Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
(millions, except per share amounts)
Operating Revenue	$	3,810		$	3,963		$	10,859		$	10,135
Operating Expenses
Electric fuel and other energy-related purchases		1,049			1,217			3,010			2,625
Purchased electric capacity		19			16			42			45
Purchased gas		40			91			212			331
Other operations and maintenance		848			849			2,365			2,589
Depreciation, depletion and amortization		663			630			1,884			1,832
Other taxes		162			172			517			531
Impairment of assets and other charges (benefits)		(6	)		20			136			425
Losses (gains) on sales of assets		—			(27	)		(23	)		581
Total operating expenses		2,775			2,968			8,143			8,959
Income from operations		1,035			995			2,716			1,176
Other income (expense)		56			61			646			(181	)
Interest and related charges		192			360			1,066			673
Income from continuing operations including noncontrolling interests before income tax expense		899			696			2,296			322
Income tax expense		182			70			432			61
Net Income From Continuing Operations		717			626			1,864			261
Net Income (Loss) From Discontinued Operations(1)		(554	)		152			(105	)		775
Net Income Including Noncontrolling Interests		163			778			1,759			1,036
Noncontrolling Interests		—			—			—			—
Net Income Attributable to Dominion Energy	$	163		$	778		$	1,759		$	1,036
Amounts attributable to Dominion Energy
Net income from continuing operations	$	717		$	626		$	1,864		$	261
Net income (loss) from discontinued operations		(554	)		152			(105	)		775
Net income attributable to Dominion Energy	$	163		$	778		$	1,759		$	1,036
EPS - Basic
Net income from continuing operations	$	0.83		$	0.73		$	2.16		$	0.23
Net income (loss) from discontinued operations		(0.66	)		0.18			(0.13	)		0.95
Net income attributable to Dominion Energy	$	0.17		$	0.91		$	2.03		$	1.18
EPS - Diluted
Net income from continuing operations	$	0.83		$	0.73		$	2.16		$	0.23
Net income (loss) from discontinued operations		(0.66	)		0.18			(0.13	)		0.94
Net income attributable to Dominion Energy	$	0.17		$	0.91		$	2.03		$	1.17

(1)

*Includes income tax expense of $*1.2 *billion and $53 million for the three months ended September 30, 2023 and 2022, respectively, and $*1.3 billion and $185 million for the nine months ended September 30, 2023 and 2022, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
(millions)
Net income including noncontrolling interests	$	163		$	778		$	1,759		$	1,036
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)		19			10			16			64
Changes in unrealized net gains (losses) on investment securities(2)		(22	)		(27	)		(6	)		(116	)
Changes in net unrecognized pension and other postretirement benefit costs(3)		—			—			—			30
Amounts reclassified to net income (loss):
Net derivative (gains) losses-hedging activities(4)		8			12			24			33
Net realized (gains) losses on investment securities(5)		2			1			1			13
Net pension and other postretirement benefit costs (credits)(6)		(8	)		26			(31	)		59
Net earnings from equity method investees(7)		3			—			3			—
Changes in other comprehensive income from equity method investees(8)		(1	)		—			—			1
Total other comprehensive income		1			22			7			84
Comprehensive income including noncontrolling interests		164			800			1,766			1,120
Comprehensive income attributable to noncontrolling interests		—			—			—			—
Comprehensive income attributable to Dominion Energy	$	164		$	800		$	1,766		$	1,120

(1) Net of $**(6) million and $**(4) million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $**(5) million and $**(22) million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(2) *Net of $*6 *million and $*9 *million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $*2 million and $37 million tax for the nine months ended September 30, 2023 and 2022, respectively.

(3) Net of $— million and $— million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $— million and $(8) million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(4) Net of $**(3) million and $**(4) million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $**(8) million and $**(11) million tax for the nine months ended September 30, 2023 and 2022, respectively.

(5) Net of $— million and $(1) million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $— million and $**(5) million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(6) *Net of $*7 million and $**(9) million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $15 million and $**(21) million tax for the nine months ended September 30, 2023 and 2022, respectively.

(7) Net of $**(1) million and $— million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $**(1) million and $— million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(8) Net of $— million and $— million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $— million and $— million tax for the nine months ended September 30, 2023 and 2022, respectively.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30, 2023			December 31, 2022(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	137		$	120
Customer receivables (less allowance for doubtful accounts of $37 and $27)		2,266			2,157
Other receivables (less allowance for doubtful accounts of $1 and $2)		294			383
Inventories		1,633			1,528
Derivative assets		221			1,019
Margin deposit assets		161			480
Regulatory assets		1,484			1,883
Other		437			504
Current assets held for sale		18,046			1,776
Total current assets		24,679			9,850
Investments
Nuclear decommissioning trust funds		6,345			5,957
Investment in equity method affiliates		301			295
Other		326			325
Total investments		6,972			6,577
Property, Plant and Equipment
Property, plant and equipment		80,652			75,178
Accumulated depreciation, depletion and amortization		(24,491	)		(23,352	)
Total property, plant and equipment, net		56,161			51,826
Deferred Charges and Other Assets
Goodwill		4,143			4,143
Regulatory assets		8,266			8,265
Other		5,722			4,780
Total deferred charges and other assets		18,131			17,188
Noncurrent assets held for sale		—			18,802
Total assets	$	105,943		$	104,243

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2022 has been derived from the audited Consolidated Balance Sheet at that date and recast for certain events as discussed in Note 1.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)


	September 30, 2023			December 31, 2022(1)
(millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Securities due within one year	$	4,147		$	3,337
Supplemental credit facility borrowings		900			—
Short-term debt		3,785			3,423
Accounts payable		756			1,165
Accrued interest, payroll and taxes		1,168			910
Derivative liabilities		457			772
Regulatory liabilities		434			748
Other(2)		1,655			1,697
Current liabilities held for sale		8,331			1,398
Total current liabilities		21,633			13,450
Long-Term Debt
Long-term debt		32,145			32,515
Junior subordinated notes		688			1,387
Supplemental credit facility borrowings		—			450
Other		224			232
Total long-term debt		33,057			34,584
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		6,834			5,397
Regulatory liabilities		8,736			8,417
Other		7,655			6,963
Total deferred credits and other liabilities		23,225			20,777
Noncurrent liabilities held for sale		—			7,551
Total liabilities		77,915			76,362
Commitments and Contingencies (see Note 17)
Shareholders' Equity
Preferred stock (see Note 16)		1,783			1,783
Common stock – no par(3)		23,720			23,605
Retained earnings		4,090			4,065
Accumulated other comprehensive loss		(1,565	)		(1,572	)
Shareholders' equity		28,028			27,881
Noncontrolling interests		—			—
Total shareholders' equity		28,028			27,881
Total liabilities and shareholders' equity	$	105,943		$	104,243

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2022 has been derived from the audited Consolidated Balance Sheet at that date and recast for certain events as discussed in Note 1.

(2) See Note 10 for amounts attributable to related parties.

(3) 1.8 billion shares authorized; 837 million and 835 million shares outstanding at September 30, 2023 and December 31, 2022*, respectively.*

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

QUARTER-TO-DATE


	Preferred Stock				Common Stock				Dominion Energy Shareholders
	Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Total Shareholders' Equity			Noncontrolling Interests		Total Equity
(millions, except per share amounts)
June 30, 2022		2	$	1,783		832	$	23,427	$	4,483		$	(1,396	)	$	28,297		$	—	$	28,297
Net income including noncontrolling interests										778						778			—		778
Issuance of stock						1		44								44					44
Stock awards (net of change in unearned compensation)								9								9					9
Preferred stock dividends (see Note 16)										(20	)					(20	)				(20	)
Common stock dividends ($0.6675 per share) and distributions										(557	)					(557	)		—		(557	)
Other comprehensive income, net of tax													22			22					22
September 30, 2022		2	$	1,783		833	$	23,480	$	4,684		$	(1,374	)	$	28,573		$	—	$	28,573


June 30, 2023		2	$	1,783		837	$	23,704	$	4,507		$	(1,566	)	$	28,428		$	—	$	28,428
Net income including noncontrolling interests										163						163			—		163
Issuance of stock						—		6								6					6
Stock awards (net of change in unearned compensation)								10								10					10
Preferred stock dividends (see Note 16)										(20	)					(20	)				(20	)
Common stock dividends ($0.6675 per share) and distributions										(559	)					(559	)		—		(559	)
Other comprehensive income, net of tax													1			1					1
Other										(1	)					(1	)				(1	)
September 30, 2023		2	$	1,783		837	$	23,720	$	4,090		$	(1,565	)	$	28,028		$	—	$	28,028

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

YEAR-TO-DATE


	Preferred Stock				Common Stock				Dominion Energy Shareholders
	Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Total Shareholders' Equity			Noncontrolling Interests		Total Equity
(millions, except per share amounts)
December 31, 2021		2	$	1,783		810	$	21,610	$	5,373		$	(1,458	)	$	27,308		$	—	$	27,308
Net income including noncontrolling interests										1,036						1,036			—		1,036
Issuance of stock						23		1,847								1,847					1,847
Stock awards (net of change in unearned compensation)								23								23					23
Preferred stock dividends (see Note 16)										(72	)					(72	)				(72	)
Common stock dividends ($2.0025 per common share) and distributions										(1,653	)					(1,653	)		—		(1,653	)
Other comprehensive income, net of tax													84			84					84
September 30, 2022		2	$	1,783		833	$	23,480	$	4,684		$	(1,374	)	$	28,573		$	—	$	28,573


December 31, 2022		2	$	1,783		835	$	23,605	$	4,065		$	(1,572	)	$	27,881		$	—	$	27,881
Net income including noncontrolling interests										1,759						1,759			—		1,759
Issuance of stock						2		91								91					91
Stock awards (net of change in unearned compensation)								24								24					24
Preferred stock dividends (see Note 16)										(60	)					(60	)				(60	)
Common stock dividends ($2.0025 per common share) and distributions										(1,674	)					(1,674	)		—		(1,674	)
Other comprehensive income, net of tax													7			7					7
September 30, 2023		2	$	1,783		837	$	23,720	$	4,090		$	(1,565	)	$	28,028		$	—	$	28,028

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Nine Months Ended September 30,	2023			2022
(millions)
Operating Activities
Net income including noncontrolling interests	$	1,759		$	1,036
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization (including nuclear fuel)		2,360			2,334
Deferred income taxes and investment tax credits		1,379			269
Impairment of assets and other charges		169			394
Losses (gains) on sales of assets and equity method investments (including Cove Point)		(657	)		601
Net (gains) losses on nuclear decommissioning trust funds and other investments		(228	)		658
Other adjustments		106			(85	)
Changes in:
Accounts receivable		516			(56	)
Inventories		(148	)		(206	)
Deferred fuel and purchased gas costs, net		635			(1,525	)
Prepayments		45			(103	)
Accounts payable		(812	)		(54	)
Accrued interest, payroll and taxes		208			28
Margin deposit assets and liabilities		318			(152	)
Net realized and unrealized changes related to derivative activities		180			114
Pension and other postretirement benefits		(357	)		(344	)
Other operating assets and liabilities		(287	)		(238	)
Net cash provided by operating activities		5,186			2,671
Investing Activities
Plant construction and other property additions (including nuclear fuel)		(7,166	)		(5,251	)
Acquisition of solar development projects		(14	)		(139	)
Proceeds from sale of noncontrolling interest in Cove Point		3,293			—
Proceeds from sale of Hope		—			722
Proceeds from sales of securities		2,007			2,686
Purchases of securities		(2,182	)		(2,479	)
Proceeds from sale of assets and equity method investments		32			146
Contributions to equity method affiliates		(79	)		(34	)
Short-term deposit		—			(2,000	)
Return of short-term deposit		—			2,000
Other		18			(170	)
Net cash used in investing activities		(4,091	)		(4,519	)
Financing Activities
Issuance of short-term debt, net		362			629
364-day term loan facility borrowings		3,475			—
Repayment of 364-day term loan facility borrowings		(750	)		—
Issuance and remarketing of long-term debt		2,660			3,588
Repayment and repurchase of long-term debt		(5,673	)		(1,213	)
Supplemental credit facility borrowings		900			900
Repayment of supplemental credit facility borrowings		(450	)		(450	)
Series A Preferred Stock redemption		—			(1,610	)
Issuance of common stock		91			1,744
Common dividend payments		(1,674	)		(1,653	)
Other		(130	)		(155	)
Net cash provided by (used in) financing activities		(1,189	)		1,780
Decrease in cash, restricted cash and equivalents		(94	)		(68	)
Cash, restricted cash and equivalents at beginning of period		341			408
Cash, restricted cash and equivalents at end of period	$	247		$	340

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Dominion Energy’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STAT****EMENTS OF INCOME

(Unaudited)


	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023		2022
(millions)
Operating Revenue(1)	$	2,645		$	2,875	$	7,280	$	7,217
Operating Expenses
Electric fuel and other energy-related purchases(1)		736			981		2,241		2,030
Purchased electric capacity		15			11		33		33
Other operations and maintenance:
Affiliated suppliers		98			81		290		256
Other		434			450		1,126		1,323
Depreciation and amortization		488			451		1,367		1,305
Other taxes		71			80		223		238
Impairment of assets and other charges (benefits)		(15	)		19		30		432
Total operating expenses		1,827			2,073		5,310		5,617
Income from operations		818			802		1,970		1,600
Other income (expense)		(1	)		3		83		(37	)
Interest and related charges(1)		215			168		578		461
Income before income tax expense		602			637		1,475		1,102
Income tax expense		129			66		317		127
Net Income	$	473		$	571	$	1,158	$	975

(1)

See Note 19 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

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023		2022
(millions)
Net income	$	473		$	571		$	1,158	$	975
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)		18			13			15		57
Changes in unrealized net gains (losses) on investment securities(2)		(3	)		(4	)		—		(14	)
Amounts reclassified to net income:
Net derivative (gains) losses-hedging activities(3)		—			—			—		1
Net realized (gains) losses on investment securities(4)		—			—			—		(1	)
Total other comprehensive income (loss)		15			9			15		43
Comprehensive income	$	488		$	580		$	1,173	$	1,018

(1)

Net of $**(7) million and $**(5) million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $**(6) million and $**(20) million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(2)

Net of $**— million and $— million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $— million and $4 million tax for the nine months ended September 30, 2023 and 2022, respectively.

(3)

Net of $**(1) million and $**(1) millio**n tax for the three months ended September 30, 2023 and 2022, respectively, and net of $**(1) million and $**(1) million tax for the nine months ended September 30, 2023 and 2022*, respectively.*

(4)

Net of $— million and $— million tax for the three months ended September 30, 2023 and 2022, respectively, and net of $— million and $— million tax for the nine months ended September 30, 2023 and 2022, respectively.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED B****ALANCE SHEETS

(Unaudited)


	September 30, 2023			December 31, 2022(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	37		$	22
Customer receivables (less allowance for doubtful accounts of $30 and $21)		1,743			1,578
Other receivables (less allowance for doubtful accounts of $1 and $2)		169			204
Affiliated receivables		72			7
Inventories (average cost method)		1,019			924
Margin deposit assets		24			310
Derivative assets(2)		55			765
Regulatory assets		921			1,140
Other		109			52
Total current assets		4,149			5,002
Investments
Nuclear decommissioning trust funds		3,400			3,202
Other		3			3
Total investments		3,403			3,205
Property, Plant and Equipment
Property, plant and equipment		59,124			54,697
Accumulated depreciation and amortization		(17,079	)		(16,218	)
Total property, plant and equipment, net		42,045			38,479
Deferred Charges and Other Assets
Regulatory assets		4,369			4,247
Other(2)		2,896			2,261
Total deferred charges and other assets		7,265			6,508
Total assets	$	56,862		$	53,194

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, 2022 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 19 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 BALANCE SHEETS—(Continued)

(Unaudited)


	September 30, 2023		December 31, 2022(1)
(millions)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Securities due within one year	$	380	$	1,164
Short-term debt		942		941
Accounts payable		508		600
Payables to affiliates		95		255
Affiliated current borrowings		1,794		2,024
Accrued interest, payroll and taxes		438		270
Regulatory liabilities		226		506
Derivative liabilities(2)		310		298
Other		1,213		1,176
Total current liabilities		5,906		7,234
Long-Term Debt
Long-term debt		17,041		14,916
Other		69		65
Total long-term debt		17,110		14,981
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		3,952		3,452
Regulatory liabilities		5,973		5,499
Other(2)		5,503		4,783
Total deferred credits and other liabilities		15,428		13,734
Total liabilities		38,444		35,949
Commitments and Contingencies (see Note 17)
Common Shareholder’s Equity
Common stock – no par(3)		5,738		5,738
Other paid-in capital		1,113		1,113
Retained earnings		11,543		10,385
Accumulated other comprehensive income		24		9
Total common shareholder’s equity		18,418		17,245
Total liabilities and shareholder’s equity	$	56,862	$	53,194

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, 2022 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 19 for amounts attributable to affiliates.

