Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
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 | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | 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 | 803 | |
Local Phone Number | 217-9000 | |
Entity Incorporation, State or Country Code | SC | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Period End Date | Sep. 30, 2022 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Utility plant in service | $ 14,561 | $ 14,200 | |
Accumulated depreciation and amortization | (5,307) | (5,192) | |
Construction work in progress | 519 | 481 | |
Nuclear fuel, net of accumulated amortization | 194 | 216 | |
Utility plant, net | 9,967 | 9,705 | |
Nonutility Property and Investments: | |||
Nonutility property, net of accumulated depreciation | 21 | 42 | |
Assets held in trust, nuclear decommissioning | 216 | 256 | |
Nonutility property and investments, net | 237 | 298 | |
Current Assets: | |||
Cash and cash equivalents | 6 | 30 | |
Customer, net of allowance for uncollectible accounts of $6 and $5 | 391 | 358 | |
Receivables, affiliated and related party | 2 | 16 | |
Receivables, other | 125 | 152 | |
Inventories (at average cost): | |||
Fuel | 70 | 60 | |
Gas stored | 43 | 25 | |
Materials and supplies | 217 | 186 | |
Prepayments | 94 | 70 | |
Regulatory assets | 619 | 361 | |
Other current assets | [1] | 71 | 57 |
Current assets held for sale | 16 | 0 | |
Total current assets | 1,654 | 1,315 | |
Deferred Debits and Other Assets: | |||
Regulatory assets | 3,283 | 3,323 | |
Affiliated receivables | 81 | 66 | |
Other | [1] | 300 | 220 |
Total deferred debits and other assets | 3,664 | 3,609 | |
Total assets | 15,522 | 14,927 | |
CAPITALIZATION AND LIABILITIES | |||
Common Stock - no par value | 4,088 | 4,016 | |
Retained earnings | 410 | 335 | |
Accumulated other comprehensive income (loss) | (1) | (1) | |
Total common equity | 4,497 | 4,350 | |
Noncontrolling interest | 158 | 175 | |
Total equity | 4,655 | 4,525 | |
Long-term debt, net | 3,725 | 3,724 | |
Affiliated long-term debt | 230 | 230 | |
Finance leases | 7 | 10 | |
Total long-term debt | 3,962 | 3,964 | |
Total capitalization | 8,617 | 8,489 | |
Current Liabilities: | |||
Short-term borrowings | 250 | 0 | |
Securities due within one year | 4 | 5 | |
Accounts payable | 225 | 232 | |
Affiliated and related party payables | 753 | 458 | |
Customer deposits and customer prepayments | 73 | 73 | |
Taxes accrued | 185 | 222 | |
Interest accrued | 68 | 73 | |
Regulatory liabilities | 283 | 245 | |
Reserves for litigation and regulatory proceedings | 96 | 211 | |
Other | 117 | 144 | |
Total current liabilities | 2,054 | 1,663 | |
Deferred Credits and Other Liabilities: | |||
Deferred income taxes and investment tax credits | 1,176 | 975 | |
Asset retirement obligations | 623 | 599 | |
Pension and other postretirement benefits | 160 | 164 | |
Regulatory liabilities | 2,813 | 2,936 | |
Other | 79 | 101 | |
Total deferred credits and other liabilities | 4,851 | 4,775 | |
Commitments and Contingencies | |||
Total capitalization and liabilities | $ 15,522 | $ 14,927 | |
[1]See Note 12 for amounts attributable to affiliates. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Utility plant, net | $ 9,967 | $ 9,705 |
Receivables, customer, allowance for uncollectible accounts | 6 | 5 |
Total current assets | 1,654 | 1,315 |
Total deferred debits and other assets | $ 3,664 | $ 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 | $ 703 | $ 729 |
Total current assets | 68 | 77 |
Total deferred debits and other assets | $ 24 | $ 31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | |||||
Operating Revenue | [1] | $ 1,083 | $ 863 | $ 2,841 | $ 2,299 |
Operating Expenses: | |||||
Fuel used in electric generation | 342 | 200 | 770 | 452 | |
Purchased power | [1] | 28 | 24 | 86 | 67 |
Gas purchased for resale | 102 | 57 | 296 | 188 | |
Other operations and maintenance | 117 | 116 | 343 | 332 | |
Other operations and maintenance - affiliated suppliers | 40 | 45 | 122 | 145 | |
Impairment of assets and other charges | 2 | 1 | 6 | 320 | |
Depreciation and amortization | 127 | 122 | 378 | 362 | |
Other taxes | [1] | 72 | 64 | 216 | 191 |
Total operating expenses | 830 | 629 | 2,217 | 2,057 | |
Operating income | 253 | 234 | 624 | 242 | |
Other income, net | 22 | 6 | 46 | 0 | |
Interest charges, net of allowance for borrowed funds used during construction | [1] | 57 | 50 | 162 | 159 |
Income before income tax expense | 218 | 190 | 508 | 83 | |
Income tax expense | 45 | 42 | 102 | 6 | |
Net Income and Other Comprehensive Income | 173 | 148 | 406 | 77 | |
Comprehensive Income Attributable to Noncontrolling Interest | 5 | 4 | 16 | 13 | |
Comprehensive Income Available to Common Shareholder | $ 168 | $ 144 | $ 390 | $ 64 | |
[1]See Note 12 for amounts attributable to affiliates. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Allowance for borrowed funds used during construction | $ 1 | $ 1 | $ 3 | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Operating Activities | |||
Net income | $ 406 | $ 77 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment of assets and other charges | 4 | 320 | |
Deferred income taxes, net | 201 | 42 | |
Depreciation and amortization | 378 | 362 | |
Amortization of nuclear fuel | 29 | 30 | |
Other adjustments | (34) | 8 | |
Changes in certain assets and liabilities: | |||
Receivables | (23) | 35 | |
Receivables - affiliated and related party | 14 | (31) | |
Inventories | (59) | (10) | |
Prepayments | (14) | (33) | |
Regulatory assets | (356) | (86) | |
Regulatory liabilities | (35) | (133) | |
Accounts payable | (5) | 34 | |
Accounts payable - affiliated and related party | 56 | (65) | |
Taxes accrued | (37) | (42) | |
Interest accrued | (5) | 0 | |
Pension and other postretirement benefits | (4) | 5 | |
Other assets and liabilities | (192) | 24 | |
Net cash provided by operating activities | 324 | 537 | |
Investing Activities | |||
Property additions and construction expenditures | (514) | (584) | |
Net proceeds from investments and sales or disposals of assets | (7) | 7 | |
Purchase of investments | (1) | (7) | |
Purchase of investments - affiliated | 0 | (2) | |
Short-term investments - affiliated | 0 | 15 | |
Other | 12 | 1 | |
Net cash used in investing activities | (510) | (570) | |
Financing Activities | |||
Repayment of long-term debt | 0 | (34) | |
Dividend to parent | (348) | (180) | |
Short-term borrowings, net | 250 | 0 | |
Short-term borrowings - affiliated, net | 239 | 268 | |
Other | (3) | (4) | |
Net cash provided by financing activities | 138 | 50 | |
Net increase (decrease) in cash, restricted cash and equivalents | (48) | 17 | |
Cash, restricted cash and equivalents at beginning of period | [1] | 54 | 5 |
Cash, restricted cash and equivalents at end of period | [1] | 6 | 22 |
Significant noncash investing and financing activities: | |||
Accrued construction expenditures | [2] | 106 | 38 |
Operating leases | [2] | $ 6 | $ 0 |
[1] Includes $24 million of restricted cash at December 31, 2021, recorded within other current assets on the Consolidated Balance Sheets. At September 30, 2022, September 30 See Note 10 for noncash investing activities related to the transfer of property associated with the settlement of litigation and Note 4 for noncash financing activities related to capital contributions associated with the settlement of litigation. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Cash Flows [Abstract] | ||||
Restricted cash and equivalents | $ 0 | $ 24 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | AOCI | Noncontrolling Interest |
Beginning balance at Dec. 31, 2020 | $ 4,484 | $ 4,017 | $ 277 | $ (2) | $ 192 |
Beginning balance (in shares) at Dec. 31, 2020 | 40 | ||||
Total comprehensive income available to common shareholder | 77 | 64 | 13 | ||
Capital contribution from parent | 149 | $ 149 | |||
Dividend to parent | (180) | (150) | (30) | ||
Ending balance at Sep. 30, 2021 | 4,530 | $ 4,166 | 191 | (2) | 175 |
Ending balance (in shares) at Sep. 30, 2021 | 40 | ||||
Beginning balance at Jun. 30, 2021 | 4,308 | $ 4,017 | 122 | (2) | 171 |
Beginning balance (in shares) at Jun. 30, 2021 | 40 | ||||
Total comprehensive income available to common shareholder | 148 | 144 | 4 | ||
Capital contribution from parent | 149 | $ 149 | |||
Dividend to parent | (75) | (75) | |||
Ending balance at Sep. 30, 2021 | 4,530 | $ 4,166 | 191 | (2) | 175 |
Ending balance (in shares) at Sep. 30, 2021 | 40 | ||||
Beginning balance at Dec. 31, 2021 | 4,525 | $ 4,016 | 335 | (1) | 175 |
Beginning balance (in shares) at Dec. 31, 2021 | 40 | ||||
Total comprehensive income available to common shareholder | 406 | 390 | 16 | ||
Capital contribution from parent | 72 | $ 72 | |||
Dividend to parent | (348) | (315) | (33) | ||
Ending balance at Sep. 30, 2022 | 4,655 | $ 4,088 | 410 | (1) | 158 |
Ending balance (in shares) at Sep. 30, 2022 | 40 | ||||
Beginning balance at Jun. 30, 2022 | 4,612 | $ 4,088 | 357 | (1) | 168 |
Beginning balance (in shares) at Jun. 30, 2022 | 40 | ||||
Total comprehensive income available to common shareholder | 173 | 168 | 5 | ||
Dividend to parent | (130) | (115) | (15) | ||
Ending balance at Sep. 30, 2022 | $ 4,655 | $ 4,088 | $ 410 | $ (1) | $ 158 |
Ending balance (in shares) at Sep. 30, 2022 | 40 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation and Variable Interest Entities DESC has determined that it has a controlling financial interest in each of GENCO and Fuel Company (which are considered to be VIEs) and, accordingly, DESC's Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. See Note 2 to the Consolidated Financial Statements included in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for a description of GENCO and Fuel Company. 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 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 12 for amounts attributable to affiliates. Significant Accounting Policies There have been no significant changes from Note 2 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2021. |
Rate and Other Regulatory Matte
Rate and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Rate and Other Regulatory Matters | 2. 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. Other Regulatory Matters Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 3 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2021. Electric – C ost 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 April 2022, the South Carolina Commission approved DESC’s request to increase the total fuel cost component of retail electric rates, effective with the first billing cycle of May 2022. The South Carolina Commission also approved DESC’s request 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 previously recorded in regulatory liabilities, as a reduction to its under-collected base fuel cost balance, along with a requested increase to DESC’s variable environmental and avoided capacity cost component. The net effect is an annual increase of $143 million. 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. If approved, the increase of the base fuel cost component is expected to be effective with the first billing cycle of January 2023. The estimated annual increase is $399 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. 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. Natural Gas Rates 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. 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. 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 costs referenced herein, 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. September 30, December 31, (millions) 2022 2021 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) 389 126 Other 50 50 Regulatory assets - current 619 361 NND Project costs (1) 2,122 2,226 AROs (6) 391 311 Deferred employee benefit plan costs (2) 108 106 Deferred losses on interest rate derivatives (7) 277 295 Other unrecovered plant (3) 60 57 DSM programs (4) 40 45 Environmental remediation costs (8) 37 30 Deferred storm damage costs (9) 39 38 Deferred transmission operating costs (10) 76 77 Other (11) 133 138 Regulatory assets - noncurrent 3,283 3,323 Total regulatory assets $ 3,902 $ 3,684 Regulatory liabilities: Monetization of guaranty settlement (12) $ 67 $ 67 Income taxes refundable through future rates (13) 36 42 Reserve for refunds to electric utility customers (14) 102 113 Derivatives (15) 68 18 Other 10 5 Regulatory liabilities - current 283 245 Monetization of guaranty settlement (12) 719 831 Income taxes refundable through future rates (13) 877 903 Asset removal costs (16) 587 570 Deferred gains on interest rate derivatives (7) 69 67 Reserve for refunds to electric utility customers (14) 352 425 Derivatives (15) 199 131 Other 10 9 Regulatory liabilities - noncurrent 2,813 2,936 Total regulatory liabilities $ 3,096 $ 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information. (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 deprecation 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 to 2029. In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advance Metering Infrastructure project, which are being recovered through rates through 2028. 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 and purchased gas components approved by the South Carolina Commission. Reflects a $66 million reduction recorded in the first quarter of 2022 from the application of a portion of the monetization of guarantee settlement previously reflected as regulatory liabilities associated with the approval of DESC’s cost of fuel proceedings. (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 (i) the changes in fair value and payments made or received upon settlement of certain interest rate derivatives designated as cash flow hedges and (ii) the changes in fair value and payments made or received upon settlement of certain other interest rate derivatives not so designated. The amounts recorded with respect to (i) are expected to be amortized to interest expense over the lives of the underlying debt through 2043.The amounts recorded with respect to (ii) are expected to be similarly amortized to interest expense 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 26 ( 9 ) Represents storm restoration costs which DESC expects to recover through customer rates over approximately 10 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case (1 0 ) Includes deferred depreciation and property taxes associated with certain transmission assets which DESC expects to recover from customers through 2063, pursuant to the settlement agreement approved in DESC’s retail electric base rate case (1 1 ) Various other regulatory assets are expected to be recovered through rates over varying periods through 2047. (1 2 ) 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information (1 3 ) 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 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 (1 4 ) 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 (1 5 ) Represents changes in the fair value of derivatives, excluding separately presented deferred gains on interest rate derivatives, that following settlement are expected to be recovered from or refunded to customers (1 6 ) 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 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 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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION DESC has disaggregated operating revenues by customer class as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (millions) Electric Gas Electric Gas Electric Gas Electric Gas Customer class: Residential $ 433 $ 39 $ 366 $ 34 $ 1,065 $ 193 $ 912 $ 170 Commercial 294 41 244 26 740 124 618 91 Industrial 153 54 112 27 396 128 295 67 Other 56 4 46 4 156 16 117 16 Revenues from contracts with customers 936 138 768 91 2,357 461 1,942 344 Other revenues 8 1 4 — 22 1 12 1 Total Operating Revenues $ 944 $ 139 $ 772 $ 91 $ 2,379 $ 462 $ 1,954 $ 345 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 $9 million and $8 million at September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 30, 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. Balances and activity related to contract costs deferred as regulatory assets were as follows: Regulatory Assets (millions) September 30, 2022 December 31, 2021 Beginning balance $ 11 $ 12 Amortization (1 ) (1 ) Ending balance $ 10 $ 11 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | 4. 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 May 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 10. In connection with this transaction, DESC recorded an equity contribution from Dominion Energy in the second quarter of 2022. In July 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 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021. In August 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 10. In connection with these transactions, DESC recorded equity contributions from Dominion Energy in the third quarter of 2021. There have been no material changes to the dividend restrictions affecting DESC described in Note 5 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 . |
Long-Term and Short-Term Debt
Long-Term and Short-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term and Short-Term Debt | 5. LONG-TERM AND 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. Other than the items discussed below, there have been no significant changes from Note 6 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2021. At September 30, 2022, DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, was as follows: (millions) Facility Limit Outstanding Commercial Paper Outstanding Letters of Credit Joint revolving credit facility (1) $ 1,000 $ 250 $ — (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 September 30, 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 intercompany 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. 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 September 30, 2022 and December 31, 2021, DESC had borrowings outstanding under this credit agreement totaling $654 million and $415 million, respectively, which are recorded in affiliated and related party payables in DESC’s Consolidated Balance Sheets. For the three and nine months ended September 30, 2022, DESC recorded interest charges of $ 4 million and $ 9 million, respectively . For the three and nine months ended September 30, 2021, DESC recorded interest charges of $ 2 million and $ 6 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 nine months ended September 30, 2021, DESC recorded both interest income and interest expense from money pool transactions of less than $1 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES DESC’s effective tax rate for the nine months ended September 30, 2022 is 20.1% compared to 7.2% for the nine months ended September 30, 2021. DESC’s effective tax rate for the nine months ended September 30, 2021 is primarily attributable to nominal year-to-date pre-tax income resulting from charges associated with the settlement of the South Carolina electric base rate case. As of September 30, 2022, there have been no material changes in DESC’s unrecognized tax benefits. It is reasonably possible that recent case law and interactions with the taxing authority could result in a decrease in unrecognized tax benefits by up to $26 million during 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 up to $26 million. See Note 7 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion of these unrecognized tax benefits. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. DERIVATIVE FINANCIAL INSTRUMENTS DESC’s accounting policies, objectives, and strategies for using derivative instruments are discussed in Note 2 in the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021. See Note 8 for further information about fair value measurements and associated valuation methods for derivatives. Derivative assets and liabilities are presented gross on the Consolidated Balance Sheets. 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. Cash collateral, as presented in the table below, is used 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, 2021, DESC would have been required to post $8 million of additional collateral to its counterparties. No additional collateral would have been required to be posted to DESC’s counterparties at September 30, 2022. 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 $3 million and $11 million, respectively, of collateral at September 30, 2022 and December 31, 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 September 30, 2022 and December 31, 2021 was $3 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. There were $4 million in gross assets presented in the Consolidated Balance Sheets for September 30, 2022 December 31, 2021 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (millions) Gross Liabilities Presented in the Consolidated Balance Sheet (1) Financial Instruments Cash Collateral Paid Net Amounts Gross Liabilities Presented in the Consolidated Balance Sheet (1) Financial Instruments Cash Collateral Paid Net Amounts Interest rate contracts: Over-the-counter $ 3 $ — $ 3 $ — $ 19 $ — $ 11 $ 8 Total derivatives $ 3 $ — $ 3 $ — $ 19 $ — $ 11 $ 8 (1) There were no derivative liabilities that are not subject to master netting or similar arrangements at September 30, 2022 or December 31, 2021. Volumes The following table presents the volume of derivative activity at September 30, 2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions. Current Noncurrent Electricity (MWh in millions): 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 tables present the fair values of derivatives and where they are presented in the Consolidated Balance Sheets: (millions) Fair Value - Derivatives under Hedge Accounting Fair Value - Derivatives not under Hedge Accounting Total Fair Value At September 30, 2022 ASSETS Current Assets Commodity $ — $ 68 $ 68 Total current derivative assets (1) — 68 68 Noncurrent Assets Commodity — 199 199 Interest rate — 4 4 Total noncurrent derivative assets (2) — 203 203 Total derivative assets $ — $ 271 $ 271 LIABILITIES Current Liabilities Interest rate $ — $ — $ — Total current derivative liabilities (3) — — — Noncurrent Liabilities Interest rate 3 — 3 Total noncurrent derivative liabilities (4) 3 — 3 Total derivative liabilities $ 3 $ — $ 3 At December 31, 2021 ASSETS 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 LIABILITIES 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) ( 3 ) Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets. ( 4 ) 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 (Decrease) in Derivatives Subject to Regulatory Treatment (1) Three Months Ended September 30, 2022 Derivative type and location of gains (losses): Interest rate $ 2 Total $ 2 Three Months Ended September 30, 2021 Derivative type and location of gains (losses): Interest rate $ 1 Total $ 1 Nine Months Ended September 30, 2022 Derivative type and location of gains (losses): Interest rate $ 10 Total $ 10 Nine Months Ended September 30, 2021 Derivative type and location of gains (losses): Interest rate $ 7 Total $ 7 (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 Instrument (millions) Amount of Gain (Loss) Recognized in Income on Derivatives (1) Three Months Ended September 30, 2022 2021 Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 48 $ 3 Interest rate contracts: Interest charges (1 ) — Total $ 47 $ 3 Nine Months Ended September 30, Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 66 $ 3 Interest rate contracts: Interest charges (2 ) (1 ) Total $ 64 $ 2 (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 | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Including Derivatives | 8. FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES DESC’s fair value measurements are made in accordance with the policies discussed in Note 9 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021. See Note 7 in this report for further information about DESC’s derivatives and hedge accounting activities. DESC applies fair value measurements to certain assets and liabilities including commodity and interest rate derivative instruments. The following table presents DESC’s quantitative information about Level 3 fair value measurements at September 30, 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 $ 267 Discounted cash flow Market price (per MWh) (2) 28-160 52 Total assets $ 267 (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) Recurring Fair Value Measurements 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: (millions) Level 1 Level 2 Level 3 Total At September 30, 2022 Assets Commodity $ — $ — $ 267 $ 267 Interest rate — 4 — 4 Total assets $ — $ 4 $ 267 $ 271 Liabilities Interest rate $ — $ 3 $ — $ 3 Total liabilities $ — $ 3 $ — $ 3 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. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (millions) Beginning balance $ 295 $ (13 ) $ 148 $ — Total realized and unrealized gains (losses): Included in earnings: Purchased power 48 3 66 3 Included in regulatory assets/liabilities (28 ) 59 119 46 Settlements (48 ) (3 ) (66 ) (3 ) Ending balance $ 267 $ 46 $ 267 $ 46 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 three and nine months ended September 30, 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: September 30, 2022 December 31, 2021 (millions) Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) Long-term debt (2) $ 3,725 $ 3,554 $ 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. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 9. EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost (credit) recorded by DESC were as follows: (millions) Pension Benefits Other Postretirement Benefits Three Months Ended September 30, 2022 2021 2022 2021 Service cost $ 2 $ 3 $ — $ — Interest cost 5 5 1 1 Expected return on assets (12 ) (12 ) — — Amortization of actuarial losses 1 1 — — Net periodic benefit cost (credit) $ (4 ) $ (3 ) $ 1 $ 1 Nine Months Ended September 30, Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 16 15 4 4 Expected return on assets (37 ) (36 ) — — Amortization of actuarial losses 1 4 — — Net periodic benefit cost (credit) $ (14 ) $ (10 ) $ 5 $ 5 During the three and nine months ended September 30, 2022, DESC made no contributions to its pension trust and does not expect to make any such contributions in 2022. DESC recovers current pension costs through either a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 X 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 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. 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 September 30, 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. In addition, certain legal matters which have been resolved are discussed in Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021. 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 September 30, 2022 and December 31, 2021 include reserves of $96 million and $211 million, respectively, and insurance receivables of $68 million and $85 million, respectively, included within other receivables. These balances at September 30, 2022 and December 31, 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. During both the three and nine months ended September 30, 2022, charges included in DESC’s Consolidated Statements of Comprehensive Income were inconsequential. During the nine months ended September 30, 2021, DESC’s Consolidated Statements of Comprehensive Income includes charges of $70 million ($53 million after-tax), included within impairment of assets and other charges. 