Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A discusses Dominion Energy’s results of operations, general financial condition and liquidity 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;

Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives;

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 the Companies share 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 the Companies 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;

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 tariffs, 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, 2024.

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 June 30, 2025, 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, 2024. 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:

20252024$ Change
(millions, except EPS)
Second Quarter
Net income attributable to Dominion Energy$760$563$197
Diluted EPS0.880.640.24
Year-To-Date
Net income attributable to Dominion Energy$1,425$966$459
Diluted EPS1.651.100.55

Overview

Second Quarter 2025 vs. 2024

Net income attributable to Dominion Energy increased 35%, primarily due to an increase in net investment earnings on nuclear decommissioning trust funds and higher rider equity returns reflecting capital investments at Virginia Power. These increases were partially offset by the closings of the East Ohio, Questar Gas and PSNC Transactions.

Year-To-Date 2025 vs. 2024

Net income attributable to Dominion Energy increased 48%, primarily due to the absence of lower market-related impacts on pension and other postretirement plans, higher rider equity returns reflecting capital investments at Virginia Power, increased unrealized gains on economic hedging activities, an increase in non-fuel base rates associated with the settlement of the 2024 electric base rate case in South Carolina, the absence of an impairment associated with the Questar Gas Transaction and an increase in renewable energy tax credits. These increases were partially offset by a 50% noncontrolling interest, a decrease in net investment earnings on nuclear decommissioning trust funds, an increase in charges associated with severe weather events, including storm damage and restoration costs, affecting Virginia Power and the closings of the East Ohio, Questar Gas and PSNC Transactions.

Analysis of Consolidated Operations

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

Second QuarterYear-To-Date
20252024$ Change20252024$ Change
(millions)
Operating revenue$3,810$3,486$324$7,886$7,118$768
Electric fuel and other energy-related purchases946918281,9081,87731
Purchased electric capacity1821(3)2733(6)
Purchased gas4344(1)19016426
Other operations and maintenance883840431,7811,69586
Depreciation and amortization580621(41)1,1621,242(80)
Other taxes1941702440337231
Impairment of assets and other charges5067(17)9697(1)
Other income (expense)44224319945236686
Interest and related charges505470359861,045(59)
Income tax expense22011210826020852
Net income from discontinued operations including noncontrolling interests197(96)—215(215)
Noncontrolling interests54—54100—100

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

Second Quarter 2025 vs. 2024

Operating revenue increased 9%, primarily reflecting:

A $157 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

A $102 million net increase associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized gains on freestanding derivatives ($79 million);

A $66 million increase in sales to electric utility retail customers associated with economic and other usage factors;

A $52 million increase in non-fuel base rates associated with the settlement of the 2024 electric base rate case in South Carolina;

A $17 million increase in sales to customers from non-jurisdictional solar generation facilities at Virginia Power; and

A $15 million increase in sales to electric utility retail customers associated with growth.

These increases were partially offset by:

A $46 million decrease from the relative effect of a planned outage at Millstone;

A $42 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; and

A $19 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 increased 3%, primarily due to an increase in the use of purchased renewable energy credits ($52 million), partially offset by lower commodity costs for electric utilities ($36 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 5%, primarily due to an increase in outage costs at Millstone ($44 million) and an increase in charges associated with severe weather events, including storm damage and restoration costs, affecting Virginia Power ($27 million), partially offset by a decrease in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($19 million) and the absence of costs associated with the business review completed in March 2024 ($16 million).

Depreciation and amortization decreased 7%, primarily due to the absence of RGGI-related amortization ($90 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($41 million).

Other taxes increased 14%, primarily due to an increase in property taxes.

Impairment of assets and other charges decreased 25%, primarily due to the absence of a charge for the impairment of certain nonregulated renewable natural gas facilities ($33 million) and the absence of an impairment of a corporate office building ($17 million), partially offset by a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($51 million).

Other income increased 82%, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($209 million), partially offset by a decrease in non-service components of pension and other postretirement employee benefit plan credits ($29 million).

Interest and related charges increased 7%, primarily due to an increase in net issuances of long-term debt ($58 million) and unrealized losses in 2025 compared to unrealized gains in 2024 associated with freestanding derivatives ($23 million), partially offset by variable rate debt repaid from proceeds associated with the business review completed in March 2024 ($30 million) and decreased interest expense associated with rider deferrals ($14 million), which is offset in operating revenue and does not impact net income.

Income tax expense increased 96%, primarily due to higher pre-tax income ($104 million) and higher taxes on earnings within qualified decommissioning trusts ($34 million), partially offset by an increase in renewable energy tax credits ($34 million).

Net income from discontinued operations including noncontrolling interests decreased 99%, primarily due to the absence of earnings from operations following the closing of the Questar Gas Transaction ($42 million) and PSNC Transaction ($27 million) and the absence of a gain on the closing of the Questar Gas Transaction ($33 million), partially offset by the absence of tax expense associated with the PSNC Transaction ($14 million).

Noncontrolling interests increased $54 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $26 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

Year-To-Date 2025 vs. 2024

Operating revenue increased 11%, primarily reflecting:

A $349 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

A $153 million net increase associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized gains on freestanding derivatives ($12 million);

A $105 million increase in non-fuel base rates associated with the settlement of the 2024 electric base rate case in South Carolina;

An $80 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($99 million), partially offset by a decrease in cooling degree days during the cooling season ($19 million);

An $80 million increase in sales to electric utility retail customers associated with economic and other usage factors;

A $34 million increase in transition service agreements primarily associated with the East Ohio, Questar Gas and PSNC Transactions;

A $33 million increase in sales to electric utility retail customers associated with growth; and

A $26 million increase in sales to customers from non-jurisdictional solar generation facilities at Virginia Power.

These increases were partially offset by:

A $71 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers ($97 million), 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, partially offset by an increase in commodity costs associated with sales to gas utility customers ($26 million);

A $34 million net decrease associated with outages at Millstone attributable to the relative effects of a planned outage ($46 million), partially offset by fewer unplanned outages ($12 million); and

A $29 million decrease associated with severe weather events affecting Virginia Power.

Electric fuel and other energy-related purchases increased 2%, primarily due to an increase in the use of purchased renewable energy credits ($115 million), partially offset by lower commodity costs for electric utilities ($103 million), which are offset in operating revenue and do not impact net income.

Purchased gas increased 16%, primarily due to an increase in commodity costs for gas utility operations, which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 5%, primarily due to an increase in charges associated with severe weather events, including storm damage and restoration costs, affecting Virginia Power ($77 million), and an increase in outage costs at Millstone ($47 million), partially offset by the absence of costs associated with the business review completed in March 2024 ($31 million).

Depreciation and amortization decreased 6%, primarily due to the absence of RGGI-related amortization ($182 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($82 million).

Impairment of assets and other charges decreased 1%, primarily due to the absence of a charge in connection with a settlement of an agreement ($47 million), the absence of a charge for the impairment of certain nonregulated renewable natural gas facilities ($33 million) and the absence of an impairment of a corporate office building ($17 million), partially offset by a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($96 million).

Other income increased 23%, primarily due to the absence of lower market-related impacts on pension and other postretirement plans ($328 million) and an increase in AFUDC associated with rate-regulated projects ($26 million), partially offset by a decrease in net investment gains on nuclear decommissioning trust funds ($186 million), a decrease in non-service components of pension and other postretirement employee benefit plan credits ($52 million) and a decrease in earnings from other investments ($24 million).

Interest and related charges decreased 6%, primarily due to variable rate debt repaid from proceeds associated with the business review completed in March 2024 ($61 million), lower unrealized losses associated with freestanding derivatives ($16 million), higher premiums received on interest rate derivatives ($14 million), the absence of charges incurred due to early debt repayments associated with the business review completed in March 2024 ($12 million) and lower interest rates on commercial paper ($12 million), partially offset by an increase in net issuances of long-term debt ($59 million).

Income tax expense increased 25%, primarily due to higher pre-tax income ($180 million), partially offset by an increase in renewable energy tax credits ($87 million), lower taxes on earnings within qualified decommissioning trusts ($23 million) and a benefit associated with the remeasurement of an uncertain tax position ($18 million).

Net income from discontinued operations including noncontrolling interests decreased $215 million, primarily due to the absence of earnings from operations following the closing of the Questar Gas Transaction ($184 million), PSNC Transaction ($127 million) and East Ohio Transaction ($82 million), the absence of a gain on the closing of the Questar Gas Transaction ($33 million) and the absence of a tax benefit associated with the Questar Gas Transaction ($25 million), partially offset by the absence of a loss on the closing of the East Ohio Transaction ($108 million), the absence of an impairment associated with the Questar Gas Transaction ($78 million), the absence of charges for employee benefit items related to the East Ohio Transaction ($33 million) and the absence of tax expense associated with the PSNC Transaction ($16 million).

Noncontrolling interests increased $100 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $48 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

Results of Operations—Virginia Power

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

20252024$ Change
(millions)
Second Quarter
Net income attributable to Virginia Power$535$477$58
Year-To-Date
Net income attributable to Virginia Power$1,020$938$82

Overview

Second Quarter 2025 vs. 2024

Net income increased 12%, primarily due to higher rider equity returns reflecting capital investments, partially offset by a 50% noncontrolling interest.

Year-To-Date 2025 vs. 2024

Net income increased 9%, primarily due to higher rider equity returns reflecting capital investments, partially offset by a 50% noncontrolling interest and an increase in charges associated with severe weather events, including storm damage and restoration costs.

Analysis of Consolidated Operations

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

Second QuarterYear-To-Date
20252024$ Change20252024$ Change
(millions)
Operating revenue$2,712$2,537$175$5,477$5,026$451
Electric fuel and other energy-related purchases729707221,4981,40890
Purchased electric capacity171612429(5)
Other operations and maintenance553520331,1631,051112
Depreciation and amortization396445(49)794893(99)
Other taxes92722018916524
Impairment of assets and other charges (benefits)50153596(2)98
Other income (expense)8039411061033
Interest and related charges25120447494394100
Income tax expense115120(5)205253(48)
Noncontrolling interests54—54100—100

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

Second Quarter 2025 vs. 2024

Operating revenue increased 7%, primarily reflecting:

A $157 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

A $56 million increase in sales to electric utility retail customers associated with economic and other usage factors;

A $17 million increase in sales to customers from non-jurisdictional solar generation facilities; and

A $13 million increase in sales to electric utility retail customers associated with growth.

These increases were partially offset by:

A $53 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; and

A $16 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 increased 3%, primarily due to an increase in the use of purchased renewable energy credits ($52 million), partially offset by lower commodity costs for electric utilities ($47 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 6%, primarily due to an increase in salaries, wages and benefits and administrative costs ($29 million), an increase in charges associated with severe weather events, including storm damage and restoration costs ($27 million), and an increase in outside services ($14 million), partially offset by a decrease in certain expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($19 million).

Depreciation and amortization decreased 11%, primarily due to the absence of RGGI-related amortization ($90 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($33 million).

Other taxes increased 28%, primarily due to an increase in property taxes.

Impairment of assets and other charges increased $35 million, primarily due to a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project.

Other income increased $41 million, primarily due to an increase in net investment gains on nuclear decommissioning trust funds ($27 million) and an increase in AFUDC associated with rate-regulated projects ($13 million).

Interest and related charges increased 23%, primarily due to an increase in long-term debt borrowings ($28 million) and higher average outstanding principal on commercial paper and intercompany borrowings with Dominion Energy ($24 million), partially offset by decreased interest expense associated with rider deferrals ($14 million), which is offset in operating revenue and does not impact net income.

Income tax expense decreased 4%, primarily due to an increase in renewable energy tax credits.

Noncontrolling interests increased $54 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $26 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

Year-To-Date 2025 vs. 2024

Operating revenue increased 9%, primarily reflecting:

A $349 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

A $74 million increase in sales to electric utility retail customers associated with economic and other usage factors;

A $57 million net increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season ($73 million), partially offset by a decrease in cooling degree days during the cooling season ($16 million);

A $29 million increase in sales to electric utility retail customers associated with growth; and

A $26 million increase in sales to customers from non-jurisdictional solar generation facilities.

These increases were partially offset by:

A $45 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; and

A $29 million decrease associated with severe weather events.

Electric fuel and other energy-related purchases increased 6%, primarily due to an increase in the use of purchased renewable energy credits ($115 million), partially offset by lower commodity costs for electric utilities ($51 million), which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 11%, primarily due to an increase in charges associated with severe weather events, including storm damage and restoration costs ($77 million), an increase in salaries, wages and benefits and administrative costs ($70 million) and an increase in outside services ($15 million), partially offset by a decrease in bad debt expense ($12 million).

Depreciation and amortization decreased 11%, primarily due to the absence of RGGI-related amortization ($182 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($64 million) and an increase in amortization associated with non-fuel riders ($12 million).

Other taxes increased 15%, primarily due to an increase in property taxes.

Impairment of assets and other charges increased $98 million, primarily due to a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($96 million) and the absence of a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review ($11 million).

Other income increased 3%, primarily due to an increase in AFUDC associated with rate-regulated projects ($31 million), partially offset by a decrease in net investment gains on nuclear decommissioning trust funds ($23 million).

Interest and related charges increased 25%, primarily due to an increase in long-term debt borrowings ($54 million) and higher average outstanding principal on commercial paper and intercompany borrowings with Dominion Energy ($44 million).

Income tax expense decreased 19%, primarily due to an increase in renewable energy tax credits.

Noncontrolling interests increased $100 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $48 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

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 EnergyEPS**(1)**
20252024$ Change20252024$ Change
(millions, except EPS)
Second Quarter
Dominion Energy Virginia$549$485$64$0.64$0.58$0.06
Dominion Energy South Carolina10969400.130.080.05
Contracted Energy47100(53)0.050.12(0.07)
Corporate and Other55(91)1460.06(0.14)0.20
Consolidated$760$563$197$0.88$0.64$0.24
Year-To-Date
Dominion Energy Virginia$1,110$909$201$1.30$1.09$0.21
Dominion Energy South Carolina2611491120.310.180.13
Contracted Energy156222(66)0.180.26(0.08)
Corporate and Other(102)(314)212(0.14)(0.43)0.29
Consolidated$1,425$966$459$1.65$1.10$0.55

(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:

Second QuarterYear-To-Date
20252024% Change20252024% Change
Electricity delivered (million MWh)23.722.65%49.146.07%
Electricity supplied (million MWh):
Utility23.722.6549.146.07
Non-Jurisdictional0.60.6—0.90.9—
Degree days (electric distribution and utility service area):
Cooling612648(6)632652(3)
Heating176179(2)2,1181,83815
Average electric distribution customer accounts (thousands)2,8042,77812,8022,7751

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

Second Quarter 2025 vs. 2024 Increase (Decrease)Year-To-Date 2025 vs. 2024 Increase (Decrease)
AmountEPSAmountEPS
(millions, except EPS)
Weather$(12)$(0.01)$42$0.05
Customer usage and other factors520.06770.09
Customer-elected rate impacts——(7)(0.01)
Rider equity return1430.172760.33
Storm damage and restoration costs(2)—60.01
Planned outage costs(2)—4—
Nuclear production tax credit2—190.02
Sale of noncontrolling interest(80)(0.10)(148)(0.18)
Depreciation and amortization(7)(0.01)(12)(0.01)
Interest expense, net(28)(0.03)(40)(0.05)
Other(2)(0.01)(16)(0.02)
Share dilution—(0.01)—(0.02)
Change in net income contribution$64$0.06$201$0.21

Dominion Energy South Carolina

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

Second QuarterYear-To-Date
20252024% Change20252024% Change
Electricity delivered (million MWh)5.55.5—%10.810.53%
Electricity supplied (million MWh)5.85.8—11.311.12
Degree days (electric distribution service areas):
Cooling269281(4)269281(4)
Heating1020(50)85364033
Gas distribution throughput (bcf):
Sales151315373216
Average distribution customer accounts (thousands):
Electric81980818138021
Gas47145934694563

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

Second Quarter 2025 vs. 2024 Increase (Decrease)Year-To-Date 2025 vs. 2024 Increase (Decrease)
AmountEPSAmountEPS
(millions, except EPS)
Weather$(3)$—$17$0.02
Customer usage and other factors100.01150.02
Customer-elected rate impacts2—70.01
Base rate case & Natural Gas Rate Stabilization Act impacts400.05840.10
Capital cost rider(2)—(4)—
Depreciation and amortization(4)—(8)(0.01)
Interest expense, net(2)—(4)—
Other(1)—5—
Share dilution—(0.01)—(0.01)
Change in net income contribution$40$0.05$112$0.13

Contracted Energy

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

Second QuarterYear-To-Date
20252024% Change20252024% Change
Electricity supplied (million MWh)4.05.1(22)%8.99.5(6)%

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

Second Quarter 2025 vs. 2024 Increase (Decrease)Year-To-Date 2025 vs. 2024 Increase (Decrease)
AmountEPSAmountEPS
(millions, except EPS)
Margin$8$0.01$(4)$—
Planned Millstone outages(1)(62)(0.07)(64)(0.08)
Unplanned Millstone outages(1)(2)—100.01
Depreciation and amortization(2)—(5)—
Interest expense, net3—3—
Other2(0.01)(6)(0.01)
Share dilution————
Change in net income contribution$(53)$(0.07)$(66)$(0.08)

(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:

Second QuarterYear-To-Date
20252024$ Change20252024$ Change
(millions, except EPS)
Specific items attributable to operating segments$125$(67)$192$(7)$19$(26)
Specific items attributable to Corporate and Other segment(14)63(77)(20)(105)85
Net income (expense) from specific items111(4)115(27)(86)59
Corporate and other operations:
Interest expense, net(114)(137)23(223)(317)94
Equity method investments———(5)—(5)
Pension and other postretirement benefit plans5772(15)114137(23)
Corporate service company costs(11)(25)14(25)(52)27
Other123964460
Net expense from corporate and other operations(56)(87)31(75)(228)153
Total net income (expense)$55$(91)$146$(102)$(314)$212
EPS impact$0.06$(0.14)$0.20$(0.14)$(0.43)$0.29

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 June 30, 2025, this primarily included $15 million after-tax loss for derivative mark-to-market changes. For the six months ended June 30, 2025, this primarily included $20 million after-tax loss for derivative mark-to-market changes.

For the three months ended June 30, 2024, this primarily included $97 million net income from discontinued operations, primarily associated with operations included in the PSNC and Questar Gas Transactions, including the gain on sale associated with the Questar Gas Transaction. For the six months ended June 30, 2024, this primarily included a $251 million after-tax loss associated with lower market-related impacts on pension and other postretirement plans, $215 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 Transaction, gain on sale associated with the Questar Gas Transaction, as well as an impairment charge associated with the Questar Gas Transaction, a $34 million after-tax loss for derivative mark-to-market changes and $25 million in after-tax costs associated with the business review completed in March 2024.

Outlook

As of June 30, 2025, there have been no material changes to Dominion Energy’s 2025 outlook as described in Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024. See Future Issues and Other Matters for a discussion of certain items that may have an impact on Dominion Energy’s 2025 net income on a per share basis.

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:

20252024
(millions)
Cash, restricted cash and equivalents at January 1$365$301
Cash flows provided by (used in):
Operating activities(1)2,4292,838
Investing activities(6,385)1,328
Financing activities4,004(4,260)
Net increase (decrease) in cash, restricted cash and equivalents48(94)
Cash, restricted cash and equivalents at June 30$413$207

(1)

Includes cash outflows of $39 million and $40 million for energy efficiency programs in Virginia for the six months ended June 30, 2025 and 2024, respectively, and $12 million for DSM programs in South Carolina for both the six months ended June 30, 2025 and 2024.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities decreased $409 million, inclusive of a $324 million decrease from discontinued operations. Net cash provided by continuing operations decreased $85 million, primarily due to lower deferred fuel and purchased gas cost recoveries ($935 million), partially offset by settlements of interest rate swaps ($362 million), an increase from changes in working capital ($94 million) and an increase of $394 million primarily due to

higher operating cash flows from electric utility operations driven by riders, customer usage and weather.

Investing Cash Flows

Net cash from Dominion Energy’s investing activities decreased $7.7 billion, primarily due to the absence of net proceeds from the East Ohio and Questar Gas Transactions in 2024 ($7.2 billion), an increase in plant construction and other property additions ($482 million) and the absence of distributions from equity method affiliates in 2024 ($126 million), partially offset by lower acquisitions of solar development projects ($177 million).

Financing Cash Flows

Net cash from Dominion Energy’s financing activities increased $8.3 billion, primarily due to the absence of net repayments on 364-day term loan facilities in 2024 ($4.8 billion), an increase in net issuances of short-term debt ($2.1 billion), an increase in net issuances of long-term debt ($1.4 billion), capital contributions from Stonepeak to OSWP ($724 million), the absence of supplemental credit facility repayments in 2024 ($450 million) and the absence of the partial repurchase of Series B Preferred Stock in 2024 ($440 million), partially offset by a $1.4 billion decrease due to repayments of securitization bonds in 2025 which were issued in 2024, distributions from OSWP to Stonepeak ($106 million) and impacts from the sale of a noncontrolling interest in OSWP ($88 million).

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, 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 six months ended June 30, 2025.

Revolving Credit Facilities

Dominion Energy’s short-term financing is primarily supported by its joint revolving credit facility. In April 2025, Dominion Energy amended its joint revolving credit facility to, among other things, increase the facility limit from $6.0 billion to $7.0 billion and extend the maturity date from June 2026 to April 2030. In addition, in April 2025, Dominion Energy entered into a $1.0 billion 364-day revolving credit agreement. At June 30, 2025, Dominion Energy had $4.6 billion of unused capacity under these revolving credit facilities. 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 June 30, 2025, Dominion Energy’s Consolidated Balance Sheet included $424 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.

Long-Term Debt

Sustainability Revolving Credit Agreement

In April 2025, the Sustainability Revolving Credit Agreement, which is described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, was amended to, among other things, increase the facility limit from $900 million to $1.0 billion and extend the maturity date from June 2025 to April 2028. At June 30, 2025, Dominion Energy had no borrowings outstanding under this facility. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Issuances and Borrowings of Long-Term Debt

During the six months ended June 30, 2025, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds were used for the repayment of existing indebtedness and for general corporate purposes.

MonthTypePublic / PrivateEntityPrincipalRateStated Maturity
(millions)
JanuaryFirst mortgage bondsPublicDESC$4505.300%2035
MarchSenior notesPublicVirginia Power6255.1502035
MarchSenior notesPublicVirginia Power6255.6502055
MarchSenior notesPublicDominion Energy8005.0002030
MarchSenior notesPublicDominion Energy7005.4502035
MaySenior notesPublicDominion Energy1,0004.6002028
Total issuances and borrowings$4,200

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, issuing between approximately $5.5 billion and $8.0 billion of long-term debt during 2025, inclusive of amounts issued through June 30, 2025 as shown in the table above. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures, net of reimbursements from Stonepeak for the CVOW Commercial Project, and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends 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 six months ended June 30, 2025:

MonthTypeEntityPrincipal (1)RateStated Maturity
(millions)
Debt scheduled to mature in 2025Multiple$830various
Early repurchases and redemptions
None
Total repayments, repurchases and redemptions$830

(1)

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

See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

During the six months ended June 30, 2025, Dominion Energy was not required to and did not complete the remarketing of any of its long-term debt. In 2025, Dominion Energy expects to remarket approximately $225 million of its tax-exempt bonds.

Credit Ratings

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 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. In May 2025, Moody’s affirmed its credit ratings but revised its outlook for Dominion Energy from stable to negative. As of June 30, 2025, there have been no other changes in Dominion Energy’s credit ratings from those described in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Financial Covenants

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, Dominion Energy is subject to various covenants present in the agreements underlying Dominion Energy’s debt. As of June 30, 2025, there have been no material changes to these covenants, nor any events of default under these covenants except the following changes. As discussed in Note 16 to the Consolidated Financial Statements of this report, Dominion Energy entered into an amended joint revolving credit facility as well as an amended Sustainability Revolving Credit Agreement. Within both agreements, the calculation of equity utilized in the total debt to total capital ratio was updated for a technical clarification. In addition, under the amended joint revolving credit facility, if Dominion Energy or any of its material subsidiaries failed to make payment on various debt obligations in excess of $250 million, or $150 million for DESC, the lenders could require the defaulting company, if it is a borrower under Dominion Energy’s joint revolving credit facility, to accelerate its repayment of any outstanding borrowings and the lenders could terminate their commitments, if any, to lend funds to that company under the credit facility.

As discussed in Note 16 to the Consolidated Financial Statements of this report, in April 2025, Dominion Energy also entered into a new $1.0 billion 364-day revolving credit agreement, which includes a maximum allowed total debt to total capital ratio that is consistent with the allowed ratio under these two facilities.

Common Stock, Preferred Stock and Other Equity Securities

In the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, there is a discussion of Dominion Energy’s existing equity financing programs, including

Dominion Energy Direct®. During the six months ended June 30, 2025, Dominion Energy issued $70 million of stock through these programs, net of fees and commissions. During the first quarter of 2025, Dominion Energy entered forward sale agreements under its May 2024 at-the-market program for approximately 8.8 million shares of its common stock expected to be settled in the fourth quarter of 2025 at a weighted-average initial forward price of $55.34 per share. Including the forward sale agreements entered from September through December 2024, Dominion Energy has entered forward sale agreements for approximately 18.5 million shares of its common stock expected to be settled in the fourth quarter of 2025 at a weighted-average initial forward price of $56.62 per share. In February 2025, Dominion Energy entered into a new at-the-market-program. During the second quarter of 2025, Dominion Energy entered forward sale agreements under its February 2025 at-the-market program for approximately 11.0 million shares of its common stock expected to be settled in the fourth quarter of 2026 at a weighted-average initial forward price of $55.83 per share. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Through June 30, 2025, Dominion Energy has not repurchased and does not plan to repurchase shares of common stock in 2025, 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. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Capital Expenditures

As of June 30, 2025, there have been no material changes to Dominion Energy’s expectation for planned capital expenditures as disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 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 rate.

Subsidiary Dividend Restrictions

As of June 30, 2025, there have been no material changes to the subsidiary dividend restrictions disclosed in the Subsidiary Dividend Restrictions section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Collateral and Credit Risk

As of June 30, 2025, there have been no material changes to the collateral requirements disclosed in the Collateral and Credit Risk section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 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 June 30, 2025 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 ExposureCredit CollateralNet Credit Exposure
(millions)
Investment grade(1)$55$—$55
Non-investment grade(2)11—11
No external ratings:
Internally rated—investment grade(3)53746
Internally rated—non-investment grade(4)615
Total(5)$125$8$117

(1)

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 31% of the total net credit exposure.

(2)

The five largest counterparty exposures, combined, for this category represented approximately 10% of the total net credit exposure.

(3)

The five largest counterparty exposures, combined, for this category represented approximately 40% of the total net credit exposure.

(4)

The five largest counterparty exposures, combined, for this category represented approximately 3% 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’ Annual Report on Form 10-K for the year ended December 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 June 30, 2025. 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, 2024;

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

AROs – See Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024;

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, 2024.

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 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024; 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, 2024, Future Issues and Other Matters in the Companies’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 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.

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 2.6 GW project is expected to be placed in service by the end of 2026 with an estimated total project cost of approximately $10.9 billion, excluding financing costs, that reflects an estimated impact of certain tariffs which became effective between March and July 2025. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs. Virginia Power’s estimate for the project’s projected levelized cost of energy, including renewable energy credits, is approximately $63/MWh, compared to the initial filing submission of $80-90/MWh.

The expected total project cost increase of $0.1 billion relative to Virginia Power’s May 2025 construction update filing with the Virginia Commission reflects current projections of tariffs on equipment expected to be delivered from March 2025 through the end of the third quarter of 2025 that either contains steel and/or originates from Mexico, Canada, a European Union member or other applicable countries. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component. If the current tariffs were to remain in effect through the end of 2026, the expected project costs for offshore wind and onshore electrical interconnection equipment could increase by up to approximately $0.3 billion. If the tariff requirements and rates related to the European Union are enacted consistent with the framework trade agreement announced in July 2025, such amount could increase by approximately $0.1 billion.

The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 7% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs, if any, costs to maintain necessary permits, approvals and authorizations, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events.

Virginia Power commenced major onshore construction activities for the CVOW Commercial Project in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction. Onshore construction activities are anticipated to be completed in early 2026. Virginia Power commenced major offshore construction activities in May 2024 following the receipt of final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction in January 2024. During the first installation season which concluded in October 2024 and for the period of the second installation season which commenced in May 2025 through July 2025, 134 monopiles were installed with the remaining 42 monopiles expected to be installed during the remainder of the second installation season which runs through October 2025. Transition pieces began to be installed on monopiles near the end of 2024 with 59 transition pieces installed through July 2025 and the remaining 117 expected to be installed by early 2026. The first of three offshore substations was installed in March 2025. Deepwater export cables commenced being laid in late 2024 with the last of nine completed in July 2025. Of the 176 segments of interarray cable, expected to total 260 miles, 12 have been installed through July 2025 with the remaining to be laid throughout 2025 and 2026. Turbines are expected to commence installment in the second half of 2025 and be completed by the end of 2026.

Federal Income Tax Laws

The OBBBA modifies many of the tax credits for renewable and clean energy technologies created under the IRA and discussed in Note 5 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Provisions include the termination of the production and investment tax credits for wind and solar for facilities placed in service after 2027, except for certain facilities that commence construction by July 2026, and a phase out of other production and investment tax credits for certain clean energy facilities, including but not limited to battery storage and small modular reactors in which construction begins through 2035, at which point the credits are fully phased out. The OBBBA also includes the prohibition of tax credits for prohibited foreign entities and projects receiving material assistance from certain foreign entities as well as the extension of the production tax credit for renewable natural gas sold through 2029. While the impacts of

the OBBBA could be material to Dominion Energy’s results of operations, financial condition and/or cash flows, existing regulatory frameworks provide rate recovery mechanisms that could substantially mitigate such impacts for its regulated electric utilities.

Proposed and/or Recently Issued EPA Rules

In May 2024, the EPA released a final rule to tighten aspects of the Mercury and Air Toxics Standards Risk and Technology Review, including the reduction of emissions limits for filterable particulate matter, and requiring the use of continuous emissions monitoring systems to demonstrate compliance. In June 2025, the EPA released a proposed rule repealing the majority of the May 2024 final rule. Additionally in May 2024, the EPA finalized a package of rules designed to reduce CO2 emissions from certain fossil fuel-fired electric generating units. The final rule set standards of performance and emission guidelines for CO2 emissions from new and reconstructed gas-fired combustion turbines and modified coal-fired steam generating units. The rulemaking package also included emission guidelines, including emission limits, for existing coal, oil and gas-fired steam generating units. In June 2025, the EPA released a proposed rule repealing all greenhouse gas emissions standards from fossil fuel-fired power plants. As an alternative, the EPA simultaneously released a proposed rule eliminating the best system emission reduction determinations, presumptive standards of performance and all related requirements in the emission guidelines for existing steam generating units (including modified coal-fired steam generating units) as well as carbon sequestration requirements for new natural gas-fired, baseload combustion turbines. Until the EPA ultimately takes final action on the proposed rulemakings and publishes all final rules in the federal register, Dominion Energy is unable to predict whether or to what extent the new rules will ultimately require additional controls or other actions. The effects of these proposed rulemakings could have a material impact on Dominion Energy’s financial condition and cash flows.

South Carolina Legislation

The SCESA, enacted in May 2025, establishes a rate stabilization mechanism whereby an electric utility, including DESC, may elect to request South Carolina Commission approval to adjust its base rates up or down annually when changes in the utility’s investments, revenues and expenses cause its earned ROE to be more than 50 basis points below or above the ROE approved by the South Carolina Commission in the utility’s latest general rate case. Electric utilities electing rate stabilization would be required to file a general rate case every five years. In addition, any new electric generating facility of more than 250 MW, once completed, would be required to undergo a separate prudency review by the South Carolina Commission before any construction or operating costs related to such facility could be included in the rate stabilization process.

Dominion Energy South Carolina – Nuclear Operating License

In 2023, DESC applied for renewal of its operating license for Unit 1 at Summer for an additional 20 years. In June 2025, the NRC approved DESC’s application, allowing the unit to generate electricity through 2062.

ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The matters discussed in this Item may contain “forward-looking statements” as described in the introductory paragraphs under Part I., Item 2. MD&A in this report. The reader’s attention is directed to those paragraphs for discussion of various risks and uncertainties that may impact the Companies.

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates, foreign currency exchange rates and equity securities prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts associated with the CVOW Commercial Project which it manages through foreign currency exchange rate derivatives. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel.

The following sensitivity analysis estimates the potential loss of future earnings or fair value from market risk sensitive instruments over a selected time period due to a 10% change in commodity prices, interest rates or foreign currency exchange rates.

Commodity Price Risk

To manage price risk, the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products.

The derivatives used to manage commodity price risk are executed within established policies and procedures and may include instruments such as futures, forwards, swaps, options and FTRs that are sensitive to changes in the related commodity prices. For sensitivity analysis purposes, the hypothetical change in market prices of commodity-based derivative instruments is determined based on models that consider the market prices of commodities in future periods, the volatility of the market prices in each period, as well as the time value factors of the derivative instruments. Prices and volatility are principally determined based on observable market prices.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $41 million and a hypothetical 10% increase in commodity prices would have resulted in a decrease of $18 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of June 30, 2025 and December 31, 2024, respectively.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $82 million and $15 million in the fair value of Virginia Power’s commodity-based derivative instruments as of June 30, 2025 and December 31, 2024, respectively.

The impact of a change in energy commodity prices on the Companies’ commodity-based derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net losses from commodity-based financial derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction, such as revenue from physical sales of the commodity.

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in an $18 million and $12 million decrease in earnings at June 30, 2025 and December 31, 2024, respectively. For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $9 million and $7 million decrease in earnings at June 30, 2025 and December 31, 2024, respectively.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate lock agreements to manage interest rate risk. As of June 30, 2025, Dominion Energy and Virginia Power had $10.1 billion and $5.5 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $327 million and $234 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at June 30, 2025. As of December 31, 2024, Dominion Energy and Virginia Power had $10.8 billion and $3.8 billion, respectively, of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $157 million and $155 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2024.

The impact of a change in interest rates on the Companies’ interest rate-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from interest rate derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Foreign Currency Exchange Rate Risk

The Companies utilize foreign currency exchange rate swaps to economically hedge the foreign currency exchange risk associated with fixed price contracts related to the CVOW Commercial Project denominated in foreign currencies. As of June 30, 2025 and December 31, 2024, Dominion Energy had €811 million and €1.1 billion, respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding. A hypothetical 10% increase in the U.S. dollar to Euro exchange rate would have resulted in a decrease of $87 million and $106 million in the fair value of Dominion Energy’s foreign currency swaps at June 30, 2025 and December 31, 2024, respectively.

The impact of a change in exchange rates on the Companies’ foreign currency-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from foreign exchange derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Investment Price Risk

The Companies are subject to investment price risk due to securities held as investments in nuclear decommissioning and rabbi trust funds that are managed by third-party investment managers. These trust funds primarily hold marketable securities that are reported in the Companies’ Consolidated Balance Sheets at fair value.

Dominion Energy recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $364 million, $703 million and $1.1 billion for the six months ended June 30, 2025 and 2024 and the year ended December 31, 2024, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $29 million for the six months ended June 30, 2025 and $(28) million for the year ended December 31, 2024, and a net decrease of $34 million for the six months ended June 30, 2024.

Virginia Power recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $189 million, $361 million and $580 million for the six months ended June 30, 2025 and 2024 and the year ended December 31, 2024, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Virginia Power recorded in AOCI and regulatory liabilities, a net increase in unrealized gains (losses) on debt investments of $7 million for the six months ended June 30, 2025 and $(10) million for the year ended December 31, 2024, and a net decrease of $18 million for the six months ended June 30, 2024.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Differences between actual and expected returns on plan assets are immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a plan is determined to qualify for a remeasurement. A hypothetical 0.25% decrease in the expected long-term rate of return on plan assets would have a $28 million impact for the year ending December 31, 2025, and would have had a $31 million impact for the year ended December 31, 2024, to the expected returns on plan assets.

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