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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024. See Note 9 for additional information about the Companies’ derivatives and hedge accounting activities.

The Companies enter into certain physical and financial forwards, futures and options, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical and financial forwards and futures contracts. An option model is used to value Level 3 physical options. The discounted cash flow model for forwards and futures calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. The inputs into the option models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices and volumes. For Level 3 fair value measurements, certain forward market prices and implied price volatilities are considered unobservable.

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at September 30, 2025. The range and weighted-average are presented in dollars for market price inputs and percentages for price volatility.

 

 

 

 

 

 

 

Dominion Energy

 

Virginia Power

 

 

Valuation
Techniques

 

Unobservable
Input

 

Fair Value (millions)

 

 

Range

 

Weighted -average(1)

 

Fair Value (millions)

 

 

Range

 

Weighted -average(1)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

Discounted cash flow

 

Market price (per Dth)(3)

 

$

41

 

 

(2)-4

 

(1)

 

$

41

 

 

(2)-2

 

(1)

FTRs

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

119

 

 

(4)-15

 

7

 

 

119

 

 

(4)-15

 

7

Electricity

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

230

 

 

30-116

 

54

 

 

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

Option model

 

Market price (per Dth)(3)

 

 

56

 

 

1-9

 

4

 

 

8

 

 

3-8

 

5

 

 

 

Price volatility(4)

 

 

 

 

11%-73%

 

44%

 

 

 

 

14%-71%

 

41%

Total assets

 

 

 

 

 

$

446

 

 

 

 

 

 

$

168

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity

 

Discounted cash flow

 

Market price (per MWh)(3)

 

 

35

 

 

30-123

 

66

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents volatilities unrepresented in published markets.

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable Inputs

 

Position

 

Change to Input

 

Impact on Fair Value Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)

Price volatility

 

Buy

 

Increase (decrease)

 

Gain (loss)

Price volatility

 

Sell

 

Increase (decrease)

 

Loss (gain)

 

Nonrecurring Fair Value Measurements

See Note 11 for information regarding impairment charges recorded by Dominion Energy associated with a corporate office building and nonregulated renewable natural gas facilities.

Recurring Fair Value Measurements

The following table presents the Companies’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

82

 

 

$

446

 

 

$

528

 

 

$

—

 

 

$

27

 

 

$

168

 

 

$

195

 

Interest rate

 

 

—

 

 

 

190

 

 

 

—

 

 

 

190

 

 

 

—

 

 

 

77

 

 

 

—

 

 

 

77

 

Foreign currency exchange rate

 

 

—

 

 

 

32

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

32

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

6,205

 

 

 

2

 

 

 

—

 

 

 

6,207

 

 

 

3,187

 

 

 

2

 

 

 

—

 

 

 

3,189

 

International

 

 

180

 

 

 

—

 

 

 

—

 

 

 

180

 

 

 

105

 

 

 

—

 

 

 

—

 

 

 

105

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

512

 

 

 

—

 

 

 

512

 

 

 

—

 

 

 

288

 

 

 

—

 

 

 

288

 

Government securities

 

 

161

 

 

 

1,689

 

 

 

—

 

 

 

1,850

 

 

 

91

 

 

 

993

 

 

 

—

 

 

 

1,084

 

Cash equivalents and other

 

 

33

 

 

 

—

 

 

 

—

 

 

 

33

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total assets

 

$

6,579

 

 

$

2,507

 

 

$

446

 

 

$

9,532

 

 

$

3,383

 

 

$

1,419

 

 

$

168

 

 

$

4,970

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

108

 

 

$

35

 

 

$

143

 

 

$

—

 

 

$

25

 

 

$

—

 

 

$

25

 

Interest rate

 

 

—

 

 

 

114

 

 

 

—

 

 

 

114

 

 

 

—

 

 

 

55

 

 

 

—

 

 

 

55

 

Foreign currency exchange rate

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

Total liabilities

 

$

—

 

 

$

232

 

 

$

35

 

 

$

267

 

 

$

—

 

 

$

90

 

 

$

—

 

 

$

90

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

95

 

 

$

399

 

 

$

494

 

 

$

—

 

 

$

45

 

 

$

70

 

 

$

115

 

Interest rate

 

 

—

 

 

 

875

 

 

 

—

 

 

 

875

 

 

 

—

 

 

 

230

 

 

 

—

 

 

 

230

 

Foreign currency exchange rate

 

 

—

 

 

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

30

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

5,403

 

 

 

2

 

 

 

—

 

 

 

5,405

 

 

 

2,769

 

 

 

2

 

 

 

—

 

 

 

2,771

 

International

 

 

165

 

 

 

—

 

 

 

—

 

 

 

165

 

 

 

99

 

 

 

—

 

 

 

—

 

 

 

99

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

518

 

 

 

—

 

 

 

518

 

 

 

—

 

 

 

294

 

 

 

—

 

 

 

294

 

Government securities

 

 

138

 

 

 

1,605

 

 

 

—

 

 

 

1,743

 

 

 

85

 

 

 

939

 

 

 

—

 

 

 

1,024

 

Cash equivalents and other

 

 

29

 

 

 

—

 

 

 

—

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total assets

 

$

5,735

 

 

$

3,125

 

 

$

399

 

 

$

9,259

 

 

$

2,953

 

 

$

1,540

 

 

$

70

 

 

$

4,563

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

108

 

 

$

15

 

 

$

123

 

 

$

—

 

 

$

31

 

 

$

2

 

 

$

33

 

Interest rate

 

 

—

 

 

 

197

 

 

 

—

 

 

 

197

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency exchange rate

 

 

—

 

 

 

192

 

 

 

—

 

 

 

192

 

 

 

—

 

 

 

192

 

 

 

—

 

 

 

192

 

Total liabilities

 

$

—

 

 

$

497

 

 

$

15

 

 

$

512

 

 

$

—

 

 

$

223

 

 

$

2

 

 

$

225

 

 

(1)
Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $205 million and $212 million of assets at Dominion Energy, inclusive of $71 million and $76 million at Virginia Power, at September 30, 2025 and December 31, 2024, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

The following table presents the net change in the Companies’ assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended September 30,

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

414

 

 

$

360

 

 

$

384

 

 

$

86

 

 

$

179

 

 

$

105

 

 

$

68

 

 

$

(116

)

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

(24

)

 

 

13

 

 

 

(14

)

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

115

 

 

 

14

 

 

 

233

 

 

 

(134

)

 

 

106

 

 

 

10

 

 

 

222

 

 

 

(136

)

Discontinued operations

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

Included in regulatory assets/liabilities

 

 

33

 

 

 

(77

)

 

 

76

 

 

 

230

 

 

 

(11

)

 

 

(7

)

 

 

102

 

 

 

219

 

Settlements

 

 

(126

)

 

 

(40

)

 

 

(275

)

 

 

54

 

 

 

(106

)

 

 

(17

)

 

 

(232

)

 

 

103

 

Purchases

 

 

—

 

 

 

2

 

 

 

8

 

 

 

30

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

21

 

Transfers out of Level 3

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

411

 

 

$

269

 

 

$

411

 

 

$

269

 

 

$

168

 

 

$

91

 

 

$

168

 

 

$

91

 

 

Dominion Energy had $(24) million and $(14) million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and nine months ended September 30, 2025, respectively, and $12 million and $7 million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and nine months ended September 30, 2024, respectively. Virginia Power had no unrealized gains or losses for the three and nine months ended September 30, 2025 and 2024.

 

Fair Value of Financial Instruments

Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these instruments.

For the Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Carrying
Amount

 

 

Estimated
Fair
Value(1)

 

 

Carrying
Amount

 

 

Estimated
Fair
Value(1)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

39,642

 

 

$

38,383

 

 

$

21,798

 

 

$

20,725

 

Securitization bonds(3)

 

 

1,136

 

 

 

1,158

 

 

 

1,136

 

 

 

1,158

 

Junior subordinated notes(2)

 

 

4,731

 

 

 

4,981

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

34,533

 

 

$

32,167

 

 

$

19,224

 

 

$

17,578

 

Securitization bonds(3)

 

 

1,217

 

 

 

1,218

 

 

 

1,217

 

 

 

1,218

 

Junior subordinated notes(2)

 

 

3,223

 

 

 

3,372

 

 

 

 

 

 

 

 

(1)
Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.
(2)
Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at September 30, 2025 and December 31, 2024.
(3)
Carrying amount includes current portions included in securities due within one year.