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Investments | 12 Months Ended
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Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | NOTE 9. INVESTMENTS Dominion Energy Equity and Debt Securities Short-Term Deposit In May 2022, Dominion Energy entered into an agreement with a financial institution and committed to make a short-term deposit of at least $1.6 billion but not more than $2.0 billion to be posted as collateral to secure its $1.6 billion redemption obligation of the Series A Preferred Stock as described in Note 19. In May 2022, Dominion Energy funded the short-term deposit in the amount of $2.0 billion, which earned interest income at an annual rate of 1.75% through its maturity in September 2022. Rabbi Trust Securities Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $119 million and $111 million at December 31, 2023 and 2022, respectively. Decommissioning Trust Securities The Companies hold equity and fixed income securities and cash equivalents, and Dominion Energy also holds insurance contracts, in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. The Companies’ decommissioning trust funds are summarized below:
|  |  | Dominion Energy |  |  |  |  | Virginia Power |
| Amortized Cost |  | Total Unrealized Gains |  | Total Unrealized Losses |  |  | Allowance for Credit Losses |  | Fair Value |  |  | Amortized Cost |  | Total Unrealized Gains |  | Total Unrealized Losses |  |  | Allowance for Credit Losses |  | Fair Value |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. | $ | 1,276 |  | $ | 3,270 |  | $ | (10 | ) |  |  |  | $ | 4,536 |  |  | $ | 759 |  | $ | 1,706 |  | $ | (10 | ) |  |  |  | $ | 2,455 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  | 508 |  |  | 10 |  |  | (27 | ) |  | $ | — |  |  | 491 |  |  |  | 292 |  |  | 3 |  |  | (21 | ) |  | $ | — |  |  | 274 |
Government securities |  | 1,426 |  |  | 28 |  |  | (24 | ) |  |  | — |  |  | 1,430 |  |  |  | 811 |  |  | 17 |  |  | (12 | ) |  |  | — |  |  | 816 |
Common/ collective trust funds |  | 161 |  |  | — |  |  | — |  |  |  | — |  |  | 161 |  |  |  | 124 |  |  | — |  |  | — |  |  |  | — |  |  | 124 |
Insurance contracts |  | 244 |  |  | — |  |  | — |  |  |  |  |  | 244 |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents and other(3) |  | 84 |  |  | — |  |  | — |  |  |  | — |  |  | 84 |  |  |  | 47 |  |  | — |  |  | — |  |  |  | — |  |  | 47 |
Total | $ | 3,699 |  | $ | 3,308 |  | $ | (61 | ) | (4) | $ | — |  | $ | 6,946 |  |  | $ | 2,033 |  | $ | 1,726 |  | $ | (43 | ) | (4) | $ | — |  | $ | 3,716 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. | $ | 1,378 |  | $ | 2,501 |  | $ | (46 | ) |  |  |  | $ | 3,833 |  |  | $ | 858 |  | $ | 1,304 |  | $ | (35 | ) |  |  |  | $ | 2,127 |
Fixed income securities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  | 640 |  |  | 1 |  |  | (65 | ) |  | $ | — |  |  | 576 |  |  |  | 406 |  |  | 1 |  |  | (47 | ) |  | $ | — |  |  | 360 |
Government securities |  | 1,252 |  |  | 4 |  |  | (70 | ) |  |  | — |  |  | 1,186 |  |  |  | 664 |  |  | 2 |  |  | (35 | ) |  |  | — |  |  | 631 |
Common/ collective trust funds |  | 98 |  |  | — |  |  | — |  |  |  | — |  |  | 98 |  |  |  | 61 |  |  | — |  |  | — |  |  |  | — |  |  | 61 |
Insurance contracts |  | 221 |  |  | — |  |  | — |  |  |  |  |  | 221 |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents and other(3) |  | 43 |  |  | — |  |  | — |  |  |  | — |  |  | 43 |  |  |  | 23 |  |  | — |  |  | — |  |  |  | — |  |  | 23 |
Total | $ | 3,632 |  | $ | 2,506 |  | $ | (181 | ) | (4) | $ | — |  | $ | 5,957 |  |  | $ | 2,012 |  | $ | 1,307 |  | $ | (117 | ) | (4) | $ | — |  | $ | 3,202 |
(1) Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2. (2) Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2. Changes in allowance for credit losses are included in other income. (3) Dominion Energy includes pending sales of securities of $49 million and $42 million at December 31, 2023 and 2022, respectively. Virginia Power includes pending sales of securities of $27 million and $24 million at December 31, 2023 and 2022, respectively. (4) Dominion Energy’s fair value of securities in an unrealized loss position was $764 million and $1.6 billion at December 31, 2023 and 2022, respectively. Virginia Power’s fair value of securities in an unrealized loss position was $384 million and $946 million at December 31, 2023 and 2022, respectively. The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy and Virginia Power’s nuclear decommissioning trusts is summarized below:
