XML 34 R21.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 8. Fair Value Measurements The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. See Note 9 in this report for additional information about the Companies’ derivatives and hedge accounting activities. The Companies enter into certain physical and financial forwards, futures and options, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical and financial forwards and futures contracts. An option model is used to value Level 3 physical options. The discounted cash flow model for forwards and futures calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. The inputs into the option models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices and volumes. For Level 3 fair value measurements, certain forward market prices and implied price volatilities are considered unobservable. The following table presents the Companies’ quantitative information about Level 3 fair value measurements at March 31, 2024. 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) | $ | 5 |  | (2)-2 | — |  | $ | 5 |  | (2)-2 | —
FTRs | Discounted cash flow | Market price (per MWh) | (3) |  | 2 |  | (1)-3 | 1 |  |  | 2 |  | (1)-3 | 1
Electricity | Discounted cash flow | Market price (per MWh) | (3) |  | 209 |  | 24-111 | 51 |  |  |  |  |
Physical options: |  |  |  |  |  |  |  |  |  |  |
Natural gas(2) | Option model | Market price (per Dth) | (3) |  | 49 |  | 1-7 | 3 |  |  | 23 |  | 1-7 | 3
|  | Price volatility | (4) |  |  | 10%-75% | 46% |  |  |  | 23%-73% | 52%
Total assets |  |  |  | $ | 265 |  |  |  |  | $ | 30 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Physical and financial forwards: |  |  |  |  |  |  |  |  |  |  |
Natural gas(2) | Discounted cash flow | Market price (per Dth) | (3) | $ | 4 |  | (2)-0 | (1) |  | $ | 4 |  | (2)-0 | (1)
FTRs | Discounted cash flow | Market price (per MWh) | (3) |  | 64 |  | (1)-4 | 2 |  |  | 64 |  | (1)-4 | 2
Electricity | Discounted cash flow | Market price (per MWh) | (3) |  | 7 |  | 24-115 | 63 |  |  |  |  |
Total liabilities |  |  | $ | 75 |  |  |  |  | $ | 68 |  |  |
(1) Averages weighted by volume. (2) Includes basis. (3) Represents market prices beyond defined terms for Levels 1 and 2. (4) Represents volatilities unrepresented in published markets. 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)
Nonrecurring Fair Value Measurements See Note 11 for information regarding an impairment charge recorded by Dominion Energy associated with a corporate office building. Recurring Fair Value Measurements 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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity |  | $ | — |  |  | $ | 281 |  |  | $ | 265 |  |  | $ | 546 |  |  | $ | — |  |  | $ | 74 |  |  | $ | 30 |  |  | $ | 104 |
Interest rate |  |  | — |  |  |  | 895 |  |  |  | — |  |  |  | 895 |  |  |  | — |  |  |  | 172 |  |  |  | — |  |  |  | 172 |
Foreign currency exchange rate |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | 3 |
Investments(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 4,970 |  |  |  | — |  |  |  | — |  |  |  | 4,970 |  |  |  | 2,568 |  |  |  | — |  |  |  | — |  |  |  | 2,568 |
Fixed income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | — |  |  |  | 552 |  |  |  | — |  |  |  | 552 |  |  |  | — |  |  |  | 300 |  |  |  | — |  |  |  | 300 |
Government securities |  |  | 218 |  |  |  | 1,200 |  |  |  | — |  |  |  | 1,418 |  |  |  | 129 |  |  |  | 667 |  |  |  | — |  |  |  | 796 |
Other |  |  | 222 |  |  |  | — |  |  |  | — |  |  |  | 222 |  |  |  | 176 |  |  |  | — |  |  |  | — |  |  |  | 176 |
Cash equivalents and other |  |  | 2 |  |  |  | 3 |  |  |  | — |  |  |  | 5 |  |  |  | 2 |  |  |  | 1 |  |  |  | — |  |  |  | 3 |
Total assets |  | $ | 5,412 |  |  | $ | 2,934 |  |  | $ | 265 |  |  | $ | 8,611 |  |  | $ | 2,875 |  |  | $ | 1,217 |  |  | $ | 30 |  |  | $ | 4,122 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity |  | $ | — |  |  | $ | 156 |  |  | $ | 75 |  |  | $ | 231 |  |  | $ | — |  |  | $ | 92 |  |  | $ | 68 |  |  | $ | 160 |
Interest rate |  |  | — |  |  |  | 483 |  |  |  | — |  |  |  | 483 |  |  |  | — |  |  |  | 21 |  |  |  | — |  |  |  | 21 |
Foreign currency exchange rate |  |  | — |  |  |  | 108 |  |  |  | — |  |  |  | 108 |  |  |  | — |  |  |  | 108 |  |  |  | — |  |  |  | 108 |
