filings.toolsItem 8. Financial Statements and Supplementary Data
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Item 8. Financial Statements and Supplementary Data
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Dominion Energy, Inc.
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Dominion Energy, Inc. and subsidiaries ("Dominion Energy") at December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Dominion Energy at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), Dominion Energy’s internal control over financial reporting at December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2026, expressed an unqualified opinion on Dominion Energy’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of Dominion Energy’s management. Our responsibility is to express an opinion on Dominion Energy’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Dominion Energy in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Assets and Liabilities - Impact of Rate Regulation on the Consolidated Financial Statements — Refer to Notes 2, 12 and 13 to the Consolidated Financial Statements
Critical Audit Matter Description
Dominion Energy, through its regulated electric and gas subsidiaries, is subject to rate regulation by certain state public utility commissions and the Federal Energy Regulatory Commission (“FERC”) (collectively, the “relevant commissions”) which have jurisdiction with respect to the rates of electric and gas utility companies. Management has determined its rate-regulated subsidiaries meet the requirements under accounting principles generally accepted in the United States of America to apply the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant and equipment, net; regulatory assets; regulatory liabilities; operating revenues; electric fuel and other energy-related purchases; purchased electric capacity; purchased gas; other operations and maintenance expense; depreciation and amortization expense; and impairment of assets and other charges, collectively, the “financial statement impacts of rate regulation.”
Revenue provided by Dominion Energy’s electric transmission, distribution and generation operations and its gas distribution operations is primarily based on rates approved by the relevant commissions. Further, Virginia Electric and Power Company’s (“Virginia Power”) retail base rates, terms and conditions for generation and distribution services to customers in Virginia are reviewed by the Virginia State Corporation Commission (the “Virginia Commission”) in a proceeding that involves the determination of Virginia Power’s actual earned return on equity (“ROE”) during a historic test period, and determination of Virginia Power’s authorized ROE prospectively. Under certain circumstances, Virginia Power may be required to credit a portion of its earnings to customers.
When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. In addition, a loss is recognized if it becomes probable that capital expenditures will be disallowed for ratemaking purposes and if a reasonable estimate of the amount of the disallowance can be made. Dominion Energy evaluates whether recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on orders issued by regulatory commissions, legislation and judicial actions; past experience; discussions with applicable regulatory authorities and legal counsel; estimated construction costs; forecasted earnings; and considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters, and unplanned outages of facilities.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to
support its assertions about the financial statement impacts of rate regulation. Management judgments include assessing the likelihood of (1) recovery of its regulatory assets through future rates and (2) whether a regulatory liability is due to customers. Given management’s accounting judgments are based on assumptions about the outcome of future decisions by the relevant commissions, auditing these judgments required specialized knowledge of the accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable included the following, among others:
We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) recovery of regulatory assets through future rates, and (2) whether a regulatory liability is due to customers. We also tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory and legislative developments that may impact the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable.
We evaluated Dominion Energy’s disclosures related to the financial statement impacts of rate regulation.
We read and evaluated orders issued by the relevant commissions, as well as relevant regulatory statutes, interpretations, procedural memorandums, existing laws and other publicly available information to assess whether this external information was properly considered by management in concluding upon the financial statement impacts of rate regulation.
We considered the likelihood of (1) recovery of regulatory assets through future rates and (2) whether a regulatory liability is due to customers based on precedents established by the relevant commissions’ previous orders and Dominion Energy’s past experience with the relevant commissions, which included testing Dominion Energy’s recorded charges for costs not expected to be recovered from customers on the CVOW Commercial Project.
For regulatory matters in process, we inspected associated documents and testimony filed with the relevant commissions for any evidence that might contradict management’s assertions.
We read and analyzed the minutes of the Boards of Directors of Dominion Energy and Dominion Energy’s rate-regulated subsidiaries for discussions of changes in legal, regulatory, or business factors which could impact management’s conclusions with respect to the financial statement impacts of rate regulation.
/s/ Deloitte & Touche LLP
Richmond, Virginia
February 23, 2026
We have served as Dominion Energy’s auditor since 1988.
Dominion Energy, Inc.
Consolidated Statements of Income
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions, except per share amounts) | ||||||||||||
| Operating Revenue | $ | 16,506 | $ | 14,459 | $ | 14,393 | ||||||
| Operating Expenses | ||||||||||||
| Electric fuel and other energy-related purchases | 4,489 | 3,614 | 3,935 | |||||||||
| Purchased electric capacity | 82 | 74 | 55 | |||||||||
| Purchased gas | 297 | 260 | 285 | |||||||||
| Other operations and maintenance | 3,547 | 3,588 | 3,133 | |||||||||
| Depreciation and amortization | 2,387 | 2,345 | 2,580 | |||||||||
| Other taxes | 773 | 731 | 684 | |||||||||
| Impairment of assets and other charges | 517 | 600 | 307 | |||||||||
| Total operating expenses | 12,092 | 11,212 | 10,979 | |||||||||
| Income from operations | 4,414 | 3,247 | 3,414 | |||||||||
| Other income (expense) | 1,219 | 841 | 996 | |||||||||
| Interest and related charges | 2,022 | 1,893 | 1,679 | |||||||||
| Income from continuing operations including noncontrolling interests before income tax expense | 3,611 | 2,195 | 2,731 | |||||||||
| Income tax expense | 532 | 411 | 644 | |||||||||
| Net Income From Continuing Operations Including Noncontrolling Interests | 3,079 | 1,784 | 2,087 | |||||||||
| Net Income (Loss) From Discontinued Operations Including Noncontrolling Interests**(1)** | **(**14 | ) | 197 | (125 | ) | |||||||
| Net Income Including Noncontrolling Interests | 3,065 | 1,981 | 1,962 | |||||||||
| Noncontrolling Interests | 67 | (53 | ) | — | ||||||||
| Net Income Attributable to Dominion Energy | $ | 2,998 | $ | 2,034 | $ | 1,962 | ||||||
| Amounts Attributable to Dominion Energy | ||||||||||||
| Net income from continuing operations | $ | 3,012 | $ | 1,837 | $ | 2,087 | ||||||
| Net income (loss) from discontinued operations | **(**14 | ) | 197 | (125 | ) | |||||||
| Net income attributable to Dominion Energy | $ | 2,998 | $ | 2,034 | $ | 1,962 | ||||||
| EPS - Basic | ||||||||||||
| Net income from continuing operations | $ | 3.48 | $ | 2.09 | $ | 2.40 | ||||||
| Net income (loss) from discontinued operations | **(**0.02 | ) | 0.24 | (0.15 | ) | |||||||
| Net income attributable to Dominion Energy | $ | 3.46 | $ | 2.33 | $ | 2.25 | ||||||
| EPS - Diluted | ||||||||||||
| Net income from continuing operations | $ | 3.47 | $ | 2.09 | $ | 2.40 | ||||||
| Net income (loss) from discontinued operations | **(**0.02 | ) | 0.24 | (0.15 | ) | |||||||
| Net income attributable to Dominion Energy | $ | 3.45 | $ | 2.33 | $ | 2.25 |
(1)
*Includes income tax expense of $*5 *million, $*31 million and $1.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
Dominion Energy, Inc.
Consolidated Statements of Comprehensive Income
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Net income including noncontrolling interests | $ | 3,065 | $ | 1,981 | $ | 1,962 | ||||||
| Other comprehensive income (loss), net of taxes: | ||||||||||||
| Net deferred gains (losses) on derivatives-hedging activities, net of $(2), $(4) and $1 tax | 5 | 13 | — | |||||||||
| Changes in unrealized net gains (losses) on investment securities, net of $(11), $13 and $(27) tax | 15 | (19 | ) | 47 | ||||||||
| Changes in net unrecognized pension and other postretirement benefit costs (credits), net of $—, $1 and $— tax | — | (2 | ) | — | ||||||||
| Amounts reclassified to net income (loss): | ||||||||||||
| Net derivative (gains) losses-hedging activities, net of $(10), $(11) and $(10) tax | 29 | 32 | 33 | |||||||||
| Net realized (gains) losses on investment securities, net of $2, $(3) and $3 tax | **(**5 | ) | 8 | (11 | ) | |||||||
| Net pension and other postretirement benefit costs (credits), net of $2, $4 and $5 tax | **(**10 | ) | (12 | ) | (13 | ) | ||||||
| Net earnings from equity method investees, net of $—, $— and $(1) tax | — | — | 3 | |||||||||
| Total other comprehensive income (loss) | 34 | 20 | 59 | |||||||||
| Comprehensive income including noncontrolling interests | 3,099 | 2,001 | 2,021 | |||||||||
| Comprehensive income (loss) attributable to noncontrolling interests | 67 | (53 | ) | — | ||||||||
| Comprehensive income attributable to Dominion Energy | $ | 3,032 | $ | 2,054 | $ | 2,021 |
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
Dominion Energy, Inc.
Consolidated Balance Sheets
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents(1) | $ | 250 | $ | 310 | ||||
| Customer receivables (less allowance for doubtful accounts of $31 and $30)(1) | 2,531 | 2,169 | ||||||
| Tax receivables | 434 | — | ||||||
| Other receivables (less allowance for doubtful accounts of $3 and $2)(2) | 446 | 358 | ||||||
| Inventories: | ||||||||
| Materials and supplies | 1,541 | 1,360 | ||||||
| Fossil fuel | 392 | 382 | ||||||
| Gas stored | 24 | 22 | ||||||
| Derivative assets | 335 | 436 | ||||||
| Margin deposit assets | 181 | 104 | ||||||
| Prepayments(1) | 377 | 315 | ||||||
| Regulatory assets(1) | 1,380 | 992 | ||||||
| Other(1) | 180 | 165 | ||||||
| Total current assets | 8,071 | 6,613 | ||||||
| Investments | ||||||||
| Nuclear decommissioning trust funds | 9,166 | 8,051 | ||||||
| Investment in equity method affiliates | 132 | 138 | ||||||
| Other | 378 | 361 | ||||||
| Total investments | 9,676 | 8,550 | ||||||
| Property, Plant and Equipment | ||||||||
| Property, plant and equipment(1) | 106,315 | 94,844 | ||||||
| Accumulated depreciation and amortization | **(**27,348 | ) | (25,982 | ) | ||||
| Total property, plant and equipment, net | 78,967 | 68,862 | ||||||
| Deferred Charges and Other Assets | ||||||||
| Goodwill | 4,143 | 4,143 | ||||||
| Pension and other postretirement benefit assets | 2,658 | 2,240 | ||||||
| Intangible assets, net | 1,682 | 1,136 | ||||||
| Derivative assets | 623 | 963 | ||||||
| Regulatory assets(1) | 8,276 | 8,288 | ||||||
| Other(1) | 1,761 | 1,620 | ||||||
| Total deferred charges and other assets | 19,143 | 18,390 | ||||||
| Total assets | $ | 115,857 | $ | 102,415 |
(1)
See Note 16 for amounts attributable to VIEs*.*
(2)
See Note 9 for amounts attributable to related parties.
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Securities due within one year(1) | $ | 2,409 | $ | 1,725 | ||||
| Supplemental credit facility borrowings | — | — | ||||||
| Short-term debt | 2,457 | 2,500 | ||||||
| Accounts payable | 1,338 | 1,149 | ||||||
| Accrued interest, payroll and taxes(1) | 1,244 | 1,045 | ||||||
| Derivative liabilities | 111 | 207 | ||||||
| Regulatory liabilities | 542 | 579 | ||||||
| Other(2) | 2,343 | 2,084 | ||||||
| Total current liabilities | 10,444 | 9,289 | ||||||
| Long-Term Debt | ||||||||
| Long-term debt | 36,778 | 33,034 | ||||||
| Securitization bonds(1) | 883 | 1,054 | ||||||
| Junior subordinated notes | 5,978 | 3,223 | ||||||
| Supplemental credit facility borrowings | — | — | ||||||
| Other | 436 | 214 | ||||||
| Total long-term debt | 44,075 | 37,525 | ||||||
| Deferred Credits and Other Liabilities | ||||||||
| Deferred income taxes | 7,885 | 7,135 | ||||||
| Deferred investment tax credits | 1,591 | 1,070 | ||||||
| Regulatory liabilities | 9,072 | 8,761 | ||||||
| Asset retirement obligations(1) | 7,204 | 7,074 | ||||||
| Derivative liabilities | 134 | 305 | ||||||
| Other | 2,035 | 1,454 | ||||||
| Total deferred credits and other liabilities | 27,921 | 25,799 | ||||||
| Total liabilities | 82,440 | 72,613 | ||||||
| Commitments and Contingencies (see Note 23) | ||||||||
| Equity | ||||||||
| Preferred stock (See Note 19) | 991 | 991 | ||||||
| Common stock – no par(3) | 25,892 | 24,383 | ||||||
| Retained earnings | 2,318 | 1,641 | ||||||
| Accumulated other comprehensive loss | **(**118 | ) | (152 | ) | ||||
| Shareholders’ equity | 29,083 | 26,863 | ||||||
| Noncontrolling interests | 4,334 | 2,939 | ||||||
| Total equity | 33,417 | 29,802 | ||||||
| Total liabilities and equity | $ | 115,857 | $ | 102,415 |
(1)
See Note 16 for amounts attributable to VIEs.
(2)
See Note 9 for amounts attributable to related parties.
(3)
1.8 billion shares authorized; 879 million shares and 852 million shares outstanding at December 31, 2025 and 2024*, respectively.*
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
Dominion Energy, Inc.
Consolidated Statements of Equity
| Preferred Stock | Common Stock | ||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Retained Earnings | AOCI | Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||
| (millions except per share amounts) | |||||||||||||||||||||||||||
| December 31, 2022 | 2 | $ | 1,783 | 835 | $ | 23,605 | $ | 2,276 | $ | (231 | ) | $ | 27,433 | $ | — | $ | 27,433 | ||||||||||
| Net income including noncontrolling interests | 1,962 | 1,962 | 1,962 | ||||||||||||||||||||||||
| Issuance of stock | 2 | 94 | 94 | 94 | |||||||||||||||||||||||
| Stock awards (net of change in unearned compensation) | 1 | 30 | 30 | 30 | |||||||||||||||||||||||
| Preferred stock dividends (See Note 19) | (81 | ) | (81 | ) | (81 | ) | |||||||||||||||||||||
| Common dividends ($2.67 per common share) | (2,233 | ) | (2,233 | ) | (2,233 | ) | |||||||||||||||||||||
| Other comprehensive income, net of tax | 59 | 59 | 59 | ||||||||||||||||||||||||
| Other | (1 | ) | 1 | — | — | ||||||||||||||||||||||
| December 31, 2023 | 2 | $ | 1,783 | 838 | $ | 23,728 | $ | 1,925 | $ | (172 | ) | $ | 27,264 | $ | — | $ | 27,264 | ||||||||||
| Net income including noncontrolling interests | 2,034 | 2,034 | (53 | ) | 1,981 | ||||||||||||||||||||||
| Issuance of stock | 14 | 732 | 732 | 732 | |||||||||||||||||||||||
| Sale of noncontrolling interest in OSWP | (107 | ) | (107 | ) | 2,615 | 2,508 | |||||||||||||||||||||
| Contributions from Stonepeak to OSWP | 377 | 377 | |||||||||||||||||||||||||
| Stock awards (net of change in unearned compensation) | — | 30 | 30 | 30 | |||||||||||||||||||||||
| Repurchase and redemption of preferred stock | (1 | ) | (791 | ) | (791 | ) | (791 | ) | |||||||||||||||||||
| Preferred stock dividends (See Note 19) | (78 | ) | (78 | ) | (78 | ) | |||||||||||||||||||||
| Common dividends ($2.67 per common share) | (2,239 | ) | (2,239 | ) | (2,239 | ) | |||||||||||||||||||||
| Other comprehensive income, net of tax | 20 | 20 | 20 | ||||||||||||||||||||||||
| Other | (1 | ) | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||||
| December 31, 2024 | 1 | $ | 991 | 852 | $ | 24,383 | $ | 1,641 | $ | (152 | ) | $ | 26,863 | $ | 2,939 | $ | 29,802 | ||||||||||
| Net income including noncontrolling interests | 2,998 | 2,998 | 67 | 3,065 | |||||||||||||||||||||||
| Issuance of stock | 27 | 1,488 | 1,488 | 1,488 | |||||||||||||||||||||||
| Sale of noncontrolling interest in OSWP | **(**7 | ) | **(**7 | ) | **(**7 | ) | |||||||||||||||||||||
| Contributions from Stonepeak to OSWP | 1,569 | 1,569 | |||||||||||||||||||||||||
| Distributions from OSWP to Stonepeak | **(**241 | ) | **(**241 | ) | |||||||||||||||||||||||
| Stock awards (net of change in unearned compensation) | — | 28 | 28 | 28 | |||||||||||||||||||||||
| Preferred stock dividends (See Note 19) | **(**44 | ) | **(**44 | ) | **(**44 | ) | |||||||||||||||||||||
| Common dividends ($2.67 per common share) | **(**2,278 | ) | **(**2,278 | ) | **(**2,278 | ) | |||||||||||||||||||||
| Other comprehensive income, net of tax | 34 | 34 | 34 | ||||||||||||||||||||||||
| Other | 1 | 1 | 1 | ||||||||||||||||||||||||
| December 31, 2025 | 1 | $ | 991 | 879 | $ | 25,892 | $ | 2,318 | $ | **(**118 | ) | $ | 29,083 | $ | 4,334 | $ | 33,417 |
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
Dominion Energy, Inc.
Consolidated Statements of Cash Flows
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Operating Activities | ||||||||||||
| Net income including noncontrolling interests | $ | 3,065 | $ | 1,981 | $ | 1,962 | ||||||
| Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||||||||||||
| Depreciation, depletion and amortization (including nuclear fuel) | 2,684 | 2,639 | 3,128 | |||||||||
| Deferred income taxes | 568 | (235 | ) | 1,527 | ||||||||
| Deferred investment tax credits (benefits) | 488 | (32 | ) | (37 | ) | |||||||
| Impairment of assets and other charges | 516 | 639 | 695 | |||||||||
| Losses (gains) on the East Ohio, Questar Gas and PSNC Transactions | — | 130 | — | |||||||||
| Losses (gains) on sales of assets and equity method investments (including Cove Point) | — | — | (657 | ) | ||||||||
| Net (gains) losses on nuclear decommissioning trusts funds and other investments | **(**546 | ) | (669 | ) | (474 | ) | ||||||
| Other adjustments | **(**43 | ) | 18 | 378 | ||||||||
| Changes in: | ||||||||||||
| Accounts receivable | **(**862 | ) | 208 | 147 | ||||||||
| Inventories | **(**187 | ) | (87 | ) | (198 | ) | ||||||
| Deferred fuel and purchased gas costs, net | **(**754 | ) | 727 | 975 | ||||||||
| Prepayments and deposits, net | **(**184 | ) | (108 | ) | 516 | |||||||
| Accounts payable | 66 | 76 | (506 | ) | ||||||||
| Accrued interest, payroll and taxes | 224 | (85 | ) | 175 | ||||||||
| Net realized and unrealized changes related to derivative activities | 730 | 236 | (35 | ) | ||||||||
| Pension and other postretirement benefits | **(**433 | ) | (208 | ) | (476 | ) | ||||||
| Other operating assets and liabilities | 29 | (212 | ) | (548 | ) | |||||||
| Net cash provided by operating activities | 5,361 | 5,018 | 6,572 | |||||||||
| Investing Activities | ||||||||||||
| Plant construction and other property additions (including nuclear fuel) | **(**12,641 | ) | (12,198 | ) | (10,211 | ) | ||||||
| Acquisition of solar development projects | **(**12 | ) | (229 | ) | (24 | ) | ||||||
| Proceeds from sale of noncontrolling interest in Cove Point | — | — | 3,293 | |||||||||
| Proceeds from East Ohio, Questar Gas and PSNC Transactions | 2 | 9,243 | — | |||||||||
| Proceeds from sales of securities | 10,492 | 3,072 | 2,966 | |||||||||
| Purchases of securities | **(**10,591 | ) | (3,213 | ) | (3,152 | ) | ||||||
| Proceeds from sales of assets | — | 35 | 47 | |||||||||
| Contributions to equity method affiliates | **(**24 | ) | (20 | ) | (104 | ) | ||||||
| Distributions from equity method affiliates | — | 126 | 1 | |||||||||
| Other | **(**195 | ) | 1 | (23 | ) | |||||||
| Net cash used in investing activities | **(**12,969 | ) | (3,183 | ) | (7,207 | ) | ||||||
| Financing Activities | ||||||||||||
| Issuance (repayment) of short-term debt, net | **(**43 | ) | (1,456 | ) | 533 | |||||||
| 364-day term loan facility borrowings | — | 3,000 | 5,725 | |||||||||
| Repayment of 364-day term loan facility borrowings | — | (7,750 | ) | (975 | ) | |||||||
| Issuance and remarketing of long-term debt | 8,897 | 5,993 | 3,310 | |||||||||
| Repayment and repurchase of long-term debt | **(**1,722 | ) | (2,740 | ) | (5,673 | ) | ||||||
| Issuance of securitization bonds | — | 1,282 | — | |||||||||
| Repayment of securitization bonds | **(**163 | ) | (65 | ) | — | |||||||
| Supplemental credit facility borrowings | — | — | 900 | |||||||||
| Supplemental credit facility repayments | — | (450 | ) | (900 | ) | |||||||
| Proceeds from sale of noncontrolling interest in OSWP | **(**88 | ) | 2,558 | — | ||||||||
| Contributions from Stonepeak to OSWP | 1,569 | 377 | — | |||||||||
| Distributions from OSWP to Stonepeak | **(**241 | ) | — | — | ||||||||
| Series B Preferred Stock repurchase and redemption | — | (801 | ) | — | ||||||||
| Issuance of common stock | 1,488 | 732 | 94 | |||||||||
| Common dividend payments | **(**2,278 | ) | (2,239 | ) | (2,233 | ) | ||||||
| Other | 167 | (212 | ) | (186 | ) | |||||||
| Net cash provided by (used in) financing activities | 7,586 | (1,771 | ) | 595 | ||||||||
| Increase (decrease) in cash, restricted cash and equivalents | **(**22 | ) | 64 | (40 | ) | |||||||
| Cash, restricted cash and equivalents at beginning of period | 365 | 301 | 341 | |||||||||
| Cash, restricted cash and equivalents at end of period | $ | 343 | $ | 365 | $ | 301 |
See Note 2 for disclosure of supplemental cash flow information.
The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholder of Virginia Electric and Power Company
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Virginia Electric and Power Company (a wholly-owned subsidiary of Dominion Energy, Inc.) and subsidiaries ("Virginia Power") at December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Virginia Power at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of Virginia Power’s management. Our responsibility is to express an opinion on Virginia Power’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Virginia Power in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Virginia Power is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of Virginia Power’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Assets and Liabilities - Impact of Rate Regulation on the Consolidated Financial Statements — Refer to Notes 2, 12 and 13 to the Consolidated Financial Statements
Critical Audit Matter Description
Virginia Power is subject to utility rate regulation by certain state public utility commissions and the Federal Energy Regulatory Commission (“FERC”) (collectively, the “relevant commissions”), which have jurisdiction with respect to the rates of electric utility companies in the territories Virginia Power serves. Management has determined Virginia Power meets the requirements under accounting principles generally accepted in the United States of America to apply the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures such as property, plant, and equipment, net; regulatory assets; regulatory liabilities; operating revenues; electric fuel and other energy-related purchases; purchased electric capacity; other operations and maintenance expense; depreciation and amortization expense; and impairment of assets and other charges (benefits), collectively, the “financial statement impacts of rate regulation”.
Revenue provided by Virginia Power’s electric transmission, distribution and generation operations is primarily based on rates approved by the relevant commissions. Further, Virginia Power’s retail base rates, terms and conditions for generation and distribution services to customers in Virginia are reviewed by the Virginia State Corporation Commission (the “Virginia Commission”) in a proceeding that involves the determination of Virginia Power’s actual earned return on equity (“ROE”) during a historic test period and determination of Virginia Power’s authorized ROE prospectively. Under certain circumstances, Virginia Power may be required to credit a portion of its earnings to customers.
When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. In addition, a loss is recognized if it becomes probable that capital expenditures will be disallowed for ratemaking purposes and if a reasonable estimate of the amount of the disallowance can be made. Virginia Power evaluates whether recovery of its regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and makes various assumptions in its analyses. These analyses are generally based on orders issued by regulatory commissions, legislation and judicial actions; past experience; discussions with applicable regulatory authorities and legal counsel; estimated construction costs; forecasted earnings; and considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events, and other natural disasters, and unplanned outages of facilities.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about the financial statement impacts of rate regulation. Management judgments include assessing the likelihood
of (1) recovery of its regulatory assets through future rates and (2) whether a regulatory liability is due to customers. Given management’s accounting judgments are based on assumptions about the outcome of future decisions by the relevant commissions, auditing these judgments required specialized knowledge of the accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable included the following, among others:
We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) recovery of regulatory assets through future rates, and (2) whether a regulatory liability is due to customers. We also tested the effectiveness of management’s controls over the initial recognition of amounts as regulatory assets or liabilities; and the monitoring and evaluation of regulatory and legislative developments that may impact the assessment of whether recovery of regulatory assets through future rates or a regulatory liability due to customers is probable.
We evaluated Virginia Power’s disclosures related to the financial statement impacts of rate regulation.
We read and evaluated orders issued by the relevant commissions, as well as relevant regulatory statutes, interpretations, procedural memorandums, existing laws and other publicly available information to assess whether this external information was properly considered by management in concluding upon the financial statement impacts of rate regulation.
We considered the likelihood of (1) recovery of regulatory assets through future rates and (2) whether a regulatory liability is due to customers based on precedents established by the relevant commissions’ previous orders and Virginia Power’s past experience with relevant commissions, which included testing Virginia Power’s recorded charges for costs not expected to be recovered from customers on the CVOW Commercial Project.
For regulatory matters in process, we inspected associated documents and testimony filed with the relevant commissions for any evidence that might contradict management’s assertions.
We read and analyzed the minutes of the Board of Directors of Dominion Energy, Inc. and the Board of Directors of Virginia Power, for discussions of changes in legal, regulatory, or business factors which could impact management’s conclusions with respect to the financial statement impacts of rate regulation.
/s/ Deloitte & Touche LLP
Richmond, Virginia
February 23, 2026
We have served as Virginia Power’s auditor since 1988.
Virginia Electric and Power Company
Consolidated Statements of Income
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Operating Revenue**(1)** | $ | 11,812 | $ | 10,235 | $ | 9,573 | ||||||
| Operating Expenses | ||||||||||||
| Electric fuel and other energy-related purchases(1) | 3,591 | 2,743 | 2,918 | |||||||||
| Purchased electric capacity | 71 | 68 | 46 | |||||||||
| Other operations and maintenance: | ||||||||||||
| Affiliated suppliers | 518 | 433 | 395 | |||||||||
| Other | 1,812 | 1,804 | 1,456 | |||||||||
| Depreciation and amortization | 1,630 | 1,644 | 1,871 | |||||||||
| Other taxes | 362 | 333 | 298 | |||||||||
| Impairment of assets and other charges | 516 | 292 | 115 | |||||||||
| Total operating expenses | 8,500 | 7,317 | 7,099 | |||||||||
| Income from operations | 3,312 | 2,918 | 2,474 | |||||||||
| Other income (expense) | 255 | 198 | 133 | |||||||||
| Interest and related charges(1) | 951 | 849 | 765 | |||||||||
| Income before income tax expense | 2,616 | 2,267 | 1,842 | |||||||||
| Income tax expense | 448 | 423 | 400 | |||||||||
| Net Income Including Noncontrolling Interests | $ | 2,168 | $ | 1,844 | $ | 1,442 | ||||||
| Noncontrolling Interests | 67 | (53 | ) | — | ||||||||
| Net Income Attributable to Virginia Power | $ | 2,101 | $ | 1,897 | $ | 1,442 |
(1)
See Note 25 for amounts attributable to affiliates.
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Virginia Electric and Power Company
Consolidated Statements of Comprehensive Income
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Net income including noncontrolling interests | $ | 2,168 | $ | 1,844 | $ | 1,442 | ||||||
| Other comprehensive income (loss), net of taxes: | ||||||||||||
| Net deferred gains (losses) on derivatives-hedging activities, net of $(1), $(4) and $— tax | 5 | 13 | (1 | ) | ||||||||
| Changes in unrealized net gains (losses) on investment securities, net of $—, $2 and $(4) tax | — | (5 | ) | 6 | ||||||||
| Amounts reclassified to net income (loss): | ||||||||||||
| Net derivative (gains) losses-hedging activities, net of $—, $— and $(1) tax | **(**1 | ) | — | — | ||||||||
| Net realized (gains) losses on investment securities, net of $(1), $(1) and $— tax | — | 3 | 1 | |||||||||
| Total other comprehensive income (loss) | 4 | 11 | 6 | |||||||||
| Comprehensive income including noncontrolling interests | $ | 2,172 | $ | 1,855 | $ | 1,448 | ||||||
| Comprehensive income (loss) attributable to noncontrolling interests | 67 | (53 | ) | — | ||||||||
| Comprehensive income attributable to Virginia Power | $ | 2,105 | $ | 1,908 | $ | 1,448 |
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Virginia Electric and Power Company
Consolidated Balance Sheets
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents(1) | $ | 170 | $ | 160 | ||||
| Customer receivables (less allowance for doubtful accounts of $25 and $23)(1) | 1,930 | 1,612 | ||||||
| Other receivables (less allowance for doubtful accounts of $3 and $2) | 252 | 168 | ||||||
| Affiliated receivables | 35 | 27 | ||||||
| Inventories (average cost method) | ||||||||
| Materials and supplies | 977 | 849 | ||||||
| Fossil fuel | 273 | 299 | ||||||
| Derivative assets(2) | 212 | 248 | ||||||
| Prepayments(1) | 63 | 64 | ||||||
| Regulatory assets(1) | 1,110 | 697 | ||||||
| Other(1) | 103 | 130 | ||||||
| Total current assets | 5,125 | 4,254 | ||||||
| Investments | ||||||||
| Nuclear decommissioning trust funds | 4,864 | 4,286 | ||||||
| Other | 4 | 4 | ||||||
| Total investments | 4,868 | 4,290 | ||||||
| Property, Plant and Equipment | ||||||||
| Property, plant and equipment(1) | 80,121 | 70,550 | ||||||
| Accumulated depreciation and amortization | **(**19,157 | ) | (18,033 | ) | ||||
| Total property, plant and equipment, net | 60,964 | 52,517 | ||||||
| Deferred Charges and Other Assets | ||||||||
| Pension and other postretirement benefit assets(2) | 729 | 663 | ||||||
| Intangible assets, net | 1,310 | 818 | ||||||
| Derivative assets(2) | 270 | 127 | ||||||
| Regulatory assets(1) | 4,526 | 4,537 | ||||||
| Other(1)(2) | 1,451 | 1,181 | ||||||
| Total deferred charges and other assets | 8,286 | 7,326 | ||||||
| Total assets | $ | 79,243 | $ | 68,387 |
(1)
See Note 16 for amounts attributable to VIEs.
(2)
See Note 25 for amounts attributable to affiliates.
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Securities due within one year(1) | $ | 1,366 | $ | 548 | ||||
| Short-term debt | 675 | 950 | ||||||
| Accounts payable(1) | 821 | 660 | ||||||
| Payables to affiliates | 216 | 133 | ||||||
| Accrued dividend(2) | — | 407 | ||||||
| Affiliated current borrowings | 1,173 | 500 | ||||||
| Accrued interest, payroll and taxes(1) | 450 | 366 | ||||||
| Asset retirement obligations | 372 | 321 | ||||||
| Regulatory liabilities | 374 | 385 | ||||||
| Derivative liabilities (2) | 22 | 139 | ||||||
| Other(1)(2) | 1,506 | 1,228 | ||||||
| Total current liabilities | 6,975 | 5,637 | ||||||
| Long-Term Debt | ||||||||
| Long-term debt | 20,651 | 18,874 | ||||||
| Securitization bonds(1) | 883 | 1,054 | ||||||
| Other | 194 | 110 | ||||||
| Total long-term debt | 21,728 | 20,038 | ||||||
| Deferred Credits and Other Liabilities | ||||||||
| Deferred income taxes | 4,921 | 4,476 | ||||||
| Deferred investment tax credits | 616 | 640 | ||||||
| Asset retirement obligations(1) | 5,108 | 5,076 | ||||||
| Regulatory liabilities | 6,530 | 6,139 | ||||||
| Derivative liabilities(2) | 9 | 86 | ||||||
| Other(1)(2) | 1,817 | 1,199 | ||||||
| Total deferred credits and other liabilities | 19,001 | 17,616 | ||||||
| Total liabilities | 47,704 | 43,291 | ||||||
| Commitments and Contingencies (see Note 23) | ||||||||
| Equity | ||||||||
| Common stock – no par(3) | 12,487 | 8,987 | ||||||
| Other paid-in capital | 999 | 1,006 | ||||||
| Retained earnings | 13,687 | 12,136 | ||||||
| Accumulated other comprehensive income | 32 | 28 | ||||||
| Shareholder’s equity | 27,205 | 22,157 | ||||||
| Noncontrolling interests | 4,334 | 2,939 | ||||||
| Total equity | 31,539 | 25,096 | ||||||
| Total liabilities and equity | $ | 79,243 | $ | 68,387 |
(1)
See Note 16 for amounts attributable to VIEs.
(2)
See Note 25 for amounts attributable to affiliates.
(3)
500,000 shares authorized; 373,881 and 324,245 shares outstanding at December 31, 2025 and 2024, respectively.
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Virginia Electric and Power Company
Consolidated Statements of Equity
| Common Stock | ||||||||||||||||||||||||||||||||
| Shares | Amount | Other Paid-In Capital | Retained Earnings | AOCI | Shareholder's Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||
| (millions, except for shares) | (thousands) | |||||||||||||||||||||||||||||||
| December 31, 2022 | 275 | $ | 5,738 | $ | 1,113 | $ | 10,054 | $ | 11 | $ | 16,916 | $ | — | $ | 16,916 | |||||||||||||||||
| Net income | 1,442 | 1,442 | 1,442 | |||||||||||||||||||||||||||||
| Issuance of stock to Dominion Energy | 49 | 3,250 | 3,250 | 3,250 | ||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | 6 | 6 | 6 | |||||||||||||||||||||||||||||
| Other | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
| December 31, 2023 | 324 | 8,987 | 1,113 | 11,496 | 17 | 21,613 | — | 21,613 | ||||||||||||||||||||||||
| Net income including noncontrolling interests | 1,897 | 1,897 | (53 | ) | 1,844 | |||||||||||||||||||||||||||
| Sale of noncontrolling interest in OSWP | (107 | ) | (107 | ) | 2,615 | 2,508 | ||||||||||||||||||||||||||
| Contributions from Stonepeak to OSWP | 377 | 377 | ||||||||||||||||||||||||||||||
| Dividends | (1,257 | ) | (1,257 | ) | (1,257 | ) | ||||||||||||||||||||||||||
| Other comprehensive income, net of tax | 11 | 11 | 11 | |||||||||||||||||||||||||||||
| December 31, 2024 | 324 | 8,987 | 1,006 | 12,136 | 28 | 22,157 | 2,939 | 25,096 | ||||||||||||||||||||||||
| Net income including noncontrolling interests | 2,101 | 2,101 | 67 | 2,168 | ||||||||||||||||||||||||||||
| Issuance of stock to Dominion Energy | 50 | 3,500 | 3,500 | 3,500 | ||||||||||||||||||||||||||||
| Sale of noncontrolling interest in OSWP | **(**7 | ) | **(**7 | ) | — | **(**7 | ) | |||||||||||||||||||||||||
| Contributions from Stonepeak to OSWP | 1,569 | 1,569 | ||||||||||||||||||||||||||||||
| Distributions from OSWP to Stonepeak | **(**241 | ) | **(**241 | ) | ||||||||||||||||||||||||||||
| Dividends | **(**550 | ) | **(**550 | ) | **(**550 | ) | ||||||||||||||||||||||||||
| Other comprehensive income, net of tax | 4 | 4 | 4 | |||||||||||||||||||||||||||||
| December 31, 2025 | 374 | $ | 12,487 | $ | 999 | $ | 13,687 | $ | 32 | $ | 27,205 | $ | 4,334 | $ | 31,539 |
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Virginia Electric and Power Company
Consolidated Statements of Cash Flows
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Operating Activities | ||||||||||||
| Net income including noncontrolling interests | $ | 2,168 | $ | 1,844 | $ | 1,442 | ||||||
| Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization (including nuclear fuel) | 1,787 | 1,802 | 2,034 | |||||||||
| Deferred income taxes | 270 | 381 | 502 | |||||||||
| Deferred investment tax credits (benefits) | **(**24 | ) | (20 | ) | (5 | ) | ||||||
| Impairment of assets and other charges | 516 | 292 | 130 | |||||||||
| Net (gains) losses on nuclear decommissioning trust funds and other investments | **(**81 | ) | (97 | ) | (68 | ) | ||||||
| Other adjustments | **(**93 | ) | (44 | ) | 237 | |||||||
| Changes in: | ||||||||||||
| Accounts receivable | **(**367 | ) | 51 | 1 | ||||||||
| Affiliated receivables and payables | 75 | 46 | (188 | ) | ||||||||
| Inventories | **(**102 | ) | (65 | ) | (165 | ) | ||||||
| Prepayments and deposits, net | **(**55 | ) | 34 | 289 | ||||||||
| Deferred fuel expenses, net | **(**744 | ) | 304 | 538 | ||||||||
| Accounts payable | 57 | (21 | ) | (43 | ) | |||||||
| Accrued interest, payroll and taxes | 84 | 73 | 23 | |||||||||
| Net realized and unrealized changes related to derivative activities | 108 | 153 | 451 | |||||||||
| Other operating assets and liabilities | 257 | (147 | ) | (363 | ) | |||||||
| Net cash provided by operating activities | 3,856 | 4,586 | 4,815 | |||||||||
| Investing Activities | ||||||||||||
| Plant construction and other property additions | **(**10,333 | ) | (9,760 | ) | (6,978 | ) | ||||||
| Purchases of nuclear fuel | **(**199 | ) | (168 | ) | (194 | ) | ||||||
| Acquisition of solar development projects | **(**12 | ) | (40 | ) | (24 | ) | ||||||
| Proceeds from sales of securities | 5,741 | 1,925 | 1,876 | |||||||||
| Purchases of securities | **(**5,808 | ) | (2,011 | ) | (1,987 | ) | ||||||
| Other | **(**100 | ) | 8 | 19 | ||||||||
| Net cash used in investing activities | **(**10,711 | ) | (10,046 | ) | (7,288 | ) | ||||||
| Financing Activities | ||||||||||||
| Issuance (repayment) of short-term debt, net | **(**275 | ) | 495 | (486 | ) | |||||||
| Issuance (repayment) of affiliated current borrowings, net | 673 | — | (1,524 | ) | ||||||||
| Issuance and remarketing of long-term debt | 3,172 | 2,443 | 2,660 | |||||||||
| Repayment and repurchase of long-term debt | **(**572 | ) | (593 | ) | (1,308 | ) | ||||||
| Issuance of common stock | 3,500 | — | 3,250 | |||||||||
| Issuance of securitization bonds | — | 1,282 | — | |||||||||
| Repayment of securitization bonds | **(**163 | ) | (65 | ) | — | |||||||
| Proceeds from sale of noncontrolling interest in OSWP | **(**88 | ) | 2,558 | — | ||||||||
| Contributions from Stonepeak to OSWP | 1,569 | 377 | — | |||||||||
| Distributions from OSWP to Stonepeak | **(**241 | ) | — | — | ||||||||
| Common dividend payments to parent | **(**957 | ) | (850 | ) | — | |||||||
| Other | 262 | (71 | ) | (53 | ) | |||||||
| Net cash provided by financing activities | 6,880 | 5,576 | 2,539 | |||||||||
| Increase in cash, restricted cash and equivalents | 25 | 116 | 66 | |||||||||
| Cash, restricted cash and equivalents at beginning of year | 206 | 90 | 24 | |||||||||
| Cash, restricted cash and equivalents at end of year | $ | 231 | $ | 206 | $ | 90 |
See Note 2 for disclosure of supplemental cash flow information.
The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.
Combined Notes to Consolidated Financial Statements
Note 1**. Nat****ure of Operations**
Dominion Energy, headquartered in Richmond, Virginia, provides primarily regulated electricity service in Virginia, North Carolina and South Carolina through its subsidiaries, Virginia Power and DESC, and is one of the nation's leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. Dominion Energy also has nonregulated operations that include long-term contracted electric generation operations.
In connection with the comprehensive business review concluded in March 2024, Dominion Energy sold all of its regulated gas distribution operations, except for DESC’s, to Enbridge through the East Ohio Transaction (completed in March 2024), the Questar Gas Transaction (completed in May 2024) and the PSNC Transaction (completed in September 2024). In addition in September 2023, Dominion Energy completed the sale of its remaining 50% noncontrolling partnership interest in Cove Point to BHE. As discussed in Notes 3 and 9, these operations as well as certain solar generation facility development operations are reflected as discontinued operations in Dominion Energy's Consolidated Financial Statements.
Dominion Energy manages its daily operations through three primary operating segments: Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy. Dominion Energy also reports a Corporate and Other segment, which includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the operating segments’ performance or in allocating resources including the net impact of the operations reflected as discontinued operations, which in addition to the operations discussed above includes Dominion Energy’s noncontrolling interest in Atlantic Coast Pipeline. See Notes 3 and 9 for additional information.
Virginia Power is a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and North Carolina. Virginia Power is a member of PJM, an RTO, and its electric transmission facilities are integrated into PJM. All of Virginia Power’s stock is owned by Dominion Energy.
Virginia Power manages its daily operations through one primary operating segment: Dominion Energy Virginia. It also reports a Corporate and Other segment that primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
See Note 26 for further discussion of the Companies’ operating segments.
Note 2**. Significant Accounting Policies**
General
The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and cash flows for the periods presented. Actual results may differ from those estimates.
The Companies’ Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. Stonepeak’s 50% ownership interest in OSWP is reflected as noncontrolling interest in the Companies’ Consolidated Financial Statements.
The Companies report certain contracts, instruments and investments at fair value. See below and Note 6 for further information on fair value measurements.
The Companies consider acquisitions or dispositions in which substantially all of the fair value of the gross assets acquired or disposed of is concentrated into a single identifiable asset or group of similar identifiable assets to be an acquisition or a disposition of an asset, rather than a business. See Notes 3 and 10 for further information on such transactions.
Dominion Energy maintains pension and other postretirement benefit plans and Virginia Power participates in certain of these plans. See Note 22 for further information on these plans.
Certain amounts in the Companies’ 2024 and 2023 Consolidated Financial Statements have been reclassified to conform to the 2025 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows.
Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable.
Revision of Previously Issued Consolidated Financial Statements
During the second quarter of 2025, the Companies identified misstatements in their previously issued consolidated financial statements related to income taxes associated with investments held within their qualified nuclear decommissioning trusts, primarily a net understatement of deferred income taxes associated with unrealized gains and losses (reflected in the Corporate and Other segment and attributable to Contracted Energy and Dominion Energy Virginia). The Companies assessed the impacts of the misstatements from both quantitative and qualitative perspectives and determined that the related impacts were not material to any of the Companies' previously issued consolidated financial statements.