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, net in DESC’s Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022. Certain additional utility property representing $3 million of the value to be conveyed is expected to transfer by the end of 2022. The transfer of the remaining real estate remains subject to the approval of FERC. In October 2022, DESC filed for such approval with FERC. If such approval is received, the transfer of such utility and non-utility properties is expected to result in a gain of approximately $20 million upon completion. Nuclear Operations Nuclear Insurance Other than the items discussed below, there have been no significant changes regarding DESC’s nuclear insurance as described in Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021. During the second quarter of 2022, Dominion Energy reduced the levels of nuclear property insurance coverage for the reactor site at Summer from $2.75 billion to the NRC minimum requirement of $1.06 billion. As a result of this reduction in nuclear property insurance coverage, DESC’s maximum retrospective premium assessment for the current annual policy period was reduced to $ 11 million. Additionally, DESC maintains an excess property insurance policy with the European Mutual Association for Nuclear Insurance which provides coverage to Summer for property damage and outage costs resulting from an event of a non-nuclear origin. Dominion Energy reduced the levels of coverage from $ 415 million to $ 1 million. During the third quarter of 2022, the total liability protection per nuclear incident available to all participants in the Secondary Financial Protection Program increased from $13.5 billion to $13.7 billion. This increase does not impact DESC’s responsibility per active unit under the Price-Anderson Amendments Act of 1988. |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | 11. OPERATING SEGMENTS The Corporate and Other segment 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 the nine months ended September 30, 2022, DESC reported an insignificant amount of specific items in the Corporate and Other segment. In the nine months ended September 30, 2021, DESC reported after-tax net expense of $261 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segment. The net expense for specific items attributable to DESC’s operating segment in 2021 primarily related to the impact of the following items: • $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. (millions) External Revenue Comprehensive Income (Loss) Available (Attributable) to Common Shareholder Three Months Ended September 30, 2022 Dominion Energy South Carolina $ 1,083 $ 169 Corporate and Other — (1 ) Consolidated Total $ 1,083 $ 168 Three Months Ended September 30, 2021 Dominion Energy South Carolina $ 863 $ 149 Corporate and Other — (5 ) Consolidated Total $ 863 $ 144 Nine Months Ended September 30, 2022 Dominion Energy South Carolina $ 2,841 $ 392 Corporate and Other — (2 ) Consolidated total $ 2,841 $ 390 Nine Months Ended September 30, 2021 Dominion Energy South Carolina $ 2,299 $ 325 Corporate and Other — (261 ) Consolidated total $ 2,299 $ 64 |
Affiliated and Related Party Tr
Affiliated and Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Affiliated and Related Party Transactions | 12. AFFILIATED AND RELATED PARTY TRANSACTIONS DES, on behalf of itself and its parent company, provides the following services to DESC, which are 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. Costs for these services include amounts capitalized. Amounts expensed are primarily recorded in other operations and maintenance - affiliated suppliers and other income, 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 7 for additional information. Three Months Ended September 30, Nine Months Ended September 30, (millions) 2022 2021 2022 2021 Direct and allocated costs from DES (1) $ 52 $ 53 $ 158 $ 168 Operating Revenues - Electric from sales to affiliate 1 — 3 2 Operating Revenues - Gas from sales to affiliate 1 — 1 — Operating Expenses - Other taxes from affiliate 1 2 6 6 Purchases of electricity from solar affiliates 5 5 12 12 (1) (millions) September 30, 2022 December 31, 2021 Payable to Dominion Energy $ 48 $ 1 Receivable from Dominion Energy 2 — Payable to DES 23 30 Payable to SCANA Corporation 7 — Payable to Public Service Company of North Carolina, Incorporated 9 — Receivable from Public Service Company of North Carolina, Incorporated — 60 Payable to solar affiliates 1 1 Receivable from nuclear affiliates — 1 Derivative assets with affiliates (1) 56 28 (1) Includes amounts recorded in other current assets of $14 million and $4 million as of September 30, 2022 and December 31, 2021, respectively, and amounts recorded in other deferred debits and other assets of $42 million and $24 million as of September 30, 2022 and December 31, 2021, respectively. Borrowings from an affiliate are described in Note 5. |
Other Income, Net
Other Income, Net | 9 Months Ended |
Sep. 30, 2022 | |
Income Statement [Abstract] | |
Other Income, Net | 13. OTHER INCOME, NET Components of other income, net are as follows: Three Months Ended September 30, Nine Months Ended September 30, (millions) 2022 2021 2022 2021 Other income $ 2 $ 3 $ 5 $ 10 Other expense (1 ) 1 — (15 ) Gains on sales of assets (1) 20 — 37 — Allowance for equity funds used during construction 1 2 4 5 Other income, net $ 22 $ 6 $ 46 $ — (1) Includes amounts recognized in connection with the transfer of property to satisfy litigation. See Note 10 for additional information. Non-service cost components of pension and other postretirement benefits are included in other income. In June 2022, DESC completed the sale of certain utility property in South Carolina, as approved by the South Carolina Commission in May 2022, for total cash consideration of $16 million. In connection with the sale, DESC recognized a gain of $16 million ($12 million after-tax) for the nine months ended September 30, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Variable Interest Entities | Basis of Consolidation and Variable Interest Entities DESC has determined that it has a controlling financial interest in each of GENCO and Fuel Company (which are considered to be VIEs) and, accordingly, DESC's Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. See Note 2 to the Consolidated Financial Statements included in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for a description of GENCO and Fuel Company. 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 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 12 for amounts attributable to affiliates. Significant Accounting Policies There have been no significant changes from Note 2 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2021. |
Rate and Other Regulatory Mat_2
Rate and Other Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | September 30, December 31, (millions) 2022 2021 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) 389 126 Other 50 50 Regulatory assets - current 619 361 NND Project costs (1) 2,122 2,226 AROs (6) 391 311 Deferred employee benefit plan costs (2) 108 106 Deferred losses on interest rate derivatives (7) 277 295 Other unrecovered plant (3) 60 57 DSM programs (4) 40 45 Environmental remediation costs (8) 37 30 Deferred storm damage costs (9) 39 38 Deferred transmission operating costs (10) 76 77 Other (11) 133 138 Regulatory assets - noncurrent 3,283 3,323 Total regulatory assets $ 3,902 $ 3,684 Regulatory liabilities: Monetization of guaranty settlement (12) $ 67 $ 67 Income taxes refundable through future rates (13) 36 42 Reserve for refunds to electric utility customers (14) 102 113 Derivatives (15) 68 18 Other 10 5 Regulatory liabilities - current 283 245 Monetization of guaranty settlement (12) 719 831 Income taxes refundable through future rates (13) 877 903 Asset removal costs (16) 587 570 Deferred gains on interest rate derivatives (7) 69 67 Reserve for refunds to electric utility customers (14) 352 425 Derivatives (15) 199 131 Other 10 9 Regulatory liabilities - noncurrent 2,813 2,936 Total regulatory liabilities $ 3,096 $ 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information. (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 deprecation 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 to 2029. In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advance Metering Infrastructure project, which are being recovered through rates through 2028. 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 and purchased gas components approved by the South Carolina Commission. Reflects a $66 million reduction recorded in the first quarter of 2022 from the application of a portion of the monetization of guarantee settlement previously reflected as regulatory liabilities associated with the approval of DESC’s cost of fuel proceedings. (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 (i) the changes in fair value and payments made or received upon settlement of certain interest rate derivatives designated as cash flow hedges and (ii) the changes in fair value and payments made or received upon settlement of certain other interest rate derivatives not so designated. The amounts recorded with respect to (i) are expected to be amortized to interest expense over the lives of the underlying debt through 2043.The amounts recorded with respect to (ii) are expected to be similarly amortized to interest expense 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 26 ( 9 ) Represents storm restoration costs which DESC expects to recover through customer rates over approximately 10 years pursuant to the settlement agreement approved in DESC’s retail electric base rate case (1 0 ) Includes deferred depreciation and property taxes associated with certain transmission assets which DESC expects to recover from customers through 2063, pursuant to the settlement agreement approved in DESC’s retail electric base rate case (1 1 ) Various other regulatory assets are expected to be recovered through rates over varying periods through 2047. (1 2 ) 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information (1 3 ) 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 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 (1 4 ) 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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 (1 5 ) Represents changes in the fair value of derivatives, excluding separately presented deferred gains on interest rate derivatives, that following settlement are expected to be recovered from or refunded to customers (1 6 ) Represents estimated net collections through depreciation rates of amounts to be expended for the removal of assets in the future. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | DESC has disaggregated operating revenues by customer class as follows: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (millions) Electric Gas Electric Gas Electric Gas Electric Gas Customer class: Residential $ 433 $ 39 $ 366 $ 34 $ 1,065 $ 193 $ 912 $ 170 Commercial 294 41 244 26 740 124 618 91 Industrial 153 54 112 27 396 128 295 67 Other 56 4 46 4 156 16 117 16 Revenues from contracts with customers 936 138 768 91 2,357 461 1,942 344 Other revenues 8 1 4 — 22 1 12 1 Total Operating Revenues $ 944 $ 139 $ 772 $ 91 $ 2,379 $ 462 $ 1,954 $ 345 |
