Long-Term Debt

12 Months Ended

Dec. 31, 2021

NOTE 18. LONG-TERM DEBT

At December 31,	2021 Weighted- average Coupon⁽¹⁾			2021			2020
(millions, except percentages)
Virginia Electric and Power Company:
Unsecured Senior Notes:
2.30% to 8.875%, due 2022 to 2051		4.07	%	$	13,238		$	12,689
Tax-Exempt Financings⁽²⁾:
0.45% to 1.90%, due 2032 to 2041		1.14	%		625			625
Virginia Electric and Power Company total principal				$	13,863		$	13,314
Securities due within one year		3.45	%		(300	)		—
Unamortized discount, premium and debt issuances costs, net					(110	)		(107	)
Derivative restructuring					446			444
Finance leases					57			36
Virginia Electric and Power Company total long-term debt				$	13,956		$	13,687
Dominion Energy, Inc.:
Supplemental 364-Day credit facility, variable rate, due 2021				$	—		$	225
Sustainability Revolving Credit Agreement, variable rate, due 2024⁽³⁾					—			—
Unsecured Senior Notes:
Variable rate, due 2023		0.73	%		1,000			1,000
1.45% to 7.0%, due 2021 to 2049⁽⁴⁾		3.78	%		11,238			9,938
Unsecured Junior Subordinated Notes:
2.715% to 4.104%, due 2021 and 2024		3.07	%		700			1,950
Payable to Affiliated Trust, 8.4%, due 2031		8.40	%		10			10
Enhanced Junior Subordinated Notes:
5.25% and 5.75%, due 2054 and 2076⁽⁵⁾		5.75	%		685			1,485
DECP Holdings, Term Loan, variable rate, due 2024⁽⁶⁾		1.50	%		2,500			—
Questar Gas, Unsecured Senior Notes, 2.21% to 7.20%, due 2024 to 2051		3.85	%		1,000			750
East Ohio, Unsecured Senior Notes, 1.30% to 3.00%, due 2025 to 2050		2.25	%		1,800			1,800
PSNC, Senior Debentures and Notes, 3.10% to 7.45%, due 2021 to 2051		4.34	%		800			800
DESC:
First Mortgage Bonds, 2.30% to 6.625%, due 2021 to 2065		5.09	%		3,634			3,267
Tax-Exempt Financings⁽⁷⁾:
Variable rate due 2038		0.14	%		35			35
3.625% and 4.00%, due 2028 and 2033		3.90	%		54			54
GENCO, variable rate due 2038		0.14	%		33			33
Other		3.65	%		1			1
Secured Senior Notes, 4.82%, due 2042⁽⁸⁾		4.82	%		314			331
Term Loans, variable rates, due 2023 and 2024⁽⁹⁾					—			476
Tax-Exempt Financing, 1.7% due 2033		1.70	%		27			27
Virginia Electric and Power Company total principal (from above)					13,863			13,314
Dominion Energy, Inc. total principal⁽¹⁰⁾				$	37,694		$	35,496
Fair value hedge valuation⁽¹¹⁾					2			3
Securities due within one year⁽¹²⁾		2.79	%		(805	)		(1,905	)
Supplemental 364-Day credit facility borrowings					—			(225	)
Unamortized discount, premium and debt issuance costs, net					(315	)		(293	)
Derivative restructuring					738			773
Finance leases					112			108
Dominion Energy, Inc. total long-term debt				$	37,426		$	33,957

(1)	Represents weighted-average coupon rates for debt outstanding as of December 31, 2021.

(2)	These financings relate to certain pollution control equipment at Virginia Power’s generating facilities.

(3)

This $900 million supplemental credit facility, entered in June 2021, offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. Proceeds of the supplemental credit facility also may be used for general corporate purposes, but such proceeds are not eligible for a reduced interest rate margin. In June 2021 and August 2021, Dominion Energy borrowed $250 million and $650 million respectively. The proceeds from these borrowings were used to support environmental sustainability and social investment initiatives ($250 million) and for general corporate purposes ($650 million). In November 2021 and December 2021, Dominion Energy repaid $650 million and $250 million, respectively, borrowed under this arrangement.

(4)	Includes debt assumed by Dominion Energy from the merger of its former CNG subsidiary.

(5)	In August 2021, Dominion Energy redeemed the remaining principal outstanding of $800 million of its July 2016 hybrids, which would have otherwise matured in 2076.

(6)	The term loan amortizes over a 17-year period and matures in December 2024 with the potential to be extended to December 2026. The debt is secured by DECP Holdings’ noncontrolling interest in Cove Point.

(7)	Industrial revenue bonds totaling $68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2022.

(

8)	Represents debt associated with Eagle Solar. The debt is nonrecourse to Dominion Energy and is secured by Eagle Solar’s interest in certain solar facilities.

(9)

Represents debt associated with SBL Holdco and Dominion Solar Projects III, Inc. The debt was nonrecourse to Dominion Energy and was secured by SBL Holdco’s and Dominion Solar Projects III, Inc’s interest in certain solar facilities. In connection with the sales of certain non-wholly owned nonregulated solar facilities discussed in Note 10, the outstanding debt of SBL Holdco was assumed by Terra Nova Renewable Partners and Dominion Energy utilized proceeds from Clearway to repay the outstanding balance of the Dominion Solar Projects III, Inc. term loan.

(10)	Excludes amounts classified as held for sale at December 31, 2020. See Note 3.

(11)	Represents the valuation of certain fair value hedges associated with Dominion Energy’s fixed rate debt.

(12)	At December 31, 2020, includes $22 million of estimated mandatory prepayments due within one year based on estimated cash flows in excess of debt service at SBL Holdco and Dominion Solar Projects III, Inc.

Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2021, were as follows:

	2022			2023			2024			2025			2026			Thereafter			Total
(millions, except percentages)
Virginia Power
Unsecured Senior Notes	$	300		$	700		$	350		$	350		$	1,150		$	10,388		$	13,238
Tax-Exempt Financings		—			—			—			—			—			625			625
Total	$	300		$	700		$	350		$	350		$	1,150		$	11,013		$	13,863
Weighted-average Coupon		3.45	%		2.75	%		3.45	%		3.10	%		3.08	%		4.16	%
Dominion Energy
Term Loans	$	151		$	134		$	2,215		$	—		$	—		$	—		$	2,500
First Mortgage Bonds		—			—			—			—			—			3,634			3,634
Unsecured Senior Notes		650			2,700			690			2,000			2,257			20,779			29,076
Secured Senior Notes		6			17			31			19			20			221			314
Tax-Exempt Financings		—			—			—			—			—			775			775
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts		—			—			—			—			—			10			10
Unsecured Junior Subordinated Notes		—			—			700			—			—			—			700
Enhanced Junior Subordinated Notes		—			—			—			—			—			685			685
Total	$	807		$	2,851		$	3,636		$	2,019		$	2,277		$	26,104		$	37,694
Weighted-average Coupon		2.79	%		1.89	%		2.20	%		3.01	%		2.82	%		4.26	%

The Companies’ short-term credit facility and long-term debt agreements contain customary covenants and default provisions. As of December 31, 2021, there were no events of default under these covenants.

Senior Note Issuances

In January 2022, Virginia Power issued $600 million of 2.40% senior notes and $400 million of 2.95% senior notes that mature in 2032 and 2051, respectively. The proceeds were used for general corporate purposes and/or to repay short-term debt.

Enhanced Junior Subordinated Notes

In June 2006 and September 2006, Dominion Energy issued $300 million of June 2006 hybrids and $500 million of September 2006 hybrids, respectively. The June 2006 hybrids and the September 2006 hybrids bore interest at the three-month LIBOR plus 2.825%, reset quarterly and at the three-month LIBOR plus 2.3%, reset quarterly, respectively. Dominion Energy executed RCCs in connection with its issuance of the June 2006 hybrids and the September 2006 hybrids. Under the terms of the RCCs, redemptions of the hybrids were subject to certain conditions. In 2019, Dominion Energy purchased and cancelled $12 million and $13 million of its June 2006 hybrids and September 2006 hybrids, respectively. In February 2020, Dominion Energy redeemed the remaining $111 million and $286 million of its June 2006 hybrids and September 2006 hybrids, respectively, both of which would have otherwise matured in 2066. All purchases were conducted in compliance with the applicable RCC, each of which was terminated in February 2020. Expenses related to the early redemption of the hybrids were $10 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2020.

In October 2014, Dominion Energy issued $685 million of October 2014 hybrids that will bear interest at 5.75% per year until October 1, 2024. Thereafter, they will bear interest at the three-month LIBOR plus 3.057%, reset quarterly. If the three-month LIBOR is terminated while the October 2014 hybrids are outstanding, they will thereafter bear interest at the last interest rate determined prior to the termination.

In July 2016, Dominion Energy issued $800 million of 5.25% July 2016 hybrids. In August 2021, Dominion Energy redeemed the remaining principal outstanding of $800 million of its July 2016 hybrids, which would have otherwise matured in 2076 and were listed on the NYSE under the symbol DRUA. Expenses related to the early redemption of the hybrids were $23 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2021.

Dominion Energy may defer interest payments on the hybrids on one or more occasions for up to 10 consecutive years. If the interest payments on the hybrids are deferred, Dominion Energy may not make distributions related to its capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities that are equal in right of payment with, or subordinated to, the hybrids.

Remarketable Subordinated Notes

In June 2019, Dominion Energy successfully remarketed the $700 million 2016 Series A-1 2.0% RSNs due 2021 and $700 million 2016 Series A-2 2.0% RSNs due 2024 pursuant to the terms of the related 2016 Equity Units. In connection with the remarketing, the interest rates on the Series A-1 and Series A-2 notes were reset to 2.715% and 3.071%, respectively, payable on a semi-annual basis, and Dominion Energy ceased to have the ability to redeem the notes at its option or defer interest payments.

Dominion Energy did not receive any proceeds from the remarketing. Remarketing proceeds belonged to the investors holding the 2016 Equity Units and were temporarily used to purchase a portfolio of treasury securities. Upon maturity of the portfolio, the proceeds were applied on behalf of the investors on the related stock purchase contract settlement date to pay the purchase price to Dominion Energy for issuance of 18.5 million shares of its common stock in August 2019.

Derivative Restructuring

In June 2020, Dominion Energy amended a portfolio of interest rate swaps with a notional value of $2.0 billion, extending the mandatory termination dates from 2020 and 2021 to December 2024. As a result of this noncash financing activity with an embedded interest rate swap, Dominion Energy recorded $326 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 1.19%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception. In August 2021, Dominion Energy settled certain of the outstanding interest rate swaps which would have otherwise matured in December 2024, resulting in a $39 million reduction in other long-term debt.

In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900 million, extending the mandatory termination dates from 2020 to December 2023. As a result of this noncash financing activity with an embedded interest rate swap, Virginia Power recorded $443 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 0.34%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception. The interest rate swaps were in a hedge relationship prior to the transaction. Virginia Power de-designated the hedge relationships prior to the transaction and then designated the new interest rate swap in a hedge relationship after the transaction.