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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | NOTE 15. LEASES At December 31, 2024 and 2023, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:
| Dominion Energy |  |  | Virginia Power |
At December 31, | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |  |  |  |  |  |
Lease assets: |  |  |  |  |  |  |  |  |  |  |
Operating lease assets(1) | $ | 588 |  |  | $ | 578 |  |  | $ | 410 |  |  | $ | 393 |
Finance lease assets(2) |  | 267 |  |  |  | 258 |  |  |  | 146 |  |  |  | 104 |
Total lease assets | $ | 855 |  |  | $ | 836 |  |  | $ | 556 |  |  | $ | 497 |
Lease liabilities: |  |  |  |  |  |  |  |  |  |  |
Operating lease liabilities(3) | $ | 36 |  |  | $ | 36 |  |  | $ | 22 |  |  | $ | 20 |
Finance lease liabilities(4) |  | 62 |  |  |  | 60 |  |  |  | 35 |  |  |  | 31 |
Total lease liabilities - current |  | 98 |  |  |  | 96 |  |  |  | 57 |  |  |  | 51 |
Operating lease liabilities (5) |  | 644 |  |  |  | 627 |  |  |  | 399 |  |  |  | 377 |
Finance lease liabilities(6) |  | 214 |  |  |  | 203 |  |  |  | 110 |  |  |  | 72 |
Total lease liabilities - noncurrent |  | 858 |  |  |  | 830 |  |  |  | 509 |  |  |  | 449 |
Total lease liabilities | $ | 956 |  |  | $ | 926 |  |  | $ | 566 |  |  | $ | 500 |
(1) Dominion Energy includes $588 million and $561 million at December 31, 2024 and 2023, respectively, in other deferred charges and other assets, with the remaining balance at December 31, 2023 in assets held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other deferred charges and other assets in its Consolidated Balance Sheets. (2) Dominion Energy includes $267 million and $244 million at December 31, 2024 and 2023, respectively, in property, plant and equipment in its Consolidated Balance Sheets, net of $199 million and $142 million at December 31, 2024 and 2023, respectively, of accumulated amortization, with the remaining balance at December 31, 2023 in assets held for sale. Virginia Power’s balances are included in property, plant and equipment in its Consolidated Balance Sheets, net of $88 million and $51 million at December 31, 2024 and 2023, respectively, of accumulated amortization. (3) Dominion Energy includes $36 million and $32 million at December 31, 2024 and 2023, respectively, in other current liabilities, with the remaining balance at December 31, 2023 in liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are in other current liabilities in its Consolidated Balance Sheets. (4) Dominion Energy includes $62 million and $57 million at December 31, 2024 and 2023, respectively, in securities due within one year, with the remaining balance at December 31, 2023 in liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in securities due within one year in its Consolidated Balance Sheets. (5) Dominion Energy includes $644 million and $610 million at December 31, 2024 and 2023, respectively, in other deferred credits and other liabilities, with the remaining balance at December 31, 2023 in liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other deferred credits and other liabilities in its Consolidated Balance Sheets. (6) Dominion Energy includes $214 million and $192 million at December 31, 2024 and 2023, respectively, in other long-term debt, with the remaining balance in liabilities held for sale, in its Consolidated Balance Sheets. Virginia Power’s balances are included in other long-term debt in its Consolidated Balance Sheets. In addition to the amounts disclosed above, Dominion Energy’s Consolidated Balance Sheets at both December 31, 2024 and 2023 includes property, plant and equipment of $382 million related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. There was $38 million and $28 million of accumulated depreciation related to these facilities recorded in Dominion Energy’s Consolidated Balance Sheets at December 31, 2024 and 2023, respectively. For the years ended December 31, 2024, 2023 and 2022, total lease cost associated with the Companies’ leasing arrangements consisted of the following:
| Dominion Energy |  |  | Virginia Power |
Year ended December 31, | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |  |  | 2022 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization(1) | $ | 54 |  |  | $ | 50 |  |  | $ | 41 |  |  | $ | 24 |  |  | $ | 24 |  |  | $ | 15 |
Interest(2) |  | 14 |  |  |  | 13 |  |  |  | 3 |  |  |  | 5 |  |  |  | 4 |  |  |  | 3 |
Operating lease cost(3) |  | 81 |  |  |  | 70 |  |  |  | 53 |  |  |  | 60 |  |  |  | 43 |  |  |  | 32 |
Short-term lease cost(4) |  | 22 |  |  |  | 32 |  |  |  | 31 |  |  |  | 16 |  |  |  | 23 |  |  |  | 21 |
Variable lease cost |  | 6 |  |  |  | 6 |  |  |  | 4 |  |  |  | 2 |  |  |  | 2 |  |  |  | 1 |
Total lease cost | $ | 177 |  |  | $ | 171 |  |  | $ | 132 |  |  | $ | 107 |  |  | $ | 96 |  |  | $ | 72 |
(1) Dominion Energy includes $— million, $3 million and $3 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income. (2) Dominion Energy includes $— million, $1 million and $1 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income. (3) Dominion Energy includes $— million, $5 million and $6 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income. (4) Dominion Energy includes $— million, $2 million and $2 million for the years ended December 31, 2024, 2023 and 2022, respectively, reflected in discontinued operations in its Consolidated Statements of Income. For the years ended December 31, 2024, 2023 and 2022, cash paid for amounts included in the measurement of the lease liabilities consisted of the following amounts, included in the Companies’ Consolidated Statements of Cash Flows:
| Dominion Energy |  |  | Virginia Power |
Year ended December 31, | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |  |  | 2022 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows for finance leases | $ | 14 |  |  | $ | 13 |  |  | $ | 3 |  |  | $ | 5 |  |  | $ | 4 |  |  | $ | 3 |
Operating cash flows for operating leases |  | 106 |  |  |  | 105 |  |  |  | 82 |  |  |  | 74 |  |  |  | 64 |  |  |  | 50 |
Financing cash flows for finance leases |  | 50 |  |  |  | 47 |  |  |  | 32 |  |  |  | 23 |  |  |  | 19 |  |  |  | 12 |
In addition to the amounts disclosed above, Dominion Energy’s Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022, include $18 million, $21 million and $16 million, respectively, of rental revenue, included in operating revenue and $10 million, $10 million and $34 million, respectively, of depreciation expense, included in depreciation and amortization, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. In April 2024, Dominion Energy agreed to pay $47 million in connection with a settlement of an agreement related to the offshore wind installation vessel under development and recorded a charge of $47 million ($35 million after-tax) in the first quarter of 2024 (reflected in the Corporate and Other segment) within impairment of assets and other charges in its Consolidated Statements of Income. At December 31, 2024 and 2023, the weighted-average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:
| Dominion Energy |  |  | Virginia Power |
December 31, | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Weighted-average remaining lease term - finance leases | 5 years |  |  | 5 years |  |  | 5 years |  |  | 5 years |
Weighted-average remaining lease term - operating leases | 31 years |  |  | 31 years |  |  | 32 years |  |  | 33 years |
Weighted-average discount rate - finance leases |  | 5.61 | % |  |  | 7.14 | % |  |  | 6.71 | % |  |  | 7.28 | %
Weighted-average discount rate - operating leases |  | 4.42 | % |  |  | 4.11 | % |  |  | 5.13 | % |  |  | 4.18 | %
The Companies’ lease liabilities have the following maturities:
Maturity of Lease Liabilities |  | Dominion Energy |  |  | Virginia Power |
(millions) |  | Operating |  |  | Finance |  |  | Operating |  |  | Finance |
2025 |  | $ | 41 |  |  | $ | 78 |  |  | $ | 25 |  |  | $ | 43 |
2026 |  |  | 39 |  |  |  | 69 |  |  |  | 23 |  |  |  | 36 |
2027 |  |  | 36 |  |  |  | 64 |  |  |  | 22 |  |  |  | 32 |
2028 |  |  | 35 |  |  |  | 56 |  |  |  | 21 |  |  |  | 26 |
2029 |  |  | 34 |  |  |  | 40 |  |  |  | 20 |  |  |  | 18 |
After 2029 |  |  | 1,131 |  |  |  | 17 |  |  |  | 740 |  |  |  | 17 |
Total undiscounted lease payments |  |  | 1,316 |  |  |  | 324 |  |  |  | 851 |  |  |  | 172 |
Present value adjustment |  |  | (636 | ) |  |  | (48 | ) |  |  | (430 | ) |  |  | (27 | )
Present value of lease liabilities |  | $ | 680 |  |  | $ | 276 |  |  | $ | 421 |  |  | $ | 145 |
Offshore Wind Vessel Leasing Arrangement In December 2020, Dominion Energy signed an agreement (most recently amended in August 2024) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel. This vessel is designed to handle current turbine technologies as well as next generation turbines. The lessor is providing equity and has obtained financing commitments from debt investors, totaling $715 million, to fund the estimated project costs. The completed project is expected to be delivered to the CVOW Commercial Project in the third quarter of 2025. Dominion Energy has been appointed to act as the construction agent for the lessor, during which time Dominion Energy will request cash draws from the lessor and debt investors to fund all project costs, which totaled $598 million as of December 31, 2024. If the project is terminated under certain events of default, Dominion Energy could be required to pay up to 100% of the then funded amount. The initial lease term will commence once construction is substantially complete and the vessel is delivered and will mature after five years. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional term, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the outstanding project costs, or (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the outstanding project costs, Dominion Energy may be required to make a payment to the lessor for the difference between the outstanding project costs and sale proceeds. Dominion Energy is not considered the owner during construction for financial accounting purposes and, therefore, will not reflect the construction activity in its consolidated financial statements. Dominion Energy expects to recognize a right-of-use asset and a corresponding finance lease liability at the commencement of the lease term. Dominion Energy will be considered the owner of the leased property for tax purposes, and as a result, will be entitled to tax deductions for depreciation and interest expense.

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