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) September 30, 2022 December 31, 2021 Beginning balance $ 11 $ 12 Amortization (1 ) (1 ) Ending balance $ 10 $ 11 |
Long-Term and Short-Term Debt (
Long-Term and Short-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | At September 30, 2022, DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, was as follows: (millions) Facility Limit Outstanding Commercial Paper Outstanding Letters of Credit Joint revolving credit facility (1) $ 1,000 $ 250 $ — (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 September 30, 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 intercompany 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. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Offsetting Liabilities | 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. There were $4 million in gross assets presented in the Consolidated Balance Sheets for September 30, 2022 December 31, 2021 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (millions) Gross Liabilities Presented in the Consolidated Balance Sheet (1) Financial Instruments Cash Collateral Paid Net Amounts Gross Liabilities Presented in the Consolidated Balance Sheet (1) Financial Instruments Cash Collateral Paid Net Amounts Interest rate contracts: Over-the-counter $ 3 $ — $ 3 $ — $ 19 $ — $ 11 $ 8 Total derivatives $ 3 $ — $ 3 $ — $ 19 $ — $ 11 $ 8 (1) There were no derivative liabilities that are not subject to master netting or similar arrangements at September 30, 2022 or December 31, 2021. |
Schedule of Volume of Derivative Activity | The following table presents the volume of derivative activity at September 30, 2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions. Current Noncurrent Electricity (MWh in millions): Fixed price 2 24 Interest rate (1) $ — $ 71 (1) Maturity is determined based on final settlement period. |
Fair Value of Derivatives | The following tables present the fair values of derivatives and where they are presented in the Consolidated Balance Sheets: (millions) Fair Value - Derivatives under Hedge Accounting Fair Value - Derivatives not under Hedge Accounting Total Fair Value At September 30, 2022 ASSETS Current Assets Commodity $ — $ 68 $ 68 Total current derivative assets (1) — 68 68 Noncurrent Assets Commodity — 199 199 Interest rate — 4 4 Total noncurrent derivative assets (2) — 203 203 Total derivative assets $ — $ 271 $ 271 LIABILITIES Current Liabilities Interest rate $ — $ — $ — Total current derivative liabilities (3) — — — Noncurrent Liabilities Interest rate 3 — 3 Total noncurrent derivative liabilities (4) 3 — 3 Total derivative liabilities $ 3 $ — $ 3 At December 31, 2021 ASSETS 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 LIABILITIES 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) ( 3 ) Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets. ( 4 ) |
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 (Decrease) in Derivatives Subject to Regulatory Treatment (1) Three Months Ended September 30, 2022 Derivative type and location of gains (losses): Interest rate $ 2 Total $ 2 Three Months Ended September 30, 2021 Derivative type and location of gains (losses): Interest rate $ 1 Total $ 1 Nine Months Ended September 30, 2022 Derivative type and location of gains (losses): Interest rate $ 10 Total $ 10 Nine Months Ended September 30, 2021 Derivative type and location of gains (losses): Interest rate $ 7 Total $ 7 (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 Instrument (millions) Amount of Gain (Loss) Recognized in Income on Derivatives (1) Three Months Ended September 30, 2022 2021 Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 48 $ 3 Interest rate contracts: Interest charges (1 ) — Total $ 47 $ 3 Nine Months Ended September 30, Derivative type and location of gains (losses): Commodity contracts: Purchased power $ 66 $ 3 Interest rate contracts: Interest charges (2 ) (1 ) Total $ 64 $ 2 (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) | 9 Months Ended |
Sep. 30, 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 September 30, 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 $ 267 Discounted cash flow Market price (per MWh) (2) 28-160 52 Total assets $ 267 (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: (millions) Level 1 Level 2 Level 3 Total At September 30, 2022 Assets Commodity $ — $ — $ 267 $ 267 Interest rate — 4 — 4 Total assets $ — $ 4 $ 267 $ 271 Liabilities Interest rate $ — $ 3 $ — $ 3 Total liabilities $ — $ 3 $ — $ 3 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. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (millions) Beginning balance $ 295 $ (13 ) $ 148 $ — Total realized and unrealized gains (losses): Included in earnings: Purchased power 48 3 66 3 Included in regulatory assets/liabilities (28 ) 59 119 46 Settlements (48 ) (3 ) (66 ) (3 ) Ending balance $ 267 $ 46 $ 267 $ 46 |
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: September 30, 2022 December 31, 2021 (millions) Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) Long-term debt (2) $ 3,725 $ 3,554 $ 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. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | Components of net periodic benefit cost (credit) recorded by DESC were as follows: (millions) Pension Benefits Other Postretirement Benefits Three Months Ended September 30, 2022 2021 2022 2021 Service cost $ 2 $ 3 $ — $ — Interest cost 5 5 1 1 Expected return on assets (12 ) (12 ) — — Amortization of actuarial losses 1 1 — — Net periodic benefit cost (credit) $ (4 ) $ (3 ) $ 1 $ 1 Nine Months Ended September 30, Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 16 15 4 4 Expected return on assets (37 ) (36 ) — — Amortization of actuarial losses 1 4 — — Net periodic benefit cost (credit) $ (14 ) $ (10 ) $ 5 $ 5 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (millions) External Revenue Comprehensive Income (Loss) Available (Attributable) to Common Shareholder Three Months Ended September 30, 2022 Dominion Energy South Carolina $ 1,083 $ 169 Corporate and Other — (1 ) Consolidated Total $ 1,083 $ 168 Three Months Ended September 30, 2021 Dominion Energy South Carolina $ 863 $ 149 Corporate and Other — (5 ) Consolidated Total $ 863 $ 144 Nine Months Ended September 30, 2022 Dominion Energy South Carolina $ 2,841 $ 392 Corporate and Other — (2 ) Consolidated total $ 2,841 $ 390 Nine Months Ended September 30, 2021 Dominion Energy South Carolina $ 2,299 $ 325 Corporate and Other — (261 ) Consolidated total $ 2,299 $ 64 |
Affiliated and Related Party _2
Affiliated and Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Affiliated Transactions | Amounts expensed are primarily recorded in other operations and maintenance - affiliated suppliers and other income, net in the Consolidated Statements of Comprehensive Income. Three Months Ended September 30, Nine Months Ended September 30, (millions) 2022 2021 2022 2021 Direct and allocated costs from DES (1) $ 52 $ 53 $ 158 $ 168 Operating Revenues - Electric from sales to affiliate 1 — 3 2 Operating Revenues - Gas from sales to affiliate 1 — 1 — Operating Expenses - Other taxes from affiliate 1 2 6 6 Purchases of electricity from solar affiliates 5 5 12 12 (1) |
Schedule of Affiliated Transactions | (millions) September 30, 2022 December 31, 2021 Payable to Dominion Energy $ 48 $ 1 Receivable from Dominion Energy 2 — Payable to DES 23 30 Payable to SCANA Corporation 7 — Payable to Public Service Company of North Carolina, Incorporated 9 — Receivable from Public Service Company of North Carolina, Incorporated — 60 Payable to solar affiliates 1 1 Receivable from nuclear affiliates — 1 Derivative assets with affiliates (1) 56 28 (1) Includes amounts recorded in other current assets of $14 million and $4 million as of September 30, 2022 and December 31, 2021, respectively, and amounts recorded in other deferred debits and other assets of $42 million and $24 million as of September 30, 2022 and December 31, 2021, respectively. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Statement [Abstract] | |
Components of Other Income, Net | Components of other income, net are as follows: Three Months Ended September 30, Nine Months Ended September 30, (millions) 2022 2021 2022 2021 Other income $ 2 $ 3 $ 5 $ 10 Other expense (1 ) 1 — (15 ) Gains on sales of assets (1) 20 — 37 — Allowance for equity funds used during construction 1 2 4 5 Other income, net $ 22 $ 6 $ 46 $ — (1) Includes amounts recognized in connection with the transfer of property to satisfy litigation. See Note 10 for additional information. |
Rate and Other Regulatory Mat_3
Rate and Other Regulatory Matters (Narrative) (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Oct. 31, 2022 | Jun. 30, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Nov. 30, 2021 | Sep. 30, 2022 | Aug. 31, 2022 | |
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 | $ 143 | $ 399 | |||||