(3)

500,000 shares authorized; 274,723 shares outstanding at September 30, 2023 and December 31, 2022*.*

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY

(Unaudited)

QUARTER-TO-DATE


	Common Stock
	Shares		Amount		Other Paid-In Capital		Retained Earnings		AOCI			Total
(millions, except for shares)	(thousands)
June 30, 2022		275	$	5,738	$	1,113	$	9,574	$	(7	)	$	16,418
Net income								571					571
Other comprehensive income, net of tax										9			9
September 30, 2022		275	$	5,738	$	1,113	$	10,145	$	2		$	16,998

June 30, 2023		275	$	5,738	$	1,113	$	11,070	$	9		$	17,930
Net income								473					473
Other comprehensive income, net of tax										15			15
September 30, 2023		275	$	5,738	$	1,113	$	11,543	$	24		$	18,418

YEAR-TO-DATE


	Common Stock
	Shares		Amount		Other Paid-In Capital		Retained Earnings		AOCI			Total
(millions, except for shares)	(thousands)
December 31, 2021		275	$	5,738	$	1,113	$	9,170	$	(41	)	$	15,980
Net income								975					975
Other comprehensive income, net of tax										43			43
September 30, 2022		275	$	5,738	$	1,113	$	10,145	$	2		$	16,998

December 31, 2022		275	$	5,738	$	1,113	$	10,385	$	9		$	17,245
Net income								1,158					1,158
Other comprehensive income, net of tax										15			15
September 30, 2023		275	$	5,738	$	1,113	$	11,543	$	24		$	18,418

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEM****ENTS OF CASH FLOWS

(Unaudited)


Nine Months Ended September 30,	2023			2022
(millions)
Operating Activities
Net income	$	1,158		$	975
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including nuclear fuel)		1,486			1,428
Deferred income taxes and investment tax credits		449			183
Impairment of assets and other charges		44			403
Net (gains) losses on nuclear decommissioning trust funds and other investments		(31	)		89
Other adjustments		15			(46	)
Changes in:
Accounts receivable		(41	)		(351	)
Affiliated receivables and payables		(225	)		1
Inventories		(98	)		(34	)
Prepayments		(32	)		(4	)
Deferred fuel expenses, net		487			(1,207	)
Accounts payable		(80	)		90
Accrued interest, payroll and taxes		168			134
Margin deposit assets and liabilities		286			(331	)
Net realized and unrealized changes related to derivative activities		541			88
Other operating assets and liabilities		(87	)		(24	)
Net cash provided by operating activities		4,040			1,394
Investing Activities
Plant construction and other property additions		(4,871	)		(3,322	)
Purchases of nuclear fuel		(128	)		(169	)
Acquisition of solar development projects		(14	)		(51	)
Proceeds from sales of securities		1,254			1,289
Purchases of securities		(1,363	)		(1,334	)
Other		34			(10	)
Net cash used in investing activities		(5,088	)		(3,597	)
Financing Activities
Issuance of short-term debt, net		1			264
Issuance (repayment) of affiliated current borrowings, net		(230	)		85
Issuance and remarketing of long-term debt		2,660			2,338
Repayment and repurchase of long-term debt		(1,308	)		(438	)
Other		(62	)		(52	)
Net cash provided by financing activities		1,061			2,197
Increase (decrease) in cash, restricted cash and equivalents		13			(6	)
Cash, restricted cash and equivalents at beginning of period		24			26
Cash, restricted cash and equivalents at end of period	$	37		$	20

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

(Unaudited)

Note 1. Nature of Operations

Dominion Energy, headquartered in Richmond, Virginia, is one of the nation’s largest producers and distributors of energy. Dominion Energy’s operations are conducted through various subsidiaries, including Virginia Power. Dominion Energy’s operations also include DESC, regulated gas distribution operations primarily in the eastern and Rocky Mountain regions of the U.S. and nonregulated electric generation.

In connection with the comprehensive business review announced in November 2022, Dominion Energy entered into agreements in September 2023 to sell all of its regulated gas distribution operations, except for DESC’s, to Enbridge. In addition, Dominion Energy completed the sale in September 2023 of its remaining 50% noncontrolling partnership interest in Cove Point to BHE under the agreement entered in July 2023. As discussed in Notes 3 and 10, these operations are classified as discontinued operations and held for sale in Dominion Energy’s Consolidated Financial Statements. Subsequently in September 2023, Dominion Energy revised its primary operating segments as discussed in Note 21. Dominion Energy’s Consolidated Financial Statements and Notes have been recast to reflect these changes in presentation.

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at September 30, 2023, their results of operations and changes in equity for the three and nine months ended September 30, 2023 and 2022 and their cash flows for the nine months ended September 30, 2023 and 2022. Such adjustments are normal and recurring in nature unless otherwise noted.

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 and expenses for the periods presented. Actual results may differ from those estimates.

The Companies’ accompanying unaudited 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.

The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors.

Certain amounts in the Companies’ 2022 Consolidated Financial Statements and Notes have been reclassified to conform to the 2023 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. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, with the exception of the items described below.

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

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 nine months ended September 30, 2023 and 2022:


	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	September 30, 2023		September 30, 2022		December 31, 2022		December 31, 2021
(millions)
Dominion Energy
Cash and cash equivalents(1)	$	176	$	163	$	153	$	283
Restricted cash and equivalents(2)		71		177		188		125
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	247	$	340	$	341	$	408
Virginia Power
Cash and cash equivalents	$	37	$	18	$	22	$	26
Restricted cash and equivalents(3)		—		2		2		—
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	37	$	20	$	24	$	26

(1)

*At September 30, 2023, September 30, 2022, December 31, 2022 and December 31, 2021, Dominion Energy had $*39 *million, $*25 *million, $*34 *million and $*34 million, respectively, of cash and cash equivalents included in current assets held for sale.

(2)

*At September 30, 2023, September 30, 2022, December 31, 2022 and December 31, 2021, Dominion Energy had $*4 *million, $*2 *million, $*2 *million and less than $*1 million, respectively, of restricted cash and equivalents included in current assets held for sale with the remaining balances presented within other current assets in Dominion Energy’s Consolidated Balance Sheets.

(3)

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:


Nine Months Ended September 30,	2023		2022
(millions)
Significant noncash investing and financing activities:(1)
Accrued capital expenditures	$	884	$	745
Leases(2)		294		129

(1)

See Note 10 for noncash investing activities related to the acquisition of a noncontrolling interest in Dominion Privatization, Note 16 for noncash financing activities related to the remarketing of Series A Preferred Stock and the issuance of common stock associated with the settlement of litigation and Note 17 for noncash financing activities related to the transfer of property associated with the settlement of litigation.

(2)

*Includes $*51 *million and $29 million of financing leases at September 30, 2023 and 2022, respectively, and $*243 million and $100 million of operating leases at September 30, 2023 and 2022, respectively.

The following table provides supplemental disclosure of cash flow information related to Virginia Power:


Nine Months Ended September 30,	2023		2022
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	646	$	454
Leases(1)		253		113

(1)

*Includes $*44 *million and $20 million of financing leases at September 30, 2023 and 2022, respectively, and $*209 million and $93 million of operating leases at September 30, 2023 and 2022, respectively.

Asset Retirement Obligations

In the third quarter of 2023, Virginia Power revised its estimated cash flow projections associated with future landfill closure costs at certain utility generation facilities. As a result, Virginia Power recorded an increase to its AROs of $510 million with a corresponding increase of $444 million to regulatory assets for amounts recoverable through riders and $66 million to other deferred charges and other assets for amounts associated with nonjurisdictional customers.

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 includes the sale of East Ohio and is 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 purchase price will be subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. Closing of the East Ohio Transaction is not conditioned upon the closing of the PSNC or Questar Gas Transactions. The sale will be treated as a stock sale for tax purposes and is expected to close in 2024, subject to clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS and FCC as well as other customary closing and regulatory conditions. In November 2023, the waiting period under the Hart-Scott-Rodino Act expired. Also in November 2023, Dominion Energy submitted its initial filing request for approval by CFIUS. In October 2023, as required under the sale agreement, Dominion Energy filed a notice with the Ohio Commission. The proposed internal reorganization in connection with the East Ohio Transaction is subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 and received approval from the Utah Commission in November 2023.

Upon closing, Dominion Energy will retain 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. The East Ohio Transaction is subject to termination by either party if not completed by September 2024, subject to a potential three-month extension for receipt of regulatory approvals, with a termination fee of $155 million due to Dominion Energy under certain conditions. Based on the recorded balances at September 30, 2023, Dominion Energy expects to recognize a pre-tax gain of approximately $20 million ($20 million after-tax loss) upon closing, including the write-off of $1.5 billion of goodwill which is not deductible for tax purposes but excluding the effects of final closing adjustments. In the third quarter of 2023, Dominion Energy recorded a charge of $30 million to reflect the recognition of deferred taxes on the outside basis of East Ohio’s stock upon meeting the classification as held for sale. These deferred taxes will reverse upon closing of the sale and become a component of current income tax expense on the gain on sale disclosed above. See Note 5 for additional information.

At the closing of the East Ohio Transaction, Dominion Energy and Enbridge will enter 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 includes the sale of PSNC and is valued at approximately $3.1 billion, consisting of a purchase price of approximately $2.2 billion in cash and approximately $1.0 billion of assumed indebtedness. The purchase price will be subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. Closing of the PSNC Transaction is not conditioned upon the closing of the East Ohio or Questar Gas Transactions. The sale will be treated as a stock sale for tax purposes and is expected to close in 2024, subject to clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and North Carolina Commission as well as other customary closing and regulatory conditions. In November 2023, the waiting period under the Hart-Scott-Rodino Act expired. Also in November 2023, Dominion Energy submitted its initial filing request for approval by CFIUS. In October 2023, Dominion Energy filed for approval from the North Carolina Commission. The proposed internal reorganization in connection with the PSNC Transaction is subject to approval by the North Carolina Commission. Dominion Energy filed for such approval in September 2023.

Upon closing, Dominion Energy will retain 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. The PSNC Transaction is subject to termination by either party if not completed by September 2024, subject to a potential three-month extension for receipt of regulatory approvals, with a termination fee of $78 million due to Dominion Energy under certain conditions. Based on the recorded balances at September 30, 2023, Dominion Energy expects to recognize a pre-tax gain of approximately $130 million ($290 million after-tax loss) upon closing, including the write-off of $0.7 billion of goodwill which is not deductible for tax purposes but excluding the effects of final closing adjustments. In the third quarter

of 2023, Dominion Energy recorded a charge of $385 million to reflect the recognition of deferred taxes on the outside basis of PSNC’s stock upon meeting the classification as held for sale. These deferred taxes will reverse upon closing of the sale and become a component of current income tax expense on the gain on sale disclosed above. See Note 5 for additional information.

At the closing of the PSNC Transaction, Dominion Energy and Enbridge will enter 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 includes the sale of Questar Gas, Wexpro and related affiliates and is 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 purchase price will be subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. Closing of the Questar Gas Transaction is not conditioned upon the closing of the East Ohio or PSNC Transactions. The sale will be treated as a stock sale for tax purposes and is expected to close in 2024, subject to clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and Utah and Wyoming Commissions as well as other customary closing and regulatory conditions. In November 2023, the waiting period under the Hart-Scott-Rodino Act expired. Also in November 2023, Dominion Energy submitted its initial filing request for approval by CFIUS. In October 2023, Dominion Energy filed for approvals from the Utah and Wyoming Commissions. In October 2023, Dominion Energy filed the notice with the Idaho Commission required for closing of the Questar Gas Transaction. The proposed internal reorganization in connection with the Questar Gas Transaction is subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 and received approval from the Utah Commission in November 2023.

Upon closing, Dominion Energy will retain 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. The Questar Gas Transaction is subject to termination by either party if not completed by September 2024, subject to a potential three-month extension for receipt of regulatory approvals, with a termination fee of $107 million due to Dominion Energy under certain conditions. Based on the recorded balances at September 30, 2023, Dominion Energy expects to recognize a pre-tax loss of approximately $10 million ($530 million after-tax loss) upon closing, including the write-off of $1.0 billion of goodwill which is not deductible for tax purposes but excluding the effects of final closing adjustments. In the third quarter of 2023, Dominion Energy recorded a charge of $524 million to reflect the recognition of 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 will reverse upon closing of the sale and become a component of current income tax expense on the gain on sale disclosed above. See Note 5 for additional information.

At the closing of the Questar Gas Transaction, Dominion Energy and Enbridge will enter 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 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. In connection with closing, Dominion Energy recorded a loss of $1 million ($1 million after-tax). Dominion Energy recorded an impairment associated with these operations in the second quarter of 2023 as discussed in Note 8.

Financial Statement Information

The operations included in each of the East Ohio, PSNC and Questar Gas Transactions are presented as held for sale and discontinued operations within the Corporate and Other segment effective September 2023. In addition, operations associated with the other sales related to the comprehensive business review are also presented as discontinued operations within the Corporate and Other segment

effective September 2023. As a result, the previously reported amounts have been recast to reflect this presentation and depreciation and amortization ceased on the applicable assets.

The following table represents selected information for each disposal group regarding the results of operations reported within discontinued operations in Dominion Energy's Consolidated Statements of Income:


	Three Months Ended September 30, 2023												Nine Months Ended September 30, 2023
		East Ohio Transaction		PSNC Transaction			Questar Gas Transaction			Other			East Ohio Transaction		PSNC Transaction			Questar Gas Transaction			Other
(millions)
Operating revenue		$	214	$	86		$	150		$	2		$	761	$	532		$	1,151		$	5
Operating expense(1)			128		80			127			7			497		386			939			29
Other income (expense)			7		3			3			—			22		8			6			—
Interest and related charges			19		13			17			—			51		38			50			1
Income (loss) before income taxes			74		(4	)		9			(5	)		235		116			168			(25	)
Income tax expense (benefit)(2)			39		383			525			(2	)		58		409			557			(7	)
Net income (loss) attributable to Dominion Energy(3)		$	35	$	(387	)	$	(516	)	$	(3	)	$	177	$	(293	)	$	(389	)	$	(18	)

(1)

*Other includes a charge of $*15 *million ($*11 million after-tax) recorded in the second quarter of 2023 associated with the impairment of certain nonregulated solar assets.

(2)

Includes amounts recorded in the third quarter of 2023 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 $*6 *million and $*2 million of income tax expense attributable to consolidated state and interim period tax allocation adjustments for the three and nine months ended September 30, 2023, respectively.


	Three Months Ended September 30, 2022												Nine Months Ended September 30, 2022
		East Ohio Transaction		PSNC Transaction			Questar Gas Transaction			Other			East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other
(millions)
Operating revenue		$	206	$	93		$	114		$	—		$	738	$	539	$	846	$	3
Operating expense			140		94			100			1			503		406		658		4
Other income (expense)			7		3			—			—			21		6		—		—
Interest and related charges			12		11			11			—			21		30		31		—
Income (loss) before income taxes			61		(9	)		3			(1	)		235		109		157		(1	)
Income tax expense (benefit)			5		(2	)		(2	)		—			29		23		29		—
Net income (loss) attributable to Dominion Energy(1)		$	56	$	(7	)	$	5		$	(1	)	$	206	$	86	$	128	$	(1	)

(1)

*Excludes $*20 *million and $*7 million of income tax expense attributable to consolidated state and interim period tax allocation adjustments for the three and nine months ended September 30, 2022, respectively.

The carrying amount of major classes of assets and liabilities relating to the disposal groups, which are reported as held for sale in Dominion Energy's Consolidated Balance Sheets were as follows:


	At September 30, 2023(1)											At December 31, 2022
	East Ohio Transaction			PSNC Transaction			Questar Gas Transaction			Other		East Ohio Transaction			PSNC Transaction			Questar Gas Transaction			Other
(millions)
Current assets(2)		$	358		$	240		$	680	$	—		$	544		$	381		$	803	$	1
Property, plant and equipment, net			5,301			2,705			4,206		—			5,012			2,591			3,984		47
Other deferred charges and other assets, including goodwill(3) and intangible assets			2,651			819			1,000		—			2,629			822			1,043		—
Current liabilities(4)			384			145			233		—			634			151			612		1
Long-term debt			2,286			798			1,245		—			2,287			798			1,245		—
Other deferred credits and liabilities(5)			1,427			692			1,120		—			1,435			689			1,087		9

(1)

All amounts at September 30, 2023 are classified as current in Dominion Energy's Consolidated Balance Sheets.

(2)

*Includes cash and cash equivalents of $*4 *million and $*6 *million within the East Ohio Transaction, less than $*1 *million and less than $*1 *million within the PSNC Transaction and $*35 *million and $*28 *million within the Questar Gas Transaction at September 30, 2023 and December 31, 2022, respectively. Also includes regulatory assets of $*83 *million and $*90 *million within the East Ohio Transaction, $*114 *million and $*95 *million within the PSNC Transaction and $*423 *million and $*273 million within the Questar Gas Transaction at September 30, 2023 and December 31, 2022, respectively.

(3)

*Includes goodwill of $*1.5 *billion, $*673 *million and $*983 *million at both September 30, 2023 and December 31, 2022 within the East Ohio Transaction, PSNC Transaction and Questar Gas Transaction, respectively. Also includes regulatory assets of $*725 *million and $*751 *million within the East Ohio Transaction, $*88 *million and $*93 million within the PSNC Transaction and $(34) million and $(22) million within the Questar Gas Transaction at September 30, 2023 and December 31, 2022, respectively.

(4)

*Includes regulatory liabilities of $*54 *million and $*43 *million within the East Ohio Transaction, $*42 *million and $*11 *million within the PSNC Transaction and $*48 *million and $*144 million within the Questar Gas Transaction at September 30, 2023 and December 31, 2022, respectively.

(5)

*Includes regulatory liabilities of $*725 *million and $*749 *million within the East Ohio Transaction, $*441 *million and $*436 *million within the PSNC Transaction and $*510 *million and $*506 million within the Questar Gas Transaction at September 30, 2023 and December 31, 2022, respectively.

Capital expenditures and significant noncash items relating to the disposal groups included the following:


	Nine Months Ended September 30, 2023									Nine Months Ended September 30, 2022
		East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other		East Ohio Transaction		PSNC Transaction		Questar Gas Transaction		Other
(millions)
Capital expenditures		$	355	$	153	$	290	$	—	$	299	$	113	$	324	$	—
Significant noncash items
Depreciation, depletion and amortization			109		67		130		2		99		65		121		3
Accrued capital expenditures			53		22		33		—		42		14		49		—

Disposition of Gas Transmission & Storage Operations

In December 2021, Dominion Energy completed the sale of the Q-Pipe Group to Southwest Gas, as discussed in Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. In the first quarter of 2022, Dominion Energy recognized a gain of $27 million ($20 million after-tax) in discontinued operations in its Consolidated Statements of Income associated with finalization of working capital adjustments.

Sale of Hope

In February 2022, Dominion Energy entered into an agreement to sell 100% of the equity interests in Hope to Ullico for $690 million of cash consideration, subject to customary closing adjustments, which closed in August 2022 after all customary closing and regulatory conditions were satisfied, including clearance under the Hart-Scott-Rodino Act and approval from the West Virginia Commission. The sale is treated as a stock sale for tax purposes.

Upon closing, Dominion Energy recognized a pre-tax gain of $8 million, subject to customary closing adjustments, (net of $110 million write-off of goodwill which was not deductible for tax purposes) in losses (gains) on sales of assets in its Consolidated Statements of Income. The transaction resulted in an after-tax loss of $89 million. Upon meeting the classification as held for sale in the first quarter of 2022 and through the second quarter of 2022, Dominion Energy had recorded charges of $90 million in deferred income tax expense in its Consolidated Statements of Income to reflect the recognition of deferred taxes on the outside basis of Hope’s stock. This deferred income tax expense reversed upon closing of the sale and became a component of current income tax expense on the sale disclosed above. See Note 5 for additional information. In addition, a curtailment was recorded related to other postretirement benefit plans as discussed in Note 20.

All activity related to Hope is, effective September 2023, included in the Corporate and Other segment.

Sale of Kewaunee

In May 2021, Dominion Energy entered into an agreement to sell 100% of the equity interests in Dominion Energy Kewaunee, Inc. to EnergySolutions, including the transfer of all decommissioning obligations associated with Kewaunee, which ceased operations in 2013. The sale closed in June 2022 following approval from the Wisconsin Commission in May 2022 and NRC approval of a requested license transfer in March 2022. The sale was treated as an asset sale for tax purposes and Dominion Energy retained the assets and obligations of the pension and other postretirement employee benefit plans. EnergySolutions is subject to the Wisconsin regulatory conditions agreed to by Dominion Energy upon its acquisition of Kewaunee, including the return of any excess decommissioning funds to WPSC and WP&L customers following completion of all decommissioning activities.

In the second quarter of 2022, Dominion Energy recorded a loss of $649 million ($513 million after-tax), recorded in losses (gains) on sales of assets in its Consolidated Statements of Income, primarily related to the difference between the nuclear decommissioning trust

and AROs. Prior to its receipt, there had been uncertainty as to the timing of or ability to obtain approval from the Wisconsin Commission. Prior to closing, Dominion Energy withdrew $80 million from the nuclear decommissioning trust to recover certain spent nuclear fuel and other permitted costs.

All activity related to Kewaunee prior to closing is included in Contracted Energy.

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:


	Dominion Energy										Virginia Power
	Quarter-to-Date					Year-to-Date					Quarter-to-Date					Year-to-Date
Period Ended September 30,	2023		2022			2023		2022			2023		2022			2023		2022
(millions)
Regulated electric sales:
Residential	$	1,558	$	1,609		$	3,968	$	4,013		$	1,133	$	1,238		$	2,975	$	3,069
Commercial		1,236		1,349			3,453		3,336			962		1,105			2,745		2,696
Industrial		227		253			658		670			109		134			324		347
Government and other retail		288		353			764		922			269		335			711		874
Wholesale		53		66			133		181			37		38			88		101
Nonregulated electric sales		229		345			611		948			22		17			55		62
Regulated gas sales:
Residential		28		32			207		247
Commercial		25		36			106		141
Other		19		55			58		132
Regulated gas transportation and storage		4		11			13		35
Other regulated revenues		61		68			204		208			57		64			193		195
Other nonregulated revenues(1)(2)		30		59			115		134			9		28			42		50
Total operating revenue from contracts with customers		3,758		4,236			10,290		10,967			2,598		2,959			7,133		7,394
Other revenues(1)(3)		52		(273	)		569		(832	)		47		(84	)		147		(177	)
Total operating revenue	$	3,810	$	3,963		$	10,859	$	10,135		$	2,645	$	2,875		$	7,280	$	7,217

(1)

See Note 19 for amounts attributable to affiliates.

(2)

*Includes sales of renewable energy credits were $*7 *million and $*21 *million for the three months ended September 30, 2023 and 2022, respectively, and $*36 *million and $*32 *million for the nine months ended September 30, 2023 and 2022, respectively, at Dominion Energy and $*2 *million and $*13 *million for the three months ended September 30, 2023 and 2022, respectively, and $*24 *million and $*13 million for the nine months ended September 30, 2023 and 2022, respectively, at Virginia Power.

(3)

*Includes alternative revenue of $*34 *million and $*20 *million for the three months ended September 30, 2023 and 2022, respectively, and $*111 *million and $*47 million for the nine months ended September 30, 2023 and 2022, respectively, at both Dominion Energy and Virginia Power.

Neither Dominion Energy nor Virginia Power have any amounts for revenue to be recognized in the future on multi-year contracts in place at September 30, 2023.

At September 30, 2023 and December 31, 2022, Dominion Energy’s contract liability balances were $81 million and $51 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets. At September 30, 2023 and December 31, 2022, Virginia Power’s contract liability balances were $74 million and $39 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the nine months ended September 30, 2023 and 2022, Dominion Energy recognized revenue of $48 million and $39 million, respectively, from the beginning contract liability balances. During the nine months ended September 30, 2023 and 2022, Virginia Power recognized $39 million and $33 million, respectively, from the beginning contract liability balances.

Note 5. Income Taxes

For continuing operations, including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:


	Dominion Energy						Virginia Power
Nine Months Ended September 30,	2023			2022			2023			2022
U.S. statutory rate		21.0	%		21.0	%		21.0	%		21.0	%
Increases (reductions) resulting from:
Recognition of taxes - sale of subsidiary stock		—			28.4
State taxes, net of federal benefit		3.9			13.1			4.6			4.4
Investment tax credits		(3.2	)		(23.6	)		(0.3	)		(8.9	)
Production tax credits		(0.6	)		(2.6	)		(0.9	)		(1.0	)
Reversal of excess deferred income taxes		(2.6	)		(15.6	)		(2.6	)		(3.7	)
Changes in state deferred taxes associated with assets held for sale		1.3			1.6
AFUDC - equity		(0.1	)		(1.6	)		—			(0.8	)
Other, net		(0.9	)		(1.6	)		(0.3	)		0.5
Effective tax rate		18.8	%		19.1	%		21.5	%		11.5	%

Dominion Energy’s effective tax rate for the nine months ended September 30, 2023 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 10, respectively.

In the first quarter of 2022, Dominion Energy entered into an agreement to sell 100% of the equity interests in Hope in a stock sale for income tax purposes. As of June 30, 2022, Dominion had established $90 million of deferred tax liabilities reflecting the excess of the financial reporting basis over the tax basis in Hope’s stock. These deferred taxes reversed upon closing of the sale in August 2022 and became a component of current income tax expense on the sale. See Note 3 to the Consolidated Financial Statements in Dominion Energy's Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding the sale of Hope.

As discussed in Note 3, Dominion Energy sold 100% of the equity interests in Hope in a stock sale for income tax purposes. Dominion Energy’s 2022 effective tax rate reflects the current income tax expense on the sale of Hope’s stock.

As of September 30, 2023, there have been no material changes in the Companies’ unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 5 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, for a discussion of these unrecognized tax benefits.

Discontinued operations

Income tax expense reflected in discontinued operations is $1.3 billion and $185 million for the nine months ended September 30, 2023 and 2022, respectively. As discussed in Note 3, Dominion Energy entered into agreements for the East Ohio, PSNC and Questar Gas Transactions in September 2023, each of which will be treated as a stock sale for income tax purposes. In connection with the pending sales, Dominion Energy established $939 million of deferred tax liabilities reflecting the excess of the financial reporting basis over the tax basis in the tax basis in the stock of the entities anticipated to be sold. These deferred taxes will reverse upon closing of the respective sales, all of which are expected to occur in 2024. 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 10.

Note 6. Earnings Per Share

The following table presents the calculation of Dominion Energy’s basic and diluted EPS:


	Quarter-to-Date						Year-to-Date
Period Ended September 30,	2023			2022			2023			2022
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations	$	717		$	626		$	1,864		$	261
Preferred stock dividends (see Note 16)		(20	)		(20	)		(60	)		(72	)
Net income attributable to Dominion Energy from continuing operations – Basic		697			606			1,804			189
Dilutive effect of 2019 Equity Units(1)		—			—			—			—
Net income attributable to Dominion Energy from continuing operations - Diluted	$	697		$	606		$	1,804		$	189
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	(554	)	$	152		$	(105	)	$	775
Average shares of common stock outstanding – Basic		836.8			832.6			836.0			820.6
Net effect of dilutive securities(2)		—			0.6			0.2			1.1
Average shares of common stock outstanding – Diluted		836.8			833.2			836.2			821.7
EPS from continuing operations – Basic	$	0.83		$	0.73		$	2.16		$	0.23
EPS from discontinued operations – Basic		(0.66	)		0.18		$	(0.13	)		0.95
EPS attributable to Dominion Energy – Basic	$	0.17		$	0.91		$	2.03		$	1.18
EPS from continuing operations – Diluted	$	0.83		$	0.73		$	2.16		$	0.23
EPS from discontinued operations – Diluted		(0.66	)		0.18		$	(0.13	)		0.94
EPS attributable to Dominion Energy – Diluted	$	0.17		$	0.91		$	2.03		$	1.17

(1)

Effective January 2022, diluted net income was no longer reduced by the Series A Preferred Stock dividends.

(2)

Dilutive securities for the nine months ended September 30, 2023 and the three and nine months ended September 30, 2022 include stock potentially to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method). See Note 17 for additional information. Additionally, dilutive securities for the nine months ended September 30, 2022 included forward sales agreements entered into in November 2021 (applying the treasury stock method). See Note 20 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

The 2019 Equity Units, prior to settlement in June 2022, were a potentially dilutive instrument. See Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 and Note 16 in this report for additional information.

For the nine months ended September 30, 2022, the 2019 Equity Units, applying the if converted method for the period prior to settlement in June 2022, were excluded from the calculation of diluted EPS from continuing operations as the effects were anti-dilutive.

Note 7. 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)(2)			Investment Securities(3)			Pension and other postretirement benefit costs(4)			Equity Method Investees(5)			Total
(millions)
Three Months Ended September 30, 2023
Beginning balance	$	(236	)	$	(29	)	$	(1,299	)	$	(2	)	$	(1,566	)
Other comprehensive income (loss) before reclassifications: gains (losses)		19			(22	)		—			(1	)		(4	)
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		11			—			—			—			11
Discontinued operations		—			—			—			4			4
Other income (expense)		—			2			(15	)		—			(13	)
Total		11			2			(15	)		4			2
Income tax expense (benefit)		(3	)		—			7			(1	)		3
Total, net of tax		8			2			(8	)		3			5
Net current period other comprehensive income (loss)		27			(20	)		(8	)		2			1
Ending balance	$	(209	)	$	(49	)	$	(1,307	)	$	—		$	(1,565	)
Three Months Ended September 30, 2022
Beginning balance	$	(283	)	$	(40	)	$	(1,070	)	$	(3	)	$	(1,396	)
Other comprehensive income (loss) before reclassifications: gains (losses)		10			(27	)		—			—			(17	)
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		16			—			—			—			16
Other income (expense)		—			2			35			—			37
Total		16			2			35			—			53
Income tax expense (benefit)		(4	)		(1	)		(9	)		—			(14	)
Total, net of tax		12			1			26			—			39
Net current period other comprehensive income (loss)		22			(26	)		26			—			22
Ending balance	$	(261	)	$	(66	)	$	(1,044	)	$	(3	)	$	(1,374	)

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

*Net of $*70 *million, $*79 *million, $*87 million and $94 million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively.

(3)

*Net of $*16 *million, $*9 *million, $*23 million and $14 million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively.

(4)

*Net of $*461 *million, $*453 *million, $*367 million and $376 million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively.

(5)

Net of $**— million, $**— *million, $*1 million and $1 million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively.


	Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Pension and other postretirement benefit costs(4)			Equity Method Investees(5)			Total
(millions)
Nine Months Ended September 30, 2023
Beginning balance	$	(249	)	$	(44	)	$	(1,276	)	$	(3	)	$	(1,572	)
Other comprehensive income (loss) before reclassifications: gains (losses)		16			(6	)		—			—			10
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		32			—			—			—			32
Discontinued operations		—			—			—			4			4
Other income (expense)		—			1			(46	)		—			(45	)
Total		32			1			(46	)		4			(9	)
Income tax expense (benefit)		(8	)		—			15			(1	)		6
Total, net of tax		24			1			(31	)		3			(3	)
Net current period other comprehensive income (loss)		40			(5	)		(31	)		3			7
Ending balance	$	(209	)	$	(49	)	$	(1,307	)	$	—		$	(1,565	)
Nine Months Ended September 30, 2022
Beginning balance	$	(358	)	$	37		$	(1,133	)	$	(4	)	$	(1,458	)
Other comprehensive income (loss) before reclassifications: gains (losses)		64			(116	)		30			1			(21	)
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		44			—			—			—			44
Other income (expense)		—			18			80			—			98
Total		44			18			80			—			142
Income tax expense (benefit)		(11	)		(5	)		(21	)		—			(37	)
Total, net of tax		33			13			59			—			105
Net current period other comprehensive income (loss)		97			(103	)		89			1			84
Ending balance	$	(261	)	$	(66	)	$	(1,044	)	$	(3	)	$	(1,374	)

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

*Net of $*70 *million, $*83 *million, $*87 million and $119 million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

(3)

*Net of $*16 *million, $*13 million, $23 million and $(10) million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

(4)

*Net of $*461 *million, $*445 *million, $*367 million and $396 million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

(5)

Net of $**— *million, $*1 *million, $*1 million and $1 million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Virginia Power

The following table presents Virginia Power’s changes in AOCI (net of tax) and reclassifications out of AOCI by component:


	Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Total
(millions)
Three Months Ended September 30, 2023
Beginning balance	$	13		$	(4	)	$	9
Other comprehensive income (loss) before reclassifications: gains (losses)		18			(3	)		15
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		1			—			1
Other income (expense)		—			—			—
Total		1			—			1
Income tax expense (benefit)		(1	)		—			(1	)
Total, net of tax		—			—			—
Net current period other comprehensive income (loss)		18			(3	)		15
Ending balance	$	31		$	(7	)	$	24
Three Months Ended September 30, 2022
Beginning balance	$	—		$	(7	)	$	(7	)
Other comprehensive income (loss) before reclassifications: gains (losses)		13			(4	)		9
Amounts reclassified from AOCI: (gains) losses
Interest and related charges (benefit)		1			—			1
Other income (expense)		—			—			—
Total		1			—			1
Income tax expense (benefit)		(1	)		—			(1	)
Total, net of tax		—			—			—
Net current period other comprehensive income (loss)		13			(4	)		9
Ending balance	$	13		$	(11	)	$	2

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

Net of $(11) million, $(4) million, $(4) million and $**— million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively*.*

(3)

*Net of $*3 *million, $*1 *million, $*4 million and $3 million tax at September 30, 2023, June 30, 2023, September 30, 2022 and June 30, 2022, respectively.


	Total Derivative-Hedging Activities(1)(2)			Investment Securities(3)			Total
(millions)
Nine Months Ended September 30, 2023
Beginning balance	$	16		$	(7	)	$	9
Other comprehensive income (loss) before reclassifications: gains (losses)		15			—			15
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		1			—			1
Other income (expense)		—			—			—
Total		1			—			1
Income tax expense (benefit)		(1	)		—			(1	)
Total, net of tax		—			—			—
Net current period other comprehensive income (loss)		15			—			15
Ending balance	$	31		$	(7	)	$	24
Nine Months Ended September 30, 2022
Beginning balance	$	(45	)	$	4		$	(41	)
Other comprehensive income (loss) before reclassifications: gains (losses)		57			(14	)		43
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		2			—			2
Other income (expense)		—			(1	)		(1	)
Total		2			(1	)		1
Income tax expense (benefit)		(1	)		—			(1	)
Total, net of tax		1			(1	)		—
Net current period other comprehensive income (loss)		58			(15	)		43
Ending balance	$	13		$	(11	)	$	2

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

Net of $(11) million, $(5) million, $(4) million and $16 million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

(3)

*Net of $*3 *million, $*2 million, $4 million and $(2) million tax at September 30, 2023, December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. See Note 9 in this report for additional information about the Companies’ derivatives and hedge accounting activities.

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

The following table presents the Companies' quantitative information about Level 3 fair value measurements at September 30, 2023. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.


				Dominion Energy				Virginia Power
	Valuation Techniques	Unobservable Input		Fair Value (millions)		Range	Weighted Average(1)	Fair Value (millions)		Range	Weighted Average(1)
Assets
Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)	(3)	$	1	(2)-3	(1)	$	1	(2)-3	(1)
FTRs	Discounted cash flow	Market price (per MWh)	(3)		5	(1)-11	2		5	(1)-11	2
Electricity	Discounted cash flow	Market price (per MWh)	(3)		143	25-136	48
Physical options:
Natural gas(2)	Option model	Market price (per Dth)	(3)		11	1-8	4		10	1-8	4
		Price volatility	(4)			13%-72%	52%			13%-72%	54%
Total assets				$	160			$	16
Liabilities
Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)	(3)	$	14	(2)-0	(1)	$	14	(2)-0	(1)
FTRs	Discounted cash flow	Market price (per MWh)	(3)		181	(2)-11	3		181	(2)-11	3
Electricity	Discounted cash flow	Market price (per MWh)	(3)		14	34-149	69
Total liabilities				$	209			$	195

(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 nonrecurring fair value measurements associated with Dominion Energy’s noncontrolling ownership interest in Dominion Privatization.

In the first quarter of 2023, Dominion Energy recorded a charge of $91 million ($68 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. The corporate office building is reflected in the Corporate and Other segment and presented as held for sale in Dominion Energy’s Consolidated Balance Sheets at September 30, 2023.

In the second quarter of 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

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


	Dominion Energy								Virginia Power
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
September 30, 2023
Assets
Derivatives:
Commodity	$	—	$	176	$	160	$	336	$	—	$	60	$	16	$	76
Interest rate		—		1,301		—		1,301		—		389		—		389
Foreign currency exchange rate		—		9		—		9		—		9		—		9
Investments(1):
Equity securities:
U.S.		4,218		—		—		4,218		2,238		—		—		2,238
Fixed income:
Corporate debt instruments		—		501		—		501		—		285		—		285
Government securities		166		1,109		—		1,275		88		600		—		688
Cash equivalents and other		43		—		—		43		23		—		—		23
Total assets	$	4,427	$	3,096	$	160	$	7,683	$	2,349	$	1,343	$	16	$	3,708
Liabilities
Derivatives:
Commodity	$	—	$	279	$	209	$	488	$	—	$	113	$	195	$	308
Interest rate		—		428		—		428		—		—		—		—
Foreign currency exchange rate		—		162		—		162		—		162		—		162
Total liabilities	$	—	$	869	$	209	$	1,078	$	—	$	275	$	195	$	470
December 31, 2022
Assets
Derivatives:
Commodity	$	—	$	332	$	437	$	769	$	—	$	32	$	236	$	268
Interest rate		—		1,407		—		1,407		—		614		—		614
Investments(1):
Equity securities:
U.S.		3,810		—		—		3,810		2,028		—		—		2,028
Fixed income:
Corporate debt instruments		—		576		—		576		—		360		—		360
Government securities		161		1,059		—		1,220		90		542		—		632
Total assets	$	3,971	$	3,374	$	437	$	7,782	$	2,118	$	1,548	$	236	$	3,902
Liabilities
Derivatives:
Commodity	$	—	$	911	$	15	$	926	$	—	$	333	$	15	$	348
Interest rate		—		377		—		377		—		7		—		7
Foreign currency exchange rate		—		101		—		101		—		101		—		101
Total liabilities	$	—	$	1,389	$	15	$	1,404	$	—	$	441	$	15	$	456

(1)

*Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $*370 *million and $*404 *million of assets at Dominion Energy, inclusive of $*147 million and $161 million at Virginia Power, at September 30, 2023 and December 31, 2022, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

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


	Dominion Energy												Virginia Power
	Quarter-to-Date						Year-to-Date						Quarter-to-Date						Year-to-Date
Period Ended September 30,	2023			2022			2023			2022			2023			2022			2023			2022
(millions)
Beginning balance	$	134		$	480		$	422		$	222		$	(3	)	$	245		$	221		$	102
Total realized and unrealized gains (losses):
Included in earnings:
Operating revenue		(10	)		—			(8	)		—
Electric fuel and other energy- related purchases		(103	)		181			(191	)		346			(107	)		142			(195	)		293
Discontinued operations		1			—			1			—
Included in regulatory assets/ liabilities		(174	)		2			(463	)		243			(176	)		26			(400	)		152
Settlements		103			(181	)		174			(346	)		107			(142	)		179			(293	)
Purchases		—			—			16			17			—			—			16			17
Ending balance	$	(49	)	$	482		$	(49	)	$	482		$	(179	)	$	271		$	(179	)	$	271

Dominion Energy had $(10) million and $(8) million of unrealized losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and nine months ended September 30, 2023, respectively, and no unrealized gains or losses for the three and nine months ended September 30, 2022. Virginia Power had no unrealized gains or losses for the three and nine months ended September 30, 2023 and 2022.

Fair Value of Financial Instruments

Substantially all of the Companies’ financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash, restricted cash and equivalents, customer and other receivables, affiliated receivables, short-term debt, affiliated current borrowings, payables to affiliates and accounts payable are representative of fair value because of the short-term nature of these instruments. For the Companies' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:


	Dominion Energy				Virginia Power
	Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)
(millions)
September 30, 2023
Long-term debt(2)	$	39,854	$	35,171	$	17,390	$	15,084
Supplemental credit facility borrowings		900		900
Junior subordinated notes(2)		1,388		1,361
December 31, 2022
Long-term debt(2)	$	39,680	$	36,426	$	15,616	$	14,067
Supplemental credit facility borrowings		450		450
Junior subordinated notes(2)		1,387		1,340

(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 presented in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. Additionally, the Dominion Energy carrying amount includes portions classified as held for sale presented in current liabilities held for sale at September 30, 2023 and presented in current liabilities held for sale and noncurrent liabilities held for sale at December 31, 2022.

Note 9. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. See Note 8 in this report for additional 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. In February 2022, Dominion Energy entered into contracts representing offsetting positions to certain existing exchange contracts with collateral requirements as well as new over-the-counter transactions that 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 18 for additional 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 their 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)
September 30, 2023
Commodity contracts:
Over-the-counter	$	152	$	60	$	—	$	92	$	71	$	37	$	—	$	34
Exchange		47		46		—		1		3		3		—		—
Interest rate contracts:
Over-the-counter		1,301		322		—		979		389		54		—		335
Foreign currency exchange rate contracts:
Over-the-counter		9		9		—		—		9		9		—		—
Total derivatives, subject to a master netting or similar arrangement	$	1,509	$	437	$	—	$	1,072	$	472	$	103	$	—	$	369
December 31, 2022
Commodity contracts:
Over-the-counter	$	408	$	28	$	—	$	380	$	238	$	7	$	—	$	231
Exchange		160		159		—		1		—		—		—		—
Interest rate contracts:
Over-the-counter		1,407		248		—		1,159		614		38		—		576
Total derivatives, subject to a master netting or similar arrangement	$	1,975	$	435	$	—	$	1,540	$	852	$	45	$	—	$	807

(1)

*Excludes derivative assets of $*137 *million and $*201 *million at Dominion Energy and $*2 million and $30 million at Virginia Power at September 30, 2023 and December 31, 2022, respectively, which are not subject to master netting or other 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)
September 30, 2023
Commodity contracts:
Over-the-counter	$	347	$	60	$	—	$	287	$	236	$	37	$	—	$	199
Exchange		141		46		95		—		17		3		14		—
Interest rate contracts:
Over-the-counter		428		268		1		159		—		—		—		—
Foreign currency exchange rate contracts:
Over-the-counter		162		63		—		99		162		63		—		99
Total derivatives, subject to a master netting or similar arrangement	$	1,078	$	437	$	96	$	545	$	415	$	103	$	14	$	298
December 31, 2022
Commodity contracts:
Over-the-counter	$	443	$	34	$	71	$	338	$	146	$	13	$	71	$	62
Exchange		483		159		324		—		176		—		176		—
Interest rate contracts:
Over-the-counter		377		210		1		166		7		—		—		7
Foreign currency exchange rate contracts:
Over-the-counter		101		32		—		69		101		32		—		69
Total derivatives, subject to a master netting or similar arrangement	$	1,404	$	435	$	396	$	573	$	430	$	45	$	247	$	138

(1)

*Excludes derivative liabilities of $*55 million and $26 million at Virginia Power at September 30, 2023 and December 31, 2022, respectively, which are not subject to master netting or similar arrangements. Dominion Energy did no**t have any derivative liabilities at September 30, 2023 and December 31, 2022 which were not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of the Companies' derivative activity at September 30, 2023. 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 its long and short positions.


	Dominion Energy				Virginia Power
	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price(1)		45		20		35		20
Basis(2)		179		369		149		369
Electricity (MWh in millions):
Fixed price		17		41		8		11
FTRs		62		—		62		—
Interest rate(3) (in millions)	$	300	$	10,121	$	—	$	2,750
Foreign currency exchange rate(3) (in millions)
Danish Krone	895 kr.		3,278 kr.		895 kr.		3,278 kr.
Euro	€806		€1,557		€806		€1,557

(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 and losses on cash flow hedges included in AOCI in the Companies' Consolidated Balance Sheets at September 30, 2023:


	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)
Interest rate	$	(209	)	$	(33	)	387 months	$	31	$	—	387 months
Total	$	(209	)	$	(33	)		$	31	$	—

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 table presents the fair values of the Companies' derivatives and where they are presented in their Consolidated Balance Sheets:


	Dominion Energy						Virginia Power
	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At September 30, 2023
ASSETS
Current Assets
Commodity	$	—	$	159	$	159	$	—	$	46	$	46
Interest rate		—		63		63		—		—		—
Foreign currency exchange rate		—		9		9		—		9		9
Total current derivative assets(1)		—		231		231		—		55		55
Noncurrent Assets
Commodity		—		177		177		—		30		30
Interest rate		389		849		1,238		389		—		389
Total noncurrent derivative assets(2)		389		1,026		1,415		389		30		419
Total derivative assets	$	389	$	1,257	$	1,646	$	389	$	85	$	474
LIABILITIES
Current Liabilities
Commodity	$	—	$	350	$	350	$	—	$	256	$	256
Interest rate		—		65		65		—		—		—
Foreign currency exchange rate		—		54		54		—		54		54
Total current derivative liabilities(3)		—		469		469		—		310		310
Noncurrent Liabilities
Commodity		—		138		138		—		52		52
Interest rate		—		363		363		—		—		—
Foreign currency exchange rate		—		108		108		—		108		108
Total noncurrent derivative liabilities(4)		—		609		609		—		160		160
Total derivative liabilities	$	—	$	1,078	$	1,078	$	—	$	470	$	470
At December 31, 2022
ASSETS
Current Assets
Commodity	$	—	$	532	$	532	$	—	$	264	$	264
Interest rate		501		104		605		501		—		501
Total current derivative assets(1)		501		636		1,137		501		264		765
Noncurrent Assets
Commodity		—		237		237		—		4		4
Interest rate		113		689		802		113		—		113
Total noncurrent derivative assets(2)		113		926		1,039		113		4		117
Total derivative assets	$	614	$	1,562	$	2,176	$	614	$	268	$	882
LIABILITIES
Current Liabilities
Commodity	$	—	$	700	$	700	$	—	$	290	$	290
Interest rate		—		70		70		—		—		—
Foreign currency exchange rate		—		8		8		—		8		8
Total current derivative liabilities(3)		—		778		778		—		298		298
Noncurrent Liabilities
Commodity		—		226		226		—		58		58
Interest rate		7		300		307		7		—		7
Foreign currency exchange rate		—		93		93		—		93		93
Total noncurrent derivative liabilities(4)		7		619		626		7		151		158
Total derivative liabilities	$	7	$	1,397	$	1,404	$	7	$	449	$	456

(1)

*Includes $*10 *million and $*118 million recorded in current assets held for sale in Dominion Energy's Consolidated Balance Sheets at September 30, 2023 and December 31, 2022, respectively.

(2)

*Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets with the exception of $*1 million presented in noncurrent assets held for sale in Dominion Energy’s Consolidated Balance Sheets at December 31, 2022.

