Item 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

		Three Months Ended March 31,
		2024				2023
(millions, except per share amounts)
Operating Revenue		$	3,632			$	3,883
Operating Expenses
Electric fuel and other energy-related purchases			959				1,022
Purchased electric capacity			12				8
Purchased gas			120				123
Other operations and maintenance			856				742
Depreciation and amortization			621				622
Other taxes			202				191
Impairment of assets and other charges			30				98
Losses (gains) on sales of assets			**(**1	)			(2	)
Total operating expenses			2,799				2,804
Income from operations			833				1,079
Other income (expense)			435				276
Interest and related charges			574				479
Income from continuing operations including noncontrolling interests before income tax expense			694				876
Income tax expense			134				176
Net Income From Continuing Operations			560				700
Net Income From Discontinued Operations**(1)**			114				281
Net Income Including Noncontrolling Interests			674				981
Noncontrolling Interests			—				—
Net Income Attributable to Dominion Energy		$	674			$	981
Amounts attributable to Dominion Energy
Net income from continuing operations		$	560			$	700
Net income from discontinued operations			114				281
Net income attributable to Dominion Energy		$	674			$	981
EPS - Basic
Net income from continuing operations		$	0.64			$	0.81
Net income from discontinued operations			0.14				0.34
Net income attributable to Dominion Energy		$	0.78			$	1.15
EPS - Diluted
Net income from continuing operations		$	0.64			$	0.81
Net income from discontinued operations			0.14				0.34
Net income attributable to Dominion Energy		$	0.78			$	1.15

(1)

*Includes income tax expense of $*51 million and $56 million for the three months ended March 31, 2024 and 2023, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

		Three Months Ended March 31,
		2024				2023
(millions)
Net income including noncontrolling interests		$	674			$	981
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)			7				(9	)
Changes in unrealized net gains (losses) on investment securities(2)			**(**26	)			17
Changes in net unrecognized pension and other postretirement benefit costs(3)			**(**237	)			—
Amounts reclassified to net income (loss):
Net derivative (gains) losses-hedging activities(4)			7				8
Net realized (gains) losses on investment securities(5)			6				1
Net pension and other postretirement benefit costs (credits)(6)			5				(11	)
Changes in other comprehensive income from equity method investees(7)			—				1
Total other comprehensive income (loss)			**(**238	)			7
Comprehensive income including noncontrolling interests			436				988
Comprehensive income attributable to noncontrolling interests			—				—
Comprehensive income attributable to Dominion Energy		$	436			$	988

(1) Net of $**(1) million and $3 million tax for the three months ended March 31, 2024 and 2023, respectively.

(2) Net of $10 million and $**(7) million tax for the three months ended March 31, 2024 and 2023, respectively.

(3) *Net of $*84 million and $— million tax for the three months ended March 31, 2024 and 2023, respectively.

(4) Net of $**(4) million and $**(3) million tax for the three months ended March 31, 2024 and 2023*, respectively.*

(5) Net of $**(2) million and $**(1) million tax for the three months ended March 31, 2024 and 2023*, respectively.*

(6) Net of $**(1) million and $4 million tax for the three months ended March 31, 2024 and 2023, respectively.

(7) Net of $— million and $— million tax for the three months ended March 31, 2024 and 2023, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

		March 31, 2024				December 31, 2023(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents		$	265			$	184
Customer receivables (less allowance for doubtful accounts of $39 and $38)			2,148				2,251
Other receivables (less allowance for doubtful accounts of $1 at both periods)			241				258
Inventories			1,719				1,698
Regulatory assets(2)			1,092				1,309
Other(2)			1,018				1,158
Current assets held for sale			9,706				18,529
Total current assets			16,189				25,387
Investments
Nuclear decommissioning trust funds			7,418				6,946
Investment in equity method affiliates			137				268
Other			339				324
Total investments			7,894				7,538
Property, Plant and Equipment
Property, plant and equipment			85,497				83,417
Accumulated depreciation and amortization			**(**24,941	)			(24,637	)
Total property, plant and equipment, net			60,556				58,780
Deferred Charges and Other Assets
Goodwill			4,143				4,143
Regulatory assets(2)			7,859				8,356
Other			5,364				4,828
Total deferred charges and other assets			17,366				17,327
Total assets		$	102,005			$	109,032

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 15 for amounts attributable to VIEs.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

		March 31, 2024				December 31, 2023(1)
(millions)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Securities due within one year(2)		$	2,344			$	6,589
Supplemental credit facility borrowings			450				450
Short-term debt			3,626				3,956
Accounts payable			721				921
Accrued interest, payroll and taxes(2)			1,286				1,075
Regulatory liabilities			512				522
Other(3)			2,093				2,078
Current liabilities held for sale			4,386				8,885
Total current liabilities			15,418				24,476
Long-Term Debt
Long-term debt			32,960				32,368
Securitization bonds(2)			1,217				—
Junior subordinated notes			688				688
Other			199				192
Total long-term debt			35,064				33,248
Deferred Credits and Other Liabilities
Deferred income taxes			6,421				6,611
Deferred investment tax credits			1,089				1,098
Regulatory liabilities			9,043				8,674
Other			7,549				7,396
Total deferred credits and other liabilities			24,102				23,779
Total liabilities			74,584				81,503
Commitments and Contingencies (see Note 17)
Shareholders’ Equity
Preferred stock (see Note 16)			1,783				1,783
Common stock – no par(4)			23,763				23,728
Retained earnings			3,619				3,524
Accumulated other comprehensive loss			**(**1,744	)			(1,506	)
Shareholders’ equity			27,421				27,529
Noncontrolling interests			—				—
Total shareholders’ equity			27,421				27,529
Total liabilities and shareholders’ equity		$	102,005			$	109,032

(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2) See Note 15 for amounts attributable to VIEs.

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

(4) 1.8 billion shares authorized; 838 million shares outstanding at both March 31, 2024 and December 31, 2023*.*

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

	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, 2022		2		$	1,783			835		$	23,605		$	3,843		$	(1,572	)	$	27,659		$	—		$	27,659
Net income including noncontrolling interests														981						981			—			981
Issuance of stock								1			43									43						43
Stock awards (net of change in unearned compensation)											4									4						4
Preferred stock dividends (see Note 16)														(20	)					(20	)					(20	)
Common stock dividends ($0.6675 per common share) and distributions														(557	)					(557	)		—			(557	)
Other comprehensive income, net of tax																	7			7						7
Other														1						1						1
March 31, 2023		2		$	1,783			836		$	23,652		$	4,248		$	(1,565	)	$	28,118		$	—		$	28,118
December 31, 2023		2		$	1,783			838		$	23,728		$	3,524		$	(1,506	)	$	27,529		$	—		$	27,529
Net income including noncontrolling interests														674						674			—			674
Issuance of stock								—			31									31						31
Stock awards (net of change in unearned compensation)								—			4									4						4
Preferred stock dividends (see Note 16)														**(**20	)					**(**20	)					**(**20	)
Common stock dividends ($0.6675 per common share) and distributions														**(**559	)					**(**559	)		—			**(**559	)
Other comprehensive loss, net of tax																	**(**238	)		**(**238	)					**(**238	)
March 31, 2024		2		$	1,783			838		$	23,763		$	3,619		$	**(**1,744	)	$	27,421		$	—		$	27,421

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,		2024				2023
(millions)
Operating Activities
Net income including noncontrolling interests		$	674			$	981
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization (including nuclear fuel)			694				803
Deferred income taxes			**(**160	)			191
Deferred investment tax credits			**(**10	)			(5	)
Impairment of assets and other charges			109				98
Loss from East Ohio Transaction			102				—
Net gains on nuclear decommissioning trust funds and other investments			**(**294	)			(134	)
Other adjustments			59				23
Changes in:
Accounts receivable			133				519
Inventories			16				(21	)
Deferred fuel and purchased gas costs, net			495				89
Prepayments and deposits, net			42				333
Accounts payable			**(**126	)			(588	)
Accrued interest, payroll and taxes			153				(161	)
Net realized and unrealized changes related to derivative activities			257				232
Pension and other postretirement benefits			**(**115	)			(122	)
Other operating assets and liabilities			**(**47	)			(141	)
Net cash provided by operating activities			1,982				2,097
Investing Activities
Plant construction and other property additions (including nuclear fuel)			**(**2,769	)			(2,220	)
Acquisition of solar development projects			**(**161	)			(11	)
Proceeds from East Ohio Transaction			4,275				—
Proceeds from sales of securities			695				544
Purchases of securities			**(**757	)			(607	)
Contributions to equity method affiliates			**(**7	)			(10	)
Distributions from equity method affiliates			126				1
Other			**(**17	)			1
Net cash provided by (used in) investing activities			1,385				(2,302	)
Financing Activities
Issuance (repayment) of short-term debt, net			**(**330	)			123
364-day term loan facility borrowings			3,000				2,500
Repayment of 364-day term loan facility borrowings			**(**6,774	)			—
Issuance of long-term debt			1,000				1,500
Repayment and repurchase of long-term debt			**(**942	)			(2,197	)
Issuance of securitization bonds			1,282				—
Supplemental credit facility borrowings			—				450
Issuance of common stock			31				43
Common dividend payments			**(**559	)			(557	)
Other			**(**40	)			(42	)
Net cash provided by (used in) financing activities			**(**3,332	)			1,820
Increase in cash, restricted cash and equivalents			35				1,615
Cash, restricted cash and equivalents at beginning of period			301				341
Cash, restricted cash and equivalents at end of period		$	336			$	1,956

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 March 31,
		2024				2023
(millions)
Operating Revenue**(1)**		$	2,489			$	2,384
Operating Expenses
Electric fuel and other energy-related purchases(1)			701				799
Purchased electric capacity			13				8
Other operations and maintenance:
Affiliated suppliers			102				93
Other			429				348
Depreciation and amortization			448				447
Other taxes			93				85
Impairment of assets and other charges (benefits)			**(**17	)			7
Total operating expenses			1,769				1,787
Income from operations			720				597
Other income (expense)			63				36
Interest and related charges(1)			190				181
Income before income tax expense			593				452
Income tax expense			128				97
Net Income		$	465			$	355

(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 March 31,
		2024				2023
(millions)
Net income		$	465			$	355
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities(1)			7				(9	)
Changes in unrealized net gains (losses) on investment securities(2)			**(**5	)			4
Amounts reclassified to net income:
Net realized (gains) losses on investment securities(3)			1				—
Total other comprehensive income (loss)			3				(5	)
Comprehensive income		$	468			$	350

(1)

Net of $**(1) million and $3 million tax for the three months ended March 31, 2024 and 2023, respectively.

(2)

Net of $1 million and $**(1) million tax for the three months ended March 31, 2024 and 2023, respectively.

(3)

Net of $**(1) million and $— million tax for the three months ended March 31, 2024 and 2023*, 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)

		March 31, 2024				December 31, 2023(1)
(millions)
ASSETS
Current Assets
Cash and cash equivalents		$	119			$	90
Customer receivables (less allowance for doubtful accounts of $30 at both dates)			1,620				1,728
Other receivables (less allowance for doubtful accounts of $1 at both dates)			122				121
Affiliated receivables			212				50
Inventories (average cost method)			1,097				1,085
Regulatory assets(2)			744				868
Other(2)(3)			297				375
Total current assets			4,211				4,317
Investments
Nuclear decommissioning trust funds			3,960				3,716
Other			4				4
Total investments			3,964				3,720
Property, Plant and Equipment
Property, plant and equipment			62,668				60,963
Accumulated depreciation and amortization			**(**17,377	)			(17,096	)
Total property, plant and equipment, net			45,291				43,867
Deferred Charges and Other Assets
Regulatory assets(2)			4,352				4,317
Other(3)			2,626				2,397
Total deferred charges and other assets			6,978				6,714
Total assets		$	60,444			$	58,618

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 15 for amounts attributable to VIEs.

(3)

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)

		March 31, 2024				December 31, 2023(1)
(millions)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Securities due within one year(2)		$	100			$	381
Short-term debt			—				455
Accounts payable			453				597
Payables to affiliates			95				111
Affiliated current borrowings			1				500
Accrued interest, payroll and taxes(2)			414				293
Regulatory liabilities			284				321
Other(3)			1,437				1,529
Total current liabilities			2,784				4,187
Long-Term Debt
Long-term debt			18,032				17,043
Securitization bonds(2)			1,217				—
Other			86				72
Total long-term debt			19,335				17,115
Deferred Credits and Other Liabilities
Deferred income taxes			3,931				3,624
Deferred investment tax credits			651				656
Regulatory liabilities			6,343				5,978
Other(3)			5,524				5,401
Total deferred credits and other liabilities			16,449				15,659
Total liabilities			38,568				36,961
Commitments and Contingencies (see Note 17)
Common Shareholder’s Equity
Common stock – no par(4)			8,987				8,987
Other paid-in capital			1,113				1,113
Retained earnings			11,757				11,541
Accumulated other comprehensive income			19				16
Total common shareholder’s equity			21,876				21,657
Total liabilities and shareholder’s equity		$	60,444			$	58,618

(1)

Virginia Power’s Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Balance Sheet at that date.

(2)

See Note 15 for amounts attributable to VIEs.

(3)

See Note 19 for amounts attributable to affiliates.

(4)

500,000 shares authorized; 324,245 shares outstanding at both March 31, 2024 and December 31, 2023*.*

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)

		Common Stock
		Shares				Amount				Other Paid-In Capital				Retained Earnings				AOCI				Total
(millions, except for shares)		(thousands)
December 31, 2022			275			$	5,738			$	1,113			$	10,089			$	9			$	16,949
Net income															355								355
Other comprehensive loss, net of tax																			(5	)			(5	)
March 31, 2023			275			$	5,738			$	1,113			$	10,444			$	4			$	17,299
December 31, 2023			324			$	8,987			$	1,113			$	11,541			$	16			$	21,657
Net income															465								465
Dividends															**(**250	)							**(**250	)
Other comprehensive income, net of tax																			3				3
Other															1								1
March 31, 2024			324			$	8,987			$	1,113			$	11,757			$	19			$	21,876

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)

Three Months Ended March 31,		2024				2023
(millions)
Operating Activities
Net income		$	465			$	355
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including nuclear fuel)			486				492
Deferred income taxes			284				(1	)
Deferred investment tax benefits			**(**6	)			(4	)
Impairment of assets and other charges (benefits)			**(**17	)			7
Net (gains) on nuclear decommissioning trust funds and other investments			**(**39	)			(19	)
Other adjustments			**(**3	)			10
Changes in:
Accounts receivable			109				348
Affiliated receivables and payables			**(**177	)			(52	)
Inventories			**(**13	)			(39	)
Prepayments and deposits, net			34				260
Deferred fuel expenses, net			131				193
Accounts payable			**(**64	)			(103	)
Accrued interest, payroll and taxes			121				73
Net realized and unrealized changes related to derivative activities			107				449
Other operating assets and liabilities			57				(21	)
Net cash provided by operating activities			1,475				1,948
Investing Activities
Plant construction and other property additions			**(**2,058	)			(1,420	)
Purchases of nuclear fuel			**(**44	)			(52	)
Acquisition of solar development projects			—				(11	)
Proceeds from sales of securities			471				373
Purchases of securities			**(**516	)			(405	)
Other			2				(4	)
Net cash used in investing activities			**(**2,145	)			(1,519	)
Financing Activities
Issuance (repayment) of short-term debt, net			**(**455	)			69
Repayment of affiliated current borrowings, net			**(**499	)			(821	)
Issuance of long-term debt			1,000				1,500
Repayment and repurchase of long-term debt			**(**350	)			(1,148	)
Issuance of securitization bonds			1,282				—
Common dividend payments to parent			**(**250	)			—
Other			**(**23	)			(31	)
Net cash provided by (used in) financing activities			705				(431	)
Increase (decrease) in cash, restricted cash and equivalents			35				(2	)
Cash, restricted cash and equivalents at beginning of period			90				24
Cash, restricted cash and equivalents at end of period		$	125			$	22

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. See Note 3 for a description of the sale of regulated gas distribution operations to Enbridge including the East Ohio Transaction, which was completed in March 2024, and the planned Questar Gas and PSNC Transactions.

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, 2023.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at March 31, 2024, and results of operations, changes in equity and cash flows for the three months ended March 31, 2024 and 2023. 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’ 2023 Consolidated Financial Statements and Notes have been reclassified to conform to the 2024 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, 2023, 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 three months ended March 31, 2024 and 2023:

		Cash, Restricted Cash and Equivalents at End of Period								Cash, Restricted Cash and Equivalents at Beginning of Period
		March 31, 2024				March 31, 2023				December 31, 2023				December 31, 2022
(millions)
Dominion Energy
Cash and cash equivalents(1)		$	306			$	1,792			$	217			$	153
Restricted cash and equivalents(2)(4)			30				164				84				188
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows		$	336			$	1,956			$	301			$	341
Virginia Power
Cash and cash equivalents		$	119			$	21			$	90			$	22
Restricted cash and equivalents(3)(4)			6				1				—				2
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows		$	125			$	22			$	90			$	24

(1)

At March 31, 2024, March 31, 2023, December 31, 2023 *and December 31, 2022, Dominion Energy had $*41 *million, $*40 *million, $*33 *million and $*34 million, respectively, of cash and cash equivalents included in current assets held for sale.

(2)

At March 31, 2024, March 31, 2023, December 31, 2023 *and December 31, 2022, Dominion Energy had $*4 *million, $*1 *million, $*4 *million and $*2 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.

(4)

*Includes $*6 million attributable to VIEs at March 31, 2024.

Supplemental Cash Flow Information

The following table provides supplemental disclosure of cash flow information related to Dominion Energy:

Three Months Ended March 31,		2024				2023
(millions)
Significant noncash investing and financing activities:(1)
Accrued capital expenditures		$	753			$	671
Leases(2)			161				117

(1)

See Notes 3 and 17 for noncash financing activities related to debt assumed with closing of the East Ohio Transaction and the transfer of property associated with the settlement of litigation.

(2)

*Includes $*26 *million and $32 million of financing leases at March 31, 2024 and 2023, respectively, and $*135 million and $85 million of operating leases at March 31, 2024 and 2023, respectively.

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

Three Months Ended March 31,		2024				2023
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures		$	566			$	460
Leases(1)			142				99

(1)

*Includes $*22 *million and $31 million of financing leases at March 31, 2024 and 2023, respectively, and $*120 million and $68 million of operating leases at March 31, 2024 and 2023, respectively.

New Accounting Standards

Climate-Related Disclosures

In March 2024, the SEC issued guidance for climate-related disclosures. The guidance requires disclosure of the financial statement impacts of severe weather events and other natural conditions, including amounts capitalized or expensed as well as any associated recoveries. In addition, the guidance requires disclosure of amounts related to renewable energy credits or carbon offsets if utilized as

a material component of plans to achieve climate-related targets or goals. This guidance, which is currently subject to a stay issued by the SEC, would be effective for the fiscal year beginning January 1, 2025. The Companies expect this guidance to only impact their disclosures with no impacts to their results of operations, cash flows or financial condition.

Note 3. Acquisitions and Dispositions

Business Review Dispositions

Sale of East Ohio

In September 2023, Dominion Energy entered into an agreement with Enbridge for the East Ohio Transaction, which included the sale of East Ohio and was valued at approximately $6.6 billion, consisting of a purchase price of approximately $4.3 billion in cash and approximately $2.3 billion of assumed indebtedness. The sale closed in March 2024 after all customary closing and regulatory conditions were satisfied, including clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS and FCC. Dominion Energy utilized the after-tax proceeds, as required, to repay outstanding borrowings under 364-day term loan facilities. See Note 16 for additional information. The purchase price is subject to customary post-closing adjustments, including adjustments for cash, indebtedness, net working capital, capital expenditures and net regulatory assets and liabilities. The transaction was structured as a stock sale for tax purposes. In October 2023, as required under the sale agreement, Dominion Energy filed a notice with the Ohio Commission. The internal reorganization in connection with the East Ohio Transaction was subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024.

Dominion Energy retained the pension and other postretirement benefit plan assets and obligations, including related income tax and other deferred balances, associated with retiree participants in both East Ohio’s union pension and other postretirement benefit plans and retiree participants of the sale entities in the Dominion Energy Pension Plan and the Dominion Energy Retiree Health and Welfare Plan. Dominion Energy recognized a pre-tax loss of $102 million ($108 million after-tax) upon the closing of the transaction, including the write-off of $1.5 billion of goodwill which was not deductible for tax purposes but excluding the effects of final closing adjustments. In 2023, Dominion Energy recorded a charge of $29 million to reflect the recognition of deferred taxes on the outside basis of East Ohio’s stock upon meeting the classification as held for sale. These deferred taxes reversed in the first quarter of 2024 upon closing of the sale and became a component of current income tax expense on the loss on sale disclosed above. See Note 5 for additional information.

