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Short Term Debt and Credit Agreements
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Short-Term Debt and Credit Agreements

NOTE 17. SHORT-TERM DEBT AND CREDIT AGREEMENTS

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties.

Dominion Energy

Dominion Energy’s short-term financing is supported by its $6.0 billion joint revolving credit facility that provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives. Commercial paper and letters of credit outstanding, as well as capacity available under the credit facility were as follows:

 

 

Facility Limit

 

 

Outstanding Commercial Paper(1)

 

 

Outstanding Letters of Credit

 

 

Facility Capacity Available

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Joint revolving credit facility(2)(3)

 

$

6,000

 

 

$

2,061

 

 

$

10

 

 

$

3,929

 

At December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Joint revolving credit facility(2)

 

$

6,000

 

 

$

3,547

 

 

$

16

 

 

$

2,437

 
(1)
The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s credit facility was 4.74% and 5.69% at December 31, 2024 and 2023, respectively.
(2)
This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $2.0 billion of letters of credit.
(3)
In May 2024, the joint revolving credit facility was amended to remove Questar Gas as a co-borrower.

 

DESC’s short-term financings are supported through its access as a co-borrower to the joint revolving credit facility discussed above with the Companies. At December 31, 2024, the sub-limit for DESC was $500 million.

 

In March 2023, FERC granted DESC authority through March 2025 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $2.2 billion outstanding with maturity dates of one year or less. In addition, in March 2023, FERC granted GENCO authority through March 2025 to issue short-term indebtedness not to exceed $200 million outstanding with maturity dates of one year or less. In January 2025, DESC and GENCO applied to FERC for a two-year short-term borrowing authorization in amounts not to exceed $1.8 billion and $300 million, respectively. The applications are pending.

 

In addition to the credit facility mentioned above, Dominion Energy had the following credit facilities and agreements:

 

•
A credit facility which allowed it to issue up to approximately $30 million in letters of credit, which matured in June 2024. At December 31, 2023, Dominion Energy had $25 million in letters of credit outstanding under this facility.
•
An agreement entered into with a financial institution in March 2023, which it expects to allow it to issue up to $100 million in letters of credit. At December 31, 2024 and 2023, $48 million and $54 million in letters of credit were issued and outstanding under this agreement, respectively.
•
An agreement entered into with a financial institution in June 2024, subsequently amended in January 2025, which it expects to allow it to issue up to a combined $275 million in letters of credit at either Dominion Energy or Virginia Power. At December 31, 2024, Dominion Energy had $88 million in letters of credit issued and outstanding under this agreement, including $77 million for Virginia Power.
•
An agreement entered into with a financial institution in January 2025, which it expects to allow it to issue up to a combined $150 million in letters of credit, with $50 million available to Dominion Energy and $100 million available to Virginia Power. Through February 2025, Virginia Power had issued $50 million in letters of credit.

 

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated

maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At December 31, 2024 and 2023, Dominion Energy’s Consolidated Balance Sheets include $439 million and $409 million, respectively, presented within short-term debt with weighted-average interest rates of 4.50% and 5.50%, respectively. The proceeds are used for general corporate purposes and to repay debt.

In January 2023, Dominion Energy entered into a $2.5 billion 364-day term loan facility which bore interest at a variable rate and was scheduled to mature in January 2024 with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes. Concurrently, Dominion Energy borrowed an initial $1.0 billion with the proceeds used to repay long-term debt. In February and March 2023, Dominion Energy borrowed $500 million and $1.0 billion, respectively, with the proceeds used for general corporate purposes and to repay long-term debt. At December 31, 2023, Dominion Energy’s Consolidated Balance Sheet included $2.5 billion with respect to such facility presented within securities due within one year. In January 2024, the facility was amended to mature July 2024. The amended agreement contained certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the East Ohio, Questar Gas and PSNC Transactions be applied to any outstanding borrowings under the facility. In March 2024, Dominion Energy repaid the full $2.5 billion outstanding using after-tax proceeds received in connection with the East Ohio Transaction. The maximum allowed total debt to total capital ratio under the facility was consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

In July 2023, Dominion Energy entered into two $600 million 364-day term loan facilities which bore interest at a variable rate and were scheduled to mature in July 2024 with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes. Subsequently in July 2023, Dominion Energy borrowed an initial $750 million in the aggregate under these facilities with the proceeds used to repay short-term debt and for general corporate purposes. Dominion Energy was permitted to make up to three additional borrowings under each agreement through November 2023, at which point any unused capacity would cease to be available to Dominion Energy. The agreements contained certain mandatory early repayment provisions, including that any after-tax proceeds in connection with a sale of Dominion Energy’s noncontrolling interest in Cove Point, following the repayment of DECP Holding’s term loan secured by its noncontrolling interest in Cove Point, be applied to any outstanding borrowings under the facilities. In September 2023, Dominion Energy repaid the $750 million borrowing with after-tax proceeds from the sale of Dominion Energy’s noncontrolling interest in Cove Point, as discussed in Note 9. Subsequently in September 2023, Dominion Energy borrowed $225 million in the aggregate under these facilities with the proceeds used to repay short-term debt and for general corporate purposes. In October 2023, Dominion Energy repaid the $225 million borrowing and terminated the facilities along with any remaining unused commitments.

In October 2023, Dominion Energy entered into a $2.25 billion 364-day term loan facility which bore interest at a variable rate with the proceeds to be used for general corporate purposes, which was scheduled to mature in October 2024. Concurrently, Dominion Energy borrowed an initial $1.0 billion with the proceeds used for general corporate purposes, including to repay short-term and long-term debt. In November and December 2023, Dominion Energy borrowed $500 million and $750 million, respectively, with the proceeds used for general corporate purposes. Dominion Energy also had the ability through August 2024 to request an increase in the amount of this facility by up to an additional $500 million. The agreement contained certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the East Ohio, PSNC and Questar Gas Transactions, following the repayment of the 364-day term loan facility entered into in January 2023, be applied to any outstanding borrowings under this facility. At December 31, 2023, Dominion Energy’s Consolidated Balance Sheet included $2.25 billion with respect to such facility presented within securities due within one year. In March 2024, Dominion Energy repaid $1.8 billion using after-tax proceeds received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested and received a $500 million increase to the amount of the facility and concurrently borrowed $500 million with the proceeds used for general corporate purposes. In May 2024, Dominion Energy repaid the full $976 million outstanding under the facility, using after-tax proceeds received in connection with the Questar Gas Transaction. The maximum allowed total debt to total capital ratio under this facility was consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

Virginia Power

Virginia Power’s short-term financing is supported through its access as co-borrower to Dominion Energy’s $6.0 billion joint revolving credit facility. The credit facility can be used for working capital, as support for the combined commercial paper programs of the borrowers under the credit facility and for other general corporate purposes.

Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy, Questar Gas (through May 2024) and DESC were as follows:

 

 

Facility Limit

 

 

Outstanding Commercial Paper(1)

 

 

Outstanding Letters of Credit

 

(millions)

 

 

 

 

 

 

 

 

 

At December 31, 2024

 

 

 

 

 

 

 

 

 

Joint revolving credit facility(2)(3)

 

$

6,000

 

 

$

950

 

 

$

10

 

At December 31, 2023

 

 

 

 

 

 

 

 

 

Joint revolving credit facility(2)

 

$

6,000

 

 

$

455

 

 

$

10

 
(1)
The weighted-average interest rates of the outstanding commercial paper supported by the credit facility was 4.73% and 5.65% at December 31, 2024 and 2023, respectively.
(2)
The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy and DESC. The sub-limit for Virginia Power is set pursuant to the terms of the facility but can be changed at the option of the borrowers multiple times per year. At December 31, 2024, the sub-limit for Virginia Power was $1.75 billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $2.0 billion (or the sub-limit, whichever is less) of letters of credit.
(3)
In May 2024, the joint revolving credit facility was amended to remove Questar Gas as a co-borrower.

In addition to the credit facility mentioned above, Virginia Power had the following credit facilities and agreements:

•
A credit facility entered into in January 2023 which allowed it to issue up to $125 million in letters of credit and was scheduled to mature in January 2026. At December 31, 2023, less than $1 million in letters of credit were issued and outstanding under this facility with no amounts drawn under the letters of credit. As of March 2024, the credit facility had been terminated.
•
An agreement entered into with a financial institution in March 2023, which it expects to allow it to issue up to $300 million in letters of credit. At December 31, 2024 and 2023, $112 million and $124 million, respectively, in letters of credit were issued and outstanding under this agreement.
•
An agreement entered into with a financial institution in June 2024, subsequently amended in January 2025, which it expects to allow it to issue up to a combined $275 million in letters of credit at either Dominion Energy or Virginia Power. At December 31, 2024, Virginia Power had $77 million, out of Dominion Energy’s total $88 million, in letters of credit issued and outstanding under this agreement.
•
An agreement entered into with a financial institution in January 2025, which it expects to allow it to issue up to a combined $150 million in letters of credit, with $50 million available to Dominion Energy and $100 million available to Virginia Power. Through February 2025, Virginia Power had issued $50 million in letters of credit.