(3)

*Includes $*12 *million and $*6 million recorded in current liabilities held for sale in Dominion Energy's Consolidated Balance Sheets at September 30, 2023 and December 31, 2022, respectively.

(4)

*Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets with the exception of $*1 million presented in noncurrent liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets at December 31, 2022.

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)
Three Months Ended September 30, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	25	$	(11	)	$	268	$	25	$	(1	)	$	267
Total	$	25	$	(11	)	$	268	$	25	$	(1	)	$	267
Three Months Ended September 30, 2022
Derivative type and location of gains (losses):
Interest rate(3)	$	14		(16	)	$	182	$	18	$	(1	)	$	182
Total	$	14	$	(16	)	$	182	$	18	$	(1	)	$	182
Nine Months Ended September 30, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	21	$	(32	)	$	236	$	21	$	(1	)	$	235
Total	$	21	$	(32	)	$	236	$	21	$	(1	)	$	235
Nine Months Ended September 30, 2022
Derivative type and location of gains (losses):
Interest rate(3)	$	86	$	(44	)	$	815	$	77	$	(2	)	$	814
Total	$	86	$	(44	)	$	815	$	77	$	(2	)	$	814

(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 Statement of Income are classified in interest and related charges.


	Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)
Derivatives not designated as hedging instruments	Dominion Energy												Virginia Power
	Quarter-to-Date						Year-to-Date						Quarter-to-Date						Year-to-Date
Period Ended September 30,	2023			2022			2023			2022			2023			2022			2023			2022
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	7		$	(306	)	$	428		$	(908	)	$	6		$	(108	)	$	25		$	(237	)
Purchased gas		—			1			—			5
Electric fuel and other energy-related purchases		(149	)		205			(267	)		401			(151	)		166			(270	)		348
Operations and maintenance		—			—			2			—			—			—			2			—
Discontinued operations		—			—			94			1
Interest rate:
Interest and related charges		274			3			227			371
Discontinued operations		(7	)		89			17			257
Total	$	125		$	(8	)	$	501		$	127		$	(145	)	$	58		$	(243	)	$	111

(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 10. Investments

Dominion Energy

Equity and Debt Securities

Short-Term Deposit

In May 2022, Dominion Energy entered into an agreement with a financial institution and committed to make a short-term deposit of at least $1.6 billion but not more than $2.0 billion to be posted as collateral to secure its $1.6 billion redemption obligation of the Series A Preferred Stock as described in Note 16. In May 2022, Dominion Energy funded the short-term deposit in the amount of $2.0 billion, which earned interest income at an annual rate of 1.75% through its maturity in September 2022.

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $119 million and $111 million at September 30, 2023 and December 31, 2022, 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)
September 30, 2023
Equity securities:(1)
U.S.	$	1,399	$	2,860	$	(31	)				$	4,228	$	870	$	1,490	$	(28	)				$	2,332
Fixed income securities:(2)
Corporate debt instruments		545		—		(53	)		$	—		492		324		—		(39	)		$	—		285
Government securities		1,340		—		(91	)			—		1,249		737		—		(49	)			—		688
Common/ collective trust funds		66		—		—				—		66		52		—		—				—		52
Insurance contracts		228		—		—						228		—
Cash equivalents and other(3)		82		—		—				—		82		43		—		—				—		43
Total	$	3,660	$	2,860	$	(175	)	(4)	$	—	$	6,345	$	2,026	$	1,490	$	(116	)	(4)	$	—	$	3,400
December 31, 2022
Equity securities:(1)
U.S.	$	1,378	$	2,501	$	(46	)				$	3,833	$	858	$	1,304	$	(35	)				$	2,127
Fixed income securities:(2)
Corporate debt instruments		640		1		(65	)		$	—		576		406		1		(47	)		$	—		360
Government securities		1,252		4		(70	)			—		1,186		664		2		(35	)			—		631
Common/ collective trust funds		98		—		—				—		98		61		—		—				—		61
Insurance contracts		221		—		—						221
Cash equivalents and other(3)		43		—		—				—		43		23		—		—				—		23
Total	$	3,632	$	2,506	$	(181	)	(4)	$	—	$	5,957	$	2,012	$	1,307	$	(117	)	(4)	$	—	$	3,202

(1)

Unrealized gains and losses on equity securities are included in other income (expense) and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Changes in allowance for credit losses are included in other income (expense).

(3)

*Dominion Energy includes pending sales of securities of $*39 *million and $42 million at September 30, 2023 and December 31, 2022, respectively. Virginia Power includes pending sales of securities of $*20 million and $24 million at September 30, 2023, and December 31, 2022, respectively.

(4)

*Dominion Energy's fair value of securities in an unrealized loss position was $*1.9 *billion and $1.6 billion at September 30, 2023 and December 31, 2022, respectively. Virginia Power's fair value of securities in an unrealized loss position was $*1.1 billion and $946 million at September 30, 2023 and December 31, 2022, 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											Virginia Power
	Quarter-to-Date						Year-to-Date					Quarter-to-Date						Year-to-Date
Period Ended September 30,	2023			2022			2023		2022			2023			2022			2023		2022
(millions)
Net gains (losses) recognized during the period	$	(150	)	$	(205	)	$	370	$	(1,123	)	$	(80	)	$	(118	)	$	189	$	(581	)
Less: Net (gains) losses recognized during the period on securities sold during the period		1			(2	)		4		3			(1	)		(4	)		2		(8	)
Unrealized gains (losses) recognized during the period on securities still held at period end(1)	$	(149	)	$	(207	)	$	374	$	(1,120	)	$	(81	)	$	(122	)	$	191	$	(589	)

(1)

Included in other income (expense) and the nuclear decommissioning trust regulatory liability.

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 September 30, 2023 by contractual maturity is as follows:


	Dominion Energy		Virginia Power
(millions)
Due in one year or less	$	89	$	62
Due after one year through five years		477		244
Due after five years through ten years		394		239
Due after ten years		847		480
Total	$	1,807	$	1,025

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								Virginia Power
	Quarter-to-Date				Year-to-Date				Quarter-to-Date				Year-to-Date
Period Ended September 30,	2023		2022		2023		2022		2023		2022		2023		2022
(millions)
Proceeds from sales	$	869	$	605	$	2,007	$	2,686	$	535	$	425	$	1,254	$	1,289
Realized gains(1)		5		17		48		132		4		14		29		40
Realized losses(1)		33		50		110		247		16		33		61		85

(1)

Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Equity Method Investments

Dominion Energy recorded equity earnings on its investments of $7 million and $16 million for the nine months ended September 30, 2023 and 2022, respectively, in other income (expense) in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings of $235 million and $233 million for the nine months ended September 30, 2023 and 2022, respectively, in discontinued operations, including amounts related to its investments in Cove Point and Atlantic Coast Pipeline discussed below.

Dominion Energy received distributions of $241 million and $268 million for the nine months ended September 30, 2023 and 2022, respectively. Dominion Energy made contributions of $79 million and $93 million for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023 and December 31, 2022, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $12 million and $223 million, respectively. At September 30, 2023, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $3 million attributable to capitalized interest. At December 31, 2022, these differences are comprised of $9 million of equity method goodwill that is not being amortized, $215 million basis difference from Dominion Energy’s investment in Cove Point, which is being amortized over the useful lives of the underlying assets and a net $(1) million basis difference primarily attributable to capitalized interest.

Cove Point

Prior to completion of the sale in September 2023, Dominion Energy held a 50% noncontrolling limited partnership interest in Cove Point which was accounted for as an equity method investment, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Dominion Energy recorded distributions from Cove Point of $49 million and $98 million for the three months ended September 30, 2023 and 2022, respectively, and $227 million and $259 million for the nine months ended September 30, 2023 and 2022, respectively.

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 in 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 16 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.

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 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. As a result, the previously reported amounts have been recast to reflect this presentation.

Amounts presented within discontinued operations within Dominion Energy’s Consolidated Statements of Income for the three and nine months ended September 30, 2023 include $52 million and $218 million for earnings on equity method investees, $69 million and $120 million of interest expense and $7 million and $31 million of income tax expense, respectively, in addition to the gain on sale and associated tax expense disclosed above. Such amounts for the three and nine months ended September 30, 2022 were $91 million and $238 million for earnings on equity method investees, $(65) million and $(205) million of interest expense (benefit) and $32 million and $93 million of income tax expense, respectively. Dominion Energy’s Consolidated Balance Sheet at December 31, 2022 includes $2.7 billion within noncurrent assets held for sale for Dominion Energy’s 50% noncontrolling limited partnership interest in Cove Point.

Atlantic Coast Pipeline

A description of Dominion Energy’s investment in Atlantic Coast Pipeline, including events that led to the cancellation of the Atlantic Coast Pipeline Project in July 2020, is included in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

At September 30, 2023 and December 31, 2022, Dominion Energy has recorded a liability of $25 million and $114 million, respectively, in other current liabilities in its Consolidated Balance Sheets as a result of its share of equity losses exceeding its investment which reflects Dominion Energy’s obligations on behalf of Atlantic Coast Pipeline related to its AROs.

Dominion Energy recorded equity earnings related to Atlantic Coast Pipeline of $16 million and equity losses of $6 million for the nine months ended September 30, 2023 and 2022, respectively, in discontinued operations.

Dominion Energy recorded $70 million of contributions to Atlantic Coast Pipeline during the nine months ended September 30, 2023. Dominion Energy made no contributions to Atlantic Coast Pipeline during the nine months ended September 30, 2022.

Dominion Energy expects to 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.

Wrangler

A description of Dominion Energy’s investment in Wrangler (through March 2022) is included in Note 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.

In March 2022, Dominion Energy sold its remaining 15% noncontrolling partnership interest in Wrangler to Interstate Gas Supply, Inc. for cash consideration of $85 million. Dominion Energy recognized a gain of $11 million ($8 million after-tax), included in other income (expense), in its Consolidated Statements of Income for the nine months ended September 30, 2022.

Dominion Privatization

Dominion Energy holds a 50% noncontrolling ownership interest in Dominion Privatization which is accounted for as an equity method investment, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

In March 2022, Dominion Energy completed its initial contribution of privatization operations in South Carolina (excluding contracts held by DESC), Texas and Pennsylvania to Dominion Privatization for total consideration of $120 million, subject to customary closing adjustments, comprised of $60 million in cash proceeds and a 50% noncontrolling ownership interest in Dominion Privatization with an initial fair value of $60 million, estimated using the market approach. This was considered a Level 2 fair value measurement given that it was based on the agreed-upon sales price. In the first quarter of 2022, Dominion Energy recorded a gain of $23 million ($16 million after-tax), presented in losses (gains) on sales of assets in its Consolidated Statements of Income.

Note 11. Property, Plant and Equipment

Acquisitions of Nonregulated Solar Projects

Other than the item discussed below, there have been no significant updates to acquisitions of solar projects by the Companies from those discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

In March 2023, Dominion Energy entered into an agreement to acquire the Foxhound solar development project in Virginia (reflected in Contracted Energy) with closing on the agreement expected in 2024. The project is expected to cost approximately $205 million, including the initial acquisition cost, and commence commercial operations in 2024 with a generating capacity of 83 MW. Dominion Energy expects to claim production tax credits on the energy generated and sold by the project. Dominion Energy anticipates that an impairment charge may be required upon closing given its expectation that it is more likely than not that the nonregulated solar generation projects within Contracted Energy will be sold before the end of their useful lives as described in Note 10 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.

Sale of Utility Property

In June 2022, Dominion Energy completed the sale of certain utility property in South Carolina, as approved by the South Carolina Commission in May 2022, for total cash consideration of $16 million. In connection with the sale, Dominion Energy recognized a gain of $16 million ($12 million after-tax), recorded in losses (gains) on sales of assets, in its Consolidated Statements of Income for the nine months ended September 30, 2022.

Virginia Power Easement Agreement

In November 2023, Virginia Power entered into an agreement under which it paid $65 million for an easement related to the CVOW Commercial Project that it will not seek recovery of and therefore expects to record a charge of $65 million ($49 million after-tax) in the fourth quarter of 2023**.**

Note 12. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:


	Dominion Energy				Virginia Power
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)	$	281	$	603	$	37	$	133
Deferred rider costs for Virginia electric utility(2)		340		152		340		152
Ash pond and landfill closure costs(3)		151		221		151		221
Deferred nuclear refueling outage costs(4)		77		83		77		83
NND Project costs(5)		138		138
Deferred early plant retirement charges(6)		56		226		56		226
Derivatives(7)		196		256		192		251
Other		245		204		68		74
Regulatory assets-current		1,484		1,883		921		1,140
Unrecognized pension and other postretirement benefit costs(8)		785		891		—		4
Deferred rider costs for Virginia electric utility(2)		411		363		411		363
Interest rate hedges(9)		168		169		—		—
AROs and related funding(10)		399		380
NND Project costs(5)		1,984		2,088
Ash pond and landfill closure costs(3)		2,448		2,051		2,445		2,049
Deferred cost of fuel used in electric generation(1)		1,226		1,551		1,226		1,551
Derivatives(7)		265		254		164		148
Other		580		518		123		132
Regulatory assets-noncurrent		8,266		8,265		4,369		4,247
Total regulatory assets	$	9,750	$	10,148	$	5,290	$	5,387
Regulatory liabilities:
Provision for future cost of removal and AROs(11)		111		111		111		111
Reserve for refunds and rate credits to electric utility customers(12)		94		125		7		25
Income taxes refundable through future rates(13)		101		100		65		65
Monetization of guarantee settlement(14)		67		67
Derivatives(7)		17		211		—		176
Other		44		134		43		129
Regulatory liabilities-current		434		748		226		506
Income taxes refundable through future rates(13)		3,072		3,169		2,226		2,272
Provision for future cost of removal and AROs(11)		1,824		1,731		1,179		1,135
Nuclear decommissioning trust(15)		1,843		1,685		1,843		1,685
Monetization of guarantee settlement(14)		652		702
Interest rate hedges(9)		463		240		463		240
Reserve for refunds and rate credits to electric utility customers(12)		261		325		—		—
Overrecovered other postretirement benefit costs(16)		149		140
Derivatives(7)		189		234		—		—
Other		283		191		262		167
Regulatory liabilities-noncurrent		8,736		8,417		5,973		5,499
Total regulatory liabilities	$	9,170	$	9,165	$	6,199	$	6,005

(1)

Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia Power's electric generation operations and additionally for Dominion Energy, deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations.

(2)

*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 the second quarter of 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, for the write-off of certain previously deferred amounts related to Riders R, S and W in connection with the cessation of such riders effective July 2023. See Note 13 for additional information.

(3)

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.

(4)

Legislation in Virginia requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

(5)

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.*

(6)

Reflects amounts from the early retirements of certain coal- and oil-fired generating units to be amortized through 2023 in accordance with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

(7)

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.

(8)

*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. Includes $*295 *million and $*302 million of regulatory assets in aggregate at September 30, 2023 and December 31, 2022, respectively, related to retained pension and other postretirement benefit plan assets and obligations for the East Ohio, PSNC and Questar Gas Transactions which will be reclassified to AOCI upon closing of each transaction.

(9)

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 25 years and 24 years for Dominion Energy and Virginia Power, respectively, as of September 30, 2023*.*

(10)

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.

(11)

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.

(12)

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. Also reflects amounts to be refunded to jurisdictional retail electric customers in Virginia associated with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.*

(13)

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.

(14)

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.*

(15)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon, as applicable) for the future decommissioning of Virginia Power's utility nuclear generation stations, in excess of the related AROs.

(16)

Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

At September 30, 2023, Dominion Energy and Virginia Power regulatory assets include $5.1 billion and $3.2 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

Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Virginia Regulation - Key Legislation Affecting Operations

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. See Note 13 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, for additional information on the Regulation Act and GTSA.

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 future biennial reviews, 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 biennial review to be filed in 2025, 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.

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.

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.

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%.

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.

