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Acquisitions and Dispositions | 12 Months Ended
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Dec. 31, 2024
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Acquisitions and Dispositions | NOTE 3. ACQUISITIONS AND DISPOSITIONS Business Review Dispositions Sale of East Ohio In September 2023, Dominion Energy entered into an agreement with Enbridge for the East Ohio Transaction, which included the sale of East Ohio and was valued at approximately $6.6 billion, consisting of a purchase price of approximately $4.3 billion in cash and approximately $2.3 billion of assumed indebtedness. The sale closed in March 2024 after all customary closing and regulatory conditions were satisfied, including clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS and FCC. Dominion Energy utilized the after-tax proceeds, as required, to repay outstanding borrowings under 364-day term loan facilities. See Note 17 for additional information. The purchase price was subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. The transaction was structured as a stock sale for tax purposes. In October 2023, as required under the sale agreement, Dominion Energy filed a notice with the Ohio Commission. The internal reorganization in connection with the East Ohio Transaction was subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024. Dominion Energy retained the pension and other postretirement benefit plan assets and obligations, including related income tax and other deferred balances, associated with retiree participants in both East Ohio’s union pension and other postretirement benefit plans and retiree participants of the sale entities in the Dominion Energy Pension Plan and the Dominion Energy Retiree Health and Welfare Plan. Dominion Energy recognized a pre-tax loss of $97 million ($109 million after-tax loss) upon the closing of the transaction, including the write-off of $1.5 billion of goodwill which was not deductible for tax purposes and including the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $29 million to reflect the recognition of deferred taxes on the outside basis of East Ohio’s stock upon meeting the classification as held for sale. These deferred taxes reversed in the first quarter of 2024 upon closing of the sale and became a component of current income tax expense on the loss on sale disclosed above. See Note 5 for additional information. At the closing of the East Ohio Transaction, Dominion Energy and Enbridge entered into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of East Ohio for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy. Sale of PSNC In September 2023, Dominion Energy entered into an agreement with Enbridge for the PSNC Transaction, which included the sale of PSNC. The sale closed in September 2024 after all customary closing and regulatory conditions were satisfied, including clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and North Carolina Commission. At closing, the transaction was valued at $3.3 billion, consisting of a purchase price of $2.0 billion in cash and $1.3 billion of assumed indebtedness. The purchase price is subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. The transaction was structured as a stock sale for tax purposes. The internal reorganization in connection with the PSNC Transaction was subject to approval by the North Carolina Commission. Dominion Energy filed for such approval in September 2023 which was received in November 2023. The internal reorganization was completed in December 2023. Dominion Energy retained the entirety of the assets and obligations, including related income tax and other deferred balances, of the pension and other postretirement employee benefit plans associated with the operations included in the transaction and relating to services provided through closing. Dominion Energy recognized a pre-tax loss of $35 million ($31 million after-tax loss) upon the closing of the transaction, including the write-off of $0.7 billion of goodwill which is not deductible for tax purposes and including the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $334 million to reflect the deferred taxes on the outside basis of PSNC’s stock upon meeting the classification as held for sale. Dominion Energy recorded an additional charge of $16 million to adjust these deferred taxes to recorded balances as of June 30, 2024. These deferred taxes reversed in the third quarter of 2024 upon closing of the sale and became a component of current income tax expense on the pre-tax loss on sale disclosed above. See Note 5 for additional information. At the closing of the PSNC Transaction, Dominion Energy and Enbridge entered into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of PSNC for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy. Sale of Questar Gas and Wexpro In September 2023, Dominion Energy entered into an agreement with Enbridge for the Questar Gas Transaction, which included the sale of Questar Gas, Wexpro and related affiliates and was valued at approximately $4.3 billion, consisting of a purchase price of approximately $3.0 billion in cash and approximately $1.3 billion of assumed indebtedness. The sale closed in May 2024 after all customary closing and regulatory conditions were satisfied, including clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and Utah and Wyoming Commissions. Dominion Energy utilized the after-tax proceeds, as required, to repay outstanding borrowings under a 364-day term loan facility. See Note 17 for additional information. The purchase price was subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. The transaction was structured as a stock sale for tax purposes. In October 2023, as required under the sale agreement, Dominion Energy filed the notice with the Idaho Commission. The internal reorganization in connection with the Questar Gas Transaction was subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024. Dominion Energy retained the pension and other postretirement benefit plan assets and obligations, including related income tax and other deferred balances, associated with retiree participants of the sale entities in the Dominion Energy Pension Plan and the Dominion Energy Retiree Health and Welfare Plan. Dominion Energy recognized a pre-tax gain of $2 million ($42 million after-tax gain) upon the closing of the transaction, including the write-off of $0.7 billion of goodwill which was not deductible for tax purposes and including the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $236 million ($231 million after-tax), including amounts associated with an impairment of goodwill. Based on the recorded balances at March 31, 2024, Dominion Energy recorded an additional charge of $78 million ($78 million after-tax), including amounts associated with an impairment of goodwill, in the first quarter of 2024. Following the internal reorganization noted above and upon closing of the East Ohio Transaction, Dominion Energy recorded a tax benefit of $5 million. In 2023, Dominion Energy recorded a charge of $472 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock upon meeting the classification as held for sale. These deferred taxes reversed in the first quarter of 2024 and became a component of current income tax expense. In addition, Dominion Energy recorded an incremental deferred tax benefit of $10 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock in the first quarter of 2024. These deferred taxes reversed in the second quarter of 2024 upon closing of the sale and became a component of current income tax expense on the pre-tax loss on sale disclosed above. See Note 5 for additional information. At the closing of the Questar Gas Transaction, Dominion Energy and Enbridge entered into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of Questar Gas and Wexpro for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy. Other Sales In February 2024, Dominion Energy entered into an agreement with AES to sell Birdseye and the Madison solar project for approximately $17 million in cash, subject to customary closing adjustments, which closed in April 2024. Dominion Energy had previously recognized a charge of $68 million ($51 million after-tax) in the fourth quarter of 2023 to adjust the assets down to their realizable fair value. As a result, the gain on the sale recognized by Dominion Energy in the second quarter of 2024, including the effects of final closing adjustments, was inconsequential. In August 2023, Dominion Energy entered into an agreement and completed the sale of Tredegar Solar Fund I, LLC to Spruce Power for cash consideration of $21 million. Financial Statement Information for Business Review Dispositions The following table represents selected information regarding the results of operations, which were reported within discontinued operations in Dominion Energy’s Consolidated Statements of Income:
Year Ended December 31, 2024 |  | East Ohio Transaction(1) |  |  | PSNC Transaction(1) |  |  | Questar Gas Transaction(1) |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 229 |  |  | $ | 488 |  |  | $ | 894 |  |  | $ | — |
Operating expense(2) |  |  | 247 |  |  |  | 313 |  |  |  | 724 |  |  |  | (8 | )
Other income (expense) |  |  | (17 | ) |  |  | 11 |  |  |  | 2 |  |  |  | — |
Interest and related charges |  |  | 15 |  |  |  | 44 |  |  |  | 25 |  |  |  | — |
Income (loss) before income taxes |  |  | (50 | ) |  |  | 142 |  |  |  | 147 |  |  |  | 8 |
Income tax expense |  |  | 11 |  |  |  | 44 |  |  |  | 54 |  |  |  | — |
Net income (loss) attributable to Dominion Energy(3) |  | $ | (61 | ) |  | $ | 98 |  |  | $ | 93 |  |  | $ | 8 |
(1) Represents amoun ts attributable to Dominion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024, the PSNC Transaction w hich closed on September 30, 2024 and the Questar Gas Transaction which closed on May 31, 2024. (2) East Ohio Transaction includes a charge of $45 million ($33 million after-tax) associated with an increase to certain pension retirement benefits attributable to a plan amendment and a contribution to the defined contribution employee savings plan. See Note 22 for further information on these transactions. (3) Excludes $(69) million of income tax expense (benefit) attributable to consolidated state tax adjustments for the year ended December 31, 2024.
Year Ended December 31, 2023 |  | East Ohio Transaction |  |  | PSNC Transaction |  |  | Questar Gas Transaction |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 1,037 |  |  | $ | 743 |  |  | $ | 1,679 |  |  | $ | 15 |
Operating expense(1) |  |  | 701 |  |  |  | 517 |  |  |  | 1,554 |  |  |  | 111 |
Other income (expense) |  |  | 30 |  |  |  | 11 |  |  |  | 8 |  |  |  | — |
Interest and related charges |  |  | 71 |  |  |  | 52 |  |  |  | 68 |  |  |  | 1 |
Income (loss) before income taxes |  |  | 295 |  |  |  | 185 |  |  |  | 65 |  |  |  | (97 | )
Income tax expense(2) |  |  | 69 |  |  |  | 431 |  |  |  | 531 |  |  |  | (38 | )
Net income (loss) attributable to Dominion Energy(3) |  | $ | 226 |  |  | $ | (246 | ) |  | $ | (466 | ) |  | $ | (59 | )
(1) East Ohio Transaction includes a charge of $50 million ($45 million after-tax) primarily for an impairment of associated goodwill, Questar Gas Transaction includes a charge of $236 million ($231 million after-tax) primarily for an impairment of associated goodwill and Other includes a charge of $68 million ($51 million after-tax) associated with the impairment of nonregulated solar generation facility development operations and a charge of $15 million ($11 million after-tax) associated with the impairment of certain nonregulated solar assets. (2) Includes amounts to reflect the recognition of deferred taxes on the outside basis of the applicable entities’ stock upon meeting the classification as held for sale. (3) Excludes $(3) million of income tax expense (benefit) attributable to consolidated state tax adjustments for the year ended December 31, 2023.
