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Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2024
Accounting Policies [Abstract] |
Significant Accounting Policies | Note 2. Significant Accounting Policies As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at September 30, 2024, their results of operations and changes in equity for the three and nine months ended September 30, 2024 and 2023 and their cash flows for the nine months ended September 30, 2024 and 2023. Such adjustments are normal and recurring in nature unless otherwise noted. The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from those estimates. The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors. Certain amounts in the Companies’ 2023 Consolidated Financial Statements and Notes have been reclassified to conform to the 2024 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows. Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, with the exception of the items described below. Cash, Restricted Cash and Equivalents Restricted Cash and Equivalents The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023:
|  | Cash, Restricted Cash and Equivalents at End of Period |  |  | Cash, Restricted Cash and Equivalents at Beginning of Period |
|  | September 30, 2024 |  |  | September 30, 2023 |  |  | December 31, 2023 |  |  | December 31, 2022 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Dominion Energy |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) |  | $ | 1,776 |  |  | $ | 176 |  |  | $ | 217 |  |  | $ | 153 |
Restricted cash and equivalents(2)(4) |  |  | 126 |  |  |  | 71 |  |  |  | 84 |  |  |  | 188 |
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows |  | $ | 1,902 |  |  | $ | 247 |  |  | $ | 301 |  |  | $ | 341 |
Virginia Power |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 28 |  |  | $ | 37 |  |  | $ | 90 |  |  | $ | 22 |
Restricted cash and equivalents(3)(4) |  |  | 104 |  |  |  | — |  |  |  | — |  |  |  | 2 |
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows |  | $ | 132 |  |  | $ | 37 |  |  | $ | 90 |  |  | $ | 24 |
(1) At September 30, 2023, December 31, 2023 and December 31, 2022, Dominion Energy had $39 million, $33 million and $34 million, respectively, of cash and cash equivalents included in current assets held for sale. (2) At September 30, 2023, December 31, 2023 and December 31, 2022, Dominion Energy had $4 million, $4 million and $2 million, respectively, of restricted cash and equivalents included in current assets held for sale with the remaining balances presented within other current assets in Dominion Energy’s Consolidated Balance Sheets. (3) Restricted cash and equivalents balances are presented within other current assets in Virginia Power’s Consolidated Balance Sheets. (4) Includes $100 million attributable to VIEs at September 30, 2024. Supplemental Cash Flow Information The following table provides supplemental disclosure of cash flow information related to Dominion Energy:
Nine Months Ended September 30, |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |
Significant noncash investing and financing activities:(1) |  |  |  |  |  |
Accrued capital expenditures |  | $ | 930 |  |  | $ | 884 |
Leases(2) |  |  | 183 |  |  |  | 294 |
(1) See Notes 3 and 17 for noncash financing activities related to debt assumed with closing of the East Ohio Transaction, the Questar Gas Transaction and the PSNC Transaction and the transfer of property associated with the settlement of litigation. (2) Includes $100 million and $51 million of financing leases at September 30, 2024 and 2023, respectively, and $83 million and $243 million of operating leases at September 30, 2024 and 2023, respectively. The following table provides supplemental disclosure of cash flow information related to Virginia Power:
Nine Months Ended September 30, |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |
Significant noncash investing and financing activities: |  |  |  |  |  |
Accrued capital expenditures |  | $ | 738 |  |  | $ | 646 |
Leases(1) |  |  | 156 |  |  |  | 253 |
(1) Includes $89 million and $44 million of financing leases at September 30, 2024 and 2023, respectively, and $67 million and $209 million of operating leases at September 30, 2024 and 2023, respectively. Property, Plant and Equipment Virginia Power recorded a $25 million ($18 million after-tax) charge during the third quarter of 2024 within impairment of assets and other charges in its Consolidated Statements of Income related to the write-off of early-stage development costs associated with a hydroelectric pumped storage facility that it is no longer considering constructing. Asset Retirement Obligations In May 2024, the EPA released a final rule to regulate inactive surface impoundments located at retired generating stations that contained CCR and liquids after October 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR. Dominion Energy believes that it may have inactive or closed units or areas that could be subject to the final rule at up to 19 different stations, including 12 at Virginia Power. In connection with this rule, in the second quarter of 2024, Dominion Energy and Virginia Power recorded an increase to their AROs of $1.1 billion and $420 million, respectively, with a corresponding increase of $536 million and $234 million, respectively, to regulatory assets for amounts recoverable through retail electric rates, including riders, for electric generation stations that have been retired, $505 million and $152 million, respectively, to property, plant and equipment for amounts recoverable for electric generation stations that are currently in service and $34 million to other deferred charges and other assets for amounts associated with non-jurisdictional customers at Virginia Power. In the third quarter of 2024, Dominion Energy recorded an adjustment to decrease the ARO and related property, plant and equipment by $215 million to reflect updated information concerning one facility. The actual AROs related to CCRs may vary substantially from the estimates used to record the obligation. New Accounting Standards Climate-Related Disclosures In March 2024, the SEC issued guidance for climate-related disclosures. The guidance requires disclosure of the financial statement impacts of severe weather events and other natural conditions, including amounts capitalized or expensed as well as any associated recoveries. In addition, the guidance requires disclosure of amounts related to renewable energy credits or carbon offsets if utilized as a material component of plans to achieve climate-related targets or goals. This guidance, which is currently subject to a stay issued by the SEC, would be effective for the fiscal year beginning January 1, 2025. The Companies expect this guidance to only impact their disclosures with no impacts to their results of operations, cash flows or financial condition.

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