Annual increase (decrease) in pension cost rider | (12) | ||||||
South Carolina Commission order, revenue requirement under RSA | $ 553 | ||||||
South Carolina Commission order, increase in natural gas rates under RSA | 129 | ||||||
South Carolina Commission order, increase in natural gas rates under RSA effective first billing cycle | $ 16 | ||||||
Percentage of current authorized earned ROE | 8.14% | 9.90% | |||||
Regulatory asset recovery assessment end period | 2047 | ||||||
Reserve For Refunds To Electric Utility Customers [Member] | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
Electric service customers recovery period | 11 years | ||||||
Dominion Energy South Carolina, Inc. [Member] | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
Storm restoration recovery period | 10 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 | 2043 | ||||||
Changes in fair value and payments of interest rate derivatives not designed, amortized to interest, year | 2065 | ||||||
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 | ||||||
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 | ||||||
Demand Side Management Programs [Member] | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
Recovery period of regulatory asset | 3 years | ||||||
Cost of Fuel and Purchased Gas Under-Collections [Member] | Cost of Fuel and Purchased Gas Over-Collections [Member] | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
Decrease in fuel costs | $ 66 | ||||||
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 | 26 years | ||||||
Subsequent Event [Member] | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
South Carolina Commission order, revenue requirement under RSA | $ 549 | ||||||
South Carolina Commission order, increase in natural gas rates under RSA | 125 | ||||||
South Carolina Commission order, increase in natural gas rates under RSA effective first billing cycle | $ 12 | ||||||
Rider D S M | |||||||
Rate And Other Regulatory Matters [Line Items] | |||||||
South Carolina Commission Order, Annual DSM Program Rate Rider Recovery Amount | $ 60 | ||||||
Toshiba [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 | Sep. 30, 2022 | Dec. 31, 2021 | |
Regulatory Assets | |||
Regulatory assets, current | $ 619 | $ 361 | |
Regulatory assets, noncurrent | 3,283 | 3,323 | |
Total regulatory assets | 3,902 | 3,684 | |
NND Project Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [1] | 138 | 138 |
Regulatory assets, noncurrent | [1] | 2,122 | 2,226 |
Deferred Employee Benefit Plan Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [2] | 4 | 8 |
Regulatory assets, noncurrent | [2] | 108 | 106 |
Other Unrecovered Plant [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [3] | 17 | 16 |
Regulatory assets, noncurrent | [4] | 60 | 57 |
Demand Side Management Programs [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [5] | 21 | 23 |
Regulatory assets, noncurrent | [5] | 40 | 45 |
Other Regulatory Assets [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | 50 | 50 | |
Regulatory assets, noncurrent | [6] | 133 | 138 |
Cost of Fuel and Purchased Gas Under-Collections [Member] | |||
Regulatory Assets | |||
Regulatory assets, current | [7] | 389 | 126 |
Asset Retirement Obligation Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [8] | 391 | 311 |
Deferred Losses On Interest Rate Derivatives [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [9] | 277 | 295 |
Environmental Remediation Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [10] | 37 | 30 |
Deferred Storm Damage Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [11] | 39 | 38 |
Deferred Transmission Operating Costs [Member] | |||
Regulatory Assets | |||
Regulatory assets, noncurrent | [12] | $ 76 | $ 77 |
[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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information.[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 deprecation 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 to 2029. In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advance Metering Infrastructure project, which are being recovered through rates through 2028.[4]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 deprecation 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 to 2029. In addition, amounts include unrecovered costs of existing meters and equipment retired from service prior to being fully depreciated as part of the Advance Metering Infrastructure project, which are being recovered through rates through 2028. 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 . Reflects a $66 million reduction recorded in the first quarter of 2022 from the application of a portion of the monetization of guarantee settlement previously reflected as regulatory liabilities associated with the approval of DESC’s cost of fuel proceedings. 26 approved in DESC’s retail electric base rate case in DESC’s retail electric base rate case |
Rate and Other Regulatory Mat_5
Rate and Other Regulatory Matters (Schedule of Regulatory Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Regulatory Liabilities | |||
Regulatory liability, current | $ 283 | $ 245 | |
Regulatory liability, noncurrent | 2,813 | 2,936 | |
Total regulatory liabilities | 3,096 | 3,181 | |
Monetization Of Guaranty Settlement [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [1] | 67 | 67 |
Regulatory liability, noncurrent | [1] | 719 | 831 |
Income Taxes Refundable Through Future Rates [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [2] | 36 | 42 |
Regulatory liability, noncurrent | [2] | 877 | 903 |
Reserve For Refunds To Electric Utility Customers [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [3] | 102 | 113 |
Regulatory liability, noncurrent | [3] | 352 | 425 |
Other Regulatory Liability [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | 10 | 5 | |
Regulatory liability, noncurrent | 10 | 9 | |
Asset Removal Cost [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, noncurrent | [4] | 587 | 570 |
Derivative [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, current | [5] | 68 | 18 |
Regulatory liability, noncurrent | [5] | 199 | 131 |
Deferred Gains On Interest Rate Derivatives [Member] | |||
Regulatory Liabilities | |||
Regulatory liability, noncurrent | [6] | $ 69 | $ 67 |
[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. See Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 Note 12 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2021 Represents changes in the fair value of derivatives, excluding separately presented deferred gains on interest rate derivatives, that following settlement are expected to be recovered from or refunded to customers |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Total Operating Revenues | [1] | $ 1,083 | $ 863 | $ 2,841 | $ 2,299 |
Electric Operations | |||||
Operating revenue from contracts with customers | 936 | 768 | 2,357 | 1,942 | |
Other revenues | 8 | 4 | 22 | 12 | |
Total Operating Revenues | 944 | 772 | 2,379 | 1,954 | |
Gas Distribution | |||||
Operating revenue from contracts with customers | 138 | 91 | 461 | 344 | |
Other revenues | 1 | 0 | 1 | 1 | |
Total Operating Revenues | 139 | 91 | 462 | 345 | |
Residential | Electric Operations | |||||
Operating revenue from contracts with customers | 433 | 366 | 1,065 | 912 | |
Residential | Gas Distribution | |||||
Operating revenue from contracts with customers | 39 | 34 | 193 | 170 | |
Commercial | Electric Operations | |||||
Operating revenue from contracts with customers | 294 | 244 | 740 | 618 | |
Commercial | Gas Distribution | |||||
Operating revenue from contracts with customers | 41 | 26 | 124 | 91 | |
Industrial | Electric Operations | |||||
Operating revenue from contracts with customers | 153 | 112 | 396 | 295 | |
Industrial | Gas Distribution | |||||
Operating revenue from contracts with customers | 54 | 27 | 128 | 67 | |
Other | Electric Operations | |||||
Operating revenue from contracts with customers | 56 | 46 | 156 | 117 | |
Other | Gas Distribution | |||||
Operating revenue from contracts with customers | $ 4 | $ 4 | $ 16 | $ 16 | |
[1]See Note 12 for amounts attributable to affiliates. |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |||
Contract liability balances | $ 9 | $ 8 | |
Revenue recognized from contract liability balances | $ 6 | $ 4 |
Revenue Recognition (Balance an
Revenue Recognition (Balance and Activity Related to Contract Costs Deferred as Regulatory Assets) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Revenues [Abstract] | ||
Beginning balance | $ 11 | $ 12 |
Amortization | (1) | (1) |
Ending balance | $ 10 | $ 11 |
Equity (Narrative) (Detail)
Equity (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||||
May 05, 2022 | Aug. 31, 2021 | Jul. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
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 | SCDOR [Member] | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock issued to satisfy the settlement | $ 72 | $ 45 | |||
Dominion Energy | FILOT [Member] | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock issued to satisfy the settlement | $ 104 |
Long-Term and Short-Term Debt_2
Long-Term and Short-Term Debt (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | ||||||
Interest charges | [1] | $ 57,000,000 | $ 50,000,000 | $ 162,000,000 | $ 159,000,000 | |
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest income | 1,000,000 | |||||
Interest expense | 1,000,000 | |||||
Dominion Energy | ||||||
Debt Instrument [Line Items] | ||||||
Short-term borrowings outstanding, maximum | 900,000,000 | |||||
Short-term borrowings outstanding | 654,000,000 | 654,000,000 | $ 415,000,000 | |||
Interest charges | 4,000,000 | $ 2,000,000 | 9,000,000 | $ 6,000,000 | ||
Joint Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Facility limit | [2] | 1,000,000,000 | 1,000,000,000 | |||
Joint Revolving Credit Facility | Dominion Energy | ||||||
Debt Instrument [Line Items] | ||||||
Facility limit | 6,000,000,000 | 6,000,000,000 | ||||
Industrial Revenue Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 68,000,000 | $ 68,000,000 | ||||
[1]See Note 12 for amounts attributable to affiliates.[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 September 30, 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 intercompany 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 $1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Long-Term and Short-Term Debt_3
Long-Term and Short-Term Debt (Schedule of Line of Credit Facilities) (Detail) - Joint Revolving Credit Facility | Sep. 30, 2022 USD ($) | [1] |
Debt Instrument [Line Items] | ||
Facility limit | $ 1,000,000,000 | |
Outstanding Commercial Paper | 250,000,000 | |
Outstanding Letters of Credit | $ 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 September 30, 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 intercompany 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 $1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Long-Term and Short-Term Debt_4
Long-Term and Short-Term Debt (Schedule of Line of Credit Facilities) (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2022 USD ($) | ||
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 | $ 1,000,000,000 | [1] |
Line of Credit Facility | ||
Debt Instrument [Line Items] | ||
Facility limit | 500,000,000 | |
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 September 30, 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 intercompany 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 $1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Line Items] | ||
Effective tax rate, percent | 20.10% | 7.20% |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 26 | |
Potential increase in earnings in next twelve months if tax benefits recognized | $ 26 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Additional collateral to its counterparties | $ 0 | $ 8,000,000 |
Collateral already posted | 3,000,000 | 11,000,000 |
Fair value of derivative instruments with credit-related contingent provisions that are in liability position and not fully collateralized with cash | 3,000,000 | 19,000,000 |
Interest Rate Contract [Member] | Over The Counter [Member] | ||
Derivative [Line Items] | ||
Derivative asset subject to master netting or similar arrangements | $ 4,000,000 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Offsetting Liabilities) (Detail) - Liability - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Gross liabilities presented in the consolidated balance sheet | [1] | $ 3 | $ 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 | 3 | 11 | |
Gross amounts not offset in the consolidated balance sheet, net amounts | 0 | 8 | |
Interest Rate Contract [Member] | Over The Counter [Member] | |||
Derivative [Line Items] | |||
Gross liabilities presented in the consolidated balance sheet | [1] | 3 | 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 | 3 | 11 | |
Gross amounts not offset in the consolidated balance sheet, net amounts | $ 0 | $ 8 | |
[1]There were no derivative liabilities that are not subject to master netting or similar arrangements at September 30, 2022 or December 31, 2021. |
Derivative Financial Instrume_5
Derivative Financial Instruments (Offsetting Liabilities) (Parenthetical) (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Derivative liabilities not subject to master netting or similar arrangements | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Volume of Derivative Activity) (Detail) MWh in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 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_7
Derivative Financial Instruments (Fair Value of Derivatives) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Derivative Assets | $ 271 | $ 148 | |
Derivative Liability | 3 | 19 | |
Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [1] | 68 | 18 |
Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [2] | 0 | 2 |
Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [3] | 203 | 130 |
Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [4] | 3 | 17 |
Interest Rate Contract [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 2 | |
Interest Rate Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 4 | ||
Interest Rate Contract [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 3 | 17 | |
Commodity Contract [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 68 | 18 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 199 | 130 | |
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liability | 3 | 12 | |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [1] | 0 | 0 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [2] | 0 | 1 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [3] | 0 | 0 |
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [4] | 3 | 11 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 1 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 0 | ||
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 3 | 11 | |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 0 | 0 | |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 271 | 148 | |
Derivative Liability | 0 | 7 | |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [1] | 68 | 18 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [2] | 0 | 1 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | [3] | 203 | 130 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | [4] | 0 | 6 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 1 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 4 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 6 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | 68 | 18 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets | $ 199 | $ 130 | |
[1]Current derivative assets are presented in other current assets in DESC’s Consolidated Balance Sheets.[2]Current derivative liabilities are presented in other current liabilities in DESC’s Consolidated Balance Sheets.[3]Noncurrent derivative assets are presented in other deferred debits and other assets 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. |
Derivative Financial Instrume_8
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships) (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Derivative [Line Items] | |||||
Increase (Decrease) in Derivatives Subject to Regulatory Treatment | [1] | $ 2 | $ 1 | $ 10 | $ 7 |
Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Increase (Decrease) in Derivatives Subject to Regulatory Treatment | [1] | $ 2 | $ 1 | $ 10 | $ 7 |
[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_9
Derivative Financial Instruments (Derivatives Not Designated as Hedging Instruments) (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Derivative [Line Items] | |||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ 47 | $ 3 | $ 64 | $ 2 |
Commodity Contract [Member] | Purchased Power [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | 48 | 3 | 66 | 3 |
Interest Rate Contract [Member] | Interest Charges [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ (1) | $ 0 | $ (2) | $ (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_3
Fair Value Measurements, Including Derivatives (Schedule of Quantitative Information About Level 3 Fair Value Measurements) (Details) $ in Millions | Sep. 30, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | $ 267 | |
Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 267 | |
Minimum [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 28 | |
Maximum [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | 160 | |
Weighted Average [Member] | Electricity [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets, fair value | $ 52 | [1] |
[1]Averages weighted by volume |
Fair Value Measurements, Incl_4
Fair Value Measurements, Including Derivatives (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair value, recurring - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets | $ 271 | $ 148 |
Liabilities | ||
Total liabilities | 3 | 19 |
Commodity Contract [Member] | ||
Assets | ||
Total assets | 267 | 148 |
Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 4 | |
Liabilities | ||
Total liabilities | 3 | 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 | 4 | 0 |
Liabilities | ||
Total liabilities | 3 | 19 |
Level 2 | Commodity Contract [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Level 2 | Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 4 | |
Liabilities | ||
Total liabilities | 3 | 19 |
Level 3 | ||
Assets | ||
Total assets | 267 | 148 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Commodity Contract [Member] | ||
Assets | ||
Total assets | 267 | 148 |
Level 3 | Interest Rate Contract [Member] | ||
Assets | ||
Total assets | 0 | |
Liabilities | ||
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements, Incl_5
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Regulatory Assets | ||||
Beginning balance | $ 295 | $ (13) | $ 148 | $ 0 |
Included in earnings: | ||||
Purchased power | 48 | 3 | 66 | 3 |
Settlements | (48) | (3) | (66) | (3) |
Ending balance | 267 | 46 | 267 | 46 |
Other Regulatory Assets Liabilities | ||||
Included in earnings: | ||||
Included in regulatory assets/liabilities | $ (28) | $ 59 | $ 119 | $ 46 |
Fair Value Measurements, Incl_6
Fair Value Measurements, Including Derivatives (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Unrealized gains and losses | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements, Incl_7
Fair Value Measurements, Including Derivatives (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Detail) - USD ($) $ in Millions | Sep. 30, 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] | 3,554 | 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.[2]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. |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost (Credit) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 3 | $ 6 | $ 7 |
Interest cost | 5 | 5 | 16 | 15 |
Expected return on assets | (12) | (12) | (37) | (36) |
Amortization of actuarial losses | 1 | 1 | 1 | 4 |
Net periodic benefit cost (credit) | (4) | (3) | (14) | (10) |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 1 | 1 | 4 | 4 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of actuarial losses | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | $ 1 | $ 1 | $ 5 | $ 5 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | ||
Defined benefit plan, expected future employer contributions, next fiscal year, description | no | no |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Detail) shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
Oct. 31, 2014 MGD Facility | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | May 31, 2022 shares | Aug. 31, 2021 shares | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2020 | Jun. 30, 2018 USD ($) | Aug. 31, 2017 USD ($) | Apr. 30, 2017 Petition | Aug. 31, 2016 T | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) Facility Indicator Product | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||||||||
Electric generating stations with water withdrawals under CWA | MGD | 125 | |||||||||||||||||
Electric generating stations with water withdrawals with heightened entrainment analysis under CWA | MGD | 2 | |||||||||||||||||
Number of DESC facilities subject to final regulations | Facility | 5 | |||||||||||||||||
Number of DESC hydroelectric facilities subject to regulations | Facility | 5 | |||||||||||||||||
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 | $ 38,000,000 | $ 38,000,000 | |||||||||||||||
Number of facilities inactive subject to final rule | Facility | 3 | |||||||||||||||||
Reserves for litigation and regulatory proceedings | 96,000,000 | 96,000,000 | $ 96,000,000 | $ 211,000,000 | ||||||||||||||
Insurance receivables | 68,000,000 | 68,000,000 | 68,000,000 | 85,000,000 | ||||||||||||||
Impairment of assets and other charges | 4,000,000 | $ 320,000,000 | ||||||||||||||||
Amount claimed by plaintiffs in legal matter | $ 100,000,000 | |||||||||||||||||
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 | |||||||||||||||||
Maximum liability protection per nuclear incident amount | 13,700,000,000 | $ 13,500,000,000 | ||||||||||||||||
Summer | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Nuclear property insurance coverage amount | 1,060,000,000 | $ 2,750,000,000 | ||||||||||||||||
NEIL maximum retrospective premium assessment | 11,000,000 | |||||||||||||||||
SCDOR [Member] | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Value of certain utility and non-utility properties to be conveyed | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||||||||
Expected gain on transfer of remaining utility and non-utility properties | 20,000,000 | |||||||||||||||||
Non utility property fair value | 28,000,000 | |||||||||||||||||
Common Stock | Dominion Energy | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Litigation settlement through cash | $ 43,000,000 | |||||||||||||||||
Shares issued on settlement | shares | 0.9 | 0.6 | ||||||||||||||||
Impairment of Assets and Other Charges | Dominion Energy South Carolina, Inc. | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Impairment of assets and other charges | 70,000,000 | |||||||||||||||||
Impairment of assets and other charges, after-tax | $ 53,000,000 | |||||||||||||||||
Other Income | SCDOR [Member] | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Gain from transferred non utility property | 19,000,000 | 19,000,000 | ||||||||||||||||
Gain from transferred non utility property, after tax | 14,000,000 | $ 14,000,000 | ||||||||||||||||
Unfavorable Regulatory Action | CWA | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
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 | 68,000,000 | 68,000,000 | $ 68,000,000 | 85,000,000 | ||||||||||||||
Insurance receivables | $ 68,000,000 | $ 68,000,000 | $ 68,000,000 | $ 85,000,000 | ||||||||||||||
Carbon Regulations [Member] | Minimum [Member] | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Significant emission rate per year CO2 equivalent | T | 75,000 | |||||||||||||||||
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 | |||||||||||||||||
European Mutual Association | Summer | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Nuclear property insurance coverage amount | $ 1,000,000 | $ 415,000,000 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Corporate and Other | |
Segment Reporting Information [Line Items] | |
After- tax net expenses | $ 261 |
South Carolina Electric Base Rate Case | |
Segment Reporting Information [Line Items] | |
Settlement charges | 266 |
Settlement charges net of tax | 199 |
Dominion Energy South Carolina, Inc. [Member] | |
Segment Reporting Information [Line Items] | |
Litigation charges | 70 |
Litigation charges, after tax | $ 53 |
Operating Segments - Schedule o
Operating Segments - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
External revenue | $ 1,083 | $ 863 | $ 2,841 | $ 2,299 |
Comprehensive income (loss) available (attributable) to common shareholder | 168 | 144 | 390 | 64 |
Dominion Energy South Carolina, Inc. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External revenue | 1,083 | 863 | 2,841 | 2,299 |
Comprehensive income (loss) available (attributable) to common shareholder | 169 | 149 | 392 | 325 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
External revenue | 0 | 0 | 0 | 0 |
Comprehensive income (loss) available (attributable) to common shareholder | $ (1) | $ (5) | $ (2) | $ (261) |
Affiliated and Related Party _3
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Income Statement) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Related Party Transaction [Line Items] | |||||
Operating Revenues - Electric from sales to affiliate | $ 1 | $ 0 | $ 3 | $ 2 | |
Operating Revenues - Gas from sales to affiliate | 1 | 0 | 1 | 0 | |
Operating Expenses - Other taxes from affiliate | 1 | 2 | 6 | 6 | |
D E S And D E S S | |||||
Related Party Transaction [Line Items] | |||||
Purchases from affiliate | [1] | 52 | 53 | 158 | 168 |
Solar Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Purchases from affiliate | $ 5 | $ 5 | $ 12 | $ 12 | |
[1]Includes capitalized expenditures of $12 million and $8 million for the three months ended September 30, 2022 and 2021, respectively, and $36 million and $23 million for the nine months ended September 30, 2022 and 2021, respectively. |
Affiliated and Related Party _4
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Income Statement) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
D E S And D E S S | ||||
Related Party Transaction [Line Items] | ||||
Capitalized expenditures | $ 12 | $ 8 | $ 36 | $ 23 |
Affiliated and Related Party _5
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Balance Sheet) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Derivative assets with affiliates | $ 56 | $ 28 |
Solar Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Payable to affiliates | 1 | 1 |
Nuclear Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Receivable from affiliates | 1 | |
D E S And D E S S | ||
Related Party Transaction [Line Items] | ||
Payable to affiliates | 23 | 30 |
Dominion Energy | ||
Related Party Transaction [Line Items] | ||
Payable to affiliates | 48 | 1 |
Receivable from affiliates | 2 | |
Public Service Company Of North Carolina Incorporated | ||
Related Party Transaction [Line Items] | ||
Payable to affiliates | 9 | |
Receivable from affiliates | $ 60 | |
SCANA Corporation | ||
Related Party Transaction [Line Items] | ||
Payable to affiliates | $ 7 |
Affiliated and Related Party _6
Affiliated and Related Party Transactions (Schedule of Affiliated Transactions - Balance Sheet) (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Derivative assets with affiliates | $ 56 | $ 28 |
Other Current Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Derivative assets with affiliates | 14 | 4 |
Other Deferred Debits and Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Derivative assets with affiliates | $ 42 | $ 24 |
Other Income, Net (Components o
Other Income, Net (Components of Other Income, Net) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | |||||
Other income | $ 2 | $ 3 | $ 5 | $ 10 | |
Other expense | (1) | 1 | 0 | (15) | |
Gains on sales of assets | [1] | 20 | 0 | 37 | 0 |
Allowance for equity funds used during construction | 1 | 2 | 4 | 5 | |
Other income, net | $ 22 | $ 6 | $ 46 | $ 0 | |
[1]Includes amounts recognized in connection with the transfer of property to satisfy litigation. See Note 10 for additional information. |
Other Income, Net (Narrative) (
Other Income, Net (Narrative) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Total cash consideration | $ 16 | |
Gain on sale of assets | $ 16 | |
Gain on sale of assets, after tax | $ 12 |