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 Regulation - Recent Developments

2023 Biennial Review

In July 2023, Virginia Power filed its base rate case and accompanying schedules in support of the 2023 Biennial Review in accordance with legislation enacted in Virginia in April 2023 as discussed above. Virginia Power’s earnings test analysis, as filed, demonstrated it earned a combined ROE of 9.04% on its generation and distribution services for the test period, within 70 basis points of its authorized ROE of 9.35% established in the 2021 Triennial Review. Virginia Power did not request an increase in base rates for generation and distribution services and proposed that base rates remain at their existing level utilizing an ROE of 9.70% for the prospective test periods and a common equity capitalization to total capitalization ratio of 52.10%. Virginia Power noted that while its prospective test periods would result in a revenue deficiency, it did not request an increase to base rates given that the combination of certain riders with an aggregate annual revenue requirement of at least $350 million into base rates effective July 2023 cannot serve as the basis for an increase in base rates as part of the 2023 Biennial Review. The Virginia Commission will determine whether Virginia Power’s earnings for the test period, considered as a whole, were within 70 basis points above or below the authorized ROE of 9.35%. The Virginia Commission will also authorize an ROE of 9.70%, as directed by legislation enacted in Virginia in April 2023, 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 2025 Biennial Review. This matter is pending.

Virginia Fuel Expenses

In May 2023, Virginia Power filed its annual fuel factor filing with the Virginia Commission to recover an estimated $2.3 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2023 and a projected $1.3 billion under-recovered balance as of June 30, 2023. The projected under-recovered balance includes $578 million representing the remaining two years of under-recovered balance as of June 30, 2022 being collected over a three-year period in accordance with the Virginia Commission’s approval of Virginia Power’s 2022 annual fuel factor as described in Note 13 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. Virginia Power proposed two alternatives to recover these under-collected fuel costs. The first option reflects recovery of the total $3.3 billion fuel cost requirement over the July 2023 through June 2024 fuel period and results in an increase in Virginia Power’s fuel revenues of $631 million when applied to projected kilowatt-hour sales for the period. The second option proposed by Virginia Power incorporates its anticipated July 2023 application to the Virginia Commission for approval of a financing order to securitize up to the projected $1.3 billion under-recovered balance as of June 30, 2023 as permitted under legislation enacted in Virginia in April 2023. Under this option, Virginia Power proposed implementation of the current period fuel factor rate only effective July 2023 on an interim basis, while suspending implementation of the prior-period fuel factor rate pending the Virginia Commission’s consideration of the securitization petition. If approved by the Virginia Commission, the securitization option results in a net decrease in Virginia Power’s fuel revenues for the rate year of approximately $541 million. In addition, Virginia Power has proposed to alter the order in which revenue from certain customers who elect to pay market-based rates would be allocated between base rates and fuel, which if approved would result in a reduction to fuel revenue of $13 million. In May 2023, the Virginia Commission ordered that, in accordance with Virginia Power’s second proposed option, only the current period fuel factor rate be implemented effective July 2023 on an interim basis. This matter is pending.

In accordance with legislation enacted in Virginia in April 2023 discussed above, in July 2023, Virginia Power filed an application with the Virginia Commission for approval of a financing order to securitize the projected $1.3 billion under-recovered fuel balance as of June 30, 2023 through the issuance of one or more tranches of bonds with tenors up to approximately ten years. In November 2023, the Virginia Commission approved Virginia Power’s request for a financing order to securitize $1.3 billion of under-recovered fuel costs through the issuance by a special purpose entity of one or more tranches of bonds with tenors of up to approximately seven years.

Virginia Power Equity Application

In July 2023, Virginia Power requested approval from the Virginia Commission to issue and sell to Dominion Energy up to $3.25 billion of authorized but unissued shares of its common stock, no par value, through the end of 2023 in order 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 above. In August 2023, the Virginia Commission approved the application.

Virginia 2020 Legislation – Low-income 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.

GTSA Filing

In March 2023, Virginia Power filed a petition with the Virginia Commission for approval of Phase III, covering 2024 through 2026, of its plan for electric distribution grid transformation projects as authorized by the GTSA. The plan includes 14 projects covering six components (i) AMI; (ii) customer information platform; (iii) grid improvement projects; (iv) physical and cyber security; (v) telecommunications infrastructure and (vi) customer education. For Phase III, the total proposed capital investment is $1.1 billion and the proposed operations and maintenance investment is $71 million. In September 2023, the Virginia Commission approved total proposed capital investment of $773 million and the requested operations and maintenance investment of $71 million. In addition, the Virginia Commission approved a pilot project to include up to five battery energy storage systems, to be installed over five years, at a proposed 2024 through 2028 capital cost of $50 million.

Renewable Generation Projects

In October 2022, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct and operate eight utility-scale projects totaling approximately 474 MW of solar generation and 16 MW of energy storage as part of its efforts to meet the renewable generation development requirements under the VCEA. The projects, as of October 2022, are expected to cost approximately $1.2 billion in the aggregate, excluding financing costs, and be placed into service between 2024 through 2025. In April 2023, the Virginia Commission approved the petition.

In October 2023, Virginia Power filed a petition with the Virginia Commission for CPCNs to construct or acquire and operate four utility-scale projects totaling approximately 329 MW of solar generation as part of its efforts to meet the renewable generation development targets under the VCEA. The projects, as of October 2023, are expected to cost approximately $850 million in the aggregate, excluding financing costs, and be placed into service between 2024 and 2026. This matter is pending.

Riders

Developments for significant riders associated with various Virginia Power projects are as follows:


Rider Name	Application Date	Approval Date	Rate Year Beginning	Total Revenue Requirement (millions)				Increase (Decrease) Over Previous Year (millions)
Rider CCR	February 2023	October 2023	December 2023	$	194			$	(37	)
Rider CE(1)	October 2022	April 2023	May 2023		89				18
Rider CE(2)	October 2023	Pending	May 2024		137				48
Rider E	January 2023	September 2023	November 2023		109				8
Rider GT	August 2022	April 2023	June 2023		14				(42	)
Rider GT	August 2023	Pending	June 2024		145				131
Rider GV(3)	June 2023	Pending	April 2024		132				5
Rider GV(3)	June 2023	Pending	April 2025		135				3
Rider OSW	November 2022	July 2023	September 2023		271				192
Rider OSW	November 2023	Pending	September 2024		486				215
Rider PPA(4)	December 2022	July 2023	September 2023		(22	)			(17	)
Rider R	June 2021	March 2022	April 2023		55		(12)		(4	)
Rider RBB	October 2023	Pending	May 2024		18				11
Rider RGGI(5)	December 2022	July 2023	September 2023		356			N/A
Rider RPS	December 2022	July 2023	September 2023		96				(44	)
Rider S	June 2021	February 2022	April 2023		191		(12)		(1	)
Rider SNA(6)	October 2022	June 2023	September 2023		50				(57	)
Rider SNA	October 2023	Pending	September 2024		95				45
Rider T1(7)	May 2023	July 2023	September 2023		879				173
Rider U(8)	June 2022	February 2023	April 2023		74				(21	)
Rider U(9)	October 2023	Pending	August 2024		150				76
Rider US-3	August 2022	April 2023	June 2023		40				(10	)
Rider US-3	August 2023	Pending	June 2024		37				(3	)
Rider US-4	August 2022	April 2023	June 2023		16				1
Rider US-4	August 2023	Pending	June 2024		14				(2	)
Rider W(10)	June 2022	February 2023	April 2023		105		(12)		(16	)
DSM Riders(11)	December 2022	August 2023	September 2023		107				16

(1)

Associated with solar generation and energy storage projects requested for approval in October 2022 and certain small-scale solar projects in addition to previously approved Rider CE projects.

(2)

Associated with five solar generation projects, one small-scale solar project and 13 power purchase agreements in addition to previously approved Rider CE projects. In addition, Virginia Power seeks Virginia Commission approval to consolidate Rider PPA with Rider CE and to end Rider PPA in April 2024.

(3)

*The total revenue requirement requested is based on an estimated retirement of Greensville County in 2058, consistent with the current estimated useful life of the facility. Virginia Power also provided an alternative approach based on an estimated retirement of Greensville County in 2045, which if utilized would result in a revenue requirement of $*144 *million and $*148 million for rate years beginning April 2024 and April 2025, respectively.

(4)

In connection with the October 2023 Rider CE application, Virginia Power seeks Virginia Commission approval to consolidate Rider PPA with Rider CE and to end Rider PPA in April 2024. This matter is pending.

(5)

In December 2022, Virginia Power filed a petition to update and reinstate Rider RGGI to recover RGGI compliance costs incurred after July 2022 and those projected to occur through December 2023, with rate recovery from September 2023 through August 2024. For purposes of this proceeding, Virginia Power has assumed that Virginia will withdraw from RGGI on December 31, 2023, and accordingly did not project any RGGI compliance costs to be incurred after that date.

(6)

*Virginia Power requested approval of cost recovery of approximately $*1.2 billion through Rider SNA for the first phase of nuclear life extension program which includes investments through 2024. In April 2022, Virginia Power, the Virginia Commission staff and certain interested parties filed a proposed stipulation recommending that costs incurred after February 2022 associated with the first phase of the nuclear life extension program for North Anna be deferred and requested for recovery in a subsequent Rider SNA filing.

(7)

*Consists of $*510 *million for the transmission component of Virginia Power's base rates and $*369 million for Rider T1.

(8)

Consists of previously approved phases of Rider U. In August 2023, the Virginia Commission approved Virginia Power's request to extend the rider for the rate year beginning April 2023 through June 2024.

(9)

*Consists of $*72 *million for previously approved phases and $*78 million for phase seven costs for Rider U. In connection with the October 2023 application, Virginia Power requests the Virginia Commission further extend existing rates for Rider U through July 2024.

(10)

In February 2023, the Virginia Commission also approved Virginia Power's requested revenue requirement for the rate year beginning April 2024. However, as Virginia Power provided notification in May 2023 to combine Rider W into base rates as discussed above, Rider W ceased to be separately collected effective July 2023.

(11)

Associated with an additional four new energy efficiency programs, one new demand response program and four new program bundles with a $150 million cost cap, with the ability to exceed the cost cap by no more than 15%.

(12)

*In May 2023, Virginia Power filed a notification with the Virginia Commission to combine Riders R, S and W, which have an aggregate revenue requirement of $*351 million, into base rates effective July 2023 in accordance with legislation enacted in Virginia in April 2023.

Electric Transmission Projects

Developments for 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)
Partial rebuild of Bristers-Ox 115 kV line in Fauquier and Prince William Counties, Virginia	August 2022	April 2023	230 kV	15	$	40
Construct new switching station, substations, transmission lines and related projects in Lunenberg and Mecklenburg Counties, Virginia	October 2022	June 2023	230 kV	18		230
Construct new switching station, substation, transmission lines and related projects in Charlotte, Halifax and Mecklenburg Counties, Virginia	October 2022	May 2023	230 kV	26		215
Construct new Mars and Wishing Star substations, transmission lines and related projects in Loudoun County, Virginia	October 2022	April 2023	500/230 kV	4		720
Construct new Altair switching station, transmission lines and related projects in Loudoun County, Virginia	November 2022	June 2023	230 kV	2		50
Construct new Cirrus and Keyser switching stations, transmission lines and related projects in Culpeper, Virginia	November 2022	October 2023	230 kV	5		65
Rebuild of Lines #2019 and #2007 in the City of Virginia Beach, Virginia	February 2023	August 2023	230 kV	5		95
Install transformer at Possum Point substation, rebuild and construct transmission lines and related projects in Prince William County, Virginia	March 2023	Pending	230 kV	2		35
Partial rebuild of Line #2011 in the Cities of Manassas and Manassas Park, Virginia and Prince William and Fairfax Counties, Virginia	March 2023	October 2023	230 kV	7		35
Construct new transmission lines and convert Jeffress switching station in Mecklenburg County, Virginia	May 2023	Pending	230 kV	18		135
Construct new transmission lines and expand White Oak substation in Henrico County, Virginia	June 2023	Pending	230 kV	5		45
Rebuild Line #235 in Halifax, Mecklenburg and Charlotte Counties, Virginia	August 2023	Pending	230 kV	16		35
Partial rebuild Line #249 in Dinwiddie County and the City of Petersburg, Virginia	September 2023	Pending	230 kV	7		25

Virginia Regulation – Select Prior Year Events

The following items were disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 and are included in this report as they had an impact to the Companies’ Consolidated Statements of Income for the three and/or nine months ended September 30, 2022.

Virginia Fuel Expenses

In May 2022, Virginia Power filed its annual fuel factor filing with the Virginia Commission to recover an estimated $2.3 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2022 and a projected $1.0 billion under-recovered balance as of June 30, 2022. In July 2022, Virginia Power, the Virginia Commission staff and another party filed a comprehensive settlement agreement, approved by the Virginia Commission in September 2022, which provided for the collection of the requested under-recovered projected fuel expense over a three-year period beginning July 1, 2022 and required that Virginia Power exclude from recovery through base rates one half of the related financing costs over the three year period. In addition, the settlement agreement affirmed Virginia Power’s proposal regarding fuel cost recovery for market-based customers. As a result, Virginia Power recorded a $191 million ($142 million after-tax) charge in the second quarter of 2022 within impairment of assets and other charges in its Consolidated Statements of Income. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

Rider RGGI

In May 2022, Virginia Power filed a petition with the Virginia Commission requesting suspension of Rider RGGI approved in August 2021. Virginia Power also requested that RGGI compliance costs incurred and unrecovered through July 2022 be recovered through existing base rates in effect during the period incurred. The Virginia Commission approved the request in June 2022. In the second quarter of 2022, Virginia Power recorded a charge of $180 million ($134 million after-tax) in impairment of assets and other charges for the amount deemed recovered through base rates through June 30, 2022, including the impact of certain non-jurisdictional customers which follow Virginia Power’s jurisdictional rate methodology. Virginia Power recorded $33 million ($25 million after-tax) in depreciation and amortization in the third quarter of 2022. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022 for additional information.

North Carolina Regulation

PSNC Rider D

Rider D allows PSNC to recover from customers all prudently incurred gas costs and the related portion of uncollectible expenses as well as losses on negotiated gas and transportation sales. In February 2023, PSNC submitted a filing with the North Carolina Commission for a $56 million gas cost decrease with rates effective March 2023. The North Carolina Commission approved the filing in March 2023.

PSNC Customer Usage Tracker

PSNC utilizes a customer usage tracker, a decoupling mechanism, which allows it to adjust its base rates semi-annually for residential and commercial customers based on average per customer consumption. In March 2023, PSNC submitted a filing with the North Carolina Commission for a $23 million decrease relating to the customer usage tracker. The North Carolina Commission approved the filing in March 2023 with rates effective April 2023. In September 2023, PSNC submitted a filing with the North Carolina Commission for a $34 million increase relating to the customer usage tracker. The North Carolina Commission approved the filing in September 2023 with rates effective October 2023.

South Carolina Regulation

DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January 2023, 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 2023. In April 2023, the South Carolina Commission approved the request, effective with the first billing cycle of May 2023.

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 2023, 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 2023, along with a requested decrease to DESC's variable environmental and avoided capacity cost

component. The net effect of the proposal is an annual increase of $176 million. In March 2023, DESC, the South Carolina Office of Regulatory Staff and another party of record filed a stipulation with the South Carolina Commission for approval to reduce the base fuel cost component reflecting a subsequent decrease in current fuel prices, resulting in a net annual increase of $121 million. In April 2023, the South Carolina Commission voted to approve the stipulation, with rates effective May 2023.

Electric Transmission Project

In March 2023, DESC filed an application with the South Carolina Commission requesting approval to construct and operate 19 miles of 230 kV transmission lines, a substation and associated facilities in Jasper County, South Carolina estimated to cost approximately $55 million. In July 2023, the South Carolina Commission voted to approve the request and issued its order in September 2023.

Electric - Other

DESC utilizes a pension costs rider approved by the South Carolina Commission which is designed to allow recovery of projected pension costs, including under-collected balances or net of over-collected balances, as applicable. The rider is typically reviewed for adjustment every 12 months with any resulting increase or decrease going into effect beginning with the first billing cycle in May. In February 2023, DESC requested that the South Carolina Commission approve an adjustment to this rider to increase annual revenue by $24 million. In April 2023, the South Carolina Commission approved the request.

Natural Gas Base Rate Case

In March 2023, DESC filed its natural gas base rate case and schedules with the South Carolina Commission. DESC proposed a rate increase of $19 million effective October 2023. The base rate increase was proposed to recover significant investment in distribution infrastructure for the benefit of customers. The proposed rates would provide for an ROE of 10.38% compared to the currently authorized ROE of 10.25%. In addition, DESC elected to continue applicability of the Natural Gas Rate Stabilization Act, which allows for the adjustment of natural gas base rates annually, to its future rates and charges. In September 2023, DESC, the South Carolina Office of Regulatory Staff and other parties of record filed a stipulation agreement with the South Carolina Commission for approval. The stipulation agreement provides for a rate increase of $9 million commencing with bills rendered in October 2023, and an authorized ROE of 9.49%. Pursuant to the stipulation agreement, DESC would not file a natural gas base rate case prior to April 1, 2026, such that new rates would not be effective prior to October 1, 2026, absent unforeseen extraordinary economic or financial conditions that may include changes in corporate tax rates. In September 2023, the South Carolina Commission approved the stipulation agreement and issued its final order in October 2023.

Ohio Regulation

Base Rate Case

In October 2023, East Ohio filed its base rate case and schedules with the Ohio Commission. East Ohio proposed a non-fuel, base rate increase of $212 million, projected to be effective January 2025. The base rate increase was proposed to recover the significant investment in distribution infrastructure for the benefit of Ohio customers. The proposed rates would provide for an ROE of 10.40% compared to the currently authorized ROE of 10.38%. In addition, East Ohio requested approval for an alternative rate plan for the continuation and modification of certain programs, including PIR and CEP. This matter is pending.

PIR Program

In 2008, East Ohio began PIR, aimed at replacing approximately 25% of its pipeline system. The Ohio Commission has approved East Ohio’s PIR program for capital investments through 2026 with 3% increases of annual capital expenditures per year.

In April 2023, the Ohio Commission approved East Ohio's application to adjust the PIR recovery rates for 2022 costs. The filing reflects gross plant investment for 2022 of $225 million, cumulative gross plant investment of $2.4 billion and a revenue requirement of $305 million.

CEP Program

In 2011, East Ohio began CEP which enables East Ohio to defer depreciation expense, property tax expense and carrying costs at the debt rate of 6.5% on capital investments not covered by its PIR program to expand, upgrade or replace its infrastructure and information technology systems as well as investments necessary to comply with the Ohio Commission or other government regulations. In April 2022, certain parties filed an appeal with the Supreme Court of Ohio appealing the Ohio Commission’s December 2020 order establishing the CEP rider, including the rate of return utilized in determining the revenue requirement. In September 2023, the Supreme Court of Ohio affirmed the Ohio Commission's December 2020 order.

In September 2023, the Ohio Commission approved adjustments to CEP cost recovery rates for 2022 costs. The approved rates reflect gross plant investment for 2022 of $195 million, cumulative gross plant investment of $1.3 billion and a revenue requirement of $151 million.

UEX Rider

East Ohio has approval for a UEX rider through which it recovers the bad debt expense of most customers not participating in the PIPP Plus Program. The UEX rider is adjusted annually to achieve dollar for dollar recovery of East Ohio's actual write-offs of uncollectible amounts.

In July 2023, the Ohio Commission approved East Ohio's application to adjust its UEX rider to reflect an annual revenue requirement of $23 million to provide for recovery of an under-recovered accumulated bad debt expense of $9 million as of March 31, 2023, and recovery of net bad debt expense projected to total $14 million for the twelve-month period ending March 2024.

Utah Regulation

Purchased Gas

In February 2023, Questar Gas filed an application with the Utah Commission seeking approval for a $92 million gas cost increase with rates effective March 2023. Subsequently in February 2023, the Utah Commission approved a $164 million gas cost increase reflecting additional undercollected gas costs incurred in January 2023.

Note 14. Leases

Other than the items discussed below, there have been no significant changes regarding the Companies’ leases as described in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Dominion Energy’s Consolidated Statements of Income include $7 million and $18 million for the three and nine months ended September 30, 2023, respectively, and $6 million and $17 million for the three and nine months ended September 30, 2022, respectively, of rental revenue included in operating revenue. Dominion Energy’s Consolidated Statements of Income include less than $1 million and $4 million for the three and nine months ended September 30, 2023, respectively, and $9 million and $26 million for the three and nine months ended September 30, 2022, respectively, of depreciation expense included in depreciation, depletion and amortization related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

Offshore Wind Vessel Leasing Arrangement

In December 2020, Dominion Energy signed an agreement (subsequently amended in December 2022 and May 2023) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel. This vessel is designed to handle current turbine technologies as well as next generation turbines. The lessor is providing equity and has obtained financing commitments from debt investors, totaling $625 million, to fund the estimated project costs. The project is expected to be completed in late 2024 or early 2025. Dominion Energy has been appointed to act as the construction agent for the lessor, during which time Dominion Energy will request cash draws from the lessor and debt investors to fund all project costs, which totaled $383 million as of September 30, 2023. If the project is terminated under certain events of default, Dominion Energy could be required to pay up to 100% of the then funded amount.

The initial lease term will commence once construction is substantially complete and the vessel is delivered and will mature in November 2027. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional term, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the outstanding project costs or, (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the outstanding project costs, Dominion Energy may be required to make a payment to the lessor for the difference between the outstanding project costs and sale proceeds. Dominion Energy is not considered the owner during construction for financial accounting purposes and, therefore, will not reflect the construction activity in its consolidated financial statements. Dominion Energy expects to recognize a right-of-use asset and a corresponding finance lease liability at the commencement of the lease term. Dominion Energy will be considered the owner of the leased property for tax purposes, and as a result, will be entitled to tax deductions for depreciation and interest expense.

Note 15. Variable Interest Entities

There have been no significant changes regarding the entities the Companies consider VIEs as described in Note 16 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. Following the completion of the sale of its 50% noncontrolling interest in Cove Point, as discussed in Note 10, Dominion Energy no longer has a variable interest in Cove Point, an entity which it had concluded was a VIE.

Virginia Power

Virginia Power purchased shared services from DES, an affiliated VIE, of $113 million and $96 million for the three months ended September 30, 2023 and 2022, respectively, and $339 million and $290 million for the nine months ended September 30, 2023 and

2022, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of $29 million and $28 million at September 30, 2023 and December 31, 2022, respectively, recorded in payables to affiliates.

Note 16. Significant Financing Transactions

Credit Facilities and Short-term Debt

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties. Other than the items discussed below, there have been no significant changes regarding the Companies’ credit facilities and short-term debt as described in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Dominion Energy

Dominion Energy’s short-term financing is supported by its $6.0 billion joint revolving credit facility that provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives.

At September 30, 2023, Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility, were as follows:


	Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available
(millions)
Joint revolving credit facility(1)	$	6,000	$	3,362	$	16	$	2,622

(1)

*This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $*2.0 billion of letters of credit.

DESC and Questar Gas’ short-term financings are supported through access as co-borrowers to the joint revolving credit facility discussed above with the Companies. At September 30, 2023, the sub-limits for DESC and Questar Gas were $500 million and $250 million, respectively.

In March 2023, FERC granted DESC authority through March 2025 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $2.2 billion outstanding with maturity dates of one year or less. In addition, in March 2023, FERC granted GENCO authority through March 2025 to issue short-term indebtedness not to exceed $200 million outstanding with maturity dates of one year or less.

In addition to the credit facility mentioned above and Virginia Power's letter of credit facilities mentioned below, Dominion Energy also has a credit facility which allows Dominion Energy to issue up to approximately $30 million in letters of credit and will mature in June 2024. At both September 30, 2023 and December 31, 2022, Dominion Energy had $25 million in letters of credit outstanding under this facility.

In March 2023, Dominion Energy entered into an agreement with a financial institution which it expects to allow it to issue up to $100 million in letters of credit. At September 30, 2023, $57 million in letters of credit were issued and outstanding under this agreement.

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 as disclosed in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. At September 30, 2023 and December 31, 2022, Dominion Energy’s Consolidated Balance Sheets include $423 million and $347 million, respectively, with respect to such notes presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

In January 2023, Dominion Energy entered into a $2.5 billion 364-Day term loan facility which bears interest at a variable rate and will mature in January 2024 with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes. Concurrently, Dominion Energy borrowed an initial $1.0 billion with the proceeds used to repay long-term debt. In February and March 2023, Dominion Energy borrowed $500 million and $1.0 billion, respectively, with the proceeds used for general corporate purposes and to repay long-term debt. At September 30, 2023, Dominion Energy's Consolidated

Balance Sheet includes $2.5 billion with respect to such facility presented within securities due within one year. The maximum allowed total debt to total capital ratio under the facility is 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/or 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 10. 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 connection with the sale of Dominion Energy's remaining noncontrolling interest in Cove Point, as discussed in Note 10, related credit facilities that allowed DECP Holdings to issue up to $110 million in letters of credit were cancelled in September 2023.

In October 2023, Dominion Energy entered into a $2.25 billion 364-Day term loan facility which bears interest at a variable rate and will mature in October 2024 with the proceeds to be used for general corporate purposes. 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. Dominion Energy is permitted to make up to three additional borrowings under the agreement through February 2024, at which point any unused capacity will cease to be available to Dominion Energy. Dominion Energy also has the ability through August 2024 to request an increase in the amount of this facility by up to an additional $500 million. The agreement contains 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. The maximum allowed total debt to total capital ratio under this facility is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

Virginia Power

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

At September 30, 2023, Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy, Questar Gas and DESC was as follows:


	Facility Limit(1)		Outstanding Commercial Paper		Outstanding Letters of Credit
(millions)
Joint revolving credit facility(1)	$	6,000	$	942	$	10

(1)

The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy, Questar Gas 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 September 30, 2023*, the sub-limit for Virginia Power was $*1.75 *billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $*2.0 billion (or the sub-limit, whichever is less) of letters of credit.

In January 2023, Virginia Power entered into a letter of credit facility which allows Virginia Power to issue up to $125 million in letters of credit and matures in January 2026. At September 30, 2023, less than $1 million in letters of credit were issued and outstanding under this facility with no amounts drawn under the letters of credit.

In March 2023, Virginia Power entered into an agreement with a financial institution, which it expects to allow it to issue up to $200 million in letters of credit. At September 30, 2023, $70 million in letters of credit were issued and outstanding under this agreement.

Long-term Debt

Unless otherwise noted, the proceeds of long-term debt issuances were used for general corporate purposes and/or to repay short-term debt.

In March 2023, Dominion Energy borrowed $450 million under its Sustainability Revolving Credit Agreement, which, as described in Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, matures in 2024 and bears interest at a variable rate 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. At September 30, 2023 and December 31, 2022, Dominion Energy’s Consolidated Balance Sheets include $900 million and $450 million, respectively, with respect to this facility. In October 2023, Dominion Energy repaid $450 million borrowed for general corporate purposes.

In March 2023, Virginia Power issued $750 million of 5.00% senior notes and $750 million of 5.45% senior notes that mature in 2033 and 2053, respectively.

In June 2023, Virginia Power remarketed three series of tax-exempt bonds, with an aggregate outstanding principal of $160 million to new investors. All three series of bonds will bear interest at a coupon of 3.65% until October 2027, after which they will bear interest at a market rate to be determined at that time.

In August 2023, Virginia Power issued $400 million of 5.30% senior notes and $600 million of 5.70% senior notes that mature in 2033 and 2053, respectively.

In connection with the sale of Dominion Energy's interest in Cove Point, described further in Note 10, DECP Holdings' outstanding term loan balance of $2.2 billion was repaid in September 2023. This term loan was scheduled to mature in December 2024.

In October 2023, DESC issued $500 million of 6.25% first mortgage bonds that mature in 2053.

In November 2023, PSNC completed pricing and expects to issue through private placement in November 2023 $75 million of 6.16% and $75 million of 6.73% senior notes that will mature in 2033 and 2053, respectively.

Derivative Restructuring

In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900 million, extending the mandatory termination dates, as discussed in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. In March 2023, Virginia Power settled the remaining outstanding interest rate swaps which would have otherwise matured in December 2023, resulting in a $448 million reduction in securities due within one year.

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At September 30, 2023 and December 31, 2022, Dominion Energy had issued and outstanding 1.8 million shares of preferred stock, 0.8 million and 1.0 million of which were designated as the Series B Preferred Stock and the Series C Preferred Stock, respectively.

Dominion Energy recorded dividends of $12 million ($7.292 per share) for the nine months ended September 30, 2022, on the Series A Preferred Stock. In addition, Dominion Energy recorded interest expense of $5 million and $7 million on the Series A Preferred Stock for the three and nine months ended September 30, 2022, following the reclassification of these shares to a mandatorily redeemable liability effective June 2022. Dominion Energy recorded dividends of $9 million ($11.625 per share) for both the three months ended September 30, 2023 and 2022 and $27 million ($34.875 per share) for both the nine months ended September 30, 2023 and 2022 on the Series B Preferred Stock. Dominion Energy recorded dividends of $11 million ($10.875 per share) for both the three months ended September 30, 2023 and 2022 and $33 million ($32.625 per share) for both the nine months ended September 30, 2023 and 2022 on the Series C Preferred Stock.

There have been no significant changes to Dominion Energy’s Series B Preferred Stock and Series C Preferred Stock as described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

2019 Corporate Units

The 2019 Equity Units, initially issued in the form of 2019 Series A Corporate Units, are described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Pursuant to the terms of the 2019 Equity Units, Dominion Energy conducted a final remarketing of substantially all shares of Series A Preferred Stock in May 2022 which resulted in the dividend rate for all shares of Series A Preferred Stock being reset to 1.75% for the June 2022 through August 2022 dividend period and 6.75% effective September 2022. The conversion rate on the Series A Preferred Stock did not increase as a result of the remarketing. In May 2022, Dominion Energy received a commitment from a financial institution to purchase up to 1.6 million shares of the Series A Preferred Stock in the final remarketing. Accordingly, following the settlement of the successful remarketing and approval from its Board of Directors in June 2022, Dominion Energy became obligated to redeem all outstanding shares of Series A Preferred Stock in September 2022. As such, effective June 2022, the Series A Preferred Stock was considered to be mandatorily redeemable and was classified as a current liability. In addition, Dominion Energy made a short-term deposit at the financial institution as described further in Note 10. Proceeds from the final remarketing were used on behalf of holders of 2019 Series A Corporate Units at the time of the remarketing to pay the purchase price to Dominion Energy for the issuance of its common stock under the stock purchase contracts included in such corporate units in June 2022.

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, $91 million from the issuance of 2 million shares of common stock for the nine months ended September 30, 2023 and $134 million from the issuance of 2 million shares of common stock for the nine months ended September 30, 2022, through various programs including Dominion Energy Direct® and employee savings plans as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans.

In May 2022, Dominion Energy issued 0.9 million shares of its common stock, valued at $72 million, to partially satisfy DESC’s remaining obligation under a settlement agreement with the SCDOR discussed in Note 17.

In June 2022, Dominion Energy issued 0.4 million shares of its common stock, valued at $30 million, to partially satisfy its obligation under a settlement agreement for the State Court Merger Case discussed in Note 17.

In June 2022, Dominion Energy issued 19.4 million shares to settle the stock purchase contract component of the 2019 Equity Units and received proceeds of $1.6 billion.

In October and November 2023, Virginia Power issued 39,455 shares of its common stock to Dominion Energy for $2.6 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 in order 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.

At-the-Market Program

In August 2020, Dominion Energy entered into sales agency agreements to effect sales under an at-the-market program as discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December 31, 2022. Dominion Energy did not issue any shares or enter into any forward sale agreements under this program in 2023 prior to its expiration in June 2023.

Repurchase of Common Stock

In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock in addition to the $3.0 billion repurchase program authorized in July 2020 and completed in December 2020 as discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December 31, 2022.

Dominion Energy did not repurchase any shares of common stock during the nine months ended September 30, 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.

Note 17. 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, states are required to establish regulatory programs 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 is 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. Until implementation plans for the 2015 ozone standards are fully developed and approved 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.

