_2
Long-Term and Short-Term Debt (Schedule of Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total principal | $ 3,987 | $ 3,987 | |
Securities due within one year | 0 | 0 | |
Unamortized discount, premium and debt issuance costs, net | (32) | (33) | |
Finance leases | 10 | ||
Total long-term debt | 3,961 | 3,964 | |
First Mortgage Bonds | |||
Debt Instrument [Line Items] | |||
Total principal | $ 3,634 | ||
First Mortgage Bonds | DESC | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [1] | 5.09% | |
Total principal | $ 3,634 | 3,634 | |
Tax Exempt Financings Variable Rate Due 2038 | DESC | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [2] | 3.70% | |
Total principal | [2] | $ 35 | 35 |
Tax Exempt Financings Variable Rate Due 2038 | Genco | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [1] | 3.70% | |
Total principal | $ 33 | 33 | |
Tax Exempt Financings 3.625% and 4.00% Due 2028 and 2033 | DESC | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [2] | 3.90% | |
Total principal | [2] | $ 54 | 54 |
Other Debt | |||
Debt Instrument [Line Items] | |||
Total principal | $ 231 | ||
Other Debt | DESC | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [2] | 3.63% | |
Total principal | [2] | $ 1 | 1 |
3.05% Affiliated Note Due 2024 | Genco | |||
Debt Instrument [Line Items] | |||
Weighted-average coupon rate | [1] | 3.05% | |
Total principal | $ 230 | 230 | |
Finance Lease | |||
Debt Instrument [Line Items] | |||
Finance leases | $ 6 | $ 10 | |
[1] Represents weighted-average coupon rates for debt outstanding as of December 31, 2022 Industrial revenue bonds totaling $ 68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2023. |
Long-Term and Short-Term Debt_3
Long-Term and Short-Term Debt (Schedule of Debt) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Redemption of remaining principal outstanding plus accrued interest | $ 0 | $ 34 | $ 0 |
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 68 | ||
First Mortgage Bonds | Minimum [Member] | DESC | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2028 | ||
Debt instrument, interest rate | 2.30% | ||
First Mortgage Bonds | Maximum [Member] | DESC | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2065 | ||
Debt instrument, interest rate | 6.625% | ||
Tax Exempt Financings Variable Rate Due 2038 | DESC | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2038 | ||
Tax Exempt Financings Variable Rate Due 2038 | Genco | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2038 | ||
Tax Exempt Financings 3.625% and 4.00% Due 2028 and 2033 | Minimum [Member] | DESC | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2028 | ||
Debt instrument, interest rate | 3.625% | ||
Tax Exempt Financings 3.625% and 4.00% Due 2028 and 2033 | Maximum [Member] | DESC | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2033 | ||
Debt instrument, interest rate | 4% | ||
3.05% Affiliated Note Due 2024 | Genco | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Year | 2024 | ||
Debt instrument, interest rate | 3.05% |
Long-Term and Short-Term Debt_4
Long-Term and Short-Term Debt (Schedule of Principal Payments of Long-Term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2023 | $ 0 | |
2024 | 230 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 3,757 | |
Total | $ 3,987 | $ 3,987 |
Weighted-average coupon, 2024 | 3.05% | |
Weighted-average coupon, Thereafter | 5.05% | |
First Mortgage Bonds | ||
Debt Instrument [Line Items] | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 3,634 | |
Total | 3,634 | |
Tax Exempt Financings | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 122 | |
Total | 122 | |
Other Debt | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 230 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 1 | |
Total | $ 231 |
Long-Term and Short-Term Debt_5
Long-Term and Short-Term Debt (Narrative) (Detail) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Debt Instrument [Line Items] | |||||
Unfunded property additions | 70% | ||||
Consecutive months for bond ratio | 12 months | ||||
Months preceding issuance of bonds | 18 months | ||||
Bonds Ratio | 7 | ||||
Redemption of remaining principal outstanding plus accrued interest | $ 0 | $ 34,000,000 | $ 0 | ||
Commercial paper borrowing limit | $ 2,200,000,000 | ||||
Short-term borrowings outstanding | 871,000,000 | 458,000,000 | |||
Interest charges | [1] | 220,000,000 | 192,000,000 | 229,000,000 | |
Interest income from money pool transactions | 2,000,000 | ||||
Interest expense from money pool transactions | 2,000,000 | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Short term commercial paper maturity period | 1 year | ||||
Interest income from money pool transactions | 1,000,000 | ||||
Interest expense from money pool transactions | 1,000,000 | ||||
Dominion Energy [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings outstanding, maximum | 900,000,000 | ||||
Short-term borrowings outstanding | 769,000,000 | 415,000,000 | |||
Interest charges | 19,000,000 | $ 7,000,000 | |||
Dominion Energy [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest charges | 1,000,000 | ||||
Joint Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Facility limit | [2] | 1,000,000,000 | $ 1,000,000,000 | ||
Joint Revolving Credit Facility [Member] | Dominion Energy [Member] | |||||
Debt Instrument [Line Items] | |||||
Facility limit | 6,000,000,000 | ||||
Industrial Revenue Bonds [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 68,000,000 | ||||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 4.76% | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 68,000,000 | ||||
Facility limit | $ 1,000,000,000 | ||||
Genco | |||||
Debt Instrument [Line Items] | |||||
Commercial paper borrowing limit | $ 200,000,000 | ||||
Genco | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Short term commercial paper maturity period | 1 year | ||||
[1] See Note 16 for amounts attributable to affiliates. A maximum of $ 1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2022, the sub-limit for DESC was $ 500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or 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 $ 1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Long-Term and Short-Term Debt_6
Long-Term and Short-Term Debt (Schedule of Line of Credit Facilities) (Detail) - Joint Revolving Credit Facility - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Facility limit | [1] | $ 1,000,000,000 | $ 1,000,000,000 |
Outstanding Commercial Paper | [1],[2] | 249,000,000 | 0 |
Outstanding Letters of Credit | [1] | $ 0 | $ 0 |
[1] A maximum of $ 1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2022, the sub-limit for DESC was $ 500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or 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 $ 1.0 billion (or the sub-limit, whichever is less) of letters of credit. The weighted-average interest rate of the outstanding commercial paper supported by the credit facility was 4.76 % at December 31 2022. |
Long-Term and Short-Term Debt_7
Long-Term and Short-Term Debt (Schedule of Line of Credit Facilities) (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maturity date | 2026-06 | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maturity date | 2028-06 | ||