As a result, the Companies will revise their previously issued consolidated financial statements. Accordingly, all consolidated financial information contained in these consolidated financial statements and the accompanying notes has been revised to reflect the correction. The Companies will present the revision of their previously issued consolidated financial statements for the three months ended March 31, 2025 in connection with the future filing of their Quarterly Report on Form 10-Q for the three months ended March 31, 2026.
The following tables detail the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Income and Statements of Comprehensive Income for the periods presented:
| Dominion Energy | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Year Ended December 31, | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions, except per share amounts) | ||||||||||||||||||||||||
| Other income (expense) | $ | 822 | $ | 19 | $ | 841 | $ | 984 | $ | 12 | $ | 996 | ||||||||||||
| Interest and related charges | 1,887 | 6 | 1,893 | 1,674 | 5 | 1,679 | ||||||||||||||||||
| Income from continuing operations including noncontrolling interests before income tax expense | 2,182 | 13 | 2,195 | 2,724 | 7 | 2,731 | ||||||||||||||||||
| Income tax expense | 308 | 103 | 411 | 568 | 76 | 644 | ||||||||||||||||||
| Net income from continuing operations including noncontrolling interests | 1,874 | (90 | ) | 1,784 | 2,156 | (69 | ) | 2,087 | ||||||||||||||||
| Net income including noncontrolling interests | 2,071 | (90 | ) | 1,981 | 2,031 | (69 | ) | 1,962 | ||||||||||||||||
| Net income attributable to Dominion Energy | 2,124 | (90 | ) | 2,034 | 2,031 | (69 | ) | 1,962 | ||||||||||||||||
| Amounts Attributable to Dominion Energy | ||||||||||||||||||||||||
| Net income from continuing operations | 1,927 | (90 | ) | 1,837 | 2,156 | (69 | ) | 2,087 | ||||||||||||||||
| Net income attributable to Dominion Energy | 2,124 | (90 | ) | 2,034 | 2,031 | (69 | ) | 1,962 | ||||||||||||||||
| EPS - Basic | ||||||||||||||||||||||||
| Net income from continuing operations | 2.20 | (0.11 | ) | 2.09 | 2.48 | (0.08 | ) | 2.40 | ||||||||||||||||
| Net income attributable to Dominion Energy | 2.44 | (0.11 | ) | 2.33 | 2.33 | (0.08 | ) | 2.25 | ||||||||||||||||
| EPS - Diluted | ||||||||||||||||||||||||
| Net income from continuing operations | 2.20 | (0.11 | ) | 2.09 | 2.48 | (0.08 | ) | 2.40 | ||||||||||||||||
| Net income attributable to Dominion Energy | 2.44 | (0.11 | ) | 2.33 | 2.33 | (0.08 | ) | 2.25 | ||||||||||||||||
| Comprehensive Income | ||||||||||||||||||||||||
| Changes in unrealized net gains (losses) on investment securities(1) | (22 | ) | 3 | (19 | ) | 55 | (8 | ) | 47 | |||||||||||||||
| Total other comprehensive income (loss) | 17 | 3 | 20 | 67 | (8 | ) | 59 | |||||||||||||||||
| Comprehensive income including noncontrolling interests | 2,088 | (87 | ) | 2,001 | 2,098 | (77 | ) | 2,021 | ||||||||||||||||
| Comprehensive income attributable to Dominion Energy | 2,141 | (87 | ) | 2,054 | 2,098 | (77 | ) | 2,021 |
(1)
*As previously reported, net of $*10 *million and $(19) million tax for the years ended December 31, 2024 and 2023, respectively. As revised, net of $*13 *million ($*3 million adjustment) and $(27) million ($(8) million adjustment) tax for the years ended December 31, 2024 and 2023, respectively.
| Virginia Power | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Year Ended December 31, | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Other income (expense) | $ | 195 | $ | 3 | $ | 198 | $ | 131 | $ | 2 | $ | 133 | ||||||||||||
| Interest and related charges | 848 | 1 | 849 | 764 | 1 | 765 | ||||||||||||||||||
| Income before income tax expense | 2,265 | 2 | 2,267 | 1,841 | 1 | 1,842 | ||||||||||||||||||
| Income tax expense | 408 | 15 | 423 | 389 | 11 | 400 | ||||||||||||||||||
| Net Income Including Noncontrolling Interests | 1,857 | (13 | ) | 1,844 | 1,452 | (10 | ) | 1,442 | ||||||||||||||||
| Net Income Attributable to Virginia Power | 1,910 | (13 | ) | 1,897 | 1,452 | (10 | ) | 1,442 | ||||||||||||||||
| Comprehensive Income | ||||||||||||||||||||||||
| Changes in unrealized net gains (losses) on investment securities(1) | (5 | ) | — | (5 | ) | 7 | (1 | ) | 6 | |||||||||||||||
| Total other comprehensive income (loss) | 11 | — | 11 | 7 | (1 | ) | 6 | |||||||||||||||||
| Comprehensive income including noncontrolling interests | 1,868 | (13 | ) | 1,855 | 1,459 | (11 | ) | 1,448 | ||||||||||||||||
| Comprehensive income attributable to Virginia Power | 1,921 | (13 | ) | 1,908 | 1,459 | (11 | ) | 1,448 |
(1)
As previously reported, net of $2 million and $(3) million tax for the years ended December 31, 2024 and 2023, respectively. As revised, net of $2 million ($**— million adjustment) and $(4) million ($(1) million adjustment) tax for the years ended December 31, 2024 and 2023, respectively.
Combined Notes to Consolidated Financial Statements, Continued
The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Balance Sheets for the periods presented:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| At December, 31 2024 | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Deferred income taxes | $ | 6,412 | $ | 723 | $ | 7,135 | $ | 4,045 | $ | 431 | $ | 4,476 | ||||||||||||
| Regulatory liabilities - noncurrent | 9,196 | (435 | ) | 8,761 | 6,574 | (435 | ) | 6,139 | ||||||||||||||||
| Other deferred credits and other liabilities(1) | 1,352 | 102 | 1,454 | 1,138 | 61 | 1,199 | ||||||||||||||||||
| Total deferred credits and other liabilities | 25,409 | 390 | 25,799 | 17,559 | 57 | 17,616 | ||||||||||||||||||
| Total liabilities | 72,223 | 390 | 72,613 | 43,234 | 57 | 43,291 | ||||||||||||||||||
| Retained earnings | 2,035 | (394 | ) | 1,641 | 12,194 | (58 | ) | 12,136 | ||||||||||||||||
| Accumulated other comprehensive income (loss) | (156 | ) | 4 | (152 | ) | 27 | 1 | 28 | ||||||||||||||||
| Shareholders' equity | 27,253 | (390 | ) | 26,863 | 22,214 | (57 | ) | 22,157 | ||||||||||||||||
| Total equity | 30,192 | (390 | ) | 29,802 | 25,153 | (57 | ) | 25,096 |
(1)
Other deferred credits and other liabilities for Virginia Power excludes derivative liabilities which were not impacted by the restatement adjustment and have been separately presented on Virginia Power’s Consolidated Balance Sheets in this report.
The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Equity for the periods presented:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Year Ended December 31, 2024 | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Retained earnings | ||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 2,229 | $ | (304 | ) | $ | 1,925 | $ | 11,541 | $ | (45 | ) | $ | 11,496 | ||||||||||
| Net income including noncontrolling interests | 2,124 | (90 | ) | 2,034 | 1,910 | (13 | ) | 1,897 | ||||||||||||||||
| Balance at December 31, 2024 | 2,035 | (394 | ) | 1,641 | 12,194 | (58 | ) | 12,136 | ||||||||||||||||
| Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||
| Balance at December 31, 2023 | (173 | ) | 1 | (172 | ) | 16 | 1 | 17 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 17 | 3 | 20 | 11 | — | 11 | ||||||||||||||||||
| Balance at December 31, 2024 | (156 | ) | 4 | (152 | ) | 27 | 1 | 28 | ||||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||
| Balance at December 31, 2023 | 27,567 | (303 | ) | 27,264 | 21,657 | (44 | ) | 21,613 | ||||||||||||||||
| Net income including noncontrolling interests | 2,124 | (90 | ) | 2,034 | 1,910 | (13 | ) | 1,897 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 17 | 3 | 20 | 11 | - | 11 | ||||||||||||||||||
| Balance at December 31, 2024 | 27,253 | (390 | ) | 26,863 | 22,214 | (57 | ) | 22,157 | ||||||||||||||||
| Total equity | ||||||||||||||||||||||||
| Balance at December 31, 2023 | 27,567 | (303 | ) | 27,264 | 21,657 | (44 | ) | 21,613 | ||||||||||||||||
| Net income including noncontrolling interests | 2,071 | (90 | ) | 1,981 | 1,857 | (13 | ) | 1,844 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 17 | 3 | 20 | 11 | — | 11 | ||||||||||||||||||
| Balance at December 31, 2024 | 30,192 | (390 | ) | 29,802 | 25,153 | (57 | ) | 25,096 |
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Year Ended December 31, 2023 | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Retained earnings | ||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | 2,511 | $ | (235 | ) | $ | 2,276 | $ | 10,089 | $ | (35 | ) | $ | 10,054 | ||||||||||
| Net income including noncontrolling interests | 2,031 | (69 | ) | 1,962 | 1,452 | (10 | ) | 1,442 | ||||||||||||||||
| Balance at December 31, 2023 | 2,229 | (304 | ) | 1,925 | 11,541 | (45 | ) | 11,496 | ||||||||||||||||
| Accumulated other comprehensive income (loss) | ||||||||||||||||||||||||
| Balance at December 31, 2022 | (240 | ) | 9 | (231 | ) | 9 | 2 | 11 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 67 | (8 | ) | 59 | 7 | (1 | ) | 6 | ||||||||||||||||
| Balance at December 31, 2023 | (173 | ) | 1 | (172 | ) | 16 | 1 | 17 | ||||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||
| Balance at December 31, 2022 | 27,659 | (226 | ) | 27,433 | 16,949 | (33 | ) | 16,916 | ||||||||||||||||
| Net income including noncontrolling interests | 2,031 | (69 | ) | 1,962 | 1,452 | (10 | ) | 1,442 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 67 | (8 | ) | 59 | 7 | (1 | ) | 6 | ||||||||||||||||
| Balance at December 31, 2023 | 27,567 | (303 | ) | 27,264 | 21,657 | (44 | ) | 21,613 | ||||||||||||||||
| Total equity | ||||||||||||||||||||||||
| Balance at December 31, 2022 | 27,659 | (226 | ) | 27,433 | 16,949 | (33 | ) | 16,916 | ||||||||||||||||
| Net income including noncontrolling interests | 2,031 | (69 | ) | 1,962 | 1,452 | (10 | ) | 1,442 | ||||||||||||||||
| Other comprehensive income (loss), net of tax | 67 | (8 | ) | 59 | 7 | (1 | ) | 6 | ||||||||||||||||
| Balance at December 31, 2023 | 27,567 | (303 | ) | 27,264 | 21,657 | (44 | ) | 21,613 |
The following table details the impact of the restatement adjustment to each affected line item in the Companies' Consolidated Statements of Cash Flows for the periods presented:
| Dominion Energy | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Year Ended December 31, | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Net income including noncontrolling interests | $ | 2,071 | $ | (90 | ) | $ | 1,981 | $ | 2,031 | $ | (69 | ) | $ | 1,962 | ||||||||||
| Operating Activities | ||||||||||||||||||||||||
| Deferred income taxes | (302 | ) | 67 | (235 | ) | 1,474 | 53 | 1,527 | ||||||||||||||||
| Other operating assets and liabilities | (235 | ) | 23 | (212 | ) | (564 | ) | 16 | (548 | ) | ||||||||||||||
| Net cash provided by operating activities | 5,018 | — | 5,018 | 6,572 | — | 6,572 |
| Virginia Power | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Year Ended December 31, | As Previously Reported | Adjustments | As Revised | As Previously Reported | Adjustments | As Revised | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Net income including noncontrolling interests | $ | 1,857 | $ | (13 | ) | $ | 1,844 | $ | 1,452 | $ | (10 | ) | $ | 1,442 | ||||||||||
| Operating Activities | ||||||||||||||||||||||||
| Deferred income taxes | 384 | (3 | ) | 381 | 504 | (2 | ) | 502 | ||||||||||||||||
| Other operating assets and liabilities | (163 | ) | 16 | (147 | ) | (375 | ) | 12 | (363 | ) | ||||||||||||||
| Net cash provided by operating activities | 4,586 | — | 4,586 | 4,815 | — | 4,815 |
Operating Revenue
Operating revenue is recorded on the basis of services rendered, commodities delivered or contracts settled and includes amounts yet to be billed to customers. The Companies collect sales, consumption and consumer utility taxes; however, these amounts are excluded from revenue. Dominion Energy’s customer receivables at December 31, 2025 and 2024 included $955 million and $797 million, respectively, of accrued unbilled revenue based on estimated amounts of electricity and natural gas delivered but not yet billed to its utility customers. Virginia Power’s customer receivables at December 31, 2025 and 2024 included $763 million and $611 million, respectively, of accrued unbilled revenue based on estimated amounts of electricity delivered but not yet billed to its customers. See Note 25 for amounts attributable to related parties.
The primary types of sales and service activities reported as operating revenue for Dominion Energy are as follows:
Revenue from Contracts with Customer****s
Regulated electric sales consist primarily of state-regulated retail electric sales, and federally-regulated wholesale electric sales and electric transmission services;
Nonregulated electric sales consist primarily of sales of electricity at market-based rates and contracted fixed rates and
Combined Notes to Consolidated Financial Statements, Continued
associated hedging activity as well as sales to Virginia Power customers from non-jurisdictional solar generation facilities;
Regulated gas sales consist primarily of state-regulated natural gas sales and related distribution services;
Regulated gas transportation and storage sales consists of sales of transportation services to off-system customers;
Other regulated revenue consists primarily of miscellaneous service revenue from electric and gas distribution operations and sales of excess electric capacity and other commodities; and
Other nonregulated revenue consists primarily of sales of other miscellaneous products, including renewable natural gas and related credits. Other nonregulated revenue also includes revenue associated with services provided to entities presented in discontinued operations under transition services agreements.
Other Revenue
Other revenue consists primarily of alternative revenue programs, gains and losses from derivative instruments not subject to hedge accounting and lease revenues.
The primary types of sales and service activities reported as operating revenue for Virginia Power are as follows:
Revenue from Contracts with Customers
Regulated electric sales consist primarily of state-regulated retail electric sales and federally-regulated wholesale electric sales and electric transmission services;
Nonregulated electric sales consists of sales to customers from non-jurisdictional solar generation facilities;
Other regulated revenue consists primarily of sales of excess capacity and other commodities and miscellaneous service revenue from electric distribution operations; and
Other nonregulated revenue consists primarily of revenue from renting space on certain electric transmission poles and distribution towers.
Other Revenue
Other revenue consists primarily of alternative revenue programs, gains and losses from derivative instruments not subject to hedge accounting and lease revenues.
The Companies record refunds to customers as required by state commissions as a reduction to regulated electric sales or regulated gas sales, as applicable. The Companies’ revenue accounted for under the alternative revenue program guidance primarily consists of the equity return for under-recovery of certain riders. Alternative revenue programs compensate the Companies for certain projects and initiatives. Revenues arising from these programs are presented separately from revenue arising from contracts with customers in the categories above.
Revenues from electric and gas sales are recognized over time, as the customers of the Companies consume gas and electricity as it is delivered. Fixed fees are recognized ratably over the life of the contract as the stand-ready performance obligation is satisfied, while variable usage fees are recognized when Dominion Energy has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the performance obligation completed to date. Sales of products and services typically transfer control and are recognized as revenue upon delivery of the product or service. The customer is able to direct the use of, and obtain substantially all of the benefits from, the product at the time the product is delivered. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. Payment for most sales and services varies by contract type but is typically due within a month of billing.
Revenue Included in Discontinued Operations
Operating revenue for the gas distribution operations sold to Enbridge as part of the East Ohio, PSNC and Questar Gas Transactions primarily consists of state-regulated natural gas sales to residential, commercial and industrial customers and related distribution services, state regulated gas distribution charges to retail distribution service customers opting for alternate suppliers and sales of commodities related to nonregulated extraction activities.
Transportation and storage contracts associated with the operations sold to Enbridge as part of the East Ohio, PSNC and Questar Gas Transactions are primarily stand-ready service contracts that include fixed reservation and variable usage fees. Substantially all of the revenue associated with these local gas distribution companies is derived from performance obligations satisfied over time and month-to-month billings according to their respective tariffs.
Credit Risk
Credit risk is the risk of financial loss if counterparties fail to perform their contractual obligations. In order to minimize overall credit risk, credit policies are maintained, including the evaluation of counterparty financial condition, collateral requirements and the use of standardized agreements that facilitate the netting of cash flows associated with a single counterparty. In addition, counterparties may make available collateral, including letters of credit or cash held as margin deposits, as a result of exceeding agreed-upon credit limits, or may be required to prepay the transaction.
The Companies maintain a provision for credit losses based on factors surrounding the credit risk of their customers, historical trends and other information. Expected credit losses are estimated and recorded based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets held at amortized cost as well as expected credit losses on commitments with respect to financial guarantees.
Electric Fuel, Purchased Energy and Purchased Gas-Deferred Costs
Where permitted by regulatory authorities, the differences between the Companies’ actual electric fuel and purchased energy expenses and Dominion Energy’s purchased gas expenses and the related levels of recovery for these expenses in current rates are deferred and matched against recoveries in future periods. The deferral of costs in excess of current period fuel rate recovery is recognized as a regulatory asset, while rate recovery in excess of current period fuel expenses is recognized as a regulatory liability.
Of the cost of fuel used in electric generation and energy purchases to serve Virginia utility customers, at December 31, 2025, approximately 87% is subject to Virginia Power’s deferred fuel accounting, while substantially all of the remaining amount is subject to recovery through similar mechanisms. Additionally in
2024, Virginia Power securitized $1.3 billion of under-recovered deferred fuel expenses through the issuance of bonds by VPFS. Of the cost of fuel used in electric generation and energy purchases to serve South Carolina utility customers, at December 31, 2025, substantially all is subject to DESC’s deferred fuel accounting.
Virtually all of DESC’s natural gas purchases are either subject to deferral accounting or are recovered from the customer in the same accounting period as the sale. Through the respective closing dates of the East Ohio, Questar Gas and PSNC Transactions, these companies’ natural gas purchases were also either subject to deferral accounting or were recovered from the customer in the same accounting period as the sale.
Income Taxes
A consolidated federal income tax return is filed for Dominion Energy and its subsidiaries, including Virginia Power. In addition, where applicable, combined income tax returns for Dominion Energy and its subsidiaries are filed in various states; otherwise, separate state income tax returns are filed.
Virginia Power participates in intercompany tax sharing agreements with Dominion Energy and its subsidiaries. Current income taxes are based on taxable income or loss and credits determined on a separate company basis.
Under the agreements, if a subsidiary incurs a tax loss or earns a credit, recognition of current income tax benefits is limited to refunds of prior year taxes obtained by the carryback of the net operating loss or credit or to the extent the tax loss or credit is absorbed by the taxable income of other Dominion Energy consolidated group members. Otherwise, the net operating loss or credit is carried forward and is recognized as a deferred tax asset until realized.
Accounting for income taxes involves an asset and liability approach. Deferred income tax assets and liabilities are provided, representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Accordingly, deferred taxes are recognized for the future consequences of different treatments used for the reporting of transactions in financial accounting and income tax returns. The Companies establish a valuation allowance when it is more-likely-than-not that all, or a portion, of a deferred tax asset will not be realized. Where the treatment of temporary differences is different for rate regulated operations, a regulatory asset is recognized if it is probable that future revenues will be provided for the payment of deferred tax liabilities.
The Companies recognize positions taken, or expected to be taken, in income tax returns that are more-likely-than-not to be realized, assuming that the position will be examined by tax authorities with full knowledge of all relevant information.
If it is not more-likely-than-not that a tax position, or some portion thereof, will be sustained, the related tax benefits are not recognized in the financial statements. Unrecognized tax benefits may result in an increase in income taxes payable, a reduction of income tax refunds receivable or changes in deferred taxes. Also, when uncertainty about the deductibility of an amount is limited to the timing of such deductibility, the increase in income taxes payable (or reduction in tax refunds receivable) is accompanied by a decrease in deferred tax liabilities. Except when such amounts are presented net with amounts receivable from or amounts prepaid to tax authorities, noncurrent income taxes payable related to unrecognized tax benefits are classified in other deferred credits and other liabilities on the Consolidated Balance Sheets and current payables are included in accrued interest, payroll, and taxes on the Consolidated Balance Sheets.
The Companies recognize interest on underpayments and overpayments of income taxes in interest expense and other income (expense), respectively. Penalties are also recognized in other income (expense).
At December 31, 2025, Virginia Power had an income tax-related affiliated receivable of $31 million, comprised of $26 million of federal income taxes and $5 million of state income taxes receivable from Dominion Energy. Virginia Power’s net affiliated balances are expected to be received from Dominion Energy in 2026.
At December 31, 2024, Virginia Power had an income tax-related affiliated receivable of $26 million, comprised of $21 million of federal income taxes and $5 million of state income taxes receivable from Dominion Energy. Virginia Power’s net affiliated balances were received from Dominion Energy in 2025.
Investment tax credits for both regulated and nonregulated operations are deferred and amortized to income tax expense over the service lives of the properties giving rise to the credits beginning in the year qualifying property is placed in service. The Companies recognize the tax benefit related to initial book and tax basis differences as a reduction of income tax expense in the year in which the qualifying property is placed into service, except where cost-of-service rate regulation applies. Production tax credits are recognized as energy is generated and sold. Current tax law allows the election of either the investment tax credit or production tax credit for certain technologies including solar and wind. Such election is made on a project-by-project basis and the choice of credit may vary based on a combination of factors including, but not limited to, capital expenditures and net capacity factors. Current tax law allows that certain energy tax credits can be transferred to a third-party for cash. The Companies account for such tax credit transfers and any related discount as a component of income tax expense.
Cash, Restricted Cash and Equivalents
Cash, restricted cash and equivalents include cash on hand, cash in banks and temporary investments purchased with an original maturity of three months or less.
Current banking arrangements generally do not require checks to be funded until they are presented for payment. The following table illustrates the checks outstanding but not yet presented for payment and recorded in accounts payable for the Companies:
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| Dominion Energy | $ | 64 | $ | 52 | ||||
| Virginia Power | 46 | 23 |
Restricted Cash and Equivalents
The Companies hold restricted cash and equivalent balances that primarily consist of amounts held for litigation settlements, customer deposits, federal assistance funds and future debt payments on DECP Holdings’ term loan agreement (through September 2023), on Eagle Solar’s senior note agreement (through February 2024) and on the securitization bonds.
Combined Notes to Consolidated Financial Statements, Continued
The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023:
| Cash, Restricted Cash and Equivalents at End/Beginning of Year | ||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||||||||
| (millions) | ||||||||||||||||
| Dominion Energy | ||||||||||||||||
| Cash and cash equivalents(1) | $ | 250 | $ | 310 | $ | 217 | $ | 153 | ||||||||
| Restricted cash and equivalents(2)(3) | 93 | 55 | 84 | 188 | ||||||||||||
| Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows | $ | 343 | $ | 365 | $ | 301 | $ | 341 | ||||||||
| Virginia Power | ||||||||||||||||
| Cash and cash equivalents | $ | 170 | $ | 160 | $ | 90 | $ | 22 | ||||||||
| Restricted cash and equivalents(3)(4) | 61 | 46 | — | 2 | ||||||||||||
| Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows | $ | 231 | $ | 206 | $ | 90 | $ | 24 |
(1)
*At December 31, 2023 and 2022, Dominion Energy had $*33 *million and $*34 million, respectively, of cash and cash equivalents included in assets held for sale.
(2)
*At December 31, 2023 and 2022, Dominion Energy had $*4 *million and $*2 million, respectively, of restricted cash and equivalents included in assets held for sale. The remaining balances are presented within other current assets in Dominion Energy’s Consolidated Balance Sheets.
(3)
*Includes $*51 *million and $*41 million at VPFS attributable to VIEs at December 31, 2025 and 2024, respectively.
(4)
Restricted cash and equivalents balances are presented within other current assets in Virginia Power’s Consolidated Balance Sheets.
Supplemental Cash Flow Information
The following table provides supplemental disclosure of cash flow information related to Dominion Energy:
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Cash paid during the year for: | ||||||||||||
| Interest and related charges, excluding capitalized amounts | $ | 1,799 | $ | 1,900 | $ | 1,991 | ||||||
| Income taxes(1) | 186 | 840 | 286 | |||||||||
| Significant noncash investing and financing activities:(2) | ||||||||||||
| Accrued capital expenditures | 1,699 | 1,268 | 1,085 | |||||||||
| Leases(3) | 338 | 233 | 255 |
(1)
*Excludes cash proceeds received of $*184 *million from the transfer of tax credits to third-parties and $*13 million of purchases of tax credits from Align RNG for the year ended December 31, 2025. See Notes 5 and 9 for more information.
(2)
See Notes 3, 10 and 23 for noncash financing activities related to debt assumed with closing of the East Ohio, Questar Gas and PSNC Transactions, the sale of noncontrolling interest in the CVOW Commercial Project and transfer of property associated with the settlement of litigation.
(3)
*Includes $*77 *million of finance leases and $*261 *million of operating leases entered in 2025, $*93 *million of finance leases and $*140 *million of operating leases entered in 2024 and $*44 *million of finance leases and $*211 million of operating leases entered in 2023.
The following table provides supplemental disclosure of cash flow information related to Virginia Power:
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Cash paid (received) during the year for: | ||||||||||||
| Interest and related charges, excluding capitalized amounts | $ | 901 | $ | 786 | $ | 709 | ||||||
| Income taxes(1) | 385 | 25 | (47 | ) | ||||||||
| Significant noncash investing activities(2): | ||||||||||||
| Accrued capital expenditures | 1,469 | 992 | 807 | |||||||||
| Leases(3) | 320 | 201 | 203 |
(1)
*Excludes cash proceeds received of $*168 million from the transfer of tax credits to third-parties for the year ended December 31, 2025. See Note 5 for more information.
(2)
See Note 10 for noncash financing activities related to the sale of noncontrolling interest in the CVOW Commercial Project.
(3)
*Includes $*61 *million of finance leases and $*259 *million of operating leases entered in 2025, $*77 *million of finance leases and $*124 *million of operating leases entered in 2024 and $*30 *million of finance leases and $*173 million of operating leases entered in 2023.
Distributions from Equity Method Investees
Dominion Energy holds investments that are accounted for under the equity method of accounting and classifies distributions from equity method investees as either cash flows from operating activities or cash flows from investing activities in the Consolidated Statements of Cash Flows according to the nature of the distribution. Distributions received are classified on the basis of the nature of the activity of the investee that generated the distribution as either a return on investment (classified as cash flows from operating activities) or a return of an investment (classified as cash flows from investing activities) when such information is available to Dominion Energy.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. However, the use of a mid-market pricing convention (the mid-point between bid and ask prices) is permitted. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of the Companies’ own nonperformance risk on their liabilities. Fair value measurements assume that the transaction occurs in the principal market for the asset or liability (the market with the most volume and activity for the asset or liability from the perspective of the reporting entity), or in the absence of a principal market, the most advantageous market for the asset or liability (the market in which the reporting entity would be able to maximize the amount received or minimize the amount paid). Dominion Energy applies fair value measurements to certain assets and liabilities including commodity, interest rate and/or foreign currency exchange rate derivative instruments and other
investments including those held in nuclear decommissioning, rabbi and pension and other postretirement benefit plan trusts, in accordance with the requirements discussed above. Virginia Power applies fair value measurements to certain assets and liabilities including commodity, interest rate and/or foreign currency exchange rate derivative instruments and other investments including those held in the nuclear decommissioning trust, in accordance with the requirements discussed above. The Companies apply credit adjustments to their derivative fair values in accordance with the requirements described above.
Inputs and Assumptions
Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, price information is sought from external sources, including industry publications, and to a lesser extent, broker quotes. When evaluating pricing information provided by Designated Contract Market settlement pricing, other pricing services or brokers, the Companies consider the ability to transact at the quoted price, i.e. if the quotes are based on an active market or an inactive market and to the extent which pricing models are used, if pricing is not readily available. If pricing information from external sources is not available, or if the Companies believe that observable pricing is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases the unobservable inputs are developed and substantiated using historical information, available market data, third-party data and statistical analysis. Periodically, inputs to valuation models are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships and changes in third-party sources.
For options and contracts with option-like characteristics where observable pricing information is not available from external sources, the Companies generally use a model that considers time value, the volatility of the underlying commodities and other relevant assumptions when estimating fair value. For contracts with unique characteristics, the Companies may estimate fair value using a discounted cash flow approach deemed appropriate in the circumstances and applied consistently from period to period. For individual contracts, the use of different valuation models or assumptions could have a significant effect on the contract’s estimated fair value.
The inputs and assumptions used in measuring fair value include the following:
| Derivative Contracts | ||||||||
| Inputs and assumptions | Commodity | Interest Rate | Foreign Currency Exchange Rate | Investments | ||||
| Forward commodity prices | X | |||||||
| Transaction prices | X | |||||||
| Price volatility | X | |||||||
| Price correlation | X | |||||||
| Volumes | X | |||||||
| Commodity location | X | |||||||
| Interest rate curves | X | |||||||
| Foreign currency forward exchange rates | X | |||||||
| Quoted securities prices and indices | X | |||||||
| Securities trading information including volume and restrictions | X | |||||||
| Maturity | X | |||||||
| Interest rates | X | X | X | |||||
| Credit quality of counterparties and the Companies | X | X | X | X | ||||
| Credit enhancements | X | X | ||||||
| Notional value | X | X | ||||||
| Time value | X | X | X |
Levels
The Companies also utilize the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
Level 1—Quoted prices (unadjusted) in active markets for identical assets and liabilities that they have the ability to access at the measurement date. Instruments categorized in Level 1 primarily consist of financial instruments such as certain exchange-traded derivatives and exchange-listed equities, U.S. and international equity securities, mutual funds and certain treasury securities and cash and cash equivalents held in nuclear decommissioning trust funds for the Companies and benefit plan trust funds and rabbi trust funds for Dominion Energy.
Level 2—Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include commodity forwards and swaps, interest rate swaps, foreign currency exchange rate instruments and certain cash and cash equivalents, corporate debt instruments, government securities and other fixed income investments held in nuclear decommissioning trust funds for the Companies and benefit plan trust funds and rabbi trust funds for Dominion Energy.
Level 3—Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. Instruments categorized in Level 3 for the Companies consist of long-dated commodity derivatives, FTRs, certain natural gas options and other modeled commodity derivatives.
Combined Notes to Consolidated Financial Statements, Continued
The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. Alternative investments, consisting of investments in partnerships, joint ventures and other alternative investments held in nuclear decommissioning and benefit plan trust funds, are generally valued using NAV based on the proportionate share of the fair value as determined by reference to the most recent audited fair value financial statements or fair value statements provided by the investment manager adjusted for any significant events occurring between the investment manager’s and the Companies’ measurement date. Alternative investments recorded at NAV are not classified in the fair value hierarchy.
Transfers out of Level 3 represent assets and liabilities that were previously classified as Level 3 for which the inputs became observable for classification in either Level 1 or Level 2. Because the activity and liquidity of commodity markets vary substantially between regions and time periods, the availability of observable inputs for substantially the full term and value of the Companies’ over-the-counter derivative contracts is subject to change.
Derivative Instruments
The Companies are exposed to the impact of market fluctuations in the price of electricity, natural gas and other energy-related products they market and purchase, as well as interest rate and foreign currency exchange rate risks in their business operations. The Companies use derivative instruments such as physical and financial forwards, futures, swaps, options, foreign currency transactions and FTRs to manage the commodity, interest rate and/or foreign currency exchange rate risks of their business operations.
Derivative assets and liabilities are presented gross on the Companies’ Consolidated Balance Sheets. Derivative contracts representing unrealized gain positions and purchased options are reported as derivative assets. Derivative contracts representing unrealized losses and options sold are reported as derivative liabilities. All derivatives, except those for which an exception applies, are required to be reported at fair value. One of the exceptions to fair value accounting, normal purchases and normal sales, may be elected when the contract satisfies certain criteria, including a requirement that physical delivery of the underlying commodity is probable. Expenses and revenues resulting from deliveries under normal purchase contracts and normal sales contracts, respectively, are included in earnings at the time of contract performance. See Fair Value Measurements above for additional information about fair value measurements and associated valuation methods for derivatives.
The Companies’ derivative contracts include both over-the-counter transactions and those that are executed on an exchange or other trading platform (exchange contracts) and centrally cleared. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Exchange contracts utilize a financial intermediary, exchange or clearinghouse to enter, execute or clear the transactions. Certain over-the-counter and exchange contracts contain contractual rights of offset through master netting arrangements, derivative clearing agreements and contract default provisions. In addition, the contracts are subject to conditional rights of offset through counterparty nonperformance, insolvency or other conditions.
In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit and in some cases, other forms of security, none of which are subject to restrictions.
The Companies do not offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. Dominion Energy had margin assets of $181 million and $104 million associated with cash collateral at December 31, 2025 and 2024, respectively. Dominion Energy had margin liabilities of less than $1 million and $3 million associated with cash collateral at December 31, 2025 and 2024, respectively. Virginia Power had margin assets of less than $1 million and $1 million associated with cash collateral at December 31, 2025 and 2024, respectively. Virginia Power had less than $1 million and no margin liabilities associated with cash collateral at December 31, 2025 and 2024, respectively. See Note 7 for further information about derivatives.
To manage price and interest rate risk, the Companies hold derivative instruments that are not designated as hedges for accounting purposes. However, to the extent the Companies do not hold offsetting positions for such derivatives, they believe these instruments represent economic hedges that mitigate their exposure to fluctuations in commodity prices or interest rates. All income statement activity, including amounts realized upon settlement, is presented in operating revenue, operating expenses, interest and related charges or discontinued operations based on the nature of the underlying risk.
Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities for jurisdictions subject to cost-based rate regulation. Realized gains or losses on the derivative instruments are generally recognized when the related transactions impact earnings.
Derivative Instruments Designated as Hedging Instruments
In accordance with accounting guidance pertaining to derivatives and hedge accounting, the Companies designate a portion of their derivative instruments as cash flow hedges for accounting purposes. For derivative instruments that are accounted for as cash flow hedges, the cash flows from the derivatives and from the related hedged items are classified in operating cash flows.
The Companies’ derivatives designated into cash flow hedges primarily consist of interest rate swaps to hedge the Companies’ exposure to variations in interest rates on long-term debt. For transactions in which the Companies are hedging the variability of cash flows, changes in the fair value of the derivatives are reported in AOCI, to the extent they are effective at offsetting changes in the hedged item, or as appropriate to regulatory assets or regulatory liabilities. Any derivative gains or losses reported in AOCI are reclassified to earnings when the forecasted item is included in earnings, or earlier, if it becomes probable that the forecasted
transaction will not occur. For cash flow hedge transactions, hedge accounting is discontinued if the occurrence of the forecasted transaction is no longer probable.
Property, Plant and Equipment
Property, plant and equipment is recorded at the lower of original cost or fair value, if impaired. Capitalized costs include labor, materials and other direct and indirect costs such as asset retirement costs, capitalized interest and, for certain operations subject to cost-of-service rate regulation, AFUDC and overhead costs. The cost of repairs and maintenance, including minor additions and replacements, is generally charged to expense as it is incurred.
Amounts capitalized to property, plant and equipment for capitalized interest costs and AFUDC for the Companies are as follows:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Capitalized interest costs and AFUDC debt | $ | 169 | $ | 152 | $ | 109 | $ | 73 | $ | 46 | $ | 47 | ||||||||||||
| AFUDC equity(1) | 152 | 109 | 50 | 151 | 96 | 39 |
(1)
The Companies include AFUDC equity in other adjustments within operating activities in their Consolidated Statements of Cash Flows.
Under Virginia law, certain Virginia jurisdictional projects qualify for current recovery of AFUDC through rate adjustment clauses. AFUDC on these projects is calculated and recorded as a regulatory asset and is not capitalized to property, plant and equipment. In 2025, 2024 and 2023, Virginia Power recorded $12 million, $3 million and less than $1 million of AFUDC related to these projects, respectively.
For property subject to cost-of-service rate regulation, the undepreciated cost of such property, less salvage value, is generally charged to accumulated depreciation at retirement. Cost of removal collections from utility customers are recorded as regulatory liabilities. For property subject to cost-of-service rate regulation that will be abandoned significantly before the end of its useful life, the net carrying value is reclassified from plant-in-service when it becomes probable it will be abandoned and recorded as a regulatory asset for amounts expected to be collected through future rates.
In 2024 and 2023, Virginia Power had the following charges, recorded in impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment), related to early retirements and abandonments:
In 2024, Virginia Power recorded charges of $40 million ($30 million after-tax) associated with dismantling of certain electric generation facilities. In addition, Virginia Power recorded a $25 million ($18 million after-tax) charge in 2024 related to the write-off of early-stage development costs associated with a hydroelectric pumped storage facility that it is no longer considering constructing.
In 2023, Virginia Power recorded a charge of $25 million ($19 million after-tax) as a result of the abandonment of long-lived assets associated with certain rooftop solar and other projects before the end of their useful lives.
For property that is not subject to cost-of-service rate regulation, including nonutility property, cost of removal not associated with AROs is charged to expense as incurred. The Companies also record gains and losses upon retirement based upon the difference between the proceeds received, if any, and the property’s net book value at the retirement date.
Depreciation of property, plant and equipment is computed on the straight-line method based on projected service lives. The Companies’ average composite depreciation rates on utility property, plant and equipment are as follows:
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (percent) | ||||||||||||
| Dominion Energy**(1)** | ||||||||||||
| Generation | 2.71 | 2.59 | 2.65 | |||||||||
| Transmission | 2.32 | 2.32 | 2.32 | |||||||||
| Distribution | 2.78 | 2.73 | 2.72 | |||||||||
| General and other | 3.21 | 3.97 | 4.20 | |||||||||
| Virginia Power | ||||||||||||
| Generation | 2.79 | 2.66 | 2.75 | |||||||||
| Transmission | 2.28 | 2.29 | 2.29 | |||||||||
| Distribution | 2.83 | 2.77 | 2.78 | |||||||||
| General and other | 3.26 | 4.29 | 4.60 |
(1)
Excludes rates for depreciation reported as discontinued operations.
In December 2023, Dominion Energy revised the estimated useful lives for Millstone Units 2 and 3 to reflect lower depreciation rates as a result of its expectation that a 20-year license extension is approved for these facilities. This revision resulted in a 2024 annual decrease of depreciation expense of $35 million ($26 million after-tax) and increased Dominion Energy’s 2024 EPS by $0.03. For the year ended December 31, 2023, this revision resulted in an inconsequential impact.
In January 2024, Virginia Power revised the depreciation rates for Bath County as a result of its expectation that a license extension of at least 40 years will be approved for this facility. This revision resulted in an annual decrease of depreciation expense of $17 million ($13 million after-tax) and increased Dominion Energy's 2024 EPS by $0.02.
Virginia Power’s non-jurisdictional solar generation property, plant and equipment is depreciated using the straight-line method over an estimated useful life of 35 years.
Capitalized costs of development wells and leaseholds were amortized on a field-by-field basis using the unit-of-production method and the estimated proved developed or total proved gas and oil reserves, at a rate of $1.83 and $1.73 per mcfe in 2024 and 2023, respectively. Depletion associated with Wexpro's operations is reflected within discontinued operations through May 2024. See Note 3 for additional information.
Dominion Energy’s nonutility property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives:
| Asset | Estimated Useful Lives(1) | |
| Nonregulated generation-nuclear | 54**-**64 years | |
| Nonregulated generation-other | 30**-**35 years | |
| General and other | 5**-**50 years |
(1)
The estimated useful life for a generation station is made on a unit basis if the facility has multiple generating units and represents the period the unit was placed in service or acquired until the end of its license or estimated service period.
Nuclear fuel used in electric generation is amortized over its estimated service life on a units-of-production basis. The Companies report the amortization of nuclear fuel in electric fuel and other energy-related purchases expense in their Consolidated Statements of Income and in depreciation and amortization in their Consolidated Statements of Cash Flows.
Combined Notes to Consolidated Financial Statements, Continued
Long-Lived and Intangible Assets
The Companies perform an evaluation for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets or intangible assets with finite lives may not be recoverable. A long-lived or intangible asset is written down to fair value if the sum of its expected future undiscounted cash flows is less than its carrying amount. Intangible assets with finite lives are amortized over their estimated useful lives. See Note 6 for further discussion on the impairment of long-lived assets.
Accounting for Regulated Operations
The accounting for the Companies’ regulated electric and gas operations differs from the accounting for nonregulated operations in that the Companies are required to reflect the effect of rate regulation in their Consolidated Financial Statements. For regulated businesses subject to federal or state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds or other benefits through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. In addition, a loss is recognized if it becomes probable that capital expenditures will be disallowed for ratemaking purposes and if a reasonable estimate of the amount of the disallowance can be made.
In 2025, the Companies recorded a net $258 million ($192 million after-tax) of charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project as a result of a revised total project cost estimate of approximately $11.5 billion (excluding financing costs) which reflects a temporary suspension of work order and an estimated impact of certain tariffs which became effective during 2025 as well as the previously included revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project and cost sharing mechanism included in the Virginia Commission’s December 2022 order. The expected total project cost reflects an increase of $0.2 billion, relative to Virginia Power’s October 2025 Rider OSW filing, associated with projected installation timeline changes arising from the temporary suspension of work from the BOEM Director’s Order issued in December 2025 until a preliminary injunction was granted by the U.S District Court for the Eastern District of Virginia in January 2026, which allowed work to resume. The estimated total project costs also include $0.6 billion of tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries and on equipment expected to be delivered from March 2025 through early 2027 that contains steel. Such amount is inclusive of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling on February 20, 2026. Dominion Energy is currently unable to estimate the expected impact of the ruling issued by the U.S. Supreme Court on February 20, 2026, on its financial position, results of operations and/or cash flows.
In the fourth quarter of 2024, the Companies recorded a net $103 million ($77 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project as a result of a revised total project cost estimate that included a revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project and cost sharing mechanism included in the Virginia Commission’s December 2022 order. The expected total project cost reflects increases driven primarily by projections for onshore electrical interconnection costs and network upgrade costs assigned to the project by PJM, specifically incorporating consideration of PJM’s December 2024 publication of potential transmission network upgrades required for certain generation projects and related cost allocations, including those attributable to the CVOW Commercial Project. Relative to Virginia Power’s November 2024 Rider OSW filing, the estimated total project cost reflects an approximately $0.6 billion increase for such onshore and network upgrade costs and an approximately $0.3 billion increase for increased contingency for remaining construction activities, completion of the removal of unexploded ordnance, undersea cable protection system design enhancements, commodity prices for transportation fuel, updates for sea fastener fabrication and installation and other construction and equipment supplier costs.
The estimated total project cost reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations and litigation ruled on by the U.S. Supreme Court on February 20, 2026, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events. Any additional increase in such costs in excess of the contingency included in the estimated total project cost would be subject to the cost sharing mechanisms described above and could have a material impact on the Companies’ future financial condition, results of operations and/or cash flows. See Note 10 for additional information.
The Companies evaluate whether or not recovery of their regulatory assets through future rates is probable as well as whether a regulatory liability due to customers is probable and make various assumptions in their analyses. These analyses are generally based on:
Orders issued by regulatory commissions, legislation and judicial actions;
Past experience;
Discussions with applicable regulatory authorities and legal counsel;
Estimated construction costs;
Forecasted earnings; and
Considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters and unplanned outages of facilities.
