XML 56 R37.htm IDEA: XBRL DOCUMENT v3.22.0.1
Operating Segments
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Operating Segments

NOTE 26. OPERATING SEGMENTS

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

Primary Operating Segment

 

Description of Operations

 

Dominion Energy

 

Virginia Power

Dominion Energy Virginia

 

Regulated electric distribution

 

X

 

X

 

 

Regulated electric transmission

 

X

 

X

 

 

Regulated electric generation fleet(1)

 

X

 

X

Gas Distribution

 

Regulated gas distribution and storage(2)

 

X

 

 

Dominion Energy South Carolina

 

Regulated electric distribution

 

X

 

 

 

 

Regulated electric transmission

 

X

 

 

 

 

Regulated electric generation fleet

 

X

 

 

 

 

Regulated gas distribution and storage

 

X

 

 

Contracted Assets

 

Nonregulated electric generation fleet(3)

 

X

 

 

 

 

Noncontrolling interest in Cove Point

 

X

 

 

(1)    Includes Virginia Power’s non-jurisdictional generation operations.

(2)   Includes renewable natural gas operations as well as Wexpro’s natural gas development and production operations.

(3)    Includes solar generation facility development operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service companies and other functions (including unallocated debt) as well as nonregulated retail energy marketing operations (prior to December 1, 2021), including Dominion Energy’s noncontrolling interest in Wrangler. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, as well as the net impact of the gas transmission and storage operations held in discontinued operations which are discussed in Note 3.

In 2021, Dominion Energy reported after-tax net expenses of $99 million in the Corporate and Other segment, including $97 million of after-tax net benefit for specific items with $493 million of after tax-net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2021 primarily related to the impact of the following items:

•

A $347 million ($261 million after-tax) loss related to economic hedging activities, attributable to Contracted Assets;

•

$266 million ($199 million after-tax) of charges associated with the settlement of the South Carolina electric base rate case, attributable to Dominion Energy South Carolina;

•

A $211 million ($161 million after-tax) net loss on the sale of non-wholly-owned nonregulated solar facilities, attributable to Contracted Assets;

•

A $151 million ($112 million after-tax) loss from an unbilled revenue reduction at Virginia Power, attributable to Dominion Energy Virginia;

•

A $125 million ($93 million after-tax) net charge associated with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia;

•

A $77 million ($57 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process, attributable to Dominion Energy Virginia;

•

A $70 million ($53 million after-tax) charge associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina;

•

A $68 million ($50 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia;

•

A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia; and

•

A $44 million ($35 million after-tax) charge related to a revision in estimated recovery of spent nuclear fuel costs associated with the decommissioning of Kewaunee, attributable to Contracted Assets; partially offset by

•

A $568 million ($445 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

 

•

Contracted Assets ($390 million after-tax); and

 

•

Dominion Energy Virginia ($55 million after-tax); and

•

A $130 million ($97 million after-tax) benefit for a change in the expected CCRO to be provided to Virginia retail electric customers under the GTSA, attributable to Dominion Energy Virginia.

In 2020, Dominion Energy reported after-tax net expenses of $3.7 billion in the Corporate and Other segment, including $3.4 billion of after-tax net expenses for specific items with $1.2 billion of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2020 primarily related to the impact of the following items:

•

A $751 million ($564 million after-tax) charge primarily related to the planned early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia;

•

A $405 million ($325 million after-tax) charge associated with certain nonregulated solar generation facilities, attributable to Contracted Assets;

•

A $221 million ($171 million after-tax) charge associated with the sale of Fowler Ridge, attributable to Contracted Assets; and

•

A $130 million ($97 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric customers under the GTSA, attributable to Dominion Energy Virginia;

•

A $127 million ($94 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to legislation enacted in November 2020, attributable to Dominion Energy Virginia; and

•

A $117 million ($93 million after-tax) of charges associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina; partially offset by

•

A $335 million ($264 million after-tax) net gain related to investments in nuclear decommissioning trust funds attributable to:

 

•

Dominion Energy Virginia ($27 million after-tax); and

 

•

Contracted Assets ($237 million after-tax).

