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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
Employee Benefit Plans | NOTE 22. EMPLOYEE BENEFIT PLANS Defined Benefit Plans Dominion Energy provides certain retirement benefits to eligible active employees, retirees and qualifying dependents. Under the terms of its benefit plans, Dominion Energy reserves the right to change, modify or terminate the plans. From time to time in the past, benefits have changed, and some of these changes have reduced benefits. Dominion Energy maintains qualified noncontributory defined benefit pension plans covering virtually all employees who commenced employment prior to July 2021. Retirement benefits are based primarily on years of service, age and the employee’s compensation. Dominion Energy’s funding policy is to contribute annually an amount that is in accordance with the provisions of ERISA. The pension programs also provide benefits to certain retired executives under company-sponsored nonqualified employee benefit plans. The nonqualified plans are funded through contributions to grantor trusts. Dominion Energy also provides retiree healthcare and life insurance benefits with annual employee premiums based on several factors such as age, retirement date and years of service. Pension and other postretirement benefit costs are affected by employee demographics (including age, compensation levels and years of service), the level of contributions made to the plans and earnings on plan assets. These costs may also be affected by changes in key assumptions, including expected long-term rates of return on plan assets, discount rates, healthcare cost trend rates, mortality rates and the rate of compensation increases. Dominion Energy uses December 31 as the measurement date for all of its employee benefit plans. Dominion Energy immediately recognizes the change in the fair value of plan assets and liabilities and net actuarial gains and losses annually in the fourth quarter of each fiscal year as well as whenever a triggering event occurs that is determined to require remeasurement. Actuarial losses attributable to Dominion Energy’s rate regulated operations are deferred to regulatory assets when it is probable that regulators will permit them to be recovered from customers in future rates. Likewise, actuarial gains attributable to Dominion Energy’s rate regulated operations are deferred to regulatory liabilities when it is probable that regulators will require customer refunds or other benefits through future rates. Dominion Energy’s pension and other postretirement benefit plans hold investments in trusts to fund employee benefit payments. Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns of $738 million and $1.2 billion in 2024 and 2023, respectively, versus expected returns of $982 million and $1.0 billion, respectively. Any investment-related declines in these trusts are immediately recognized in earnings and will be included in the determination of the amount of cash to be contributed to the employee benefit plans. Pension and Other Postretirement Benefit Plan Remeasurements As a result of the East Ohio and Questar Gas Transactions in 2024, Dominion Energy remeasured its pension and other postretirement benefit plans. The remeasurements resulted in $217 million ($162 million after-tax) of higher market related impacts on pension and other postretirement plans related to the East Ohio and Questar Gas Transactions, reflected in other income (expense) in Dominion Energy’s Consolidated Statement of Income. The discount rates used for the remeasurements related to the East Ohio and Questar Gas Transactions were 5.62% and 5.75% for the pension plans and 5.61%-5.62% and 5.74% for the other postretirement benefit plans, respectively. All other assumptions used for the remeasurements were consistent with the measurement as of December 31, 2023. Funded Status The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy:
|  | Pension Benefits |  |  | Other Postretirement Benefits |
Year Ended December 31, |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
(millions, except percentages) |  |  |  |  |  |  |  |  |  |  |  |
Changes in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 8,431 |  |  | $ | 8,066 |  |  | $ | 1,109 |  |  | $ | 1,127 |
Service cost |  |  | 83 |  |  |  | 96 |  |  |  | 11 |  |  |  | 14 |
Interest cost |  |  | 431 |  |  |  | 442 |  |  |  | 57 |  |  |  | 61 |
Benefits paid |  |  | (504 | ) |  |  | (493 | ) |  |  | (88 | ) |  |  | (94 | )
Actuarial (gain) loss during the year |  |  | (404 | ) |  |  | 322 |  |  |  | (43 | ) |  |  | 1 |