|  | Dominion Energy |  |  | Virginia Power |
Year Ended December 31, |  | 2023 |  | 2022 |  | 2021 |  |  | 2023 |  | 2022 |  | 2021 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net gains (losses) recognized during the period |  | $ | 811 |  | $ | (848 | ) | $ | 1,072 |  |  | $ | 420 |  | $ | (436 | ) | $ | 552 |
Less: Net (gains) losses recognized during the period on securities sold during the period |  |  | (7 | ) |  | 8 |  |  | (346 | ) |  |  | 7 |  |  | (7 | ) |  | (190 | )
Unrealized gains (losses) recognized during the period on securities still held at period end(1) |  | $ | 804 |  | $ | (840 | ) | $ | 726 |  |  | $ | 427 |  | $ | (443 | ) | $ | 362 |
(1) Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2. The fair value of Dominion Energy and Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at December 31, 2023 by contractual maturity is as follows:
|  | Dominion Energy |  |  | Virginia Power |
(millions) |  |  |  |  |  |
Due in one year or less |  | $ | 185 |  |  | $ | 140 |
Due after one year through five years |  |  | 509 |  |  |  | 250 |
Due after five years through ten years |  |  | 407 |  |  |  | 236 |
Due after ten years |  |  | 981 |  |  |  | 588 |
Total |  | $ | 2,082 |  |  | $ | 1,214 |
Presented below is selected information regarding Dominion Energy and Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
|  | Dominion Energy |  |  | Virginia Power |
Year Ended December 31, |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2023 |  |  | 2022 |  |  | 2021 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 2,966 |  |  | $ | 3,282 |  |  | $ | 3,985 |  |  | $ | 1,876 |  |  | $ | 1,538 |  |  | $ | 1,791 |
Realized gains(1) |  |  | 92 |  |  |  | 143 |  |  |  | 441 |  |  |  | 50 |  |  |  | 48 |  |  |  | 228 |
Realized losses(1) |  |  | 169 |  |  |  | 296 |  |  |  | 91 |  |  |  | 99 |  |  |  | 107 |  |  |  | 35 |
(1) Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability as discussed in Note 2. EQUITY METHOD INVESTMENTS Investments that Dominion Energy accounts for under the equity method of accounting are as follows:
|  |  |  |  | Investment |  |  |
Company |  | Ownership% |  |  | Balance |  |  | Description
As of December 31, |  |  |  |  | 2023 |  |  | 2022 |  |  |
(millions) |  |  |  |  |  |  |  |  |  |  |
Cove Point |  |  | 50 | % | (1) | $ | — |  |  | $ | 2,673 |  | (1) | LNG import/export and storage facility
Atlantic Coast Pipeline |  |  | 53 | % |  |  | — |  | (2) |  | — |  | (2) | Gas transmission system
Align RNG |  |  | 50 | % |  |  | 80 |  |  |  | 103 |  |  | Renewable natural gas
Dominion Privatization |  |  | 50 | % |  |  | 172 |  |  |  | 176 |  |  | Military electric and gas
Other |  | various |  |  |  | 59 |  | (3) |  | 60 |  | (3) |
Total |  |  |  |  | $ | 311 |  |  | $ | 3,012 |  |  |
(1) Dominion Energy’s sold its remaining 50% noncontrolling limited partnership interest in September 2023. See discussion below. Presented in noncurrent assets held for sale in Dominion Energy’s Consolidated Balance Sheets at December 31, 2022. (2) Dominion Energy’s Consolidated Balance Sheets include a liability associated with its investment in Atlantic Coast Pipeline of $4 million and $114 million at December 31, 2023 and 2022, respectively, presented in other current liabilities. See discussion below for additional information. (3) Dominion Energy’s Consolidated Balance Sheets includes balances presented in current assets held for sale of $43 million and noncurrent assets held for sale of $43 million, at December 31, 2023 and 2022, respectively. Dominion Energy recorded equity earnings (losses) on its investments of $(26) million, $21 million and $15 million for the years ended December 31, 2023, 2022 and 2021, respectively, in other income (expense) in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings of $235 million, $271 million and $244 million for the years ended December 31, 2023, 2022 and 