Year Ended December 31, 2022 |  | East Ohio Transaction |  |  | PSNC Transaction |  |  | Questar Gas Transaction |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Operating revenue |  | $ | 1,043 |  |  | $ | 841 |  |  | $ | 1,341 |  |  | $ | 11 |
Operating expense(1) |  |  | 702 |  |  |  | 648 |  |  |  | 1,043 |  |  |  | 118 |
Other income (expense) |  |  | 28 |  |  |  | 9 |  |  |  | 37 |  |  |  | — |
Interest and related charges |  |  | 36 |  |  |  | 43 |  |  |  | 45 |  |  |  | — |
Income (loss) before income taxes |  |  | 333 |  |  |  | 159 |  |  |  | 290 |  |  |  | (107 | )
Income tax expense |  |  | 45 |  |  |  | 34 |  |  |  | 60 |  |  |  | (28 | )
Net income (loss) attributable to Dominion Energy(2) |  | $ | 288 |  |  | $ | 125 |  |  | $ | 230 |  |  | $ | (79 | )
(1) Other includes a charge of $103 million ($76 million after-tax) associated with the impairment of a nonregulated solar generation asset. (2) Excludes $(4) million of income tax expense (benefit) attributable to consolidated state tax adjustments for the year ended December 31, 2022. The carrying value of major classes of assets and liabilities relating to the disposal groups, which are reported as held for sale in Dominion Energy’s Consolidated Balance Sheet were as follows:
At December 31, 2023 |  | East Ohio Transaction |  |  | PSNC Transaction |  |  | Questar Gas Transaction |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Current assets(1) |  | $ | 497 |  |  | $ | 336 |  |  | $ | 764 |  |  | $ | 1 |
Property, plant and equipment, net |  |  | 5,443 |  |  |  | 2,806 |  |  |  | 4,369 |  |  |  | 26 |
Other deferred charges and other assets, including goodwill(2) and intangible assets |  |  | 2,659 |  |  |  | 834 |  |  |  | 814 |  |  |  | — |
Current liabilities(3)(4) |  |  | 560 |  |  |  | 224 |  |  |  | 389 |  |  |  | 7 |
Long-term debt(5) |  |  | 2,286 |  |  |  | 948 |  |  |  | 1,205 |  |  |  | — |
Other deferred credits and liabilities(6) |  |  | 1,437 |  |  |  | 711 |  |  |  | 1,116 |  |  |  | 2 |
(1) Includes cash and cash equivalents of $4 million, $2 million and $26 million within the East Ohio, PSNC and Questar Gas Transactions, respectively. Also includes regulatory assets of $75 million, $89 million and $297 million within the East Ohio, PSNC and Questar Gas Transactions, respectively. (2) Includes goodwill of $1.5 billion, $673 million and $768 million within the East Ohio, PSNC and Q uestar Gas Transactions, respectively. Also includes regulatory assets of $781 million, $86 million and $(39) million within the East Ohio, PSNC and Questar Gas Transactions, respectively. (3) Includes regulatory liabilities of $54 million, $44 million and $55 million within the East Ohio, PSNC and Questar Gas Transactions, respectively. (4) Questar Gas Transaction includes $40 million of 2.98% unsecured senior notes at December 31, 2023, which were scheduled to mature in December 2024. (5) Includes East Ohio Unsecured Senior Notes due 2025 to 2052 at rates from 1.30% to 6.38% and with a weighted-average coupon rate for debt outstanding at December 31, 2023 of 3.13%; PSNC Unsecured Senior Notes due 2026 to 2053 at rates from 3.10% to 7.45% and with a weighted-average coupon rate for debt outstanding at December 31, 2023 of 4.67%; and Questar Gas Unsecured Senior Notes due 2024 to 2052 at rates from 2.21% to 7.20% and with a weighted-average coupon rate for debt outstanding at December 31, 2023 of 3.99%; in the East Ohio, PSNC and Questar Gas Transactions, respectively. (6) Includes regulatory liabilities of $711 million, $435 million and $502 million within the East Ohio, PSNC and Questar Gas Transactions, respectively. Capital expenditures and significant noncash items relating to the disposal groups included the following:
Year Ended December 31, 2024 |  | East Ohio Transaction(1) |  |  | PSNC Transaction(1) |  |  | Questar Gas Transaction(1) |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 65 |  |  | $ | 287 |  |  | $ | 160 |  |  | $ | — |
Significant noncash item |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
(1) Represents amounts attributable to Domi nion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024, the PSNC Transaction which closed on September 30, 2024 and the Questar Gas Transaction which closed on May 31, 2024.
Year Ended December 31, 2023 |  | East Ohio Transaction |  |  | PSNC Transaction |  |  | Questar Gas Transaction |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 507 |  |  | $ | 233 |  |  | $ | 449 |  |  | $ | — |
Significant noncash items |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  |  | 148 |  |  |  | 90 |  |  |  | 175 |  |  |  | 2 |
Accrued capital expenditures |  |  | 42 |  |  |  | 43 |  |  |  | 32 |  |  |  | — |
Year Ended December 31, 2022 |  | East Ohio Transaction |  |  | PSNC Transaction |  |  | Questar Gas Transaction |  |  | Other |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 456 |  |  | $ | 153 |  |  | $ | 438 |  |  | $ | — |
Significant noncash items |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  |  | 134 |  |  |  | 87 |  |  |  | 163 |  |  |  | 4 |
Accrued capital expenditures |  |  | 53 |  |  |  | 16 |  |  |  | 31 |  |  |  | — |
Sale of Hope In February 2022, Dominion Energy entered into an agreement to sell 100% of the equity interests in Hope to Ullico for $690 million of cash consideration, subject to customary closing adjustments, which closed in August 2022 after all customary closing and regulatory conditions were satisfied, including clearance under the Hart-Scott-Rodino Act and approval from the West Virginia Commission. The sale was treated as a stock sale for tax purposes. In connection with closing, Dominion Energy recognized a pre-tax gain of $28 million, inclusive of customary closing adjustments, (net of $110 million write-off of goodwill which was not deductible for tax purposes) in losses (gains) on sales of assets in its Consolidated Statements of Income. The transaction resulted in an after-tax loss of $73 million. Upon meeting the classification as held for sale in the first quarter of 2022 and through the second quarter of 2022, Dominion Energy had recorded charges of $90 million in deferred income tax expense in its Consolidated Statements of Income to reflect the recognition of deferred taxes on the outside basis of Hope’s stock. This deferred income tax expense reversed upon closing of the sale and became a component of current income tax expense on the sale disclosed above. See Note 5 for additional information. In addition, a curtailment was recorded related to other postretirement benefit plans as discussed in Note 22. All activity related to Hope is reflected in the Corporate and Other segment. Sale of Kewaunee In May 2021, Dominion Energy entered into an agreement to sell 100% of the equity interests in Dominion Energy Kewaunee, Inc. to EnergySolutions, including the transfer of all decommissioning obligations associated with Kewaunee, which ceased operations in 2013. The sale closed in June 2022 following approval from the Wisconsin Commission in May 2022 and NRC approval of a requested license transfer in March 2022. The sale was treated as an asset sale for tax purposes and Dominion Energy retained the assets and obligations of the pension and other postretirement employee benefit plans. EnergySolutions is subject to the Wisconsin regulatory conditions agreed to by Dominion Energy upon its acquisition of Kewaunee, including the return of any excess decommissioning funds to WPSC and WP&L customers following completion of all decommissioning activities. In the second quarter of 2022, Dominion Energy recorded a loss of $649 million ($513 million after-tax), recorded in losses (gains) on sales of assets in its Consolidated Statements of Income, primarily related to the difference between the nuclear decommissioning trust and AROs. Prior to its receipt, there had been uncertainty as to the timing of or ability to obtain approval from the Wisconsin Commission. Prior to closing, Dominion Energy withdrew $80 million from the nuclear decommissioning trust to recover certain spent nuclear fuel and other permitted costs. All activity related to Kewaunee prior to closing is included in Contracted Energy, with remaining activity reflected in the Corporate and Other segment.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent + Details
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