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Investments | Nov. 18, 2019
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Investments, Debt and Equity Securities [Abstract] |
Investments | Note 10. Investments Dominion Energy Equity and Debt Securities Rabbi Trust Securities Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $113 million and $111 million at June 30, 2019 and December 31, 2018, respectively. Decommissioning Trust Securities Dominion Energy holds equity and fixed income securities, insurance contracts and cash equivalents 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, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 1,776 |  |  |  |  |  |  | $ | 2,120 |  |  |  |  |  |  | $ | (21 | ) |  |  |  | $ | 3,875 |
Fixed income securities: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 474 |  |  |  |  |  |  |  | 27 |  |  |  |  |  |  |  | (1 | ) |  |  |  |  | 500 |
Government securities |  |  | 1,073 |  |  |  |  |  |  |  | 41 |  |  |  |  |  |  |  | (2 | ) |  |  |  |  | 1,112 |
Common/collective trust funds |  |  | 63 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  | 63 |
Insurance contracts |  |  | 206 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  | 206 |
Cash equivalents and other (3) |  |  | 11 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  | 11 |
Total |  | $ | 3,603 |  |  |  |  |  |  | $ | 2,188 |  |  |  |  |  |  | $ | (24 | ) |  | (4) |  | $ | 5,767 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 1,741 |  |  |  |  |  |  | $ | 1,640 |  |  |  |  |  |  | $ | (51 | ) |  |  |  | $ | 3,330 |
Fixed income securities: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 435 |  |  |  |  |  |  |  | 5 |  |  |  |  |  |  |  | (9 | ) |  |  |  |  | 431 |
Government securities |  |  | 1,092 |  |  |  |  |  |  |  | 17 |  |  |  |  |  |  |  | (12 | ) |  |  |  |  | 1,097 |
Common/collective trust funds |  |  | 76 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  | 76 |
Cash equivalents and other |  |  | 4 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  | 4 |
Total |  | $ | 3,348 |  |  |  |  |  |  | $ | 1,662 |  |  |  |  |  |  | $ | (72 | ) |  | (4) |  | $ | 4,938 |
(1) | Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.
(2) | Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability .
(3) | Includes pending sales of securities of $ 3 million at June 30, 2019 .
(4) | The fair value of securities in an unrealized loss position was $ 208 million and $ 833 million at June 30, 2019 and December 31, 2018, respectively.
The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy’s nuclear decommissioning trusts is summarized below:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Net gains recognized during the period |  | $ | 156 |  |  | $ | 89 |  |  | $ | 570 |  |  | $ | 24 |
Less: Net gains recognized during the period on securities sold during the period |  |  | (25 | ) |  |  | (16 | ) |  |  | (44 | ) |  |  | (35 | )
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2019 and 2018 (1) |  | $ | 131 |  |  | $ | 73 |  |  | $ | 526 |  |  | $ | (11 | )
(1) | Included in other income and the nuclear decommissioning trust regulatory liability.
The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2019 by contractual maturity is as follows:
|  | Amount |
(millions) |  |  |
Due in one year or less |  | $ | 203 |
Due after one year through five years |  |  | 397 |
Due after five years through ten years |  |  | 387 |
Due after ten years |  |  | 688 |
Total |  | $ | 1,675 |
Presented below is selected information regarding Dominion Energy’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 376 |  |  | $ | 425 |  |  | $ | 882 |  |  | $ | 844 |
Realized gains (1) |  |  | 56 |  |  |  | 36 |  |  |  | 99 |  |  |  | 72 |
Realized losses (1) |  |  | 27 |  |  |  | 23 |  |  |  | 50 |  |  |  | 42 |
(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 immaterial for the three and six months ended June 30, 2019 and 2018. Virginia Power Virginia Power holds equity and fixed income securities and cash equivalents 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, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 888 |  |  | $ | 981 |  |  | $ | (11 | ) |  | $ | 1,858 |
Fixed income securities: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 244 |  |  |  | 13 |  |  |  | — |  |  |  | 257 |
Government securities |  |  | 500 |  |  |  | 18 |  |  |  | (1 | ) |  |  | 517 |
Common/collective trust funds |  |  | 47 |  |  |  | — |  |  |  | — |  |  |  | 47 |
Cash equivalents and other (3) |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | 3 |
Total |  | $ | 1,682 |  |  | $ | 1,012 |  |  | $ | (12 | ) (4) |  | $ | 2,682 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 858 |  |  | $ | 751 |  |  | $ | (24 | ) |  | $ | 1,585 |
Fixed income securities: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 224 |  |  |  | 2 |  |  |  | (5 | ) |  |  | 221 |
Government securities |  |  | 504 |  |  |  | 7 |  |  |  | (5 | ) |  |  | 506 |
Common/collective trust funds |  |  | 51 |  |  |  | — |  |  |  | — |  |  |  | 51 |
Cash equivalents and other (3) |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 6 |
Total |  | $ | 1,643 |  |  | $ | 760 |  |  | $ | (34 | ) (4) |  | $ | 2,369 |
(1) | Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.
(2) | Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability .
(3) | Includes pending sales of securities of $ 3 million and $ 6 million at June 30, 2019 and December 31, 2018, respectively.
(4) | The fair value of securities in an unrealized loss position was $ 97 million and $ 404 ​​​​​​​million at June 30, 2019 and December 31, 2018, 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, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Net gains recognized during the period |  | $ | 70 |  |  | $ | 44 |  |  | $ | 256 |  |  | $ | 12 |
Less: Net gains recognized during the period on securities sold during the period |  |  | (7 | ) |  |  | (8 | ) |  |  | (8 | ) |  |  | (23 | )
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2019 and 2018 (1) |  | $ | 63 |  |  | $ | 36 |  |  | $ | 248 |  |  | $ | (11 | )
(1) | Included in other income and the nuclear decommissioning trust regulatory liability.
The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2019 by contractual maturity is as follows:
|  | Amount |
(millions) |  |  |
Due in one year or less |  | $ | 98 |
Due after one year through five years |  |  | 154 |
Due after five years through ten years |  |  | 212 |
Due after ten years |  |  | 357 |
Total |  | $ | 821 |
Presented below is selected information regarding Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 194 |  |  | $ | 196 |  |  | $ | 447 |  |  | $ | 414 |
Realized gains (1) |  |  | 15 |  |  |  | 15 |  |  |  | 25 |  |  |  | 33 |
Realized losses (1) |  |  | 3 |  |  |  | 7 |  |  |  | 12 |  |  |  | 12 |
(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 immaterial for the three and six months ended June 30, 2019 and 2018. Equity Method Investments Dominion Energy Atlantic Coast Pipeline In September 2014, Dominion Energy, along with Duke and Southern Company Gas, announced the formation of Atlantic Coast Pipeline. The Atlantic Coast Pipeline partnership agreement includes provisions to allow Dominion Energy an option to purchase additional ownership interest in Atlantic Coast Pipeline to maintain a leading ownership percentage. As of June 30, 2019, the members hold the following membership interests: Dominion Energy, 48%; Duke, 47%; and Southern Company Gas, 5%. Atlantic Coast Pipeline is focused on constructing an approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina. Subsidiaries and affiliates of all three members plan to be customers of the pipeline under 20-year contracts. Atlantic Coast Pipeline is considered an equity method investment as Dominion Energy has the ability to exercise significant influence, but not control, over the investee. See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2018 , as updated in Current Report on Form 8-K, filed November 18, 2019 , for more information. Dominion Energy recorded contributions of $33 million and $81 million during the three months ended June 30, 2019 and 2018, respectively, and $128 million and $159 million during the six months ended June 30, 2019 and 2018, respectively, to Atlantic Coast Pipeline. At June 30, 2019, Dominion Energy had $11 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 $26 million and $60 million for the three months ended June 30, 2019 and 2018, respectively, and $57 million and $106 million for the six months ended June 30, 2019 and 2018, respectively, included in operating revenue in Dominion Energy and Dominion Energy Gas’ Consolidated Statements of Income. Amounts receivable related to these services were $10 million and $13 million at June 30, 2019 and December 31, 2018, 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 18 for more information. During the third and fourth quarters of 2018, a FERC stop work order together with delays in obtaining permits necessary for construction along with construction delays due to judicial actions impacted the cost and schedule for the project. As a result, project cost estimates have increased from between $6.0 billion to $6.5 billion to between $7.0 billion to $7.5 billion, excluding financing costs. Atlantic Coast Pipeline expects to achieve a late 2020 in-service date for at least key segments of the project, while the remainder may extend into early 2021. Alternatively, if it takes longer to resolve the judicial issues, such as through resolution of the appeal to the Supreme Court of the U.S. filed in June 2019, full in-service could extend to the end of 2021 with total project cost estimated to increase an additional $250 million, resulting in total project cost estimates of $7.25 billion to $7.75 billion, excluding financing costs. Atlantic Coast Pipeline is also evaluating possible legislative and administrative remedies. Project construction activities, schedules and costs are subject to uncertainty due to permitting and/or work delays (including due to judicial or regulatory action), abnormal weather and other conditions that could result in cost or schedule modifications in the future, a suspension of AFUDC for Atlantic Coast Pipeline and/or impairment charges potentially material to Dominion Energy’s cash flows, financial position and/or results of operations. Blue Racer In the first quarter of 2019, Dominion Energy received $151 million of additional consideration, including applicable interest, in connection with the sale of Dominion Energy’s 50% limited partnership interest in Blue Racer in December 2018, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2018 , as updated in Current Report on Form 8-K, filed November 18, 2019. Dominion Energy Gas Iroquois and White River Hub Dominion Energy Gas’ equity earnings totaled $22 million and $31 million for the six months ended June 30, 2019 and 2018, respectively. Dominion Energy Gas received distributions of $30 million and $31 million for the six months ended June 30, 2019 and 2018, respectively. At June 30, 2019 and December 31, 2018, the carrying amount of Dominion Energy Gas’ investment of $331 million and $339 million, respectively, exceeded its share of underlying equity in net assets by $146 million. The difference reflects equity method goodwill and is not being amortized.

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