2021, respectively, in discontinued operations including amounts related to its investments in Cove Point (through September 2023) and Atlantic Coast Pipeline discussed below. Dominion Energy received distributions from these investments of $245 million, $355 million and $332 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $18 million and $223 million, respectively. At December 31, 2023, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $3 million attributable to capitalized interest. At December 31, 2022, these differences are comprised of $9 million of equity method goodwill that is not being amortized, $215 million basis difference from Dominion Energy’s investment in Cove Point, which was being amortized over the useful lives of the underlying assets and a net $(1) million basis difference primarily attributable to capitalized interest. Cove Point Prior to the completion of the sale to BHE in September 2023, Dominion held a 50% noncontrolling limited partnership interest in Cove Point which was accounted for as an equity method investment as Dominion Energy had the ability to exercise significant influence over, but not control, Cove Point. Dominion Energy recorded distributions from Cove Point of $227 million, $344 million and $300 million for the years ended December 31, 2023, 2022 and 2021, respectively. Dominion Energy made no contributions to Cove Point for the years ended December 31, 2023, 2022 or 2021. In June 2023, Dominion Energy entered into an agreement with Cove Point for transportation and storage services at market rates for a 20-year period commencing August 2023. In July 2023, Dominion Energy entered into an agreement to sell its 50% noncontrolling limited partnership interest in Cove Point to BHE for cash consideration of $3.3 billion which closed in September 2023 after all customary closing and regulatory conditions were satisfied, including clearance under the Hart-Scott-Rodino Act and approval from the DOE. The sale is treated as an asset sale for tax purposes. In addition, Dominion Energy received proceeds of $199 million from the settlement of related interest rate derivatives. In connection with closing, Dominion Energy utilized proceeds, as required, to repay DECP Holding’s term loan secured by its noncontrolling interest in Cove Point, which had an outstanding balance of $2.2 billion, and $750 million of outstanding borrowings under Dominion Energy’s two $600 million 364-day term loan facilities entered in July 2023. See Note 17 for additional information on these facilities. Dominion Energy recorded a gain on the sale of its noncontrolling interest in Cove Point of $626 million ($348 million after-tax) within discontinued operations in its Consolidated Statements of Income for the year ended December 31, 2023. In September 2023, as a result of Dominion Energy entering agreements for the East Ohio, PSNC and Questar Gas Transactions, Dominion Energy’s 50% noncontrolling limited partnership interest in Cove Point also met the requirements to be presented as discontinued operations and held for sale (through the date of disposal) as both disposition activities were executed in connection with Dominion Energy’s comprehensive business review announced in November 2022. In addition, interest expense associated with DECP Holding’s term loan secured by its noncontrolling interest in Cove Point and related interest rate derivatives have been classified as discontinued operations. As a result, the previously reported amounts have been recast to reflect this presentation. Amounts presented in discontinued operations within Dominion Energy's Consolidated Statements of Income for the year ended December 31, 2023 include $218 million for earnings on equity method investees, $120 million of interest expense and $31 million of income tax expense, respectively, in addition to the gain on sale and associated tax expense disclosed above. Such amounts for the years ended December 31, 2022 and 2021 were $277 million and $259 million for earnings on equity method investees, $(160) million and $12 million for interest expense (benefit) and $92 million and $60 million of income tax expense, respectively. Dominion Energy's Consolidated Balance Sheets at December 31, 2022 includes $2.7 billion within noncurrent assets held for sale for Dominion Energy's 50% noncontrolling partnership interest in Cove Point. All activity relating to Dominion Energy’s noncontrolling interest in Cove Point is recorded within the Corporate and Other segment. Atlantic Coast Pipeline In September 2014, Dominion Energy, along with Duke Energy and Southern, announced the formation of the Atlantic Coast Pipeline for the purpose of constructing an approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina. Following Dominion Energy’s acquisition from Southern of its 5% interest in Atlantic Coast Pipeline in 2020, Dominion Energy owns a 53% noncontrolling membership interest in Atlantic Coast Pipeline with Duke Energy owning the remaining interest. Atlantic Coast Pipeline continues to be accounted for as an equity method investment as the power to direct the activities most significant to Atlantic Coast Pipeline is shared with Duke Energy. As a result, Dominion Energy has the ability to exercise significant influence, but not control, over the investee. In July 2020, as a result of ongoing permitting delays, growing legal uncertainties and the need to incur significant capital expenditures to maintain project timing before such uncertainties could be resolved, Dominion Energy and Duke Energy announced the cancellation of the Atlantic Coast Pipeline Project. Dominion Energy recorded earnings (losses) on equity method investees of $15 million ($11 million after-tax), $(7) million ($(5) million after-tax) and $(20) million ($(14) million after-tax) for the years ended December 31, 2023, 2022 and 2021, respectively. In connection with Dominion Energy’s decision to sell substantially all of its gas transmission and storage operations, Dominion Energy has reflected the results of its equity method investment in Atlantic Coast Pipeline as discontinued operations in its Consolidated Statements of Income. As a result of its share of equity losses exceeding its investment, Dominion Energy’s Consolidated Balance Sheets at December 31, 2023 and 2022 include a liability of $4 million and $114 million, respectively, presented in other current liabilities and reflecting Dominion Energy’s obligations to Atlantic Coast Pipeline related to AROs. In October 2017, Dominion Energy entered into a guarantee agreement to support a portion of Atlantic Coast Pipeline’s obligation under a $3.4 billion revolving credit facility with a stated maturity date of October 2021. In July 2020, the capacity of the revolving credit facility was reduced from $3.4 billion to $1.9 billion. In February 2021, Atlantic Coast Pipeline repaid the outstanding borrowed amounts and terminated its revolving credit facility. Concurrently, Dominion Energy’s related guarantee agreement to support its portion of the Atlantic Coast Pipeline’s borrowings was also terminated. Dominion Energy recorded contributions of $95 million, $3 million and $965 million during the years ended December 31, 2023, 2022 and 2021, respectively, to Atlantic Coast Pipeline. Dominion Energy expects to incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows. All activity relating to Atlantic Coast Pipeline is recorded within the Corporate and Other segment. Align RNG In the fourth quarter of 2023, Dominion Energy reflected its share of an impairment of certain property, plant and equipment at Align RNG totaling $35 million ($26 million after-tax) in other income (expense) in its Consolidated Statements of Income. All activity related to Align RNG is reflected within Contracted Energy. Dominion Privatization In February 2022, Dominion Energy entered into an agreement to form Dominion Privatization, a partnership with Patriot. Dominion Privatization, through its wholly-owned subsidiaries, maintains and operates electric and gas distribution infrastructure under service concession arrangements with certain U.S. military installations. Under the agreement, Dominion Energy contributed its existing privatization operations, excluding contracts held by DESC, and Patriot contributed cash. The initial contribution, consisting of privatization operations in South Carolina, Texas and Pennsylvania, closed in March 2022 for which Dominion