Plan amendments |  |  | 30 |  |  |  | 2 |  |  |  | — |  |  |  | — |
Settlements and curtailments(1) |  |  | (415 | ) |  |  | (4 | ) |  |  | (28 | ) |  |  | — |
Benefit obligation at end of year |  | $ | 7,652 |  |  | $ | 8,431 |  |  | $ | 1,018 |  |  | $ | 1,109 |
Changes in fair value of plan assets: |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 9,087 |  |  | $ | 8,694 |  |  | $ | 2,062 |  |  | $ | 1,845 |
Actual return gain (loss) on plan assets |  |  | 503 |  |  |  | 882 |  |  |  | 235 |  |  |  | 277 |
Employer contributions |  |  | 76 |  |  |  | 8 |  |  |  | — |  |  |  | — |
Benefits paid |  |  | (504 | ) |  |  | (493 | ) |  |  | (54 | ) |  |  | (60 | )
Settlements(2) |  |  | (684 | ) |  |  | (4 | ) |  |  | (40 | ) |  |  | — |
Fair value of plan assets at end of year |  | $ | 8,478 |  |  | $ | 9,087 |  |  | $ | 2,203 |  |  | $ | 2,062 |
Funded status at end of year |  | $ | 826 |  |  | $ | 656 |  |  | $ | 1,185 |  |  | $ | 953 |
Amounts recognized in the Consolidated Balance Sheets at December 31: |  |  |  |  |  |  |  |  |  |  |  |
Noncurrent pension and other postretirement benefit assets |  | $ | 883 |  |  | $ | 647 |  |  | $ | 1,356 |  |  | $ | 1,132 |
Assets held for sale |  |  | — |  |  |  | 308 |  |  |  | — |  |  |  | 13 |
Other current liabilities |  |  | (7 | ) |  |  | (27 | ) |  |  | (13 | ) |  |  | (13 | )
Noncurrent pension and other postretirement benefit liabilities(3) |  |  | (50 | ) |  |  | (237 | ) |  |  | (158 | ) |  |  | (179 | )
Liabilities held for sale |  |  | — |  |  |  | (35 | ) |  |  | — |  |  |  | — |
Net amount recognized |  | $ | 826 |  |  | $ | 656 |  |  | $ | 1,185 |  |  | $ | 953 |
Significant assumptions used to determine benefit obligations as of December 31: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.84%-5.87% |  |  | 5.37%-5.47% |  |  | 5.83%-5.86% |  |  | 5.40%-5.42% |
Weighted-average rate of increase for compensation |  | 4.40% |  |  | 4.28% |  |  | n/a |  |  | n/a |
Crediting interest rate for cash balance and similar plans |  | 4.59%-4.62% |  |  | 4.12%-4.22% |  |  | n/a |  |  | n/a |
(1) 2024 amounts include settlements and curtailment related to the East Ohio and Questar Gas Transactions. Additionally, 2024 and 2023 amounts include settlements of nonqualified pension obligations. (2) 2024 amounts include settlements related to the East Ohio and Questar Gas Transactions. Additionally, 2024 and 2023 include amounts related to settlements of nonqualified pension obligations. (3) Presented within other deferred credits and other liabilitie s in Dominion Energy's Consolidated Balance Sheets. Actuarial gains recognized during 2024 in Dominion Energy’s pension benefit obligations were $404 million primarily driven by an increase in the discount rate. Actuarial losses recognized during 2023 in Dominion Energy’s pension benefit obligations were $322 million primarily driven by a decrease in the discount rate. Actuarial gains recognized during 2024 in Dominion Energy’s other postretirement benefit obligations were $43 million primarily driven by an increase in the discount rate. Actuarial losses recognized during 2023 in Dominion Energy’s other postretirement benefit obligations were $1 million primarily driven by a $29 million loss due to a decrease in the discount rate that was largely offset by a $28 million gain from favorable claims and other experience. The ABO for all of Dominion Energy’s defined benefit pension plans was $7.4 billion and $8.1 billion at December 31, 2024 and 2023, respectively. Under its funding policies, Dominion Energy evaluates plan funding requirements annually, usually in the fourth quarter after receiving updated plan information from its actuary. Based on the funded status of each plan and other factors, Dominion Energy determines the amount of contributions for the current year, if any, at that time. Dominion Energy expects to make $22 million of minimum required contributions to its qualified defined benefit pension plans in 2025. Dominion Energy also considers voluntary contributions from time to time, either in the form of cash or equity securities. Certain of Dominion Energy’s subsidiaries fund other postretirement benefit costs through VEBAs. Dominion Energy’s remaining subsidiaries do no t prefund other postretirement benefit costs but instead pay claims as presented. Dominion Energy did not make any contributions to VEBAs associated with its other postretirement plans in 2024 and 2023. Dominion Energy is not required to make any contributions to its VEBAs associated with its other postretirement plans in 2025. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities. The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy:
|  | Pension Benefits |  |  | Other Postretirement Benefits |
As of December 31, |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation |  | $ | 724 |  |  | $ | 7,996 |  |  | $ | 171 |  |  | $ | 195 |
Fair value of plan assets |  |  | 666 |  |  |  | 7,697 |  |  |  | — |  |  |  | 4 |
The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:
As of December 31, |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |
Accumulated benefit obligation |  | $ | 715 |  |  | $ | 792 |
Fair value of plan assets |  |  | 666 |  |  |  | 654 |
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy’s plans:
|  | Estimated Future Benefit Payments |
|  | Pension Benefits |  |  | Other Postretirement Benefits |
(millions) |  |  |  |  |  |
2025 |  | $ | 537 |  |  | $ | 89 |
2026 |  |  | 539 |  |  |  | 88 |
2027 |  |  | 546 |  |  |  | 87 |
2028 |  |  | 555 |  |  |  | 85 |
2029 |  |  | 561 |  |  |  | 84 |
2030-2034 |  |  | 2,871 |  |  |  | 403 |
Plan Assets Dominion Energy’s overall objective for investing its pension and other postretirement plan assets is to achieve appropriate long-term rates of return commensurate with prudent levels of risk. To minimize risk, funds are broadly diversified among asset classes, investment strategies and investment advisors. In December 2024, Dominion Energy revised its long-term strategic target asset allocation for its pension funds to 30% public equity (inclusive of both U.S. equity and non-U.S. equity), 27% fixed income and 43% other alternative investments. Public equity includes investments in U.S. and non-U.S. large-cap, mid-cap and small-cap companies. Fixed income includes government securities and cash. The public equity and fixed income investments are in individual securities as well as mutual funds and exchange traded funds. Other alternative investments include private equity, typically through limited partnerships, and credit and absolute return strategies which include investments in public debt, private debt and hedge funds. Through December 2024, the long-term strategic target asset allocations for substantially all of Dominion Energy’s pension funds were 26% U.S. equity, 19% non-U.S. equity, 32% fixed income, 3% real assets and 20% other alternative investments. U.S. equity includes investments in large-cap, mid-cap and small-cap companies located in the U.S. Non-U.S. equity includes investments in large-cap, mid-cap and small-cap companies located outside of the U.S. including both developed and emerging markets. Fixed income includes corporate debt instruments of companies from diversified industries and U.S. Treasuries. The U.S. equity, non-U.S. equity and fixed income investments are in individual securities as well as mutual funds and exchange-traded funds. Real assets include investments in real estate investment trusts and private partnerships. Other alternative investments include partnership investments in private equity-debt and hedge funds that follow several different strategies. Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies. Factors considered in setting the investment policy include employee demographics, liability growth rates, future discount rates, the funded status of the plans and the expected long-term rate of return on plan assets. Deviations from the plans’ strategic allocation are a function of Dominion Energy’s assessments regarding short-term risk and reward opportunities in the capital markets and/or short-term market movements which result in the plans’ actual asset allocations varying from the strategic target asset allocations. Through periodic rebalancing, actual allocations are brought back in line with the target. Future asset/liability studies will focus on strategies to further reduce pension and other postretirement plan risk, while still achieving attractive levels of returns. Financial derivatives may be used to obtain or manage market exposures and to hedge assets and liabilities. For fair value measurement policies and procedures related to pension and other postretirement benefit plan assets, see Note 2. The fair values of Dominion Energy’s pension plan assets by asset category are as follows:
At December 31, |  | 2024 |  |  | 2023 |
(millions) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Cash and cash equivalents |  | $ | 395 |  |  | $ | — |  |  | $ | — |  |  | $ | 395 |  |  | $ | 21 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 30 |
Common and preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 1,004 |  |  |  | — |  |  |  | — |  |  |  | 1,004 |  |  |  | 1,145 |  |  |  | — |  |  |  | — |  |  |  | 1,145 |
International |  |  | 723 |  |  |  | 1 |  |  |  | — |  |  |  | 724 |  |  |  | 944 |  |  |  | 2 |  |  |  | — |  |  |  | 946 |
Insurance contracts |  |  | — |  |  |  | 139 |  |  |  | 73 |  |  |  | 212 |  |  |  | — |  |  |  | 162 |  |  |  | — |  |  |  | 162 |
Corporate debt instruments |  |  | 70 |  |  |  | 486 |  |  |  | 11 |  |  |  | 567 |  |  |  | 74 |  |  |  | 750 |  |  |  | — |  |  |  | 824 |
Government securities |  |  | 16 |  |  |  | 1,303 |  |  |  | — |  |  |  | 1,319 |  |  |  | 43 |  |  |  | 1,720 |  |  |  | — |  |  |  | 1,763 |
Total recorded at fair value |  | $ | 2,208 |  |  | $ | 1,929 |  |  | $ | 84 |  |  | $ | 4,221 |  |  | $ | 2,227 |  |  | $ | 2,643 |  |  | $ | — |  |  | $ | 4,870 |
Assets recorded at NAV(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commingled funds/collective trust funds |  |  |  |  |  |  |  |  |  |  |  | 1,771 |  |  |  |  |  |  |  |  |  |  |  |  | 2,012 |
Alternative investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate funds |  |  |  |  |  |  |  |  |  |  |  | 37 |  |  |  |  |  |  |  |  |  |  |  |  | 67 |
Private equity funds |  |  |  |  |  |  |  |  |  |  |  | 1,304 |  |  |  |  |  |  |  |  |  |  |  |  | 1,395 |
Debt funds |  |  |  |  |  |  |  |  |  |  |  | 188 |  |  |  |  |  |  |  |  |  |  |  |  | 236 |
Hedge funds |  |  |  |  |  |  |  |  |  |  |  | 319 |  |  |  |  |  |  |  |  |  |  |  |  | 239 |
Total recorded at NAV |  |  |  |  |  |  |  |  |  |  | $ | 3,619 |  |  |  |  |  |  |  |  |  |  |  | $ | 3,949 |
Total investments(2) |  |  |  |  |  |  |  |  |  |  | $ | 7,840 |  |  |  |  |  |  |  |  |  |  |  | $ | 8,819 |
(1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy. (2) Excludes net assets related to pending sales of securities and advanced subscription of $633 million, net accrued income of $21 million, and includes net assets related to pending purchases of securities of $16 million at December 31, 2024. Excludes net assets related to pending sales of securities of $298 million, net accrued income of $24 million, and includes net assets related to pending purchases of securities of $54 million at December 31, 2023. The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:
At December 31, |  | 2024 |  |  | 2023 |
(millions) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Cash and cash equivalents |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 7 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 4 |
Common and preferred stocks: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 946 |  |  |  | — |  |  |  | — |  |  |  | 946 |  |  |  | 757 |  |  |  | — |  |  |  | — |  |  |  | 757 |
International |  |  | 74 |  |  |  | — |  |  |  | — |  |  |  | 74 |  |  |  | 194 |  |  |  | — |  |  |  | — |  |  |  | 194 |
Insurance contracts |  |  | — |  |  |  | 8 |  |  |  | 5 |  |  |  | 13 |  |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | 10 |
Corporate debt instruments |  |  | 183 |  |  |  | 30 |  |  |  | 1 |  |  |  | 214 |  |  |  | 4 |  |  |  | 36 |  |  |  | — |  |  |  | 40 |
Government securities |  |  | 165 |  |  |  | 82 |  |  |  | — |  |  |  | 247 |  |  |  | 3 |  |  |  | 100 |  |  |  | — |  |  |  | 103 |
Total recorded at fair value |  | $ | 1,375 |  |  | $ | 120 |  |  | $ | 6 |  |  | $ | 1,501 |  |  | $ | 961 |  |  | $ | 147 |  |  | $ | — |  |  | $ | 1,108 |
Assets recorded at NAV(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commingled funds/collective trust funds |  |  |  |  |  |  |  |  |  |  |  | 495 |  |  |  |  |  |  |  |  |  |  |  |  | 725 |
Alternative investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate funds |  |  |  |  |  |  |  |  |  |  |  | 9 |  |  |  |  |  |  |  |  |  |  |  |  | 11 |
Private equity funds |  |  |  |  |  |  |  |  |  |  |  | 147 |  |  |  |  |  |  |  |  |  |  |  |  | 173 |
Debt funds |  |  |  |  |  |  |  |  |  |  |  | 12 |  |  |  |  |  |  |  |  |  |  |  |  | 14 |
Hedge funds |  |  |  |  |  |  |  |  |  |  |  | 20 |  |  |  |  |  |  |  |  |  |  |  |  | 14 |
Total recorded at NAV |  |  |  |  |  |  |  |  |  |  | $ | 683 |  |  |  |  |  |  |  |  |  |  |  | $ | 937 |
Total investments(2) |  |  |  |  |  |  |  |  |  |  | $ | 2,184 |  |  |  |  |  |  |  |  |  |  |  | $ | 2,045 |
(1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy. (2) Excludes net assets related to pending sales of securities and advanced subscription of $19 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2024. Excludes net assets related to pending sales of securities and advanced subscription of $17 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2023. The following table presents the net change in the Dominion Energy’s pension and other postretirement plan assets included in the Level 3 fair value category:
|  | Pension Benefits |  |  | Other Postretirement Benefits |
(millions) |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |  |  | 2022 |
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total realized and unrealized gains: |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchases |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |
Transfers into Level 3 |  |  | 73 |  |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | — |
Ending balance |  | $ | 84 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |
The plan assets investments are determined based on the fair values of the investments and the underlying investments, which have been determined as follows: • Cash and Cash Equivalents—Represents interest-bearing cash, foreign cash and money market funds. Interest-bearing cash and money market funds are valued at cost plus accrued interest. The foreign cash balances are valued at the amount held and translated on the reporting date based on prevailing exchange rates. Foreign cash and money market funds are classified as Level 1. The interest-bearing cash is held in variation margin and with various brokers, which are less liquid and therefore are classified as Level 2. • Common and Preferred Stocks—Investments are valued at the closing price reported on the active market on which the individual securities are traded. Investments in certain preferred stocks are classified as Level 2 and are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. • Insurance Contracts—Investments in Group Annuity Contracts are stated at fair value based on the fair value of the underlying securities as provided by the managers and include investments in U.S. government securities, corporate debt instruments and state and municipal debt securities. • Corporate Debt Instruments—Investments are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available for comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar instruments, the instrument is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available. • Government Securities—Investments are valued using pricing models maximizing the use of observable inputs for similar securities. • Commingled Funds/Collective Trust Funds—Commingled funds/collective trust funds invest in debt and equity securities and other instruments with characteristics similar to those of the funds’ benchmarks. The primary objectives of the funds are to seek investment returns that approximate the overall performance of their benchmark indexes. These benchmarks are major equity indices, fixed income indices and money market indices that focus on growth, income and liquidity strategies, as applicable. Investments in commingled funds/collective trust funds are stated at the NAV as determined by the issuer of the commingled funds/collective trust funds and are based on the fair value of the underlying investments held by the fund less its liabilities. The NAV is used as a practical expedient to estimate fair value. The commingled funds/collective trust funds do not have any unfunded commitments, and do not have any applicable liquidation periods or defined terms/periods to be held. The majority of these funds have redemption restrictions allowing investors to redeem capital on a periodic basis. • Alternative Investments—Investments in private real estate funds, private equity funds, private debt funds and hedge funds are stated at fair value based on the NAV of the plan’s proportionate share of the partnership, joint venture or other alternative investment’s fair value as determined by reference to audited financial statements or NAV statements provided by the investment manager. The NAV, which is used as a practical expedient to estimate fair value, is adjusted for contributions and distributions occurring between the investment manager and Dominion Energy’s measurement date. These valuations also involve assumptions and methods that are reviewed, evaluated, and adjusted, if necessary, by Dominion Energy. Net Periodic Benefit (Credit) Cost The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income, except for $5 million, $18 million and $25 million for the years ended December 31, 2024, 2023 and 2022, respectively, presented in discontinued operations. The non-service cost components of net periodic benefit (credit) cost are reflected in other income (expense) in Dominion Energy’s Consolidated Statements of Income, except for $12 million, $(46) million and $(81) million for the years ended December 31, 2024, 2023 and 2022, respectively, presented in discontinued operations. The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion Energy plans are as follows:
|  | Pension Benefits |  |  | Other Postretirement Benefits |
Year Ended December 31, |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |  |  | 2022 |
(millions, except percentages) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 83 |  |  | $ | 96 |  |  | $ | 142 |  |  | $ | 11 |  |  | $ | 14 |  |  | $ | 22 |
Interest cost |  |  | 431 |  |  |  | 442 |  |  |  | 333 |  |  |  | 57 |  |  |  | 61 |  |  |  | 45 |
Expected return on plan assets |  |  | (811 | ) |  |  | (864 | ) |  |  | (886 | ) |  |  | (171 | ) |  |  | (151 | ) |  |  | (191 | )
Amortization of prior service (credit) cost |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | (36 | ) |  |  | (36 | ) |  |  | (38 | )
Net actuarial (gain) loss |  |  | (96 | ) |  |  | 304 |  |  |  | 726 |  |  |  | (107 | ) |  |  | (125 | ) |  |  | 246 |
Settlements, curtailments and special termination benefits(1) |  |  | (56 | ) |  |  | — |  |  |  | (3 | ) |  |  | (4 | ) |  |  | — |  |  |  | (8 | )
Plan amendment |  |  | 22 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net periodic benefit (credit) cost |  | $ | (426 | ) |  | $ | (22 | ) |  | $ | 312 |  |  | $ | (250 | ) |  | $ | (237 | ) |  | $ | 76 |
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service (credit) cost |  |  | 6 |  |  |  | 2 |  |  |  | 1 |  |  |  | 4 |  |  |  | — |  |  |  | 8 |
Less amounts included in net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of prior service credit (cost) |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 36 |  |  |  | 38 |
Total recognized in other comprehensive income and regulatory assets and liabilities |  | $ | 5 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 40 |  |  | $ | 36 |  |  | $ | 46 |
Significant assumptions used to determine periodic cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.37%-5.75% |  |  | 5.65%-5.75% |  |  | 3.06%-3.19% |  |  | 5.40%-5.74% |  |  | 5.69%-5.70% |  |  | 3.04%-5.03% |
Expected long-term rate of return on plan assets |  | 7.00%-8.35% |  |  | 7.00%-8.35% |  |  | 7.00%-8.35% |  |  | 8.35% |  |  | 8.35% |  |  | 8.35% |
Weighted-average rate of increase for compensation |  | 4.28% |  |  | 4.38% |  |  | 4.51% |  |  | n/a |  |  | n/a |  |  | n/a |
Crediting interest rate for cash balance and similar plans |  | 4.12%-4.50% |  |  | 4.40%-4.50% |  |  | 1.81%-1.94% |  |  | n/a |  |  | n/a |  |  | n/a |
Healthcare cost trend rate(2) |  |  |  |  |  |  |  |  |  |  | 7.00% |  |  | 7.00% |  |  | 6.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)(2) |  |  |  |  |  |  |  |  |  |  | 5.00% |  |  | 5.00% |  |  | 5.00% |
Year that the rate reaches the ultimate trend rate(2) |  |  |  |  |  |  |  |  |  |  | 2031 |  |  | 2030 |  |  | 2026-2027 |
(1) 2024 amounts relate primarily to the East Ohio Transaction. 2022 amounts relate primarily to Dominion Energy’s sale of Hope. (2) Assumptions used to determine net periodic cost for the following year. The components of AOCI and regulatory assets and liabilities for Dominion Energy’s plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:
|  | Pension Benefits |  |  | Other Postretirement Benefits |
At December 31, |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Regulatory assets and liabilities(1): |  |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss (gain) |  | $ | 496 |  |  | $ | 1,237 |  |  | $ | (65 | ) |  | $ | (56 | )
Prior service cost (credit) |  |  | 8 |  |  |  | 2 |  |  |  | (41 | ) |  |  | (61 | )
AOCI: |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost (credit) |  |  | 2 |  |  |  | 3 |  |  |  | (40 | ) |  |  | (60 | )
Total |  | $ | 506 |  |  | $ | 1,242 |  |  | $ | (146 | ) |  | $ | (177 | )
(1) At December 31, 2023, includes $173 million presented in assets and liabilities held for sale. The expected long-term rates of return on plan assets, discount rates, healthcare cost trend rates and mortality are critical assumptions in determining net periodic benefit (credit) cost. Dominion Energy develops non-investment related assumptions, which are then compared to the forecasts of an independent investment advisor to ensure reasonableness. An internal committee selects the final assumptions used for Dominion Energy’s pension and other postretirement plans including discount rates, expected long-term rates of return, healthcare cost trend rates and mortality rates. Dominion Energy determines the expected long-term rates of return on plan assets for its pension plans and other postretirement benefit plans by using a combination of: • Expected inflation and risk-free interest rate assumptions; • Historical return analysis to determine long term historic returns as well as historic risk premiums for various asset classes; • Expected future risk premiums, asset classes’ volatilities and correlations; • Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and • Investment allocation of plan assets. Dominion Energy determines discount rates from analyses of AA/Aa rated bonds with cash flows matching the expected payments to be made under its plans. Mortality rates are developed from actual and projected plan experience for postretirement benefit plans. Dominion Energy’s actuary conducts an experience study periodically as part of the process to select its best estimate of mortality. Dominion Energy considers both standard mortality tables and improvement factors as well as the plans’ actual experience when selecting a best estimate. Assumed healthcare cost trend rates have a significant effect on the amounts reported for Dominion Energy’s retiree healthcare plans. Dominion Energy establishes the healthcare cost trend rate assumption based on analyses of various factors including the specific provisions of its medical plans, actual cost trends experienced and projected and demographics of plan participants. Other Employee Matters In the first quarter of 2024, Dominion Energy recorded a charge of $23 million ($17 million after-tax) within discontinued operations in the Consolidated Statements of Income attributable to a contribution to its defined contribution employee savings plan associated with the closing of the East Ohio Transaction. In addition, in the first quarter of 2024, Dominion Energy recorded a charge of $13 million ($10 million after-tax) in other operations and maintenance expense in the Consolidated Statements of Income related to a severance accrual for certain employees in connection with the business review. Virginia Power Participation in Defined Benefit Plans Virginia Power employees are covered by the Dominion Energy Pension Plan described above. As a participating employer, Virginia Power is subject to Dominion Energy’s funding policy, which is to contribute annually an amount that is in accordance with ERISA. Virginia Power made no contribution payments to the Dominion Energy Pension Plan during 2024 and 2023. During 2022, Virginia Power made payments to Dominion Energy of $172 million, related to its participation in the Dominion Energy Pension Plan. Virginia Power’s net periodic pension cost related to this plan was $49 million, $34 million and $72 million in 2024, 2023 and 2022, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Virginia Power’s Consolidated Statements of Income. The funded status of various Dominion Energy subsidiary groups and employee compensation are the basis for determining the share of total pension costs for participating Dominion Energy subsidiaries. See Note 25 for Virginia Power amounts due to/from Dominion Energy related to this plan. Retiree healthcare and life insurance benefits, for Virginia Power employees are covered by the Dominion Energy Retiree Health and Welfare Plan described above. Virginia Power’s net periodic benefit (credit) cost related to this plan was $(72) million, $(60) million and $(81) million in 2024, 2023 and 2022, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Virginia Power’s Consolidated Statements of Income. Employee headcount is the basis for determining the share of total other postretirement benefit costs for participating Dominion Energy subsidiaries. See Note 25 for Virginia Power amounts due to/from Dominion Energy related to this plan. Dominion Energy holds investments in trusts to fund employee benefit payments for the pension and other postretirement benefit plans in which Virginia Power’s employees participate. Any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash that Virginia Power will provide to Dominion Energy for its share of employee benefit plan contributions. Virginia Power funds other postretirement benefit costs through VEBAs. During 2024, 2023 and 2022, Virginia Power made no contributions to the VEBAs and does no t expect to contribute to the VEBAs in 2025. Defined Contribution Plans Dominion Energy also sponsors defined contribution employee savings plans that cover substantially all employees. During 2024, 2023 and 2022, Dominion Energy recognized $82 million, $85 million and $75 million, respectively, as employer matching contributions to these plans, excluding discontinued operations. Virginia Power also participates in these employee savings plans. During 2024, 2023 and 2022, Virginia Power recognized $29 million, $26 million and $22 million, respectively, as employer matching contributions to these plans.

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