Joint Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Facility limit | [1] | $ 1,000,000,000 | $ 1,000,000,000 |
Line of Credit Facility | |||
Debt Instrument [Line Items] | |||
Facility limit | $ 500,000,000 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Line of credit facility, commitment fee percentage | 4.76% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Facility limit | $ 1,000,000,000 | ||
[1] A maximum of $ 1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2022, the sub-limit for DESC was $ 500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or 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 $ 1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Investments Owned Federal Income Tax Note [Line Items] | |
Increase Decrease in Income Tax Expense | $ 38 |
Income tax examination, description | The statute is closed for IRS examination of years prior to 2013. The IRS is currently examining DESC’s federal returns from 2013 through 2017. DESC is no longer subject to state and local income tax examinations by tax authorities for years prior to 2019. |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 39 |
Potential increase in earnings in next twelve months if tax benefits recognized | $ 26 |
Earliest Tax Year | Federal | IRS | |
Investments Owned Federal Income Tax Note [Line Items] | |
Income tax examination, year under examination | 2013 |
Latest Tax Year | Federal | IRS | |
Investments Owned Federal Income Tax Note [Line Items] | |
Income tax examination, year under examination | 2017 |
Income Taxes (Details of Income
Income Taxes (Details of Income Tax Expense for Continuing Operations Including Noncontrolling Interests) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (69) | $ (52) | $ (139) |
State | (3) | (39) | 3 |
Total current benefit | (72) | (91) | (136) |
Deferred: | |||
Taxes before operating loss carryforwards and investment tax credits | 135 | 61 | 158 |
Tax utilization expense of operating loss carryforwards | 33 | 34 | 33 |
State | 36 | 7 | 17 |
Total deferred expense | 204 | 102 | 208 |
Investment tax credit-amortization | (1) | (2) | (1) |
Total income tax expense | $ 131 | $ 9 | $ 71 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 21% | 21% | 21% |
Increases (reductions) resulting from: | |||
State taxes, net of federal benefit | 4.70% | 5.60% | 4.20% |
AFUDC - equity | 0% | (0.40%) | (0.10%) |
Amortization of federal investment tax credits | (0.20%) | (0.60%) | (0.40%) |
Reversal of excess deferred income taxes | (4.60%) | (8.10%) | (6.00%) |
Changes in unrecognized tax benefits | 0% | (15.80%) | (0.00%) |
Prior period adjustments | 0% | 1.60% | 0% |
Other | (0.20%) | 0.50% | 0.10% |
Effective tax rate | 20.70% | 3.80% | 18.80% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Income Taxes) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income taxes: | ||
Total deferred income tax assets | $ 892 | $ 1,015 |
Total deferred income tax liabilities | 2,107 | 1,974 |
Total net deferred income tax liabilities | 1,215 | 959 |
Depreciation method and plant basis differences | 1,164 | 1,139 |
Excess deferred income taxes | (219) | (228) |
Unrecovered nuclear plant cost | 479 | 508 |
DESC rate refund | (89) | (113) |
Toshiba settlement | (162) | (189) |
Nuclear decommissioning | (44) | (54) |
Deferred state income taxes | 275 | 226 |
Federal benefit of deferred state income taxes | (60) | (47) |
Deferred fuel, purchased energy and gas costs | 107 | 27 |
Pension benefits | 51 | 35 |
Other postretirement benefits | (32) | (35) |
Loss and credit carryforwards | (313) | (343) |
Other | 58 | 33 |
Deferred investment tax credits-regulated operations | 15 | 16 |
Total deferred taxes and deferred investment tax credits | $ 1,230 | $ 975 |
Income Taxes (Summary of Deduct
Income Taxes (Summary of Deductible Loss and Credit Carryforwards) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Investments Owned Federal Income Tax Note [Line Items] | |
Loss and Credit Carryforwards, Deductible Amount | $ 3,510 |
Loss and Credit Carryforwards, Deferred Tax Asset | 353 |
Federal | |
Investments Owned Federal Income Tax Note [Line Items] | |
Loss Carryforwards, Deductible Amount | 731 |
Loss Carryforwards, Deferred Tax Asset | $ 153 |
Loss Carryforwards, Expiration Period | 2037 |
Federal | Production and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Deductible Amount | $ 0 |
Credit Carryforwards, Deferred Tax Asset | $ 29 |
Federal | Minimum [Member] | Production and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Expiration Period | 2035 |
Federal | Maximum [Member] | Production and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Expiration Period | 2042 |
State | |
Investments Owned Federal Income Tax Note [Line Items] | |
Loss Carryforwards, Deductible Amount | $ 2,779 |
Loss Carryforwards, Deferred Tax Asset | 139 |
State | Investment and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Deductible Amount | 0 |
Credit Carryforwards, Deferred Tax Asset | $ 32 |
State | Minimum [Member] | |
Investments Owned Federal Income Tax Note [Line Items] | |
Loss Carryforwards, Expiration Period | 2037 |
State | Minimum [Member] | Investment and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Expiration Period | 2026 |
State | Maximum [Member] | |
Investments Owned Federal Income Tax Note [Line Items] | |
Loss Carryforwards, Expiration Period | 2042 |
State | Maximum [Member] | Investment and Other Credits | |
Investments Owned Federal Income Tax Note [Line Items] | |
Credit Carryforwards, Expiration Period | 2032 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits Roll Forward) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 62 | $ 138 | $ 132 |
Increases-prior period positions | 6 | 6 | 5 |
Decreases-prior period positions | (1) | (57) | 0 |
Increases-current period positions | 1 | 1 | 1 |
Settlements with tax authorities | 0 | (26) | 0 |
Ending balance | $ 68 | $ 62 | $ 138 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Additional collateral to its counterparties | $ 1 | $ 8 |
Collateral already posted | 1 | 11 |
Fair value of derivative instruments with credit-related contingent provisions that are in liability position and not fully collateralized with cash | $ 2 | $ 19 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Offsetting Assets and Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Gross amounts not offset in the consolidated balance sheet, cash collateral received | $ 0 | $ 0 |
Gross amounts not offset in the consolidated balance sheet, net amounts | 2 | 19 |
Liability | ||
Derivative [Line Items] | ||
Gross liabilities presented in the consolidated balance sheet | 2 | 19 |
Gross amounts not offset in the consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, cash collateral paid | 1 | 11 |
Gross amounts not offset in the consolidated balance sheet, net amounts | 1 | 8 |
Assets | ||
Derivative [Line Items] | ||
Gross Assets presented in the consolidated balance sheet | 1 | 0 |
Gross amounts not offset in the consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, cash collateral received | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, net amounts | 1 | 0 |
Interest Rate Contract [Member] | Over The Counter [Member] | Liability | ||
Derivative [Line Items] | ||
Gross liabilities presented in the consolidated balance sheet | 2 | 19 |