Energy received total consideration of $120 million, subject to customary closing adjustments, comprised of $60 million in cash proceeds and a 50% noncontrolling ownership interest in Dominion Privatization with an initial fair value of $60 million, estimated using the market approach. This is considered a Level 2 fair value measurement given that it is based on the agreed-upon sales price. In the first quarter of 2022, Dominion Energy recorded a gain of $23 million ($16 million after-tax), presented in losses (gains) on sales of assets in its Consolidated Statements of Income. Dominion Energy’s 50% noncontrolling ownership interest in Dominion Privatization is accounted for as an equity method investment as Dominion Energy has the ability to exercise significant influence, but not control, over the investee. The second contribution, consisting of privatization operations in Virginia, closed in December 2022 for which Dominion Energy received total consideration of $215 million, subject to customary closing adjustments, comprised of $108 million in cash proceeds and retention of its 50% noncontrolling ownership interest valued at $107 million using the market approach. This is considered a Level 2 fair value measurement given that it is based on the agreed-upon sales price. In the fourth quarter of 2022, Dominion Energy recorded a gain of $133 million ($99 million after-tax), presented in losses (gains) on sales of assets in its Consolidated Statements of Income. In February 2024, Dominion Energy received a distribution of $126 million from Dominion Privatization, which it expects to account for as a return of an investment. All activity related to Dominion Privatization is reflected within the Corporate and Other segment. Wrangler In September 2019, Dominion Energy entered into an agreement to form Wrangler, a partnership with Interstate Gas Supply, Inc. Wrangler operated a nonregulated natural gas retail energy marketing business with Dominion Energy contributing its nonregulated retail energy marketing operations and Interstate Gas Supply, Inc. contributing cash. Wrangler was accounted for as an equity method investment as Dominion Energy had the ability to exercise significant influence, but not control, over the investee. After an initial contribution of assets in 2019 for which Dominion Energy received cash and a 20% noncontrolling ownership interest in Wrangler, Dominion Energy completed a second contribution in 2020 of certain nonregulated natural gas retail energy contracts for which Dominion Energy received cash and retained a 20% noncontrolling ownership interest in Wrangler. The final contribution, consisting of Dominion Energy’s remaining nonregulated natural gas retail energy marketing operations, closed in December 2021 for which Dominion Energy received $127 million in cash proceeds and retained a 20% noncontrolling ownership interest in Wrangler with an initial fair value of $23 million estimated using the market approach. This valuation is considered a Level 2 fair value measurement given that it is based on the agreed-upon sales price. In connection with the transaction, Dominion Energy recorded a gain of $87 million, net of a $14 million write-off of goodwill, presented in losses (gains) on sales of assets, and an associated tax expense of $32 million, in the Consolidated Statements of Income for the year ended December 31, 2021. Subsequently in December 2021, Dominion Energy sold 5% of its noncontrolling ownership interest in Wrangler to Interstate Gas Supply, Inc. for $33 million and recorded a gain of $10 million, presented in other income (expense), and an associated tax expense of $3 million, in the Consolidated Statements of Income for the year ended December 31, 2021. In March 2022, Dominion Energy sold its remaining 15% noncontrolling partnership interest in Wrangler to Interstate Gas Supply, Inc. for cash consideration of $85 million. Dominion Energy recognized a gain of $11 million ($8 million after-tax), included in other income, in its Consolidated Statements of Income for the year ended December 31, 2022. All activity relating to Wrangler is recorded within the Corporate and Other segment.

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