Generally, regulatory assets and liabilities are amortized into income over the period authorized by the regulator. If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable. In connection with the future 2027 Biennial Review, the Companies concluded that it was not probable that Virginia Power would have earnings in excess of an expected authorized ROE of 9.80% for the period January 1, 2025 through December 31, 2026. As a result, no regulatory liability for Virginia Power ratepayer credits to customers has been recorded at December 31, 2025. See Note 13 for additional information.
Leases
The Companies lease certain assets including vehicles, real estate, office equipment and other operational assets, including the offshore wind installation vessel described in Note 15, under both operating and finance leases. For the Companies’ operating leases, rent expense is recognized on a straight-line basis over the term of the lease agreement, subject to regulatory framework. Rent expense associated with operating leases, short-term leases and variable leases is primarily recorded in other operations and maintenance expense in the Companies’ Consolidated Statements of Income. Rent expense associated with finance leases results in the separate presentation of interest expense on the lease liability and amortization expense of the related right-of-use asset in the Companies’ Consolidated Statements of Income or, subject to regulatory framework, is deferred within regulatory assets in the Consolidated Balance Sheets and amortized into the Consolidated Statements of Income.
Certain of the Companies’ leases include one or more options to renew, with renewal terms that can extend the lease from one to 70 years. The exercise of renewal options is solely at the Companies’ discretion and is included in the lease term if the option is reasonably certain to be exercised. A right-of-use asset and corresponding lease liability for leases with original lease terms of one year or less are not included in the Consolidated Balance Sheets, unless such leases contain renewal options that the Companies are reasonably certain will be exercised. Additionally, certain of the Companies’ leases contain escalation clauses whereby payments are adjusted for consumer price or other indices or contain fixed dollar or percentage increases. The Companies also have leases with variable payments based upon usage of, or revenues associated with, the leased assets.
The determination of the discount rate utilized has a significant impact on the calculation of the present value of the lease liability included in the Companies’ Consolidated Balance Sheets. For the Companies’ fleet of leased vehicles, the discount rate is equal to the prevailing borrowing rate earned by the lessor. For the Companies’ remaining leased assets, the discount rate implicit in the lease is generally unable to be determined from a lessee perspective. As such, the Companies use internally-developed incremental borrowing rates as a discount rate in the calculation of the present value of the lease liability. The incremental borrowing rates are determined based on an analysis of the Companies’ publicly available unsecured borrowing rates, adjusted for a collateral discount, over various lengths of time that most closely correspond to the Companies’ lease maturities.
In addition, Dominion Energy acts as lessor under certain power purchase agreements in which the counterparty or counterparties purchase substantially all of the output of certain solar facilities. These leases are considered operating in nature. For such leasing arrangements, rental revenue and an associated accounts receivable are recorded when the monthly output of the solar facility is determined. Depreciation on these solar facilities is computed on a straight-line basis primarily over an estimated useful life of 35 years.
Supply Chain Financing
In the fourth quarter of 2025, Dominion Energy entered into a voluntary supply chain finance program that allows its suppliers, at their sole discretion, to sell their receivables from the Companies to a financial institution. Suppliers participating in the program determine which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact the Companies’ payment terms, which are based on commercial terms negotiated between the Companies and the supplier regardless of program participation. The Companies do not issue any guarantees with respect to the program and do not participate in negotiations between suppliers and the financial institution. The Companies do not have an economic interest in the supplier’s decision to participate in the program. No amounts were outstanding under this program for the Companies at December 31, 2025.
Asset Retirement Obligations
The Companies recognize AROs at fair value as incurred or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement activities to be performed, for which a legal obligation exists. These amounts are generally capitalized as costs of the related tangible long-lived assets. Since relevant market information is not available, fair value is estimated using discounted cash flow analyses. Quarterly, the Companies assess their AROs to determine if circumstances indicate that estimates of the amounts or timing of future cash flows associated with retirement activities have changed. AROs are adjusted when significant changes in the amounts or timing of future cash flows are identified. Dominion Energy reports accretion of AROs and depreciation on asset retirement costs associated with its natural gas pipelines of its distribution business as an adjustment to the related regulatory assets or liabilities when revenue is recoverable from customers for AROs. The Companies report accretion of AROs and depreciation on asset retirement costs associated with decommissioning its nuclear power stations as an adjustment to the regulatory asset or liability for certain jurisdictions. Additionally, the Companies report accretion of AROs and depreciation on asset retirement costs associated with certain rider and prospective rider projects and other electric generation and distribution facilities as an adjustment to the regulatory asset for certain jurisdictions. Accretion of all other AROs and depreciation of all other asset retirement costs are reported in other operations and maintenance expense and depreciation expense, respectively, in the Consolidated Statements of Income.
High Load Equipment Deposits
Beginning in 2025, Virginia Power requires high load customers to
Combined Notes to Consolidated Financial Statements, Continued
provide certain commitments to Virginia Power, including cash deposits, during the project construction period. If the customer ceases construction of its facility, Virginia Power will attempt to redeploy the equipment to another customer, returning the original deposit and requiring a new deposit from the new customer. If the equipment cannot be redeployed, Virginia Power will retain the cash deposit received. If the customer completes construction and Virginia Power begins delivering electricity, the cash deposit will be returned to the customer. At December 31, 2025, the Companies’ Consolidated Balance Sheets include $321 million of deposits received, included in other deferred credits and other liabilities.
Debt Issuance Costs
The Companies defer and amortize debt issuance costs and debt premiums or discounts over the expected lives of the respective debt issues, considering maturity dates and, if applicable, redemption rights held by others. Deferred debt issuance costs are recorded as a reduction in long-term debt in the Consolidated Balance Sheets. Amortization of the issuance costs is reported as interest expense. Unamortized costs associated with redemptions of debt securities prior to stated maturity dates are generally recognized and recorded in interest expense immediately. As permitted by regulatory authorities, gains or losses resulting from the refinancing or redemption of debt allocable to utility operations subject to cost-based rate regulation are deferred and amortized.
Investments
Debt Securities
Dominion Energy accounts for and classifies investments in debt securities as trading or available-for-sale securities. Virginia Power classifies investments in debt securities as available-for-sale securities.
Debt securities classified as trading securities include securities held by Dominion Energy in rabbi trusts associated with certain deferred compensation plans. These securities are reported in other investments in the Consolidated Balance Sheets at fair value with net realized and unrealized gains and losses included in other income in the Consolidated Statements of Income.
Debt securities classified as available-for-sale securities include all other debt securities, primarily comprised of securities held in the nuclear decommissioning trusts. These investments are reported at fair value in nuclear decommissioning trust funds in the Consolidated Balance Sheets. Net realized and unrealized gains and losses (including any credit-related impairments) on investments held in nuclear decommissioning trusts are deferred to a regulatory asset or liability, as applicable, for certain jurisdictions subject to cost-based regulation. For all other available-for-sale debt securities, including those held in Dominion Energy’s nonregulated generation nuclear decommissioning trusts, net realized gains and losses (including any credit-related impairments) are included in other income and unrealized gains and losses are reported as a component of AOCI, after-tax.
In determining realized gains and losses for debt securities, the cost basis of the security is based on the specific identification method.
Credit Impairment
The Companies periodically review their available-for-sale debt securities to determine whether a decline in fair value should be considered credit related. If a decline in the fair value of any available-for-sale debt security is determined to be credit related, the credit-related impairment is recorded to an allowance included in nuclear decommissioning trust funds in the Companies’ Consolidated Balance Sheets at the end of the reporting period, with such allowance for credit losses subject to reversal in subsequent evaluations.
Using information obtained from their nuclear decommissioning trust fixed-income investment managers, the Companies record in earnings, or defer as applicable for certain jurisdictions subject to cost-based regulation, any unrealized loss for a debt security when the manager intends to sell the debt security or it is more-likely-than-not that the manager will have to sell the debt security before recovery of its fair value up to its cost basis. If that is not the case, but the debt security is deemed to have experienced a credit loss, the Companies record the credit loss in earnings or defer as applicable for certain jurisdictions subject to cost-based regulation, with the remaining non-credit portion of the unrealized loss recorded in AOCI. Credit losses are evaluated primarily by considering the credit ratings of the issuer, prior instances of non-performance by the issuer and other factors.
Equity Securities with Readily Determinable Fair Values
Equity securities with readily determinable fair values include securities held by Dominion Energy in rabbi trusts associated with certain deferred compensation plans and securities held by the Companies in the nuclear decommissioning trusts. The Companies record all equity securities with a readily determinable fair value, or for which they are permitted to estimate fair value using NAV (or its equivalent), at fair value in nuclear decommissioning trust funds and other investments in the Consolidated Balance Sheets. Net realized and unrealized gains and losses on equity securities held in the nuclear decommissioning trusts are deferred to a regulatory asset or liability, as applicable, for certain jurisdictions subject to cost-based regulation. For all other equity securities, including those held in Dominion Energy’s nonregulated generation nuclear decommissioning trusts and rabbi trusts, net realized and unrealized gains and losses are included in other income in the Consolidated Statements of Income.
Equity Securities without Readily Determinable Fair Values
The Companies account for illiquid and privately held securities without readily determinable fair values under either the equity method or cost method. Equity securities without readily determinable fair values include:
Equity method investments when the Companies have the ability to exercise significant influence, but not control, over the investee. Dominion Energy’s investments are included in investments in equity method affiliates in its Consolidated Balance Sheets, except for the liability to Atlantic Coast Pipeline. Dominion Energy records equity method adjustments in other income in its Consolidated Statements of Income, including its proportionate share of investee income or loss, gains or losses resulting from investee capital transactions, amortization of certain differences between the carrying value
and the equity in the net assets of the investee at the date of investment and other adjustments required by the equity method.
Cost method investments when the Companies do not have the ability to exercise significant influence over the investee. The Companies’ investments are included in other investments and nuclear decommissioning trust funds. Cost method investments are reported at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.
Other-Than-Temporary Impairment
The Companies periodically review their equity method investments to determine whether a decline in fair value should be considered other-than-temporary. If a decline in the fair value of any security is determined to be other-than-temporary, the investment is written down to its fair value at the end of the reporting period.
Inventories
Materials and supplies, fossil fuel and gas stored inventory is valued using the weighted-average cost method.
In 2024, Dominion Energy wrote off certain inventory balances in connection with the electric base rate case in South Carolina as discussed in Note 13.
Goodwill
Dominion Energy evaluates goodwill for impairment annually as of April 1 and whenever an event occurs or circumstances change in the interim that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. In the fourth quarter of 2023 and first quarter of 2024, Dominion Energy's current period calculations of the expected gain or loss on the Questar Gas and East Ohio Transactions resulted in an impairment of the related goodwill. There were no other impairments recorded in 2024 and none were recorded in 2025. See Note 3 for additional information.
New Accounting Standards
Income Tax Disclosures
In December 2023, the FASB issued revised accounting guidance for income taxes. The revised guidance requires disclosure of disaggregated information about an entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The new standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted and allows either prospective or retrospective application. The Companies adopted this revised guidance prospectively which only impacted the Companies’ disclosures with no impacts to their results of operations, cash flows or financial condition.
Climate-Related Disclosures
In March 2024, the SEC issued guidance for climate-related disclosures. The guidance requires disclosure of the financial statement impacts of severe weather events and other natural conditions, including amounts capitalized or expensed as well as any associated recoveries. In addition, the guidance requires disclosure of amounts related to renewable energy credits or carbon offsets if utilized as a material component of plans to achieve climate-related targets or goals. This guidance is currently subject to a stay issued by the SEC. Should this guidance become effective, the Companies expect it to only impact their disclosures with no impacts to their results of operations, cash flows or financial condition.
Expense Disaggregation Disclosures
In November 2024, the FASB issued revised accounting guidance for income statement expense disaggregation disclosures. The revised guidance requires disclosure of disaggregated information about specific expense categories in commonly presented income statement expense captions. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted and allows either prospective or retrospective application. The Companies expect this revised guidance to only impact their disclosures with no impacts to their results of operations, cash flows or financial condition.
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
Combined Notes to Consolidated Financial Statements, Continued
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 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. 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 amounts 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.
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 | — |
Combined Notes to Consolidated Financial Statements, Continued
Note 4**. Operating Revenue**
The Companies’ operating revenue consists of the following:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Regulated electric sales: | ||||||||||||||||||||||||
| Residential | $ | 6,080 | $ | 5,436 | $ | 5,141 | $ | 4,631 | $ | 4,133 | $ | 3,863 | ||||||||||||
| Commercial | 4,050 | 3,446 | 3,406 | 3,113 | 2,553 | 2,482 | ||||||||||||||||||
| High load(1) | 1,811 | 1,362 | 1,308 | 1,811 | 1,362 | 1,308 | ||||||||||||||||||
| Industrial | 729 | 716 | 729 | 301 | 300 | 282 | ||||||||||||||||||
| Government and other retail | 1,284 | 1,081 | 1,036 | 1,211 | 1,015 | 965 | ||||||||||||||||||
| Wholesale | 179 | 136 | 176 | 141 | 105 | 116 | ||||||||||||||||||
| Nonregulated electric sales | 1,239 | 933 | 758 | 127 | 86 | 65 | ||||||||||||||||||
| Regulated gas sales: | ||||||||||||||||||||||||
| Residential | 352 | 309 | 293 | |||||||||||||||||||||
| Commercial | 142 | 136 | 145 | |||||||||||||||||||||
| Other | 46 | 67 | 79 | |||||||||||||||||||||
| Regulated gas transportation and storage | 36 | 21 | 18 | |||||||||||||||||||||
| Other regulated revenues | 309 | 372 | 253 | 291 | 359 | 238 | ||||||||||||||||||
| Other nonregulated revenues(2)(3)(4) | 266 | 167 | 145 | 66 | 46 | 53 | ||||||||||||||||||
| Total operating revenue from contracts with customers | 16,523 | 14,182 | 13,487 | 11,692 | 9,959 | 9,372 | ||||||||||||||||||
| Other revenues(2)(5) | **(**17 | ) | 277 | 906 | 120 | 276 | 201 | |||||||||||||||||
| Total operating revenue | $ | 16,506 | $ | 14,459 | $ | 14,393 | $ | 11,812 | $ | 10,235 | $ | 9,573 |
(1)
Represents customers in Virginia, including certain data centers, with actual or anticipated forecast demand of 25 MW or higher and annual load factor of 75% or higher.
(2)
See Note 25 for amounts attributable to affiliates.
(3)
*Includes sales of renewable energy credits of $57 million, $*31 *million and $44 million for the years ended December 31, 2025, 2024 and 2023, respectively, at Dominion Energy and $*16 *million, $*12 million and $29 million for the years ended December 31, 2025, 2024 and 2023, respectively, at Virginia Power.
(4)
*Includes revenue from transition services agreements of $*99 *million, $*61 million and $18 million for the years ended December 31, 2025, 2024 and 2023, respectively, at Dominion Energy.
(5)
*Includes alternative revenue of $*167 *million, $*129 million and $162 million at both Dominion Energy and Virginia Power for years ended December 31, 2025, 2024 and 2023, respectively.
Neither Dominion Energy nor Virginia Power have any amounts for revenue to be recognized in the future on multi-year contracts in place at December 31, 2025.
Contract liabilities represent an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration, or the amount that is due, from the customer. At December 31, 2025 and 2024, Dominion Energy’s contract liability balances were $45 million and $52 million, respectively. At December 31, 2025 and 2024, Virginia Power’s contract liability balances were $38 million and $46 million, respectively. The Companies’ contract liabilities are recorded in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets.
The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the years ended December 31, 2025 and 2024, Dominion Energy recognized revenue of $50 million and $45 million from the beginning contract liability balance. During the years ended December 31, 2025 and 2024, Virginia Power recognized revenue of $46 million and $40 million, respectively, from the beginning contract liability balance.
Note 5**. Income Taxes**
Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities. The interpretation of tax laws and associated regulations involves uncertainty, since tax authorities may interpret the laws differently. The Companies are routinely audited by federal and state tax authorities. Ultimate resolution of income tax matters may result in favorable or unfavorable impacts to net income and cash flows, and adjustments to tax-related assets and liabilities could be material.
As indicated in Note 2, certain of the Companies’ operations, including accounting for income taxes, are subject to regulatory accounting treatment. For regulated operations, many of the changes in deferred taxes from the 2017 Tax Reform Act represent amounts probable of collection from or return to customers and are presented as components of regulatory assets or liabilities. See Note 12 for additional information.
Continuing Operations
Details of income tax expense for continuing operations including noncontrolling interests were as follows:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Current: | ||||||||||||||||||||||||
| Federal | $ | **(**580 | ) | $ | (204 | ) | $ | (361 | ) | $ | 163 | $ | (6 | ) | $ | (102 | ) | |||||||
| State | 54 | 37 | (97 | ) | 39 | 67 | 6 | |||||||||||||||||
| Total current expense (benefit) | **(**526 | ) | (167 | ) | (458 | ) | 202 | 61 | (96 | ) | ||||||||||||||
| Deferred: | ||||||||||||||||||||||||
| Federal | ||||||||||||||||||||||||
| Taxes before operating loss carryforwards and investment tax credits | 539 | 521 | 815 | 167 | 324 | 403 | ||||||||||||||||||
| Tax utilization expense of operating loss carryforwards | 35 | 40 | 45 | — | — | — | ||||||||||||||||||
| State | 61 | 52 | 270 | 103 | 59 | 107 | ||||||||||||||||||
| Total deferred expense | 635 | 613 | 1,130 | 270 | 383 | 510 | ||||||||||||||||||
| Investment tax credits | 423 | (35 | ) | (28 | ) | **(**24 | ) | (21 | ) | (14 | ) | |||||||||||||
| Total income tax expense | $ | 532 | $ | 411 | $ | 644 | $ | 448 | $ | 423 | $ | 400 |
In 2025, Dominion Energy’s current income taxes reflect a benefit from continuing operations primarily related to income tax credits generated during 2025. At December 31, 2025, Dominion Energy’s Consolidated Balance Sheet includes $402 million, presented in tax receivables, for the amount of credits generated in 2025 and expected to be carried back to tax year 2024 and refunded. Additionally, Dominion Energy and Virginia Power have recognized a current tax benefit from tax credits generated and transferred to third parties during 2025, as further discussed below.
In 2024, Dominion Energy’s current income taxes reflect a benefit from continuing operations as the income tax expense associated with the East Ohio, PSNC and Questar Gas Transactions, is reflected in discontinued operations. Dominion Energy’s income tax expense from continuing operations reflects the utilization of tax credit carryforwards to offset a portion of the federal tax on the gains from the East Ohio, PSNC and Questar Gas Transactions, presented in discontinued operations.
In 2023, Dominion Energy’s current income taxes reflect a benefit from continuing operations as the income tax expense associated with the East Ohio, PSNC and Questar Gas Transactions and Cove Point operations, including the Cove Point gain, is reflected in discontinued operations. Dominion Energy’s income tax expense from continuing operations reflects the utilization of investment tax credit carryforwards to offset a portion of the federal tax on the Cove Point gain, presented in discontinued operations.
Discontinued Operations
Income tax expense reflected in discontinued operations is $5 million, $31 million and $1.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively. See Note 3 for a discussion of tax expense reflected in discontinued operations during the years ended December 31, 2024 and 2023. In addition, Dominion Energy recorded tax expense of $278 million associated with completing the sale in September 2023 of its remaining 50% noncontrolling partnership interest in Cove Point to BHE as discussed in Note 9.
Continuing Operations
For continuing operations including noncontrolling interests for the year ended December 31, 2025, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:
| Year Ended December 31, 2025 | Dominion Energy | Virginia Power | ||||||||||||||||
| (millions, except percentages) | Amount | Rate | Amount | Rate | ||||||||||||||
| U.S. federal statutory tax | $ | 758 | 21.0 | % | $ | 549 | 21.0 | % | ||||||||||
| State and local income taxes, net of federal income tax effect(1) | 109 | 3.0 | 112 | 4.3 | ||||||||||||||
| Tax credits: | ||||||||||||||||||
| Production tax credits | **(**210 | ) | **(**5.8 | ) | **(**115 | ) | **(**4.4 | ) | ||||||||||
| Investment tax credit amortization | **(**87 | ) | **(**2.4 | ) | **(**21 | ) | **(**0.8 | ) | ||||||||||
| Nontaxable or nondeductible items: | ||||||||||||||||||
| Regulatory deferrals: | ||||||||||||||||||
| Reversal of excess deferred income taxes | **(**62 | ) | **(**1.7 | ) | **(**45 | ) | **(**1.7 | ) | ||||||||||
| AFUDC—equity | **(**28 | ) | **(**0.8 | ) | **(**27 | ) | **(**1.0 | ) | ||||||||||
| Absence of tax on noncontrolling interest | **(**14 | ) | **(**0.4 | ) | **(**14 | ) | **(**0.5 | ) | ||||||||||
| Changes in unrecognized tax benefits | **(**28 | ) | **(**0.8 | ) | 1 | 0.1 | ||||||||||||
| Other adjustments: | ||||||||||||||||||
| Qualified nuclear decommissioning trust net gains (losses) | 87 | 2.4 | 11 | 0.4 | ||||||||||||||
| Other | 7 | 0.2 | **(**3 | ) | **(**0.3 | ) | ||||||||||||
| Effective tax(2) | $ | 532 | 14.7 | % | $ | 448 | 17.1 | % |
(1)
State taxes in Virginia make up the majority (greater than 50%) of the tax effect in this category.
(2)
The Companies had no adjustments related to the following disclosure categories: foreign tax effects, effects of changes in tax law or rates enacted in the current period and effects of cross-border tax laws.
Combined Notes to Consolidated Financial Statements, Continued
For continuing operations including noncontrolling interests for the years ended December 31, 2024 and 2023, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:
| Dominion Energy | Virginia Power | |||||||||||||||||
| Year Ended December 31, | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||
| Increases (reductions) resulting from: | ||||||||||||||||||
| State taxes, net of federal benefit | 3.6 | 3.9 | 4.5 | 4.7 | ||||||||||||||
| Investment tax credits | (1.6 | ) | (1.0 | ) | (0.9 | ) | (0.8 | ) | ||||||||||
| Production tax credits | (4.8 | ) | (0.6 | ) | (4.5 | ) | (0.8 | ) | ||||||||||
| Reversal of excess deferred income taxes | (3.1 | ) | (2.6 | ) | (2.0 | ) | (2.6 | ) | ||||||||||
| State legislative change | — | (0.1 | ) | — | — | |||||||||||||
| Qualified nuclear decommissioning trust net gains (losses) | 4.4 | 2.7 | 0.6 | 0.6 | ||||||||||||||
| Changes in state deferred taxes associated with assets held for sale | — | 1.1 | ||||||||||||||||
| AFUDC—equity | (0.7 | ) | — | (0.7 | ) | — | ||||||||||||
| Settlements of uncertain tax positions | (0.7 | ) | (0.4 | ) | — | — | ||||||||||||
| Employee stock ownership plan deduction | (0.3 | ) | (0.3 | ) | ||||||||||||||
| Other, net | 0.9 | (0.1 | ) | 0.6 | (0.4 | ) | ||||||||||||
| Effective tax rate | 18.7 | % | 23.6 | % | 18.6 | % | 21.7 | % |
The IRA created a nuclear production tax credit for electricity produced and sold beginning in 2024 and a clean fuel production tax credit for clean fuel produced and sold beginning in 2025. Dominion Energy’s and Virginia Power’s 2025 effective tax rate includes an $89 million income tax benefit for the nuclear production tax credit, and Dominion Energy’s effective tax rate also includes a $79 million income tax benefit for the clean fuel production tax credit.
In 2025, Dominion Energy and Virginia Power entered into agreements with third parties to transfer tax credits generated in 2024 and 2025. During 2025, Dominion Energy and Virginia Power received cash proceeds of $184 million and $168 million, respectively, related to the transfer of tax credits. In addition, Dominion Energy and Virginia Power expect to receive an additional $108 million and $18 million, respectively, in 2026 which are reflected in other receivables in the Companies’ Consolidated Balance Sheets at December 31, 2025. The Companies expect to continue to explore the ability to efficiently monetize their tax credits through third-party transfer agreements.
Dominion Energy’s and Virginia Power’s 2024 effective tax rate includes an $89 million tax benefit for the estimated net realizable value of the nuclear production tax credit.
The ultimate nuclear and clean fuel production tax credits realized by the Companies could vary significantly based on pending final U.S. Treasury guidance.
Dominion Energy’s 2023 effective tax rate includes a net income tax expense of $29 million associated with the remeasurement of consolidated state deferred taxes as a result of the East Ohio, PSNC and Questar Gas Transactions and sale of Dominion Energy’s 50% noncontrolling partnership interest in Cove Point as discussed in Notes 3 and 9, respectively.
The Companies’ income tax payments (net of refunds received and excluding amounts related to transfers of tax credits) for the year ended December 31, 2025, consist of the following:
| Dominion Energy | Virginia Power**(1)** | |||||||
| (millions) | ||||||||
| Federal(2) | $ | 115 | $ | 348 | ||||
| State: | ||||||||
| Virginia(3) | 68 | 36 | ||||||
| Other states(4) | 3 | 1 | ||||||
| Total tax payments | $ | 186 | $ | 385 |
(1)
Virginia Power income tax payments (net of refunds received) include intercompany tax sharing payments and receipts with Dominion Energy as discussed in Note 2.
(2)
*Excludes income taxes paid by qualified nuclear decommissioning trusts of $*37 *million and $*20 million at Dominion Energy and Virginia Power, respectively.
(3)
Virginia income tax payments include Virginia minimum corporate taxes.
(4)
There are no other states for which taxes paid exceeded five percent of total income taxes paid (net of refunds) for the Companies.
The Companies’ deferred income taxes consist of the following:
| Dominion Energy | Virginia Power | |||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Deferred income taxes: | ||||||||||||||||
| Total deferred income tax assets | $ | 2,062 | $ | 1,854 | $ | 1,139 | $ | 1,082 | ||||||||
| Total deferred income tax liabilities | 9,947 | 8,989 | 6,060 | 5,558 | ||||||||||||
| Total net deferred income tax liabilities | $ | 7,885 | $ | 7,135 | $ | 4,921 | $ | 4,476 | ||||||||
| Total deferred income taxes: | ||||||||||||||||
| Depreciation method and plant basis differences | $ | 5,557 | $ | 4,878 | $ | 3,899 | $ | 3,765 | ||||||||
| Excess deferred income taxes | **(**768 | ) | (790 | ) | **(**570 | ) | (587 | ) | ||||||||
| Unrecovered nuclear plant cost | 391 | 420 | ||||||||||||||
| DESC rate refund | **(**34 | ) | (49 | ) | ||||||||||||
| Toshiba Settlement | **(**119 | ) | (133 | ) | ||||||||||||
| Nuclear decommissioning | 2,038 | 1,973 | 899 | 781 | ||||||||||||
| Deferred state income taxes | 1,154 | 1,010 | 789 | 672 | ||||||||||||
| Federal benefit of deferred state income taxes | **(**250 | ) | (222 | ) | **(**166 | ) | (141 | ) | ||||||||
| Deferred fuel, purchased energy and gas costs | 323 | 189 | 315 | 178 | ||||||||||||
| Pension benefits | 382 | 345 | **(**126 | ) | (116 | ) | ||||||||||
| Other postretirement benefits | 226 | 174 | 155 | 141 | ||||||||||||
| Loss and credit carryforwards | **(**790 | ) | (680 | ) | — | — | ||||||||||
| Deferred unamortized investment tax credits | **(**352 | ) | (250 | ) | **(**153 | ) | (159 | ) | ||||||||
| Valuation allowances | 143 | 113 | — | — | ||||||||||||
| Partnership basis differences | **(**91 | ) | (30 | ) | **(**159 | ) | (98 | ) | ||||||||
| Other | 75 | 187 | 38 | 40 | ||||||||||||
| Total net deferred income tax liabilities | $ | 7,885 | $ | 7,135 | $ | 4,921 | $ | 4,476 |
At December 31, 2025, Dominion Energy had the following deductible loss and credit carryforwards:
| Deductible Amount | Deferred Tax Asset | Valuation Allowance | Expiration Period | |||||||||||
| (millions) | ||||||||||||||
| Federal losses | $ | 222 | $ | 47 | $ | — | 2037 | |||||||
| Federal production and other credits | — | 61 | — | 2036**-**2045 | ||||||||||
| State losses | 2,389 | 119 | **(**63 | ) | 2026**-**2045 | |||||||||
| State minimum tax credits | — | 444 | — | No expiration | ||||||||||
| State investment and other credits | — | 119 | **(**69 | ) | 2026**-**2034 | |||||||||
| Total | $ | 2,611 | $ | 790 | $ | **(**132 | ) |
At December 31, 2025, Virginia Power had no deductible loss or credit carryforwards.
A reconciliation of changes in the Companies’ unrecognized tax benefits follows:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Balance at January 1, | $ | 170 | $ | 194 | $ | 197 | $ | 56 | $ | 52 | $ | 50 | ||||||||||||
| Prior period positions - increases | 7 | 13 | 5 | 1 | — | — | ||||||||||||||||||
| Prior period positions - decreases | **(**45 | ) | (18 | ) | (12 | ) | — | — | — | |||||||||||||||
| Current period positions - increases | — | 8 | 4 | — | 4 | 2 | ||||||||||||||||||
| Settlements with tax authorities | — | (13 | ) | — | — | — | — | |||||||||||||||||
| Expiration of statutes of limitations | — | (14 | ) | — | — | — | — | |||||||||||||||||
| Balance at December 31, | $ | 132 | $ | 170 | $ | 194 | $ | 57 | $ | 56 | $ | 52 |
Certain unrecognized tax benefits, or portions thereof, if recognized, would affect the effective tax rate. Changes in these unrecognized tax benefits may result from remeasurement of amounts expected to be realized, settlements with tax authorities and expiration of statutes of limitations. For Dominion Energy and its subsidiaries, these unrecognized tax benefits were $59 million, $87 million and $104 million at December 31, 2025, 2024 and 2023, respectively. For Virginia Power, these unrecognized tax benefits were $36 million, $35 million and $32 million at December 31, 2025, 2024 and 2023, respectively. In discontinued operations, these unrecognized tax benefits were $30 million, $32 million and $38 million at December 31, 2025, 2024 and 2023, respectively. For Dominion Energy, the change in these unrecognized tax benefits decreased income tax expense by $28 million, $19 million and $7 million in 2025, 2024 and 2023, respectively. For Virginia Power, the change in these unrecognized tax benefits increased income tax expense by $1 million in 2025 and by an inconsequential amount in 2024 and 2023.
Dominion Energy participates in the IRS Compliance Assurance Process, which provides the opportunity to resolve complex tax matters with the IRS before filing its federal income tax returns, thus achieving certainty for such tax return filing positions agreed to by the IRS. The IRS has completed its audit of tax years through 2019. The statute of limitations has not yet expired for years after 2019. Although Dominion Energy has not received a final letter indicating no changes to its taxable income for tax years 2020 through 2024, no material adjustments are expected. The IRS examination of tax year 2025 is ongoing.
Combined Notes to Consolidated Financial Statements, Continued
For each of the major states in which Dominion Energy operates or previously operated, the earliest tax year remaining open for examination is as follows:
| State | Earliest Open Tax Year | |
| Pennsylvania(1) | 2012 | |
| Connecticut | 2022 | |
| Virginia(2) | 2022 | |
| Utah(1) | 2022 | |
| South Carolina | 2022 |
(1)
Considered a major state for entities presented in discontinued operations.
(2)
Considered a major state for Virginia Power’s operations.
The Companies are also obligated to report adjustments resulting from IRS settlements to state tax authorities. In addition, if Dominion Energy utilizes operating losses or tax credits generated in years for which the statute of limitations has expired, such amounts are generally subject to examination.
Note 6. FAIR VALUE MEASUREMENTS
The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2. See Note 7 for additional information about the Companies’ derivative 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 December 31, 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: | ||||||||||||||||||||||
| Electricity | Discounted cash flow | Market price (per MWh) | (3) | $ | 224 | 29-111 | 54 | |||||||||||||||
| FTRs | Discounted cash flow | Market price (per MWh) | (3) | 156 | (3)-19 | 9 | $ | 156 | (3)-19 | 9 | ||||||||||||
| Natural gas(2) | Discounted cash flow | Market price (per Dth) | (3) | 48 | (2)-8 | (1) | 48 | (2)-8 | (1) | |||||||||||||
| Physical options: | ||||||||||||||||||||||
| Natural gas(2) | Option model | Market price (per Dth) | (3) | 214 | 2-9 | 4 | 4 | 3-8 | 6 | |||||||||||||
| Price volatility | (4) | 0%-76% | 47% | 10%-64% | 36% | |||||||||||||||||
| Total assets | $ | 642 | $ | 208 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||
| Physical and financial forwards: | ||||||||||||||||||||||
| Electricity | Discounted cash flow | Market price (per MWh) | (3) | 15 | 31-117 | 62 | ||||||||||||||||
| Total liabilities | $ | 15 |
(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 10 for information regarding impairment charges recorded by Dominion Energy associated with corporate office buildings and nonregulated renewable natural gas facilities. See Note 22 for information regarding Dominion Energy’s pension and other postretirement benefit plan remeasurements.
In 2023, Dominion Energy recorded a charge of $15 million ($11 million after-tax) presented within discontinued operations in its Consolidated Statements of Income to adjust certain nonregulated solar assets down to their estimated fair value, using a market approach, of $22 million. The valuation is considered a Level 2 fair value measurement given that it is based on bids received. As discussed in Note 3, these assets were sold in August 2023.
Recurring Fair Value Measurements
Fair value measurements are separately disclosed by level within the fair value hierarchy with a separate reconciliation of fair value measurements categorized as Level 3. Fair value disclosures for assets held in the Companies’ pension and other postretirement benefit plans are presented in Note 22.
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) | ||||||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Derivatives: | ||||||||||||||||||||||||||||||||
| Commodity | $ | — | $ | 87 | $ | 642 | $ | 729 | $ | — | $ | 49 | $ | 208 | $ | 257 | ||||||||||||||||
| Interest rate | — | 201 | — | 201 | — | 197 | — | 197 | ||||||||||||||||||||||||
| Foreign currency exchange rate | — | 28 | — | 28 | — | 28 | — | 28 | ||||||||||||||||||||||||
| Investments(1): | ||||||||||||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||||||||
| U.S. | 6,215 | — | — | 6,215 | 3,154 | — | — | 3,154 | ||||||||||||||||||||||||
| International | 168 | — | — | 168 | 96 | — | — | 96 | ||||||||||||||||||||||||
| Fixed income: | ||||||||||||||||||||||||||||||||
| Corporate debt instruments | — | 10 | — | 10 | — | — | — | — | ||||||||||||||||||||||||
| Government securities | 418 | 74 | — | 492 | 332 | — | — | 332 | ||||||||||||||||||||||||
| Cash equivalents and other | 46 | — | — | 46 | — | — | — | — | ||||||||||||||||||||||||
| Total assets | $ | 6,847 | $ | 400 | $ | 642 | $ | 7,889 | $ | 3,582 | $ | 274 | $ | 208 | $ | 4,064 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Derivatives: | ||||||||||||||||||||||||||||||||
| Commodity | $ | — | $ | 201 | $ | 15 | $ | 216 | $ | — | $ | 13 | $ | — | $ | 13 | ||||||||||||||||
| Interest rate | — | 19 | — | 19 | — | 8 | — | 8 | ||||||||||||||||||||||||
| Foreign currency exchange rate | — | 10 | — | 10 | — | 10 | — | 10 | ||||||||||||||||||||||||
| Total liabilities | $ | — | $ | 230 | $ | 15 | $ | 245 | $ | — | $ | 31 | $ | — | $ | 31 | ||||||||||||||||
| 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 $*2.3 *billion and $*212 *million of assets at Dominion Energy, inclusive of $*1.3 billion and $76 million at Virginia Power, at December 31, 2025 and 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.
Combined Notes to Consolidated Financial Statements, Continued
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 | |||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Beginning balance | $ | 384 | $ | 86 | $ | 422 | $ | 68 | $ | (116 | ) | $ | 221 | |||||||||||
| Total realized and unrealized gains (losses): | ||||||||||||||||||||||||
| Included in earnings: | ||||||||||||||||||||||||
| Operating revenue | **(**21 | ) | (6 | ) | 1 | |||||||||||||||||||
| Electric fuel and other energy-related purchases | 276 | (172 | ) | (273 | ) | 259 | (176 | ) | (278 | ) | ||||||||||||||
| Purchased gas | — | 1 | — | |||||||||||||||||||||
| Discontinued operations | — | (4 | ) | (1 | ) | |||||||||||||||||||
| Included in regulatory assets/liabilities | 121 | 297 | (414 | ) | 145 | 202 | (349 | ) | ||||||||||||||||
| Settlements | **(**336 | ) | 77 | 241 | **(**272 | ) | 137 | 255 | ||||||||||||||||
| Purchases | 183 | 112 | 104 | 8 | 21 | 35 | ||||||||||||||||||
| Transfers out of Level 3 | 20 | (7 | ) | 6 | ||||||||||||||||||||
| Ending balance | $ | 627 | $ | 384 | $ | 86 | $ | 208 | $ | 68 | $ | (116 | ) |
Dominion Energy had a $1 million gain, a $(5) million loss and a $7 million gain included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the years ended December 31, 2025, 2024 and 2023, respectively. Virginia Power had no unrealized gains and losses included in earnings in the Level 3 fair value category relating to assets/liabilities still held at the reporting date for the years ended December 31, 2025, 2024 and 2023.
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) | ||||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Long-term debt(2) | $ | 38,897 | $ | 37,481 | $ | 21,800 | $ | 20,593 | ||||||||
| Securitization bonds(3) | 1,054 | 1,076 | 1,054 | 1,076 | ||||||||||||
| Junior subordinated notes(2) | 5,978 | 6,217 | ||||||||||||||
| 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 December 31, 2025 and December 31, 2024*.*
(3)
Carrying amount includes current portions included in securities due within one year.
Note 7**. Derivatives And Hedge Accounting Activities**
See Note 2 for the Companies’ accounting policies, objectives and strategies for using derivative instruments. See Notes 2 and 6 for further information about fair value measurements and associated valuation methods for derivatives.
Cash collateral is used in the table below to offset derivative assets and liabilities. Certain of Dominion Energy’s contracts represent offsetting positions to other existing exchange contracts with collateral requirements. Additionally, certain of Dominion Energy’s over-the-counter transactions are not subject to collateral requirements. These contracts resulted in positions which limit the risk of increased cash collateral requirements. Certain accounts receivable and accounts payable recognized on the Companies’ Consolidated Balance Sheets, letters of credit and other forms of securities, as well as certain other long-term debt, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure. See Note 24 for further information regarding credit-related contingent features for the Companies derivative instruments.
Balance Sheet Presentation
The tables below present the Companies’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
| Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet | Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||||||||
| Gross Assets Presented in the Consolidated Balance Sheet(1) | Financial Instruments | Cash Collateral Received | Net Amounts | Gross Assets Presented in the Consolidated Balance Sheet(1) | Financial Instruments | Cash Collateral Received | Net Amounts | ||||||||||||||||||||||||
| (millions) | |||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||
| Commodity contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | $ | 464 | $ | 4 | $ | — | $ | 460 | $ | 239 | $ | 4 | $ | — | $ | 235 | |||||||||||||||
| Exchange | 48 | 48 | — | — | — | — | — | — | |||||||||||||||||||||||
| Interest rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 201 | 5 | — | 196 | 197 | 4 | — | 193 | |||||||||||||||||||||||
| Foreign currency exchange rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 28 | 8 | — | 20 | 28 | 8 | — | 20 | |||||||||||||||||||||||
| Total derivatives, subject to a master netting or similar arrangement | $ | 741 | $ | 65 | $ | — | $ | 676 | $ | 464 | $ | 16 | $ | — | $ | 448 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||
| Commodity contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | $ | 197 | $ | 20 | $ | — | $ | 177 | $ | 95 | $ | 14 | $ | — | $ | 81 | |||||||||||||||
| Exchange | 55 | 54 | — | 1 | 2 | 1 | — | 1 | |||||||||||||||||||||||
| Interest rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 875 | 197 | — | 678 | 230 | — | — | 230 | |||||||||||||||||||||||
| Foreign currency exchange rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 30 | 30 | — | — | 30 | 30 | — | — | |||||||||||||||||||||||
| Total derivatives, subject to a master netting or similar arrangement | $ | 1,157 | $ | 301 | $ | — | $ | 856 | $ | 357 | $ | 45 | $ | — | $ | 312 |
(1)
*Excludes derivative assets of $*217 million and $242 million at Dominion Energy at December 31, 2025 and 2024, respectively, and $18 million at Virginia Power, at both December 31, 2025 and 2024, which are not subject to master netting or similar arrangements.
| Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet | Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||||||||
| Gross Liabilities Presented in the Consolidated Balance Sheet(1) | Financial Instruments | Cash Collateral Paid | Net Amounts | Gross Liabilities Presented in the Consolidated Balance Sheet(1) | Financial Instruments | Cash Collateral Paid | Net Amounts | ||||||||||||||||||||||||
| (millions) | |||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||
| Commodity contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | $ | 38 | $ | 4 | $ | — | $ | 34 | $ | 6 | $ | 4 | $ | — | $ | 2 | |||||||||||||||
| Exchange | 173 | 48 | 125 | — | — | — | — | — | |||||||||||||||||||||||
| Interest rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 19 | 5 | — | 14 | 8 | 4 | — | 4 | |||||||||||||||||||||||
| Foreign currency exchange rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 10 | 8 | — | 2 | 10 | 8 | — | 2 | |||||||||||||||||||||||
| Total derivatives, subject to a master netting or similar arrangement | $ | 240 | $ | 65 | $ | 125 | $ | 50 | $ | 24 | $ | 16 | $ | — | $ | 8 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||
| Commodity contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | $ | 42 | $ | 20 | $ | — | $ | 22 | $ | 15 | $ | 14 | $ | — | $ | 1 | |||||||||||||||
| Exchange | 74 | 54 | 20 | — | 1 | 1 | — | — | |||||||||||||||||||||||
| Interest rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 197 | 197 | — | — | — | — | — | — | |||||||||||||||||||||||
| Foreign currency exchange rate contracts: | |||||||||||||||||||||||||||||||
| Over-the-counter | 192 | 30 | — | 162 | 192 | 30 | — | 162 | |||||||||||||||||||||||
| Total derivatives, subject to a master netting or similar arrangement | $ | 505 | $ | 301 | $ | 20 | $ | 184 | $ | 208 | $ | 45 | $ | — | $ | 163 |
(1)
*Excludes derivative liabilities of $*5 *million and $*7 *million at Dominion Energy and $*7 million and $17 million at Virginia Power at December 31, 2025 and 2024, respectively, which are not subject to master netting or similar arrangements.
Combined Notes to Consolidated Financial Statements, Continued
Volumes
The following table presents the volume of the Companies’ derivative activity at December 31, 2025. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
| Dominion Energy | Virginia Power | |||||||||||||||
| Current | Noncurrent | Current | Noncurrent | |||||||||||||
| Natural Gas (bcf): | ||||||||||||||||
| Fixed price(1) | 42 | 5 | 37 | 5 | ||||||||||||
| Basis(2) | 217 | 330 | 164 | 268 | ||||||||||||
| Electricity (MWh in millions): | ||||||||||||||||
| Fixed price | 9 | 35 | ||||||||||||||
| FTRs | 40 | 40 | ||||||||||||||
| Interest rate(3) (in millions) | $ | 3,925 | $ | 6,821 | $ | 2,350 | $ | 5,750 | ||||||||
| Foreign currency exchange rate(3) (in millions) | ||||||||||||||||
| Danish Krone | 674 kr. | 76 kr. | 674 kr. | 76 kr. | ||||||||||||
| Euro | **€**844 | **€**50 | **€**844 | **€**50 |
(1)
Includes options at Dominion Energy.
(2)
Includes options.
(3)
Maturity is determined based on final settlement period.
AOCI
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in the Companies’ Consolidated Balance Sheets at December 31, 2025:
| Dominion Energy | Virginia Power | |||||||||||||||||||||
| AOCI After-Tax | Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax | Maximum Term | AOCI After-Tax | Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax | Maximum Term | |||||||||||||||||
| (millions) | (months) | (months) | ||||||||||||||||||||
| Interest rate | $ | **(**137 | ) | $ | **(**24 | ) | 396 | $ | 32 | $ | 1 | 396 | ||||||||||
| Total | $ | **(**137 | ) | $ | **(**24 | ) | $ | 32 | $ | 1 |
The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest rate payments) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.
Fair Value and Gains and Losses on Derivative Instruments
The following tables present the fair values of the Companies’ derivatives and where they are presented in their Consolidated Balance Sheets:
| Dominion Energy | Virginia Power | |||||||||||||||
| Assets | Liabilities | Assets | Liabilities | |||||||||||||
| (millions) | ||||||||||||||||
| At December 31, 2025 | ||||||||||||||||
| Current derivatives not under cash flow hedge accounting | ||||||||||||||||
| Commodity | $ | 295 | $ | 98 | $ | 172 | $ | 12 | ||||||||
| Interest rate | — | 3 | ||||||||||||||
| Foreign currency exchange rate | 25 | 10 | 25 | 10 | ||||||||||||
| Current derivatives under cash flow hedge accounting | ||||||||||||||||
| Interest rate | 15 | — | 15 | — | ||||||||||||
| Total current derivatives | $ | 335 | $ | 111 | $ | 212 | $ | 22 | ||||||||
| Noncurrent derivatives not under cash flow hedge accounting | ||||||||||||||||
| Commodity | $ | 434 | $ | 118 | $ | 85 | $ | 1 | ||||||||
| Interest rate | 2 | 7 | ||||||||||||||
| Foreign currency exchange rate | 3 | — | 3 | — | ||||||||||||
| Noncurrent derivatives under cash flow hedge accounting | ||||||||||||||||
| Interest rate | 184 | 9 | 182 | 8 | ||||||||||||
| Total noncurrent derivatives | 623 | 134 | 270 | 9 | ||||||||||||
| Total derivatives | $ | 958 | $ | 245 | $ | 482 | $ | 31 | ||||||||
| At December 31, 2024 | ||||||||||||||||
| Current derivatives not under cash flow hedge accounting | ||||||||||||||||
| Commodity | $ | 171 | $ | 78 | $ | 84 | $ | 32 | ||||||||
| Interest rate | 101 | 22 | ||||||||||||||
| Foreign currency exchange rate | 27 | 107 | 27 | 107 | ||||||||||||
| Current derivatives under cash flow hedge accounting | ||||||||||||||||
| Interest rate | 137 | — | 137 | — | ||||||||||||
| Total current derivatives | $ | 436 | $ | 207 | $ | 248 | $ | 139 | ||||||||
| Noncurrent derivatives not under cash flow hedge accounting | ||||||||||||||||
| Commodity | $ | 323 | $ | 45 | $ | 31 | $ | 1 | ||||||||
| Interest rate | 544 | 175 | ||||||||||||||
| Foreign currency exchange rate | 3 | 85 | 3 | 85 | ||||||||||||
| Noncurrent derivatives under cash flow hedge accounting | ||||||||||||||||
| Interest rate | 93 | — | 93 | — | ||||||||||||
| Total noncurrent derivatives | 963 | 305 | 127 | 86 | ||||||||||||
| Total derivatives | $ | 1,399 | $ | 512 | $ | 375 | $ | 225 |
The following tables present the gains and losses on the Companies’ derivatives, as well as where the associated activity is presented in their Consolidated Balance Sheets and Statements of Income:
| Dominion Energy | Virginia Power | |||||||||||||||||||||||
| Derivatives in cash flow hedging relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives(1) | Amount of Gain (Loss) Reclassified from AOCI to Income | Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2) | Amount of Gain (Loss) Recognized in AOCI on Derivatives(1) | Amount of Gain (Loss) Reclassified from AOCI to Income | Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2) | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||
| Derivative type and location of gains (losses): | ||||||||||||||||||||||||
| Interest rate(3) | $ | 7 | $ | **(**39 | ) | $ | 67 | $ | 6 | $ | 1 | $ | 66 | |||||||||||
| Total | $ | 7 | $ | **(**39 | ) | $ | 67 | $ | 6 | $ | 1 | $ | 66 | |||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||
| Derivative type and location of gains (losses): | ||||||||||||||||||||||||
| Interest rate(3) | $ | 17 | (43 | ) | $ | 189 | $ | 17 | $ | — | $ | 188 | ||||||||||||
| Total | $ | 17 | $ | (43 | ) | $ | 189 | $ | 17 | $ | — | $ | 188 | |||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||
| Derivative type and location of gains (losses): | ||||||||||||||||||||||||
| Interest rate(3) | $ | (1 | ) | (43 | ) | $ | 5 | $ | (1 | ) | $ | (1 | ) | $ | 4 | |||||||||
| Total | $ | (1 | ) | $ | (43 | ) | $ | 5 | $ | (1 | ) | $ | (1 | ) | $ | 4 |
(1)
Amounts deferred into AOCI have no associated effect in the Companies’ Consolidated Statements of Income.
(2)
Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies’ Consolidated Statements of Income.
(3)
Amounts recorded in the Companies’ Consolidated Statements of Income are classified in interest and related charges*.*
Combined Notes to Consolidated Financial Statements, Continued
| Amount of Gain (Loss) Recognized in Income on Derivatives**(1)(2)** | ||||||||||||||||||||||||
| Derivatives not designated as hedging instruments | Dominion Energy | Virginia Power | ||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Derivative type and location of gains (losses): | ||||||||||||||||||||||||
| Commodity: | ||||||||||||||||||||||||
| Operating revenue | $ | **(**221 | ) | $ | 116 | $ | 707 | $ | **(**59 | ) | $ | 140 | $ | 27 | ||||||||||
| Purchased gas | **(**1 | ) | — | — | ||||||||||||||||||||
| Electric fuel and other energy-related purchases | 246 | (240 | ) | (380 | ) | 229 | (244 | ) | (384 | ) | ||||||||||||||
| Discontinued operations | — | (28 | ) | 86 | ||||||||||||||||||||
| Other operations & maintenance | — | — | 2 | — | — | 2 | ||||||||||||||||||
| Interest rate: | ||||||||||||||||||||||||
| Interest and related charges | 13 | (3 | ) | 84 | ||||||||||||||||||||
| Discontinued operations | — | — | 17 | |||||||||||||||||||||
| Total | $ | 37 | $ | (155 | ) | $ | 516 | $ | 170 | $ | (104 | ) | $ | (355 | ) |
(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies’ Consolidated Statements of Income.
(2)
Excludes amounts related to foreign currency exchange rate derivatives that are deferred to plant under construction within property, plant and equipment and regulatory assets/liabilities that will begin to amortize once the CVOW Commercial Project is placed in service.
Note 8**. Earnings Per Share**
The following table presents the calculation of Dominion Energy’s basic and diluted EPS:
| 2025 | 2024 | 2023 | |||||||||
| (millions, except EPS) | |||||||||||
| Net income attributable to Dominion Energy from continuing operations | $ | 3,012 | $ | 1,837 | $ | 2,087 | |||||
| Preferred stock dividends (See Note 19) | **(**44 | ) | (68 | ) | (81 | ) | |||||
| Preferred stock deemed dividends (See Note 19) | — | (10 | ) | — | |||||||
| Net income attributable to Dominion Energy from continuing operations - Basic & Diluted | 2,968 | 1,759 | 2,006 | ||||||||
| Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted | $ | **(**14 | ) | $ | 197 | $ | (125 | ) | |||
| Average shares of common stock outstanding – Basic | 854.1 | 839.2 | 836.4 | ||||||||
| Net effect of dilutive securities(1) | 1.2 | 0.2 | 0.1 | ||||||||
| Average shares of common stock outstanding – Diluted | 855.3 | 839.4 | 836.5 | ||||||||
| EPS from continuing operations - Basic | $ | 3.48 | $ | 2.09 | $ | 2.40 | |||||
| EPS from discontinued operations - Basic | **(**0.02 | ) | 0.24 | (0.15 | ) | ||||||
| EPS attributable to Dominion Energy - Basic | $ | 3.46 | $ | 2.33 | $ | 2.25 | |||||
| EPS from continuing operations - Diluted | $ | 3.47 | $ | 2.09 | $ | 2.40 | |||||
| EPS from discontinued operations - Diluted | **(**0.02 | ) | 0.24 | (0.15 | ) | ||||||
| EPS attributable to Dominion Energy - Diluted | $ | 3.45 | $ | 2.33 | $ | 2.25 |
(1)
Dilutive securities for 2025 consists of forward sales agreements entered into in the first, second, and third quarter of 2025 and third and fourth quarter of 2024 with certain of these securities settling in 2025 (applying the treasury stock method). Additionally, dilutive securities for 2024 consists of certain of the forward sales agreements entered into in 2024 with certain of these securities settling in 2024 (applying the treasury stock method). Dilutive securities for 2023 consists primarily of stock potentially to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method).
Certain of the forward sales agreements entered into in 2025 and 2024 were potentially dilutive securities but were excluded from the calculation of diluted EPS from continuing operations for the year ended December 31, 2025 and 2024 as the dilutive stock price threshold was not met. See Note 19 for additional information.
Note 9**. Investments**
Equity and Debt Securities
Rabbi Trust Securities
Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $181 million and $160 million at December 31, 2025 and 2024, respectively.
Decommissioning Trust Securities
The Companies hold equity and fixed income securities and cash equivalents, and Dominion Energy also holds insurance contracts, in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. The Companies’ decommissioning trust funds are summarized below:
| Dominion Energy | Virginia Power | ||||||||||||||||||||||||||||||||
| Amortized Cost | Total Unrealized Gains | Total Unrealized Losses | Allowance for Credit Losses | Fair Value | Amortized Cost | Total Unrealized Gains | Total Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
| (millions) | |||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||
| Equity securities:(1) | |||||||||||||||||||||||||||||||||
| U.S. | $ | 1,107 | $ | 5,052 | $ | **(**2 | ) | $ | 6,157 | $ | 602 | $ | 2,620 | $ | **(**2 | ) | $ | 3,220 | |||||||||||||||
| International | 44 | 122 | — | 166 | 27 | 69 | — | 96 | |||||||||||||||||||||||||
| Fixed income securities:(2) | |||||||||||||||||||||||||||||||||
| Government securities | 448 | — | — | $ | — | 448 | 332 | — | — | $ | — | 332 | |||||||||||||||||||||
| Private debt funds(3) | 2,143 | — | — | — | 2,143 | 1,213 | — | — | — | 1,213 | |||||||||||||||||||||||
| Insurance contracts(4) | 245 | — | — | — | 245 | ||||||||||||||||||||||||||||
| Cash equivalents and other(5) | 7 | — | — | — | 7 | 3 | — | — | — | 3 | |||||||||||||||||||||||
| Total | $ | 3,994 | $ | 5,174 | $ | **(**2 | ) | (6) | $ | — | $ | 9,166 | $ | 2,177 | $ | 2,689 | $ | **(**2 | ) | (6) | $ | — | $ | 4,864 | |||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||
| Equity securities:(1) | |||||||||||||||||||||||||||||||||
| U.S. | $ | 1,220 | $ | 4,157 | $ | (4 | ) | $ | 5,373 | $ | 695 | $ | 2,155 | $ | (3 | ) | $ | 2,847 | |||||||||||||||
| International | 52 | 111 | — | 163 | 34 | 65 | — | 99 | |||||||||||||||||||||||||
| Fixed income securities:(2) | |||||||||||||||||||||||||||||||||
| Corporate debt instruments | 516 | 6 | (15 | ) | $ | — | 507 | 303 | 3 | (12 | ) | $ | — | 294 | |||||||||||||||||||
| Government securities | 1,736 | 7 | (39 | ) | — | 1,704 | 1,038 | 4 | (18 | ) | — | 1,024 | |||||||||||||||||||||
| Insurance contracts(4) | 239 | — | — | 239 | |||||||||||||||||||||||||||||
| Cash equivalents and other(5) | 65 | — | — | — | 65 | 22 | — | — | — | 22 | |||||||||||||||||||||||
| Total | $ | 3,828 | $ | 4,281 | $ | (58 | ) | (6) | $ | — | $ | 8,051 | $ | 2,092 | $ | 2,227 | $ | (33 | ) | (6) | $ | — | $ | 4,286 |
(1)
Unrealized gains and losses on equity securities are included in other income (expense) and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
(2)
Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2. Changes in allowance for credit losses are included in other income (expense)**.
(3)
These private debt funds are generally structured without an explicit termination date. The Companies’ withdrawal and redemption rights begin after an initial multiyear lock-up period. Unless otherwise elected, distributions of income, profits and capital are generally reinvested in the underlying funds. The Companies may elect to receive a portion of future income as cash distributions, subject to fund liquidity restrictions. Generally, the Companies’ interests can be sold in the secondary markets subject to the approval of the general partner. Secondary markets tend to be less liquid especially during periods of market stress.
(4)
Includes company owned life insurance contracts measured at cash surrender value.
(5)
*Dominion Energy includes pending purchases of securities of $*40 *million and pending sales of securities of $35 million at December 31, 2025 and 2024, respectively. Virginia Power includes pending sales of securities of $*3 million and $22 million at December 31, 2025 and 2024, respectively.
(6)
*Dominion Energy’s fair value of securities in an unrealized loss position was $*48 *million and $1.4 billion at December 31, 2025 and 2024, respectively. Virginia Power’s fair value of securities in an unrealized loss position was $*3 million and $796 million at December 31, 2025 and 2024, respectively.
The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy and Virginia Power’s nuclear decommissioning trusts is summarized below:
| Dominion Energy | ||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Net gains (losses) recognized during the period | $ | 913 | $ | 1,020 | $ | 811 | ||||||
| Less: Net (gains) losses recognized during the period on securities sold during the period | **(**4 | ) | (16 | ) | (7 | ) | ||||||
| Unrealized gains (losses) recognized during the period on securities still held at period end(1) | $ | 909 | $ | 1,004 | $ | 804 |
(1) Included in other income (expense) and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
| Virginia Power | ||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Net gains (losses) recognized during the period | $ | 479 | $ | 532 | $ | 420 | ||||||
| Less: Net (gains) losses recognized during the period on securities sold during the period | **(**8 | ) | (11 | ) | 7 | |||||||
| Unrealized gains (losses) recognized during the period on securities still held at period end(1) | $ | 471 | $ | 521 | $ | 427 |
(1) Included in other income (expense) and the nuclear decommissioning trust regulatory liability as discussed in Note 2.
Combined Notes to Consolidated Financial Statements, Continued
The fair value of Dominion Energy and Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at December 31, 2025 by contractual maturity is as follows:
| Dominion Energy | Virginia Power | |||||||
| (millions) | ||||||||
| Due in one year or less | — | — | ||||||
| Due after one year through five years | 25 | — | ||||||
| Due after five years through ten years | 10 | — | ||||||
| Due after ten years | 413 | 332 | ||||||
| Total | $ | 448 | $ | 332 |
Presented below is selected information regarding Dominion Energy and Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.
| Dominion Energy | |||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||
| (millions) | |||||||||
| Proceeds from sales | $ | 10,492 | $ | 3,072 | $ | 2,966 | |||
| Realized gains(1) | 110 | 106 | 92 | ||||||
| Realized losses(1) | 103 | 128 | 169 |
(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability as discussed in Note 2*.*
| Virginia Power | |||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||
| (millions) | |||||||||
| Proceeds from sales | $ | 5,741 | $ | 1,925 | $ | 1,876 | |||
| Realized gains(1) | 74 | 67 | 50 | ||||||
| Realized losses(1) | 71 | 88 | 99 |
(1)
Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability as discussed in Note 2*.*
Equity Method Investments
Investments that Dominion Energy accounts for under the equity method of accounting are as follows:
| Company | Ownership% | Investment Balance | Description | ||||||||
| At December 31, | 2025 | 2024 | |||||||||
| (millions) | |||||||||||
| Align RNG | 50 | % | $ | 92 | $ | 91 | Renewable natural gas | ||||
| Dominion Privatization | 50 | % | 20 | 27 | Military electric and gas | ||||||
| Other(1)(2) | various | 20 | 20 | ||||||||
| Total | $ | 132 | $ | 138 |
(1)
*Dominion Energy’s Consolidated Balance Sheets include a liability associated with its investment in Atlantic Coast Pipeline of $*4 million and $7 million at December 31, 2025 and 2024, respectively, presented in other current liabilities. See discussion below for additional information.
(2)
Includes an inconsequential amount at December 31, 2025 related to Valley Link*.*
Dominion Energy recorded equity earnings (losses) on its investments of $(6) million, $3 million and $(26) million for the years ended December 31, 2025, 2024 and 2023, respectively, in other income (expense) in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings (losses) of $(6) million, $(12) million and $235 million for the years ended December 31, 2025, 2024 and 2023, respectively, in discontinued operations including amounts related to its investments in Cove Point (through September 2023) and Atlantic Coast Pipeline discussed below. Dominion Energy received distributions from these investments of $6 million, $140 million and $245 million for the years ended December 31, 2025, 2024 and 2023, respectively. At both December 31, 2025 and 2024, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $5 million, which is attributable to capitalized interest.
Cove Point
Prior to the completion of the sale to BHE in September 2023, Dominion held a 50% noncontrolling limited partnership interest in Cove Point which was accounted for as an equity method investment as Dominion Energy had the ability to exercise significant influence over, but not control, Cove Point.
Dominion Energy recorded distributions from Cove Point of $227 million for the year ended December 31, 2023. Dominion Energy made no contributions to Cove Point for the year ended December 31, 2023.
In June 2023, Dominion Energy entered into an agreement with Cove Point for transportation and storage services at market rates for a 20-year period commencing August 2023.
In July 2023, Dominion Energy entered into an agreement to sell its 50% noncontrolling limited partnership interest in Cove Point to BHE for cash consideration of $3.3 billion which closed in September 2023 after all customary closing and regulatory conditions were satisfied, including clearance under the Hart-Scott-Rodino Act and approval from the DOE. The sale is treated as an asset sale for tax purposes. In addition, Dominion Energy received proceeds of $199 million from the settlement of related interest rate derivatives. In connection with closing, Dominion Energy utilized proceeds, as required, to repay DECP Holding’s term loan secured by its noncontrolling interest in Cove Point, which had an outstanding balance of $2.2 billion, and $750 million of outstanding borrowings under Dominion Energy’s two $600 million 364-day term loan facilities entered in July 2023. See Note 17 for additional information on these facilities. Dominion Energy recorded a gain on the sale of its noncontrolling interest in Cove Point of $626 million ($348 million after-tax) within discontinued operations in its Consolidated Statements of Income for the year ended December 31, 2023.
In September 2023, as a result of Dominion Energy entering agreements for the East Ohio, PSNC and Questar Gas Transactions, Dominion Energy’s 50% noncontrolling limited partnership interest in Cove Point also met the requirements to be presented as discontinued operations and held for sale (through the date of disposal) as both disposition activities were executed in connection with Dominion Energy’s comprehensive business review announced in November 2022. In addition, interest expense associated with DECP Holding’s term loan secured by its noncontrolling interest in Cove Point and related interest rate derivatives have been classified as discontinued operations.
Amounts presented in discontinued operations within Dominion Energy's Consolidated Statements of Income for the year ended December 31, 2023 include $218 million for earnings on equity method investees, $120 million of interest expense and $31 million of income tax expense, in addition to the gain on sale and associated tax expense disclosed above.
All activity relating to Dominion Energy’s noncontrolling interest in Cove Point is recorded within the Corporate and Other segment.
Atlantic Coast Pipeline
In September 2014, Dominion Energy, along with Duke Energy and Southern, announced the formation of the Atlantic Coast Pipeline for the purpose of constructing an approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina. Following Dominion Energy’s acquisition from Southern of its 5% interest in Atlantic Coast Pipeline in 2020, Dominion Energy owns a 53% noncontrolling membership interest in Atlantic Coast Pipeline with Duke Energy owning the remaining interest.
Atlantic Coast Pipeline continues to be accounted for as an equity method investment as the power to direct the activities most significant to Atlantic Coast Pipeline is shared with Duke Energy. As a result, Dominion Energy has the ability to exercise significant influence, but not control, over the investee.
In July 2020, as a result of ongoing permitting delays, growing legal uncertainties and the need to incur significant capital expenditures to maintain project timing before such uncertainties could be resolved, Dominion Energy and Duke Energy announced the cancellation of the Atlantic Coast Pipeline Project.
Dominion Energy recorded earnings (losses) on equity method investees of $(6) million ($(4) million after-tax), $(13) million ($(10) million after-tax) and $15 million ($11 million after-tax) for the years ended December 31, 2025, 2024 and 2023, respectively. In connection with Dominion Energy’s decision to sell substantially all of its gas transmission and storage operations, Dominion Energy has reflected the results of its equity method investment in Atlantic Coast Pipeline as discontinued operations in its Consolidated Statements of Income. As a result of its share of equity losses exceeding its investment, Dominion Energy’s Consolidated Balance Sheets at December 31, 2025 and 2024 include a liability of $4 million and $7 million, respectively, presented in other current liabilities and reflecting Dominion Energy’s obligations to Atlantic Coast Pipeline related to AROs.
Dominion Energy recorded contributions of $10 million, $12 million and $95 million during the years ended December 31, 2025, 2024 and 2023, respectively, to Atlantic Coast Pipeline.
Dominion Energy expects it could incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows.
All activity relating to Atlantic Coast Pipeline is recorded within the Corporate and Other segment.
Align RNG
In 2025, Dominion Energy entered into and completed the acquisition of tax credits from Align RNG for a total cost of approximately $13 million.
In the fourth quarter of 2023, Dominion Energy reflected its share of an impairment of certain property, plant and equipment at Align RNG totaling $35 million ($26 million after-tax) in other income (expense) in its Consolidated Statements of Income. All activity related to Align RNG is reflected within Contracted Energy.
Dominion Privatization
In February 2024, Dominion Energy received a distribution of $126 million from Dominion Privatization, which was accounted for as a return of an investment. Additionally, at December 31, 2025, Dominion Privatization had a credit facility with Dominion Energy with a maximum capacity of $50 million, of which Dominion Privatization had $10 million of borrowings outstanding reflected in other receivables in Dominion Energy’s Consolidated Balance Sheet.
Note 10**. Property, Plant And Equipment**
Major classes of property, plant and equipment and their respective balances for the Companies are as follows:
| Dominion Energy | Virginia Power | |||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Utility: | ||||||||||||||||
| Generation | $ | 28,091 | $ | 26,854 | $ | 20,859 | $ | 20,219 | ||||||||
| Transmission | 19,609 | 17,856 | 17,164 | 15,514 | ||||||||||||
| Distribution | 25,515 | 23,572 | 18,784 | 17,261 | ||||||||||||
| Nuclear fuel | 2,439 | 2,393 | 1,936 | 1,823 | ||||||||||||
| General and other | 1,981 | 1,865 | 1,171 | 1,134 | ||||||||||||
| Plant under construction(1) | 19,199 | 13,816 | 18,382 | 12,826 | ||||||||||||
| Total utility | 96,834 | 86,356 | 78,296 | 68,777 | ||||||||||||
| Non-jurisdictional - including plant under construction | 1,815 | 1,763 | 1,815 | 1,763 | ||||||||||||
| Nonutility: | ||||||||||||||||
| Nonregulated generation- nuclear | 2,027 | 1,962 | — | — | ||||||||||||
| Nonregulated generation-solar | 1,594 | 1,207 | — | — | ||||||||||||
| Nuclear fuel | 1,018 | 1,173 | — | — | ||||||||||||
| Renewable natural gas | 1,734 | — | ||||||||||||||
| Other-including plant under construction | 1,293 | 2,383 | 10 | 10 | ||||||||||||
| Total nonutility | 7,666 | 6,725 | 10 | 10 | ||||||||||||
| Total property, plant and equipment | $ | 106,315 | $ | 94,844 | $ | 80,121 | $ | 70,550 |
(1)
*Includes $*8.6 billion and $5.8 billion of costs associated with the CVOW Commercial Project at December 31, 2025 and 2024, respectively. The amounts at December 31, 2025 and 2024 *are net of $*721 *million and $*206 million, respectively, of costs not expected to be recovered from customers.
Combined Notes to Consolidated Financial Statements, Continued
Jointly-Owned Power Stations
The Companies’ proportionate share of jointly-owned power stations at December 31, 2025 is as follows:
| Bath County Pumped Storage Station(1) | North Anna Units 1 and 2(1) | Clover Power Station(1) | Millstone Unit 3(2) | Summer Unit 1 (2) | |||||||||||||||
| (millions, except percentages) | |||||||||||||||||||
| Ownership interest | 60 | % | 88.4 | % | 50 | % | 93.5 | % | 66.7 | % | |||||||||
| Plant in service | 1,094 | 3,051 | 618 | 1,549 | 1,580 | ||||||||||||||
| Accumulated depreciation | **(**782 | ) | **(**1,451 | ) | **(**326 | ) | **(**661 | ) | **(**775 | ) | |||||||||
| Nuclear fuel | — | 835 | — | 466 | 503 | ||||||||||||||
| Accumulated amortization of nuclear fuel | — | **(**644 | ) | — | **(**352 | ) | **(**307 | ) | |||||||||||
| Plant under construction | 16 | 529 | 13 | 96 | 55 |
(1)
Units jointly owned by Virginia Power.
(2)
Units jointly owned by Dominion Energy.
The co-owners are obligated to pay their share of all future construction expenditures and operating costs of the jointly-owned facilities in the same proportion as their respective ownership interest. The Companies report their share of operating costs in the appropriate operating expense (electric fuel and other energy-related purchases, other operations and maintenance, depreciation and amortization, other taxes and other applicable accounts) in the Consolidated Statements of Income.
Canadys Station
As discussed in Note 13, in December 2025, DESC and Santee Cooper filed an application with the South Carolina Commission for approval of a CPCN to jointly construct and operate Canadys Station. At December 31, 2025, Dominion Energy’s Consolidated Balance Sheet includes $10 million within plant under construction reflected in property, plant and equipment for its share of the total costs.
CVOW Commercial Project – Estimated Total Project Cost
In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. The Virginia Commission provided such approvals in August 2022, as revised for certain provisions related to rider recovery in December 2022. The majority of turbines comprising the 2.6 GW project are expected to be placed in service by the end of 2026 with the remainder in early 2027. The estimated total project cost is approximately $11.5 billion (excluding financing costs) which reflects a temporary suspension of work order and an estimated impact of certain tariffs which became effective during 2025 as well as the previously included revised estimate of network upgrade costs assigned by PJM to the CVOW Commercial Project. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs.
The expected total project cost reflects an increase of $0.2 billion, relative to Virginia Power’s October 2025 Rider OSW filing, associated with projected installation timeline changes arising from the temporary suspension of work from the BOEM Director’s Order issued in December 2025 until a preliminary injunction was granted by the U.S District Court for the Eastern District of Virginia in January 2026, which allowed work to resume. The estimated total project costs also include $0.6 billion of tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries and on equipment expected to be delivered from March 2025 through early 2027 that contains steel. Such amount is inclusive of approximately $0.2 billion associated with tariffs on equipment expected to be delivered from March 2025 through March 2026 that originates from Mexico, Canada, a European Union member or other applicable countries that were the subject of a U.S. Supreme Court’s ruling on February 20, 2026. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component.
As previously considered in Virginia Power’s February 2025 construction update filing, the expected total project cost reflects projections for onshore electrical interconnection costs and network upgrade costs assigned to the project by PJM, specifically incorporating consideration of PJM’s December 2024 publication of potential transmission network upgrades required for certain generation projects and related cost allocations, including those attributable to the CVOW Commercial Project. Relative to Virginia Power’s November 2024 Rider OSW filing, the estimated total project cost reflects an approximately $0.6 billion increase for such onshore and network upgrade costs and an approximately $0.3 billion increase for increased contingency for remaining construction activities, completion of the removal of unexploded ordnance, undersea cable protection system design enhancements, commodity prices for transportation fuel, updates for sea fastener fabrication and installation and other construction and equipment supplier costs. Virginia Power has entered into fixed price contracts for the major offshore construction and equipment components. The contracts include services denominated in currencies other than the U.S. dollar, for which Virginia Power has entered forward contracts to economically hedge.
In accordance with the Virginia Commission’s December 2022 order, the Companies are subject to a cost sharing mechanism in which Virginia Power will be eligible to recover 50% of such incremental costs which fall between $10.3 billion and $11.3 billion with no recovery of such incremental costs which fall between $11.3 billion and $13.7 billion. There is no cost sharing mechanism for any total construction costs in excess of $13.7 billion, the recovery of which would be determined in a future Virginia Commission proceeding. In October 2024, Virginia Power completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak as discussed below.
As a result of the revised total project cost estimates and cost sharing mechanism, during 2025 Virginia Power recorded charges for costs not expected to be recovered from customers of $515 million within impairments of assets and other charges, which includes $257 million attributable to noncontrolling interests, and an associated income tax benefit of $66 million, in addition to recording in the fourth quarter of 2024 a $206 million charge within impairments of assets and other charges, which includes $103 million attributable to noncontrolling interests, and an associated income tax benefit of $26 million, all reflected in the Corporate and Other segment, in the Companies’
Consolidated Statements of Income. The Companies are currently unable to estimate the expected impact of the ruling issued by the U.S. Supreme Court on February 20, 2026, on its financial position, results of operations and/or cash flows.
The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs including any potential impact of Section 232 investigations and litigation ruled on by the U.S. Supreme Court on February 20, 2026, costs to maintain necessary permits, approvals and authorizations, any additional suspension of work orders, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events. Any additional increase in such costs in excess of the contingency included in the estimated total project cost would be subject to the cost sharing mechanisms described above and could have a material impact on the Companies’ future financial condition, results of operations and/or cash flows.
Sale of Noncontrolling Interest in CVOW Commercial Project
In February 2024, Virginia Power entered into an agreement to sell a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the formation of OSWP. In October 2024, Virginia Power and Stonepeak closed on the agreement following the receipt of consent by BOEM and satisfaction of other customary closing and regulatory conditions. Consistent with the terms of the agreement, Virginia Power contributed the CVOW Commercial Project and Stonepeak contributed cash to OSWP. The contribution of the CVOW Commercial Project required approvals from the Virginia and North Carolina Commissions, which were received in September 2024. At closing, Virginia Power received $2.6 billion, prior to consideration of customary post-closing adjustments, representing 50% of the CVOW Commercial Project construction costs incurred through closing, less an initial withholding of $145 million. If the total project costs of the CVOW Commercial Project are $9.8 billion, excluding financing costs, or less Virginia Power shall receive $100 million of the initial withholding. Such amount is subject to downward adjustment with Virginia Power receiving no withheld amounts if the total costs, excluding financing costs, of the CVOW Commercial Project exceed $11.3 billion.
Virginia Power and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of the CVOW Commercial Project provided the total project cost, excluding financing costs, is less than $11.3 billion. For capital funding necessary, if any, for total project costs, excluding financing costs, of $11.3 billion through $13.7 billion, Stonepeak will have the option to make additional capital contributions. If Stonepeak elects to make additional capital contributions for project costs, excluding financing costs, in excess of $11.3 billion, if any, Virginia Power shall contribute between 67% and 83% of such capital with Stonepeak contributing the remainder. To the extent that Stonepeak elects not to make such contributions, Virginia Power shall receive an increase in its ownership percentage of OSWP for any contributed capital based on a tiered unit price for membership interests in OSWP as set forth in the agreement. Virginia Power and Stonepeak have the right to provide capital contributions for any total project costs, excluding financing costs, in excess of $13.7 billion.
OSWP is considered to be a VIE primarily because its equity capitalization is insufficient to support its operations. Virginia Power is considered to be the primary beneficiary and consolidates OSWP with Stonepeak’s interests reflected as noncontrolling interests beginning in the fourth quarter of 2024 as Virginia Power has the power to direct the most significant activities of OSWP, including construction and operation of the CVOW Commercial Project. In the event that OSWP ceases to be a VIE, Virginia Power expects to continue to consolidate OSWP as its ownership interest is expected to be considered a controlling financial interest over the entity through its rights to control operations.
Virginia Power Easement Agreement
In November 2023, Virginia Power entered into an agreement to pay $65 million for an easement related to the CVOW Commercial Project for which it will not seek recovery and therefore recorded a charge of $65 million ($49 million after-tax) within impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment).
Nonregulated Solar Projects
The following table presents acquisitions by Dominion Energy of solar projects (reflected in Contracted Energy unless otherwise noted).
| Project Name | Date Agreement Entered | Date Agreement Closed | Project Location | Project Cost (millions)(1) | Date of Commercial Operations | MW Capacity | |||||||||
| Madison(2) | July 2020 | July 2020 | Virginia | 165 | N/A | 62 | |||||||||
| Hardin II | August 2020 | Terminated(3) | |||||||||||||
| Atlanta Farms | March 2022 | May 2022 | Ohio | 390 | January 2025(4) | 200 | |||||||||
| Foxhound | March 2023 | February 2024 | Virginia | 195 | April 2024(4) | 83 |
(1)
Includes acquisition costs.
(2)
Madison was reflected in the Corporate and Other segment before its sale in April 2024. See Note 3 for discussion.
(3)
In January 2023, Dominion Energy terminated its agreement, without penalty, to acquire Hardin II.
(4)
Dominion Energy is claiming production tax credits on the energy generated and sold by these projects.
In addition to the facilities discussed above, Dominion Energy has also entered into various agreements to install solar facilities (reflected in the Corporate and Other segment), primarily at schools in Virginia. For the year ended December 31, 2025, Dominion Energy placed in service solar facilities with an aggregate generation capacity of 4 MW at a cost of $9 million and anticipates placing additional
Combined Notes to Consolidated Financial Statements, Continued
facilities in service by the end of 2026 with an estimated total projected cost of approximately $10 million and an aggregate generation capacity of 4 MW. Dominion Energy has claimed or expects to claim federal investment tax credits on the projects.
Acquisition of Early Stage Generation Facility
In November 2025, Virginia Power entered into and closed on an agreement to acquire approximately 1,200 acres of land in Virginia and associated electric generation project assets in the early stages of development for $113 million. Under the terms of the agreement, $13 million of the purchase price was paid at closing with the remainder to be paid periodically through 2028. At December 31, 2025, Virginia Power’s Consolidated Balance Sheet includes $25 million in other current liabilities and $75 million in other deferred credits and other liabilities.
Regulated Solar Development Projects
In December 2025 and February 2026, Virginia Power entered into two separate agreements related to the development of certain solar generation facilities. Under the terms of the agreements, Virginia Power will acquire the solar generation facilities following the completion of construction at a purchase price based on the installed capacity, which Virginia Power estimates will be approximately $1.3 billion in aggregate. The solar generation facilities are expected to be completed in 2029 with an aggregate generation capacity of approximately 400 MW. Virginia Power expects to recover the cost of these solar generation facilities through Rider CE.
Acquisition of Offshore Wind Project
In July 2024, Virginia Power entered into an agreement to acquire an approximately 40,000-acre area lease 27 miles off the coast of North Carolina in federal waters and associated project assets in the early stages of development for approximately $160 million. The transaction closed in October 2024 following the receipt of approval from BOEM and other customary regulatory approvals. The CVOW South project, if constructed, is expected to have a generating capacity of 800 MW with ultimate development of the project dependent upon the receipt of approvals from the Virginia Commission and other permitting entities. The project would support Virginia Power’s ability to meet the renewable energy portfolio standards established in the VCEA.
Sales of Corporate Office Buildings
In 2023, Dominion Energy entered into an agreement for the sale of a corporate office building for total cash consideration of $40 million. In the second quarter of 2024, Dominion Energy recorded a charge of $17 million ($12 million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income to adjust the corporate office building down to its estimated fair value, using a market approach, of $23 million. The valuation is considered a Level 3 fair value measurement as it is based on unobservable inputs due to limited comparable market activity. In the third quarter of 2024, Dominion Energy entered into a new agreement to sell the corporate office building, which closed in December 2024 for $19 million, and recorded an inconsequential loss upon closing.
In 2023, Dominion Energy recorded a charge of $93 million ($69 million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income to adjust a corporate office building down to its estimated fair value, using a market approach, of $35 million. The valuation is considered a Level 3 fair value measurement as it is based on unobservable inputs due to limited comparable market activity. Dominion Energy completed the sale in July 2024.
All activity related to the sales of these corporate office buildings is reflected in the Corporate and Other segment.
Nonregulated Renewable Natural Gas Facilities
Dominion Energy recorded impairment charges of $33 million ($25 million after-tax) and $27 million ($21 million after-tax) in the second and third quarters of 2024, respectively, in impairment of assets and other charges in the Consolidated Statements of Income reflected in the Corporate and Other segment, to write down the long-lived assets of certain nonregulated renewable natural gas facilities under development to their estimated fair values which were each less than $1 million. The fair values were estimated using an income approach. The valuations are considered Level 3 fair value measurements due to the use of significant judgmental and unobservable inputs, including projected timing and amount of future cash flows and discount rates reflecting risks inherent in future cash flows and market prices.
Sale of Utility Property
In 2023, Dominion Energy completed the sales of certain utility property in South Carolina, as approved by the South Carolina Commission in February 2023, for total cash consideration of $12 million. In connection with the sales, Dominion Energy recognized a gain of $11 million ($8 million after-tax), recorded in other operations and maintenance expense in its Consolidated Statements of Income (reflected in the Corporate and Other segment) for the year ended December 31, 2023.
Note 11**. Goodwill and Intangible Assets**
Goodwill
The changes in Dominion Energy’s carrying amount and segment allocation of goodwill are presented below:
| Dominion Energy Virginia | Dominion Energy South Carolina | Contracted Energy | Corporate and Other | Total | |||||||||||||||
| (millions) | |||||||||||||||||||
| Balance at December 31, 2023(1) | $ | 2,106 | $ | 1,521 | $ | 516 | $ | — | $ | 4,143 | |||||||||
| No events affecting goodwill | — | — | — | — | — | ||||||||||||||
| Balance at December 31, 2024(1) | $ | 2,106 | $ | 1,521 | $ | 516 | $ | — | $ | 4,143 | |||||||||
| No events affecting goodwill | — | — | — | — | — | ||||||||||||||
| Balance at December 31, 2025(1) | $ | 2,106 | $ | 1,521 | $ | 516 | $ | — | $ | 4,143 |
(1)
Goodwill amounts do not contain any accumulated impairment losses.
Other Intangible Assets
The Companies’ other intangible assets are subject to amortization over their estimated useful lives. Dominion Energy’s amortization expense for software, licenses and other intangible assets was $111 million, $87 million and $160 million for the years ended December 31, 2025, 2024 and 2023, respectively. In 2025, Dominion Energy acquired $962 million of intangible assets, primarily representing renewable energy credits and software, with an estimated weighted-average amortization period of approximately 4 years. Amortization expense for Virginia Power’s software, licenses and other intangible assets was $74 million, $51 million and $123 million for the years ended December 31, 2025, 2024 and 2023, respectively. In 2025, Virginia Power acquired $872 million of intangible assets, primarily representing renewable energy credits and software, with an estimated weighted-average amortization period of 3 years.
The components of intangible assets are as follows:
| 2025 | 2024 | ||||||||||||
| At December 31, | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||
| (millions) | |||||||||||||
| Dominion Energy | |||||||||||||
| Software, licenses and other | $ | 1,950 | $ | 820 | $ | 1,645 | $ | 708 | |||||
| Renewable energy credits(1) | 552 | — | 199 | — | |||||||||
| Virginia Power | |||||||||||||
| Software, licenses and other | $ | 1,125 | $ | 365 | $ | 911 | $ | 291 | |||||
| Renewable energy credits(1) | 550 | — | 198 | — |
(1)
*Includes $*342 million and $370 million of renewable energy credits consumed and retired in 2025 and 2024, respectively. All amounts for renewable energy credits were deferred to regulatory assets upon consumption.
Annual amortization expense for intangible assets, excluding renewable energy credits which are deferred to regulatory assets, is estimated to be as follows:
| (millions) | 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||
| Dominion Energy | $ | 107 | $ | 97 | $ | 84 | $ | 72 | $ | 46 | ||||||
| Virginia Power | 70 | 65 | 56 | 50 | 31 |
Combined Notes to Consolidated Financial Statements, Continued
Note 12**. Regulatory Assets And Liabilities**
Regulatory assets and liabilities include the following:
| Dominion Energy | Virginia Power | |||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Regulatory assets: | ||||||||||||||||
| Deferred cost of fuel used in electric generation(1) | $ | 213 | $ | 38 | $ | 174 | $ | 3 | ||||||||
| Securitized cost of fuel used in electric generation(2) | 125 | 124 | 125 | 124 | ||||||||||||
| Riders OSW and CE(3) | 23 | 7 | 23 | 7 | ||||||||||||
| Other deferred rider costs for Virginia electric utility(4) | 445 | 286 | 445 | 286 | ||||||||||||
| Ash pond and landfill closure costs(5) | 164 | 108 | 164 | 108 | ||||||||||||
| Deferred nuclear refueling outage costs(6) | 101 | 97 | 101 | 80 | ||||||||||||
| NND Project costs(7) | 138 | 138 | ||||||||||||||
| Derivatives(8) | 3 | 8 | — | 6 | ||||||||||||
| Other | 168 | 186 | 78 | 83 | ||||||||||||
| Regulatory assets-current | 1,380 | 992 | 1,110 | 697 | ||||||||||||
| Unrecognized pension and other postretirement benefit costs(9) | 527 | 486 | — | — | ||||||||||||
| Riders OSW and CE(3) | 287 | 117 | 287 | 117 | ||||||||||||
| Other deferred rider costs for Virginia electric utility(4) | 338 | 534 | 338 | 534 | ||||||||||||
| Interest rate hedges(10) | 165 | 167 | — | — | ||||||||||||
| AROs and related funding(11) | 385 | 387 | ||||||||||||||
| NND Project costs(7) | 1,672 | 1,811 | ||||||||||||||
| CCR remediation, ash pond and landfill closure costs(5) | 2,868 | 2,898 | 2,510 | 2,560 | ||||||||||||
| Deferred cost of fuel used in electric generation(1) | 391 | — | 391 | — | ||||||||||||
| Securitized cost of fuel used in electric generation(2) | 868 | 1,040 | 868 | 1,040 | ||||||||||||
| Derivatives(8) | 33 | 182 | — | 148 | ||||||||||||
| Other | 742 | 666 | 132 | 138 | ||||||||||||
| Regulatory assets-noncurrent | 8,276 | 8,288 | 4,526 | 4,537 | ||||||||||||
| Total regulatory assets | $ | 9,656 | $ | 9,280 | $ | 5,636 | $ | 5,234 | ||||||||
| Regulatory liabilities: | ||||||||||||||||
| Deferred cost of fuel used in electric generation(1) | 3 | 92 | 3 | 92 | ||||||||||||
| Provision for future cost of removal and AROs(12) | 101 | 119 | 101 | 119 | ||||||||||||
| Reserve for rate credits to electric utility customers(13) | 34 | 73 | — | — | ||||||||||||
| Income taxes refundable through future rates(14) | 110 | 88 | 77 | 64 | ||||||||||||
| Monetization of guarantee settlement(15) | 67 | 67 | ||||||||||||||
| Derivatives(8) | 158 | 51 | 135 | 30 | ||||||||||||
| Other | 69 | 89 | 58 | 80 | ||||||||||||
| Regulatory liabilities-current | 542 | 579 | 374 | 385 | ||||||||||||
| Income taxes refundable through future rates(14) | 2,854 | 2,988 | 2,046 | 2,168 | ||||||||||||
| Provision for future cost of removal and AROs(12) | 1,950 | 1,809 | 1,346 | 1,210 | ||||||||||||
| Nuclear decommissioning trust(16) | 2,494 | 2,115 | 2,494 | 2,115 | ||||||||||||
| Monetization of guarantee settlement(15) | 501 | 568 | ||||||||||||||
| Interest rate hedges(10) | 461 | 406 | 461 | 406 | ||||||||||||
| Reserve for rate credits to electric utility customers(13) | 128 | 161 | — | — | ||||||||||||
| Overrecovered other postretirement benefit costs(17) | 209 | 183 | ||||||||||||||
| Derivatives(8) | 228 | 248 | 31 | 25 | ||||||||||||
| Other | 247 | 283 | 152 | 215 | ||||||||||||
| Regulatory liabilities-noncurrent | 9,072 | 8,761 | 6,530 | 6,139 | ||||||||||||
| Total regulatory liabilities | $ | 9,614 | $ | 9,340 | $ | 6,904 | $ | 6,524 |
(1)
*Reflects deferred fuel expenses as well as, beginning in June 2025, deferred electric capacity expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s electric generation operations. Additionally, Dominion Energy includes deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations. In February 2024, Virginia Power completed a securitization of $*1.3 billion of under-recovered fuel costs for its Virginia service territory. See Note 18 for additional information.