Gross amounts not offset in the consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, cash collateral paid | 1 | 11 |
Gross amounts not offset in the consolidated balance sheet, net amounts | 1 | 8 |
Interest Rate Contract [Member] | Over The Counter [Member] | Assets | ||
Derivative [Line Items] | ||
Gross Assets presented in the consolidated balance sheet | 1 | 0 |
Gross amounts not offset in the consolidated balance sheet, financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, cash collateral received | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, net amounts | $ 1 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Volume of Derivative Activity) (Detail) MWh in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MWh | ||
Interest Rate Swap Current [Member] | ||
Derivative [Line Items] | ||
Interest rate | $ | $ 0 | [1] |
Interest Rate Swap Current [Member] | Electricity [Member] | ||
Derivative [Line Items] | ||
Fixed price | MWh | 2 | |
Interest Rate Swap Noncurrent [Member] | ||
Derivative [Line Items] | ||
Interest rate | $ | $ 71 | [1] |
Interest Rate Swap Noncurrent [Member] | Electricity [Member] | ||
Derivative [Line Items] | ||
Fixed price | MWh | 24 | |
[1] Maturity is determined based on final settlement period. |
Derivative Financial Instrume_6
Derivative Financial Instruments (Fair Value of Derivatives) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Derivative Asset, Current | [1] | $ 41 | $ 18 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | [2] | $ 211 | $ 130 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Derivative Assets | $ 252 | $ 148 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | Assets | |
Derivative Liability, Current | [3] | $ 2 | |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | [4] | $ 2 | $ 17 |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Derivative Liability | $ 2 | $ 19 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities And Stockholders Equity | Liabilities And Stockholders Equity | |
Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | $ 41 | $ 18 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | $ 210 | $ 130 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Noncurrent | $ 2 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | ||
Derivative Liability, Current | $ 2 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | $ 1 | $ 17 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | [1] | $ 0 | $ 0 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | [2] | $ 0 | $ 0 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Derivative Assets | $ 0 | $ 0 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | Assets | |
Derivative Liability, Current | [3] | $ 1 | |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | [4] | $ 2 | $ 11 |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Derivative Liability | $ 2 | $ 12 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities And Stockholders Equity | Liabilities And Stockholders Equity | |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | $ 0 | $ 0 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | $ 0 | $ 0 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Noncurrent | $ 2 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | ||
Derivative Liability, Current | $ 1 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | $ 0 | $ 11 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | [1] | $ 41 | $ 18 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | [2] | $ 211 | $ 130 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Derivative Assets | $ 252 | $ 148 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets | Assets | |
Derivative Liability, Current | [3] | $ 1 | |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | [4] | $ 0 | $ 6 |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Derivative Liability | $ 0 | $ 7 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities And Stockholders Equity | Liabilities And Stockholders Equity | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Current | $ 41 | $ 18 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets Current | Other Assets Current | |
Derivative Asset, Noncurrent | $ 210 | $ 130 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | Regulated Entity Other Assets Noncurrent | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Noncurrent | $ 0 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Regulated Entity Other Assets Noncurrent | ||
Derivative Liability, Current | $ 1 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | ||
Derivative Liability, Noncurrent | $ 1 | $ 6 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
[1] Current derivative assets are presented in other current assets in DESC’s Consolidated Balance Sheets. Noncurrent derivative assets are presented in other deferred debits and other assets in DESC’s Consolidated Balance Sheets. Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets. Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in DESC’s Consolidated Balance Sheets. |
Derivative Financial Instrume_7
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships) (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivatives Subject to Regulatory Treatment | [1] | $ 11 | $ 9 | $ 1 |
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivatives Subject to Regulatory Treatment | [1] | $ 11 | $ 9 | $ 1 |
[1] 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 Consolidated Statements of Comprehensive Income. |
Derivative Financial Instrume_8
Derivative Financial Instruments (Derivatives Not Designated as Hedging Instruments) (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ 75 | $ 6 | $ (1) |
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ 77 | $ 8 | $ 0 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Utilities Operating Expense Purchased Power | Utilities Operating Expense Purchased Power | Utilities Operating Expense Purchased Power | |
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ (2) | $ (2) | $ (1) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | |
[1] Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Consolidated Statements of Comprehensive Income. |
Fair Value Measurements, Incl_3
Fair Value Measurements, Including Derivatives (Schedule of Quantitative Information About Level 3 Fair Value Measurements) (Details) $ in Millions | Dec. 31, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | $ 251 | |
Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 251 | |
Minimum [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 27 | |
Maximum [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 110 | |
Weighted Average [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | $ 51 | [1] |
[1] Averages weighted by volume. |
Fair Value Measurements, Incl_4
Fair Value Measurements, Including Derivatives (Nonrecurring Fair Value Measurements) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment of assets and other charges | $ 4 | $ 311 | $ (14) | |
Nonutility Property | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment of assets and other charges | $ 12 | |||
Impairment of assets and other charges, after-tax | 9 | |||
Estimated fair value of property | $ 6 |
Fair Value Measurements, Incl_5
