<SEC-DOCUMENT>0001193125-21-279538.txt : 20220315
<SEC-HEADER>0001193125-21-279538.hdr.sgml : 20220315
<ACCEPTANCE-DATETIME>20210922170800
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ACCESSION NUMBER:		0001193125-21-279538
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20210922

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DOMINION ENERGY, INC
		CENTRAL INDEX KEY:			0000715957
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				541229715
		STATE OF INCORPORATION:			VA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		120 TREDEGAR STREET
		CITY:			RICHMOND
		STATE:			VA
		ZIP:			23219
		BUSINESS PHONE:		8048192000

	MAIL ADDRESS:	
		STREET 1:		P. O. BOX 26532
		CITY:			RICHMOND
		STATE:			VA
		ZIP:			23261

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DOMINION ENERGY INC /VA/
		DATE OF NAME CHANGE:	20170515

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DOMINION RESOURCES INC /VA/
		DATE OF NAME CHANGE:	19920703
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">September&nbsp;22, 2021 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Wei Lu, Staff Accountant </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ethan Horowitz, Accounting Branch
Chief </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and
Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Dominion Energy, Inc. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended December&nbsp;31, 2020 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Filed February&nbsp;25, 2021 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08489</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Lu and Mr.&nbsp;Horowitz: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dominion Energy, Inc.
(Dominion Energy) received the Staff&#146;s letter dated September&nbsp;10, 2021, which provided comments on the above-referenced document. This response letter has been filed on EDGAR. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">For your convenience, the Staff&#146;s comments are set forth below and are followed by our responses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Staff Comment</U>: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1. You provide disclosure about the
effects of climate change on weather and how this could impact the company. Please quantify any material weather-related damages to your property or operations. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response</U>: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dominion Energy tracks the impacts of
weather-related damages to its properties and operations as storm damage and service restoration costs. Historically, Dominion Energy&#146;s electric transmission and distribution operations have incurred the majority of such costs. To the extent
that there is a weather event causing significant costs and customer outages, these costs are allocated to the Corporate and Other segment as these amounts are not included in profit measures evaluated by executive management in assessing operating
segment performance or allocating resources. As such, these amounts when significant are disclosed within Note 26, <I>Operating Segments</I>, in the Notes to the Consolidated Financial Statements. For example, costs associated with major storm
damage and restoration were disclosed when such amounts were $70&nbsp;million ($52&nbsp;million <FONT STYLE="white-space:nowrap">after-tax)</FONT> for the year ended December&nbsp;31, 2018 for Dominion Energy. To the extent that there is a
significant variance between periods in the total storm damage and service restoration costs, inclusive of any costs associated with major storms, such amounts would be disclosed within Item 7. <I>Management</I><I>&#146;</I><I>s Discussion and
Analysis</I>, specifically within the Analysis of Consolidated Operations section. The decreases in such costs were not considered to be significant to the analysis of Dominion Energy&#146;s results of operations, specifically to an understanding of
other operations and maintenance expense, for either 2020 compared to 2019 or 2019 compared to 2018. Dominion Energy&#146;s other operations and maintenance expense in its Consolidated Statements of Income were $3.7&nbsp;billion, $3.8&nbsp;billion
and $2.8&nbsp;billion for the years ended December&nbsp;31, 2020, 2019 and 2018, respectively. One factor which mitigates the impacts of weather-related damages to Dominion Energy&#146;s results of operations is that the regulatory framework
applicable to its subsidiary Dominion Energy South Carolina, Inc. provides for the recovery of storm damage and restoration costs in excess of a set annual amount. These costs are deferred to a regulatory asset, which at December&nbsp;31, 2020, did
not represent a material balance to Dominion Energy. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Staff Comment</U>: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">2. If material, disclose any weather-related impacts on the cost or availability of insurance. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response</U>: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Damages associated with weather related
flooding, storm surge and other wind driven water damage have been a factor in the cost of insurance in recent years. However, these events have not had a material impact to the cost or availability of Dominion Energy&#146;s overall insurance
program. To the extent that there had been a significant variance in Dominion Energy&#146;s results of operations from the cost of insurance, such amounts would have been disclosed within Item 7. <I>Management&#146;s Discussion and Analysis</I>,
specifically within the Analysis of Consolidated Operations section. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Staff Comment</U>: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">3. Disclose any material litigation risks related to climate change and the potential impact to the company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response</U>: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dominion Energy evaluates material risks as
part of its quarterly financial reporting process conducted by its SEC Reporting team, which includes employees from the accounting and legal departments, through discussion with and information provided by our litigation and risk teams. While
Dominion Energy has identified and disclosed risk factors related both to litigation and to changes in the weather, including the effects of global climate change, as disclosed in Item 1A. <I>Risk Factors</I>, Dominion Energy has not yet identified
a material litigation risk related to climate change. To date, Dominion Energy is not aware of any specific and targeted global warming or climate change litigation asserted or reasonably expected to be asserted against it. To the extent that
Dominion Energy was a party to any litigation reasonably possible to result in a material impact, such litigation would have been disclosed within the Note 23, <I>Commitments and Contingencies</I>, in the Notes to the Consolidated Financial
Statements and Item 3. <I>Legal Proceedings</I>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Staff Comment</U>: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">4. You provide disclosure about the purchase of carbon credits to offset emissions. If material, provide disclosure about any material effects of this on your
business, financial condition, and results of operations. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response</U>: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dominion Energy&#146;s purchases of carbon credits primarily relate to its subsidiary Virginia Electric and Power Company (Virginia Power) in connection with
state regulations in Virginia. This topic has been disclosed both within Note 23, <I>Commitments and Contingencies</I>, under the subheading State Regulations in the Environmental Matters section as well as within Note 13, <I>Regulatory Matters</I>,
in the Virginia Regulation section of Other Regulatory Matters, in the Notes to the Consolidated Financial Statements. As disclosed in Note 13 under the subheading Virginia 2020 Legislation, a component of the Virginia Clean Economy Act of 2020
(VCEA) and related legislation includes provisions directing Virginia Power to participate in a market-based carbon trading program consistent with the Regional Greenhouse Gas Initiative (RGGI) through 2050 with the associated costs recoverable
through an environmental rider. As also noted within Note 13, under the subheading Riders, Virginia Power filed an application in December 2020 for the approval of Rider RGGI to recover such costs with a proposed $167&nbsp;million revenue
requirement for the rate year beginning August&nbsp;1, 2021. As this program commenced in 2021, there were no material amounts incurred as of December&nbsp;31, 2020. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As disclosed within Note 13, <I>Regulatory Matters</I>, in the Notes to Consolidated Financial Statements to Dominion Energy&#146;s Form <FONT
STYLE="white-space:nowrap">10-Q</FONT> for the quarter ended June&nbsp;30, 2021, the Virginia State Corporation Commission approved Rider RGGI with a $168&nbsp;million revenue requirement for the rate year beginning September&nbsp;1, 2021. Costs
incurred through June&nbsp;30, 2021 associated with Virginia Power&#146;s participation in the market-based carbon trading program have been included within regulatory assets on Dominion Energy&#146;s Consolidated Balance Sheets with such amounts
included within the caption deferred rider costs for Virginia electric utility within the table shown in Note 12, <I>Regulatory Assets and Liabilities</I>. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If you have any questions or require further information, please call me at&nbsp;(804) <FONT
STYLE="white-space:nowrap">819-2181.</FONT> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Sincerely,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James R. Chapman</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">James R. Chapman</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Executive Vice President, Chief Financial Officer and Treasurer</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Dominion Energy, Inc.</TD></TR>
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