In 2019, Dominion Energy reported after-tax net expenses of $1.8 billion in the Corporate and Other segment, including $1.5 billion of after-tax net expenses for specific items with $1.9 billion of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2019 primarily related to the impact of the following items:

•

A $1.0 billion ($756 million after-tax) charge for refunds of amounts previously collected from retail electric customers of DESC for the NND Project, attributable to Dominion Energy South Carolina;

•

$641 million ($480 million after-tax) of charges associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina;

•

$427 million ($320 million after-tax) of charges for merger and integration-related costs associated with the SCANA Combination, including a $394 million ($295 million after-tax) charge related to a voluntary retirement program, attributable to:

 

•

Dominion Energy Virginia ($151 million after-tax);

 

•

Gas Distribution ($56 million after-tax);

 

•

Dominion Energy South Carolina ($75 million after-tax); and

 

•

Contracted Assets ($38 million after-tax).

•

A $346 million ($257 million after-tax) charge related to the early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia;

•

A $194 million tax charge for $258 million of income tax-related regulatory assets acquired in the SCANA Combination for which Dominion Energy committed to forgo recovery, attributable to Dominion Energy South Carolina;

•

A $160 million ($119 million after-tax) charge related to Virginia Power’s planned early retirement of certain automated meter reading infrastructure, attributable to Dominion Energy Virginia;

•

A $135 million ($100 million after-tax) charge related to Virginia Power’s contract termination with a non-utility generator, attributable to Dominion Energy Virginia;

•

A $114 million ($86 million after-tax) charge for property, plant and equipment acquired in the SCANA Combination primarily for which Dominion Energy committed to forgo recovery, attributable to Dominion Energy South Carolina; partially offset by

•

A $553 million ($411 million after-tax) net gain related to investments in nuclear decommissioning trust funds attributable to:

 

•

Dominion Energy Virginia ($49 million after-tax); and

 

•

Contracted Assets ($362 million after-tax); and

•

A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019, attributable to Dominion Energy Virginia.

The following table presents segment information pertaining to Dominion Energy’s operations:

 

Year Ended December 31,

 

Dominion Energy Virginia

 

 

Gas Distribution

 

 

Dominion Energy South Carolina

 

 

Contracted Assets

 

 

Corporate

and Other

 

 

Adjustments &

Eliminations

 

 

Consolidated

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

 

$

8,012

 

 

$

2,660

 

 

$

2,968

 

 

$

1,018

 

 

$

(759

)

 

$

60

 

 

$

13,959

 

Intersegment revenue

 

 

(13

)

 

 

5

 

 

 

7

 

 

 

67

 

 

 

943

 

 

 

(1,004

)

 

 

5

 

Total operating revenue

 

 

7,999

 

 

 

2,665

 

 

 

2,975

 

 

 

1,085

 

 

 

184

 

 

 

(944

)

 

 

13,964

 

Depreciation, depletion and amortization

 

 

1,299

 

 

 

380

 

 

 

486

 

 

 

162

 

 

 

151

 

 

 

—

 

 

 

2,478

 

Equity in earnings of equity method investees

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

259

 

 

 

20

 

 

 

—

 

 

 

276

 

Interest income

 

 

13

 

 

 

6

 

 

 

10

 

 

 

81

 

 

 

17

 

 

 

(26

)

 

 

101

 

Interest and related charges

 

 

537

 

 

 

86

 

 

 

206

 

 

 

52

 

 

 

499

 

 

 

(26

)

 

 

1,354

 

Income tax expense (benefit)

 

 

462

 

 

 

116

 

 

 

125

 

 

 

112

 

 

 

(390

)

 

 

—

 

 

 

425

 

Net income from discontinued operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

641

 

 

 

—

 

 

 

641

 

Net income (loss) attributable to Dominion

   Energy

 

 

1,919

 

 

 

600

 

 

 

437

 

 

 

431

 

 

 

(99

)

 

 

—

 

 

 

3,288

 

Investment in equity method investees(1)

 

 

—

 

 

 

106

 

 

 

—

 

 

 

2,738

 

 

 

88

 

 

 

—

 

 

 

2,932

 

Capital expenditures

 

 

3,762

 

 

 

1,252

 

 

 

694

 

 

 

277

 

 

 

76

 

 

 

—

 

 

 

6,061

 

Total assets (billions)

 

 

50.3

 

 

 

18.5

 

 

 

16.4

 

 

 

12.3

 

 

 

7.1

 

 

 

(5.0

)

 

 

99.6

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

 

$

7,802

 

 

$

2,345

 

 

$

2,782

 

 

$

1,020

 

 

$

200

 

 

$

48

 

 

$

14,197

 

Intersegment revenue

 

 

(15

)

 

 

10

 

 

 

5

 

 

 

51

 

 

 

963

 

 

 

(1,039

)

 

 

(25

)

Total operating revenue

 

 

7,787

 

 

 

2,355

 

 

 

2,787

 

 

 

1,071

 

 

 

1,163

 

 

 

(991

)

 

 

14,172

 

Depreciation, depletion and amortization

 

 

1,247

 

 

 

344

 

 

 

474

 

 

 

182

 

 

 

85

 

 

 

—

 

 

 

2,332

 

Equity in earnings of equity method investees

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

35

 

 

 

6

 

 

 

—

 

 

 

40

 

Interest income

 

 

13

 

 

 

6

 

 

 

12

 

 

 

91

 

 

 

73

 

 

 

(88

)

 

 

107

 

Interest and related charges

 

 

527

 

 

 

76

 

 

 

219

 

 

 

75

 

 

 

568

 

 

 

(88

)

 

 

1,377

 

Income tax expense (benefit)

 

 

496

 

 

 

121

 

 

 

107

 

 

 

(16

)

 

 

(625

)

 

 

—

 

 

 

83

 

Net income (loss) from discontinued

   operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

167

 

 

 

(2,045

)

 

 

—

 

 

 

(1,878

)

Net income (loss) attributable to Dominion

   Energy

 

 

1,891

 

 

 

560

 

 

 

419

 

 

 

402

 

 

 

(3,673

)

 

 

—

 

 

 

(401

)

Investment in equity method investees(1)

 

 

—

 

 

 

55

 

 

 

—

 

 

 

2,784

 

 

 

95

 

 

 

—

 

 

 

2,934

 

Capital expenditures

 

 

3,406

 

 

 

1,151

 

 

 

700

 

 

 

649

 

 

 

425

 

 

 

—

 

 

 

6,331

 

Total assets (billions)

 

 

46.0

 

 

 

17.1

 

 

 

16.0

 

 

 

13.1

 

 

 

8.6

 

 

 

(4.9

)

 

 

95.9

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from external customers

 

$

8,170

 

 

$

2,367

 

 

$

2,948

 

 

$

1,083

 

 

$

(239

)

 

$

79

 

 

$

14,408

 

Intersegment revenue

 

 

(13

)

 

 

18

 

 

 

4

 

 

 

73

 

 

 

1,071

 

 

 

(1,160

)

 

 

(7

)

Total operating revenue

 

 

8,157

 

 

 

2,385

 

 

 

2,952

 

 

 

1,156

 

 

 

832

 

 

 

(1,081

)

 

 

14,401

 

Depreciation, depletion and amortization

 

 

1,216

 

 

 

335

 

 

 

452

 

 

 

180

 

 

 

100

 

 

 

—

 

 

 

2,283

 

Equity in earnings of equity method investees

 

 

—

 

 

 

2

 

 

 

(4

)

 

 

(1

)

 

 

11

 

 

 

—

 

 

 

8

 

Interest income

 

 

11

 

 

 

4

 

 

 

9

 

 

 

97

 

 

 

112

 

 

 

(136

)

 

 

97

 

Interest and related charges

 

 

530

 

 

 

116

 

 

 

242

 

 

 

98

 

 

 

636

 

 

 

(136

)

 

 

1,486

 

Income tax expense (benefit)

 

 

482

 

 

 

114

 

 

 

163

 

 

 

20

 

 

 

(570

)

 

 

—

 

 

 

209

 

Net income from discontinued operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

183

 

 

 

533

 

 

 

—

 

 

 

716

 

Net income (loss) attributable to Dominion

   Energy

 

 

1,786

 

 

 

487

 

 

 

430

 

 

 

460

 

 

 

(1,805

)

 

 

—

 

 

 

1,358

 

Capital expenditures

 

 

3,002

 

 

 

853

 

 

 

562

 

 

 

367

 

 

 

537

 

 

 

—

 

 

 

5,321

 

(1)

Excludes liability to Atlantic Coast Pipeline.

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In 2021, Virginia Power reported after-tax net expenses of $202 million in the Corporate and Other segment, including $202 million of after-tax net expenses for specific items all of which were attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2021 primarily related to the impact of the following items:

•

A $151 million ($112 million after-tax) loss from an unbilled revenue reduction;

•

A $125 million ($93 million after-tax) net charge associated with the settlement of the 2021 Triennial Review;

•

A $77 million ($57 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process;

•

A $68 million ($50 million after-tax) charge associated with storm damage and service restoration in its service territory; and

•

A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review; partially offset by

•

A $130 million ($97 million after-tax) benefit for a change in the expected CCRO to be provided to Virginia retail electric customers under the GTSA.

In 2020, Virginia Power reported after-tax net expenses of $863 million in the Corporate and Other segment, including $915 million of after-tax net expenses for specific items all of which were attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2020 primarily related to a $751 million ($559 million after-tax) charge related to the planned early retirement of certain electric generation facilities, a $130 million ($97 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric customers under the GTSA and a $127 million ($94 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to legislation enacted in November 2020.

In 2019, Virginia Power reported after-tax net expenses of $634 million in the Corporate and Other segment, including $627 million of after-tax net expenses for specific items all of which were attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2019 primarily related to the impact of the following items:

•

A $346 million ($257 million after-tax) charge related to the early retirement of certain electric generation facilities;

•

A $198 million ($146 million after-tax) charge related to a voluntary retirement program;

•

A $160 million ($119 million after-tax) charge related to the planned early retirement of certain automated meter reading infrastructure;

•

A $135 million ($100 million after-tax) charge related to a contract termination with a non-utility generator; and

•

A $62 million ($46 million after-tax) charge related to the abandonment of a project at an electric generating facility; partially offset by

•

A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019.


 

 

The following table presents segment information pertaining to Virginia Power’s operations:

 

Year Ended December 31,

 

Dominion Energy Virginia

 

 

Corporate and Other

 

 

Consolidated

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

7,976

 

 

$

(506

)

 

$

7,470

 

Depreciation and amortization

 

 

1,296

 

 

 

68

 

 

 

1,364

 

Interest income

 

 

11

 

 

 

—

 

 

 

11

 

Interest expense (benefit) and related charges

 

 

535

 

 

 

(1

)

 

 

534

 

Income tax expense (benefit)

 

 

467

 

 

 

(70

)

 

 

397

 

Net income (loss)

 

 

1,914

 

 

 

(202

)

 

 

1,712

 

Capital expenditures

 

 

3,756

 

 

 

—

 

 

 

3,756

 

Total assets (billions)

 

 

47.9

 

 

 

—

 

 

 

47.9

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

7,763

 

 

$

—

 

 

$

7,763

 

Depreciation and amortization

 

 

1,245

 

 

 

7

 

 

 

1,252

 

Interest income

 

 

11

 

 

 

—

 

 

 

11

 

Interest expense (benefit) and related charges

 

 

524

 

 

 

(8

)

 

 

516

 

Income tax expense (benefit)

 

 

500

 

 

 

(271

)

 

 

229

 

Net income (loss)

 

 

1,884

 

 

 

(863

)

 

 

1,021

 

Capital expenditures

 

 

3,372

 

 

 

—

 

 

 

3,372

 

Total assets (billions)

 

 

43.7

 

 

 

—

 

 

 

43.7

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

8,137

 

 

$

(29

)

 

$

8,108

 

Depreciation and amortization

 

 

1,215

 

 

 

8

 

 

 

1,223

 

Interest income

 

 

11

 

 

 

—

 

 

 

11

 

Interest expense (benefit) and related charges

 

 

529

 

 

 

(5

)

 

 

524

 

Income tax expense (benefit)

 

 

481

 

 

 

(217

)

 

 

264

 

Net income (loss)

 

 

1,783

 

 

 

(634

)

 

 

1,149

 

Capital expenditures

 

 

2,981

 

 

 

—

 

 

 

2,981