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Investments | 6 Months Ended
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Jun. 30, 2018
Investments Debt And Equity Securities [Abstract] |
Investments | Note 10. Investments Dominion Energy Equity and Debt Securities Rabbi Trust Securities Equity and debt securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $114 million and $112 million at June 30, 2018 and December 31, 2017, respectively. Decommissioning Trust Securities Dominion Energy holds equity and debt securities, cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Dominion Energy’s decommissioning trust funds are summarized below:
|  | Amortized Cost |  |  | Total Unrealized Gains |  |  | Total Unrealized Losses |  |  |  | Fair Value |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 1,695 |  |  | $ | 1,896 |  |  | $ | (14 | ) |  |  | $ | 3,577 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 447 |  |  |  | 6 |  |  |  | (8 | ) |  |  |  | 445 |
Government securities |  |  | 1,058 |  |  |  | 16 |  |  |  | (14 | ) |  |  |  | 1,060 |
Common/collective trust funds |  |  | 72 |  |  |  | — |  |  |  | — |  |  |  |  | 72 |
Cash equivalents and other(3) |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  |  | 5 |
Total |  | $ | 3,277 |  |  | $ | 1,918 |  |  | $ | (36 | ) | (4) |  | $ | 5,159 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 1,569 |  |  | $ | 1,857 |  |  | $ | — |  |  |  | $ | 3,426 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 430 |  |  |  | 15 |  |  |  | (1 | ) |  |  |  | 444 |
Government securities |  |  | 1,039 |  |  |  | 27 |  |  |  | (5 | ) |  |  |  | 1,061 |
Common/collective trust funds |  |  | 60 |  |  |  | — |  |  |  | — |  |  |  |  | 60 |
Cost method investments |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  |  | 68 |
Cash equivalents and other(3) |  |  | 34 |  |  |  | — |  |  |  | — |  |  |  |  | 34 |
Total |  | $ | 3,200 |  |  | $ | 1,899 |  |  | $ | (6 | ) | (4) |  | $ | 5,093 |
| (1) | Effective January 2018, unrealized gains and losses on equity securities, including those previously classified as cost method investments, are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
| (2) | Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
| (3) | Includes pending purchases of securities of $3 million at June 30, 2018 and pending sales of securities of $5 million at December 31, 2017.
| (4) | The fair value of securities in an unrealized loss position was $900 million and $565 million at June 30, 2018 and December 31, 2017, respectively.
The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy’s nuclear decommissioning trusts is summarized below:
(millions) |  | Three Months Ended June 30, 2018 |  |  | Six Months Ended June 30, 2018 |
Net gains recognized during the period |  | $ | 89 |  |  | $ | 24 |
Less: Net gains recognized during the period on securities sold during the period |  |  | (16 | ) |  |  | (35 | )
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2018(1) |  | $ | 73 |  |  | $ | (11 | )
(1) | Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
The fair value of Dominion Energy’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2018 by contractual maturity is as follows:
|  | Amount |
(millions) |  |  |  |
Due in one year or less |  | $ | 321 |
Due after one year through five years |  |  | 327 |
Due after five years through ten years |  |  | 353 |
Due after ten years |  |  | 576 |
Total |  | $ | 1,577 |
Presented below is selected information regarding Dominion Energy’s equity and debt securities with readily determinable fair values held in nuclear decommissioning trust funds.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 425 |  |  | $ | 363 |  |  | $ | 844 |  |  | $ | 1,119 |
Realized gains(1) |  |  | 36 |  |  |  | 23 |  |  |  | 72 |  |  |  | 117 |
Realized losses(1) |  |  | 23 |  |  |  | 16 |  |  |  | 42 |  |  |  | 36 |
(1) | Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.
Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds recognized in earnings for Dominion Energy were not material for the three and six months ended June 30, 2018 and 2017. Virginia Power Virginia Power holds equity and debt securities, cash equivalents and cost method investments in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Virginia Power’s decommissioning trust funds are summarized below:
|  | Amortized Cost |  |  | Total Unrealized Gains |  |  | Total Unrealized Losses |  |  |  | Fair Value |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 837 |  |  | $ | 861 |  |  | $ | (7 | ) |  |  | $ | 1,691 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 228 |  |  |  | 3 |  |  |  | (4 | ) |  |  |  | 227 |
Government securities |  |  | 490 |  |  |  | 7 |  |  |  | (5 | ) |  |  |  | 492 |
Common/collective trust funds |  |  | 32 |  |  |  | — |  |  |  | — |  |  |  |  | 32 |
Cash equivalents and other(3) |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  |  | 7 |
Total |  | $ | 1,594 |  |  | $ | 871 |  |  | $ | (16 | ) | (4) |  | $ | 2,449 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 734 |  |  | $ | 831 |  |  | $ | — |  |  |  | $ | 1,565 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 216 |  |  |  | 8 |  |  |  | — |  |  |  |  | 224 |
Government securities |  |  | 482 |  |  |  | 13 |  |  |  | (2 | ) |  |  |  | 493 |
Common/collective trust funds |  |  | 27 |  |  |  | — |  |  |  | — |  |  |  |  | 27 |
Cost method investments |  |  | 68 |  |  |  | — |  |  |  | — |  |  |  |  | 68 |
Cash equivalents and other(3) |  |  | 22 |  |  |  | — |  |  |  | — |  |  |  |  | 22 |
Total |  | $ | 1,549 |  |  | $ | 852 |  |  | $ | (2 | ) | (4) |  | $ | 2,399 |
| (1) | Effective January 2018, unrealized gains and losses on equity securities, including those previously classified as cost method investments, are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
| (2) | Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
| (3) | Includes pending sales of securities of $5 million and $6 million at June 30, 2018 and December 31, 2017, respectively.