At the closing of the East Ohio Transaction, Dominion Energy and Enbridge entered into a transition services agreement pursuant to which Dominion Energy will continue to provide certain services to support the ongoing operations of East Ohio for up to approximately two years. Enbridge has also agreed to provide certain services to Dominion Energy.

Sale of PSNC

In September 2023, Dominion Energy entered into an agreement with Enbridge for the PSNC Transaction, which 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 Questar Gas Transaction. The sale will be treated as a stock sale for tax purposes and is expected to close in the third quarter of 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, which was received in January 2024. In January 2024, Dominion Energy filed for approval with the FCC which was also received in January 2024. In October 2023, Dominion Energy filed for approval from the North Carolina Commission. The internal reorganization in connection with the PSNC Transaction was subject to approval by the North Carolina Commission. Dominion Energy filed for such approval in September 2023 which was received in November 2023. The internal reorganization was completed in December 2023.

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 March 31, 2024, Dominion Energy expects to recognize a pre-tax gain of approximately $10 million ($8 million after-tax) 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 2023, Dominion Energy recorded a charge of $334 million to reflect the deferred taxes on the outside basis of PSNC’s stock upon meeting the classification as held for sale. These deferred taxes will reverse upon closing of the sale and become a component of current income tax expense on the gain on sale.

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 PSNC Transaction. The sale will be treated as a stock sale for tax purposes and is expected to close in the second quarter of 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, which was received in January 2024. In January 2024, Dominion Energy filed for approval with the FCC, which was received in February 2024. In October 2023, Dominion Energy filed for approvals from the Utah and Wyoming Commissions. In March 2024, a settlement stipulation supporting approval of the Questar Gas Transaction was filed with the Utah Commission. In October 2023, Dominion Energy filed the notice with the Idaho Commission required for closing of the Questar Gas Transaction. The internal reorganization in connection with the Questar Gas Transaction was subject to approval by the Utah and Wyoming Commissions. Dominion Energy filed for such approvals in September 2023 which were received in November 2023. The internal reorganization was completed in February 2024.

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. In 2023, Dominion Energy recorded a charge of $284 million ($279 million after-tax), including amounts associated with an impairment of goodwill. Based on the recorded balances at March 31, 2024, Dominion Energy recorded an additional charge of $78 million ($78 million after-tax), including amounts associated with an impairment of goodwill. Upon closing, Dominion Energy will write off the remaining $0.7 billion of goodwill which is not deductible for tax purposes. Following the internal reorganization noted above and upon closing of the East Ohio Transaction, Dominion Energy recorded a tax benefit of $5 million. In 2023, Dominion Energy recorded a charge of $462 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock upon meeting the classification as held for sale. These deferred taxes reversed in the first quarter of 2024 and became a component of current income tax expense. In addition, Dominion Energy recorded an incremental deferred tax benefit of $22 million to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock in the first quarter of 2024 which will reverse upon the closing of the Questar Gas Transaction. 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 February 2024, Dominion Energy entered into an agreement with AES to sell Birdseye and the Madison solar project for approximately $17 million in cash, subject to customary closing adjustments, which closed in April 2024. Dominion Energy recognized a charge of $68 million ($51 million after-tax) in the fourth quarter of 2023 to adjust the assets down to their realizable fair value. As a result, Dominion Energy expects any gain or loss on the sale, including the effects of final closing adjustments, to be inconsequential.

Financial Statement Information for Business Review Dispositions

The following table represents selected information regarding the results of operations, which were reported within discontinued operations in Dominion Energy’s Consolidated Statements of Income:

		Three Months Ended March 31, 2024
		East Ohio Transaction**(1)**			PSNC Transaction			Questar Gas Transaction			Other
(millions)
Operating revenue		$	229		$	298		$	695		$	—
Operating expense(2)			254			158			575			1
Other income (expense)			**(**17	)		3			1			—
Interest and related charges			15			14			16			—
Income (loss) before income taxes			**(**57	)		129			105			**(**1	)
Income tax expense (benefit)			9			31			82			—
Net income (loss) attributable to Dominion Energy(3)		$	**(**66	)	$	98		$	23		$	**(**1	)

(1)

Represents amounts attributable to Dominion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024.

(2)

*East Ohio Transaction includes a charge of $*45 *million ($*33 million after-tax) associated with an increase to certain pension retirement benefits attributable to a plan amendment and a contribution to the defined contribution employee savings plan. See Note 20 for further information on these transactions.

(3)

Excludes $(69) million of income tax expense (benefit) attributable to consolidated state adjustments for the three months ended March 31, 2024*.*

		Three Months Ended March 31, 2023
		East Ohio Transaction			PSNC Transaction			Questar Gas Transaction			Other
(millions)
Operating revenue		$	312		$	326		$	730		$	1
Operating expense			216			208			579			3
Other income (expense)			8			2			1			—
Interest and related charges			15			13			16			—
Income (loss) before income taxes			89			107			136			(2	)
Income tax expense (benefit)			13			24			29			(1	)
Net income (loss) attributable to Dominion Energy(1)		$	76		$	83		$	107		$	(1	)

(1)

Excludes $(9) million of income tax expense (benefit) attributable to consolidated state and interim period tax allocation adjustments for three months ended March 31, 2023*.*

The carrying value 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 March 31, 2024									At December 31, 2023
	PSNC Transaction			Questar Gas Transaction			Other			East Ohio Transaction			PSNC Transaction			Questar Gas Transaction			Other
(millions)
Current assets(1)	$	266		$	505		$	**(**2	)	$	497		$	336		$	764		$	1
Property, plant and equipment, net		2,899			4,465			28			5,443			2,806			4,369			26
Other deferred charges and other assets, including goodwill(2) and intangible assets		823			666			**(**1	)		2,659			834			766			—
Current liabilities(3)		180			282			5			560			224			389			7
Long-term debt		948			1,205			—			2,286			948			1,205			—
Other deferred credits and liabilities(4)		697			1,066			2			1,437			711			1,116			2

(1)

*Includes cash and cash equivalents of $*1 *million and $*2 *million within the PSNC Transaction and $*39 *million and $26 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. Also includes regulatory assets of $*68 *million and $*89 *million within the PSNC Transaction and $*53 *million and $297 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes cash and cash equivalents of $*4 *million and regulatory assets of $*75 million within the East Ohio Transaction at December 31, 2023.

(2)

*Includes goodwill of $*673 million at both March 31, 2024 and December 31, 2023 *within the PSNC Transaction and $*642 *million and $720 million at March 31, 2024 and December 31, 2023, respectively within the Questar Gas Transaction. Also includes regulatory assets of $*83 *million and $86 million within the PSNC Transaction and $(44) million and $(39) million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes goodwill of $*1.5 *billion and regulatory assets of $*781 million within the East Ohio Transaction at December 31, 2023.

(3)

*Includes regulatory liabilities of $*42 *million and $*44 *million within the PSNC Transaction and $*56 *million and $55 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition, includes regulatory liabilities of $*54 million within the East Ohio Transaction at December 31, 2023.

(4)

*Includes regulatory liabilities of $*430 *million and $*435 *million within the PSNC Transaction and $*498 *million and $502 million within the Questar Gas Transaction at March 31, 2024 and December 31, 2023, respectively. In addition includes regulatory liabilities of $*711 million within the East Ohio Transaction at December 31, 2023.

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

	Three Months Ended March 31, 2024												Three Months Ended March 31, 2023
	East Ohio Transaction**(1)**			PSNC Transaction			Questar Gas Transaction			Other			East Ohio Transaction			PSNC Transaction			Questar Gas Transaction			Other
(millions)
Capital expenditures	$	65		$	82		$	100		$	—		$	98		$	44		$	85		$	—
Significant noncash items
Depreciation, depletion and amortization		—			—			—			—			35			22			44			1
Accrued capital expenditures					55			20			—			30			22			18			—

(1)

Represents amounts attributable to Dominion Energy prior to the closing of the East Ohio Transaction which closed on March 6, 2024.

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Dominion Energy									Virginia Power
Period Ended March 31,		2024				2023					2024				2023
(millions)
Regulated electric sales:
Residential		$	1,365			$	1,286				$	1,052			$	1,010
Commercial			1,094				1,070					881				866
Industrial			213				220					106				116
Government and other retail			257				244					241				229
Wholesale			36				44					29				29
Nonregulated electric sales			220				257					14				11
Regulated gas sales:
Residential			151				136
Commercial			48				53
Other			19				23
Regulated gas transportation and storage			4				4
Other regulated revenues			88				78					84				74
Other nonregulated revenues(1)(2)			29				37					10				11
Total operating revenue from contracts with customers			3,524				3,452					2,417				2,346
Other revenues(1)(3)			108				431					72				38
Total operating revenue		$	3,632			$	3,883				$	2,489			$	2,384

(1)

See Note 19 for amounts attributable to affiliates.

(2)

*Sales of renewable energy credits were $*5 *million for both of the three months ended March 31, 2024 and 2023 at Dominion Energy and $*2 *million and $*3 million for the three months ended March 31, 2024 and 2023, respectively, at Virginia Power.

(3)

*Includes alternative revenue of $*28 *million and $*27 million at both Dominion Energy and Virginia Power for the three months ended March 31, 2024 and 2023, respectively.

Neither Dominion Energy nor Virginia Power have any amounts for revenue to be recognized in the future on multi-year contracts in place at March 31, 2024.

At March 31, 2024 and December 31, 2023, Dominion Energy’s contract liability balances were $59 million and $47 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets. At March 31, 2024 and December 31, 2023, Virginia Power’s contract liability balances were $53 million and $40 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 three months ended March 31, 2024 and 2023, Dominion Energy recognized revenue of $43 million and $46 million, respectively, from the beginning contract liability balances. During the three months ended March 31, 2024 and 2023, Virginia Power recognized $40 million and $39 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
Three Months Ended March 31,		2024				2023				2024				2023
U.S. statutory rate			21.0	%			21.0	%			21.0	%			21.0	%
Increases (reductions) resulting from:
State taxes, net of federal benefit			3.4				3.8				4.4				4.6
Investment tax credits			**(**1.3	)			(1.1	)			**(**0.7	)			(0.8	)
Production tax credits			**(**1.0	)			(0.4	)			**(**0.9	)			(0.7	)
Reversal of excess deferred income taxes			**(**2.1	)			(2.0	)			**(**1.7	)			(2.7	)
AFUDC - equity			**(**0.7	)			(0.1	)			**(**0.7	)			0.2
Other, net			0.1				(1.1	)			0.2				(0.2	)
Effective tax rate			19.4	%			20.1	%			21.6	%			21.4	%

The IRA created a nuclear production tax credit for electricity produced and sold starting in 2024. The Companies did not record these potential tax benefits for the three months ended March 31, 2024 given computational uncertainty (in part from the absence of U.S. Treasury guidance) and market pricing volatility. Depending on future developments, 2024 nuclear production tax credits could have a material benefit to the Companies’ results of operations and/or cash flows.

As of March 31, 2024, 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, 2023, for a discussion of these unrecognized tax benefits.

Discontinued operations

Income tax expense reflected in discontinued operations is $51 million and $56 million for the three months ended March 31, 2024 and 2023, respectively. Dominion Energy entered into agreements for the East Ohio, PSNC and Questar Gas Transactions in September 2023, each of which was or will be treated as a stock sale for income tax purposes. During 2023 in connection with the pending sales, Dominion Energy recorded a charge of $825 million to establish deferred tax liabilities to reflect the excess of financial reporting basis over tax basis in stock of the entities to be sold. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of these transactions.

Dominion Energy recorded tax expense of $6 million in the first quarter of 2024, including the reversal of $29 million of these previously established deferred tax liabilities associated with East Ohio through income tax expense. Following the internal reorganization discussed in Note 3 and upon closing of the East Ohio Transaction, Dominion Energy recorded a tax benefit of $5 million, including the reversal of $462 million of these previously established deferred tax liabilities associated with Questar Gas, Wexpro and related affiliates through income tax expense.

In addition, Dominion Energy recorded a tax benefit of $22 million to establish a deferred tax asset reflecting the excess of tax basis over financial reporting basis for Questar Gas, Wexpro and related affiliates. These deferred taxes will reverse upon closing of the Questar Gas Transaction, which is expected to occur in the second quarter of 2024.

Note 6. Earnings Per Share

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

Three Months Ended March 31,		2024				2023
(millions, except EPS)
Net income attributable to Dominion Energy from continuing operations		$	560			$	700
Preferred stock dividends (see Note 16)			**(**20	)			(20	)
Net income attributable to Dominion Energy from continuing operations - Basic & Diluted		$	540			$	680
Net income (loss) attributable to Dominion Energy from discontinued operations - Basic & Diluted		$	114			$	281
Average shares of common stock outstanding - Basic			837.6				835.2
Net effect of dilutive securities(1)			—				0.3
Average shares of common stock outstanding - Diluted			837.6				835.5
EPS from continuing operations - Basic		$	0.64			$	0.81
EPS from discontinued operations - Basic		$	0.14				0.34
EPS attributable to Dominion Energy - Basic		$	0.78			$	1.15
EPS from continuing operations - Diluted		$	0.64			$	0.81
EPS from discontinued operations - Diluted		$	0.14				0.34
EPS attributable to Dominion Energy - Diluted		$	0.78			$	1.15

(1)

Dilutive securities for the three months ended March 31, 2023 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.

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 March 31, 2024
Beginning balance		$	**(**216	)		$	—			$	**(**1,290	)		$	—			$	**(**1,506	)
Other comprehensive income (loss) before reclassifications: gains (losses)			7				**(**26	)			**(**237	)			—				**(**256	)
Amounts reclassified from AOCI: (gains) losses
Interest and related charges			11				—				—				—				11
Other income (expense)			—				8				6				—				14
Total			11				8				6				—				25
Income tax expense (benefit)			**(**4	)			**(**2	)			**(**1	)			—				**(**7	)
Total, net of tax			7				6				5				—				18
Net current period other comprehensive income (loss)			14				**(**20	)			**(**232	)			—				**(**238	)
Ending balance		$	**(**202	)		$	**(**20	)		$	**(**1,522	)		$	—			$	**(**1,744	)
Three Months Ended March 31, 2023
Beginning balance		$	(249	)		$	(44	)		$	(1,276	)		$	(3	)		$	(1,572	)
Other comprehensive income (loss) before reclassifications: gains (losses)			(9	)			17				—				1				9
Amounts reclassified from AOCI: (gains) losses
Interest and related charges			11				—				—				—				11
Other income (expense)			—				2				(15	)			—				(13	)
Total			11				2				(15	)			—				(2	)
Income tax expense (benefit)			(3	)			(1	)			4				—				—
Total, net of tax			8				1				(11	)			—				(2	)
Net current period other comprehensive income (loss)			(1	)			18				(11	)			1				7
Ending balance		$	(250	)		$	(26	)		$	(1,287	)		$	(2	)		$	(1,565	)

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

*Net of $*68 *million, $*73 *million, $*83 *million and $*83 million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, respectively.

(3)

*Net of $*6 *million, $(2) million, $*6 *million and $*13 million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, respectively.

(4)

*Net of $*538 *million, $*456 *million, $*449 *million and $*445 million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, respectively.

(5)

Net of $**— *million at March 31, 2024, December 31, 2023 and March 31, 2023 and $*1 million at December 31, 2022.

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 March 31, 2024
Beginning balance		$	15			$	1			$	16
Other comprehensive income (loss) before reclassifications: gains (losses)			7				**(**5	)			2
Amounts reclassified from AOCI: (gains) losses
Other income (expense)			—				2				2
Total			—				2				2
Income tax expense (benefit)			—				**(**1	)			**(**1	)
Total, net of tax			—				1				1
Net current period other comprehensive income (loss)			7				**(**4	)			3
Ending balance		$	22			$	**(**3	)		$	19
Three Months Ended March 31, 2023
Beginning balance		$	16			$	(7	)		$	9
Other comprehensive income (loss) before reclassifications: gains (losses)			(9	)			4				(5	)
Net current period other comprehensive income (loss)			(9	)			4				(5	)
Ending balance		$	7			$	(3	)		$	4

(1)

Comprised entirely of interest rate derivative hedging activities.

(2)

Net of $(7) million, $(5) million, $(2) million and $(5) million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, respectively.

(3)

*Net of $*1 million, $**— *million, $*1 *million and $*2 million tax at March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022, 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, 2023. 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 inputs into the option models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices and volumes. For Level 3 fair value measurements, certain forward market prices and implied price volatilities are considered unobservable.

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at March 31, 2024. 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)	$	5		(2)-2	—		$	5		(2)-2	—
FTRs	Discounted cash flow	Market price (per MWh)	(3)		2		(1)-3	1			2		(1)-3	1
Electricity	Discounted cash flow	Market price (per MWh)	(3)		209		24-111	51
Physical options:
Natural gas(2)	Option model	Market price (per Dth)	(3)		49		1-7	3			23		1-7	3
		Price volatility	(4)				10%-75%	46%					23%-73%	52%
Total assets				$	265					$	30
Liabilities
Physical and financial forwards:
Natural gas(2)	Discounted cash flow	Market price (per Dth)	(3)	$	4		(2)-0	(1)		$	4		(2)-0	(1)
FTRs	Discounted cash flow	Market price (per MWh)	(3)		64		(1)-4	2			64		(1)-4	2
Electricity	Discounted cash flow	Market price (per MWh)	(3)		7		24-115	63
Total liabilities				$	75					$	68

(1)

Averages weighted by volume.

(2)

Includes basis.

(3)

Represents market prices beyond defined terms for Levels 1 and 2.

(4)

Represents volatilities unrepresented in published markets.

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

Significant Unobservable Inputs		Position		Change to Input		Impact on Fair Value Measurement
Market price		Buy		Increase (decrease)		Gain (loss)
Market price		Sell		Increase (decrease)		Loss (gain)
Price volatility		Buy		Increase (decrease)		Gain (loss)
Price volatility		Sell		Increase (decrease)		Loss (gain)

Nonrecurring Fair Value Measurements

See Note 11 for information regarding an impairment charge recorded by Dominion Energy associated with a corporate office building.

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)
March 31, 2024
Assets
Derivatives:
Commodity		$	—			$	281			$	265			$	546			$	—			$	74			$	30			$	104
Interest rate			—				895				—				895				—				172				—				172
Foreign currency exchange rate			—				3				—				3				—				3				—				3
Investments(1):
Equity securities:
U.S.			4,970				—				—				4,970				2,568				—				—				2,568
Fixed income:
Corporate debt instruments			—				552				—				552				—				300				—				300
Government securities			218				1,200				—				1,418				129				667				—				796
Other			222				—				—				222				176				—				—				176
Cash equivalents and other			2				3				—				5				2				1				—				3
Total assets		$	5,412			$	2,934			$	265			$	8,611			$	2,875			$	1,217			$	30			$	4,122
Liabilities
Derivatives:
Commodity		$	—			$	156			$	75			$	231			$	—			$	92			$	68			$	160
Interest rate			—				483				—				483				—				21				—				21
Foreign currency exchange rate			—				108				—				108				—				108				—				108
Total liabilities		$	—			$	747			$	75			$	822			$	—			$	221			$	68			$	289
December 31, 2023
Assets
Derivatives:
Commodity		$	—			$	325			$	225			$	550			$	—			$	96			$	21			$	117
Interest rate			—				800				—				800				—				181				—				181
Investments(1):
Equity securities:
U.S.			4,527				—				—				4,527				2,362				—				—				2,362
Fixed income:
Corporate debt instruments			—				500				—				500				—				274				—				274
Government securities			219				1,238				—				1,457				129				687				—				816
Cash equivalents and other			31				—				—				31				20				—				—				20
Total assets		$	4,777			$	2,863			$	225			$	7,865			$	2,511			$	1,238			$	21			$	3,770
Liabilities
Derivatives:
Commodity		$	—			$	160			$	139			$	299			$	—			$	95			$	137			$	232
Interest rate			—				359				—				359				—				45				—				45
Foreign currency exchange rate			—				39				—				39				—				39				—				39
Total liabilities		$	—			$	558			$	139			$	697			$	—			$	179			$	137			$	316

(1)

*Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $*294 *million and $*457 *million of assets at Dominion Energy, inclusive of $*94 million and $217 million at Virginia Power, at March 31, 2024 and December 31, 2023, 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
Period Ended March 31,		2024				2023				2024				2023
(millions)
Beginning balance		$	86			$	422			$	**(**116	)		$	221
Total realized and unrealized gains (losses):
Included in earnings:
Operating revenue			**(**8	)			—
Electric fuel and other energy-related purchases			**(**121	)			(51	)			**(**119	)			(52	)
Discontinued operations			**(**1	)			—
Included in regulatory assets/liabilities			131				(216	)			77				(166	)
Settlements			76				35				100				36
Purchases			27				16				20				16
Ending balance		$	190			$	206			$	**(**38	)		$	55

Dominion Energy had $(8) million and less than $1 million of unrealized gains (losses) included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2024 and 2023, respectively. Virginia Power had no unrealized gains or losses for the three months ended March 31, 2024 and 2023.

Fair Value of Financial Instruments

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

		Dominion Energy								Virginia Power
		Carrying Amount				Estimated Fair Value**(1)**				Carrying Amount				Estimated Fair Value**(1)**
(millions)
March 31, 2024
Long-term debt(2)		$	36,529			$	34,197			$	18,032			$	16,665
Supplemental credit facility borrowings			450				450
Securitization bonds(3)			1,282				1,280				1,282				1,280
Junior subordinated notes(2)			1,388				1,389
December 31, 2023
Long-term debt(2)		$	42,526			$	40,539			$	17,392			$	16,418
Supplemental credit facility borrowings			450				450
Junior subordinated notes(2)			1,388				1,374

(1)

Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. There were no fair value hedges associated with fixed-rate debt at March 31, 2024 and December 31, 2023. Additionally, Dominion Energy carrying amounts include portions classified as current liabilities held for sale at both March 31, 2024 and December 31, 2023*.*

(3)

Carrying amount includes current portions included in securities due within one year.

Note 9. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments and cash collateral or other instruments under master netting or similar arrangements are discussed in Notes 2 and 7 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. See Note 8 in this report for additional information about fair value measurements and associated valuation methods for derivatives. 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)
March 31, 2024
Commodity contracts:
Over-the-counter		$	229			$	51			$	—			$	178			$	96			$	39			$	—			$	57
Exchange			114				65				—				49				4				4				—				—
Interest rate contracts:
Over-the-counter			895				311				—				584				172				2				—				170
Foreign currency exchange rate contracts:
Over-the-counter			3				3				—				—				3				3				—				—
Total derivatives, subject to a master netting or similar arrangement		$	1,241			$	430			$	—			$	811			$	275			$	48			$	—			$	227
December 31, 2023
Commodity contracts:
Over-the-counter		$	289			$	26			$	—			$	263			$	112			$	13			$	—			$	99
Exchange			118				33				15				70				4				3				—				1
Interest rate contracts:
Over-the-counter			800				191				—				609				181				11				—				170
Total derivatives, subject to a master netting or similar arrangement		$	1,207			$	250			$	15			$	942			$	297			$	27			$	—			$	270

(1)

*Excludes derivative assets of $*203 *million and $*143 *million at Dominion Energy and $*4 million and $1 million at Virginia Power at March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Commodity contracts:
Over-the-counter		$	163			$	46			$	—			$	117			$	100			$	34			$	—			$	66
Exchange			65				65				—				—				4				4				—				—
Interest rate contracts:
Over-the-counter			483				316				—				167				21				7				—				14
Foreign currency exchange rate contracts:
Over-the-counter			108				3				—				105				108				3				—				105
Total derivatives, subject to a master netting or similar arrangement		$	819			$	430			$	—			$	389			$	233			$	48			$	—			$	185
December 31, 2023
Commodity contracts:
Over-the-counter		$	266			$	26			$	30			$	210			$	153			$	13			$	30			$	110
Exchange			33				33				—				—				3				3				—				—
Interest rate contracts:
Over-the-counter			359				186				—				173				45				6				—				39
Foreign currency exchange rate contracts:
Over-the-counter			39				5				—				34				39				5				—				34
Total derivatives, subject to a master netting or similar arrangement		$	697			$	250			$	30			$	417			$	240			$	27			$	30			$	183

(1)

*Excludes derivative liabilities of $*3 *million at Dominion Energy at March 31, 2024 and $*56 million and $76 million at Virginia Power at March 31, 2024 and December 31, 2023, respectively, which are not subject to master netting or similar arrangements. Dominion Energy did no**t have any derivative liabilities at December 31, 2023 which were not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of the Companies’ derivative activity at March 31, 2024. 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)			43				14				41				14
Basis(2)			200				360				155				360
Electricity (MWh in millions):
Fixed price			18				37				8				7
FTRs			15				—				15				—
Interest rate(3) (in millions)		$	3,862			$	10,112			$	1,200			$	1,050
Foreign currency exchange rate(3) (in millions)
Danish Krone		1,628 kr.				2,237 kr.				1,628 kr.				2,237 kr.
Euro		**€**302				**€**1,551				**€**302				**€**1,551

(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 March 31, 2024:

		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		$	**(**202	)		$	**(**31	)		381 months		$	22			$	—			381 months
Total		$	**(**202	)		$	**(**31	)				$	22			$	—

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 March 31, 2024
ASSETS
Current Assets
Commodity		$	—			$	256			$	256			$	—			$	86			$	86
Interest rate			94				332				426				94				—				94
Foreign currency exchange rate			—				3				3				—				3				3
Total current derivative assets(1)			94				591				685				94				89				183
Noncurrent Assets
Commodity			—				290				290				—				18				18
Interest rate			78				391				469				78				—				78
Total noncurrent derivative assets(2)			78				681				759				78				18				96
Total derivative assets		$	172			$	1,272			$	1,444			$	172			$	107			$	279
LIABILITIES
Current Liabilities
Commodity		$	—			$	191			$	191			$	—			$	136			$	136
Interest rate			21				96				117				21				—				21
Foreign currency exchange rate			—				35				35				—				35				35
Total current derivative liabilities(3)			21				322				343				21				171				192
Noncurrent Liabilities
Commodity			—				40				40				—				24				24
Interest rate			—				366				366				—				—				—
Foreign currency exchange rate			—				73				73				—				73				73
Total noncurrent derivative liabilities(4)			—				479				479				—				97				97
Total derivative liabilities		$	21			$	801			$	822			$	21			$	268			$	289
December 31, 2023
ASSETS
Current Assets
Commodity		$	—			$	312			$	312			$	—			$	91			$	91
Interest rate			143				298				441				143				—				143
Total current derivative assets(1)			143				610				753				143				91				234
Noncurrent Assets
Commodity			—				238				238				—				26				26
Interest rate			38				321				359				38				—				38
Total noncurrent derivative assets(2)			38				559				597				38				26				64
Total derivative assets		$	181			$	1,169			$	1,350			$	181			$	117			$	298
LIABILITIES
Current Liabilities
Commodity		$	—			$	244			$	244			$	—			$	188			$	188
Interest rate			45				76				121				45				—				45
Foreign currency exchange rate			—				11				11				—				11				11
Total current derivative liabilities(3)			45				331				376				45				199				244
Noncurrent Liabilities
Commodity			—				55				55				—				44				44
Interest rate			—				238				238				—				—				—
Foreign currency exchange rate			—				28				28				—				28				28
Total noncurrent derivative liabilities(4)			—				321				321				—				72				72
Total derivative liabilities		$	45			$	652			$	697			$	45			$	271			$	316

(1)

*Includes $*23 *million and $*54 million recorded in current assets held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative assets presented in other current assets in the Companies’ Consolidated Balance Sheets.

(2)

Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(3)

*Includes $*1 million and $30 million recorded in current liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative liabilities presented in other current liabilities in the Companies’ Consolidated Balance Sheets.

(4)

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

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 March 31, 2024
Derivative type and location of gains (losses):
Interest rate(3)		$	8			$	**(**11	)		$	88			$	8			$	—			$	88
Total		$	8			$	**(**11	)		$	88			$	8			$	—			$	88
Three Months Ended March 31, 2023
Derivative type and location of gains (losses):
Interest rate(3)		$	(12	)			(11	)		$	(120	)		$	(12	)		$	—			$	(120	)
Total		$	(12	)		$	(11	)		$	(120	)		$	(12	)		$	—			$	(120	)

(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
Period Ended March 31,		2024				2023				2024				2023
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue		$	76			$	395			$	41			$	9
Electric fuel and other energy-related purchases			**(**148	)			(45	)			**(**146	)			(46	)
Discontinued operations			**(**24	)			94
Interest rate:
Interest and related charges			**(**78	)			(76	)
Discontinued operations			—				(26	)
Total		$	**(**174	)		$	342			$	**(**105	)		$	(37	)

(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

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled $141 million and $119 million at March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Equity securities:(1)
U.S.	$	1,260		$	3,720		$	**(**10	)					$	4,970			$	733		$	1,936		$	**(**7	)					$	2,662
Fixed income securities:(2)
Corporate debt instruments		562			7			**(**27	)		$	—			542				319			2			**(**21	)		$	—			300
Government securities		1,441			12			**(**61	)			—			1,392				822			7			**(**34	)			—			795
Common/ collective trust funds		—			—			—				—			—				—			—			—				—			—
Other		211			—			—				—			211				176			—			—				—			176
Insurance contracts		245			—			—							245
Cash equivalents and other(3)		58			—			—				—			58				27			—			—				—			27
Total	$	3,777		$	3,739		$	**(**98	)	(4)	$	—		$	7,418			$	2,077		$	1,945		$	**(**62	)	(4)	$	—		$	3,960
December 31, 2023
Equity securities:(1)
U.S.	$	1,276		$	3,270		$	(10	)					$	4,536			$	759		$	1,706		$	(10	)					$	2,455
Fixed income securities:(2)
Corporate debt instruments		508			10			(27	)		$	—			491				292			3			(21	)		$	—			274
Government securities		1,426			28			(24	)			—			1,430				811			17			(12	)			—			816
Common/ collective trust funds		161			—			—				—			161				124			—			—				—			124
Insurance contracts		244			—			—							244
Cash equivalents and other(3)		84			—			—				—			84				47			—			—				—			47
Total	$	3,699		$	3,308		$	(61	)	(4)	$	—		$	6,946			$	2,033		$	1,726		$	(43	)	(4)	$	—		$	3,716

(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 $*45 *million and $49 million at March 31, 2024 and December 31, 2023, respectively. Virginia Power includes pending sales of securities of $*24 million and $27 million at March 31, 2024, and December 31, 2023, respectively.

(4)

*Dominion Energy’s fair value of securities in an unrealized loss position was $*1.2 *billion and $764 million at March 31, 2024 and December 31, 2023, respectively. Virginia Power’s fair value of securities in an unrealized loss position was $*696 million and $384 million at March 31, 2024 and December 31, 2023, 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
Three Months Ended March 31,		2024				2023				2024				2023
(millions)
Net gains (losses) recognized during the period		$	459			$	226			$	242			$	116
Less: Net (gains) losses recognized during the period on securities sold during the period			**(**10	)			2				**(**9	)			1
Unrealized gains (losses) recognized during the period on securities still held at period end(1)		$	449			$	228			$	233			$	117

(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 March 31, 2024 by contractual maturity is as follows:

		Dominion Energy				Virginia Power
(millions)
Due in one year or less		$	30			$	16
Due after one year through five years			514				254
Due after five years through ten years			405				236
Due after ten years			985				589
Total		$	1,934			$	1,095

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
Three Months Ended March 31,		2024				2023				2024				2023
(millions)
Proceeds from sales		$	695			$	544			$	471			$	373
Realized gains(1)			32				21				23				17
Realized losses(1)			38				41				23				31

(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 less than $1 million and $2 million for the three months ended March 31, 2024 and 2023, respectively, in other income (expense) in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings (losses) of $(10) million and $76 million for the three months ended March 31, 2024 and 2023, respectively, in discontinued operations, including amounts related to its investments in Cove Point and Atlantic Coast Pipeline discussed below. Dominion Energy received distributions of $131 million and $85 million for the three months ended March 31, 2024 and 2023, respectively. Dominion Energy made contributions of $3 million and $10 million for the three months ended March 31, 2024 and 2023, respectively. At March 31, 2024 and December 31, 2023, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $13 million and $18 million, respectively. At March 31, 2024, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $2 million attributable to capitalized interest. At December 31, 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.

Cove Point

See Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of the sale of Dominion Energy’s remaining interest in Cove Point to BHE, which closed in September 2023.

Dominion Energy recorded distributions from Cove Point of $83 million for the three months ended March 31, 2023.

Amounts presented within discontinued operations within Dominion Energy’s Consolidated Statements of Income related to Cove Point for the three months ended March 31, 2023 were $76 million for earnings on equity method investees, $62 million of interest expense and $3 million of income tax expense.

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, 2023.

Dominion Energy recorded equity losses related to Atlantic Coast Pipeline of $11 million and $1 million for the three months ended March 31, 2024 and 2023, respectively, in discontinued operations.

At March 31, 2024 and December 31, 2023, Dominion Energy has recorded a liability of $14 million and $4 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 expects it could incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows.

Dominion Privatization

In February 2024, Dominion Energy received a distribution of $126 million from Dominion Privatization, which was accounted for as a return of an investment.

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, 2023.

In March 2023, Dominion Energy entered into an agreement to acquire the Foxhound solar development project in Virginia (reflected in Contracted Energy) which closed in February 2024, and commenced commercial operations in April 2024. Dominion Energy will claim production tax credits on the energy generated and sold by the project.

Sale of Corporate Office Building

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 both March 31, 2024 and December 31, 2023.

Note 12. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

		Dominion Energy							Virginia Power
		March 31, 2024			December 31, 2023				March 31, 2024			December 31, 2023
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)		$	105		$	245			$	34		$	95
Securitized cost of fuel used in electric generation(2)			100			—				100			—
Deferred rider costs for Virginia electric utility(3)			168			270				168			270
Ash pond and landfill closure costs(4)			188			200				188			200
Deferred nuclear refueling outage costs(5)			64			63				64			63
NND Project costs(6)			138			138
Derivatives(7)			98			162				96			160
Other			231			231				94			80
Regulatory assets-current			1,092			1,309				744			868
Unrecognized pension and other postretirement benefit costs(8)			518			1,036				—			—
Deferred rider costs for Virginia electric utility(3)			553			496				553			496
Interest rate hedges(9)			168			168				—			—
AROs and related funding(10)			381			379
NND Project costs(6)			1,914			1,949
Ash pond and landfill closure costs(4)			2,403			2,410				2,396			2,407
Deferred cost of fuel used in electric generation(1)			—			1,221				—			1,221
Securitized cost of fuel used in electric generation(2)			1,177			—				1,177			—
Derivatives(7)			142			107				104			66
Other			603			590				122			127
Regulatory assets-noncurrent			7,859			8,356				4,352			4,317
Total regulatory assets		$	8,951		$	9,665			$	5,096		$	5,185
Regulatory liabilities:
Provision for future cost of removal and AROs(11)			118			118				118			118
Reserve for refunds and rate credits to electric utility customers(12)			83			83				—			—
Income taxes refundable through future rates(13)			107			107				70			70
Monetization of guarantee settlement(14)			67			67
Derivatives(7)			10			7				—			—
Other			127			140				96			133
Regulatory liabilities-current			512			522				284			321
Income taxes refundable through future rates(13)			3,044			3,076				2,214			2,237
Provision for future cost of removal and AROs(11)			1,826			1,818				1,186			1,185
Nuclear decommissioning trust(15)			2,297			2,098				2,297			2,098
Monetization of guarantee settlement(14)			619			635
Interest rate hedges(9)			313			233				313			233
Reserve for refunds and rate credits to electric utility customers(12)			212			237				—			—
Overrecovered other postretirement benefit costs(16)			162			155
Derivatives(7)			194			136				—			—
Other			376			286				333			225
Regulatory liabilities-noncurrent			9,043			8,674				6,343			5,978
Total regulatory liabilities		$	9,555		$	9,196			$	6,627		$	6,299

(1)

*Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s electric generation operations. Additionally, Dominion Energy includes deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations. In February 2024, Virginia Power completed a securitization of $*1.3 billion of under-recovered fuel costs for its Virginia service territory.

(2)

Reflects under-recovered fuel costs for Virginia Power’s Virginia service territory securitized through the issuance of bonds by VPFS in February 2024. See Note 15 in this report and Notes 13 and 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.

(3)

Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects.

(4)

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.

(5)

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.

(6)

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.*

(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 regulatory assets of $*10 *million and $*215 million and regulatory liabilities of $(5) million and $12 million at March 31, 2024 and December 31, 2023, respectively, related to retained pension and other postretirement benefit plan assets and obligations for the East Ohio (at December 31, 2023 only), 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 March 31, 2024*.*

(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, 2023 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 March 31, 2024, Dominion Energy and Virginia Power regulatory assets include $5.8 billion and $4.5 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, 2023.

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. 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.

In November 2023, Virginia Power, the Virginia Commission staff and other parties filed a comprehensive settlement agreement with the Virginia Commission for approval. The comprehensive settlement agreement indicates that Virginia Power demonstrated it earned a combined ROE of 9.05% on its generation and distribution services for the test period, requires previously unrecovered severe weather event costs of $45 million to be recovered through base rates during the 2023-2024 biennial period, with carrying costs, and provides for $15 million in one-time credits to customers by September 2024.

In February 2024, the Virginia Commission approved the comprehensive settlement agreement and issued its order in this matter. In doing so, the Virginia Commission determined that Virginia Power’s earnings for the test period, considered as a whole, were within 70 basis points above or below its authorized ROE of 9.35%. The Virginia Commission also authorized 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. In connection with the order, Virginia Power recorded a net benefit of $17 million ($12 million after-tax) in the first quarter of 2024 within impairment of assets and other charges in its Consolidated Statements of Income for a regulatory asset for previously unrecovered severe weather event costs, which will be amortized by the end of 2024.

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. As discussed in Note 13 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, Virginia Power proposed two alternatives to recover these under-collected fuel costs, including an option based on an anticipated securitization of up to $1.3 billion under-recovered balance as of June 30, 2023 as permitted under legislation enacted in Virginia in April 2023, with such securitization approved by the Virginia Commission in November 2023 and completed by Virginia Power in February 2024. In March 2024, the Virginia Commission approved Virginia Power’s annual fuel factor based on the securitization option, which results in a net decrease in Virginia Power’s fuel revenues for the rate year of approximately $541 million. In addition, the Virginia Commission approved Virginia Power’s proposal 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 results in a reduction to fuel revenue of $13 million.

In May 2024, Virginia Power filed its annual fuel factor with the Virginia Commission to recover an estimated $2.2 billion in Virginia jurisdictional projected fuel expenses for the rate year beginning July 1, 2024 and to return an estimated $266 million net over-recovered balance through June 30, 2024. Virginia Power’s proposed fuel rate represents a fuel revenue decrease of $636 million when applied to projected kilowatt-hour sales for the rate year beginning July 1, 2024. This matter is pending.

Renewable Generation Projects

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. In March 2024, the Virginia Commission approved the petition.

Riders

Other than the following matters, there have been no significant developments regarding the riders associated with various Virginia Power projects disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

Rider Name		Application Date		Approval Date		Rate Year Beginning		Total Revenue Requirement (millions)****(1)				Increase (Decrease) from Previous (millions)
Rider CCR		March 2024		Pending		December 2024		$	103			$	(91	)
Rider CE(2)		October 2023		March 2024		May 2024			133				44
Rider GT		August 2023		May 2024		June 2024			145				131
Rider T1(3)		May 2024		Pending		September 2024			1,170				291

(1)

*In addition, Virginia Power has various riders associated with other projects with an aggregate total annual revenue requirement of approximately $*120 million as of March 31, 2024.

(2)

The Virginia Commission approved four solar generation projects and 13 power purchase agreements in addition to previously approved Rider CE projects. In addition, the approved total revenue requirement includes amounts which had previously been collected under a separate rider.

(3)

*Consists of $*532 *million for the transmission component of Virginia Power’s base rates and $*638 million for Rider T1.

Electric Transmission Projects

Other than the following matters, there have been no significant developments regarding the Virginia Power electric transmission projects disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

Description and Location of Project		Application Date		Approval Date		Type of Line		Miles of Lines		Cost Estimate (millions)****(1)
Construct new Aspen and Golden substations, transmission lines and related projects in Loudoun County, Virginia		March 2024		Pending		500- 230 kV		10		$	690
Partial rebuild Fredericksburg-Aquia Harbour transmission lines and related projects in Stafford County and the City of Fredericksburg, Virginia		March 2024		Pending		230- 115 kV		24			135
Construct new Apollo-Twin Creeks transmission lines, new substations and related projects in Loudoun County, Virginia		March 2024		Pending		230 kV		2			285
Rebuild Dooms-Harrisonburg transmission lines and related projects in the Counties of Augusta and Rockingham and the Town of Grottoes, Virginia		April 2024		Pending		230 kV		22			60

(1)

*Represents the cost estimate included in the application except as updated in the approval if applicable. In addition, Virginia Power had various other transmission projects approved or applied for and currently pending approval with aggregate cost estimates of approximately $*45 *million and $*100 million, respectively.

North Carolina Regulation

Virginia Power Base Rate Case

In March 2024, Virginia Power filed its base rate case and schedules with the North Carolina Commission. Virginia Power proposed a non-fuel, base rate increase of $57 million effective November 1, 2024 on an interim basis subject to refund, with any permanent rates ordered by the North Carolina Commission effective February 1, 2025. The base rate increase was proposed to recover the significant investments in generation, transmission and distribution infrastructure for the benefit of North Carolina customers. Virginia Power presented an earned return of 5.01% based upon a fully-adjusted test period, compared to its authorized 9.75% return, and proposed a 10.60% ROE. This matter is pending.

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 2024, PSNC submitted a filing with the North Carolina Commission for a $31 million decrease relating to the customer usage tracker. The North Carolina Commission approved the filing in March 2024 with rates effective April 2024.

South Carolina Regulation

Electric Base Rate Case

In March 2024, DESC filed its retail electric base rate case and schedules with the South Carolina Commission. DESC proposed a non-fuel, base rate increase of $295 million, partially offset by a net decrease in storm damage and DSM components of $4 million. If approved, the overall proposed rate increase of $291 million, or 12.59%, would be effective on and after the first billing cycle of September 2024. The base rate increase was proposed to recover the significant investment in assets and operating resources required to serve an expanding customer base, maintain the safety, reliability and efficiency of DESC’s system and meet increasingly stringent reliability, security and environmental requirements for the benefit of South Carolina customers. DESC presented an earned ROE of 4.32% based upon a fully-adjusted test period. The proposed rates would provide for an earned ROE of 10.60% compared to the currently authorized ROE of 9.50%. This matter is pending.

Cost of Fuel

DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February 2024, DESC filed with the South Carolina Commission a proposal to decrease 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 2024. In addition, DESC proposed an increase to its variable environmental and avoided capacity cost component. The net effect is a proposed annual decrease of $315 million. In March 2024, DESC, the South Carolina Office of Regulatory Staff and another party of record filed a settlement agreement with the South Carolina Commission for approval to make certain adjustments to the February 2024 filing that would result in a net annual decrease of $316 million. In April 2024, the South Carolina Commission voted to approve the settlement agreement, with rates effective May 2024.

DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January 2024, DESC filed an application with the South Carolina Commission seeking approval to recover $47 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 2024. In April 2024, the South Carolina Commission approved the request, effective with the first billing cycle of May 2024.

Electric - Transmission Project

In March 2024, DESC filed an application with the South Carolina Commission requesting approval of a CPCN to construct and operate the Church Creek - Charleston Transmission Line, comprised of a 7 mile 230 kV transmission line and associated facilities in Charleston County, South Carolina with an estimated total project cost of $40 million. This matter is pending.

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, 2023.

Dominion Energy’s Consolidated Statements of Income include $3 million and $5 million for the three months ended March 31, 2024 and 2023, respectively, of rental revenue included in operating revenue. Dominion Energy’s Consolidated Statements of Income include $3 million and $1 million for the three months ended March 31, 2024 and 2023, respectively, of depreciation expense included in depreciation and amortization related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

In April 2024, Dominion Energy agreed to pay $47 million in connection with a settlement of an agreement related to the offshore wind installation vessel under development and recorded a charge of $47 million ($35 million after-tax) in the first quarter of 2024 within impairments and other charges in its Consolidated Statements of Income.

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, 2023.

Virginia Power

Virginia Power purchased shared services from DES, an affiliated VIE, of $115 million and $113 million for the three months ended March 31, 2024 and 2023, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of $33 million and $32 million at March 31, 2024 and December 31, 2023, respectively, recorded in payables to affiliates.

As described in Note 18 of the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, Virginia Power formed VPFS in October 2023, a wholly-owned special purpose subsidiary which is considered to be a VIE, for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of senior secured deferred fuel cost bonds. Virginia Power’s Consolidated Balance Sheets at March 31, 2024 included balances for VPFS in regulatory assets-current ($100 million), other current assets ($6 million), regulatory assets-noncurrent ($1.2 billion), securities due within one year ($65 million), accrued interest, payroll and taxes ($8 million) and securitization bonds ($1.2 billion).

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, 2023.

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 March 31, 2024, 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			$	3,164			$	34			$	2,802

(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 March 31, 2024, the sub-limits for DESC and Questar Gas were $500 million and $250 million, respectively.

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 December 31, 2023, Dominion Energy had $25 million in letters of credit outstanding under this facility. There were no such balances outstanding as of March 31, 2024.

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 March 31, 2024 and December 31, 2023, $58 million and $54 million, respectively, 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, 2023. At March 31, 2024 and December 31, 2023, Dominion Energy’s Consolidated Balance Sheets include $462 million and $409 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 March 2024, Dominion Energy repaid the full $2.5 billion outstanding under its $2.5 billion 364-day term loan facility entered into in January 2023 as amended in January 2024, using after-tax proceeds received in connection with the East Ohio Transaction. The debt was scheduled to mature in July 2024. At December 31, 2023, Dominion Energy’s Consolidated Balance Sheet included $2.5 billion with respect to such facility presented within securities due within one year.

In March 2024, Dominion Energy repaid $1.8 billion of its $2.25 billion 364-day term loan facility entered into in October 2023, using after-tax proceeds received in connection with the East Ohio Transaction. Subsequently in March 2024, Dominion Energy requested and received a $500 million increase to the amount of the facility and concurrently borrowed $500 million with the proceeds used for general corporate purposes. The debt is scheduled to mature in October 2024. The agreement contains certain mandatory early repayment provisions, including that any after-tax proceeds in connection with the PSNC and Questar Gas Transactions be applied to any outstanding borrowings under this facility. At March 31, 2024 and December 31, 2023, Dominion Energy’s Consolidated Balance Sheet includes $976 million and $2.25 billion, respectively, with respect to such facility presented within securities due within one year. 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 March 31, 2024, 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			$	—			$	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 March 31, 2024*, the sub-limit for Virginia Power was $*1.75 *billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $*2.0 billion (or the sub-limit, whichever is less) of letters of credit.

In January 2023, Virginia Power entered into a letter of credit facility which allowed Virginia Power to issue up to $125 million in letters of credit and was scheduled to mature in January 2026. At December 31, 2023, less than $1 million in letters of credit were issued and outstanding under this facility with no amounts drawn under the letters of credit. As of March 31, 2024, the credit facility had been terminated.

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 March 31, 2024 and December 31, 2023, $119 million and $124 million, respectively, in letters of credit were issued and outstanding under this agreement.

Long-term Debt

There have been no significant changes regarding the Companies’ long-term debt 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, 2023.

Dominion Energy recognized a charge of $10 million during the three months ended March 31, 2024 within interest expense in its Consolidated Statements of Income in connection with the early redemption of Eagle Solar’s secured senior notes in February 2024.

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At March 31, 2024 and December 31, 2023, 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 $9 million ($11.625 per share) for both the three months ended March 31, 2024 and 2023 on the Series B Preferred Stock. Dominion Energy recorded dividends of $11 million ($10.875 per share) for both the three months ended March 31, 2024 and 2023 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, 2023.

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, $43 million from the issuance of 1 million shares of common stock for the three months ended March 31, 2023 and $31 million from the issuance of less than one million shares of common stock for the three months ended March 31, 2024, 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, 2023. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans and, in March 2024, began issuing new shares of common stock.

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, with $0.9 billion available as of March 31, 2024.

Dominion Energy did not repurchase any shares of common stock during three months ended March 31, 2024, 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 11 sites associated with Dominion Energy, remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy has proposed remediation plans for one site at Virginia Power and expects to commence remediation activities in 2024 depending on receipt of final permits and approvals. At March 31, 2024 and December 31, 2023, Dominion Energy had $31 million and $32 million, respectively, of reserves recorded. At both March 31, 2024 and December 31, 2023, Virginia Power had $25 million of reserves recorded. Dominion Energy is associated with three additional sites, including two associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, the Companies are unable to make an estimate of the potential financial statement impacts.

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.

Matters Fully Resolved Prior to 2024 Impacting the Consolidated Financial Statements

Governmental Proceedings and Investigations

In June 2018, DESC received a notice of proposed assessment of approximately $410 million, excluding interest, from the SCDOR following its audit of DESC’s sales and use tax returns for the periods September 1, 2008 through December 31, 2017. The proposed assessment, which includes 100% of the NND Project, is based on the SCDOR’s position that DESC’s sales and use tax exemption for the NND Project does not apply because the facility will not become operational. In December 2020, the parties reached an agreement in principle in the amount of $165 million to resolve this matter. In June 2021, the parties executed a settlement agreement which allows DESC to fund the settlement amount through a combination of cash, shares of Dominion Energy common stock or real estate with an initial payment of at least $43 million in shares of Dominion Energy common stock. In 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 three months ended March 31, 2023. In June 2023, DESC transferred the remaining utility property with a fair value of $11 million to the SCDOR. 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

Other than the items discussed below, 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, 2023.

During the first quarter of 2024, the total liability protection per nuclear incident available to all participants in the Secondary Financial Protection Program increased from $16.2 billion to $16.3 billion. This increase does not impact Dominion Energy’s responsibility per active unit under the Price-Anderson Amendments Act of 1988. Additionally, the Companies increased the amount of coverage purchased from commercial insurance pools for Millstone, Summer, Surry and North Anna from $450 million to $500 million with the remainder provided through the mandatory industry retrospective rating plan.

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, 2023, 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

Dominion Energy enters into guarantee arrangements on behalf of its consolidated subsidiaries, primarily to facilitate their commercial transactions with third parties. If any of these subsidiaries fail to perform or pay under the contracts and the counterparties seek performance or payment, Dominion Energy would be obligated to satisfy such obligation. To the extent that a liability subject to a guarantee has been incurred by one of Dominion Energy’s consolidated subsidiaries, that liability is included in the Consolidated Financial Statements. Dominion Energy is not required to recognize liabilities for guarantees issued on behalf of its subsidiaries unless it becomes probable that it will have to perform under the guarantees. Terms of the guarantees typically end once obligations have been paid. Dominion Energy currently believes it is unlikely that it would be required to perform or otherwise incur any losses associated with guarantees of its subsidiaries’ obligations.

At March 31, 2024, Dominion Energy had issued the following subsidiary guarantees:

		Maximum Exposure
(millions)
Commodity transactions(1)		$	2,842
Nuclear obligations(2)			245
Solar(3)			215
Other(4)			1,094
Total(5)(6)		$	4,396

(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 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

(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. In December 2023, the agreement was amended to permit more than one renewal term and reduce the required term for a renewal from five years to at least* one year*. At* March 31, 2024*,* no amounts have been recorded related to this guarantee.

In addition, Dominion Energy had issued an additional $20 million of guarantees at March 31, 2024, primarily to support third parties. No amounts related to these guarantees have been recorded.

Dominion Energy also had issued four guarantees as of March 31, 2024 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.

Additionally, at March 31, 2024, Dominion Energy had purchased $316 million of surety bonds, including $213 million at Virginia Power and $33 million related to entities held for sale, and authorized the issuance of letters of credit by financial institutions of $34 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, 2023.

At March 31, 2024, Dominion Energy’s credit exposure totaled $274 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 $80 million of exposure. At March 31, 2024, Virginia Power’s exposure related to wholesale customers totaled $107 million. Of this amount, investment grade counterparties, including those internally rated, represented 73%. No single counterparty, whether investment grade or non-investment grade, exceeded $23 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 $32 million and $24 million, respectively, as of March 31, 2024, and $28 million and $14 million, respectively, as of December 31, 2023. 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 and Virginia Power had no posted collateral at March 31, 2024 or December 31, 2023 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with cash. In addition, Dominion Energy and Virginia Power had both posted letters of credit as collateral with counterparties covering less than $1 million of fair value of derivative instruments in a liability position at December 31, 2023. 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 $32 million and $24 million, respectively, as of March 31, 2024 and $28 million and $14 million, respectively, as of December 31, 2023, 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 March 31, 2024, Virginia Power’s derivative assets and liabilities with affiliates were $4 million and $59 million, respectively. At December 31, 2023, Virginia Power’s derivative assets and liabilities with affiliates were $1 million and $79 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, 2023. At March 31, 2024 and December 31, 2023, 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 $468 million and $456 million, respectively. At March 31, 2024 and December 31, 2023, 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 $602 million and $584 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:

Three Months Ended March 31,		2024				2023
(millions)
Commodity purchases from affiliates		$	198			$	214
Services provided by affiliates(1)			155				147
Services provided to affiliates			4				4

(1)

*Includes capitalized expenditures of $*53 million and $54 million for the three months ended March 31, 2024 and 2023, respectively.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were $1 million and $500 million in short-term demand note borrowings from Dominion Energy as of March 31, 2024 and December 31, 2023, respectively. Virginia Power had no outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of March 31, 2024 and December 31, 2023. Interest charges related to Virginia Power’s borrowings from Dominion Energy were less than $1 million and $24 million for the three months ended March 31, 2024 and 2023, respectively.

There were no issuances of Virginia Power’s common stock to Dominion Energy for the three months ended March 31, 2024 and 2023.

In 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 $3 million and $4 million for the three months ended March 31, 2024 and 2023, respectively, presented in discontinued operations. The non-service cost components of net periodic benefit (credit) cost are reflected in other income (expense) in Dominion Energy’s Consolidated Statements of Income, except for $14 million and $(11) million for the three months ended March 31, 2024 and 2023, 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
Period Ended March 31,		2024				2023				2024				2023
(millions)
Service cost		$	22			$	24			$	3			$	3
Interest cost			109				111				14				15
Expected return on plan assets			**(**204	)			(216	)			**(**42	)			(38	)
Amortization of prior service cost (credit)			—				—				**(**9	)			(9	)
Amortization of net actuarial (gain) loss			6				—				**(**2	)			(1	)
Plan amendment			22				—				—				—
Net periodic benefit (credit) cost		$	**(**45	)		$	(81	)		$	**(**36	)		$	(30	)

Pension and Other Postretirement Benefit Plan Remeasurement

In the first quarter of 2024, Dominion Energy remeasured its pension and other postretirement benefit plans as a result of the close of the East Ohio Transaction. The remeasurement and transfer to Enbridge of pension plan assets and liabilities resulted in a decrease in the pension benefit obligation of $419 million, inclusive of $195 million transferred upon closing, and a decrease in the fair value of the pension plan assets of $555 million, inclusive of $531 million transferred upon closing. In addition, the remeasurement and transfer to Enbridge of other postretirement benefit plan assets and liabilities resulted in a decrease in the accumulated postretirement benefit obligation of $38 million, inclusive of $22 million transferred upon closing, and a decrease in the fair value of the other postretirement benefit plan assets of $19 million, inclusive of $36 million transferred upon closing. The impact of the remeasurement and transfer of pension and other postretirement benefit plan assets and liabilities on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The remeasurement is expected to decrease the net periodic pension benefit credit by approximately $11 million and increase the net periodic other postretirement benefit credit by approximately $1 million for the year ending December 31, 2024, excluding the impact of a one-time plan amendment. The discount rate used for the remeasurement was 5.62% for the pension plans and 5.61%-5.62% for the other postretirement benefit plans. The net actuarial loss (gain) and prior service cost (credit) related to the transferred pension and other postretirement plan assets and liabilities included in the East Ohio Transaction loss on sale was $147 million for pension and $(9) million for other postretirement benefits.

All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2023.

Employer Contributions

During the three months ended March 31, 2024, Dominion Energy made no contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy expects to make $46 million of minimum required contributions to its qualified defined benefit pension plans in 2024. In April 2024, Dominion Energy made $7 million of contributions to its qualified defined benefit pension plans. Dominion Energy is not required to make any contributions to its VEBAs associated with its other postretirement plans in 2024. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities.

Other Employee Matters

In March 2024, Dominion Energy recorded a charge of $23 million ($17 million after-tax) within discontinued operations attributable to a contribution to its defined contribution employee savings plan associated with the closing of the East Ohio Transaction. Additionally, Dominion Energy recorded a charge of $13 million ($10 million after-tax) in other operations and maintenance expense related to a severance accrual for certain employees in connection with the business review.

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 is as follows:

Primary Operating Segment		Description of Operations		Dominion Energy		Virginia Power
Dominion Energy Virginia		Regulated electric distribution		X		X
		Regulated electric transmission		X		X
		Regulated electric generation fleet(1)		X		X
Dominion Energy South Carolina		Regulated electric distribution		X
		Regulated electric transmission		X
		Regulated electric generation fleet		X
		Regulated gas distribution and storage		X
Contracted Energy(2)		Nonregulated electric generation fleet		X

(1)

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

(2)

Includes renewable natural gas operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, including the net impact of the operations reflected as discontinued operations, which includes the entities included in the East Ohio (through March 2024), PSNC and Questar Gas Transactions, a noncontrolling interest in Cove Point (through September 2023), solar generation facility development operations and a noncontrolling interest in Atlantic Coast Pipeline as 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, 2023.

In the three months ended March 31, 2024, Dominion Energy reported after-tax net income of $48 million in the Corporate and Other segment, including $191 million of after-tax net income for specific items with $124 million of after-tax net income attributable to its operating segments. In the three months ended March 31, 2023, Dominion Energy reported after-tax net income of $393 million in the Corporate and Other segment, including $466 million of after-tax net income for specific items with $304 million of after-tax net income attributable to its operating segments.

The net income for specific items attributable to Dominion Energy’s operating segments in 2024 primarily related to the impact of the following items:

A $266 million ($202 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

Contracted Energy ($175 million after-tax); and

Dominion Energy Virginia ($27 million after-tax);

A $61 million ($47 million after-tax) loss related to economic hedging activities, attributable to Contracted Energy; and

A $47 million ($35 million after-tax) charge in connection with a settlement of an agreement, attributable to Contracted Energy.

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 $332 million ($253 million after-tax) gain related to economic hedging activities, attributable to Contracted Energy;

A $123 million ($90 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

Contracted Energy ($77 million after-tax); and

Dominion Energy Virginia ($13 million after-tax); and

A $61 million ($45 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.

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 March 31, 2024
Total revenue from external customers		$	2,489			$	892			$	306			$	**(**55	)		$	—			$	3,632
Intersegment revenue			—				1				2				234				**(**237	)			—
Total operating revenue			2,489				893				308				179				**(**237	)			3,632
Net income from discontinued operations			—				—				—				114				—				114
Net income attributable to Dominion Energy			424				80				122				48				—				674
Three Months Ended March 31, 2023
Total revenue from external customers		$	2,384			$	844			$	308			$	347			$	—			$	3,883
Intersegment revenue			—				1				3				232				(236	)			—
Total operating revenue			2,384				845				311				579				(236	)			3,883
Net income from discontinued operations			—				—				—				281				—				281
Net income attributable to Dominion Energy			386				91				111				393				—				981

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 three months ended March 31, 2024, Virginia Power reported after-tax net income of $41 million in the Corporate and Other segment, including $39 million of after-tax net income for specific items all of which was attributable to its operating segment. In the three months ended March 31, 2023, Virginia Power reported after-tax net expenses of $31 million in the Corporate and Other segment, including $32 million of after-tax net expenses for specific items all of which was attributable to its operating segment.

The net income for specific items attributable to Virginia Power’s operating segment in 2024 primarily related to the impact of the following item:

A $37 million ($27 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 2023 primarily related to the impact of the following item:

A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review.

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

		Dominion Energy Virginia				Corporate and Other				Consolidated Total
(millions)
Three Months Ended March 31, 2024
Operating revenue		$	2,489			$	—			$	2,489
Net income			424				41				465
Three Months Ended March 31, 2023
Operating revenue		$	2,384			$	—			$	2,384
Net income (loss)			386				(31	)			355