(2)
Reflects under-recovered fuel costs for Virginia Power’s Virginia service territory securitized through the issuance of bonds by VPFS in February 2024, which are being amortized into electric fuel and other energy-related purchases. See Note 18 for additional information.
(3)
*Deferred balances for Riders OSW and CE include amounts for shortfall or excess in energy sales, capacity revenue, renewable energy credits and production tax credits as such customer benefit amounts are included as a component, including an equity return, of the revenue requirements associated with each rate adjustment clause. In addition, the deferred Rider OSW balance at December 31, 2025 includes $*4 million for future decommissioning activities.
(4)
*Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects. In 2023, Virginia Power recorded a charge of $*36 *million ($*27 million after-tax), included in impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment), for the write-off of certain previously deferred amounts related to rate adjustment clauses associated with the recovery of costs related to Bear Garden, Virginia City Hybrid Energy Center and Warren County in connection with the cessation of such riders effective July 2023. See Note 13 for additional information.
(5)
Primarily reflects legislation in Virginia which requires any CCR asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through beneficial reuse. These deferred costs are expected to be collected over a period between 15 and 18 years commencing
December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs on uncollected expenditures once expenditures have been made. In addition, reflects amounts related to the EPA’s May 2024 final rule concerning CCR as discussed in Note 14.
(6)
Primarily reflects deferred operation and maintenance costs at Virginia Power incurred in connection with the refueling of any nuclear-powered generating plant as required by Virginia legislation. Virginia Power deferred costs will be amortized over the refueling cycle, not to exceed 18 months.
(7)
Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20*-year period ending in 2039.*
(8)
Represents changes in the fair value of derivatives, excluding separately presented interest rate hedges, that following settlement are expected to be recovered from or refunded to customers.
(9)
Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy’s rate-regulated subsidiaries.
(10)
Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 24 years for both Dominion Energy and Virginia Power at December 31, 2025*.*
(11)
Represents uncollected costs, including deferred depreciation and accretion expense, related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC’s electric generating facilities, including Summer, and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately 105 years.
(12)
Rates charged to customers by Dominion Energy and Virginia Power’s regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.
(13)
Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11*-year period effective February 2019, in connection with the SCANA Merger Approval Order.*
(14)
Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will primarily reverse at the weighted-average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.
(15)
Reflects amounts to be refunded to DESC electric service customers over a 20*-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement.*
(16)
Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses, changes in fair value and taxes thereon, as applicable) for the future decommissioning of Virginia Power’s utility nuclear generation stations, in excess of the related AROs.
(17)
Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.
At December 31, 2025, Dominion Energy and Virginia Power regulatory assets include $5.8 billion and $4.1 billion, respectively, on which they do not expect to earn a return during the applicable recovery period. With the exception of certain items discussed above, the majority of these expenditures are expected to be recovered within the next two years.
Note 13**. Regulatory Matters**
Regulatory Matters Involving Potential Loss Contingencies
As a result of issues generated in the ordinary course of business, the Companies are involved in various regulatory matters. Certain regulatory matters may ultimately result in a loss; however, as such matters are in an initial procedural phase, involve uncertainty as to the outcome of pending reviews or orders and/or involve significant factual issues that need to be resolved, it is not possible for the Companies to estimate a range of possible loss. For regulatory matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the regulatory process such that the Companies are able to estimate a range of possible loss. For regulatory matters that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any estimated range is based on currently available information, involves elements of judgment and significant uncertainties and may not represent the Companies’ maximum possible loss exposure. The circumstances of such regulatory matters will change from time to time and actual results may vary significantly from the current estimate. For current matters not specifically reported below, management does not anticipate that the outcome from such matters would have a material effect on the Companies’ financial position, liquidity or results of operations.
Other Regulatory MATTERS
Virginia Regulation – Key Legislation Affecting Operations
Regulation Act and Grid Transformation and Security Act of 2018
The Regulation Act enacted in 2007 instituted a cost-of-service rate model that authorizes stand-alone rate adjustment clauses for recovery of costs for new generation projects, FERC-approved transmission costs, underground distribution lines, environmental compliance, conservation and energy efficiency programs, renewable energy programs and nuclear license renewals, and also contains statutory provisions directing Virginia Power to file annual fuel cost recovery cases with the Virginia Commission.
If the Virginia Commission’s future rate decisions, including actions relating to Virginia Power’s rate adjustment clause filings, differ materially from Virginia Power’s expectations, it may adversely affect its results of operations, financial condition and cash flows.
The GTSA reinstated base rate reviews commencing with the 2021 Triennial Review. In the triennial review proceedings, earnings that were more than 70 basis points above the utility’s authorized ROE that might have been refunded to customers and served as the basis for a reduction in future rates, could be reduced by Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects that Virginia Power elected to include in a CCRO. The legislation declared that electric distribution grid
Combined Notes to Consolidated Financial Statements, Continued
transformation projects are in the public interest and provided that the costs of such projects may be recovered through a rate adjustment clause if not the subject of a CCRO. Any costs that were the subject of a CCRO were deemed recovered in base rates during the triennial period under review and could not be included in base rates in future triennial review proceedings. In any triennial review in which the Virginia Commission determined that the utility’s earnings were more than 70 basis points above its authorized ROE, base rates were subject to reduction prospectively and customer refunds would be due unless the total CCRO elected by the utility equaled or exceeded the amount of earnings in excess of the 70 basis points. For the purposes of measuring any customer refunds or CCRO amounts utilized under the GTSA, associated income taxes were factored into the determination of such amounts. In the 2021 Triennial Review, any such rate reduction was limited to $50 million. This section of the GTSA concerning base rate reviews was amended by 2023 legislation as discussed below.
Virginia 2020 Legislation
In April 2020, the Governor of Virginia signed into law the VCEA, which along with related legislation forms a comprehensive framework affecting Virginia Power’s operations. The VCEA replaces Virginia’s voluntary renewable energy portfolio standard for Virginia Power with a mandatory program setting annual renewable energy portfolio standard requirements based on the percentage of total electric energy sold by Virginia Power, excluding existing nuclear generation and certain new carbon-free resources, reaching 100% by the end of 2045. The VCEA includes related requirements concerning deployment of wind, solar and energy storage resources, as well as provides for certain measures to increase net-metering, including an allocation for low-income customers, incentivizes energy efficiency programs and provides for cost recovery related to participation in a carbon trading program. While the legislation affects several portions of Virginia Power’s operations, key provisions of the GTSA remained in effect, including the triennial review structure and timing, the use of the CCRO and the $50 million cap on revenue reductions in the first triennial review proceeding. Key provisions of the VCEA and related legislation passed include the following:
Fossil Fuel Electric Generation: The legislation mandates Chesterfield Power Station Units 5 & 6 and Yorktown Power Station Unit 3 to be retired by the end of 2024, Altavista, Southampton and Hopewell to be retired by the end of 2028 and Virginia Power’s remaining fossil fuel units to be retired by the end of 2045, unless the retirement of such generating units will compromise grid reliability or security. In addition, the Virginia Commission shall determine the amortization period for recovery of any appropriate costs due to the early retirement of any electric generation facilities. Virginia Power revised the depreciable lives of Altavista, Southampton and Hopewell for the mandated retirement to the end of 2028, which did not have a material impact to Virginia Power’s results of operations or cash flows given the existing regulatory framework. This section of the VCEA concerning mandatory retirements of certain facilities by the end of 2028 was amended by 2023 legislation as discussed below. As a result, in November 2023 Virginia Power revised the depreciable lives of Altavista, Southampton and Hopewell and implemented useful life assumptions that were effective before the previous revision.
Renewable Generation: The legislation provides a detailed renewable energy portfolio standard to achieve 100% zero-carbon generation by the end of 2045, excluding existing nuclear generation and certain new carbon-free resources. Components include requirements to petition the Virginia Commission for approval to construct or acquire new generating capacity to reach 16.1 GW of installed solar and onshore wind by the end of 2035, which includes specific requirements for utility-scale solar of 3.0 GW by the end of 2024, up to 15.0 GW by the end of 2035 and 1.1 GW of small-scale solar by the end of 2035. The legislation deems 2.7 GW of energy storage, including up to 800 MW for any one project which may include a pumped storage facility, by the end of 2035 to be in the public interest. The legislation also deems the construction or purchase of an offshore wind facility constructed off the Virginia coast with a capacity of up to 5.2 GW before 2035 to be in the public interest and provides certain presumptions facilitating cost recovery. The costs of such a facility constructed by the utility with a capacity between 2.5 and 3.0 GW will be presumed reasonably and prudently incurred if the Virginia Commission finds that the project meets competitive procurement requirements, the projected cost of the facility does not exceed a specified industry benchmark and the utility commences construction by the end of 2023 or has a plan for the facility to be in service by the end of 2027. Projects to meet these requirements are subject to approval by the Virginia Commission.
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Energy Efficiency: The legislation includes an energy efficiency target of 5% energy savings, as measured from a 2019 baseline, through verifiable energy efficiency programs by the end of 2025 with future targets to be set by the Virginia Commission. Virginia Power has the opportunity to offset the lost revenues with margins on program spend if certain targets are achieved and can also seek recovery of the lost revenues associated with energy efficiency programs if such reductions are found to have caused Virginia Power to earn more than 50 basis points below a fair rate of return on its rates for generation and distribution services. In February 2025, the Virginia Commission issued its order establishing energy savings targets for Virginia Power of 3.00% for 2026, 4.00% for 2027 and 5.00% for 2028, as measured from a 2019 baseline.
Carbon trading program: The legislation authorizes Virginia to participate in a market-based carbon trading program consistent with RGGI through 2050. In January 2022, the Governor of Virginia issued an executive order which put directives in place to start administrative steps to withdraw Virginia from RGGI. In December 2023, the withdrawal took effect, which remains subject to ongoing legal challenges. All costs of the carbon trading program are recoverable through an environmental rider.
Low-income customers: The legislation includes the establishment of a percentage of income payment program to be administered by the Virginia Department of Housing and Community Development and the Virginia Department of Social Services. To fund the program, Virginia Power will remit amounts collected from customers under a universal service fee established and set by the Virginia Commission. As such, this program will not affect Virginia Power’s results of operations, financial position or cash flows. In December
2020, the Virginia Commission issued a final order confirming a revenue requirement of $93 million related to this program. Implementation details and the effective date of the program would be established in future legislation prior to collection of fees from customers. In October 2023, the Virginia Commission approved the collection by Virginia Power of a universal service fee of $71 million from customers during the rate year beginning November 2023, including the impact on certain non-jurisdictional customers which follow Virginia Power’s jurisdictional customer rate methodology.
Virginia 2023 Legislation
In April 2023, legislation was enacted that amended several key provisions of the Regulation Act, as previously amended by the GTSA, and revised portions of the existing regulatory framework affecting Virginia Power’s operations.
The legislation resets the frequency of base rate reviews from a triennial period, as established under the GTSA, to a biennial period commencing with the 2023 Biennial Review. Such biennial reviews shall include the establishment of an authorized ROE to be utilized for base rates and riders, prospective base rates for the upcoming two-year period based on projected cost of service and a determination by the Virginia Commission as to Virginia Power’s base rate earned return for the most recently completed two-year period against the previously authorized ROE, including any potential credits to customers’ bills.
The legislation provides that the Virginia Commission will establish an authorized ROE of 9.70% for Virginia Power in the 2023 Biennial Review, reflecting the average authorized ROE of vertically integrated electric utilities by the applicable regulatory commissions in the peer group jurisdictions of Florida, Georgia, Texas, Tennessee, West Virginia, Kentucky and North Carolina. Subsequent to the 2023 Biennial Review, all provisions related to this peer group benchmarking expire and the Virginia Commission is authorized to utilize any methodology it deems to be consistent with the public interest to make future ROE determinations. In all biennial reviews following the 2023 Biennial Review, if the Virginia Commission determines that Virginia Power’s existing base rates will, on a going-forward basis, produce revenues that are either in excess of or below its authorized rate of return, the Virginia Commission is authorized to reduce or increase such base rates, as applicable and necessary, to ensure that Virginia Power’s base rates are just and reasonable while still allowing Virginia Power to recover its costs and earn a fair rate of return. In addition, beginning with the 2025 Biennial Review, the Virginia Commission may, at its discretion, increase or decrease Virginia Power’s authorized ROE by up to 50 basis points based on factors that may include reliability, generating plant performance, customer service and operating efficiency, with the provisions applying to such adjustments to be determined in a future proceeding.
The legislation directs that if the Virginia Commission determines as part of the 2023 Biennial Review that Virginia Power has earned more than 70 basis points above its authorized ROE of 9.35% established in the 2021 Triennial Review that 85% of the amount of such earnings above this level be credited to customers’ bills. In future biennial reviews, beginning with the biennial review to be filed in 2025, 85% of any earnings determined by the Virginia Commission to be up to 150 basis points above Virginia Power’s authorized ROE shall be credited to customers’ bills as well as 100% of any earnings that are more than 150 basis points above Virginia Power’s authorized ROE. For the purposes of measuring any bill credits due to customers, associated income taxes are factored into the determination of such amounts. In addition, the legislation eliminates Virginia Power’s ability to utilize Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects as a CCRO to reduce or offset any earnings otherwise eligible for customer credits as previously permitted under the GTSA.
In addition to the biennial review mechanisms discussed above, the legislation also includes provisions related to other aspects of Virginia Power’s ratemaking framework.
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Riders into base rates: Virginia Power is required to combine certain riders with an aggregate annual revenue requirement of at least $350 million with its base rates effective July 2023. After such riders are combined, they will be considered as part of base rates for the purposes of the biennial review proceedings. The inclusion of such riders cannot serve as the basis for an increase in base rates as part of the 2023 Biennial Review.
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Rider consolidation: Upon determination by the Virginia Commission, certain riders, while remaining separate from base rates, may be consolidated for cost recovery and review purposes.
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Capitalization ratio: The legislation establishes that Virginia Power is required to undertake reasonable efforts to maintain a common equity capitalization to total capitalization ratio through December 2024 of 52.10%.
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Fuel cost securitization: Virginia Power is authorized, on or before July 2024, to petition the Virginia Commission for approval of a financing order for certain deferred fuel costs. Virginia Power is required to permit certain retail customers to opt out of any such deferred fuel cost securitization.
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Electric generation plant retirements: The Virginia Commission shall provide to the Virginia General Assembly, on an annual basis, a report that includes information concerning the reliability impacts of generation unit additions and retirement determinations, along with the potential impact on the purchase of power from generation assets outside of the Virginia jurisdiction, the result of which could impact the depreciable lives of Virginia Power’s electric generation facilities in future periods.
In addition, in May 2023 legislation was enacted that amended certain portions of the VCEA to qualify generation produced by Virginia Power’s biomass electric generating stations as renewable energy and eliminate the mandated retirement of such facilities by the end of 2028.
Virginia Power is incurring and expects to incur significant costs, including capital expenditures, to comply with the legislative requirements discussed above. The legislation allows for cost recovery under the existing or modified regulatory framework through rate adjustment clauses, rates for generation and distribution services or Virginia Power’s fuel factor, as approved by the Virginia Commission. Costs allocated to the North Carolina jurisdiction will be recovered, subject to approval by the North Carolina Commission, in accordance with the existing regulatory framework.
Combined Notes to Consolidated Financial Statements, Continued
Virginia Regulation – Key Developments
2025 Biennial Review
In March 2025, Virginia Power filed its base rate case and accompanying schedules in support of the 2025 Biennial Review in accordance with legislation enacted in Virginia in April 2023. Virginia Power’s earnings test analysis, as filed, demonstrated it earned a combined ROE of 7.77% on its generation and distribution services for the test period, compared to the ROE of 9.70% authorized by the Virginia Commission. Virginia Power proposed a base rate increase of $822 million effective January 2026 with an incremental base rate increase of $345 million effective January 2027. Virginia Power submitted an update in August 2025 for a proposed base rate increase of $706 million effective January 2026 with an incremental base rate increase of $256 million effective January 2027 to reflect FERC’s approval of a price cap and floor for certain PJM capacity auctions. Alternatively, Virginia Power proposed to include purchased electric capacity expenses as a component of fuel expenses instead of base rates. If the move had been approved, Virginia Power’s proposed base rate increase would have been $458 million effective January 2026 with an incremental base rate increase of $173 million effective January 2027. The base rate proposals reflect necessary investments in assets and operating resources, including the impact of significant inflationary pressures on labor, materials and equipment since the 2023 Biennial Review, required to reliably serve a growing customer base. The proposed base rates reflect an ROE of 10.40% utilizing a common equity capitalization to total capitalization ratio of 52.10%. The ROE authorized by the Virginia Commission will be applied to Virginia Power’s riders prospectively and will also be utilized to measure base rate earnings for the 2027 Biennial Review.
In November 2025, the Virginia Commission approved a base rate increase of $566 million effective January 2026 with an incremental base rate increase of $210 million effective January 2027, but did not approve Virginia Power’s proposal to include purchased electric capacity expenses as a component of fuel expenses instead of base rates. The Virginia Commission also authorized an ROE of 9.80% for Virginia Power that will be applied to Virginia Power’s riders prospectively and that will also be utilized to measure base rate earnings for the 2027 Biennial Review.
Virginia Fuel Expenses
In March 2025, Virginia Power filed its annual fuel factor with the Virginia Commission to recover an estimated $2.6 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2025 and a projected $205 million under-recovered balance at June 30, 2025. Virginia Power proposed to include purchased electric capacity expenses as a component of fuel expenses, consistent with its filing in the 2025 Biennial Review. In addition to the projected energy-related fuel expense, Virginia Power projects $120 million of purchased electric capacity expense to be incurred with PJM from January 1, 2026 to June 30, 2026. Virginia Power’s proposed fuel rate, including purchased electric capacity expense, represents a fuel revenue increase of $860 million when applied to projected kilowatt-hour sales for the rate year beginning July 1, 2025. In May 2025, the Virginia Commission ordered that Virginia Power’s proposed total fuel factor rate, excluding the purchased electric capacity expense component, be placed into effect on an interim basis beginning July 1, 2025. In February 2026, the Virginia Commission approved a fuel factor rate, excluding a purchased electric capacity expense component, representing an increase in fuel revenue of $739 million when applied to projected kilowatt-hour sales for the rate year beginning July 1, 2025.
Virginia Power Equity Application
In April 2025, Virginia Power requested approval from the Virginia Commission to issue and sell to Dominion Energy up to $3.5 billion of authorized but unissued shares of its common stock, no par value, through the end of 2025 to maintain adequate credit metrics and efficient access to capital markets while funding necessary capital expenditures. In June 2025, the Virginia Commission approved the request.
Renewable Generation Projects
In October 2024, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct or acquire and operate two utility-scale projects totaling approximately 208 MW of solar generation as part of its efforts to meet the renewable generation development targets under the VCEA. The projects, as of October 2024, are expected to cost approximately $605 million in the aggregate, excluding financing costs, and be placed into service between 2026 and 2028. In April 2025, the Virginia Commission approved the petition.
In October 2025, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct or acquire and operate six utility-scale projects totaling approximately 845 MW of solar generation and two energy storage projects totaling approximately 155 MW as part of its efforts to meet the renewable generation development targets under the VCEA. The projects include Bedford and Pumpkinseed, which were constructed and have been operated as non-jurisdictional generation facilities. The remaining projects are expected to, as of October 2025, cost approximately $2.9 billion, excluding financing costs, and be placed into service between 2028 and 2030. This matter is pending.
GTSA Filing
In March 2025, Virginia Power filed a petition with the Virginia Commission for approval of Phase IIIB, covering 2024 through 2026, of its plan for electric distribution grid transformation projects as authorized by the GTSA. The plan requests approval for mainfeeder hardening work that Virginia Power undertook on three mainfeeders in 2024, proposes to continue the mainfeeder hardening project on 20 additional feeders in 2025 through 2026, proposes the continued implementation of a new outage management system previously approved by the Virginia Commission and requests approval of one new project, a remote sensing, image management and analytical program. For Phase IIIB, the total proposed capital investment is $278 million and the proposed operations and maintenance investment is $5 million. In September 2025, the Virginia Commission approved the petition.
Chesterfield Energy Reliability Center
In March 2025, Virginia Power filed a petition with the Virginia Commission for a CPCN to construct and operate the Chesterfield Energy Reliability Center. The project is expected to cost approximately $1.5 billion in the aggregate, excluding financing costs, have a generating capacity of 944 MW and be placed into service in 2029. In November 2025, the Virginia Commission approved the petition. In December 2025, the Virginia Commission issued an order suspending its previous order and granting reconsideration of the petition. In February 2026, the Virginia
Commission denied the reconsideration petition and affirmed its November 2025 approval. In February 2026, an appeal was filed with the Supreme Court of Virginia. This matter is pending.
Riders
Significant riders associated with various Virginia Power projects are as follows:
| Rider Name | Application Date | Approval Date | Rate Year Beginning | Total Revenue Requirement (millions)(1) | Increase (Decrease) Over Previous Year (millions) | |||||||||
| Rider CCR | April 2025 | December 2025 | January 2026 | 166 | 63 | |||||||||
| Rider CE(2) | October 2024 | April 2025 | May 2025 | 182 | 49 | |||||||||
| Rider CE(3) | October 2025 | Pending | May 2026 | 325 | 143 | |||||||||
| Rider DIST(4) | August 2024 | May 2025 | June 2025 | 267 | N/A | |||||||||
| Rider DIST(5) | August 2025 | Pending | June 2026 | 333 | 66 | |||||||||
| Rider GEN | June 2024 | February 2025 | April 2025 | 438 | N/A | |||||||||
| Rider GEN | June 2024 | February 2025 | April 2026 | 311 | (127 | ) | ||||||||
| Rider OSW(6) | November 2024 | August 2025 | September 2025 | 639 | 153 | |||||||||
| Rider OSW | October 2025 | Pending | September 2026 | 665 | 26 | |||||||||
| Rider RPS | December 2024 | August 2025 | September 2025 | 609 | 251 | |||||||||
| Rider RPS | December 2025 | Pending | September 2026 | 442 | (167 | ) | ||||||||
| Rider SNA(7) | October 2024 | July 2025 | September 2025 | 207 | 138 | |||||||||
| Rider SNA | October 2025 | Pending | September 2026 | 233 | 26 | |||||||||
| Rider T1(8) | May 2025 | August 2025 | September 2025 | 1,343 | 173 | |||||||||
| DSM Riders(9) | December 2024 | August 2025 | September 2025 | 96 | 10 | |||||||||
| DSM Riders(10) | December 2025 | Pending | September 2026 | 114 | 18 |
(1)
In addition, Virginia *Power has riders associated with other projects with an aggregate total annual revenue requirement of approximately $*54 *million at December 31, 2025 and pending applications associated with such riders, including the Chesterfield Energy Reliability Center described above, which if approved, would result in a net increase of approximately $*50 million.
(2)
Associated with two solar generation projects, two small-scale solar projects and 19 purchased power agreements in addition to previously approved Rider CE projects.
(3)
Associated with six *solar generation projects, including Bedford and Pumpkinseed (non-jurisdictional generation facilities with an aggregate recorded cost of $*251 million at September 30, 2025), two energy storage projects, three small-scale solar projects, 10 purchased power agreements and certain costs associated with expanding solar and storage facilities in addition to previously approved Rider CE projects.
(4)
*Rider DIST consists of $*100 *million in total revenue requirement for certain previously approved electric distribution grid transformation projects and $*167 million for previously approved phases and proposed phase eight of certain new underground distribution facilities.
(5)
*This application includes $*120 *million in total revenue requirement for certain previously approved electric distribution grid transformation projects, $*178 *million for previously approved phases and proposed phase nine of certain new underground distribution facilities and $*35 *million for certain previously approved rural broadband capacity projects, including $*25 million being collected under a rider associated with rural broadband capacity. If approved, the rider associated with the rural broadband capacity projects would be consolidated into Rider DIST and separate collection of rates under the rural broadband rider would cease effective June 1, 2026.
(6)
The Virginia Commission also approved the establishment of a decommissioning trust fund associated with the CVOW Commercial Project. As a result, the applicable amount included within the total revenue requirement for Rider OSW will be allocated for such purposes.
(7)
*The Virginia Commission also approved Virginia Power’s request for cost recovery of approximately $*1.7 billion through Rider SNA for the second phase of the nuclear life extension program which includes investments for calendar years 2025 through 2027.
(8)
*Consists of $*561 *million for the transmission component of Virginia Power’s base rates and $*782 million for Rider T1.
(9)
Associated with three redesigned energy efficiency programs and one new and two redesigned demand response programs with a $218 million cost cap, with the ability to exceed the cost cap by no more than 15%.
(10)
Associated with two redesigned energy efficiency programs and seven new demand response programs with a $221 million cost cap, with the ability to exceed the cost cap by no more than 15%. *Also in December 2025, Virginia Power filed a petition requesting Virginia Commission approval to conduct a pilot program to evaluate methods to optimize system demand through various technology applications and distributed energy resources, including the establishment of a VPP, as required by the Community Energy Act. In its petition, Virginia Power seeks to utilize certain programs previously approved by the Virginia Commission and incorporate newly proposed programs associated with the DSM Riders. The DSM Riders cost cap includes $*64 million associated with the proposed VPP pilot program. The Virginia Commission has consolidated the DSM Riders and VPP pilot program petitions. This matter is pending.
Combined Notes to Consolidated Financial Statements, Continued
Electric Transmission Projects
Significant Virginia Power electric transmission projects approved or applied for are as follows:
| Description and Location of Project | Application Date | Approval Date | Type of Line | Miles of Lines | Cost Estimate (millions)(1) | |||||||
| Construct new Aspen and Golden substations, transmission lines and related projects in Loudoun County, Virginia | March 2024 | February 2025(2) | 500- 230 kV | 10 | 705 | |||||||
| Construct new Apollo-Twin Creeks transmission lines, new substations and related projects in Loudoun County, Virginia | March 2024 | February 2025(2) | 230 kV | 2 | 285 | |||||||
| Rebuild and construct new Fentress-Yadkin transmission lines and related projects in the City of Chesapeake, Virginia | June 2024 | February 2025 | 500 kV | 14 | 205 | |||||||
| Partial rebuild, reconductor and construct new Network Takeoff transmission lines and related projects in the Counties of Fairfax and Loudoun, Virginia | July 2024 | March 2025 | 230 kV | 6 | 170 | |||||||
| Rebuild Aquia Harbor-Possum Point transmission lines and related projects in the Counties of Stafford and Prince William and the City of Fredericksburg, Virginia | August 2024 | March 2025 | 500- 230 kV | 32 | 210 | |||||||
| Partial rebuild, reconductor and construct new New Post transmission lines and related projects in the Counties of Caroline and Spotsylvania, Virginia | August 2024 | May 2025 | 230 kV | 38 | 120 | |||||||
| Construct new Centreport transmission line, substation and related projects in Stafford County, Virginia | September 2024 | June 2025 | 230 kV | 3 | 55 | |||||||
| Partial rebuild and construct new Meadowville transmission lines, substations and related projects in Chesterfield County, Virginia | October 2024 | June 2025 | 230 kV | 11 | 190 | |||||||
| Construct new Carmel Church and Ruther Glen transmission lines, substations and related projects in Caroline County, Virginia | December 2024 | September 2025 | 230 kV | 7 | 85 | |||||||
| Construct new Nebula transmission lines, substation and related projects in Mecklenburg County, Virginia | January 2025 | October 2025 | 230 kV | 15 | 130 | |||||||
| Construct new Culpeper Technology transmission lines, substations and related projects in the Counties of Culpeper, Orange and Fauquier and the Town of Culpeper, Virginia | February 2025 | Pending | 230 kV | 13 | 255 | |||||||
| Construct new Technology Boulevard transmission lines, substation and related projects in Henrico County, Virginia | March 2025 | February 2026 | 230 kV | 5 | 60 | |||||||
| Construct new Hornbaker transmission lines, switching station and related projects in Prince William County, Virginia | March 2025 | December 2025 | 230 kV | 5 | 95 | |||||||
| Construct new Golden-Mars transmission lines and related projects in Loudoun County, Virginia | March 2025 | Pending | 500- 230 kV | 11 | 525 | |||||||
| Construct Duval-Midlothian transmission lines, substation and related projects in Chesterfield County, Virginia | April 2025 | February 2026 | 230 kV | 7 | 125 | |||||||
| Rebuild Chickahominy-Elmont transmission line, new future transmission line and related projects in the Counties of Charles City, Henrico and Hanover, Virginia | May 2025 | January 2026 | 500- 230 kV | 28 | 190 | |||||||
| Rebuild Septa-Yadkin transmission line, partial rebuild of Suffolk-Thrasher transmission line and related projects in Isle of Wight County and the Cities of Chesapeake and Suffolk, Virginia | June 2025 | December 2025 | 500- 230 kV | 33 | 250 | |||||||
| Partial rebuild Chesterfield-Lanexa transmission lines in the Counties of Henrico, Charles City and New Kent, Virginia | September 2025 | Pending | 230- 115 kV | 58 | 150 | |||||||
| Rebuild Charlottesville-Dooms transmission lines in the Counties of Albemarle and Augusta and the City of Charlottesville, Virginia | October 2025 | Pending | 230 kV | 22 | 125 | |||||||
| Construct West Creek transmission line, substation and related projects in the County of Goochland, Virginia | January 2026 | Pending | 230 kV | 7 | 100 |
(1)
*Represents the cost estimate included in the application except as updated in the approval if applicable. In addition, Virginia Power had various other transmission projects approved during 2025 with aggregate cost estimates of approximately $*65 million.
(2)
The final order of the Virginia Commission was appealed to the Supreme Court of Virginia. In February 2026, the Supreme Court of Virginia affirmed the Virginia Commission’s final order.
In November 2013, the Virginia Commission issued an order granting Virginia Power a CPCN to construct approximately 7 miles of new overhead 500 kV transmission line from the existing Surry switching station in Surry County to a new Skiffes Creek switching station in James City County, and approximately 20 miles of new 230 kV transmission line in James City County, York County and the City of Newport News from the proposed new Skiffes Creek switching station to Virginia Power’s existing Whealton substation in the City of Hampton. In February 2019, the transmission line project was placed into service. In March 2019, the U.S. Court of Appeals for the D.C. Circuit issued an order vacating the permit from the U.S. Army Corps of Engineers issued in July 2017 and ordered the U.S. Army Corps of Engineers to do a full environmental impact study of the project. In April 2019, Virginia Power and the U.S. Army Corps of Engineers filed petitions for rehearing with the U.S. Court of Appeals for the D.C. Circuit, asking that the permit from the U.S. Army Corps of Engineers remain in effect while an environmental impact study is performed. In May 2019, the U.S. Court of Appeals for the D.C. Circuit denied the request for rehearing and ordered the U.S. District Court for the D.C. Circuit to consider and issue a ruling on whether the permit should be vacated during the U.S. Army Corps of Engineers’ preparation of an environmental impact statement. In November 2019, the U.S. District Court for the D.C. Circuit issued an order allowing the permit to remain in effect while an environmental impact statement is prepared. In November 2020, the U.S. Army Corps of Engineers issued a draft environmental impact statement noting there is no better alternative. This matter is pending.
Virginia Regulation – Key Development Affecting 2024
2023 Biennial Review
In February 2024, the Virginia Commission issued its order in the 2023 Biennial Review. In connection with the order, Virginia Power recorded a net benefit of $17 million ($12 million after-tax) in the first quarter of 2024 within impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment) for a regulatory asset for previously unrecovered severe weather event costs, which were amortized by the end of 2024.
North Carolina Regulation
Virginia Power Fuel Filing
In August 2025, Virginia Power submitted its annual filing to the North Carolina Commission to adjust the fuel component of its electric rates. In October 2025, Virginia Power subsequently updated its annual filing following a change in law which provides for recovery of purchased electric capacity expenses as a component of fuel. Virginia Power proposed a total $49 million increase to the fuel component of its electric rates. In January 2026, the North Carolina Commission approved a total $48 million increase to the fuel component of Virginia Power’s electric rates for the rate year beginning February 1, 2026.
South Carolina Regulation
Electric Base Rate Case
In January 2026, DESC filed its retail electric base rate case and schedules with the South Carolina Commission. DESC proposed a non-fuel, base rate increase of $331 million, partially offset by a net decrease in storm damage and DSM components of $9 million. If approved, the overall proposed rate increase of $322 million, or 12.7%, would be effective on and after the first billing cycle of July 2026. The base rate increase was proposed to recover the continued investment in assets and operating resources required to serve DESC’s rapidly expanding customer base and evolving customer needs, while maintaining the safety, reliability, resiliency and efficiency of its system, and to meet increasingly stringent reliability, security and environmental requirements. DESC presented an ROE of 4.78% based upon a fully-adjusted test period. The proposed rates would provide for an earned ROE of 10.50% compared to the currently authorized ROE of 9.94%. This matter is pending.
Cost of Fuel
DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February 2025, DESC filed with the South Carolina Commission a proposal to increase the total fuel cost component of retail electric rates. DESC’s proposed adjustment is designed to recover DESC’s current base fuel costs, including its existing under-collected balance, over the 12-month period beginning with the first billing cycle of May 2025. In addition, DESC proposed an increase to its variable environmental and avoided capacity cost component. The net effect is a proposed annual increase of $154 million. In March 2025, DESC and the South Carolina Office of Regulatory Staff filed a settlement agreement with the South Carolina Commission for approval to make certain adjustments to the February 2025 filing that would result in an inconsequential change to the proposed annual increase. In April 2025, the South Carolina Commission approved the settlement agreement, with rates effective with the first billing cycle of May 2025.
In February 2026, DESC filed with the South Carolina Commission a proposal to increase the total fuel cost component of retail electric rates. DESC’s proposed adjustment is designed to recover DESC’s current base fuel costs, including its existing under-collected balance, over the 12-month period beginning with the first billing cycle of May 2026. In addition, DESC proposed an update to its variable environmental and avoided capacity cost component. The net effect is a proposed annual increase of $36 million. This matter is pending.
Electric DSM Programs
DESC has approval for a DSM rider through which it recovers expenditures related to its electric DSM programs. In January 2025, DESC filed an application with the South Carolina Commission seeking approval to recover $46 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. DESC requested that rates be effective with the first billing cycle of May 2025. In April 2025, the South Carolina Commission approved the request, effective with the first billing cycle of May 2025.
In January 2026, DESC filed an application with the South Carolina Commission seeking approval to recover $54 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. DESC requested that rates be effective with the first billing cycle of May 2026. This matter is pending.
Canadys Station
In December 2025, DESC and Santee Cooper filed an application with the South Carolina Commission for approval of a CPCN to jointly construct and operate Canadys Station. Upon completion, DESC and Santee Cooper will each own a 50% undivided interest in the generating station and its electrical output. The application included an expected total cost of approximately $5 billion, excluding financing costs, with costs split equally between the joint owners for the proposed 2.2 GW facility. In addition, the application seeks approval for the construction of a new 230 kV switchyard and related transmission facilities which are expected to cost approximately $100 million, to be jointly owned by DESC and Santee Cooper, with costs split between the joint owners based on a formula reflecting shared use. If approved, Canadys Station and related facilities are expected to be placed into service in 2033. The estimated cost and project timelines are subject to refinement through the permitting process and the negotiation of contracts for major construction suppliers. This matter is pending.
Electric - Transmission Project
In December 2024, DESC filed an application with the South Carolina Commission requesting approval of a CPCN to construct and operate the Ritter-Yemassee Transmission Line #2, comprised of a 17-mile 230 kV transmission line and associated facilities in Colleton and Hampton Counties, South Carolina with an estimated total project cost of $55 million. In April 2025, the South Carolina Commission approved the application.
Natural Gas Rates
In June 2025, DESC filed with the South Carolina Commission its monitoring report for the 12-month period ended March 31, 2025 with a total revenue requirement of $596 million. This revenue requirement represents a $17 million base rate increase under the
Combined Notes to Consolidated Financial Statements, Continued
terms of the Natural Gas Rate Stabilization Act effective with the first billing cycle of November 2025. In September 2025, the South Carolina Commission approved a total revenue requirement of $594 million, representing a $15 million base rate increase after certain adjustments, effective with the first billing cycle of November 2025.
South Carolina Regulation - Key Development affecting 2024
Electric Base Rate Case
In the third quarter of 2024, Dominion Energy recorded a charge of $58 million ($44 million after tax) (reflected within the Corporate and Other segment), including $50 million to write down certain materials and supplies inventory presented within impairment of assets and other charges, in connection with the electric base rate case filed in March 2024 in South Carolina.
Note 14**. Asset Retirement Obligations**
AROs represent obligations that result from laws, statutes, contracts and regulations related to the eventual retirement of certain of the Companies’ long-lived assets. The Companies’ AROs are primarily associated with the decommissioning of their nuclear generation facilities, ash pond and landfill closures and CCR remediation.
The Companies have also identified, but not recognized, AROs related to the retirement of certain electric transmission and distribution assets located on property with easements, rights of way, franchises and lease agreements, Virginia Power’s hydroelectric generation facilities and the abatement of certain asbestos not expected to be disturbed in the Companies’ generation facilities. The Companies currently do not have sufficient information to estimate a reasonable range of expected retirement dates for any of these assets since the economic lives of these assets can be extended indefinitely through regular repair and maintenance and they currently have no plans to retire or dispose of any of these assets. As a result, a settlement date is not determinable for these assets and AROs for these assets will not be reflected in the Consolidated Financial Statements until sufficient information becomes available to determine a reasonable estimate of the fair value of the activities to be performed. The Companies continue to monitor operational and strategic developments to identify if sufficient information exists to reasonably estimate a retirement date for these assets.
The changes to AROs during 2024 and 2025 were as follows:
| (millions) | Dominion Energy | Virginia Power | |||||
| AROs at December 31, 2023 | $ | 6,075 | $ | 4,653 | |||
| Obligations incurred during the period(1) | 1,126 | 469 | |||||
| Obligations settled during the period | (347 | ) | (259 | ) | |||
| Revisions in estimated cash flows(2) | 300 | 342 | |||||
| Accretion | 272 | 192 | |||||
| AROs at December 31, 2024(3) | $ | 7,426 | $ | 5,397 | |||
| Obligations incurred during the period(4) | 252 | 195 | |||||
| Obligations settled during the period | **(**351 | ) | **(**307 | ) | |||
| Revisions in estimated cash flows(5) | **(**69 | ) | **(**32 | ) | |||
| Accretion | 329 | 227 | |||||
| AROs at December 31, 2025(3) | $ | 7,587 | $ | 5,480 |
(1)
Primarily reflects AROs related to CCR remediation as discussed below.
(2)
*Primarily reflects revisions for increased costs related to the completion of nuclear decommissioning cost studies for Millstone, Surry and North Anna inclusive of a charge of $*122 *million ($*89 million after-tax) within impairment of assets and other charges in Dominion Energy’s Consolidated Statements of Income (reflected in the Corporate and Other segment). In addition, there were downward revisions for CCR remediation costs at Dominion Energy and future ash pond and landfill closure costs of certain electric generation facilities at Virginia Power.
(3)
*Includes $*352 *million and $*383 million reported in other current liabilities for Dominion Energy at December 31, 2024 and 2025, respectively.
(4)
Primarily reflects obligations incurred during construction of the CVOW Commercial Project.
(5)
*Primarily reflects revisions for expected costs related to the completion of a nuclear decommissioning cost study for Summer resulting in a downward adjustment of $*37 million and for Virginia Power’s future ash pond and landfill closure costs discussed below.
Dominion Energy’s AROs at both December 31, 2025 and 2024, include $2.6 billion, with $1.5 billion and $1.4 billion recorded by Virginia Power at December 31, 2025 and 2024, respectively, related to the future decommissioning of their nuclear facilities. The Companies have established trusts dedicated to funding the future decommissioning activities. At December 31, 2025 and 2024, the aggregate fair value of Dominion Energy’s trusts, consisting primarily of private debt funds and equity securities, totaled $9.2 billion and $8.1 billion, respectively. At December 31, 2025 and 2024, the aggregate fair value of Virginia Power’s trusts, consisting primarily of private debt funds and equity securities, totaled $4.9 billion and $4.3 billion, respectively.
AROs at December 31, 2025 and 2024 also include $889 million, with $441 million recorded at Virginia Power, and $828 million, with $404 million recorded at Virginia Power, respectively, related to Dominion Energy’s CCR remediation activities. In May 2024, the EPA released a final rule to regulate inactive surface impoundments located at retired generating stations that contained CCR and liquids after October 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR. Dominion Energy believes that it may have inactive or closed units or areas that could be subject to the final rule at up to 19 different stations, including 12 at Virginia Power. In 2025, Virginia Power increased its ARO by $16 million to reflect an obligation incurred related to updated information concerning one facility with a corresponding increase recorded primarily to a regulatory asset for amounts recoverable through retail electric rates, including riders, for an electric generation station that has been retired. In 2024, Dominion Energy and Virginia Power recorded an increase to their AROs of $1.1 billion and $420 million, respectively, with a corresponding increase of $536 million and $234 million, respectively, to regulatory assets for amounts recoverable through retail electric rates, including riders, for electric generation stations that have been retired, $505 million and $152 million, respectively, to property, plant and equipment for amounts recoverable for electric generation stations that are currently in service and $34 million to other deferred charges and other assets for amounts associated with nonjurisdictional customers at Virginia Power. Subsequently in 2024, Dominion Energy recorded an adjustment to decrease the ARO and related property, plant and equipment by $215 million to reflect updated information concerning one facility. The actual AROs related to CCRs may vary substantially from the estimates used to record the obligation.