| (4) | The fair value of securities in an unrealized loss position was $414 million and $234 million at June 30, 2018 and December 31, 2017, respectively.
The portion of unrealized gains and losses that relates to equity securities held within Virginia Power’s nuclear decommissioning trusts is summarized below:
|  | Three Months Ended June 30, 2018 |  |  | Six Months Ended June 30, 2018 |
(millions) |  |  |  |  |  |  |  |
Net gains recognized during the period |  | $ | 44 |  |  | $ | 12 |
Less: Net gains recognized during the period on securities sold during the period |  |  | (8 | ) |  |  | (23 | )
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2018(1) |  | $ | 36 |  |  | $ | (11 | )
| (1) | Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
The fair value of Virginia Power’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2018 by contractual maturity is as follows:
|  | Amount |
(millions) |  |  |  |
Due in one year or less |  | $ | 49 |
Due after one year through five years |  |  | 158 |
Due after five years through ten years |  |  | 216 |
Due after ten years |  |  | 328 |
Total |  | $ | 751 |
Presented below is selected information regarding Virginia Power’s equity and debt securities with readily determinable fair values held in nuclear decommissioning trust funds.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 196 |  |  | $ | 168 |  |  | $ | 414 |  |  | $ | 498 |
Realized gains(1) |  |  | 15 |  |  |  | 10 |  |  |  | 33 |  |  |  | 55 |
Realized losses(1) |  |  | 7 |  |  |  | 8 |  |  |  | 12 |  |  |  | 18 |
(1) | Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.
Other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds recognized in earnings for Virginia Power were not material for the three and six months ended June 30, 2018 and 2017. Equity Method Investments Dominion Energy Atlantic Coast Pipeline Dominion Energy recorded contributions of $81 million and $85 million during the three months ended June 30, 2018 and 2017, respectively, and $159 million and $202 million during the six months ended June 30, 2018 and 2017, respectively, to Atlantic Coast Pipeline. At June 30, 2018, Dominion Energy had $33 million of contributions payable to Atlantic Coast Pipeline included within other current liabilities in the Consolidated Balance Sheets. DETI provides services to Atlantic Coast Pipeline which totaled $60 million and $30 million for the three months ended June 30, 2018 and 2017, respectively, and $106 million and $61 million for the six months ended June 30, 2018 and 2017, respectively, included in operating revenue in Dominion Energy and Dominion Energy Gas’ Consolidated Statements of Income. Amounts receivable related to these services were $19 million and $12 million at June 30, 2018 and December 31, 2017, respectively, composed entirely of accrued unbilled revenue, included in other receivables in Dominion Energy and Dominion Energy Gas’ Consolidated Balance Sheets. In October 2017, Dominion Energy entered into a guarantee agreement to support a portion of Atlantic Coast Pipeline’s obligation under its credit facility. See Note 16 for more information. NedPower Dominion Energy has a liability of $1 million and $17 million recorded to other deferred credits and other liabilities on the Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, respectively, relating to its commitment to provide further financial support for NedPower. Other In July 2018, Dominion Energy entered into an agreement to sell its 25% limited partnership interest in Catalyst Old River Hydroelectric Limited Partnership, which is accounted for as an equity method investment with zero carrying value at June 30, 2018. The transaction is expected to close in the third quarter of 2018 with proceeds of approximately $90 million, subject to customary closing adjustments. As a result, Dominion Energy expects to recognize a gain of approximately $90 million ($65 million after-tax) in the third quarter of 2018. Dominion Energy Gas Iroquois Dominion Energy Gas’ equity earnings totaled $14 million and $11 million for the six months ended June 30, 2018 and 2017, respectively. Dominion Energy Gas received distributions of $14 million and $11 million for the six months ended June 30, 2018 and 2017, respectively. At both June 30, 2018 and December 31, 2017, the carrying amount of Dominion Energy Gas’ investment of $95 million exceeded its share of underlying equity in net assets by $8 million. The difference reflects equity method goodwill and is not being amortized.

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