Total liabilities |  | $ | — |  |  | $ | 747 |  |  | $ | 75 |  |  | $ | 822 |  |  | $ | — |  |  | $ | 221 |  |  | $ | 68 |  |  | $ | 289 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity |  | $ | — |  |  | $ | 325 |  |  | $ | 225 |  |  | $ | 550 |  |  | $ | — |  |  | $ | 96 |  |  | $ | 21 |  |  | $ | 117 |
Interest rate |  |  | — |  |  |  | 800 |  |  |  | — |  |  |  | 800 |  |  |  | — |  |  |  | 181 |  |  |  | — |  |  |  | 181 |
Investments(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 4,527 |  |  |  | — |  |  |  | — |  |  |  | 4,527 |  |  |  | 2,362 |  |  |  | — |  |  |  | — |  |  |  | 2,362 |
Fixed income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | — |  |  |  | 500 |  |  |  | — |  |  |  | 500 |  |  |  | — |  |  |  | 274 |  |  |  | — |  |  |  | 274 |
Government securities |  |  | 219 |  |  |  | 1,238 |  |  |  | — |  |  |  | 1,457 |  |  |  | 129 |  |  |  | 687 |  |  |  | — |  |  |  | 816 |
Cash equivalents and other |  |  | 31 |  |  |  | — |  |  |  | — |  |  |  | 31 |  |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | 20 |
Total assets |  | $ | 4,777 |  |  | $ | 2,863 |  |  | $ | 225 |  |  | $ | 7,865 |  |  | $ | 2,511 |  |  | $ | 1,238 |  |  | $ | 21 |  |  | $ | 3,770 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity |  | $ | — |  |  | $ | 160 |  |  | $ | 139 |  |  | $ | 299 |  |  | $ | — |  |  | $ | 95 |  |  | $ | 137 |  |  | $ | 232 |
Interest rate |  |  | — |  |  |  | 359 |  |  |  | — |  |  |  | 359 |  |  |  | — |  |  |  | 45 |  |  |  | — |  |  |  | 45 |
Foreign currency exchange rate |  |  | — |  |  |  | 39 |  |  |  | — |  |  |  | 39 |  |  |  | — |  |  |  | 39 |  |  |  | — |  |  |  | 39 |
Total liabilities |  | $ | — |  |  | $ | 558 |  |  | $ | 139 |  |  | $ | 697 |  |  | $ | — |  |  | $ | 179 |  |  | $ | 137 |  |  | $ | 316 |
(1) Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $294 million and $457 million of assets at Dominion Energy, inclusive of $94 million and $217 million at Virginia Power, at March 31, 2024 and December 31, 2023, 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. 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 |
Period Ended March 31, |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 86 |  |  | $ | 422 |  |  | $ | (116 | ) |  | $ | 221 |
Total realized and unrealized gains (losses): |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings: |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  |  | (8 | ) |  |  | — |  |  |  |  |  |  |
Electric fuel and other energy-related purchases |  |  | (121 | ) |  |  | (51 | ) |  |  | (119 | ) |  |  | (52 | )
Discontinued operations |  |  | (1 | ) |  |  | — |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 131 |  |  |  | (216 | ) |  |  | 77 |  |  |  | (166 | )
Settlements |  |  | 76 |  |  |  | 35 |  |  |  | 100 |  |  |  | 36 |
Purchases |  |  | 27 |  |  |  | 16 |  |  |  | 20 |  |  |  | 16 |
Ending balance |  | $ | 190 |  |  | $ | 206 |  |  | $ | (38 | ) |  | $ | 55 |
Dominion Energy had $(8) million and less than $1 million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2024 and 2023, respectively. Virginia Power had no unrealized gains or losses for the three months ended March 31, 2024 and 2023. Fair Value of Financial Instruments Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these 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) |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt(2) |  | $ | 36,529 |  |  | $ | 34,197 |  |  | $ | 18,032 |  |  | $ | 16,665 |
Supplemental credit facility borrowings |  |  | 450 |  |  |  | 450 |  |  |  |  |  |  |
Securitization bonds(3) |  |  | 1,282 |  |  |  | 1,280 |  |  |  | 1,282 |  |  |  | 1,280 |
Junior subordinated notes(2) |  |  | 1,388 |  |  |  | 1,389 |  |  |  |  |  |  |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt(2) |  | $ | 42,526 |  |  | $ | 40,539 |  |  | $ | 17,392 |  |  | $ | 16,418 |
Supplemental credit facility borrowings |  |  | 450 |  |  |  | 450 |  |  |  |  |  |  |
Junior subordinated notes(2) |  |  | 1,388 |  |  |  | 1,374 |  |  |  |  |  |  |
(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 included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at March 31, 2024 and December 31, 2023. Additionally, Dominion Energy carrying amounts include portions classified as current liabilities held for sale at both March 31, 2024 and December 31, 2023. (3) Carrying amount includes current portions included in securities due within one year.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration