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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Inputs, Assets, Quantitative Information

The following table presents the Companies' quantitative information about Level 3 fair value measurements at September 30, 2023. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.

				Dominion Energy						Virginia Power
	Valuation Techniques	Unobservable Input		Fair Value (millions)			Range	Weighted Average(1)		Fair Value (millions)			Range	Weighted Average(1)
Assets
Physical and financial forwards:
Natural gas(2)	Discounted    cash flow	Market price    (per Dth)	(3)	$	1		(2)-3	(1)		$	1		(2)-3	(1)
FTRs	Discounted    cash flow	Market price    (per MWh)	(3)		5		(1)-11	2			5		(1)-11	2
Electricity	Discounted    cash flow	Market price    (per MWh)	(3)		143		25-136	48
Physical options:
Natural gas(2)	Option model	Market price    (per Dth)	(3)		11		1-8	4			10		1-8	4
		Price volatility	(4)				13%-72%	52%					13%-72%	54%
Total assets				$	160					$	16
Liabilities
Physical and financial forwards:
Natural gas(2)	Discounted    cash flow	Market price    (per Dth)	(3)	$	14		(2)-0	(1)		$	14		(2)-0	(1)
FTRs	Discounted    cash flow	Market price    (per MWh)	(3)		181		(2)-11	3			181		(2)-11	3
Electricity	Discounted    cash flow	Market price    (per MWh)	(3)		14		34-149	69
Total    liabilities				$	209					$	195

(1)Averages weighted by volume.

(2)Includes basis.

(3)Represents market prices beyond defined terms for Levels 1 and 2.

Represents volatilities unrepresented in published markets.

Fair Value, Option, Qualitative Disclosures

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

Significant Unobservable Inputs		Position		Change to Input		Impact on Fair Value Measurement
Market price		Buy		Increase (decrease)		Gain (loss)
Market price		Sell		Increase (decrease)		Loss (gain)
Price volatility		Buy		Increase (decrease)		Gain (loss)
Price volatility		Sell		Increase (decrease)		Loss (gain)

Fair Value, by Balance Sheet Grouping

The following table presents the Companies' assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

		Dominion Energy																Virginia Power
		Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
(millions)
September 30, 2023
Assets
Derivatives:
Commodity		$	—			$	176			$	160			$	336			$	—			$	60			$	16			$	76
Interest rate			—				1,301				—				1,301				—				389				—				389
Foreign currency exchange rate			—				9				—				9				—				9				—				9
Investments(1):
Equity securities:
U.S.			4,218				—				—				4,218				2,238				—				—				2,238
Fixed income:
Corporate debt instruments			—				501				—				501				—				285				—				285
Government securities			166				1,109				—				1,275				88				600				—				688
Cash equivalents and other			43				—				—				43				23				—				—				23
Total assets		$	4,427			$	3,096			$	160			$	7,683			$	2,349			$	1,343			$	16			$	3,708
Liabilities
Derivatives:
Commodity		$	—			$	279			$	209			$	488			$	—			$	113			$	195			$	308
Interest rate			—				428				—				428				—				—				—				—
Foreign currency exchange rate			—				162				—				162				—				162				—				162
Total liabilities		$	—			$	869			$	209			$	1,078			$	—			$	275			$	195			$	470
December 31, 2022
Assets
Derivatives:
Commodity		$	—			$	332			$	437			$	769			$	—			$	32			$	236			$	268
Interest rate			—				1,407				—				1,407				—				614				—				614
Investments(1):
Equity securities:
U.S.			3,810				—				—				3,810				2,028				—				—				2,028
Fixed income:
Corporate debt instruments			—				576				—				576				—				360				—				360
Government securities			161				1,059				—				1,220				90				542				—				632
Total assets		$	3,971			$	3,374			$	437			$	7,782			$	2,118			$	1,548			$	236			$	3,902
Liabilities
Derivatives:
Commodity		$	—			$	911			$	15			$	926			$	—			$	333			$	15			$	348
Interest rate			—				377				—				377				—				7				—				7
Foreign currency exchange rate			—				101				—				101				—				101				—				101
Total liabilities		$	—			$	1,389			$	15			$	1,404			$	—			$	441			$	15			$	456

(1)Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $370 million and $404 million of assets at Dominion Energy, inclusive of $147 million and $161 million at Virginia Power, at September 30, 2023 and December 31, 2022, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in the Companies' assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

		Dominion Energy																Virginia Power
		Quarter-to-Date								Year-to-Date								Quarter-to-Date								Year-to-Date
Period Ended September 30,		2023				2022				2023				2022				2023				2022				2023				2022
(millions)
Beginning balance		$	134			$	480			$	422			$	222			$	(3	)		$	245			$	221			$	102
Total realized and unrealized gains     (losses):
Included in earnings:
Operating revenue			(10	)			—				(8	)			—
Electric fuel and other energy- related purchases			(103	)			181				(191	)			346				(107	)			142				(195	)			293
Discontinued operations			1				—				1				—
Included in regulatory assets/     liabilities			(174	)			2				(463	)			243				(176	)			26				(400	)			152
Settlements			103				(181	)			174				(346	)			107				(142	)			179				(293	)
Purchases			—				—				16				17				—				—				16				17
Ending balance		$	(49	)		$	482			$	(49	)		$	482			$	(179	)		$	271			$	(179	)		$	271

Dominion Energy had $(10) million and $(8) million of unrealized losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and nine months ended September 30, 2023, respectively, and no unrealized gains or losses for the three and nine months ended September 30, 2022. Virginia Power had no unrealized gains or losses for the three and nine months ended September 30, 2023 and 2022.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

For the Companies' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

		Dominion Energy								Virginia Power
		Carrying Amount				Estimated Fair Value(1)				Carrying Amount				Estimated Fair Value(1)
(millions)
September 30, 2023
Long-term debt(2)		$	39,854			$	35,171			$	17,390			$	15,084
Supplemental credit facility borrowings			900				900
Junior subordinated notes(2)			1,388				1,361
December 31, 2022
Long-term debt(2)		$	39,680			$	36,426			$	15,616			$	14,067
Supplemental credit facility borrowings			450				450
Junior subordinated notes(2)			1,387				1,340

(1)Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)Carrying amount includes current portions presented in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. Additionally, the Dominion Energy carrying amount includes portions classified as held for sale presented in current liabilities held for sale at September 30, 2023 and presented in current liabilities held for sale and noncurrent liabilities held for sale at December 31, 2022.

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