Fair Value Measurements, Including Derivatives (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair value, recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets | $ 252 | $ 148 |
Liabilities | ||
Total liabilities | 2 | 19 |
Commodity Contract [Member] | ||
Assets | ||
Total assets | 251 | 148 |
Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 1 | |
Liabilities | ||
Total liabilities | 2 | 19 |
Level 1 | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Commodity Contract [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Level 1 | Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 0 | |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 1 | 0 |
Liabilities | ||
Total liabilities | 2 | 19 |
Level 2 | Commodity Contract [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 1 | |
Liabilities | ||
Total liabilities | 2 | 19 |
Level 3 | ||
Assets | ||
Total assets | 251 | 148 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Commodity Contract [Member] | ||
Assets | ||
Total assets | 251 | 148 |
Level 3 | Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 0 | |
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements, Incl_6
Fair Value Measurements, Including Derivatives (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and Included in Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Regulatory Assets | ||
Beginning balance | $ 148 | $ 0 |
Included in earnings: | ||
Purchased power | 77 | 8 |
Settlements | (77) | (8) |
Ending balance | 251 | 148 |
Other Regulatory Assets Liabilities | ||
Included in earnings: | ||
Included in regulatory assets/liabilities | $ 103 | $ 148 |
Fair Value Measurements, Incl_7
Fair Value Measurements, Including Derivatives (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Unrealized gains and losses | $ 0 | $ 0 |
Fair Value Measurements, Incl_8
Fair Value Measurements, Including Derivatives (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Carrying Amount | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 3,725 | $ 3,724 |
Affiliated long-term debt | 230 | 230 | |
Estimated Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt | [1],[2] | 3,614 | 4,831 |
Affiliated long-term debt | [2] | $ 230 | $ 230 |
[1] 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. 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. |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, other conditional obligations | $ 329 | $ 312 |
Asset retirement obligation, nuclear decommissioning | $ 299 | $ 287 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule of Reconciliation of the Carrying Amount of AROs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Asset Retirement Obligation Disclosure [Abstract] | |||
Beginning balance | $ 599 | $ 597 | |
Liabilities incurred | 6 | 0 | |
Liabilities settled | (1) | 0 | |
Accretion expense | 26 | 25 | |
Revisions in estimated cash flows | [1] | (2) | (23) |
Ending balance | $ 628 | $ 599 | |
[1] The decrease in 2021 is due to the remeasurement of gas pipeline AROs. |
Employee Benefit Plans and Eq_3
Employee Benefit Plans and Equity Compensation Plan (Narrative) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated benefit obligation | $ 578,000,000 | $ 697,000,000 | |
Defined benefit plan, annual rate of increase in the per capita cost of covered health care benefits | 6.25% | ||
Defined benefit plan, ultimate health care cost trend rate | 5% | ||
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 7% | ||
Defined benefit plan, contributions by employer | $ 0 | 0 | $ 0 |
Amounts due to Dominion | 871,000,000 | 458,000,000 | |
Pension and other postretirement benefits | 114,000,000 | 164,000,000 | |
Defined contribution plan, employer matching contributions | $ 13,000,000 | 11,000,000 | $ 14,000,000 |
Global Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45% | ||
Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 53% | ||
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2% | ||
U.S Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 60% | ||
Non-U.S Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 40% | ||
Summer [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, shared costs deferred with joint ownership | $ 21,000,000 | 14,000,000 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | $ 105,000,000 | $ 29,000,000 | |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 7% | 7% | 7% |
Defined benefit plan, net periodic benefit (credit) cost | $ (19,000,000) | $ (13,000,000) | $ 4,000,000 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Recognized actuarial gain (loss) | $ 44,000,000 | $ 8,000,000 | |
Defined benefit plan, ultimate health care cost trend rate | 5% | 5% | 5% |
Defined benefit plan, net periodic benefit (credit) cost | $ 7,000,000 | $ 7,000,000 | $ 11,000,000 |
Other Postretirement Benefits [Member] | Summer [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, shared costs deferred with joint ownership | 9,000,000 | 12,000,000 | |
Dominion Energy Defined Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, contributions by employer | 1,000,000 | 0 | |
Defined benefit plan, net periodic benefit (credit) cost | 1,000,000 | 3,000,000 | |
Pension and other postretirement benefits | $ 4,000,000 | $ 3,000,000 |
Employee Benefit Plans and Eq_4
Employee Benefit Plans and Equity Compensation Plan (Changes in Benefit Obligations) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | $ 702 | $ 742 | |
Service cost | 8 | 9 | $ 12 |
Interest cost | 21 | 20 | 24 |
Actuarial (gain) loss | (105) | (28) | |
Benefits paid | (46) | (41) | |
Ending balance | 580 | 702 | 742 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 171 | 184 | |
Service cost | 1 | 1 | 3 |
Interest cost | 6 | 6 | 8 |
Actuarial (gain) loss | (44) | (8) | |
Benefits paid | (13) | (12) | |
Ending balance | $ 121 | $ 171 | $ 184 |
Employee Benefit Plans and Eq_5
Employee Benefit Plans and Equity Compensation Plan (Significant Assumptions Used to Determine Benefit Obligations) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Annual discount rate used to determine benefit obligation | 5.69% | 3.06% |
Assumed annual rate of future salary increases for projected benefit obligation | 3.93% | 3.71% |
Crediting interest rate for cash balance plans | 4.44% | 1.81% |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Annual discount rate used to determine benefit obligation | 5.70% | 3.11% |
Employee Benefit Plans and Eq_6
Employee Benefit Plans and Equity Compensation Plan (Funded Status) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 561 | $ 768 | $ 747 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 561 | 768 | |
Benefit obligation | 580 | 702 | 742 |
Funded status | (19) | 66 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Benefit obligation | 121 | 171 | $ 184 |
Funded status | $ (121) | $ (171) |
Employee Benefit Plans and Eq_7
Employee Benefit Plans and Equity Compensation Plan (Amounts Recognized on Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 0 | $ 66 |
Current liability | 0 | 0 |
Noncurrent liability | (19) | 0 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liability | (11) | (10) |
Noncurrent liability | $ (110) | $ (161) |
Employee Benefit Plans and Eq_8
Employee Benefit Plans and Equity Compensation Plan (Amounts Recognized in AOCI) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ 3 | $ 1 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ (1) | $ 0 |
Employee Benefit Plans and Eq_9
Employee Benefit Plans and Equity Compensation Plan (Amounts Recognized in Regulatory Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ 164 | $ 70 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ (46) | $ (5) |
Employee Benefit Plans (Change
Employee Benefit Plans (Change in Fair Value of Plan Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | ||
Beginning balance | $ 768 | $ 747 |
Actual return (loss) on plan assets | (161) | 62 |
Benefits paid | (46) | (41) |
Ending balance | $ 561 | $ 768 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Fair Value Measurements By Category) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | $ 157 | $ 400 | |
Common/collective trust funds | [1] | 417 | 387 |
Total recorded at NAV | [1] | 417 | 387 |
Total investments(2) | [1],[2] | 574 | 787 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 157 | 400 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 2 | 1 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Cash and cash equivalents | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 2 | 1 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Corporate Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 137 | 332 | |
Corporate Debt Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Corporate Debt Securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 137 | 332 | |
Corporate Debt Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Government and Other Debt Instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 18 | 67 | |
Government and Other Debt Instruments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 0 | 0 | |
Government and Other Debt Instruments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | 18 | 67 | |
Government and Other Debt Instruments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded at fair value | $ 0 | $ 0 | |
[1] These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy. Excludes net assets related to pending sales of securities of $ 1 million, net accrued income of $ 1 million, and includes net assets related to pending purchases of securities of $ 15 million at December 31, 2022. Excludes net assets related to pending sales of securities of $ 4 million, net accrued income of $ 2 million, and includes net assets related to pending purchases of securities of $ 25 million at December 31, 2021. |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Fair Value Measurements By Category) (Parenthetical) (Detail) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pending sales of securities | $ 1 | $ 4 |
Net accrued income | 1 | 2 |
Pending purchases of securities | $ 15 | $ 25 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments) (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, expected benefit payments, 2023 | $ 45 |
Defined benefit plan, expected benefit payments, 2024 | 47 |
Defined benefit plan, expected benefit payments, 2025 | 47 |
Defined benefit plan, expected benefit payments, 2026 | 46 |
Defined benefit plan, expected benefit payments, 2027 | 45 |
Defined benefit plan, expected benefit payments, 2028-2032 | 243 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, expected benefit payments, 2023 | 11 |
Defined benefit plan, expected benefit payments, 2024 | 11 |
Defined benefit plan, expected benefit payments, 2025 | 11 |
Defined benefit plan, expected benefit payments, 2026 | 11 |
Defined benefit plan, expected benefit payments, 2027 | 11 |
Defined benefit plan, expected benefit payments, 2028-2032 | $ 57 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 9 | $ 12 |
Interest cost | 21 | 20 | 24 |
Expected return on assets | $ (49) | $ (48) | $ (45) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax |
Amortization of actuarial losses | $ 1 | $ 6 | $ 6 |
Settlement loss | 0 | 0 | 7 |
Net periodic benefit cost | (19) | (13) | 4 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 3 |
Interest cost | 6 | 6 | 8 |
Expected return on assets | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax | Other Comprehensive Income Loss Reclassification Adjustment From A O C I Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax |
Amortization of actuarial losses | $ 0 | $ 0 | $ 0 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 7 | $ 7 | $ 11 |
Employee Benefit Plans and E_10
Employee Benefit Plans and Equity Compensation Plan (Schedule of Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | $ 2 | $ (3) | $ 2 |
Total recognized in other comprehensive income | 2 | (3) | 2 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current year actuarial (gain) loss | (1) | 0 | (2) |
Total recognized in other comprehensive income | $ (1) | $ 0 | $ (2) |
Employee Benefit Plans and E_11
Employee Benefit Plans and Equity Compensation Plan (Schedule of Defined Benefit Plan Amounts Recognized in Regulatory Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory assets, pension and other postretirement benefit plans, net unamortized gain (loss) arising during the period, net of tax | $ 95 | $ (39) | $ 1 |
Regulatory assets, amortization of actuarial losses, pension and other postretirement benefit plans, net of tax | (1) | (5) | (6) |
Regulatory assets, settlement loss, pension and other postretirement benefit plans, net of tax | 0 | 0 | (6) |
Regulatory assets, total recognized in regulatory assets, pension and other postretirement benefit plans, net of tax | 94 | (44) | (11) |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory assets, pension and other postretirement benefit plans, net unamortized gain (loss) arising during the period, net of tax | (41) | (6) | (27) |
Regulatory assets, amortization of actuarial losses, pension and other postretirement benefit plans, net of tax | 0 | 0 | (1) |
Regulatory assets, settlement loss, pension and other postretirement benefit plans, net of tax | 0 | 0 | 0 |
Regulatory assets, total recognized in regulatory assets, pension and other postretirement benefit plans, net of tax | $ (41) | $ (6) | $ (28) |
Employee Benefit Plans and E_12
Employee Benefit Plans and Equity Compensation Plan (Schedule of Assumptions Used in Determining Net Periodic Benefit Cost) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7% | ||
Ultimate health care cost trend rate | 5% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.06% | 2.73% | 3.47% |
Expected return on plan assets | 7% | 7% | 7% |
Rate of compensation increase | 3.71% | 4.52% | 3% |
Crediting interest rate for cash balance plans | 1.81% | 1.93% | 2.67% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.11% | 2.80% | 2.80% |
Health care cost trend rate | 6.25% | 6.25% | 6.25% |
Ultimate health care cost trend rate | 5% | 5% | 5% |
Other Postretirement Benefits [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year achieved | 2026 | 2025 | 2025 |
Other Postretirement Benefits [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year achieved | 2027 | 2026 | 2026 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 MGD | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 31, 2022 shares | Dec. 31, 2021 USD ($) | Aug. 31, 2021 shares | Jul. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2020 | Sep. 30, 2020 USD ($) | Aug. 31, 2020 USD ($) | Nov. 30, 2019 gal | Jul. 31, 2019 USD ($) | Aug. 31, 2018 USD ($) | Jun. 30, 2018 USD ($) | Aug. 31, 2017 USD ($) | Apr. 30, 2017 Petition | Aug. 31, 2016 T | Dec. 31, 2022 USD ($) Facility Indicator Product MGD | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2018 USD ($) | Mar. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Measurement of groundwater withdrawals | gal | 3,000,000 | |||||||||||||||||||||||
Number of manufacturing gas plant decommissioned sites that contain residues of byproduct chemicals | Product | 4 | |||||||||||||||||||||||
Estimated environmental remediation activities at manufacturing gas plant sites | $ 21,000,000 | |||||||||||||||||||||||
Environmental remediation costs recognized in regulatory assets | $ 38,000,000 | |||||||||||||||||||||||
Number of facilities inactive subject to final rule | Facility | 3 | |||||||||||||||||||||||
Settlement payable by all | $ 520,000,000 | |||||||||||||||||||||||
Reserves for litigation and regulatory proceedings | $ 211,000,000 | $ 94,000,000 | $ 211,000,000 | |||||||||||||||||||||
Insurance receivables | 85,000,000 | 68,000,000 | 85,000,000 | |||||||||||||||||||||
Contested amount for filed liens in Fairfield country | $ 285,000,000 | |||||||||||||||||||||||
Impairment of assets and other charges | 4,000,000 | 311,000,000 | $ (14,000,000) | |||||||||||||||||||||
Settlement payable by company | $ 99,000,000 | $ 100,000,000 | $ 320,000,000 | |||||||||||||||||||||
Proportionate ownership share in project | 100% | 100% | ||||||||||||||||||||||
Proposed assessment amount from SCDOR audit | $ 410,000,000 | |||||||||||||||||||||||
Litigation settlement expense awarded | $ 165,000,000 | |||||||||||||||||||||||
Real estate transfer to satisfy obligation under settlement | $ 51,000,000 | |||||||||||||||||||||||
Customer refundable fees, alternative plan | 3,181,000,000 | 3,036,000,000 | 3,181,000,000 | |||||||||||||||||||||
Energy payments under power purchase contracts | 73,000,000 | 64,000,000 | 75,000,000 | 73,000,000 | 64,000,000 | |||||||||||||||||||
Nuclear Insurance | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Maximum liability protection per nuclear incident amount | 13,700,000,000 | |||||||||||||||||||||||
Maximum liability each nuclear plant is insured against | 450,000,000 | |||||||||||||||||||||||
Amount that could be assessed for each licensed reactor | 138,000,000 | |||||||||||||||||||||||
Amount that could be assessed for each licensed reactor per year | $ 20,000,000 | |||||||||||||||||||||||
Inflation adjustment period for nuclear insurance | 5 years | |||||||||||||||||||||||
NEIL maximum insurance coverage to nuclear facility for property damage and outage costs | $ 1,060,000,000 | |||||||||||||||||||||||
NEIL maximum insurance coverage to nuclear facility for property damage and outage costs from non-nuclear event | 1,000,000 | |||||||||||||||||||||||
NEIL aggregate maximum loss for any single loss occurrence | 1,060,000,000 | |||||||||||||||||||||||
NEIL maximum retrospective premium assessment | 11,000,000 | |||||||||||||||||||||||
EMANI maximum insurance coverage for Summer station unit 1 for property damage and outage costs from non-nuclear event | $ 1,000,000 | |||||||||||||||||||||||
SCANA | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Payment of civil monetary penalty | 25,000,000 | |||||||||||||||||||||||
SCANA and DESC | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Payment of disgorgement and prejudgment interest | $ 112,500,000 | |||||||||||||||||||||||
N N D Project | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Jointly owned utility plant, proportionate ownership share | 55% | |||||||||||||||||||||||
Summer [Member] | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Proceeds from legal settlements of share of claims incurred in previous year | $ 1,000,000 | 1,000,000 | 4,000,000 | |||||||||||||||||||||
SCDOR | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Value of certain utility and non-utility properties to be conveyed | 3,000,000 | |||||||||||||||||||||||
Non utility property fair value | $ 28,000,000 | |||||||||||||||||||||||
DESC Ratepayer Case | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Property with net value transferred | 8,000,000 | $ 22,000,000 | ||||||||||||||||||||||
Conveyance of property with net recorded value | $ 3,000,000 | |||||||||||||||||||||||
Property with net value transferred, cash contribution | 38,500,000 | |||||||||||||||||||||||
Cash payment | $ 117,000,000 | $ 115,000,000 | ||||||||||||||||||||||
Escrow account | 2,000,000,000 | |||||||||||||||||||||||
Credit in future electric rate relief | 2,000,000,000 | |||||||||||||||||||||||
Common Stock | Dominion Energy | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Common stock issued to satisfy the settlement | $ 322,000,000 | 322,000,000 | ||||||||||||||||||||||
Litigation settlement through cash | $ 43,000,000 | |||||||||||||||||||||||
Litigation settlement through stock issuance | shares | 900,000 | 600,000 | 1,400,000 | |||||||||||||||||||||
Common Stock | Dominion Energy | SCDOR | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Common stock issued to satisfy the settlement | 72,000,000 | 45,000,000 | ||||||||||||||||||||||
Dominion Energy South Carolina, Inc. | SCDOR | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain on expected conveyed value of utility and non-utility properties upon approval | 20,000,000 | |||||||||||||||||||||||
DESC Summer | Nuclear Insurance | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Amount that could be assessed for each licensed reactor | 92,000,000 | |||||||||||||||||||||||
Amount that could be assessed for each licensed reactor per year | 14,000,000 | |||||||||||||||||||||||
Impairment of Assets and Other Charges | Dominion Energy South Carolina, Inc. | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Impairment of assets and other charges | 70,000,000 | 97,000,000 | ||||||||||||||||||||||
Impairment of assets and other charges, after-tax | 53,000,000 | $ 73,000,000 | ||||||||||||||||||||||
Other Income (Expense), Net | SCDOR | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain from transferred non utility property | 19,000,000 | |||||||||||||||||||||||
Gain from transferred non utility property, after tax | $ 14,000,000 | |||||||||||||||||||||||
Unfavorable Regulatory Action | CWA | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Electric generating stations with water withdrawals with heightened entrainment analysis under CWA | MGD | 2,000,000 | |||||||||||||||||||||||
Number of mandatory facility specific factors | Indicator | 5 | |||||||||||||||||||||||
Number of optional facility specific factors | Indicator | 6 | |||||||||||||||||||||||
Personal Injury or Wrongful Death Cases | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Reserves for litigation and regulatory proceedings | $ 85,000,000 | $ 68,000,000 | $ 85,000,000 | |||||||||||||||||||||
Minimum [Member] | DESC Ratepayer Case | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Proceeds from sale of property | 60,000,000 | |||||||||||||||||||||||
Maximum [Member] | DESC Ratepayer Case | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Proceeds from sale of property | $ 85,000,000 | |||||||||||||||||||||||
Virginia Electric and Power Company | Unfavorable Regulatory Action | CWA | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of DESC facilities subject to final regulations | Facility | 5 | |||||||||||||||||||||||
Carbon Regulations | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Significant emission rate per year CO2 equivalent | T | 75,000 | |||||||||||||||||||||||
EPA | Unfavorable Regulatory Action | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Electric generating stations with water withdrawals under CWA | MGD | 125,000,000 | |||||||||||||||||||||||
EPA | Unfavorable Regulatory Action | CWA | Final Rule to Revise Effluent Limitations Guidelines for Steam Electric Power Generating Category | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of separate petitions for reconsideration granted | Petition | 2 | |||||||||||||||||||||||
EPA | Minimum [Member] | Unfavorable Regulatory Action | CWA | Final Rule to Revise Effluent Limitations Guidelines for Steam Electric Power Generating Category | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingencies individual circumstances period | 2021 | |||||||||||||||||||||||
EPA | Maximum [Member] | Unfavorable Regulatory Action | CWA | Final Rule to Revise Effluent Limitations Guidelines for Steam Electric Power Generating Category | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss contingencies individual circumstances period | 2028 | |||||||||||||||||||||||
Environmental Protection Agency And State Regulatory Agencies | Hydroelectric Facilities | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of DESC hydroelectric facilities subject to regulations | Facility | 5 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Long-Term Purchase Agreements) (Detail) $ in Millions | Dec. 31, 2022 USD ($) | [1] |
Commitments And Contingencies Disclosure [Abstract] | ||
Purchased electric capacity, 2023 | $ 87 | |
Purchased electric capacity, 2024 | 86 | |
Purchased electric capacity, 2025 | 87 | |
Purchased electric capacity, 2026 | 91 | |
Purchased electric capacity, 2027 | 92 | |
Purchased electric capacity, Thereafter | 762 | |
Purchased electric capacity, Total | $ 1,205 | |
[1] Includes affiliated amounts with certain solar facilities of $ 219 million. |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Long-Term Purchase Agreements) (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Solar Affiliates [Member] | |
Long Term Purchase Commitment [Line Items] | |
Affiliated amount for long term commitments | $ 219 |
Leases (Schedule of Lease Asset
Leases (Schedule of Lease Assets and Liabilities Recorded in Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease assets | [1] | $ 20 | $ 19 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total deferred debits and other assets | Total deferred debits and other assets | |
Finance lease assets | [2] | $ 9 | $ 13 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Utility plant, net | Utility plant, net | |
Total lease assets | $ 29 | $ 32 | |
Operating lease liabilities - current | [3] | $ 3 | $ 2 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current | Other Liabilities Current | |
Operating lease liabilities - noncurrent | [4] | $ 18 | $ 17 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities Noncurrent | Liabilities Noncurrent | |
Finance lease liabilities - current | [5] | $ 4 | $ 5 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities Current | Liabilities Current | |
Finance lease liabilities - noncurrent | $ 6 | $ 10 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Finance lease liabilities - noncurrent | Finance lease liabilities - noncurrent | |
Total lease liabilities | $ 31 | $ 34 | |
[1] Included in other deferred debits and other assets in the Consolidated Balance Sheets. Included in utility plant, net, in the Consolidated Balance Sheets, net of $ 20 million and $ 20 million of accumulated amortization at December 31, 2022 and December 31, 2021, respectively. Included in other current liabilities in the Consolidated Balance Sheets. Included in other deferred credits and other liabilities in the Consolidated Balance Sheets. Included in securities due within one year in the Consolidated Balance Sheets. |
Leases (Schedule of Lease Ass_2
Leases (Schedule of Lease Assets and Liabilities Recorded in Consolidated Balance Sheets) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Utility Plant, Net | ||
Finance lease assets, accumulated amortization | $ 20 | $ 20 |
Leases (Summary of Total Lease
Leases (Summary of Total Lease Cost) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Finance lease cost, amortization | $ 4 | $ 6 | $ 8 |
Finance lease cost, interest | 1 | 1 | 1 |
Operating lease cost | 4 | 4 | 4 |
Short-term lease cost | 2 | 2 | 2 |
Total lease cost | $ 11 | $ 13 | $ 15 |
Leases (Cash Paid for Amounts I
Leases (Cash Paid for Amounts Included in Measurement of Lease Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows from finance leases | $ 1 | $ 1 | $ 1 |
Operating cash flows from operating leases | 6 | 4 | 4 |
Financing cash flows from finance leases | $ 4 | $ 6 | $ 8 |
Leases (Summary of Weighted Ave
Leases (Summary of Weighted Average Remaining Lease Term And Discount Rate for Operating and Finance Leases) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term - finance leases | 3 years | 4 years |
Weighted average remaining lease term - operating leases | 17 years | 20 years |
Weighted average discount rate - finance leases | 2.91% | 2.91% |
Weighted average discount rate - operating leases | 3.94% | 3.97% |
Leases (Schedule of Maturity An
Leases (Schedule of Maturity Analysis of Operating and Finance Lease Liabilities) (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
Maturity of operating lease liabilities, 2023 | $ 4 |
Maturity of operating lease liabilities, 2024 | 2 |
Maturity of operating lease liabilities, 2025 | 2 |
Maturity of operating lease liabilities, 2026 | 2 |
Maturity of operating lease liabilities, 2027 | 1 |
Maturity of operating lease liabilities, after 2027 | 20 |
Maturity of operating lease liabilities, total undiscounted lease payments | 31 |
Operating lease liabilities, present value adjustment | (10) |
Present value of operating lease liabilities | 21 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
Maturity of finance lease liabilities, 2023 | 4 |
Maturity of finance lease liabilities, 2024 | 3 |
Maturity of finance lease liabilities, 2025 | 2 |
Maturity of finance lease liabilities, 2026 | 1 |
Maturity of finance lease liabilities, 2027 | 0 |
Maturity of finance lease liabilities, after 2027 | 0 |
Maturity of finance lease liabilities, total undiscounted lease payments | 10 |
Finance lease liabilities, present value adjustment | 0 |
Present value of finance lease liabilities | $ 10 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Detail) - Operating Segment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
After- tax net expenses | $ 3 | $ 212 | $ 104 |
Dominion Energy South Carolina, Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
After- tax net expenses | 208 | ||
Litigation settlement expense | 70 | 99 | |
Litigation settlement expense, after tax | 53 | $ 74 | |
South Carolina Electric Base Rate Case | |||
Segment Reporting Information [Line Items] | |||
Settlement charges | 266 | ||
Settlement charges net of tax | $ 199 |
Operating Segments - Schedule o
Operating Segments - Schedule of Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
External revenue | [1] | $ 3,783 | $ 3,146 | $ 2,739 |
Depreciation and amortization | 507 | 486 | 474 | |
Interest charges, net of AFUDC | [1] | 220 | 192 | 229 |
Income tax expense (benefit) | 131 | 9 | 71 | |
Comprehensive income (loss) available (attributable) to common shareholder | 482 | 209 | 297 | |
Capital expenditures | 697 | 758 | 742 | |
Total assets | 15,749 | 14,927 | ||
Dominion Energy South Carolina, Inc. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External revenue | 3,783 | 3,146 | 2,739 | |
Depreciation and amortization | 507 | 486 | 474 | |
Interest charges, net of AFUDC | 220 | 215 | 223 | |
Income tax expense (benefit) | 132 | 125 | 107 | |
Comprehensive income (loss) available (attributable) to common shareholder | 485 | 421 | 410 | |
Capital expenditures | 697 | 758 | 742 | |
Total assets | 15,700 | 14,900 | ||
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
External revenue | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Interest charges, net of AFUDC | 0 | (23) | 6 | |
Income tax expense (benefit) | (1) | (116) | (36) | |
Comprehensive income (loss) available (attributable) to common shareholder | (3) | (212) | (113) | |
Capital expenditures | 0 | 0 | $ 0 | |
Total assets | $ 0 | $ 0 | ||
[1] See Note 16 for amounts attributable to affiliates. |
Utility Plant and Nonutility _3
Utility Plant and Nonutility Property - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Gross nonutility property | $ 21 | $ 44 |
Generation [Member] | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 6,108 | 6,053 |
Transmission [Member] | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 2,145 | 2,037 |
Distribution [Member] | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 5,472 | 5,191 |
Storage [Member] | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 76 | 76 |
General and other | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 630 | 601 |
Intangible | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 257 | 242 |
Construction Work In Progress | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 541 | 481 |
Nuclear Fuel | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | 550 | 603 |
Total Gross Utility Plant | ||
Property Plant And Equipment [Line Items] | ||
Utility plant in service | $ 15,779 | $ 15,284 |
Utility Plant and Nonutility _4
Utility Plant and Nonutility Property - Schedule of Jointly Owned Utility Plants (Details) - Summer Unit 1 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Jointly owned utility plant, proportionate ownership share | 66.70% | 66.70% |
Plant in service, jointly owned utility plant | $ 1,600 | $ 1,600 |
Accumulated depreciation, jointly owned utility plant | 751 | 725 |
Construction work in progress, jointly owned utility plant | $ 87 | $ 76 |
Utility Plant and Nonutility _5
Utility Plant and Nonutility Property (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Utility Plant And Non Utility Property [Line Items] | ||
Amounts due from Santee Cooper for share of direct expenses | $ 141 | $ 152 |
Summer [Member] | ||
Utility Plant And Non Utility Property [Line Items] | ||
Amounts due from Santee Cooper for share of direct expenses | $ 21 | $ 32 |
Affiliated and Related Party _3
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Income Statement) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | ||||
Operating Revenues – Electric from sales to affiliate | $ 4 | $ 4 | $ 4 | |
Operating Revenues – Gas from sales to affiliate | 1 | 1 | 1 | |
Operating Expenses – Other taxes from affiliate | 8 | 7 | 9 | |
DES and DESS | ||||
Related Party Transaction [Line Items] | ||||
Direct and allocated costs | [1] | 212 | 226 | 294 |
Solar Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from affiliate | 14 | 14 | 12 | |
DECG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases of fuel used in electric generation from affiliate | 0 | 0 | 16 | |
Gas purchased for resale | $ 0 | $ 0 | $ 36 | |
[1] Includes capitalized expenditures of $ 48 million, $ 37 million and $ 81 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Affiliated and Related Party _4
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Income Statement) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
DES and DESS | |||
Related Party Transaction [Line Items] | |||
Capitalized expenditures | $ 48 | $ 37 | $ 81 |
Affiliated and Related Party _5
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Balance Sheet) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Derivative assets with affiliates | [1] | $ 51 | $ 28 |
Dominion Energy | |||
Related Party Transaction [Line Items] | |||
Payable to affiliates | 1 | 1 | |
DES | |||
Related Party Transaction [Line Items] | |||
Payable to affiliates | 22 | 30 | |
SCANA Corporation | |||
Related Party Transaction [Line Items] | |||
Payable to affiliates | 7 | 0 | |
Public Service Company Of North Carolina Incorporated | |||
Related Party Transaction [Line Items] | |||
Payable to affiliates | 12 | 0 | |
Receivable from affiliates | 0 | 60 | |
Solar Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Payable to affiliates | 0 | 1 | |
Nuclear Affiliates | |||
Related Party Transaction [Line Items] | |||
Receivable from affiliates | $ 0 | $ 1 | |
[1] Includes amounts recorded in other current assets of $ 8 million and $ 4 million as of December 31, 2022 and 2021, respectively, and amounts recorded in other deferred debits and other assets of $ 43 million and $ 24 million as of December 31, 2022 and 2021, respectively. |
Affiliated and Related Party _6
Affiliated and Related Party Transactions - (Schedule of Affiliated Transactions - Balance Sheet) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Derivative assets with affiliates | [1] | $ 51 | $ 28 |
Other Current Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Derivative assets with affiliates | 8 | 4 | |
Other Deferred Debits And Other Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Derivative assets with affiliates | $ 43 | $ 24 | |
[1] Includes amounts recorded in other current assets of $ 8 million and $ 4 million as of December 31, 2022 and 2021, respectively, and amounts recorded in other deferred debits and other assets of $ 43 million and $ 24 million as of December 31, 2022 and 2021, respectively. |
Other Income (Expense), Net (Co
Other Income (Expense), Net (Components of Other Income (Expense), Net) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Operating revenue from contracts with customers | $ 0 | $ 0 | $ 1 | |
Other income | 10 | 11 | 13 | |
Gains on sales of assets | [1] | 42 | 0 | 0 |
Other expense | 2 | (18) | (38) | |
Allowance for equity funds used during construction | 1 | 5 | 1 | |
Other income (expense), net | $ 55 | $ (2) | $ (23) | |
[1] Includes amounts recognized in connection with the transfer of property, plant and equipment to satisfy litigation. See Note 12 for additional information. |
Other Income (Expense), Net (Na
Other Income (Expense), Net (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement [Abstract] | |
Total cash consideration | $ 20 |
Gain on sale of assets | 20 |
Gain on sale of assets, after tax | $ 15 |