In addition, AROs at December 31, 2025 and 2024 include $3.1 billion and $3.2 billion, respectively, related to Virginia Power’s future ash pond and landfill closure costs. In 2025, Virginia Power revised its estimated cash flow projections associated with ash pond and landfill closure costs at certain of its
utility generation facilities attributable to changes in the scheduling of certain projects and as a result recorded a decrease to its AROs of $31 million with a corresponding decrease recorded primarily to regulatory assets for amounts recoverable through riders. In 2024, Virginia Power revised its estimated cash flow projections associated with ash pond and landfill closure costs at certain of its utility generation facilities attributable to changes in the scheduling of certain projects and as a result recorded a decrease to its AROs of $64 million with a corresponding decrease of $56 million to regulatory assets for amounts recoverable through riders and $8 million to other deferred charges and other assets for amounts associated with nonjurisdictional customers. Regulatory mechanisms, primarily associated with legislation enacted in Virginia in 2019, provide for recovery of costs to be incurred. See Note 12 for additional information.
AROs at December 31, 2025 and 2024 also include $220 million and $38 million, respectively, related to the decommissioning of the CVOW Commercial Project. As discussed in Note 13, a decommissioning trust fund, funded by the revenue requirement included in Rider OSW, has been approved to provide for the costs of future decommissioning activities.
Asset Retirement Obligations - Key Development Affecting 2023
In 2023, Dominion Energy reevaluated its estimated cash flows associated with Millstone Unit 1, concurrent with a revision in the timing of expected cash flows associated with the expected approval of a 20-year useful life extension of Millstone Units 2 and 3. This resulted in an increase to its AROs at Millstone Unit 1 and a related charge of $83 million ($60 million after-tax) within impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment).
Note 15**. Leases**
At December 31, 2025 and 2024, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:
| Dominion Energy | Virginia Power**(1)** | |||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Lease assets: | ||||||||||||||||
| Operating lease assets(2) | $ | 639 | $ | 588 | $ | 644 | $ | 410 | ||||||||
| Finance lease assets(3) | 541 | 267 | 239 | 146 | ||||||||||||
| Total lease assets | $ | 1,180 | $ | 855 | $ | 883 | $ | 556 | ||||||||
| Lease liabilities: | ||||||||||||||||
| Operating lease liabilities(4) | $ | 39 | $ | 36 | $ | 163 | $ | 22 | ||||||||
| Finance lease liabilities(5) | 119 | 62 | 45 | 35 | ||||||||||||
| Total lease liabilities - current | 158 | 98 | 208 | 57 | ||||||||||||
| Operating lease liabilities(6) | 697 | 644 | 500 | 399 | ||||||||||||
| Finance lease liabilities(7) | 436 | 214 | 194 | 110 | ||||||||||||
| Total lease liabilities - noncurrent | 1,133 | 858 | 694 | 509 | ||||||||||||
| Total lease liabilities | $ | 1,291 | $ | 956 | $ | 902 | $ | 566 |
(1)
See Note 25 for additional information about Virginia Power’s operating lease assets and liabilities with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel.
(2)
Balances are included in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets
(3)
Balances are included in property, plant and equipment *in the Companies’ Consolidated Balance Sheets, net of $*251 *million and $*199 *million for Dominion Energy, and $*105 *million and $*88 million for Virginia Power, at December 31, 2025 and 2024, respectively, of accumulated amortization.
(4)
Balances are in other current liabilities in the Companies’ Consolidated Balance Sheets.
(5)
Balances are included in securities due within one year in the Companies’ Consolidated Balance Sheets
(6)
Balances are included in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.
(7)
Balances are included in other long-term debt in the Companies’ Consolidated Balance Sheets.
In September 2025, Virginia Power recorded a right-of-use asset and offsetting lease obligation of $228 million upon commencement of an operating lease with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel. See Note 25 for additional information.
In addition to the amounts disclosed above, Dominion Energy’s Consolidated Balance Sheets at December 31, 2025 and 2024 includes property, plant and equipment of $374 million and $382 million, respectively, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor. There was $48 million and $38 million of accumulated depreciation related to these facilities recorded in Dominion Energy’s Consolidated Balance Sheets at December 31, 2025 and 2024, respectively.
For the years ended December 31, 2025, 2024 and 2023, total lease cost associated with the Companies’ leasing arrangements consisted of the following:
| Dominion Energy | Virginia Power**(1)** | |||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Finance lease cost: | ||||||||||||||||||||||||
| Amortization(2) | $ | 56 | $ | 54 | $ | 50 | $ | 28 | $ | 24 | $ | 24 | ||||||||||||
| Interest(3) | 10 | 14 | 13 | 5 | 5 | 4 | ||||||||||||||||||
| Operating lease cost(4) | 92 | 81 | 70 | 72 | 60 | 43 | ||||||||||||||||||
| Short-term lease cost(5) | 22 | 22 | 32 | 58 | 16 | 23 | ||||||||||||||||||
| Variable lease cost | 5 | 6 | 6 | 2 | 2 | 2 | ||||||||||||||||||
| Total lease cost | $ | 185 | $ | 177 | $ | 171 | $ | 165 | $ | 107 | $ | 96 |
(1)
See Note 25 for additional information about Virginia Power’s operating lease cost for an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel.
(2)
*Dominion Energy includes $*3 million for the year ended December 31, 2023, reflected in discontinued operations in its Consolidated Statements of Income.
(3)
*Dominion Energy includes $*1 million for the year ended December 31, 2023, reflected in discontinued operations in its Consolidated Statements of Income.
(4)
*Dominion Energy includes $*5 million for the year ended December 31, 2023, reflected in discontinued operations in its Consolidated Statements of Income.
(5)
*Dominion Energy includes $*2 million for the year ended December 31, 2023, reflected in discontinued operations in its Consolidated Statements of Income.
Combined Notes to Consolidated Financial Statements, Continued
For the years ended December 31, 2025, 2024 and 2023, 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, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Operating cash flows for finance leases | $ | 14 | $ | 14 | $ | 13 | $ | 5 | $ | 5 | $ | 4 | ||||||||||||
| Operating cash flows for operating leases | 117 | 106 | 105 | 125 | 74 | 64 | ||||||||||||||||||
| Financing cash flows for finance leases | 70 | 50 | 47 | 28 | 23 | 19 |
In addition to the amounts disclosed above, Dominion Energy’s Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023, include $18 million, $18 million and $21 million, respectively, of rental revenue, included in operating revenue and $10 million for each of the years ended December 31, 2025, 2024 and 2023 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 then 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, 2025 and 2024, 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, | 2025 | 2024 | 2025 | 2024 | ||||
| Weighted-average remaining lease term - finance leases | 7 years | 5 years | 11 years | 5 years | ||||
| Weighted-average remaining lease term - operating leases | 31 years | 31 years | 23 years | 32 years | ||||
| Weighted-average discount rate - finance leases | 6.19**%** | 5.61% | 6.95**%** | 6.71% | ||||
| Weighted-average discount rate - operating leases | 4.52**%** | 4.42% | 4.66**%** | 5.13% |
The Companies’ lease liabilities have the following maturities:
| Maturity of Lease Liabilities | Dominion Energy | Virginia Power | ||||||||||||||
| (millions) | Operating | Finance | Operating | Finance | ||||||||||||
| 2026 | $ | 48 | $ | 131 | $ | 66 | $ | 58 | ||||||||
| 2027 | 70 | 135 | 200 | 50 | ||||||||||||
| 2028 | 38 | 126 | 70 | 43 | ||||||||||||
| 2029 | 45 | 109 | 31 | 35 | ||||||||||||
| 2030 | 35 | 76 | 21 | 25 | ||||||||||||
| After 2030 | 1,116 | 201 | 727 | 200 | ||||||||||||
| Total undiscounted lease payments | 1,352 | 778 | 1,115 | 411 | ||||||||||||
| Present value adjustment | (616 | ) | (223 | ) | (452 | ) | (172 | ) | ||||||||
| Present value of lease liabilities | $ | 736 | $ | 555 | $ | 663 | $ | 239 |
Offshore Wind Vessel Leasing Arrangement
In December 2020, Dominion Energy signed an agreement (most recently amended in February 2026) 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 provided equity and obtained financing commitments from debt investors, totaling $715 million, which funded project costs. In September 2025, the vessel was delivered and the five-year lease term commenced.
Upon commencement, the lease for the offshore wind vessel was classified as a finance lease. 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. No end-of-term options were deemed reasonably certain of exercise at commencement date. Dominion Energy is considered the owner of the leased property for tax purposes, and as a result, is entitled to tax deductions for depreciation and interest expense. At commencement, Dominion Energy recorded a right-of-use asset and offsetting lease obligation of $214 million, representing the present value of consideration over the five-year term at the rate implicit in the lease.
Note 16**. Variable Interest Entities**
The primary beneficiary of a VIE is required to consolidate the VIE and to disclose certain information about its significant variable interests in the VIE. The primary beneficiary of a VIE is the entity that has both 1) the power to direct the activities that most significantly impact the entity’s economic performance and 2) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE.
Dominion Energy
At December 31, 2025, Dominion Energy owns a 53% membership interest in Atlantic Coast Pipeline. Dominion Energy concluded
that Atlantic Coast Pipeline is a VIE because it has insufficient equity to finance its activities without additional subordinated financial support. Dominion Energy has concluded that it is not the primary beneficiary of Atlantic Coast Pipeline as it does not have the power to direct the activities of Atlantic Coast Pipeline that most significantly impact its economic performance, as the power to direct is shared with Duke Energy. Dominion Energy is obligated to provide capital contributions based on its ownership percentage. Dominion Energy’s maximum exposure to loss is limited to any future investment. See Note 9 for additional details regarding the nature of this entity.
At December 31, 2025, Dominion Energy owns a 30% membership interest in Valley Link. Dominion Energy concluded that Valley Link is a VIE because it has insufficient equity to finance its activities without additional subordinated financial support. Dominion Energy has concluded that it is not the primary beneficiary of Valley Link as it does not have the power to direct the activities of Valley Link that most significantly impact its economic performance, as the power to direct is shared with AEP and FirstEnergy. Dominion Energy is obligated to provide capital contributions proportionate to its ownership percentage. Dominion Energy’s maximum exposure to loss is limited to its investment as well as any obligations under guarantees provided. See Note 23 for additional information.
Dominion Energy and Virginia Power
The Companies’ nuclear decommissioning trust funds and Dominion Energy’s rabbi trusts hold investments in limited partnerships or similar type entities, as discussed in Note 9. Dominion Energy and Virginia Power concluded that these partnership investments are VIEs due to the limited partners lacking the characteristics of a controlling financial interest. Dominion Energy and Virginia Power have concluded neither is the primary beneficiary as they do not have the power to direct the activities that most significantly impact these VIEs’ economic performance. Dominion Energy and Virginia Power are obligated to provide capital contributions to the partnerships as required by each partnership agreement based on their ownership percentages. Dominion Energy and Virginia Power’s maximum exposure to loss is limited to their current and future investments.
Virginia Power
Virginia Power purchased shared services from DES, an affiliated VIE, of $597 million, $494 million and $463 million for the years ended December 31, 2025, 2024 and 2023, respectively. Virginia Power’s Consolidated Balance Sheets included amounts due to DES of $46 million and $38 million at December 31, 2025 and 2024, respectively, recorded in payables to affiliates. Virginia Power determined that it is not the primary beneficiary of DES as it does not have power to direct the activities that most significantly impact its economic performance as well as the obligation to absorb losses and benefits which could be significant to it. DES provides accounting, legal, finance and certain administrative and technical services to all Dominion Energy subsidiaries, including Virginia Power. Virginia Power has no obligation to absorb more than its allocated share of DES costs.
As described in Note 18, Virginia Power formed VPFS in October 2023, a wholly-owned special purpose subsidiary which is considered to be a VIE, for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of senior secured deferred fuel cost bonds. The Companies’ Consolidated Balance Sheets included balances for VPFS as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| (millions) | ||||||||
| Assets | ||||||||
| Prepayments | $ | 1 | $ | — | ||||
| Regulatory assets-current | 125 | 124 | ||||||
| Other current assets(1) | 51 | 41 | ||||||
| Regulatory assets-noncurrent | 868 | 1,040 | ||||||
| Total assets | $ | 1,045 | $ | 1,205 | ||||
| Liabilities | ||||||||
| Securities due within one year | $ | 171 | $ | 163 | ||||
| Accrued interest, payroll and taxes | 9 | 10 | ||||||
| Securitization bonds | 883 | 1,054 | ||||||
| Total liabilities | $ | 1,063 | $ | 1,227 |
(1)
See Note 2 for additional information about restricted cash and equivalents at VPFS.
As described in Note 10, in October 2024 Virginia Power completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the sale of an interest in OSWP, which is considered to be a VIE. The Companies’ Consolidated Balance Sheets included balances for OSWP as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| (millions) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 149 | $ | 70 | ||||
| Customer receivables | — | — | ||||||
| Prepayments | — | 10 | ||||||
| Regulatory assets-current | 15 | 6 | ||||||
| Property, plant and equipment | 8,799 | 5,844 | ||||||
| Regulatory assets-noncurrent | 150 | 52 | ||||||
| Other deferred charges and other assets | 9 | — | ||||||
| Total assets | $ | 9,122 | $ | 5,982 | ||||
| Liabilities | ||||||||
| Accounts payable | $ | 2 | $ | — | ||||
| Accrued interest, payroll and taxes | 2 | — | ||||||
| Other current liabilities | 16 | — | ||||||
| Asset retirement obligations- noncurrent | 220 | 38 | ||||||
| Other deferred credits and other liabilities | — | — | ||||||
| Total liabilities | $ | 240 | $ | 38 |
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 capital
Combined Notes to Consolidated Financial Statements, Continued
projects, 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 primarily supported by its joint revolving credit facility. In April 2025, Dominion Energy amended its joint revolving credit facility to, among other things, increase the facility limit from $6.0 billion to $7.0 billion, increase the letters of credit support from $2.0 billion to $3.0 billion and extend the maturity date from June 2026 to April 2030. The key financial covenants in the facility are unchanged except for a technical clarification to the calculation of equity utilized in the total debt to total capital ratio.
Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility discussed above and its 364-day revolving credit agreement, were as follows:
| Facility Limit | Outstanding Commercial Paper(1) | Outstanding Letters of Credit | Facility Capacity Available | |||||||||||||
| (millions) | ||||||||||||||||
| At December 31, 2025 | ||||||||||||||||
| Joint revolving credit facility(2) | $ | 7,000 | $ | 2,035 | $ | 1 | $ | 4,964 | ||||||||
| 364-day revolving credit facility(3) | 1,000 | — | 1,000 | |||||||||||||
| Total | $ | 8,000 | $ | 2,035 | $ | 1 | $ | 5,964 | ||||||||
| At December 31, 2024 | ||||||||||||||||
| Joint revolving credit facility(2) | $ | 6,000 | $ | 2,061 | $ | 10 | $ | 3,929 | ||||||||
| Total | $ | 6,000 | $ | 2,061 | $ | 10 | $ | 3,929 |
(1) The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s joint revolving credit facility was 4.08*% and* 4.74*% at December 31,* 2025 and 2024*, respectively.*
(2)
*This credit facility matures in April 2030, with the potential to be extended by the borrowers to April 2032, 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 $*3.0 *billion of letters of credit, for working capital and other general corporate purposes. Through February 2026, Dominion Energy had $*14 million in letters of credit issued and outstanding under this facility.
(3)
This credit facility, entered into in April 2025 with certain lenders, matures in April 2026 and contains a maximum allowed total debt to total capital ratio consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility. This credit facility can be used to support bank borrowings and the issuance of commercial paper.
DESC’s short-term financing is supported through its access as a co-borrower to the joint revolving credit facility discussed above with the Companies. At December 31, 2025, the sub-limit for DESC was $900 million.
In March 2025, FERC granted DESC authority through March 2027 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $1.8 billion outstanding with maturity dates of one year or less. In addition, in March 2025, FERC granted GENCO authority through March 2027 to issue short-term indebtedness not to exceed $300 million outstanding with maturity dates of one year or less.
In addition to the credit facilities mentioned above, Dominion Energy’s credit facilities and agreements also consist of the following:
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, 2025 and 2024, $26 million and $48 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, 2025 and 2024, Dominion Energy had $102 million and $88 million in letters of credit issued and outstanding under this agreement, including $81 million and $77 million for Virginia Power, respectively.
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. At December 31, 2025, Dominion Energy had $150 million in letters of credit issued and outstanding under this agreement, including $100 million for Virginia Power. In January 2026, Dominion Energy amended this agreement to allow it to issue up to an expected combined $250 million in letters of credit, with $50 million available to Dominion Energy and $200 million available to Virginia Power. Through February 2026, Dominion Energy had $250 million in letters of credit issued and outstanding under this agreement, including $200 million for Virginia Power.
An agreement entered into with a financial institution in September 2025, subsequently amended in December 2025, which it expects to allow it to issue up to $500 million in letters of credit with $100 million available to Dominion Energy and $400 million available to Virginia Power. At December 31, 2025, Dominion Energy had $379 million in letters of credit issued and outstanding under this agreement, all of which was issued and outstanding for Virginia Power. Through February 2026, Dominion Energy had $358 million in letters of credit issued and outstanding under this agreement, including $351 million for Virginia Power.
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, 2025 and 2024, Dominion Energy’s Consolidated Balance Sheets include $422 million and $439 million, respectively, presented within short-term debt with weighted-average interest rates of 3.75% and 4.50%, respectively. The proceeds are used for general corporate purposes and to repay debt.
In February 2026, Dominion Energy entered into an approximately $1.3 billion 364-day term loan facility which bears
interest at a variable rate, contains a maximum allowed total debt to total capital ratio consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility and will mature in February 2027, with the proceeds to be used to repay existing debt and for other general corporate purposes. In February 2026, Dominion Energy borrowed an initial $500 million with the proceeds used for general corporate purposes. Subsequently in February 2026, Dominion Energy provided notice to borrow an additional $300 million under this facility.
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. 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. 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 $7.0 billion joint revolving credit facility, as most recently amended in April 2025.
Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy and DESC were as follows:
| Facility Limit | Outstanding Commercial Paper(1) | Outstanding Letters of Credit | ||||||||||
| (millions) | ||||||||||||
| At December 31, 2025 | ||||||||||||
| Joint revolving credit facility(2) | $ | 7,000 | $ | 675 | $ | — | ||||||
| At December 31, 2024 | ||||||||||||
| Joint revolving credit facility(2) | 6,000 | 950 | 10 |
(1)
The weighted-average interest rates of the outstanding commercial paper supported by the credit facility was 4.04*% and* 4.73*% at December 31,* 2025 and 2024*, 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, 2025, the sub-limit for Virginia Power was $*4.0 *billion. If Virginia Power has liquidity needs in excess of its current 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 April 2030, with the potential to be extended by the borrowers to April 2032. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $*3.0 billion (or the sub-limit, whichever is less) of letters of credit, for working capital and other general corporate purposes.
Combined Notes to Consolidated Financial Statements, Continued
In addition to the credit facility mentioned above, Virginia Power’s credit facilities and agreements also consist of the following:
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, 2025 and 2024, $281 million and $112 million, respectively, in letters of credit were issued and outstanding under this agreement. Through February 2026, Virginia Power had $157 million in letters of credit 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, 2025 and 2024, Virginia Power had $81 million and $77 million, out of Dominion Energy’s total $102 million and $88 million, respectively, 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. At December 31, 2025, Virginia Power had $100 million in letters of credit issued and outstanding under this agreement. In January 2026, Dominion Energy amended this agreement to allow it to issue up to an expected combined $250 million in letters of credit, with $50 million available to Dominion Energy and $200 million available to Virginia Power. Through February 2026, Virginia Power had $200 million in letters of credit issued and outstanding under this agreement.
An agreement entered into with a financial institution in September 2025, subsequently amended in December 2025, which it expects to allow it to issue up to $500 million in letters of credit with $100 million available to Dominion Energy and $400 million available to Virginia Power. At December 31, 2025, Virginia Power had $379 million in letters of credit issued and outstanding under this agreement. Through February 2026, Virginia Power had $351 million in letters of credit issued and outstanding under this agreement.
Agreements entered into with financial institutions in September 2025, which it expects to allow it to issue up to $2.0 billion in letters of credit. At December 31, 2025, Virginia Power had $1.0 billion in letters of credit issued and outstanding under these agreements. Through February 2026, Virginia Power had $1.4 billion in letters of credit issued and outstanding under these agreements.
Note 18**. Long-Term Debt**
| 2025 Weighted- average Coupon**(1)** | Dominion Energy | Virginia Power | |||||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| (millions, except percentages) | |||||||||||||||||||
| Sustainability Revolving Credit Agreement, variable rate, due 2028(2) | $ | — | $ | — | |||||||||||||||
| Unsecured Senior Notes: | |||||||||||||||||||
| 1.45% to 7.00%, due 2025 to 2052(3) | 4.36 | % | 12,526 | 11,176 | |||||||||||||||
| Junior Subordinated Notes: | |||||||||||||||||||
| Payable to Affiliated Trust, 8.40%, due 2031 | 8.40 | % | 10 | 10 | |||||||||||||||
| 6.00% to 7.00%, due 2054 to 2056 | 6.48 | % | 6,025 | 3,250 | |||||||||||||||
| Virginia Power: | |||||||||||||||||||
| Unsecured Senior Notes, 2.30% to 8.875%, due 2025 to 2055 | 4.53 | % | 21,385 | 18,785 | $ | 21,385 | $ | 18,785 | |||||||||||
| Tax-Exempt Financings, 3.125% to 3.80%, due 2032 to 2041(4) | 3.52 | % | 625 | 625 | 625 | 625 | |||||||||||||
| Senior Secured Deferred Fuel Cost Bonds, 4.877% and 5.088%, due 2029 and 2033 | 4.92 | % | 1,054 | 1,217 | 1,054 | 1,217 | |||||||||||||
| DESC: | |||||||||||||||||||
| First Mortgage Bonds, 2.30% to 6.625%, due 2028 to 2065 | 5.24 | % | 4,584 | 4,134 | |||||||||||||||
| Tax-Exempt Financings(5): | |||||||||||||||||||
| Variable rate due 2038 | 3.36 | % | 35 | 35 | |||||||||||||||
| 3.625% and 4.00%, due 2028 and 2033 | 3.90 | % | 54 | 54 | |||||||||||||||
| GENCO, variable rate due 2038 | 3.36 | % | 33 | 33 | |||||||||||||||
| Other | 3.56 | % | 1 | 1 | |||||||||||||||
| Total Principal | $ | 46,332 | $ | 39,320 | $ | 23,064 | $ | 20,627 | |||||||||||
| Securities due within one year(6) | **(**2,290 | ) | (1,662 | ) | **(**1,321 | ) | (513 | ) | |||||||||||
| Unamortized discount, premium and debt issuance costs, net | **(**403 | ) | (347 | ) | **(**209 | ) | (186 | ) | |||||||||||
| Finance leases | 436 | 214 | 194 | 110 | |||||||||||||||
| Total long-term debt | $ | 44,075 | $ | 37,525 | $ | 21,728 | $ | 20,038 |
(1)
Represents weighted-average coupon rates for debt outstanding at December 31, 2025*.*
(2)
*This $*1.0 *billion supplemental credit facility, entered in 2021, most recently amended in April 2025, offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. Proceeds of the supplemental credit facility also may be used for general corporate purposes, but such proceeds are not eligible for a reduced interest rate margin. In March 2023, Dominion Energy borrowed $*450 *million with the proceeds used for general corporate purposes. In April 2023, Dominion Energy repaid $*450 *million borrowed for general corporate purposes. In September 2023, Dominion Energy borrowed $*450 *million under this facility with the proceeds used for general corporate purposes. In October 2023, Dominion Energy repaid $*450 *million borrowed for general corporate purposes. In May 2024, Dominion Energy repaid $*450 million borrowed to support environmental sustainability and social investment initiatives. In April 2025, the facility was amended to, among other things, extend
*the maturity date from June 2025 to April 2028, increase the commitment from $*900 *million to $*1.0 *billion and update certain pricing terms. In February 2026, Dominion Energy borrowed $*500 million with the proceeds used to support environmental sustainability and social investment initiatives.
(3)
Includes debt assumed by Dominion Energy from the merger of its former CNG subsidiary.
(4)
These financings relate to certain pollution control equipment at Virginia Power’s generating facilities.
(5)
*Industrial revenue bonds totaling $*68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2026.
(6)
Dominion Energy and Virginia Power’s weighted-average rate for securities due within one year was 2.80*% and* 3.34*%, respectively, at December 31,* 2025*.*
Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2025 were as follows:
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | ||||||||||||||||||||||
| (millions, except percentages) | ||||||||||||||||||||||||||||
| Dominion Energy | ||||||||||||||||||||||||||||
| First Mortgage Bonds | $ | — | $ | — | $ | 53 | $ | — | $ | — | $ | 4,531 | $ | 4,584 | ||||||||||||||
| Unsecured Senior Notes | 2,120 | 1,783 | 2,195 | 500 | 2,300 | 25,014 | 33,912 | |||||||||||||||||||||
| Senior Secured Deferred Fuel Cost Bonds | 171 | 180 | 190 | 198 | 208 | 107 | 1,054 | |||||||||||||||||||||
| Tax-Exempt Financings | — | — | 39 | — | — | 708 | 747 | |||||||||||||||||||||
| Junior Subordinated Notes | — | — | — | — | — | 6,035 | 6,035 | |||||||||||||||||||||
| Total | $ | 2,291 | $ | 1,963 | $ | 2,477 | $ | 698 | $ | 2,508 | $ | 36,395 | $ | 46,332 | ||||||||||||||
| Weighted-average Coupon | 2.80 | % | 3.86 | % | 4.31 | % | 3.44 | % | 4.02 | % | 5.09 | % | ||||||||||||||||
| Virginia Power | ||||||||||||||||||||||||||||
| Unsecured Senior Notes | $ | 1,150 | $ | 1,350 | $ | 700 | $ | 500 | $ | — | $ | 17,685 | $ | 21,385 | ||||||||||||||
| Senior Secured Deferred Fuel Cost Bonds | 171 | 180 | 190 | 198 | 208 | 107 | 1,054 | |||||||||||||||||||||
| Tax-Exempt Financings | — | — | — | — | — | 625 | 625 | |||||||||||||||||||||
| Total | $ | 1,321 | $ | 1,530 | $ | 890 | $ | 698 | $ | 208 | $ | 18,417 | $ | 23,064 | ||||||||||||||
| Weighted-average Coupon | 3.34 | % | 3.77 | % | 4.03 | % | 3.44 | % | 4.88 | % | 4.73 | % |
The Companies’ credit facilities and debt agreements, both short-term and long-term, contain customary covenants and default provisions. At December 31, 2025, there were no events of default under these covenants.
Senior Secured Deferred Fuel Cost Bonds
In February 2024, VPFS issued $439 million of 5.088% senior secured deferred fuel cost bonds with a scheduled final payment date of May 2027 and a final maturity date of May 2029 and $843 million of 4.877% senior secured deferred fuel cost bonds with a scheduled final payment date of May 2031 and a final maturity date of May 2033. The full principal of each tranche of bonds is payable semi-annually according to a sinking fund schedule. Interest on each tranche of bonds accrues from the date of issuance and is payable semi-annually. Payment on the bonds commenced in November 2024. The scheduled final payment date for the applicable tranche is the date by which all interest and principal for such tranche is expected to be paid in full. The final maturity date of the applicable tranche is the legal maturity date for such tranche. The bonds are not subject to optional redemption prior to their stated maturity. VPFS as the issuer of the bonds is a bankruptcy remote, wholly-owned special purpose subsidiary of Virginia Power formed in October 2023 for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of deferred fuel cost bonds. VPFS is considered to be a VIE primarily because its equity capitalization is insufficient to support its operations. Virginia Power is considered the primary beneficiary and consolidates VPFS as it has the power to direct the most significant activities of VPFS, including performing servicing activities such as billing and collecting the deferred fuel cost charges. Pursuant to the financing order issued by the Virginia Commission in November 2023, Virginia Power sold to VPFS its right to receive revenues from the non-bypassable deferred fuel cost charges from Virginia Power’s retail customers in Virginia, except for certain exempt customers, as deferred fuel cost property. The securitization bondholders have recourse solely with respect to the deferred fuel cost property owned by VPFS and no recourse to any other assets of Dominion Energy or Virginia Power. Any deferred fuel cost charges collected by Virginia Power to pay for bond servicing and other qualified costs are deferred fuel cost property solely owned by VPFS. Any deferred fuel cost charges collected by Virginia Power are remitted to a trustee and are not available to other creditors of Virginia Power or Dominion Energy.
Junior Subordinated Notes
In October 2014, Dominion Energy issued $685 million of October 2014 hybrids that bore interest at 5.75% per year until October 1, 2024. In October 2024, Dominion Energy redeemed all $685 million in outstanding principal amount at par plus accrued interest including interest accrued at a floating rate effective October 2024. The notes would have otherwise matured in 2054. Dominion Energy recorded a charge of $7 million ($5 million after-tax) within interest expense in its Consolidated Statements of Income in connection with this early redemption.
In May 2024, Dominion Energy issued $2.0 billion of junior subordinated notes, consisting of $1.0 billion of 2024 Series A JSNs and $1.0 billion of 2024 Series B JSNs that mature in 2055 and 2054, respectively. The 2024 Series A JSNs will bear interest at 6.875% until February 1, 2030. The interest rate will reset every five years beginning on February 1, 2030, to equal the then-current five-year U.S. Treasury rate plus a spread of 2.386%, provided that the interest rate will not reset below 6.875%. The 2024 Series B JSNs will bear interest at 7.0% until June 1, 2034. The interest rate will reset every five years beginning on June 1, 2034, to equal the then-current five-year U.S. Treasury rate plus a spread of 2.511%, provided that the interest rate will not reset below 7.0%. Dominion Energy may defer interest payments on the 2024 Series A JSNs or 2024 Series B JSNs on one or more occasions for up to 10
Combined Notes to Consolidated Financial Statements, Continued
consecutive years. If interest payments on the 2024 Series A JSNs and the 2024 Series B JSNs are deferred, Dominion Energy may not, subject to certain limited exceptions, declare or pay any dividends or other distributions on, or redeem, repurchase or otherwise acquire any of its capital stock during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities or make any payments under any guarantee of debt that, in each case, is equal or junior in right of payment to the 2024 Series A JSNs and the 2024 Series B JSNs. Dominion Energy used the proceeds from this issuance for general corporate purposes including the repayment of short-term debt, the repayment of amounts outstanding under the Sustainability Revolving Credit Agreement as discussed above and the repurchase of Series B Preferred Stock as discussed in Note 19.
In November 2024, Dominion Energy issued $1.25 billion of 2024 Series C JSNs that mature in 2055. The 2024 Series C JSNs will bear interest at 6.625% until May 15, 2035. The interest rate will reset every five years beginning on May 15, 2035, to equal the then-current-five-year U.S. Treasury rate plus a spread of 2.207%. Dominion Energy may defer interest payments on the 2024 Series C JSNs on one or more occasions for up to 10 consecutive years. If interest payments on the 2024 Series C JSNs are deferred, Dominion Energy may not, subject to certain limited exceptions, declare or pay any dividends or other distributions on, or redeem, repurchase or otherwise acquire any of its capital stock during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities or make any payments under any guarantee of debt that, in each case, is equal or junior in right of payment to the 2024 Series C JSNs. Dominion Energy used the proceeds from the issuance for general corporate purposes and to repay short-term debt.
In August 2025, Dominion Energy issued $1.5 billion of junior subordinated notes, consisting of $825 million of 2025 Series A JSNs and $700 million of 2025 Series B JSNs that both mature in 2056. In October 2025, Dominion Energy issued an additional $1.3 billion of junior subordinated notes, consisting of $625 million of additional 2025 Series A JSNs and $625 million of additional 2025 Series B JSNs. The 2025 Series A JSNs will bear interest at 6.0% until February 15, 2031. The interest rate will reset every five years beginning on February 15, 2031, to equal the then-current five-year U.S. Treasury rate plus a spread of 2.262%, provided that the interest rate will not reset below 6.0%. The 2025 Series B JSNs will bear interest at 6.20% until February 15, 2036. The interest rate will reset every five years beginning on February 15, 2036, to equal the then-current five-year U.S. Treasury rate plus a spread of 2.006%, provided that the interest rate will not reset below 6.20%. Dominion Energy may defer interest payments on the 2025 Series A JSNs and/or 2025 Series B JSNs on one or more occasions for up to 10 consecutive years. If interest payments on the 2025 Series A JSNs or the 2025 Series B JSNs are deferred, Dominion Energy may not, subject to certain limited exceptions, declare or pay any dividends or other distributions on, or redeem, repurchase or otherwise acquire any of its capital stock during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities or make any payments under any guarantee of debt that, in each case, is equal or junior in right of payment to the 2025 Series A JSNs and the 2025 Series B JSNs. Dominion Energy used the proceeds from the issuance for general corporate purposes and to repay short-term debt.
Derivative Restructuring
In June 2020, Dominion Energy amended a portfolio of interest rate swaps with a notional value of $2.0 billion, extending the mandatory termination dates from 2020 and 2021 to December 2024. As a result of this noncash financing activity with an embedded interest rate swap, Dominion Energy recorded $326 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 1.19%, with an embedded interest rate derivative that had a fair value of zero at inception. In 2021 and 2022, Dominion Energy settled certain of the outstanding interest rate swaps which would have otherwise matured in December 2024. In December 2024, Dominion Energy settled the remaining $144 million of outstanding interest rate swaps.
In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900 million, extending the mandatory termination dates from 2020 to December 2023. As a result of this noncash financing activity with an embedded interest rate swap, Virginia Power recorded $443 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 0.34%, with an embedded interest rate derivative that had a fair value of zero at inception. The interest rate swaps were in a hedge relationship prior to the transaction. Virginia Power de-designated the hedge relationships prior to the transaction and then designated the new interest rate swap in a hedge relationship after the transaction. In March 2023, Virginia Power settled the remaining $448 million of outstanding interest rate swaps which would have otherwise matured in December 2023.
Eagle Solar
In February 2024, Eagle Solar redeemed the remaining principal outstanding of $279 million of its 4.82% senior secured notes. The debt, which otherwise would have matured in 2042, was nonrecourse to Dominion Energy and was secured by Eagle Solar's interest in certain solar facilities. Dominion Energy recognized a charge of $10 million during the year ended December 31, 2024 within interest expense in its Consolidated Statements of Income in connection with the early redemption of these notes.
Tax-Exempt Financing
In October 2024, Dominion Energy redeemed all $27 million in outstanding principal amount of its 3.80% Peninsula Ports Authority of Virginia Coal Terminal Revenue Refunding Bonds at par plus accrued interest. The bonds would have otherwise matured in 2033.
Note 19**. Preferred Stock**
Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At both December 31, 2025 and 2024, Dominion Energy had issued and outstanding 1.0 million shares of the Series C Preferred Stock.
DESC is authorized to issue up to 20 million shares of preferred stock. At both December 31, 2025 and 2024, DESC had issued and outstanding 1,000 shares of preferred stock, all of which were held by SCANA and are eliminated in consolidation.
Virginia Power is authorized to issue up to 10 million shares of preferred stock, $100 liquidation preference; however, none were issued and outstanding at December 31, 2025 or 2024.
Series B Preferred Stock
In December 2019, Dominion Energy issued 800,000 shares of Series B Preferred Stock for $791 million, net of $9 million of issuance costs. The preferred stock had a liquidation preference of $1,000 per share and paid a 4.65% dividend per share on the liquidation preference. Dividends were paid cumulatively on a semi-annual basis, commencing June 15, 2020. The dividend rate for the Series B Preferred Stock was scheduled to reset every five years beginning on December 15, 2024 to equal the then-current five-year U.S. Treasury rate plus a spread of 2.993%.
Dominion Energy was permitted to, at its option, redeem the Series B Preferred Stock in whole or in part on December 15, 2024 or on any subsequent fifth anniversary of such date at a price equal to $1,000 per share plus any accumulated and unpaid dividends. Dominion Energy was also permitted to, at its option, redeem the Series B Preferred Stock in whole but not in part at a price equal to $1,020 per share plus any accumulated and unpaid dividends at any time within a certain period of time following any change in the criteria ratings agencies use to assign equity credit to securities such as the Series B Preferred Stock that had certain adverse effects on the equity credit actually received by the Series B Preferred Stock.
In June 2024, Dominion Energy completed a tender offer repurchasing 0.4 million shares of Series B Preferred Stock and in December 2024 redeemed the remaining 0.4 million shares outstanding. Dominion Energy recorded dividends of $24 million ($42.86 per share) for the year ended December 31, 2024, excluding deemed dividends of $10 million representing deferred issuance costs, legal and bank fees and excise tax associated with the repurchase and redemption, and $37 million ($46.50 per share) for the year ended December 31, 2023.
Series C Preferred Stock
In December 2021, Dominion Energy issued 750,000 shares of Series C Preferred Stock for $742 million, net of $8 million of issuance costs. Also in December 2021, Dominion Energy issued 250,000 shares of Series C Preferred Stock valued at $250 million to the qualified benefit pension plans. The preferred stock has a liquidation preference of $1,000 per share and currently pays a 4.35% dividend per share on the liquidation preference. Dividends are paid cumulatively on a semi-annual basis, commencing April 15, 2022. Dominion Energy recorded dividends of $44 million ($43.50 per share) for each of the years ended December 31, 2025, 2024 and 2023. The dividend rate for the Series C Preferred Stock will be reset every five years beginning on April 15, 2027 to equal the then-current five-year U.S. Treasury rate plus a spread of 3.195%. Unless all accumulated and unpaid dividends on the Series C Preferred Stock have been declared and paid, Dominion Energy may not make any distributions on any of its capital stock ranking equal or junior to the Series C Preferred Stock as to dividends or upon liquidation, including through dividends, redemptions, repurchases or otherwise.
Dominion Energy may, at its option, redeem the Series C Preferred Stock in whole or in part anytime from and including January 15, 2027 through and including April 15, 2027 or during any subsequent fifth anniversary of such period at a price equal to $1,000 per share plus any accumulated and unpaid dividends. Dominion Energy may also, at its option, redeem the Series C Preferred Stock in whole but not in part at a price equal to $1,020 per share plus any accumulated and unpaid dividends at any time within a certain period of time following any change in the criteria ratings agencies use to assign equity credit to securities such as the Series C Preferred Stock that has certain adverse effects on the equity credit actually received by the Series C Preferred Stock.
Holders of the Series C Preferred Stock have no voting rights except in the limited circumstances provided for in the terms of the Series C Preferred Stock or as otherwise required by applicable law. The Series C Preferred Stock is not subject to any sinking fund or other obligation of ours to redeem, repurchase or retire the Series C Preferred Stock. The preferred stock contains no conversion rights.
Note 20**. Equity**
Common Stock
Dominion Energy
During 2025, 2024 and 2023, Dominion Energy recorded, net of fees and commissions, $1.5 billion, $732 million and $94 million from the issuance of approximately 27 million, 14 million and 2 million shares of common stock, respectively, as described below.
Dominion Energy Direct**®** and Employee Savings Plans
Dominion Energy maintains Dominion Energy Direct® and a number of employee savings plans through which contributions may be invested in Dominion Energy’s common stock. These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In January 2021, Dominion Energy began issuing new shares of common stock for these direct stock purchase plans. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans, and in March 2024, began issuing new shares of common stock. During 2025, 2024 and 2023, Dominion Energy issued 2.5 million, 2.7 million and 1.7 million, respectively, of such shares and received proceeds of $139 million, $138 million and $94 million, respectively.
At-the-Market Programs
May 2024 At-the-Market Program
In May 2024, Dominion Energy entered into sales agency agreements to effect sales under an at-the-market program. Under the sales agency agreements, Dominion Energy may, from time to time, offer and sell shares of its common stock through the sales agents or enter into one or more forward sale agreements with respect to shares of its common stock. Sales by Dominion Energy through the sales agents or by forward sellers pursuant to a forward sale agreement cannot exceed $1.8 billion in the aggregate. Except in certain circumstances, Dominion Energy can elect physical, cash or net settlement of the forward sale agreements. Through August 2024, Dominion Energy entered into forward sale agreements for approximately 11.4 million shares of its common stock at a weighted-average initial forward price of $53.23 per share. In
Combined Notes to Consolidated Financial Statements, Continued
December 2024, Dominion Energy provided notice to elect physical settlement of the forward sale agreements and in December 2024 settled the agreements at a weighted-average final forward price of $52.20 per share and received total proceeds of $594 million.
From September through December 2024, Dominion Energy entered into forward sale agreements for approximately 9.7 million shares of its common stock at a weighted-average initial forward price of $57.78 per share. During the first quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 8.8 million shares of its common stock at a weighted-average initial forward price of $55.34 per share. In December 2025, Dominion Energy provided notice to elect physical settlement of the forward sale agreements and in December 2025 settled the agreements at a weighted-average final forward price of $55.26 per share and received total proceeds of $1.0 billion.
During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 2.4 million shares of its common stock expected to be settled by the fourth quarter of 2027, at a weighted-average initial forward price of $59.91 per share.
February 2025 At-the-Market Program
In February 2025, Dominion Energy entered into sales agency agreements to effect sales under a new at-the-market program. Under the sales agency agreements, Dominion Energy may, from time to time, offer and sell shares of its common stock through the sales agents or enter into one or more forward sale agreements with respect to shares of its common stock. Sales by Dominion Energy through the sales agents or by forward sellers pursuant to the forward sale agreements could not initially exceed $1.2 billion in the aggregate, with Dominion Energy having the ability from time to time to increase such amount at its option. Except in certain circumstances, Dominion Energy can elect physical, cash or net settlement of the forward sale agreements. During the second quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 11.0 million shares of its common stock expected to be settled in the fourth quarter of 2026 at a weighted-average initial forward price of $55.83 per share.
During the third quarter of 2025, Dominion Energy entered into forward sale agreements for approximately 9.6 million shares of its common stock expected to be settled by the fourth quarter of 2027 at a weighted-average initial forward price of $61.11 per share. In December 2025, Dominion Energy provided notice to elect physical settlement of approximately 5.4 million shares under these forward sales agreements, and in December 2025 settled the agreements at a weighted-average final forward price of $60.44 per share and received total proceeds of $325 million.
In October 2025, Dominion Energy increased the maximum authorized amount of capacity available under this at-the-market program by $1.8 billion.
Repurchase of Common Stock
Dominion Energy did not repurchase any shares in 2025, 2024 or 2023, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which do not count against its stock repurchase authorization.
In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock, with $0.9 billion available at December 31, 2025. This repurchase program does not include a specific timetable or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors.
Virginia Power
In 2025, Virginia Power issued 49,636 shares of its common stock to Dominion Energy for $3.5 billion. The proceeds were utilized to reduce the aggregate amount outstanding under its intercompany credit facility with Dominion Energy. Virginia Power issued the shares pursuant to a Virginia Commission order authorizing the issuance of up to $3.5 billion of common stock through the end of 2025 in order to maintain adequate credit metrics and efficient access to capital markets while funding necessary capital expenditures, as discussed in Note 13.
Virginia Power did not issue any shares of its common stock to Dominion Energy in 2024.
