Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A discusses Dominion Energy’s results of operations and general financial condition and Virginia Power’s results of operations. MD&A should be read in conjunction with the Companies’ Consolidated Financial Statements. Virginia Power meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

Contents of MD&A

MD&A consists of the following information:

Forward-Looking Statements—Dominion Energy and Virginia Power

Accounting Matters—Dominion Energy

Results of Operations—Dominion Energy and Virginia Power

Segment Results of Operations—Dominion Energy

Outlook—Dominion Energy

Liquidity and Capital Resources—Dominion Energy

Future Issues and Other Matters—Dominion Energy

Forward-Looking Statements

This report contains statements concerning the Companies’ expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “path,” “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “plan,” “may,” “continue,” “target” or other similar words.

The Companies make forward-looking statements with full knowledge that risks and uncertainties exist that may cause actual results to differ materially from predicted results. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additionally, other factors may cause actual results to differ materially from those indicated in any forward-looking statement. These factors include but are not limited to:

Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;

Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;

The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Companies’ markets and global supply chains;

Federal, state and local legislative and regulatory developments, including changes in or interpretations of federal and state tax laws and regulations;

The direct and indirect impacts of implementing recommendations resulting from the business review concluded in March 2024;

Risks of operating businesses in regulated industries that are subject to changing regulatory structures;

Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy;

Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;

Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;

Risks associated with entities in which Dominion Energy shares ownership with third parties, such as Stonepeak’s noncontrolling interest in the CVOW Commercial Project, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third party participants and difficulties in exiting these arrangements;

Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;

The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;

Risks and uncertainties that may impact the Companies’ ability to construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;

Risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from Stonepeak associated with the construction of the CVOW Commercial Project;

Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;

Cost of environmental strategy and compliance, including those costs related to climate change;

Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;

Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;

Unplanned outages at facilities in which the Companies have an ownership interest;

The impact of operational hazards, including adverse developments with respect to plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events;

Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;

Changes in operating, maintenance and construction costs;

The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers;

Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as threats to cybersecurity;

Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;

Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;

Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;

Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;

Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner;

The technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies;

Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;

Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews;

Adverse outcomes in litigation matters or regulatory proceedings;

Counterparty credit and performance risk;

Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;

Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;

Fluctuations in interest rates;

The effectiveness to which existing economic hedging instruments mitigate fluctuations in currency exchange rates of the Euro and Danish Krone associated with certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project;

Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;

Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;

Political and economic conditions, including inflation and deflation;

Employee workforce factors including collective bargaining agreements and labor negotiations with union employees; and

Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

The Companies’ forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Companies caution the reader not to place undue reliance on their forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. The Companies undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Accounting Matters

As of September 30, 2024, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of estimates in long-lived asset impairment testing, held for sale classification and employee benefit plans.

Results of Operations—Dominion Energy

Presented below is a summary of Dominion Energy’s consolidated results:

		2024				2023				$ Change
(millions, except EPS)
Third Quarter
Net income attributable to Dominion Energy		$	954			$	157			$	797
Diluted EPS			1.12				0.16				0.96
Year-To-Date
Net income attributable to Dominion Energy		$	2,200			$	1,721			$	479
Diluted EPS			2.55				1.99				0.56

Overview

Third Quarter 2024 vs. 2023

Net income attributable to Dominion Energy increased $797 million, primarily due to the absence of a charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, higher rider equity returns reflecting increased capital investments at Virginia Power and an increase in net investment earnings on nuclear decommissioning trust funds, partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point.

Year-To-Date 2024 vs. 2023

Net income attributable to Dominion Energy increased 28%, primarily due to the absence of a charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, an increase in net investment earnings on nuclear decommissioning trust funds, the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale, higher rider equity returns reflecting increased capital investments at Virginia Power, an increase in sales to electric utility customers attributable to weather and the absence of amortization associated with the 2021 Triennial Review. These increases were partially offset by the closing of the East Ohio Transaction, the absence of a gain and equity method earnings from the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point, increased unrealized losses on economic hedging activities and the impact of 2023 Virginia legislation.

Analysis of Consolidated Operations

Presented below are selected amounts related to Dominion Energy’s results of operations:

		Third Quarter												Year-To-Date
		2024				2023				$ Change				2024				2023				$ Change
(millions)
Operating revenue		$	3,941			$	3,810			$	131			$	11,059			$	10,859			$	200
Electric fuel and other energy-related purchases			910				1,049				(139	)			2,787				3,010				(223	)
Purchased electric capacity			24				20				4				57				43				14
Purchased gas			34				40				(6	)			198				212				(14	)
Other operations and maintenance			900				842				58				2,597				2,366				231
Depreciation and amortization			549				667				(118	)			1,791				1,896				(105	)
Other taxes			184				162				22				556				517				39
Impairment of assets and other charges			122				1				121				219				136				83
Losses (gains) on sales of assets			—				—				—				(2	)			(23	)			21
Other income (expense)			335				56				279				1,020				646				374
Interest and related charges			403				192				211				1,446				1,066				380
Income tax expense			183				195				(12	)			412				469				(57	)
Net income (loss) from discontinued operations including noncontrolling interests			(13	)			(541	)			528				182				(92	)			274

An analysis of Dominion Energy’s results of operations follows:

Third Quarter 2024 vs. 2023

Operating revenue increased 3%, primarily reflecting:

A $137 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

A $101 million increase associated with market prices affecting Millstone, including economic hedging impacts of realized and unrealized gains on freestanding derivatives ($91 million);

A $51 million increase in sales to electric utility retail customers associated with growth;

A $17 million increase in non-fuel base rates associated with the settlement of the electric base rate case in South Carolina;

A $14 million net increase in transition service agreements primarily associated with the East Ohio and Questar Gas Transactions; and

A $10 million net increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power prior to March 2024.

These increases were partially offset by:

A $135 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024;

A $34 million decrease in sales to electric utility retail customers associated with economic and other usage factors;

A $22 million decrease due to one-time credits to customers associated with the 2023 Biennial Review and the electric base rate case in South Carolina;

A $21 million decrease in sales to electric utility retail customers, primarily due to a decrease in cooling degree days during the cooling season; and

A $16 million decrease from unplanned outages at Millstone.

Electric fuel and other energy-related purchases decreased 13%, primarily due to lower commodity costs for electric utilities ($159 million), partially offset by an increase in the use of purchased renewable energy credits at Virginia Power ($19 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 7%, primarily reflecting:

A $35 million increase in salaries, wages and benefits;

A $24 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;

A $14 million increase in materials and supplies expense; and

A $13 million increase in outside services.

These increases were partially offset by:

A $20 million decrease in bad debt expense; and

A $19 million decrease in storm damage and restoration costs in Virginia Power’s service territory.

Depreciation and amortization decreased 18%, primarily due to the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and the absence of RGGI-related amortization ($36 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($13 million), both of which are offset in operating revenue and do not impact net income.

Other taxes increased 14%, primarily due to higher property taxes.

Impairment of assets and other charges increased $121 million, primarily due to a $55 million charge in connection with the electric base rate case in South Carolina primarily to write down certain materials and supplies inventory, a charge for the impairment of certain nonregulated renewable natural gas facilities ($27 million), a charge related to the write-off of certain early-stage development costs at Virginia Power ($30 million) and the absence of a benefit related to dismantling costs and other activities associated with certain retired electric generation facilities at Virginia Power ($13 million).

Other income increased $279 million, primarily due to net investment gains in 2024 compared to net investment losses in 2023 on nuclear decommissioning trust funds ($269 million) and an increase in AFUDC associated with rate-regulated projects ($19 million).

Interest and related charges increased $211 million, primarily reflecting:

Lower unrealized gains in 2024 compared to 2023 associated with freestanding derivatives ($219 million);

Net issuances of long-term debt ($80 million);

Increased interest expense associated with rider deferrals ($15 million), which is offset in operating revenue and does not impact net income; and

Charges incurred due to early debt repayments associated with the business review completed in March 2024 ($13 million).

These increases were partially offset by:

A decrease in borrowings under the 364-day term loan facilities ($54 million); and

Variable rate debt repaid from business review proceeds ($35 million).

Income tax expense decreased 6%, primarily due to a nuclear production tax credit ($36 million), the absence of an increase in consolidated state deferred income taxes associated with the East Ohio, PSNC and Questar Gas Transactions and the sale of Dominion

Energy’s 50% noncontrolling interest in Cove Point ($29 million) and a benefit associated with the effective settlement of an uncertain tax position ($14 million), partially offset by higher pre-tax income ($66 million).

Net income from discontinued operations including noncontrolling interests increased 98%, primarily due to the absence of charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale ($939 million), the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($54 million) and the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($19 million), partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), the absence of earnings from operations following the closing of the East Ohio Transaction ($87 million) and Questar Gas Transaction ($32 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($39 million) and a loss on the closing of the PSNC Transaction ($30 million).

Year-To-Date 2024 vs. 2023

Operating revenue increased 2%, primarily reflecting:

A $557 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

A $150 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($107 million) and an increase in heating degree days during the heating season ($43 million);

A $115 million increase in sales to electric utility retail customers associated with growth;

An $85 million increase from fewer outages at Millstone, including the relative effect of the absence of a planned outage ($73 million) and fewer unplanned outages ($12 million);

A $62 million net increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges at Virginia Power prior to March 2024;

An $18 million net increase in transition service agreements primarily associated with the East Ohio and Questar Gas Transactions; and

A $17 million increase in non-fuel base rates associated with the settlement of the electric base rate case in South Carolina;

These increases were partially offset by:

A $352 million net decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($323 million);

A $196 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024;

A $184 million decrease from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation;

A $86 million decrease in sales to electric utility retail customers associated with economic and other usage factors; and

A $22 million decrease due to one-time credits to customers associated with the 2023 Biennial Review and the electric base rate case in South Carolina.

Electric fuel and other energy-related purchases decreased 7%, primarily due to lower commodity costs for electric utilities, which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 10%, primarily reflecting:

A $55 million increase in salaries, wages and benefits;

A $53 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;

A $43 million increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation;

A $32 million increase in costs associated with the business review completed in March 2024;

A $28 million increase in materials and supplies expense; and

A $26 million increase in outside services.

These increases were partially offset by:

A $38 million net decrease in outage costs due to lower outage costs at Millstone ($51 million) partially offset by higher outage costs at Virginia Power ($13 million).

Depreciation and amortization decreased 6%, primarily reflecting:

The absence of $183 million in amortization of a regulatory asset established in the settlement of the 2021 Triennial Review;

A $67 million decrease in amortization associated with Virginia Power non-fuel riders, which is offset in operating revenue and does not impact net income;

A $29 million decrease due to revised estimated useful lives at Millstone; and

A $13 million decrease due to revised depreciation rates for Bath County.

These decreases were partially offset by:

A $143 million increase in RGGI-related amortization, which is offset in operating revenue and does not impact net income; and

A $37 million increase due to various projects being placed into service.

Impairment of assets and other charges increased 61%, primarily reflecting:

Charges for the impairment of certain nonregulated renewable natural gas facilities ($60 million);

A $55 million charge in connection with the electric base rate case in South Carolina primarily to write down certain materials and supplies inventory;

A charge in connection with a settlement of an agreement ($47 million); and

A charge related to the write-off of certain early-stage development costs at Virginia Power ($30 million).

These increases were partially offset by:

A decrease in impairments of corporate office buildings ($74 million); and

The absence of a charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million).

Gains on sales of assets decreased 91%, primarily due to the absence of a gain on the transfer of certain utility property in South Carolina.

Other income increased 58%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($343 million) and an increase in AFUDC associated with rate-regulated projects ($30 million).

Interest and related charges increased 36%, primarily reflecting:

Lower unrealized gains in 2024 compared to 2023 associated with freestanding derivatives ($250 million);

Net issuances of long-term debt ($163 million);

Charges incurred due to early debt repayments associated with the business review completed in March 2024 ($25 million);

Increased interest expense associated with rider deferrals ($23 million), which is offset in operating revenue and does not impact net income; and

Higher interest rates on commercial paper and long-term debt ($13 million).

These increases were partially offset by:

A decrease in borrowings under the 364-day term loan facilities ($45 million); and

Variable rate debt repaid from business review proceeds ($21 million).

Income tax expense decreased 12%, primarily due to a nuclear production tax credit ($53 million) and the absence of an increase in consolidated state deferred income taxes associated with the East Ohio, PSNC and Questar Gas Transactions and the sale of Dominion Energy’s 50% noncontrolling interest in Cove Point ($29 million), partially offset by higher pre-tax income ($28 million).

Net income from discontinued operations including noncontrolling interests increased $274 million, primarily due to the absence of charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale ($939 million), the absence of depreciation expense associated with the East Ohio, PSNC and Questar Gas Transactions upon meeting the classification as held for sale ($211 million), the absence of interest expense on variable rate debt secured by Dominion Energy’s interest in Cove Point ($72 million), lower tax expense to reflect the deferred taxes on the outside basis of Questar Gas, Wexpro and related affiliates’ stock ($22 million), a gain upon the closing of the Questar Gas Transaction ($18 million) and the absence of an impairment charge of certain nonregulated solar assets ($11 million), partially offset by the absence of a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), the absence of earnings from operations following the closing of the East Ohio Transaction ($206 million) and Questar Gas Transaction ($39 million), the absence of equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($163 million), a loss on the closing of the East Ohio Transaction ($113 million), an impairment associated with the Questar Gas Transaction ($78 million), charges for employee benefit items related to the East Ohio Transaction ($33 million), a loss on the closing of the PSNC Transaction ($30 million) and higher tax expense associated with the PSNC Transaction ($16 million).

Results of Operations—Virginia Power

Presented below is a summary of Virginia Power’s consolidated results:

		Third Quarter												Year-To-Date
		2024				2023				$ Change				2024				2023				$ Change
(millions)
Net income		$	654			$	475			$	179			$	1,598			$	1,164			$	434

Overview

Third Quarter 2024 vs. 2023

Net income increased 38%, primarily due to the absence of amortization associated with the 2021 Triennial Review, higher rider equity returns reflecting increased capital investments and an increase in net investment earnings on nuclear decommissioning trust funds.

Year-To-Date 2024 vs. 2023

Net income increased 37%, primarily due to the absence of amortization associated with the 2021 Triennial Review, higher rider equity returns reflecting increased capital investments and an increase in sales to electric utility customers attributable to weather and other customer-related factors, partially offset by the impact of 2023 Virginia legislation.

Analysis of Consolidated Operations

Presented below are selected amounts related to Virginia Power’s results of operations:

		Third Quarter												Year-To-Date
		2024				2023				$ Change				2024				2023				$ Change
(millions)
Operating revenue		$	2,762			$	2,645			$	117			$	7,788			$	7,281			$	507
Electric fuel and other energy-related purchases			690				736				(46	)			2,098				2,242				(144	)
Purchased electric capacity			24				15				9				53				33				20
Other operations and maintenance			574				532				42				1,625				1,417				208
Depreciation and amortization			375				487				(112	)			1,268				1,366				(98	)
Other taxes			83				71				12				248				223				25
Impairment of assets and other charges (benefits)			40				(15	)			55				38				30				8
Other income (expense)			58				(1	)			59				159				83				76
Interest and related charges			239				215				24				633				578				55
Income tax expense			141				128				13				386				311				75

An analysis of Virginia Power’s results of operations follows:

Third Quarter 2024 vs. 2023

Operating revenue increased 4%, primarily reflecting:

A $137 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

A $43 million increase in sales to electric utility retail customers associated with growth; and

An $11 million increase in sales to customers from non-jurisdictional solar generation facilities.

These increases were partially offset by:

A $40 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges effective March 2024;

A $28 million decrease in sales to electric utility retail customers associated with economic and other usage factors;

A $15 million decrease due to one-time credits to customers associated with the 2023 Biennial Review; and

An $11 million decrease in sales to electric utility retail customers, primarily due to a decrease in cooling degree days during the cooling season.

Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities ($64 million), partially offset by an increase in the use of purchased renewable energy credits ($19 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 8%, primarily reflecting:

A $31 million increase in salaries, wages and benefits and administrative costs;

A $24 million increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; and

A $10 million increase in materials and supplies expense.

These increases were partially offset by:

A $20 million decrease in storm damage and restoration costs; and

A $19 million decrease in bad debt expense.

Depreciation and amortization decreased 23%, primarily due to the absence of amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million) and the absence of RGGI-related amortization ($36 million) and a decrease in amortization associated with Virginia Power non-fuel riders ($13 million), both of which are offset in operating revenue and do not impact net income.

Other taxes increased 17%, primarily due to higher property taxes.

Impairment of assets and other charges increased $55 million, primarily due to a charge related to the write-off of certain early-stage development costs ($30 million) and the absence of a benefit related to dismantling costs and other activities associated with certain retired electric generation facilities ($13 million).

Other income increased $59 million, primarily due to net investment gains in 2024 compared to net investment losses in 2023 on nuclear decommissioning trust funds ($47 million) and an increase in AFUDC associated with rate-regulated projects ($16 million).

Interest and related charges increased 11%, primarily due to an increase in long-term debt borrowings ($44 million) and increased interest expense associated with rider deferrals ($15 million), which is offset in operating revenue and does not impact net income, partially offset by a decrease in the outstanding balance of commercial paper and intercompany borrowings with Dominion Energy ($23 million).

Income tax expense increased 10%, primarily due to higher pre-tax income ($51 million), partially offset by a nuclear production tax credit ($36 million).

Year-To-Date 2024 vs. 2023

Operating revenue increased 7%, primarily reflecting:

A $557 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

A $108 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($78 million) and an increase in heating degree days during the heating season ($30 million);

A $94 million increase in sales to electric utility retail customers associated with growth;

A $61 million increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges prior to March 2024; and

An $11 million increase in sales to customers from non-jurisdictional solar generation facilities.

These increases were partially offset by:

A $184 million decrease from the combination of certain riders into base rates as a result of 2023 Virginia legislation;

An $85 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers, including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges effective March 2024;

A $62 million decrease in sales to electric utility retail customers associated with economic and other usage factors; and

A $15 million decrease due to one-time credits to customers associated with the 2023 Biennial Review.

Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities, which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 15%, primarily reflecting:

A $53 million increase in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income;

A $43 million increase from the combination of certain riders into base rates as a result of 2023 Virginia legislation;

A $27 million increase in salaries, wages and benefits and administrative costs;

A $22 million increase in materials and supplies expense;

A $13 million increase in outage costs;

A $12 million increase in outside services; and

An $11 million increase in tree trimming and vegetation management.

Depreciation and amortization decreased 7%, primarily reflecting:

The absence of $183 million in amortization of a regulatory asset established in the settlement of the 2021 Triennial Review;

A $67 million decrease in amortization associated with non-fuel riders, which is offset in operating revenue and does not impact net income; and

A $13 million decrease due to revised depreciation rates for Bath County.

These decreases were partially offset by:

A $143 million increase in RGGI-related amortization, which is offset in operating revenue and does not impact net income; and

A $29 million increase due to various projects being placed into service.

Other taxes increased 11%, primarily due to higher property taxes.

Impairment of assets and other charges increased 27%, primarily due to a charge related to the write-off of certain early-stage development costs ($30 million) and the absence of a benefit related to dismantling costs and other activities associated with certain retired electric generation facilities ($10 million), partially offset by the absence of a charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million).

Other income increased 92%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($54 million) and an increase in AFUDC associated with rate-regulated projects ($21 million).

Interest and related charges increased 10%, primarily due to an increase in long-term debt borrowings ($129 million) and increased interest expense associated with rider deferrals ($23 million), which is offset in operating revenue and does not impact net income, partially offset by a decrease in principal on commercial paper and intercompany borrowings with Dominion Energy ($86 million).

Income tax expense increased 24%, primarily due to higher pre-tax income ($128 million), partially offset by a nuclear production tax credit ($53 million).

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. Presented below is a summary of contributions by Dominion Energy’s operating segments to net income (loss) attributable to Dominion Energy:

		Net Income (Loss) Attributable to Dominion Energy												EPS**(1)**
		2024				2023				$ Change				2024				2023				$ Change
(millions, except EPS)
Third Quarter
Dominion Energy Virginia		$	662			$	535			$	127			$	0.79			$	0.64			$	0.15
Dominion Energy South Carolina			147				143				4				0.18				0.17				0.01
Contracted Energy			83				52				31				0.10				0.06				0.04
Corporate and Other			62				(573	)			635				0.05				(0.71	)			0.76
Consolidated		$	954			$	157			$	797			$	1.12			$	0.16			$	0.96
Year-To-Date
Dominion Energy Virginia		$	1,571			$	1,315			$	256			$	1.88			$	1.57			$	0.31
Dominion Energy South Carolina			296				302				(6	)			0.35				0.36				(0.01	)
Contracted Energy			305				118				187				0.36				0.14				0.22
Corporate and Other			28				(14	)			42				(0.04	)			(0.08	)			0.04
Consolidated		$	2,200			$	1,721			$	479			$	2.55			$	1.99			$	0.56

(1)

Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

Dominion Energy Virginia

Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:

		Third Quarter												Year-To-Date
		2024				2023				% Change				2024				2023				% Change
Electricity delivered (million MWh)			26.0				24.7				5	%			72.0				68.2				6	%
Electricity supplied (million MWh):
Utility			26.2				25.8				2				72.2				68.3				6
Non-Jurisdictional			0.5				0.5				—				1.4				1.4				—
Degree days (electric distribution and utility service area):
Cooling			1,205				1,224				(2	)			1,857				1,585				17
Heating			—				2			N/A					1,838				1,677				10
Average electric distribution customer accounts (thousands)			2,786				2,756				1				2,778				2,748				1

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:

		Third Quarter 2024 vs. 2023 Increase (Decrease)								Year-To-Date 2024 vs. 2023 Increase (Decrease)
		Amount				EPS				Amount				EPS
(millions, except EPS)
Weather		$	(8	)		$	(0.01	)		$	81			$	0.10
Customer usage and other factors			1				—				13				0.02
Customer-elected rate impacts			5				0.01				45				0.05
Impact of 2023 Virginia legislation			2				—				(142	)			(0.17	)
Rider equity return			101				0.12				237				0.28
Electric capacity			(6	)			(0.01	)			(17	)			(0.02	)
Storm damage and restoration costs			5				0.01				(8	)			(0.01	)
Planned outage costs			—				—				(10	)			(0.01	)
Nuclear production tax credit			36				0.04				53				0.06
Depreciation and amortization			4				—				(1	)			—
Interest expense, net			17				0.02				40				0.05
Other			(30	)			(0.03	)			(35	)			(0.03	)
Share dilution			—				—				—				(0.01	)
Change in net income contribution		$	127			$	0.15			$	256			$	0.31

Dominion Energy South Carolina

Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:

		Third Quarter												Year-To-Date
		2024				2023				% Change				2024				2023				% Change
Electricity delivered (million MWh)			6.5				6.6				(2	)	%		17.0				16.8				1		%
Electricity supplied (million MWh)			6.7				6.9				(3	)			17.8				17.6				1
Degree days (electric distribution service areas):
Cooling			569				609				(7	)			850				723				18
Heating			—				—				—				640				484				32
Gas distribution throughput (bcf):
Sales			13				15				(13	)			45				48				(6	)
Average distribution customer accounts (thousands):
Electric			810				796				2				805				789				2
Gas			461				446				3				458				441				4

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:

		Third Quarter 2024 vs. 2023 Increase (Decrease)								Year-To-Date 2024 vs. 2023 Increase (Decrease)
		Amount				EPS				Amount				EPS
(millions, except EPS)
Weather		$	(7	)		$	(0.01	)		$	32			$	0.04
Customer usage and other factors			3				—				14				0.02
Customer-elected rate impacts			1				—				—				—
Base rate case & Natural Gas Rate Stabilization Act impacts			8				0.01				6				0.01
Capital cost rider			(1	)			—				(4	)			—
Depreciation and amortization			(1	)			—				(10	)			(0.01	)
Interest expense, net			(4	)			—				(14	)			(0.02	)
Other			5				0.01				(30	)			(0.05	)
Share dilution			—				—				—				—
Change in net income contribution		$	4			$	0.01			$	(6	)		$	(0.01	)

Contracted Energy

Presented below are selected operating statistics related to Contracted Energy’s operations:

		Third Quarter												Year-To-Date
		2024				2023				% Change				2024				2023				% Change
Electricity supplied (million MWh)			4.5				4.6				(2	%)			14.0				11.6				21	%

Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution:

		Third Quarter 2024 vs. 2023 Increase (Decrease)								Year-To-Date 2024 vs. 2023 Increase (Decrease)
		Amount				EPS				Amount				EPS
(millions, except EPS)
Margin		$	33			$	0.04			$	69			$	0.08
Planned Millstone outages(1)			(2	)			—				83				0.10
Unplanned Millstone outages(1)			(11	)			(0.01	)			8				0.01
Depreciation and amortization			6				0.01				18				0.02
Interest expense, net			5				0.01				10				0.01
Other			—				(0.01	)			(1	)			—
Share dilution			—				—				—				—
Change in net income contribution		$	31			$	0.04			$	187			$	0.22

(1)

Includes earnings impact from outage costs and lower energy margins.

Corporate and Other

Presented below are the Corporate and Other segment’s after-tax results:

		Third Quarter												Year-To-Date
		2024				2023				$ Change				2024				2023				$ Change
(millions, except EPS)
Specific items attributable to operating segments		$	81			$	(125	)		$	206			$	155			$	245			$	(90	)
Specific items attributable to Corporate and Other segment			38				(369	)			407				164				—				164
Net income (expense) from specific items			119				(494	)			613				319				245				74
Corporate and other operations:
Interest expense, net			(118	)			(140	)			22				(435	)			(393	)			(42	)
Equity method investments			(2	)			2				(4	)			(2	)			5				(7	)
Pension and other postretirement benefit plans			68				66				2				199				198				1
Corporate service company costs			(16	)			(31	)			15				(68	)			(92	)			24
Other			11				24				(13	)			15				23				(8	)
Net expense from corporate and other operations			(57	)			(79	)			22				(291	)			(259	)			(32	)
Total net income (expense)		$	62			$	(573	)		$	635			$	28			$	(14	)		$	42
EPS impact		$	0.05			$	(0.71	)		$	0.76			$	(0.04	)		$	(0.08	)		$	0.04

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. See Note 21 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. For the three months ended September 30, 2024, this primarily included a $57 million after-tax gain for derivative mark-to-market changes and $13 million net loss from discontinued operations, primarily associated with operations included in the PSNC Transaction, including the loss on sale. For the nine months ended September 30, 2024, this primarily included $182 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio and PSNC Transactions, as well as an impairment charge associated with the Questar Gas Transaction, $30 million in after-tax costs associated with the business review completed in March 2024 and a $23 million after-tax gain for derivative mark-to-market changes.

For the three months ended September 30, 2023, other than the effects of required interim period provision for income taxes, this primarily included a $939 million charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, $398 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy's noncontrolling interest in Cove Point, including the gain on sale, and a $218 million after-tax benefit for derivative mark-to-market changes. For the nine months ended September 30, 2023, other than the effects of required interim period provision for income taxes, this primarily included a $939 million charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale, $847 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy's noncontrolling interest in Cove Point, including the gain on sale, a $209 million after-tax benefit for derivative mark-to-market changes and a $71 million after-tax charge associated with the impairment of a corporate office building.

Outlook

As of September 30, 2024, there have been no material changes to Dominion Energy’s 2024 outlook as described in Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. As discussed in Future Issues and Other Matters, Virginia Power closed on the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak in October 2024, with such noncontrolling interest expected to decrease net income attributable to Dominion Energy beginning in the fourth quarter of 2024.

Liquidity and Capital Resources

Dominion Energy depends on both cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term financings. Dominion Energy’s material cash requirements include capital and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock.

Analysis of Cash Flows

Presented below are selected amounts related to Dominion Energy’s cash flows:

		2024				2023
(millions)
Cash, restricted cash and equivalents at January 1		$	301			$	341
Cash flows provided by (used in):
Operating activities(1)			4,377				5,186
Investing activities			293				(4,091	)
Financing activities			(3,069	)			(1,189	)
Net increase (decrease) in cash, restricted cash and equivalents			1,601				(94	)
Cash, restricted cash and equivalents at September 30		$	1,902			$	247

(1)

Includes cash outflows of $60 million and $57 million for energy efficiency programs in Virginia for the nine months ended September 30, 2024 and 2023, respectively, and $19 million and $18 million for DSM programs in South Carolina for the nine months ended September 30, 2024 and 2023, respectively.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities decreased $809 million, inclusive of a $32 million increase from discontinued operations. Net cash provided by continuing operations decreased $841 million primarily due to lower deferred fuel and purchased gas cost recoveries ($250 million), settlements of interest rate swaps ($205 million) and an increase in interest payments driven by higher interest rates and borrowings ($81 million), higher net prepayments and deposits ($293 million) and $336 million primarily due to lower operating cash flows from electric utility operations, partially offset by an increase from changes in working capital ($324 million).

Investing Cash Flows

Net cash from Dominion Energy’s investing activities increased $4.4 billion, primarily due to net proceeds from the East Ohio, Questar Gas and PSNC Transactions ($9.2 billion) and an increase in distributions from equity method affiliates ($125 million), partially offset by the absence of the net proceeds from the sale of the remaining noncontrolling interest in Cove Point ($3.3 billion), an increase in plant construction and other property additions ($1.6 billion) and higher acquisitions of solar development projects ($188 million).

Financing Cash Flows

Net cash from Dominion Energy’s financing activities decreased $1.9 billion, primarily due to a $7.5 billion decrease due to net repayments on 364-day term loan facilities in 2024 versus net issuances in 2023, net repayment of credit facility borrowings ($900 million), the partial repurchase of the Series B Preferred Stock ($440 million) and net repayments of short-term debt ($214 million), partially offset by a $7.2 billion increase due to net issuances of long-term debt in 2024 versus net repayments in 2023.

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. There have been no significant changes to Dominion Energy’s use of credit facilities and/or short-term debt during the nine months ended September 30, 2024.

Joint Revolving Credit Facility

Dominion Energy maintains a $6.0 billion joint revolving credit facility which provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives. At September 30, 2024, Dominion Energy had $2.4 billion of unused capacity under its joint revolving credit facility. See Note 16 to the Consolidated Financial Statements in this report for the balances of commercial paper and letters of credit outstanding.

Dominion Energy Reliability Investment**SM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At September 30, 2024, Dominion Energy’s Consolidated Balance Sheet included $482 million presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Other Facilities

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans as discussed in Note 16 to the Consolidated Financial Statements in this report.

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.

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. In May 2024, Dominion Energy repaid the full $976 million outstanding under the facility, using after-tax proceeds received in connection with the Questar Gas Transaction. The debt was scheduled to mature in October 2024.

Long-Term Debt

Sustainability Revolving Credit Facility

Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which, following an amendment in June 2024, matures in June 2025 and bears interest at a variable rate and is described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. In May 2024, Dominion Energy used a portion of the proceeds from the issuance of the 2024 EJSNs discussed below to repay the outstanding balance of $450 million under the Sustainability Revolving Credit Facility.

Issuances and Borrowings of Long-Term Debt

During the nine months ended September 30, 2024, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds for senior notes were used for the repayment of existing indebtedness and for general corporate purposes. See Note 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, including use of proceeds and repayment provisions, on the securitization bonds issued in February 2024. See Note 16 to the Consolidated Financial Statements in this report for additional information, including use of proceeds, on the 2024 EJSNs issued in May 2024.

Month		Type		Public / Private		Entity		Principal				Rate						Stated Maturity
January		Senior notes		Public		Virginia Power		$	500				5.000		%			2034
January		Senior notes		Public		Virginia Power			500				5.350		%			2054
February		Senior secured deferred fuel cost bonds		Public		VPFS			439				5.088		%			2029
February		Senior secured deferred fuel cost bonds		Public		VPFS			843				4.877		%			2033
May		Enhanced junior subordinated notes		Public		Dominion Energy			1,000				6.875		%	(1)		2055
May		Enhanced junior subordinated notes		Public		Dominion Energy			1,000				7.000		%	(1)		2054
July		Senior notes		Private		PSNC			150		(2)		5.650		%			2034
July		Senior notes		Private		PSNC			150		(2)		6.040		%			2054
August		Senior notes		Public		Virginia Power			600				5.050		%			2034
August		Senior notes		Public		Virginia Power			600				5.550		%			2054
Total issuances and borrowings								$	5,782

(1)

Rate subject to periodic reset as described in Note 16 to the Consolidated Financial Statements in this report.

(2)

The senior notes issued by PSNC were assumed by Enbridge upon closing of the PSNC Transaction in September 2024.

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

Dominion Energy anticipates, excluding potential opportunistic financings and the securitization bonds, issuing between approximately $3.0 billion and $4.8 billion of long-term debt during 2024, inclusive of amounts issued through September 30, 2024 as shown in the table above. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends, proceeds from the completion of the sale of a 50% noncontrolling interest in the CVOW Commercial Project and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayments, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed during the nine months ended September 30, 2024:

Month		Type		Entity		Principal (1)				Rate				Stated Maturity
						(millions)
Debt scheduled to mature in 2024				Multiple		$	1,363			various
Early redemptions
February		Secured senior notes		Eagle Solar			279				4.820	%		2042
Total repayments, repurchases and redemptions						$	1,642

(1)

Total amount redeemed prior to maturity includes remaining principal plus accrued interest.

In October 2024, Dominion Energy redeemed all $27 million in outstanding principal amount of its 3.80% Peninsula Ports Authority of Virginia Coal Terminal Revenue Refunding Bonds at par plus accrued interest. The bonds would have otherwise matured in 2033.

In October 2024, Dominion Energy redeemed all $685 million in outstanding principal amount of its October 2014 hybrids at par plus accrued interest including interest accrued at a floating rate effective October 2024. The notes would have otherwise matured in 2054.

See Note 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 regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

In May 2024, Virginia Power remarketed three series of tax-exempt bonds, with an aggregate outstanding principal of $243 million to new investors. All three series of bonds will bear interest at a coupon of 3.80% until May 2027, after which they will bear interest at a market rate to be determined at that time.

Credit Ratings

As discussed in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer its debt securities. The credit ratings for Dominion Energy are affected by its financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the rating agencies and event risk, if applicable, such as major acquisitions or dispositions. A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. Ratings are subject to revision or withdrawal at any time by the applicable rating organization. As of September 30, 2024, there have been no changes in Dominion Energy’s credit ratings from those described in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. In June 2024, Standard & Poor’s revised its credit ratings outlook for Dominion Energy from negative to stable and affirmed all other current ratings.

Financial Covenants

As discussed in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, Dominion Energy is subject to various covenants present in the enabling agreements underlying Dominion Energy’s debt. As of September 30, 2024, there have been no material changes to covenants, nor any events of default under Dominion Energy’s covenants.

Common Stock, Preferred Stock and Other Equity Securities

In the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, there is a discussion of Dominion Energy’s existing equity financing programs, including Dominion Energy Direct®. During the nine months ended September 30, 2024, Dominion Energy issued $102 million of stock through these programs, net of fees and commissions. In May 2024, Dominion Energy entered into sales agency agreements to effect sales under a new at-the-market program, and through September 30, 2024 entered forward sale agreements for approximately 11.4 million shares of its common stock expected to be settled in the fourth quarter of 2024 at a weighted average initial forward price of $53.23 per share. In September 2024, Dominion Energy entered forward sale agreements for approximately 3.8 million shares of its common stock expected to be settled in the fourth quarter of 2025 at a weighted average initial forward price of $57.62 per share. See Note 16 to the Consolidated Financial Statements in this report for additional information.

As discussed in Note 16 to the Consolidated Financial Statements in this report, in June 2024, Dominion Energy completed a tender offer repurchasing 0.4 million of the 0.8 million shares of Series B Preferred Stock issued and outstanding representing $440 million in aggregate liquidation preference.

Through September 30, 2024, Dominion Energy has not repurchased and does not plan to repurchase shares of common stock in 2024, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization.

Capital Expenditures

As of September 30, 2024, there have been no material changes to Dominion Energy’s expectation for planned capital expenditures as disclosed in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. See Note 16 to the Consolidated Financial Statements in this report for additional information regarding Dominion Energy’s outstanding preferred stock and associated dividend rates.

Subsidiary Dividend Restrictions

As of September 30, 2024, there have been no material changes to the subsidiary dividend restrictions disclosed in the Subsidiary Dividend Restrictions section of MD&A in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Collateral and Credit Risk

As of September 30, 2024, there have been no material changes to the collateral requirements disclosed in the Collateral and Credit Risk section of MD&A in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure at September 30, 2024 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

		Gross Credit Exposure				Credit Collateral				Net Credit Exposure
(millions)
Investment grade(1)		$	94			$	—			$	94
Non-investment grade(2)			12				—				12
No external ratings:
Internally rated—investment grade(3)			8				—				8
Internally rated—non-investment grade(4)			25				1				24
Total(5)		$	139			$	1			$	138

(1)

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 43% of the total net credit exposure.

(2)

The five largest counterparty exposures, combined, for this category represented approximately 8% of the total net credit exposure.

(3)

The five largest counterparty exposures, combined, for this category represented approximately 6% of the total net credit exposure.

(4)

The five largest counterparty exposures, combined, for this category represented approximately 16% of the total net credit exposure.

(5)

Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements.

Fuel and Other Purchase Commitments

There have been no material changes outside of the ordinary course of business to Dominion Energy’s fuel and other purchase commitments included in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Other Material Cash Requirements

In addition to the financing arrangements discussed above, Dominion Energy is party to numerous contracts and arrangements obligating it to make cash payments in future years. Dominion Energy expects current liabilities to be paid within the next twelve months. In addition to the items already discussed, the following represent material expected cash requirements recorded on Dominion Energy’s Consolidated Balance Sheet at September 30, 2024. Such obligations include:

Operating and finance lease obligations – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023;

Regulatory liabilities – See Note 12 to the Consolidated Financial Statements in this report;

AROs – See Note 2 to the Consolidated Financial Statements in this report and Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023;

Employee benefit plan obligations – See Note 20 to the Consolidated Financial Statements in this report and Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023;

In addition, Dominion Energy is party to contracts and arrangements which may require it to make material cash payments in future years that are not recorded on its Consolidated Balance Sheets. Such obligations include:

Off-balance sheet leasing arrangements – See Note 14 to the Consolidated Financial Statements in this report; and

Guarantees – See Note 17 to the Consolidated Financial Statements in this report.

Future Issues and Other Matters

See Item 1. Business, Future Issues and Other Matters in MD&A and Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023, Future Issues and Other Matters in the Companies’ Quarterly Report on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024 and Notes 13 and 17 to the Consolidated Financial Statements in this report for additional information on various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows. There have been no updates to the matters discussed in

Future Issues and Other Matters in the Companies’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, with the exception of the items described below.

CVOW Commercial Project

In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. The total cost of the project is estimated to be approximately $10 billion, excluding financing costs. Virginia Power’s current estimate for the 2.6 GW project’s projected levelized cost of energy, including renewable energy credits, is approximately $56/MWh, compared to the initial filing submission of $80-90/MWh. Virginia Power commenced major onshore construction activities in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction of the CVOW Commercial Project. Virginia Power commenced major offshore construction activities in May 2024 following the receipt in January 2024 of final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction. The project is expected to be placed in service by the end of 2026. Through September 30, 2024, Virginia Power had incurred approximately $5.3 billion of costs. In April 2024, a motion was filed in the U.S. District Court for the DC Circuit requesting a preliminary injunction in connection with a complaint filed related to the administrative process for certain permits and approvals received. In May 2024, the U.S. District Court for the DC Circuit denied the motion. As 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, the Companies are subject to a cost sharing mechanism in accordance with the Virginia Commission’s order in December 2022 for incremental construction costs which fall between $10.3 billion and $13.7 billion. Also as 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, Virginia Power entered into an agreement in February 2024 to sell a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the formation of OSWP. In October 2024, Virginia Power and Stonepeak closed on the agreement following satisfaction of regulatory approvals, including from BOEM and the Virginia and North Carolina Commissions. At closing, Virginia Power received $2.6 billion, representing 50% of the CVOW Commercial Project construction costs incurred through closing, less an initial withholding of $145 million. See Note 11 to the Consolidated Financial Statements in this report for more information.

Offshore Wind Vessel Leasing Arrangement

In December 2020, Dominion Energy signed an agreement (most recently amended in August 2024) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel. This vessel is designed to handle current turbine technologies as well as next generation turbines. The lessor is providing equity and has obtained financing commitments from debt investors, totaling $715 million, to fund project costs. Including financing costs, total estimated project costs are approximately $715 million. The project is expected to be completed in early 2025. The initial lease term will commence once construction is substantially complete and the vessel is delivered and will mature after five years. See Note 14 to the Consolidated Financial Statements in this report for additional information.

Dominion Energy Virginia – Nuclear Operating Licenses

In 2020, Virginia Power applied for renewal of its operating licenses for an additional 20 years for the two nuclear units at North Anna. In August 2024, the NRC approved Virginia Power’s application, allowing the units to generate electricity through 2058 and 2060.

Potential Regulated Electric Generation and Transmission Projects

In October 2024, Dominion Energy announced a joint planning initiative with AEP and FirstEnergy. As part of the initiative, the companies have jointly submitted initial project proposals for 765-kV, 500-kV and 345-kV transmission lines in Virginia, Ohio and West Virginia to PJM. If any such proposals are selected by PJM, the participating companies would then undertake an extensive, multi-year process to develop, construct and subsequently operate the transmission line.