ACE Rule

In July 2019, the EPA published the final rule informally referred to as the ACE Rule, as a replacement for the Clean Power Plan. The ACE Rule regulated GHG emissions from existing coal-fired power plants pursuant to Section 111(d) of the CAA and required states to develop plans by July 2022 establishing unit-specific performance standards for existing coal-fired power plants. In January 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the ACE Rule and remanded it to the EPA. This decision would take effect upon issuance of the court’s mandate. In March 2021, the court issued a partial mandate vacating and remanding all parts of the ACE Rule except for the portion of the ACE Rule that repealed the Clean Power Plan. In October 2021, the U.S. Supreme Court agreed to hear a challenge of the U.S. Court of Appeals for the D.C. Circuit’s decision on the ACE Rule. In June 2022, the U.S. Supreme Court reversed the D.C. Circuit’s decision on the ACE Rule and remanded the case back to the D.C. Circuit. In May 2023, the EPA proposed to repeal the ACE Rule as part of a package of proposed rules addressing CO2 emissions from new and existing fossil fuel-fired electric generating units. Until the EPA takes final action on this proposed rulemaking, the Companies cannot predict an impact to its 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.

In December 2018, the EPA proposed revised Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources. The proposed rule would amend the previous determination that the best system of emission reduction for newly constructed coal-fired steam generating units is no longer partial carbon capture and storage. Instead, the proposed revised best system of emission reduction for this source category is the most efficient demonstrated steam cycle (e.g., supercritical steam conditions for large units and subcritical steam conditions for small units) in combination with best operating practices. The proposed revision to the performance standards for coal-fired steam generating units remains pending. 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 15 and nine 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 extends the latest dates for compliance. Individual facilities’ compliance dates will vary based on circumstances and the determination by state regulators and may range from 2021 to 2028. 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.

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 13 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 commenced remediation activities at one site in the second quarter of 2022. In addition, Dominion Energy has proposed remediation plans for one site at Virginia Power and expects to commence remediation activities in 2024 depending on receipt of final permits and approvals. At September 30, 2023 and December 31, 2022, Dominion Energy had $42 million and $47 million, respectively, and Virginia Power had $25 million at both periods, of reserves recorded. Dominion Energy is associated with 12 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.

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.

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. In addition, certain legal matters which have been resolved are discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. 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 September 30, 2023 and December 31, 2022 include reserves of $3 million and $94 million, respectively, included in other current liabilities, and insurance receivables of $26 million and $68 million, respectively, included within other receivables. The balance at December 31, 2022 includes $68 million of offsetting reserves and insurance receivables related to personal injury or wrongful death cases which were pending. During both the three and nine months ended September 30, 2023 and 2022, charges included in Dominion Energy's Consolidated Statements of Income were inconsequential.

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 August 2021, Dominion Energy issued 0.6 million shares of its common stock to satisfy DESC’s obligation for the initial payment under the settlement agreement. In May 2022, Dominion Energy issued an additional 0.9 million shares of its common stock to partially satisfy DESC’s remaining 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 September 2022, DESC transferred certain non-utility property with a fair value of $28 million to the SCDOR under the settlement agreement. In December 2022, DESC transferred additional utility property with a fair value of $3 million to the SCDOR. 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 losses (gains) on sales of assets in Dominion Energy’s Consolidated Statements of Income for the nine months ended September 30, 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 losses (gains) on sales of assets in Dominion Energy's Consolidated Statements of Income for the nine months ended September 30, 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 Insurance

There have been no significant changes regarding the Companies’ nuclear insurance as described in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

Spent Nuclear Fuel

As discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022, 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.

Guarantees, Surety Bonds and Letters of Credit

At September 30, 2023, Dominion Energy had issued four guarantees related to Cove Point, previously an equity method investment, in support of terminal services, transportation and construction. Two of the Cove Point guarantees have a cumulative maximum exposure of $1.9 billion while the other two guarantees have no maximum limit. No amounts related to these guarantees have been recorded.

In addition, at September 30, 2023, Dominion Energy had issued an additional $20 million of guarantees, primarily to support third parties. No amounts related to these guarantees have been recorded.

Dominion Energy also 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 September 30, 2023, Dominion Energy had issued the following subsidiary guarantees:


	Maximum Exposure
(millions)
Commodity transactions(1)	$	2,856
Nuclear obligations(2)		245
Solar(3)		217
Other(4)		1,199
Total(5)(6)	$	4,517

(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. Also includes guarantees entered into by Dominion Energy RNG Holdings II, Inc. on behalf of a subsidiary to facilitate construction of renewable natural gas facilities. 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 14.

(6)

In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia. The lessor provided equity and obtained financing commitments from debt investors, totaling $365 million, which funded total project costs. The project became substantially complete in August 2019 at which point the facility was available for Dominion Energy’s use and the five-year lease term commenced. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional five years, 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, up to 87*% of project costs, for the difference between the project costs and sale proceeds. At* September 30, 2023*,* no amounts have been recorded related to this guarantee.

Additionally, at September 30, 2023, Dominion Energy had purchased $304 million of surety bonds, including $201 million at Virginia Power and $37 million related to entities held for sale, and authorized the issuance of letters of credit by financial institutions of $16 million 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.

Note 18. Credit Risk

The Companies’ accounting policies for credit risk are discussed in Note 24 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022.

At September 30, 2023, Dominion Energy’s credit exposure totaled $205 million, primarily related to price risk management activities. Of this amount, investment grade counterparties, including those internally rated, represented 86%. No single counterparty, whether investment grade or non-investment grade, exceeded $42 million of exposure. At September 30, 2023, Virginia Power’s exposure related to wholesale customers totaled $73 million. Of this amount, investment grade counterparties, including those internally rated, represented 67%. No single counterparty, whether investment grade or non-investment grade, exceeded $10 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 and Virginia Power would have been required to post additional collateral to its counterparties of $82 million and $38 million, respectively, as of September 30, 2023, and $140 million and $28 million, respectively, as of December 31, 2022. 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. Dominion Energy had posted collateral of $1 million at September 30, 2023, and both Dominion Energy and Virginia Power had posted $72 million at December 31, 2022, related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. Virginia Power had no such collateral posted at September 30, 2023. In addition, Dominion Energy and Virginia Power had both posted letters of credit as collateral with counterparties covering $4 million and $20 million of fair value of derivative instruments in a liability position at September 30, 2023 and December 31, 2022, respectively. The aggregate fair value of all derivative instruments with credit related contingent provisions that are in a liability position and not fully collateralized with cash for Dominion Energy and Virginia Power was $83 million and $38 million, respectively, as of September 30, 2023 and $212 million and $99 million, respectively, as of December 31, 2022, which does not include the impact of any offsetting asset positions.

See Note 9 for additional information about derivative instruments.

Note 19. Related-Party Transactions

Dominion Energy’s transactions with equity method investments are described in Note 10. 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. 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. At September 30, 2023, Virginia Power’s derivative assets and liabilities with affiliates were $2 million and $56 million, respectively. At December 31, 2022, Virginia Power’s derivative assets and liabilities with affiliates were $33 million and $31 million, respectively. See Note 9 for additional information.

Virginia Power participates in certain Dominion Energy benefit plans described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2022. At September 30, 2023 and December 31, 2022, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were $447 million and $422 million, respectively. At September 30, 2023 and December 31, 2022, Virginia Power's amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were $566 million and $518 million, respectively.

DES and other affiliates provide accounting, legal, finance and certain administrative and technical services and licenses 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:



	Quarter-to-Date				Year-to-Date
Period Ended September 30,	2023		2022		2023		2022
(millions)
Commodity purchases from affiliates	$	146	$	515	$	463	$	1,099
Services provided by affiliates(1)		149		125		441		378
Services provided to affiliates		7		4		15		13

(1)

*Includes capitalized expenditures of $*51 *million and $44 million for the three months ended September 30, 2023 and 2022, respectively, and $*151 million and $122 million for the nine months ended September 30, 2023 and 2022, respectively.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were $1.8 billion and $2.0 billion in short-term demand note borrowings from Dominion Energy as of September 30, 2023 and December 31, 2022, respectively. Virginia Power had no outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of September 30, 2023 and December 31, 2022. Interest charges related to Virginia Power’s borrowings from Dominion Energy were $27 million and $72 million for the three and nine months ended September 30, 2023, respectively, and inconsequential for the three and nine months ended September 30, 2022.

There were no issuances of Virginia Power’s common stock to Dominion Energy for the three and nine months ended September 30, 2023 and 2022. In October and November 2023, Virginia Power issued common stock to Dominion Energy as discussed in Note 16.

In January 2023, Virginia Power entered into a lease contract with an affiliated entity for the use of a Jones Act compliant offshore wind installation vessel currently under development with commencement of the 20-month lease term in August 2025 at a total cost of approximately $240 million plus ancillary services.

Note 20. Employee Benefit Plans

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 $4 million and $12 million for the three and nine months ended September 30, 2023, respectively, and $7 million and $19 million for the three and nine months ended September 30, 2022, respectively, presented in discontinued operations. The non-service cost components of net periodic benefit (credit) cost are reflected in other income (expense) in Dominion Energy's Consolidated Statements of Income, except for $(11) million and $(34) million for the three and nine months ended September 30, 2023, respectively, and $(11) million and $(32) million for the three and nine months ended September 30, 2022, respectively, presented in discontinued operations. The components of Dominion Energy’s provision for net periodic benefit cost (credit) are as follows:


	Pension Benefits												Other Postretirement Benefits
	Quarter-to-Date						Year-to-Date						Quarter-to-Date						Year-to-Date
Period Ended September 30,	2023			2022			2023			2022			2023			2022			2023			2022
(millions)
Service cost	$	24		$	35		$	72		$	106		$	3		$	5		$	10		$	16
Interest cost		111			83			332			250			15			11			46			34
Expected return on plan assets		(216	)		(221	)		(648	)		(667	)		(37	)		(47	)		(113	)		(143	)
Amortization of prior service cost (credit)		—			—			—			—			(10	)		(10	)		(28	)		(29	)
Amortization of net actuarial (gain) loss		—			39			—			119			(1	)		—			(4	)		(1	)
Curtailment(1)		—			—			—			—			—			(8	)		—			(8	)
Net periodic benefit (credit) cost	$	(81	)	$	(64	)	$	(244	)	$	(192	)	$	(30	)	$	(49	)	$	(89	)	$	(131	)

(1) 2022 amounts relate primarily to Dominion Energy's sale of Hope.

Employer Contributions

During the three and nine months ended September 30, 2023, Dominion Energy made no contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy is not required to make any contributions to its qualified defined

benefit pension plans or to VEBAs associated with its other postretirement plans in 2023. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities.

Note 21. 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 effective September 2023 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(3)	X

(1)

Includes Virginia Power’s non-jurisdictional solar generation operations.

(2)

Includes renewable natural gas operations.

(3)

Includes solar generation facility development 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 effective September 2023 includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization, its noncontrolling interest in Wrangler (through March 2022) and Hope (through August 2022). 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, as well as the net impact of the operations included in the East Ohio, PSNC and Questar Gas Transactions, its noncontrolling interest in Cove Point and gas transmission and storage operations, including its noncontrolling interest in Atlantic Coast Pipeline, reported as discontinued operations which are discussed in Notes 3 and 10 as well as Notes 3 and 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.

In the nine months ended September 30, 2023, Dominion Energy reported after-tax net income of $26 million in the Corporate and Other segment, including $231 million of after-tax net income for specific items with $245 million of after-tax net income attributable to its operating segments. In the nine months ended September 30, 2022, Dominion Energy reported after-tax net expenses of $1.0 billion in the Corporate and Other segment, including $1.0 billion of after-tax net expenses for specific items with $1.9 billion of after-tax net expenses attributable to its operating segments.

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 $335 million ($255 million after-tax) gain related to economic hedging activities, attributable to Contracted Energy;

A $183 million ($142 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

Contracted Energy ($124 million after-tax); and

Dominion Energy Virginia ($18 million after-tax);

A $183 million ($136 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;

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; and

A $31 million ($23 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.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2022 primarily related to the impact of the following items:

A $691 million ($536 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

Contracted Energy ($465 million after-tax); and

Dominion Energy Virginia ($71 million after-tax);

A $649 million ($513 million after-tax) loss associated with the sale of Kewaunee, attributable to Contracted Energy;

A $391 million ($296 million after-tax) loss related to economic hedging activities, attributable to Contracted Energy;

A $213 million ($159 million after-tax) charge for RGGI compliance costs deemed recovered through base rates, attributable to Dominion Energy Virginia;

A $191 million ($142 million after-tax) charge in connection with a comprehensive settlement agreement for Virginia fuel expenses, attributable to Dominion Energy Virginia;

A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia; and

A $60 million ($45 million after-tax) charge for dismantling costs associated with certain retired electric generation facilities, attributable to Dominion Energy Virginia.

The following table presents segment information pertaining to Dominion Energy’s operations:


	Dominion Energy Virginia			Dominion Energy South Carolina		Contracted Energy		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended September 30, 2023
Total revenue from external customers	$	2,649		$	944	$	226	$	(9	)	$	—		$	3,810
Intersegment revenue		(4	)		1		6		231			(234	)		—
Total operating revenue		2,645			945		232		222			(234	)		3,810
Net loss from discontinued operations		—			—		—		(554	)		—			(554	)
Net income (loss) attributable to Dominion Energy		532			143		54		(566	)		—			163
Three Months Ended September 30, 2022
Total revenue from external customers	$	2,870		$	915	$	240	$	(62	)	$	—		$	3,963
Intersegment revenue		(5	)		2		5		206			(208	)		—
Total operating revenue		2,865			917		245		144			(208	)		3,963
Net income from discontinued operations		—			—		—		152			—			152
Net income (loss) attributable to Dominion Energy		618			175		65		(80	)		—			778
Nine Months Ended September 30, 2023
Total revenue from external customers	$	7,285		$	2,559	$	660	$	355		$	—		$	10,859
Intersegment revenue		(5	)		4		14		691			(704	)		—
Total operating revenue		7,280			2,563		674		1,046			(704	)		10,859
Net loss from discontinued operations		—			—		—		(105	)		—			(105	)
Net income attributable to Dominion Energy		1,308			302		123		26			—			1,759
Nine Months Ended September 30, 2022
Total revenue from external customers	$	7,212		$	2,525	$	645	$	(247	)	$	—		$	10,135
Intersegment revenue		(12	)		6		15		625			(634	)		—
Total operating revenue		7,200			2,531		660		378			(634	)		10,135
Net income from discontinued operations		—			—		—		775			—			775
Net income (loss) attributable to Dominion Energy		1,576			408		95		(1,043	)		—			1,036

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.

In the nine months ended September 30, 2023, Virginia Power reported after-tax net expenses of $150 million in the Corporate and Other segment, including $156 million of after-tax net expenses for specific items with $154 million of after-tax net expenses attributable to its operating segment. In the nine months ended September 30, 2022, Virginia Power reported after-tax net expenses of $601 million in the Corporate and Other segment, including $641 million of after-tax net expenses for specific items with $635 million of after-tax net expenses attributable to its operating segment.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2023 primarily related to the impact of the following items:

A $183 million ($136 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review;

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 $24 million ($18 million after-tax) gain related to investments in nuclear decommissioning trust funds.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2022 primarily related to the impact of the following items:

A $213 million ($159 million after-tax) charge for RGGI compliance costs deemed recovered through base rates;

A $191 million ($142 million after-tax) charge in connection with a comprehensive settlement agreement for Virginia fuel expenses;

A $183 million ($136 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review;

A $96 million ($71 million after-tax) loss related to investments in nuclear decommissioning trust funds;

A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in its service territory; and

A $60 million ($45 million after-tax) charge for dismantling costs associated with certain retired electric generation facilities.

The following table presents segment information pertaining to Virginia Power’s operations:


	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended September 30, 2023
Operating revenue	$	2,645	$	—		$	2,645
Net income (loss)		532		(59	)		473
Three Months Ended September 30, 2022
Operating revenue	$	2,865	$	10		$	2,875
Net income (loss)		618		(47	)		571
Nine Months Ended September 30, 2023
Operating revenue	$	7,280	$	—		$	7,280
Net income (loss)		1,308		(150	)		1,158
Nine Months Ended September 30, 2022
Operating revenue	$	7,200	$	17		$	7,217
Net income (loss)		1,576		(601	)		975

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