In the fourth quarter of 2023, Virginia Power issued 49,522 shares of its common stock to Dominion Energy for $3.25 billion with the proceeds utilized to repay substantially all of the outstanding borrowings under Virginia Power’s intercompany credit facility with Dominion Energy. Virginia Power issued the shares pursuant to a Virginia Commission order authorizing the issuance of up to $3.25 billion of common stock to Dominion Energy through the end of 2023 as part of its reasonable efforts to maintain a common equity capitalization to total capitalization ratio of 52.10% through December 2024 in accordance with legislation enacted in Virginia in April 2023 as discussed in Note 13.
Accumulated Other Comprehensive Income (Loss)
Dominion Energy
The following table presents Dominion Energy’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:
| Total Derivative- Hedging Activities(1) | Investment Securities | Pension and other postretirement benefit costs(2) | Total | |||||||||||||
| (millions) | ||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||
| Beginning balance | $ | **(**229 | ) | $ | **(**19 | ) | $ | 38 | $ | **(**210 | ) | |||||
| Beginning balance, tax | 58 | 9 | **(**9 | ) | 58 | |||||||||||
| Beginning balance, net of tax | **(**171 | ) | **(**10 | ) | 29 | **(**152 | ) | |||||||||
| Other comprehensive income before reclassifications: gains (losses) | 5 | 15 | — | 20 | ||||||||||||
| Amounts reclassified from AOCI (gains) losses: | ||||||||||||||||
| Interest and related charges | 39 | 39 | ||||||||||||||
| Other income (expense) | **(**7 | ) | **(**12 | ) | **(**19 | ) | ||||||||||
| Total | 39 | **(**7 | ) | **(**12 | ) | 20 | ||||||||||
| Income tax expense (benefit) | **(**10 | ) | 2 | 2 | **(**6 | ) | ||||||||||
| Total, net of tax | 29 | **(**5 | ) | **(**10 | ) | 14 | ||||||||||
| Net current period other comprehensive income (loss) | 34 | 10 | **(**10 | ) | 34 | |||||||||||
| Ending balance, net of tax | **(**137 | ) | — | 19 | **(**118 | ) | ||||||||||
| Ending balance, tax | 46 | — | **(**7 | ) | 39 | |||||||||||
| Ending balance | $ | **(**183 | ) | $ | — | $ | 26 | $ | **(**157 | ) | ||||||
| Year Ended December 31, 2024 | ||||||||||||||||
| Beginning balance | $ | (289 | ) | $ | 2 | $ | 57 | $ | (230 | ) | ||||||
| Beginning balance, tax | 73 | (1 | ) | (14 | ) | 58 | ||||||||||
| Beginning balance, net of tax | (216 | ) | 1 | 43 | (172 | ) | ||||||||||
| Other comprehensive income before reclassifications: gains (losses) | 13 | (19 | ) | (2 | ) | (8 | ) | |||||||||
| Amounts reclassified from AOCI (gains) losses: | ||||||||||||||||
| Interest and related charges | 43 | 43 | ||||||||||||||
| Other income (expense) | — | 11 | (16 | ) | (5 | ) | ||||||||||
| Total | 43 | 11 | (16 | ) | 38 | |||||||||||
| Income tax expense (benefit) | (11 | ) | (3 | ) | 4 | (10 | ) | |||||||||
| Total, net of tax | 32 | 8 | (12 | ) | 28 | |||||||||||
| Net current period other comprehensive income (loss) | 45 | (11 | ) | (14 | ) | 20 | ||||||||||
| Ending balance, net of tax | (171 | ) | (10 | ) | 29 | (152 | ) | |||||||||
| Ending balance, tax | 58 | 9 | (9 | ) | 58 | |||||||||||
| Ending balance | $ | (229 | ) | $ | (19 | ) | $ | 38 | $ | (210 | ) |
(1)
Comprised entirely of interest rate derivative hedging activities.
(2)
Comprised entirely of prior service cost. See Note 22 for additional information.
Combined Notes to Consolidated Financial Statements, Continued
Virginia Power
The following table presents Virginia Power’s changes in AOCI (net of tax) and reclassification out of AOCI by component:
| Total Derivative- Hedging Activities(1) | Investment Securities | Total | ||||||||||
| (millions) | ||||||||||||
| Year Ended December 31, 2025 | ||||||||||||
| Beginning balance | $ | 38 | $ | **(**1 | ) | $ | 37 | |||||
| Beginning balance, tax | **(**10 | ) | 1 | **(**9 | ) | |||||||
| Beginning balance, net of tax | 28 | — | 28 | |||||||||
| Other comprehensive income before reclassifications: gains (losses) | 5 | — | 5 | |||||||||
| Amounts reclassified from AOCI (gains) losses: | ||||||||||||
| Interest and related charges | **(**1 | ) | **(**1 | ) | ||||||||
| Other income (expense) | 1 | 1 | ||||||||||
| Total | **(**1 | ) | 1 | — | ||||||||
| Income tax expense (benefit) | — | **(**1 | ) | **(**1 | ) | |||||||
| Total, net of tax | **(**1 | ) | — | **(**1 | ) | |||||||
| Net current period other comprehensive income (loss) | 4 | — | 4 | |||||||||
| Ending balance, net of tax | 32 | — | 32 | |||||||||
| Ending balance, tax | **(**11 | ) | — | **(**11 | ) | |||||||
| Ending balance | 43 | — | 43 | |||||||||
| Year Ended December 31, 2024 | ||||||||||||
| Beginning balance | $ | 20 | $ | 1 | $ | 21 | ||||||
| Beginning balance, tax | (5 | ) | 1 | (4 | ) | |||||||
| Beginning balance, net of tax | 15 | 2 | 17 | |||||||||
| Other comprehensive income before reclassifications: gains (losses) | 13 | (5 | ) | 8 | ||||||||
| Amounts reclassified from AOCI (gains) losses: | ||||||||||||
| Other income (expense) | — | 4 | 4 | |||||||||
| Total | — | 4 | 4 | |||||||||
| Income tax expense (benefit) | — | (1 | ) | (1 | ) | |||||||
| Total, net of tax | — | 3 | 3 | |||||||||
| Net current period other comprehensive income (loss) | 13 | (2 | ) | 11 | ||||||||
| Ending balance, net of tax | 28 | — | 28 | |||||||||
| Ending balance, tax | (10 | ) | 1 | (9 | ) | |||||||
| Ending balance | $ | 38 | $ | (1 | ) | $ | 37 |
(1)
Comprised entirely of interest rate derivative hedging activities.
Stock-Based Awards
The 2024 Incentive Compensation Plan permits stock-based awards that include restricted stock, performance grants, goal-based stock, stock options and stock appreciation rights. The Non-Employee Directors Compensation Plan permits grants of restricted stock and stock options. Under provisions of these plans, employees and non-employee directors may be granted options to purchase common stock at a price not less than its fair market value at the date of grant with a maximum term of eight years. Option terms are set at the discretion of the Compensation and Talent Development Committee of the Board of Directors or the Board of Directors itself, as provided under each plan. No options are outstanding under either plan. At December 31, 2025, approximately 26 million shares were available for future grants under these plans.
In 2023, goal-based stock awards were granted in lieu of cash-based performance grants to certain officers who have not achieved a certain targeted level of share ownership prior to 2024. Beginning in 2024, officers were granted performance share awards settling in shares or cash or, for officers who have not achieved a certain targeted level of share ownership at the time of grant, settling in shares. At both December 31, 2025 and 2024, unrecognized compensation cost related to these awards was inconsequential.
Dominion Energy measures and recognizes compensation expense relating to share-based payment transactions over the vesting period based on the fair value of the equity or liability instruments issued. Dominion Energy’s results for the years ended December 31, 2025, 2024 and 2023 include $46 million, $53 million and $44 million, respectively, of compensation costs and $10 million, $12 million and $10 million, respectively, of income tax benefits related to Dominion Energy’s stock-based compensation arrangements. Stock-based compensation cost is reported in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income. Excess Tax Benefits are classified as a financing cash flow.
Restricted Stock
Restricted stock grants are made to officers under Dominion Energy’s LTIP and may also be granted to certain key non-officer employees. The fair value of Dominion Energy’s restricted stock awards is equal to the closing price of Dominion Energy’s stock on the date of grant. New shares are issued for restricted stock awards on the date of grant and generally vest over a three-year service period.
The following table provides a summary of restricted stock activity for the years ended December 31, 2025, 2024 and 2023:
| Shares (millions) | Weighted-average Grant Date Fair Value | |||||||
| Nonvested at December 31, 2022 | 1.4 | $ | 75.56 | |||||
| Granted | 1.0 | 48.99 | ||||||
| Vested | (0.4 | ) | 79.89 | |||||
| Cancelled and forfeited | (0.1 | ) | 53.36 | |||||
| Nonvested at December 31, 2023 | 1.9 | $ | 61.34 | |||||
| Granted | 0.7 | 55.58 | ||||||
| Vested | (0.5 | ) | 71.05 | |||||
| Cancelled and forfeited | (0.2 | ) | 43.13 | |||||
| Nonvested at December 31, 2024 | 1.9 | $ | 57.10 | |||||
| Granted | 0.5 | 59.19 | ||||||
| Vested | **(**0.4 | ) | 73.43 | |||||
| Cancelled and forfeited | **(**0.1 | ) | 58.03 | |||||
| Nonvested at December 31, 2025 | 1.9 | $ | 53.94 |
At December 31, 2025, unrecognized compensation cost related to nonvested restricted stock awards totaled $61 million and is expected to be recognized over a weighted-average period of 1.9 years. The fair value of restricted stock awards that vested was $27 million, $25 million and $20 million in 2025, 2024 and 2023, respectively. Employees may elect to have shares of restricted stock withheld upon vesting to satisfy tax withholding obligations. The number of shares withheld will vary for each employee depending on the vesting date fair market value of Dominion Energy stock and the applicable federal, state and local tax withholding rates.
Cash-Based Performance Grants
Prior to 2024, cash-based performance grants were issued to Dominion Energy’s officers under Dominion Energy’s LTIP. The actual payout of cash-based performance grants will vary between zero and 200% of the targeted amount based on the level of performance metrics achieved.
In February 2022, a cash-based performance grant was made to officers. Payout of the performance grant occurred in January 2025 based on the achievement of three performance metrics during 2022, 2023 and 2024: TSR relative to that of companies that are members of Dominion Energy’s compensation peer group, Cumulative Operating EPS and Non-Carbon Emitting Generation Capacity Performance. There was an additional opportunity to earn a portion of the award based on Dominion Energy’s relative price-earnings ratio performance. The total of the payout under the grant was $5 million, all of which was accrued at December 31, 2024.
In February 2023, a cash-based performance grant was made to officers. Payout of the performance grant occurred in January 2026 based on the achievement of three performance metrics during 2023, 2024 and 2025: TSR relative to that of companies that are members of Dominion Energy’s compensation peer group over a 3-year and a 2-year period and Non-Carbon Emitting Generation Capacity Performance. For officers other than the CEO, there is an additional opportunity to earn a portion of the award based on Dominion Energy’s relative price-earnings ratio performance. The total of the payout under the grant was $8 million, all of which was accrued at December 31, 2025.
Performance Share Awards
Performance share awards are granted under Dominion Energy’s LTIP. The performance share awards are settled in cash at the end of the three-year performance period if certain ownership requirements are satisfied. If the ownership requirements have not been met at the time of grant, then the performance share awards are settled in common stock.
In February 2024, a performance share grant was made to officers. Payout of the performance grant is expected to occur by March 15, 2027, based on the achievement of three performance metrics during 2024, 2025 and 2026: TSR relative to that of companies that are members of Dominion Energy’s compensation peer group, Cumulative Operating EPS and Non-Carbon Emitting Generation Capacity Performance. At December 31, 2025, the targeted amount of the three-year grant was $18 million and a liability of $13 million had been accrued for this award.
In February 2025, a performance share grant was made to officers. Payout of the performance grant is expected to occur by March 15, 2028, based on the achievement of three performance metrics during 2025, 2026 and 2027: TSR relative to that of companies that are members of Dominion Energy’s compensation peer group, Cumulative Operating EPS and Non-Carbon Emitting Generation Capacity Performance. At December 31, 2025, the targeted amount of the three-year grant was $22 million and a liability of $7 million had been accrued for this award.
Combined Notes to Consolidated Financial Statements, Continued
Note 21**. Dividend Restrictions**
The Virginia Commission may prohibit any public service company, including Virginia Power, from declaring or paying a dividend to an affiliate if found to be inconsistent with the public interest. At December 31, 2025, the Virginia Commission had not restricted the payment of dividends by Virginia Power.
The North Carolina Commission, in its order approving the SCANA Combination, limited cumulative dividends payable to Dominion Energy by Virginia Power to (i) the amount of retained earnings the day prior to closing of the SCANA Combination plus (ii) any future earnings recorded by Virginia Power after such closing. In addition, notice to the North Carolina Commission is required if payment of dividends causes the equity component of Virginia Power’s capital structure to fall below 45%.
There is no specific restriction from the South Carolina Commission on the payment of dividends paid by DESC. Pursuant to the SCANA Merger Approval Order, the amount of any DESC dividends paid must be reasonable and consistent with the long-term payout ratio of the electric utility industry and gas distribution industry.
DESC’s bond indenture under which it issues first mortgage bonds contains provisions that could limit the payment of cash dividends on its common stock. DESC's bond indenture permits the payment of dividends on DESC's common stock only either (1) out of its Surplus (as defined in the bond indenture) or (2) in case there is no Surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.
At December 31, 2025, DESC’s retained earnings exceed the balance established by the Federal Power Act as a reserve on earnings attributable to hydroelectric generation plants. As a result, DESC is permitted to pay dividends without additional regulatory approval provided that such amounts would not bring the retained earnings balance below the established threshold.
See Notes 18 and 19 for a description of potential restrictions on common stock dividend payments by Dominion Energy in connection with the deferral of interest payments on the junior subordinated notes or a failure to pay dividends on the Series C Preferred Stock.
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 $1.2 billion and $738 million in 2025 and 2024, respectively, versus expected returns of $835 million and $982 million, 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, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions, except percentages) | ||||||||||||||||
| Changes in benefit obligation: | ||||||||||||||||
| Benefit obligation at beginning of year | $ | 7,652 | $ | 8,431 | $ | 1,018 | $ | 1,109 | ||||||||
| Service cost | 76 | 83 | 11 | 11 | ||||||||||||
| Interest cost | 433 | 431 | 57 | 57 | ||||||||||||
| Benefits paid | **(**533 | ) | (504 | ) | **(**82 | ) | (88 | ) | ||||||||
| Actuarial loss (gain) during the year | 241 | (404 | ) | **(**17 | ) | (43 | ) | |||||||||
| Plan amendments | **(**5 | ) | 30 | — | — | |||||||||||
| Settlements and curtailments(1) | **(**13 | ) | (415 | ) | — | (28 | ) | |||||||||
| Benefit obligation at end of year | $ | 7,851 | $ | 7,652 | $ | 987 | $ | 1,018 | ||||||||
| Changes in fair value of plan assets: | ||||||||||||||||
| Fair value of plan assets at beginning of year | $ | 8,478 | $ | 9,087 | $ | 2,203 | $ | 2,062 | ||||||||
| Actual return gain on plan assets | 931 | 503 | 254 | 235 | ||||||||||||
| Employer contributions | 33 | 76 | — | — | ||||||||||||
| Benefits paid | **(**533 | ) | (504 | ) | **(**63 | ) | (54 | ) | ||||||||
| Plan amendments | **(**5 | ) | — | — | — | |||||||||||
| Settlements(2) | **(**13 | ) | (684 | ) | — | (40 | ) | |||||||||
| Fair value of plan assets at end of year | $ | 8,891 | $ | 8,478 | $ | 2,394 | $ | 2,203 | ||||||||
| Funded status at end of year | $ | 1,040 | $ | 826 | $ | 1,407 | $ | 1,185 | ||||||||
| Amounts recognized in the Consolidated Balance Sheets at December 31: | ||||||||||||||||
| Noncurrent pension and other postretirement benefit assets | $ | 1,073 | $ | 883 | $ | 1,585 | $ | 1,356 | ||||||||
| Other current liabilities | **(**5 | ) | (7 | ) | **(**13 | ) | (13 | ) | ||||||||
| Noncurrent pension and other postretirement benefit liabilities(3) | **(**28 | ) | (50 | ) | **(**165 | ) | (158 | ) | ||||||||
| Net amount recognized | $ | 1,040 | $ | 826 | $ | 1,407 | $ | 1,185 | ||||||||
| Significant assumptions used to determine benefit obligations at December 31: | ||||||||||||||||
| Discount rate | 5.59**%-5.69%** | 5.84%-5.87% | 5.60**%-5.66%** | 5.83%-5.86% | ||||||||||||
| Weighted-average rate of increase for compensation | 4.38**%** | 4.40% | n/a | n/a | ||||||||||||
| Crediting interest rate for cash balance and similar plans | 4.34**%-4.44%** | 4.59%-4.62% | n/a | n/a |
(1)
2025 and 2024 include amounts related to settlements of nonqualified pension obligations. Additionally, 2024 amounts include settlements and curtailment related to the East Ohio and Questar Gas Transactions.
(2)
2025 and 2024 include amounts related to settlements of nonqualified pension obligations. Additionally, 2024 amounts include settlements related to the East Ohio and Questar Gas Transactions.
(3)
Presented within other deferred credits and other liabilities in Dominion Energy's Consolidated Balance Sheets.
Actuarial losses recognized during 2025 in Dominion Energy’s pension benefit obligations were $241 million primarily driven by a decrease in the discount rate and the result of a completed experience study. 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 gains recognized during 2025 in Dominion Energy’s other postretirement benefit obligations were $17 million primarily driven by the result of a completed experience study and partially offset 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.
The ABO for all of Dominion Energy’s defined benefit pension plans was $7.6 billion and $7.4 billion at December 31, 2025 and 2024, 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 $24 million of minimum required contributions to its qualified defined benefit pension plans in 2026. 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 not 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 2025 and 2024. Dominion Energy is not required to make any contributions to its VEBAs associated with its other postretirement plans in 2026. 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 | |||||||||||||||
| At December 31, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Benefit obligation | $ | 718 | $ | 724 | $ | 177 | $ | 171 | ||||||||
| Fair value of plan assets | 685 | 666 | — | — |
Combined Notes to Consolidated Financial Statements, Continued
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:
| At December 31, | 2025 | 2024 | ||||||
| (millions) | ||||||||
| Accumulated benefit obligation | $ | 26 | $ | 715 | ||||
| Fair value of plan assets | — | 666 |
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) | ||||||||
| 2026 | $ | 545 | $ | 83 | ||||
| 2027 | 553 | 82 | ||||||
| 2028 | 560 | 80 | ||||||
| 2029 | 568 | 80 | ||||||
| 2030 | 573 | 79 | ||||||
| 2031-2035 | 2,913 | 386 |
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. The long-term strategic target asset allocation for Dominion Energy’s pension funds is 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 debt funds, including public and private debt, and hedge funds.
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, | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1 | $ | 2 | $ | — | $ | 3 | $ | 395 | $ | — | $ | — | $ | 395 | ||||||||||||||||
| Common and preferred stocks: | ||||||||||||||||||||||||||||||||
| U.S. | 565 | — | — | 565 | 1,004 | — | — | 1,004 | ||||||||||||||||||||||||
| International | 604 | — | — | 604 | 723 | 1 | — | 724 | ||||||||||||||||||||||||
| Insurance contracts | — | 135 | 73 | 208 | — | 139 | 73 | 212 | ||||||||||||||||||||||||
| Corporate debt instruments | 113 | 870 | — | 983 | 70 | 486 | 11 | 567 | ||||||||||||||||||||||||
| Government securities | 61 | 2,027 | — | 2,088 | 16 | 1,303 | — | 1,319 | ||||||||||||||||||||||||
| Total recorded at fair value | $ | 1,344 | $ | 3,034 | $ | 73 | $ | 4,451 | $ | 2,208 | $ | 1,929 | $ | 84 | $ | 4,221 | ||||||||||||||||
| Assets recorded at NAV(1): | ||||||||||||||||||||||||||||||||
| Commingled funds/collective trust funds | 2,025 | 1,771 | ||||||||||||||||||||||||||||||
| Alternative investments: | ||||||||||||||||||||||||||||||||
| Real estate funds | 25 | 37 | ||||||||||||||||||||||||||||||
| Private equity funds | 1,449 | 1,304 | ||||||||||||||||||||||||||||||
| Debt funds | 205 | 188 | ||||||||||||||||||||||||||||||
| Hedge funds | 613 | 319 | ||||||||||||||||||||||||||||||
| Total recorded at NAV | $ | 4,317 | $ | 3,619 | ||||||||||||||||||||||||||||
| Total investments(2) | $ | 8,768 | $ | 7,840 |
(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 non interest-bearing cash of *$*39 million, pending sales of securities and advanced subscription of *$*64 million and net accrued income of *$*34 million, and includes net assets related to pending purchases of securities of $14 million at December 31, 2025. Excludes net assets related to pending sales of securities of *$*633 million and net accrued income of *$*21 million, and includes net assets related to pending purchases of securities of $16 million at December 31, 2024.
The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:
| At December 31, | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | — | $ | — | $ | — | $ | — | $ | 7 | $ | — | $ | — | $ | 7 | ||||||||||||||||
| Common and preferred stocks: | ||||||||||||||||||||||||||||||||
| U.S. | 498 | — | — | 498 | 946 | — | — | 946 | ||||||||||||||||||||||||
| International | 60 | — | — | 60 | 74 | — | — | 74 | ||||||||||||||||||||||||
| Insurance contracts | — | 8 | 4 | 12 | — | 8 | 5 | 13 | ||||||||||||||||||||||||
| Corporate debt instruments | 173 | 51 | — | 224 | 183 | 30 | 1 | 214 | ||||||||||||||||||||||||
| Government securities | 416 | 394 | — | 810 | 165 | 82 | — | 247 | ||||||||||||||||||||||||
| Total recorded at fair value | $ | 1,147 | $ | 453 | $ | 4 | $ | 1,604 | $ | 1,375 | $ | 120 | $ | 6 | $ | 1,501 | ||||||||||||||||
| Assets recorded at NAV(1): | ||||||||||||||||||||||||||||||||
| Commingled funds/collective trust funds | 433 | 495 | ||||||||||||||||||||||||||||||
| Alternative investments: | ||||||||||||||||||||||||||||||||
| Real estate funds | 7 | 9 | ||||||||||||||||||||||||||||||
| Private equity funds | 172 | 147 | ||||||||||||||||||||||||||||||
| Debt funds | 16 | 12 | ||||||||||||||||||||||||||||||
| Hedge funds | 140 | 20 | ||||||||||||||||||||||||||||||
| Total recorded at NAV | $ | 768 | $ | 683 | ||||||||||||||||||||||||||||
| Total investments(2) | $ | 2,372 | $ | 2,184 |
(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 non interest-bearing cash of *$*2 million, pending sales of securities and advanced subscription of *$*15 million and net accrued income of *$*7 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2025. Excludes net assets related to pending sales of securities and advanced subscription of *$*19 million and net accrued income of *$*2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2024.
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) | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| Beginning balance | $ | 84 | $ | — | $ | — | $ | 6 | $ | — | $ | — | ||||||||||||
| Total realized and unrealized (losses) gains | — | — | — | **(**1 | ) | — | — | |||||||||||||||||
| Purchases | — | 11 | — | — | 1 | — | ||||||||||||||||||
| Sales | **(**11 | ) | — | — | **(**1 | ) | — | — | ||||||||||||||||
| Transfers into Level 3 | — | 73 | — | — | 5 | — | ||||||||||||||||||
| Ending balance | $ | 73 | $ | 84 | $ | — | $ | 4 | $ | 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
Combined Notes to Consolidated Financial Statements, Continued
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, debt funds, including public and private debt, 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 and $18 million for the years ended December 31, 2024 and 2023, 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 and $(46) million for the years ended December 31, 2024 and 2023, 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, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||
| (millions, except percentages) | ||||||||||||||||||||||||
| Service cost | $ | 76 | $ | 83 | $ | 96 | $ | 11 | $ | 11 | $ | 14 | ||||||||||||
| Interest cost | 433 | 431 | 442 | 57 | 57 | 61 | ||||||||||||||||||
| Expected return on plan assets | **(**676 | ) | (811 | ) | (864 | ) | **(**159 | ) | (171 | ) | (151 | ) | ||||||||||||
| Amortization of prior service cost (credit) | 1 | 1 | — | **(**26 | ) | (36 | ) | (36 | ) | |||||||||||||||
| Net actuarial (gain) loss(1) | **(**14 | ) | (96 | ) | 304 | **(**112 | ) | (107 | ) | (125 | ) | |||||||||||||
| Settlements, curtailments and special termination benefits(2) | — | (56 | ) | — | — | (4 | ) | — | ||||||||||||||||
| Plan amendment | — | 22 | — | — | — | — | ||||||||||||||||||
| Net periodic benefit (credit) cost | $ | **(**180 | ) | $ | (426 | ) | $ | (22 | ) | $ | **(**229 | ) | $ | (250 | ) | $ | (237 | ) | ||||||
| Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities: | ||||||||||||||||||||||||
| Prior service cost | — | 6 | 2 | — | 4 | — | ||||||||||||||||||
| Less amounts included in net periodic benefit cost: | ||||||||||||||||||||||||
| Amortization of prior service (cost) credit | **(**1 | ) | (1 | ) | — | 26 | 36 | 36 | ||||||||||||||||
| Total recognized in other comprehensive income and regulatory assets and liabilities | $ | **(**1 | ) | $ | 5 | $ | 2 | $ | 26 | $ | 40 | $ | 36 | |||||||||||
| Significant assumptions used to determine periodic cost: | ||||||||||||||||||||||||
| Discount rate | 5.84**%-5.87%** | 5.37%-5.75% | 5.65%-5.75% | 5.83**%-5.86%** | 5.40%-5.74% | 5.69%-5.70% | ||||||||||||||||||
| Expected long-term rate of return on plan assets | 7.35**%** | 7.00%-8.35% | 7.00%-8.35% | 7.35**%** | 8.35% | 8.35% | ||||||||||||||||||
| Weighted-average rate of increase for compensation | 4.40**%** | 4.28% | 4.38% | n/a | n/a | n/a | ||||||||||||||||||
| Crediting interest rate for cash balance and similar plans | 4.59**%-4.62%** | 4.12%-4.50% | 4.40%-4.50% | n/a | n/a | n/a | ||||||||||||||||||
| Healthcare cost trend rate(3) | 7.00**%** | 7.00% | 7.00% | |||||||||||||||||||||
| Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)(3) | 5.00**%** | 5.00% | 5.00% | |||||||||||||||||||||
| Year that the rate reaches the ultimate trend rate(3) | 2032 | 2031 | 2030 |
(1)
*Excludes amortization expense (benefit) from regulatory assets and liabilities of $*7 *million, $*2 *million and $*39 million for the years ended December 31, 2025, 2024 and 2023, respectively, reflected in other income (expense) in Dominion Energy’s Consolidated Statement of Income.
(2)
2024 amounts relate primarily to the East Ohio Transaction.
(3)
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, | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (millions) | ||||||||||||||||
| Regulatory assets and liabilities: | ||||||||||||||||
| Net actuarial loss (gain) | $ | 523 | $ | 496 | $ | **(**99 | ) | $ | (65 | ) | ||||||
| Prior service cost (credit) | 7 | 8 | **(**27 | ) | (41 | ) | ||||||||||
| AOCI: | ||||||||||||||||
| Prior service cost (credit) | 2 | 2 | **(**28 | ) | (40 | ) | ||||||||||
| Total | $ | 532 | $ | 506 | $ | **(**154 | ) | $ | (146 | ) |
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 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 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 2025, 2024 and 2023. Virginia Power’s net periodic pension cost related to this plan was $89 million, $49 million and $34 million in 2025, 2024 and 2023, 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 $(64) million, $(72) million and $(60) million in 2025, 2024 and 2023, 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 2025, 2024 and 2023, Virginia Power made no contributions to the VEBAs and does not expect to contribute to the VEBAs in 2026.
Defined Contribution Plans
Dominion Energy also sponsors defined contribution employee savings plans that cover substantially all employees. During 2025, 2024 and 2023, Dominion Energy recognized $90 million, $82 million and $85 million, respectively, as employer matching contributions to these plans, excluding discontinued operations. Virginia Power also participates in these employee savings plans. During 2025, 2024 and 2023, Virginia Power recognized $32 million, $29 million and $26 million, respectively, as employer matching contributions to these plans.
Combined Notes to Consolidated Financial Statements, Continued
Note 23**. Commitments and Contingencies**
As a result of issues generated in the ordinary course of business, the Companies are involved in legal proceedings before various courts and are periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions or involve significant factual issues that need to be resolved, such that it is not possible for the Companies to estimate a range of possible loss. For such matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that the Companies are able to estimate a range of possible loss. For legal proceedings and governmental examinations that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. The Companies maintain various insurance programs, including general liability insurance coverage which provides coverage for personal injury or wrongful death cases. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Companies’ maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the Companies’ financial position, liquidity or results of operations.
Environmental Matters
The Companies are subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations.
Air
The CAA, as amended, is a comprehensive program utilizing a broad range of regulatory tools to protect and preserve the nation’s air quality. At a minimum, state-established regulatory programs are required to meet applicable requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements.
Ozone Standards
The EPA published final non-attainment designations for the October 2015 ozone standards in June 2018 with states required to develop plans to address the new standard. Certain states in which the Companies operate have developed plans, and had such plans approved or partially approved by the EPA, which are not expected to have a material impact on the Companies’ results of operations or cash flows. In March 2023, the EPA issued a final rule specifying an interstate federal implementation plan to comply with certain aspects of planning for the 2015 ozone standards which was applicable in August 2023 for certain states, including Virginia. The interstate federal implementation plan imposes tighter NOX emissions limits during the ozone season and includes provisions for the use of allowances to cover such emissions. Unless and until implementation plans for the 2015 ozone standards are fully developed and approved and in effect for all states in which the Companies operate, the Companies are unable to predict whether or to what extent the new rules will ultimately require additional controls. The expenditures required to implement additional controls could have a material impact on the Companies’ results of operations, financial condition and/or cash flows.
Carbon Regulations
In August 2016, the EPA issued a draft rule proposing to reaffirm that a source’s obligation to obtain a PSD or Title V permit for GHGs is triggered only if such permitting requirements are first triggered by non-GHG, or conventional, pollutants that are regulated by the New Source Review program, and exceed a significant emissions rate of 75,000 tons per year of CO2 equivalent emissions. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.
Water
The CWA, as amended, is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms. The Companies must comply with applicable aspects of the CWA programs at their operating facilities.
Regulation 316(b)
In October 2014, the final regulations under Section 316(b) of the CWA that govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold became effective. The rule establishes a national standard for impingement based on seven compliance options, but forgoes the creation of a single technology standard for entrainment. Instead, the EPA has delegated entrainment technology decisions to state regulators. State regulators are to make case-by-case entrainment technology determinations after an examination of five mandatory facility-specific factors, including a social cost-benefit test, and six optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two MGD, with a heightened entrainment analysis for those facilities over 125 MGD. Dominion Energy and Virginia Power currently have 14 and eight facilities, respectively, that are subject to the final regulations. Dominion Energy is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to eight hydroelectric facilities, including three Virginia Power facilities. The Companies anticipate that they may have to install impingement control technologies at certain of these stations that have once-through cooling systems. The Companies are currently evaluating the need
or potential for entrainment controls under the final rule as these decisions will be made on a case-by-case basis after a thorough review of detailed biological, technological, and cost benefit studies. DESC is conducting studies and implementing plans as required by the rule to determine appropriate intake structure modifications at certain facilities to ensure compliance with this rule. While the impacts of this rule could be material to the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.
Effluent Limitations Guidelines
In September 2015, the EPA released a final rule to revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category. The final rule established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required to convert from wet to dry or closed cycle coal ash management, improve existing wastewater treatment systems and/or install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted two separate petitions for reconsideration of the Effluent Limitations Guidelines final rule and stayed future compliance dates in the rule. Also in April 2017, the U.S. Court of Appeals for the Fifth Circuit granted the EPA’s request for a stay of the pending consolidated litigation challenging the rule while the EPA addresses the petitions for reconsideration. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the Effluent Limitations Guidelines final rule from November 2018 to November 2020; however, the latest date for compliance for these regulations was December 2023. In October 2020, the EPA released the final rule that extended the latest dates for compliance with individual facilities’ compliance dates that would vary based on circumstances and the determination by state regulators and may range from 2021 to 2028. In May 2024, the EPA released a final rule revising the 2015 and 2020 Effluent Limitations Guidelines, establishing more stringent standards for wastewater discharges for the Steam Electric Power Generating Category, which apply primarily to wastewater discharges at coal and oil steam generating stations. In December 2025, the EPA released a final rule that, among other things, extended the deadlines promulgated in the May 2024 final rule. Individual facilities’ compliance dates will vary based on circumstances and the determination by state regulators and may range from 2029 to 2034. Dominion Energy expects to complete wastewater treatment technology retrofits and modifications at its Williams generating station, with a similar project at its Wateree generation station under evaluation, to meet the requirements with the existing regulatory framework in South Carolina providing rate recovery mechanisms for costs of the projects. As discussed in Note 14, the Companies recorded an increase to their AROs in 2024 in connection with the expected compliance costs associated with the EPA’s May 2024 final rule concerning CCR. The Companies expect that such AROs would satisfy any AROs that would have otherwise been necessary for compliance with the EPA’s May 2024 Effluent Limitations, as amended by the December 2025 final rule. Dominion Energy is currently unable to estimate what costs, if any, may be required in addition to the project for the Williams generating station, a potential project at the Wateree generating station and the recorded AROs to meet the requirements to operate certain facilities past 2034. However, Dominion Energy expects that while such costs for facility improvements, if required, could be material to the Companies’ financial condition and/or cash flows, the existing regulatory frameworks in Virginia and South Carolina provide rate recovery mechanisms that could substantially mitigate any such impacts.
Waste Management and Remediation
The operations of the Companies are subject to a variety of state and federal laws and regulations governing the management and disposal of solid and hazardous waste, and release of hazardous substances associated with current and/or historical operations. The CERCLA, as amended, and similar state laws, may impose joint, several and strict liability for cleanup on potentially responsible parties who owned, operated or arranged for disposal at facilities affected by a release of hazardous substances. In addition, many states have created programs to incentivize voluntary remediation of sites where historical releases of hazardous substances are identified and property owners or responsible parties decide to initiate cleanups.
From time to time, the Companies may be identified as a potentially responsible party in connection with the alleged release of hazardous substances or wastes at a site. Under applicable federal and state laws, the Companies could be responsible for costs associated with the investigation or remediation of impacted sites, or subject to contribution claims by other responsible parties for their costs incurred at such sites. The Companies also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under the Companies’ insurance policies, rate recovery mechanisms or both. Except as described below, the Companies do not believe these matters will have a material effect on results of operations, financial condition and/or cash flows.
Dominion Energy has determined that it is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. At four sites associated with Dominion Energy, remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy has proposed remediation plans for one site at Virginia Power and expects to commence remediation activities in 2026 depending on receipt of final permits and approvals. At December 31, 2025 and 2024, Dominion Energy had $53 million and $56 million, respectively, of reserves recorded including a charge of $25 million ($19 million after-tax) that Virginia Power recorded in 2024, reflected in other operations and maintenance expense in the Consolidated Statements of Income. At December 31, 2025 and 2024, Virginia Power had $48 million and $50 million of reserves recorded, respectively. Dominion Energy is associated with three additional sites, including two associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, the Companies are unable to make an estimate of the potential financial statement impacts.
Combined Notes to Consolidated Financial Statements, Continued
Other Legal Matters
The Companies are defendants in a number of lawsuits and claims involving unrelated incidents of property damage and personal injury. Due to the uncertainty surrounding these matters, the Companies are unable to make an estimate of the potential financial statement impacts; however, they could have a material impact on results of operations, financial condition and/or cash flows. In 2024, Dominion Energy resolved a claim associated with operations included in the East Ohio Transaction and at December 31, 2024, Dominion Energy’s Consolidated Balance Sheet includes a $30 million offsetting reserve and insurance receivable for this claim. The related charge in Dominion Energy’s Consolidated Statement of Income for the year ended December 31, 2024 is inconsequential.
SCANA Legal Proceedings
The following describes certain legal proceedings involving Dominion Energy, SCANA or DESC relating primarily to events occurring before closing of the SCANA Combination. No reference to, or disclosure of, any proceeding, item or matter described below shall be construed as an admission or indication that such proceeding, item or matter is material. For certain of these matters, and unless otherwise noted therein, Dominion Energy is unable to estimate a reasonable range of possible loss and the related financial statement impacts, but for any such matter there could be a material impact to its results of operations, financial condition and/or cash flows. For the matters for which Dominion Energy is able to reasonably estimate a probable loss, Dominion Energy's Consolidated Balance Sheets at December 31, 2025 and 2024 included an inconsequential amount of reserves primarily related to personal injury or wrongful death cases. During the years ended December 31, 2025, 2024 and 2023, charges included in Dominion Energy’s Consolidated Statements of Income were inconsequential.
Matters Fully Resolved Prior to 2025 Impacting the Consolidated
Financial Statements
Governmental Proceedings and Investigations
In June 2018, DESC received a notice of proposed assessment of approximately $410 million, excluding interest, from the SCDOR following its audit of DESC’s sales and use tax returns for the periods September 1, 2008 through December 31, 2017. The proposed assessment, which includes 100% of the NND Project, is based on the SCDOR’s position that DESC’s sales and use tax exemption for the NND Project does not apply because the facility will not become operational. In December 2020, the parties reached an agreement in principle in the amount of $165 million to resolve this matter. In June 2021, the parties executed a settlement agreement which allows DESC to fund the settlement amount through a combination of cash, shares of Dominion Energy common stock or real estate with an initial payment of at least $43 million in shares of Dominion Energy common stock. In 2021 and 2022, Dominion Energy issued shares of its common stock to partially satisfy its obligation under the settlement agreement. In June 2022, DESC requested approval from the South Carolina Commission to transfer certain real estate with a total settlement value of $51 million to satisfy its remaining obligation under the settlement agreement. In July 2022, the South Carolina Commission voted to approve the request and issued its final order in August 2022. In 2022, DESC transferred certain non-utility property to the SCDOR to partially satisfy its obligation under the settlement agreement. In October 2022, DESC filed for approval to transfer the remaining real estate with FERC which was received in November 2022. In March 2023, DESC transferred utility property with a fair value of $10 million to the SCDOR resulting in a gain of $9 million ($7 million after-tax), recorded in other operations and maintenance expense (reflected in the Corporate and Other segment) in Dominion Energy’s Consolidated Statements of Income for the year ended December 31, 2023. In June 2023, DESC transferred the remaining utility property with a fair value of $11 million to the SCDOR resulting in a gain of $11 million ($8 million after-tax), recorded in other operations and maintenance expense (reflected in the Corporate and Other segment) in Dominion Energy’s Consolidated Statements of Income for the year ended December 31, 2023. In July 2023, DESC made a less than $1 million cash payment to the SCDOR to fully satisfy its remaining obligation, including applicable interest, under the settlement agreement.
Nuclear Operations
Nuclear Decommissioning – Minimum Financial Assurance
The NRC requires nuclear power plant owners to annually update minimum financial assurance amounts for the future decommissioning of their nuclear facilities. Decommissioning involves the decontamination and removal of radioactive contaminants from a nuclear power station once operations have ceased, in accordance with standards established by the NRC. The 2025 calculation for the NRC minimum financial assurance amount, aggregated for Dominion Energy and Virginia Power’s nuclear units, excluding joint owners’ assurance amounts and Millstone Unit 1, as this unit is in a decommissioning state, was $3.5 billion and $2.0 billion, respectively, and has been satisfied by a combination of the funds being collected and deposited in the nuclear decommissioning trusts and the real annual rate of return growth of the funds allowed by the NRC. The 2025 NRC minimum financial assurance amounts above were calculated using preliminary December 31, 2025 U.S. Bureau of Labor Statistics indices. Dominion Energy believes that decommissioning funds and their expected earnings will be sufficient to cover expected decommissioning costs for the Millstone units. In addition, Dominion Energy believes that the decommissioning funds and their expected earnings will be sufficient to cover expected decommissioning costs for the Summer unit, particularly when combined with future ratepayer collections and contributions. The Companies believe the decommissioning funds and their expected earnings for the Surry and North Anna units will be sufficient to cover decommissioning costs, particularly when combined with future ratepayer collections and contributions to these decommissioning trusts, if such future collections and contributions are required. This reflects a positive long-term outlook for trust fund investment returns as the decommissioning of the units will not be complete for decades. The Companies will continue to monitor these trusts to ensure they meet the NRC minimum financial assurance requirement, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC. See Note 9 for additional information on nuclear decommissioning trust investments.
Nuclear Insurance
The Price-Anderson Amendments Act of 1988 provides the public up to $16.3 billion of liability protection on a per site, per nuclear incident basis, via obligations required of owners of nuclear power plants, and allows for an inflationary provision adjustment every five years. During the first quarter of 2024, the total liability protection per nuclear incident available to all participants in the Secondary Financial Protection Program increased from $16.2 billion to $16.3 billion. These increases do not impact Dominion Energy’s responsibility per active unit under the Price-Anderson Amendments Act of 1988. The Companies have purchased $500 million of coverage from commercial insurance pools for Millstone, Summer, Surry and North Anna with the remainder provided through the mandatory industry retrospective rating plan. In the event of a nuclear incident at any licensed nuclear reactor in the U.S., the Companies could be assessed up to $166 million for each of their licensed reactors not to exceed $25 million per year per reactor. There is no limit to the number of incidents for which this retrospective premium can be assessed. The current levels of nuclear property insurance coverage for Millstone, Summer, Surry and North Anna are all $1.06 billion.
The Companies’ nuclear property insurance coverage for Millstone, Summer, Surry and North Anna meets the NRC minimum requirement for nuclear power plant licensees of $1.06 billion per reactor site. This includes coverage for premature decommissioning and functional total loss. The NRC requires that the proceeds from this insurance be used first, to return the reactor to and maintain it in a safe and stable condition and second, to decontaminate the reactor and station site in accordance with a plan approved by the NRC. Nuclear property insurance is provided by NEIL, a mutual insurance company, and is subject to retrospective premium assessments in any policy year in which losses exceed the funds available to the insurance company. Dominion Energy and Virginia Power’s maximum retrospective premium assessment for the current policy period is $58 million and $31 million, respectively. Based on the severity of the incident, the Board of Directors of the nuclear insurer has the discretion to lower or eliminate the maximum retrospective premium assessment. The Companies have the financial responsibility for any losses that exceed the limits or for which insurance proceeds are not available because they must first be used for stabilization and decontamination. Additionally, DESC maintains an excess property insurance policy with the European Mutual Association for Nuclear Insurance. The policy provides coverage to Summer for property damage and outage costs up to $1 million. The European Mutual Association for Nuclear Insurance policy permits retrospective assessments under certain conditions to cover insurer’s losses. Based on the current annual premium, DESC’s share of the retrospective premium assessment would not exceed an inconsequential amount.
Millstone, Virginia Power and Summer also purchase accidental outage insurance from NEIL to mitigate certain expenses, including replacement power costs, associated with the prolonged outage of a nuclear unit due to direct physical damage. Under this program, the Companies are subject to a retrospective premium assessment for any policy year in which losses exceed funds available to NEIL. Dominion Energy and Virginia Power’s maximum retrospective premium assessment for the current policy period is $39 million and $11 million, respectively.
ODEC, a part owner of North Anna, Santee Cooper, a part owner of Summer and Massachusetts Municipal and Green Mountain, part owners of Millstone’s Unit 3, are responsible to the Companies for their share of the nuclear decommissioning obligation and insurance premiums on applicable units, including any retrospective premium assessments and any losses not covered by insurance.
Spent Nuclear Fuel
The Companies entered into contracts with the DOE for the disposal of spent nuclear fuel under provisions of the Nuclear Waste Policy Act of 1982. The DOE failed to begin accepting the spent fuel on January 31, 1998, the date provided by the Nuclear Waste Policy Act and by the Companies’ contracts with the DOE. The Companies have previously received damages award payments and settlement payments related to these contracts.
By mutual agreement of the parties, the settlement agreements are extendable to provide for resolution of damages incurred after 2013. The settlement agreements for the Surry, North Anna and Millstone nuclear power stations have been extended and provided for periodic payments for damages incurred through December 31, 2025. In December 2025, the DOE notified the Companies that it intends to extend these agreements through December 31, 2028 and future additional extensions are contemplated by the settlement agreements. A similar agreement for Summer extends until the DOE has accepted the same amount of spent fuel from the facility as if it has fully performed its contractual obligations.
In 2025, Virginia Power received payments of $26 million for resolution of claims incurred at North Anna and Surry for the period of January 1, 2023 through December 31, 2023. In addition, Dominion Energy received payments of $14 million for resolution of claims incurred at Millstone for the period of July 1, 2023 through June 30, 2024 and $3 million for resolution of its share of claims incurred at Summer for the period of January 1, 2024 through December 31, 2024.
In 2024, Virginia Power received payments of $16 million for resolution of claims incurred at North Anna and Surry for the period of January 1, 2022 through December 31, 2022. In addition, Dominion Energy received payments of $11 million for resolution of claims incurred at Millstone for the period of July 1, 2022 through June 30, 2023 and $2 million for resolution of its share of claims incurred at Summer for the period of January 1, 2023 through December 31, 2023.
In 2023, Virginia Power received payments of $22 million for resolution of claims incurred at North Anna and Surry for the period of January 1, 2021 through December 31, 2021. In addition, Dominion Energy received payments of $8 million for resolution of claims incurred at Millstone for the period of July 1, 2021 through June 30, 2022 and $6 million for resolution of its share of claims incurred at Summer for the period of January 1, 2022 through December 31, 2022.
The Companies continue to recognize receivables for certain spent nuclear fuel-related costs that they believe are probable of recovery from the DOE. Dominion Energy’s receivables for spent nuclear fuel-related costs totaled $70 million and $83 million at December 31, 2025 and 2024, respectively. Virginia Power’s receivables for spent nuclear fuel-related costs totaled $53 million and $62 million at December 31, 2025 and 2024, respectively.
Combined Notes to Consolidated Financial Statements, Continued
The Companies will continue to manage their spent fuel until it is accepted by the DOE.
Offshore Wind Decommissioning – Minimum Financial Assurance
BOEM requires entities holding a commercial lease for offshore wind facilities to provide financial assurance, as annually determined by BOEM, for future decommission of such facilities including those under development. Decommissioning costs include removing or decommissioning all facilities, projects, cables, pipelines and obstructions, as well as clearing the seafloor of all obstructions created by activities on the leased acreage. The most recent financial assurance calculation received from BOEM for the CVOW Commercial Project, based on its expected completion, was $1.6 billion. As discussed in Note 13, Virginia Power’s November 2024 application for Rider OSW filed with the Virginia Commission was approved in August 2025 and included a proposal for Virginia Power to establish a decommissioning trust fund associated with the CVOW Commercial Project. The applicable amount included within the total revenue requirement of Rider OSW will be allocated for such purposes. To the extent that the minimum financial assurance requirements are not able to be met from such decommissioning trust funds, Virginia Power may be required to utilize parent company guarantees, surety bonding or other financial instruments recognized by BOEM.
Long-Term Purchase Agreements
At December 31, 2025, Dominion Energy had the following long-term commitments that are noncancelable or are cancelable only under certain conditions, and that a third party has used to secure financing for the facility that will provide the contracted goods or services:
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | ||||||||||||||||||||||
| (millions) | ||||||||||||||||||||||||||||
| Purchased electric capacity(1) | $ | 85 | $ | 86 | $ | 85 | $ | 84 | $ | 85 | $ | 456 | $ | 881 |
(1)
*Commitments represent estimated amounts payable for energy under power purchase contracts with qualifying facilities which expire at various dates through 2040. Energy payments are generally based on fixed dollar amounts per month and totaled $*71 million and $60 million for the years ended December 31, 2025 and 2024, respectively.
Guarantees, Surety Bonds and Letters of Credit
Dominion Energy enters into guarantee arrangements on behalf of its consolidated subsidiaries, primarily to facilitate their commercial transactions with third-parties. If any of these subsidiaries fail to perform or pay under the contracts and the counterparties seek performance or payment, Dominion Energy would be obligated to satisfy such obligation. To the extent that a liability subject to a guarantee has been incurred by one of Dominion Energy’s consolidated subsidiaries, that liability is included in the Consolidated Financial Statements. Dominion Energy is not required to recognize liabilities for guarantees issued on behalf of its subsidiaries unless it becomes probable that it will have to perform under the guarantees. Terms of the guarantees typically end once obligations have been paid. Dominion Energy currently believes it is unlikely that it would be required to perform or otherwise incur any losses associated with guarantees of its subsidiaries’ obligations.
At December 31, 2025, Dominion Energy had issued the following subsidiary guarantees:
| Maximum Exposure | ||||
| (millions) | ||||
| Commodity transactions(1) | $ | 2,878 | ||
| Nuclear obligations(2) | 198 | |||
| Solar(3) | 85 | |||
| Other(4) | 366 | |||
| Total(5)(6) | $ | 3,527 |
(1)
Guarantees related to commodity commitments of certain subsidiaries. These guarantees were provided to counterparties in order to facilitate physical and financial transaction related commodities and services.
(2)
Guarantees primarily related to certain DGI subsidiaries regarding all aspects of running a nuclear facility.
(3)
Includes guarantees to facilitate the development of solar projects.
(4)
Guarantees related to other miscellaneous contractual obligations such as leases, environmental obligations, construction projects and insurance programs. Due to the uncertainty of workers’ compensation claims, the parental guarantee has no stated limit.
(5)
Excludes Dominion Energy’s guarantee of an offshore wind installation vessel discussed in Note 15.
(6)
In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia and commenced an initial five-year lease term in August 2019*, with certain options at the end of the term to extend the lease, purchase or sell the property. In July 2024, the agreement was amended to reflect Dominion Energy’s election to* extend the lease term through July 2029*. At the end of the lease term, Dominion Energy can (i) extend the term of the lease for at least* one year*, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the 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 project costs, Dominion Energy may be required to make a payment to the lessor equal to the recorded lease balance.*
In addition, Dominion Energy had issued an additional $20 million of guarantees at December 31, 2025, primarily to support third-parties. No amounts related to these guarantees have been recorded.
In 2025, Dominion Energy entered into two guarantee agreements to support a portion of Valley Link’s financing obligations under a $180 million revolving credit facility and up to $120 million of letters of credit. Dominion Energy’s obligation under these guarantees is only triggered if a Valley Link project is cancelled and Valley Link cannot pay outstanding balances related to the cancelled project. Dominion Energy’s maximum potential loss exposure under the terms of the guarantees is limited to 30% of outstanding borrowings, an equal percentage to Dominion Energy’s ownership in Valley Link. At December 31, 2025, Valley Link had borrowed $41 million against the revolving credit facility and had $90 million outstanding letters of credit. No amounts related to these guarantees has been recorded at Dominion Energy.
Dominion Energy also had issued three guarantees at December 31, 2025 related to Cove Point, previously an equity method investment, in support of terminal services and transportation. Two of the Cove Point guarantees have a cumulative
maximum exposure of $1.9 billion while the other one guarantee has no maximum limit. No amounts related to these guarantees have been recorded.
Additionally, at December 31, 2025, Dominion Energy had purchased $528 million of surety bonds, including $456 million at Virginia Power, and authorized the issuance of letters of credit by financial institutions, as discussed in Note 17, to facilitate commercial transactions by its subsidiaries with third-parties. Under the terms of surety bonds, the Companies are obligated to indemnify the respective surety bond company for any amounts paid.
Indemnifications
As part of commercial contract negotiations in the normal course of business, the Companies may sometimes agree to make payments to compensate or indemnify other parties for possible future unfavorable financial consequences resulting from specified events. The specified events may involve an adverse judgment in a lawsuit or the imposition of additional taxes due to a change in tax law or interpretation of the tax law. The Companies are unable to develop an estimate of the maximum potential amount of any other future payments under these contracts because events that would obligate them have not yet occurred or, if any such event has occurred, they have not been notified of its occurrence. However, at December 31, 2025, the Companies believe any other future payments, if any, that could ultimately become payable under these contract provisions, would not have a material impact on their results of operations, cash flows or financial position.
Charitable Commitments
Dominion Energy’s Consolidated Balance Sheets include $43 million and $32 million in other deferred credits and other liabilities at December 31, 2025 and 2024, respectively and $15 million and $21 million in other current liabilities at December 31, 2025 and 2024, respectively, for charitable commitments. In 2025 and 2024, Dominion Energy made unconditional promises to charitable organizations and as a result recorded charges totaling $42 million ($42 million after-tax) and $72 million ($54 million after-tax) in other income (expense) in its Consolidated Statements of Income for the years ended December 31, 2025 and 2024, respectively, reflected in the Corporate and Other segment. These commitments are primarily to be funded at various intervals through 2032.
Note 24**. Credit Risk**
Dominion Energy
As a diversified energy company, Dominion Energy transacts primarily with major companies in the energy industry and with commercial and residential energy consumers. These transactions principally occur in the Northeast, mid-Atlantic and Southeast regions of the U.S. Dominion Energy does not believe that this geographic concentration contributes significantly to its overall exposure to credit risk. In addition, as a result of its large and diverse customer base, Dominion Energy is not exposed to a significant concentration of credit risk for receivables arising from electric and gas utility operations.
Dominion Energy’s exposure to credit risk is concentrated primarily within its energy marketing and price risk management activities, as Dominion Energy transacts with a smaller, less diverse group of counterparties and transactions may involve large notional volumes and potentially volatile commodity prices. Energy marketing and price risk management activities include marketing of nonregulated generation output, structured transactions and the use of financial contracts for enterprise-wide hedging purposes. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights. Gross credit exposure is calculated prior to the application of any collateral. At December 31, 2025, Dominion Energy’s credit exposure totaled $223 million. Of this amount, investment grade counterparties, including those internally rated, represented 92%. No single counterparty, whether investment grade or non-investment grade, exceeded $143 million of exposure.
Virginia Power
Virginia Power sells electricity and provides distribution and transmission services to customers in Virginia and northeastern North Carolina. Management believes that this geographic concentration risk is mitigated by the diversity of Virginia Power’s customer base, which includes residential, commercial and industrial customers, as well as rural electric cooperatives and municipalities. Credit risk associated with trade accounts receivable from energy consumers is limited due to the large number of customers. Virginia Power’s exposure to potential concentrations of credit risk results primarily from sales to wholesale customers. Virginia Power’s gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights. Gross credit exposure is calculated prior to the application of collateral. At December 31, 2025, Virginia Power’s exposure related to wholesale customers totaled $16 million. Of this amount, investment grade counterparties, including those internally rated, represented 57%. No single counterparty, whether investment grade or non-investment grade, exceeded $3 million of exposure.
Credit-Related Contingent Provisions
Certain of Dominion Energy and Virginia Power’s derivative instruments contain credit-related contingent provisions. These provisions require Dominion Energy and Virginia Power to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered, Dominion Energy would have been required to post additional collateral to its counterparties of $29 million, with none related to Virginia Power, at December 31, 2025, and $13 million, with $12 million related to Virginia Power, at December 31, 2024. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. At both December 31, 2025 and 2024, Dominion Energy and Virginia Power had no amounts of collateral posted related to derivatives with credit related contingent provisions that are in a liability position and not fully collateralized with cash. There were no letters of credits posted as collateral at December 31, 2025 or 2024 for either Dominion Energy or Virginia Power. The aggregate fair value of all derivative instruments with credit-related contingent provisions that are in a liability position and not fully collateralized
Combined Notes to Consolidated Financial Statements, Continued
with cash for Dominion Energy was $29 million, with none related to Virginia Power, at December 31, 2025, and $13 million, with $12 million related to Virginia Power, at December 31, 2024, which does not include the impact of any offsetting asset positions.
See Note 7 for further information about derivative instruments.
Note 25**. Related-party Transactions**
Dominion Energy’s transactions with equity method investments are described in Note 9. Virginia Power engages in related party transactions primarily with other Dominion Energy subsidiaries (affiliates). Virginia Power’s receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power is included in Dominion Energy’s consolidated federal income tax return and, where applicable, combined income tax returns for Dominion Energy are filed in various states. See Note 2 for further information. A discussion of Virginia Power’s significant related party transactions follows.
Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of natural gas. See Note 7 for additional information. At December 31, 2025, Virginia Power’s derivative assets and liabilities with affiliates were $22 million and $12 million, respectively. At December 31, 2024, Virginia Power’s derivative assets and liabilities with affiliates were $19 million and $17 million, respectively.
Virginia Power participates in certain Dominion Energy benefit plans as described in Note 22. At December 31, 2025 and 2024, Virginia Power’s amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and reflected in other deferred credits and other liabilities in the Consolidated Balance Sheets were $594 million and $505 million, respectively. At December 31, 2025 and 2024, Virginia Power’s amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and reflected in noncurrent pension and other postretirement benefit assets in the Consolidated Balance Sheets were $729 million and $663 million, respectively.
DES and other affiliates provide accounting, legal, finance and certain administrative and technical services to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage.
The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Virginia Power on the basis of direct and allocated methods in accordance with Virginia Power’s services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.
Presented below are Virginia Power’s significant transactions with DES and other affiliates:
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||
| (millions) | ||||||||||||
| Commodity purchases from affiliates | $ | 941 | $ | 585 | $ | 582 | ||||||
| Services provided by affiliates(1)(2) | 823 | 667 | 605 | |||||||||
| Services provided to affiliates | 16 | 22 | 20 |
(1)
*Includes capitalized expenditures of $*305 *million, $*234 million and $210 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(2)
Excludes amounts related to Virginia Power's operating lease with an affiliated entity as discussed below and in Note 15.
Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. Virginia Power’s intercompany credit facility with Dominion Energy has a maximum capacity of $3.0 billion. In December 2024, Virginia Power amended this facility to extend the maturity date to December 2027. There were $1.2 billion and $500 million in short-term demand note borrowings from Dominion Energy at December 31, 2025 and 2024, respectively. The weighted-average interest rate of these borrowings was 4.03% and 4.71% at December 31, 2025 and 2024, respectively. Virginia Power had no outstanding borrowings, net of repayments under the Dominion Energy money pool for its nonregulated subsidiaries at December 31, 2025 and 2024. Interest charges related to Virginia Power’s borrowings from Dominion Energy were $42 million, $29 million and $80 million for the years ended December 31, 2025, 2024 and 2023, respectively.
In 2025, Virginia Power declared and paid a dividend of $550 million. In the fourth quarter of 2024, Virginia Power declared a dividend of $407 million, which was paid in 2025.
In 2025 and 2023, Virginia Power issued common stock to Dominion Energy as discussed in Note 20. There were no such issuances of Virginia Power common stock to Dominion Energy in 2024.
See Note 15 for discussion of Virginia Power’s lease, classified as an operating lease with a 20-month term, with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel. At December 31, 2025, Virginia Power’s Consolidated Balance Sheet reflects $185 million other deferred charges and other assets for its right-of-use asset and $188 million of affiliated lease payables comprised of $141 million presented in other current liabilities and $47 million presented in other deferred credits and other liabilities. For the year ended December 31, 2025, Virginia Power capitalized $18 million of such affiliated lease cost associated with the CVOW Commercial Project.
Note 26**. Operating Segments**
The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:
| Primary Operating Segment | Description of Operations | Dominion Energy | Virginia Power | |||
| Dominion Energy Virginia | Regulated electric distribution | X | X | |||
| Regulated electric transmission | X | X | ||||
| Regulated electric generation fleet(1) | X | X | ||||
| Dominion Energy South Carolina | Regulated electric distribution | X | ||||
| Regulated electric transmission | X | |||||
| Regulated electric generation fleet | X | |||||
| Regulated gas distribution and storage | X | |||||
| Contracted Energy(2) | Nonregulated electric generation fleet | X |
(1)
Includes Virginia Power’s non-jurisdictional solar generation operations.
(2)
Includes renewable natural gas and offshore wind installation vessel operations.
In addition to the operating segments above, the Companies also report a Corporate and Other segment.
Dominion Energy
The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, including the net impact of the operations reflected as discontinued operations, which includes the entities included in the East Ohio (through March 2024), Questar Gas (through May 2024) and PSNC (through September 2024) Transactions, a noncontrolling interest in Cove Point (through September 2023), certain solar generation facility development operations (through April 2024) and a noncontrolling interest in Atlantic Coast Pipeline as discussed in Notes 3 and 9.
Dominion Energy’s CODM is the CEO. The Dominion Energy CODM uses net income (loss) as the primary profit or loss measure at each segment. The Dominion Energy CODM considers budget-to-actual variances on a quarterly basis when making decisions about allocating operating and capital resources to each segment, when assessing the performance of each segment and when determining the compensation of certain employees.
In 2025, Dominion Energy reported after-tax net expenses of $300 million in the Corporate and Other segment, including $32 million of after-tax net income for specific items with $28 million of after-tax net expenses attributable to its operating segments.
The net expenses for specific items attributable to Dominion Energy’s operating segments in 2025 primarily related to the impact of the following items:
$258 million ($192 million after-tax) of charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project, attributable to Dominion Energy Virginia;
A $124 million ($94 million after-tax) net unrealized loss related to economic hedging activities, attributable to Contracted Energy; and
A $106 million ($79 million after-tax) loss associated with severe weather events, attributable to Dominion Energy Virginia; partially offset by
A $507 million ($335 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:
Contracted Energy ($290 million after-tax); and
Dominion Energy Virginia ($45 million after-tax).
In 2024, Dominion Energy reported after-tax net expenses of $734 million in the Corporate and Other segment, including $358 million of after-tax net expenses for specific items with $222 million of after-tax net expenses attributable to its operating segments.
The net expenses for specific items attributable to Dominion Energy’s operating segments in 2024 primarily related to the impact of the following items:
A $232 million ($176 million after-tax) net unrealized loss related to economic hedging activities, attributable to Contracted Energy;
A $122 million ($89 million after-tax) charge related to the revision of AROs for Millstone Unit 1, attributable to Contracted Energy;
A $103 million ($77 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project, attributable to Dominion Energy Virginia;
$60 million ($46 million after-tax) of charges for the impairment of certain nonregulated renewable natural gas facilities, attributable to Contracted Energy;
A $58 million ($44 million after-tax) charge in connection with the electric base rate case in South Carolina, attributable to Dominion Energy South Carolina;
A $47 million ($35 million after-tax) charge in connection with a settlement of an agreement, attributable to Contracted Energy;
$40 million ($30 million after-tax) of charges for dismantling costs associated with the early retirement of certain electric generation facilities, attributable to Dominion Energy Virginia;
A $30 million ($22 million after-tax) charge related to the write-off of certain early-stage development costs, attributable to Dominion Energy Virginia; and
A $25 million ($19 million after-tax) charge associated with an accrual for remediation costs at a manufactured gas plant site, attributable to Dominion Energy Virginia; partially offset by
A $559 million ($344 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:
Contracted Energy ($295 million after-tax); and
Dominion Energy Virginia ($49 million after-tax).
In 2023, Dominion Energy reported after-tax net expenses of $198 million in the Corporate and Other segment, including $247 million of after-tax net income for specific items with $336 million of after-tax net income attributable to its operating segments.
Combined Notes to Consolidated Financial Statements, Continued
The net income for specific items attributable to Dominion Energy’s operating segments in 2023 primarily related to the impact of the following items:
A $586 million ($447 million after-tax) net unrealized gain related to economic hedging activities, attributable to Contracted Energy;
A $406 million ($236 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:
Contracted Energy ($203 million after-tax); and
Dominion Energy Virginia ($33 million after-tax); and
A $28 million ($21 million after-tax) benefit related to real estate transactions, including gains on the transfer of property to satisfy litigation associated with the NND Project, attributable to Dominion Energy South Carolina; partially offset by
A $244 million ($182 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia;
An $83 million ($60 million after-tax) charge related to the revision of AROs for Millstone Unit 1, attributable to Contracted Energy;
A $65 million ($48 million after-tax) charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery, attributable to Dominion Energy Virginia;
A $36 million ($27 million after-tax) charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023, attributable to Dominion Energy Virginia;
A $35 million ($26 million after-tax) decrease from Dominion Energy’s share of an impairment of certain property, plant and equipment at Align RNG, attributable to Contracted Energy; and
A $25 million ($19 million after-tax) charge associated with the abandonment of certain regulated solar generation and other facilities, attributable to Dominion Energy Virginia.
The following table presents segment information pertaining to Dominion Energy’s 2025 operations:
| Year Ended December 31, 2025 | Dominion Energy Virginia | Dominion Energy South Carolina | Contracted Energy | Corporate and Other | Adjustments & Eliminations | Consolidated Total | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Total revenue from external customers | $ | 11,843 | $ | 3,568 | $ | 1,140 | $ | **(**45 | ) | $ | — | $ | 16,506 | |||||||||||
| Intersegment revenue | **(**3 | ) | 10 | 39 | 1,217 | **(**1,263 | ) | — | ||||||||||||||||
| Total Operating Revenue | 11,840 | 3,578 | 1,179 | 1,172 | **(**1,263 | ) | 16,506 | |||||||||||||||||
| Electric fuel and other energy-related purchases(1) | 3,591 | 795 | 114 | — | **(**11 | ) | 4,489 | |||||||||||||||||
| Purchased electric capacity(1) | 71 | 13 | — | — | **(**2 | ) | 82 | |||||||||||||||||
| Purchased gas(1) | — | 291 | 6 | — | — | 297 | ||||||||||||||||||
| Other operations and maintenance(1)(2) | 2,264 | 691 | 532 | 1,806 | **(**1,229 | ) | 4,064 | |||||||||||||||||
| Depreciation and amortization(1) | 1,623 | 569 | 118 | 91 | **(**14 | ) | 2,387 | |||||||||||||||||
| Other taxes(1) | 361 | 303 | 58 | 62 | **(**11 | ) | 773 | |||||||||||||||||
| Total Operating Expenses | 7,910 | 2,662 | 828 | 1,959 | **(**1,267 | ) | 12,092 | |||||||||||||||||
| Interest and related charges(1) | 957 | 273 | 55 | 939 | **(**202 | ) | 2,022 | |||||||||||||||||
| Income tax expense (benefit)(1) | 514 | 123 | **(**22 | ) | **(**83 | ) | — | 532 | ||||||||||||||||
| Equity in earnings (losses) of equity method investees(3) | — | — | 1 | **(**7 | ) | — | **(**6 | ) | ||||||||||||||||
| Other income (expense)(3) | 167 | 1 | **(**6 | ) | 933 | **(**9 | ) | 1,086 | ||||||||||||||||
| Interest income(3) | 23 | 14 | 125 | 174 | **(**197 | ) | 139 | |||||||||||||||||
| Net Loss from Discontinued Operations Including Noncontrolling Interests | — | — | — | **(**14 | ) | — | **(**14 | ) | ||||||||||||||||
| Noncontrolling Interests**(3)** | 324 | — | — | **(**257 | ) | — | 67 | |||||||||||||||||
| Net Income (Loss) Attributable to Dominion Energy | 2,325 | 535 | 438 | **(**300 | ) | — | 2,998 | |||||||||||||||||
| Investment in equity method investees(4) | — | — | 92 | 40 | — | 132 | ||||||||||||||||||
| Capital expenditures | 10,548 | 1,174 | 831 | 101 | **(**1 | ) | 12,653 | |||||||||||||||||
| Total assets (billions) | 80.8 | 19.3 | 12.1 | 10.2 | **(**6.5 | ) | 115.9 |
(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Dominion Energy’s CODM.
(2)
Includes impairment of assets and other charges.
(3)
Items designated are other segment items for each reportable segment.
(4)
Excludes liability to Atlantic Coast Pipeline.
The following table presents segment information pertaining to Dominion Energy’s 2024 operations:
| Year Ended December 31, 2024 | Dominion Energy Virginia | Dominion Energy South Carolina | Contracted Energy | Corporate and Other | Adjustments & Eliminations | Consolidated Total | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Total revenue from external customers | $ | 10,226 | $ | 3,295 | $ | 1,099 | $ | (161 | ) | $ | — | $ | 14,459 | |||||||||||
| Intersegment revenue | 9 | 9 | 10 | 1,002 | (1,030 | ) | — | |||||||||||||||||
| Total Operating Revenue | 10,235 | 3,304 | 1,109 | 841 | (1,030 | ) | 14,459 | |||||||||||||||||
| Electric fuel and other energy-related purchases(1) | 2,743 | 775 | 102 | — | (6 | ) | 3,614 | |||||||||||||||||
| Purchased electric capacity(1) | 68 | 8 | — | — | (2 | ) | 74 | |||||||||||||||||
| Purchased gas(1) | — | 260 | — | — | — | 260 | ||||||||||||||||||
| Other operations and maintenance(1)(2) | 2,217 | 671 | 487 | 1,827 | (1,014 | ) | 4,188 | |||||||||||||||||
| Depreciation and amortization(1) | 1,635 | 546 | 76 | 88 | — | 2,345 | ||||||||||||||||||
| Other taxes(1) | 332 | 292 | 53 | 62 | (8 | ) | 731 | |||||||||||||||||
| Total Operating Expenses | 6,995 | 2,552 | 718 | 1,977 | (1,030 | ) | 11,212 | |||||||||||||||||
| Interest and related charges(1) | 856 | 276 | 36 | 912 | (187 | ) | 1,893 | |||||||||||||||||
| Income tax expense (benefit)(1) | 446 | 80 | 121 | (236 | ) | — | 411 | |||||||||||||||||
| Equity in earnings (losses) of equity method investees(3) | — | — | 9 | (6 | ) | — | 3 | |||||||||||||||||
| Other income (expense)(3) | 100 | (5 | ) | (15 | ) | 614 | — | 694 | ||||||||||||||||
| Interest income(3) | 23 | 7 | 131 | 170 | (187 | ) | 144 | |||||||||||||||||
| Net Income from Discontinued Operations Including Noncontrolling Interests | — | — | — | 197 | — | 197 | ||||||||||||||||||
| Noncontrolling Interests**(3)** | 50 | — | — | (103 | ) | — | (53 | ) | ||||||||||||||||
| Net Income (Loss) Attributable to Dominion Energy | 2,011 | 398 | 359 | (734 | ) | — | 2,034 | |||||||||||||||||
| Investment in equity method investees(4) | — | — | 91 | 47 | — | 138 | ||||||||||||||||||
| Capital expenditures | 9,968 | 1,105 | 772 | 582 | — | 12,427 | ||||||||||||||||||
| Total assets (billions) | 70.0 | 18.4 | 9.5 | 10.2 | (5.7 | ) | 102.4 |
(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Dominion Energy’s CODM.
(2)
Includes impairment of assets and other charges.
(3)
Items designated are other segment items for each reportable segment.
(4)
Excludes liability to Atlantic Coast Pipeline.
Combined Notes to Consolidated Financial Statements, Continued
The following table presents segment information pertaining to Dominion Energy’s 2023 operations:
| Year Ended December 31, 2023 | Dominion Energy Virginia | Dominion Energy South Carolina | Contracted Energy | Corporate and Other | Adjustments & Eliminations | Consolidated Total | ||||||||||||||||||
| (millions) | ||||||||||||||||||||||||
| Total revenue from external customers | $ | 9,575 | $ | 3,369 | $ | 835 | $ | 614 | $ | — | $ | 14,393 | ||||||||||||
| Intersegment revenue | (2 | ) | 6 | 16 | 939 | (959 | ) | — | ||||||||||||||||
| Total Operating Revenue | 9,573 | 3,375 | 851 | 1,553 | (959 | ) | 14,393 | |||||||||||||||||
| Electric fuel and other energy-related purchases(1) | 2,918 | 947 | 80 | — | (10 | ) | 3,935 | |||||||||||||||||
| Purchased electric capacity(1) | 46 | 12 | — | — | (3 | ) | 55 | |||||||||||||||||
| Purchased gas(1) | — | 285 | — | — | — | 285 | ||||||||||||||||||
| Other operations and maintenance(1)(2) | 1,842 | 612 | 544 | 1,381 | (939 | ) | 3,440 | |||||||||||||||||
| Depreciation and amortization(1) | 1,622 | 531 | 105 | 322 | — | 2,580 | ||||||||||||||||||
| Other taxes(1) | 298 | 285 | 48 | 60 | (7 | ) | 684 | |||||||||||||||||
| Total Operating Expenses | 6,726 | 2,672 | 777 | 1,763 | (959 | ) | 10,979 | |||||||||||||||||
| Interest and related charges(1) | 772 | 249 | 44 | 820 | (206 | ) | 1,679 | |||||||||||||||||
| Income tax expense(1) | 473 | 79 | 25 | 67 | — | 644 | ||||||||||||||||||
| Equity in earnings (losses) of equity method investees(3) | — | — | (34 | ) | 8 | — | (26 | ) | ||||||||||||||||
| Other income (expense)(3) | 65 | (4 | ) | 22 | 820 | — | 903 | |||||||||||||||||
| Interest income(3) | 17 | 6 | 106 | 196 | (206 | ) | 119 | |||||||||||||||||
| Net Loss From Discontinued Operations Including Noncontrolling Interests | — | — | — | (125 | ) | — | (125 | ) | ||||||||||||||||
| Net Income (Loss) Attributable to Dominion Energy | 1,684 | 377 | 99 | (198 | ) | — | 1,962 | |||||||||||||||||
| Capital expenditures | 7,196 | 957 | 740 | 1,342 | — | 10,235 |
(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Dominion Energy’s CODM.
(2)
Includes impairment of assets and other charges.
(3)
Items designated are other segment items for each reportable segment.
Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.
Virginia Power
The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
Virginia Power’s CODM is the CEO. The Virginia Power CODM uses net income (loss) as the primary profit or loss measure at each segment. The Virginia Power CODM considers budget-to-actual variances on a quarterly basis when making decisions about allocating operating and capital resources to each segment, when assessing the performance of each segment and when determining the compensation of certain employees.
In 2025, Virginia Power reported after-tax net expenses of $225 million in the Corporate and Other segment, including $225 million of after-tax net expenses for specific items all of which were attributable to its operating segment.
The net expenses for specific items attributable to its operating segment in 2025 primarily related to the impact of the following items:
$258 million ($192 million after-tax) of charges for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project; and
A $106 million ($79 million after-tax) loss associated with severe weather events; partially offset by
A $72 million ($45 million after-tax) gain related to investments in nuclear decommissioning trust funds.
In 2024, Virginia Power reported after-tax net expenses of $114 million in the Corporate and Other segment, including $115 million of after-tax net expenses for specific items all of which were attributable to its operating segment.
The net expenses for specific items attributable to its operating segment in 2024 primarily related to the impact of the following items:
A $103 million ($77 million after-tax) charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project;
$40 million ($30 million after-tax) of charges for dismantling costs associated with the early retirement of certain electric generation facilities;
A $30 million ($22 million after-tax) charge related to the write-off of certain early-stage development costs; and
A $25 million ($19 million after-tax) charge associated with an accrual for remediation costs at a manufactured gas plant site; partially offset by
A $82 million ($49 million after-tax) gain related to investments in nuclear decommissioning trust funds.
In 2023, Virginia Power reported after-tax net expenses of $242 million in the Corporate and Other segment, including $242 million of after-tax net expenses for specific items all of which were attributable to its operating segment.
The net expenses for specific items attributable to its operating segment in 2023 primarily related to the impact of the following items:
A $244 million ($182 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review;
A $65 million ($48 million after-tax) charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery;
A $36 million ($27 million after-tax) charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023; and
A $25 million ($19 million after-tax) charge associated with the abandonment of certain regulated solar generation and other facilities; partially offset by
A $58 million ($33 million after-tax) gain related to investments in nuclear decommissioning trust funds.
The following table presents segment information pertaining to Virginia Power’s operations:
| Dominion Energy Virginia | Corporate and Other | Consolidated Total | ||||||||||
| (millions) | ||||||||||||
| Year Ended December 31, 2025 | ||||||||||||
| Operating Revenue | $ | 11,841 | $ | **(**29 | ) | $ | 11,812 | |||||
| Electric fuel and other energy-related purchases(1) | 3,591 | — | 3,591 | |||||||||
| Purchased electric capacity(1) | 71 | — | 71 | |||||||||
| Other operations and maintenance(1)(2) | 2,264 | 582 | 2,846 | |||||||||
| Depreciation and amortization(1) | 1,623 | 7 | 1,630 | |||||||||
| Other taxes(1) | 361 | 1 | 362 | |||||||||
| Total Operating Expenses | 7,910 | 590 | 8,500 | |||||||||
| Interest and related charges(1) | 957 | **(**6 | ) | 951 | ||||||||
| Income tax expense (benefit)(1) | 514 | **(**66 | ) | 448 | ||||||||
| Other income (expense)(3) | 167 | 63 | 230 | |||||||||
| Interest income(3) | 23 | 2 | 25 | |||||||||
| Noncontrolling Interests**(3)** | 324 | **(**257 | ) | 67 | ||||||||
| Net Income (Loss) Attributable to Virginia Power | 2,326 | **(**225 | ) | 2,101 | ||||||||
| Capital expenditures | 10,544 | — | 10,544 | |||||||||
| Total assets (billions) | 79.2 | — | 79.2 | |||||||||
| Year Ended December 31, 2024 | ||||||||||||
| Operating Revenue | $ | 10,235 | $ | — | $ | 10,235 | ||||||
| Electric fuel and other energy-related purchases(1) | 2,743 | — | 2,743 | |||||||||
| Purchased electric capacity(1) | 68 | — | 68 | |||||||||
| Other operations and maintenance(1)(2) | 2,217 | 312 | 2,529 | |||||||||
| Depreciation and amortization(1) | 1,635 | 9 | 1,644 | |||||||||
| Other taxes(1) | 332 | 1 | 333 | |||||||||
| Total Operating Expenses | 6,995 | 322 | 7,317 | |||||||||
| Interest and related charges(1) | 856 | (7 | ) | 849 | ||||||||
| Income tax expense (benefit)(1) | 446 | (23 | ) | 423 | ||||||||
| Other income (expense)(3) | 100 | 69 | 169 | |||||||||
| Interest income(3) | 23 | 6 | 29 | |||||||||
| Noncontrolling Interests**(3)** | 50 | (103 | ) | (53 | ) | |||||||
| Net Income (Loss) Attributable to Virginia Power | 2,011 | (114 | ) | 1,897 | ||||||||
| Capital expenditures | 9,968 | — | 9,968 | |||||||||
| Total assets (billions) | 68.4 | — | 68.4 | |||||||||
| Year Ended December 31, 2023 | ||||||||||||
| Operating Revenue | $ | 9,573 | $ | — | $ | 9,573 | ||||||
| Electric fuel and other energy-related purchases(1) | 2,918 | — | 2,918 | |||||||||
| Purchased electric capacity(1) | 46 | — | 46 | |||||||||
| Other operations and maintenance(1)(2) | 1,842 | 124 | 1,966 | |||||||||
| Depreciation and amortization(1) | 1,622 | 249 | 1,871 | |||||||||
| Other taxes(1) | 298 | — | 298 | |||||||||
| Total Operating Expenses | 6,726 | 373 | 7,099 | |||||||||
| Interest and related charges(1) | 772 | (7 | ) | 765 | ||||||||
| Income tax expense (benefit)(1) | 473 | (73 | ) | 400 | ||||||||
| Other income (expense)(3) | 65 | 51 | 116 | |||||||||
| Interest income(3) | 17 | — | 17 | |||||||||
| Net Income (Loss) Attributable to Virginia Power | 1,684 | (242 | ) | 1,442 | ||||||||
| Capital expenditures | 7,196 | — | 7,196 |
(1)
The significant expense categories and amounts in the segment information presented above align with the segment-level information that is regularly provided to Virginia Power’s CODM.
(2)
Includes impairment of assets and other charges.
(3)
Items designated are other segment items for each reportable segment.
Combined Notes to Consolidated Financial Statements, Continued
Note 27. Quarterly Financial Data (Unaudited)
A summary of the Companies’ quarterly results of operations for the years ended December 31, 2025 and 2024 is as follows. Amounts reflect all adjustments necessary in the opinion of management for a fair statement of the results for the interim periods. Results for interim periods may fluctuate as a result of weather conditions, changes in rates and other factors.
Dominion Energy
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| (millions, except per share amounts) | ||||||||||||||||
| 2025 | ||||||||||||||||
| Operating revenue | $ | 4,076 | $ | 3,810 | $ | 4,527 | $ | 4,093 | ||||||||
| Income from continuing operations | 1,223 | 1,096 | 1,339 | 756 | ||||||||||||
| Net income from continuing operations including noncontrolling interests | 712 | 813 | 1,028 | 526 | ||||||||||||
| Net income (loss) from discontinued operations including noncontrolling interest | **(**1 | ) | 1 | — | **(**14 | ) | ||||||||||
| Net income including noncontrolling interests | 711 | 814 | 1,028 | 512 | ||||||||||||
| Noncontrolling interests | 46 | 54 | 22 | **(**55 | ) | |||||||||||
| Net income attributable to Dominion Energy | 665 | 760 | 1,006 | 567 | ||||||||||||
| Basic EPS: | ||||||||||||||||
| Net income from continuing operations | 0.77 | 0.88 | 1.17 | 0.66 | ||||||||||||
| Net income (loss) from discontinued operations | — | — | — | **(**0.01 | ) | |||||||||||
| Net income attributable to Dominion Energy | 0.77 | 0.88 | 1.17 | 0.65 | ||||||||||||
| Diluted EPS: | ||||||||||||||||
| Net income from continuing operations | 0.77 | 0.88 | 1.16 | 0.66 | ||||||||||||
| Net income (loss) from discontinued operations | — | — | — | **(**0.01 | ) | |||||||||||
| Net income attributable to Dominion Energy | 0.77 | 0.88 | 1.16 | 0.65 | ||||||||||||
| Dividends declared per preferred share (Series C) | 10.875 | 10.875 | 10.875 | 10.875 | ||||||||||||
| Dividends declared per common share | 0.6675 | 0.6675 | 0.6675 | 0.6675 | ||||||||||||
| 2024 | ||||||||||||||||
| Operating revenue | $ | 3,632 | $ | 3,486 | $ | 3,941 | $ | 3,400 | ||||||||
| Income from continuing operations | 833 | 805 | 1,218 | 391 | ||||||||||||
| Net income from continuing operations including noncontrolling interests | 285 | 466 | 949 | 84 | ||||||||||||
| Net income (loss) from discontinued operations including noncontrolling interest | 118 | 97 | (15 | ) | (3 | ) | ||||||||||
| Net income including noncontrolling interests | 403 | 563 | 934 | 81 | ||||||||||||
| Noncontrolling interests | — | — | — | (53 | ) | |||||||||||
| Net income attributable to Dominion Energy | 403 | 563 | 934 | 134 | ||||||||||||
| Basic EPS: | ||||||||||||||||
| Net income from continuing operations | 0.32 | 0.52 | 1.11 | 0.14 | ||||||||||||
| Net income (loss) from discontinued operations | 0.14 | 0.12 | (0.02 | ) | — | |||||||||||
| Net income attributable to Dominion Energy | 0.46 | 0.64 | 1.09 | 0.14 | ||||||||||||
| Diluted EPS: | ||||||||||||||||
| Net income from continuing operations | 0.32 | 0.52 | 1.11 | 0.14 | ||||||||||||
| Net income (loss) from discontinued operations | 0.14 | 0.12 | (0.02 | ) | — | |||||||||||
| Net income attributable to Dominion Energy | 0.46 | 0.64 | 1.09 | 0.14 | ||||||||||||
| Dividends declared per preferred share (Series B)(1) | 11.625 | 9.922 | 11.625 | 9.688 | ||||||||||||
| Dividends declared per preferred share (Series C) | 10.875 | 10.875 | 10.875 | 10.875 | ||||||||||||
| Dividends declared per common share | 0.6675 | 0.6675 | 0.6675 | 0.6675 |
(1)
See Note 19 for a discussion of repurchases and redemptions during the second and fourth quarters*.*
Dominion Energy’s 2025 results include the impact of the following significant items:
First quarter results include $76 million of after-tax losses related to investments in nuclear decommissioning trust funds.
Second quarter results include $164 million of after-tax gains related to investments in nuclear decommissioning trust funds.
Third quarter results include $168 million of after-tax gains related to investments in nuclear decommissioning trust funds.
Fourth quarter results include a $108 million after-tax charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project and $81 million of after-tax losses related to the mark-to-market impact of economic hedging activities, partially offset by $97 million of after-tax gains from higher market related impacts on pension and other postretirement plans and $79 million of after-tax gains related to investments in nuclear decommissioning trust funds.
Dominion Energy’s 2024 results include the impact of the following significant items:
First quarter results include $238 million of after-tax losses from lower market related impacts on pension and other postretirement plans and a $108 million after-tax loss on the closing of the East Ohio Transaction, partially offset by $164 million of after-tax gains related to investments in nuclear decommissioning trust funds.
Third quarter results include $108 million of after-tax gains related to investments in nuclear decommissioning trust funds and $103 million of after-tax gains related to the mark-to-market impact of economic hedging activities.
Fourth quarter results include $93 million of after-tax losses related to the mark-to-market impact of economic hedging activities and a $77 million after-tax charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project.
Virginia Power
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| (millions) | ||||||||||||||||
| 2025 | ||||||||||||||||
| Operating revenue | $ | 2,765 | $ | 2,712 | $ | 3,311 | $ | 3,024 | ||||||||
| Income from operations | 838 | 875 | 991 | 608 | ||||||||||||
| Net income including noncontrolling interests | 531 | 589 | 690 | 358 | ||||||||||||
| Noncontrolling interests | 46 | 54 | 22 | **(**55 | ) | |||||||||||
| Net income attributable to Virginia Power | 485 | 535 | 668 | 413 | ||||||||||||
| 2024 | ||||||||||||||||
| Operating revenue | $ | 2,489 | $ | 2,537 | $ | 2,762 | $ | 2,447 | ||||||||
| Income from operations | 720 | 762 | 976 | 460 | ||||||||||||
| Net income including noncontrolling interests | 461 | 477 | 650 | 256 | ||||||||||||
| Noncontrolling interests | — | — | — | (53 | ) | |||||||||||
| Net income attributable to Virginia Power | 461 | 477 | 650 | 309 |
Virginia Power’s 2025 results include the impact of the following significant items:
Fourth quarter results include a $108 million after-tax charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project.
Virginia Power’s 2024 results include the impact of the following significant items:
Fourth quarter results include a $77 million after-tax charge for Virginia Power’s share of costs not expected to be recovered from customers on the CVOW Commercial Project.
Combined Notes to Consolidated Financial Statements, Continued
Previous: Item 7A. Quantitative and Qualitative Disclosures About Market Risk · Next: Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure