XML 46 R26.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Related-Party Transactions | 3 Months Ended
--- | ---
Mar. 31, 2018
Related Party Transactions [Abstract] |
Related-Party Transactions | Note 18. Related-Party Transactions Virginia Power and Dominion Energy Gas engage in related-party transactions primarily with other Dominion Energy subsidiaries (affiliates). Virginia Power's and Dominion Energy Gas' receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power and Dominion Energy Gas are included in Dominion Energy's consolidated federal income tax return and, where applicable, combined income tax returns for Dominion Energy are filed in various states. Dominion Energy's transactions with equity method investments are described in Note 10. A discussion of significant related-party transactions follows. Virginia Power Transactions with Affiliates Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of commodity swaps, to manage commodity price risks associated with purchases of natural gas. At March 31, 2018, Virginia Power’s derivative assets and liabilities with affiliates were $5 million and $7 million, respectively. At December 31, 2017, Virginia Power’s derivative assets and liabilities with affiliates were $11 million and $5 million, respectively. See Note 9 for more information. Virginia Power participates in certain Dominion Energy benefit plans described in Note 21 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2017. At March 31, 2018 and December 31, 2017, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were $537 million and $505 million, respectively. At March 31, 2018 and December 31, 2017, Virginia Power's amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were $218 million and $199 million, respectively. DES and other affiliates provide accounting, legal, finance and certain administrative and technical services to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage. The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Virginia Power on the basis of direct and allocated methods in accordance with Virginia Power’s services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable. Presented below are Virginia Power's significant transactions with DES and other affiliates:
|  | Three Months Ended March 31, |
|  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |
Commodity purchases from affiliates |  | $ | 398 |  |  | $ | 212 |
Services provided by affiliates(1) |  |  | 120 |  |  |  | 112 |
Services provided to affiliates |  |  | 6 |  |  |  | 5 |
(1) | Includes capitalized expenditures of $37 million and $34 million for the three months ended March 31, 2018 and 2017, respectively.
Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were $11 million and $33 million in short-term demand note borrowings from Dominion Energy as of March 31, 2018 and December 31, 2017, respectively. Virginia Power had no outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of March 31, 2018 and December 31, 2017. Interest charges related to Virginia Power's borrowings from Dominion Energy were immaterial for the three months ended March 31, 2018 and 2017. There were no issuances of Virginia Power's common stock to Dominion Energy for the three months ended March 31, 2018 and 2017. Dominion Energy Gas Transactions with Related Parties Dominion Energy Gas transacts with affiliates for certain quantities of natural gas and other commodities at market prices in the ordinary course of business. Additionally, Dominion Energy Gas provides transportation and storage services to affiliates. Dominion Energy Gas also enters into certain other contracts with affiliates and related parties, including construction services, which are presented separately from contracts involving commodities or services. As of March 31, 2018, Dominion Energy Gas had less than $1 million of derivative assets and liabilities with affiliates. As of December 31, 2017, all of Dominion Energy Gas' commodity derivatives were with affiliates. See Notes 7 and 9 for more information. See Note 10 for information regarding transactions with Atlantic Coast Pipeline. Dominion Energy Gas participates in certain Dominion Energy benefit plans as described in Note 21 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2017. At March 31, 2018 and December 31, 2017, amounts due from Dominion Energy associated with the Dominion Energy Pension Plan included in noncurrent pension and other postretirement benefit assets in the Consolidated Balance Sheets were $744 million and $734 million, respectively. At March 31, 2018 and December 31, 2017, Dominion Energy Gas' amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan included in noncurrent pension and other postretirement benefit assets in the Consolidated Balance Sheets were $9 million and $7 million, respectively. The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Dominion Energy Gas on the basis of direct and allocated methods in accordance with Dominion Energy Gas’ services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable. Presented below are Dominion Energy Gas’ significant transactions with DES and other affiliates and related parties:
|  | Three Months Ended March 31, |
|  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |
Sales of natural gas and transportation and storage services to affiliates |  | $ | 18 |  |  | $ | 18 |
Purchases of natural gas and transportation and storage services from affiliates |  |  | 3 |  |  |  | — |
Services provided by related parties(1) |  |  | 33 |  |  |  | 35 |
Services provided to related parties(2) |  |  | 52 |  |  |  | 39 |
(1) | Includes capitalized expenditures of $10 million and $8 million for the three months ended March 31, 2018 and 2017, respectively.
(2) | Amounts primarily attributable to Atlantic Coast Pipeline, a related-party VIE.
The following table presents affiliated and related party balances reflected in Dominion Energy Gas' Consolidated Balance Sheets:
|  | March 31, 2018 |  |  | December 31, 2017 |
(millions) |  |  |  |  |  |  |  |
Other receivables(1) |  | $ | 17 |  |  | $ | 12 |
Customer receivables from related parties |  |  | — |  |  |  | 1 |
Imbalances receivable from affiliates(2) |  |  | — |  |  |  | 1 |
Affiliated notes receivable(3) |  |  | 19 |  |  |  | 20 |
(1) | Represents amounts due from Atlantic Coast Pipeline, a related-party VIE.
(2) | Amounts are presented in other current assets in Dominion Energy Gas' Consolidated Balance Sheets.
(3) | Amounts are presented in other deferred charges and other assets in Dominion Energy Gas' Consolidated Balance Sheets.
Dominion Energy Gas' borrowings under the intercompany revolving credit agreement with Dominion Energy were $41 million and $18 million as of March 31, 2018 and December 31, 2017, respectively. Interest charges related to Dominion Energy Gas' total borrowings from Dominion Energy were immaterial for the three months ended March 31, 2018 and 2017.

X
- References No definition available. + Details
Name: | us-gaap_RelatedPartyTransactionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
Name: | us-gaap_RelatedPartyTransactionsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration