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What changed in Dominion Energy's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Dominion Energy's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+499 added−488 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-21)

Top changes in Dominion Energy's 2023 10-K

499 paragraphs added · 488 removed · 369 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

165 edited+34 added−69 removed160 unchanged
Biggest changeConsistent with its ownership percentage, Dominion Energy’s 2021 emissions data reported under its Corporate GHG Inventory includes emissions from the Q-Pipe Group (through December 2021) as well as the entire year of operations for Hope. • For Dominion Energy’s electric generation operations, total CO 2 equivalent emissions were 31.7 million metric tons in 2021, including 9.5 million metric tons from DESC and 22.2 million metric tons from Virginia Power. • For Dominion Energy’s electric transmission and distribution operations, direct CO 2 equivalent emissions were 0.04 million metric tons in 2021. • For Dominion Energy’s natural gas assets, total CO 2 equivalent emissions were 2.7 million metric tons in 2021, including 0.5 million metric tons associated with the Q-Pipe Group and Hope. • For Dominion Energy’s proportional interest in Cove Point’s operations, total CO 2 equivalent emissions were 0.6 million metric tons in 2021.
Biggest changeConsistent with its ownership percentage, Dominion Energy’s 2022 emissions data reported under its Corporate GHG Inventory includes emissions from Hope (through August 2022), as well as the entire year of operations for the gas entities expected to be sold as part of the East Ohio, Questar Gas, and PSNC Transactions and Dominion Energy’s 50% noncontrolling interest in Cove Point. • For Dominion Energy’s electric generation operations, total CO 2 equivalent emissions were 30.6 million metric tons in 2022, including 9.3 million metric tons from DESC and 21.3 million metric tons from Virginia Power. • For Dominion Energy’s electric transmission and distribution operations, direct CO 2 equivalent emissions were 0.08 million metric tons in 2022. • For Dominion Energy’s natural gas operations, total CO 2 equivalent emissions were 1.9 million metric tons in 2022, including 0.06 million metric tons associated with Hope. • For Dominion Energy’s proportional interest in Cove Point’s operations, total CO 2 equivalent emissions were 0.6 million metric tons in 2022. • For Dominion Energy’s corporate operations, which includes renewable natural gas operations and Dominion Privatization assets, in addition to building heat and Dominion Energy’s vehicle and aviation fleets, total CO 2 equivalent emissions were 0.09 million metric tons in 2022.
Subsequently in December 2021 and March 2022, Dominion Energy sold 5% and the remaining 15% of its noncontrolling ownership interest in Wrangler to Interstate Gas Supply, Inc. for cash consideration of $33 million and $85 million, respectively. See Note 9 to the Consolidated Financial Statements for additional information.
Subsequently in December 2021 and March 2022, Dominion Energy sold 5% and the remaining 15%, respectively, of its noncontrolling ownership interest in Wrangler to Interstate Gas Supply, Inc. for cash consideration of $33 million and $85 million, respectively. See Note 9 to the Consolidated Financial Statements for additional information.
CORPORATE AND OTHER Corporate and Other Segment-Virginia Power Virginia Power’s Corporate and Other segment primarily includes certain specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
Corporate and Other Segment-Virginia Power Virginia Power’s Corporate and Other segment primarily includes certain specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
REGULATION The Companies are subject to regulation by various federal, state and local authorities, including the state commissions of Virginia, North Carolina, South Carolina, Ohio, Utah, Wyoming and Idaho, SEC, FERC, EPA, DOE, PHMSA, NRC, U.S. Army Corps of Engineers and the U.S. Department of Transportation.
REGULATION The Companies are subject to regulation by various federal, state and local authorities, including the state commissions of Virginia, North Carolina, South Carolina, Ohio, Utah, Wyoming and Idaho, SEC, FERC, EPA, DOE, PHMSA, NRC, U.S. Army Corps of Engineers and U.S. Department of Transportation.
See Note 5 to the Consolidated Financial Statements and Future Issues and Other Matters in Item 7. MD&A for additional information on the IRA. Innovation and Energy Infrastructure Modernization One of the pillars of Dominion Energy’s net zero strategy is a focus on innovation as way to advance technology and sustainability.
See Note 5 to the Consolidated Financial Statements and Future Issues and Other Matters in Item 7. MD&A for additional information on the IRA. Innovation and Energy Infrastructure Modernization One of the pillars of Dominion Energy’s net zero strategy is a focus on innovation as a way to advance technology and sustainability.
Dominion Energy offers various efficiency programs designed to reduce energy consumption in Virginia, North Carolina, Ohio, South Carolina, Utah and Wyoming, including programs such as: • Energy audits and assessments; • Incentives for customers to upgrade or install certain energy efficient measures and/or systems; • Weatherization assistance to help income-eligible customers reduce their energy usage; • Home energy planning, which provides homeowners with a step-by-step roadmap to efficiency improvements to reduce gas usage; and • Rebates for installing high-efficiency equipment and qualified electric vehicle chargers.
Dominion Energy offers various efficiency programs designed to reduce energy consumption in Virginia, North Carolina, Ohio, South Carolina, Utah and Wyoming, including programs such as: • Energy audits and assessments; • Incentives for customers to upgrade or install certain energy efficient measures and/or systems; • Weatherization assistance to help income-eligible customers reduce their energy usage; • Home energy planning, which provides homeowners with a step-by-step roadmap to efficiency improvements to reduce gas usage; and 33 • Rebates for installing high-efficiency equipment and qualified electric vehicle chargers.
Recent North Carolina legislation provides Virginia Power the option to apply for a multi-year rate plan to establish base rates under a performance-based rate plan rather than a general rate case. Under this optional structure, rates would be set for a multi-year period and be subject to revenue decoupling for residential customers, an annual earnings sharing mechanism and performance-based requirements.
Recent North Carolina legislation provides Virginia Power the option to apply for a multi-year rate plan to establish base rates under a performance-based rate plan rather than a general rate case. 26 Under this optional structure, rates would be set for a multi-year period and be subject to revenue decoupling for residential customers, an annual earnings sharing mechanism and performance-based requirements.
The capital cost rider also provides for the return to retail electric 28 customers of certain amounts associated with the NND Project. Revenue from the capital cost rider component of retail electric rates will continue to decline over the 20-year period as capital cost rate base is reduced. See Note 13 to the Consolidated Financial Statements for additional information.
The capital cost rider also provides for the return to retail electric customers of certain amounts associated with the NND Project. Revenue from the capital cost rider component of retail electric rates will continue to decline over the 20-year period as capital cost rate base is reduced. See Note 13 to the Consolidated Financial Statements for additional information.
See Note 13 to the Consolidated Financial Statements for additional information. Gas Regulation in Ohio East Ohio is subject to regulation of rates and other aspects of its business by the Ohio Commission. When necessary, East Ohio seeks general base rate increases to recover increased operating costs and a fair return on rate base investments.
See Note 13 to the Consolidated Financial Statements for additional information. 27 Gas Regulation in Ohio East Ohio is subject to regulation of rates and other aspects of its business by the Ohio Commission. When necessary, East Ohio seeks general base rate increases to recover increased operating costs and a fair return on rate base investments.
Dominion Energy is committed to increasing its diverse workforce representation to 40% by year-end 2026; to be adjusted as necessary based on position and market availability. During 2022, Dominion Energy increased diverse representation within its workforce from 35.5% to 37.0%, following an increase during 2021 from 34.7% to 35.5%.
Dominion Energy is committed to increasing its diverse workforce representation to 40% by year-end 2026; to be adjusted as necessary based on position and market availability. During 2023, Dominion Energy increased diverse representation within its workforce from 37.0% to 37.7%, following an increase during 2022 from 35.5% to 37.0% and an increase during 2021 from 34.7% to 35.5%.
Also in August 2022, Virginia Power filed a petition for 16 limited reconsideration relating to the performance standard for operation of the CVOW Commercial Project included in the Virginia Commission’s August order. The Virginia Commission granted reconsideration and suspended in part the August order pending its reconsideration with Rider OSW approved on an interim basis.
Also in August 2022, Virginia Power filed a petition for limited reconsideration relating to the performance standard for operation of the CVOW Commercial Project included in the Virginia Commission’s August order. The Virginia Commission granted reconsideration and suspended in part the August order pending its reconsideration with Rider OSW approved on an interim basis.
Variability in earnings is driven primarily by changes in rates, weather, customer growth and other factors impacting consumption such as the economy and energy conservation, in addition to operating and maintenance expenditures. DESC’s electric transmission operations serve its electric distribution operations as well as certain wholesale customers.
Variability in earnings is driven primarily by changes in rates, weather, customer growth and other factors impacting consumption such as the economy and energy conservation, in addition to operating and maintenance expenditures. 19 DESC’s electric transmission operations serve its electric distribution operations as well as certain wholesale customers.
DESC has also notified the South Carolina Commission that DESC would seek to recover the net lost revenues resulting from the DSM programs through its annual Natural Gas Rate Stabilization Act proceeding. See Note 13 to the Consolidated Financial Statements for additional information.
DESC has also notified the 28 South Carolina Commission that DESC would seek to recover the net lost revenues resulting from the DSM programs through its annual Natural Gas Rate Stabilization Act proceeding. See Note 13 to the Consolidated Financial Statements for additional information.
Market-based prices for electricity are largely dependent on commodity prices and the demand for electricity. Capacity prices are dependent upon resource requirements in relation to the supply available (both existing and new) in the forward capacity auctions, which are held approximately three years in advance of the associated delivery year.
Market-based prices for electricity are largely dependent on commodity prices and the demand for electricity. Capacity prices are dependent upon 22 resource requirements in relation to the supply available (both existing and new) in the forward capacity auctions, which are held approximately three years in advance of the associated delivery year.
For the purposes of measuring diversity, Dominion Energy includes employees who identify their gender as female and/or their race/ethnicity as American Indian or Alaskan Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander or Two or More Races.
For the purposes of measuring diversity, Dominion Energy includes employees who identify their gender as female and/or their race/ethnicity as 13 American Indian or Alaskan Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander or Two or More Races.
Base rates for PSNC are designed primarily based on rate design methodology in which the 29 majority of operating costs are recovered through volumetric charges. The volumetric charges for the residential and commercial customers are subject to revenue decoupling and adjusted for changes in usage per customer.
Base rates for PSNC are designed primarily based on rate design methodology in which the majority of operating costs are recovered through volumetric charges. The volumetric charges for the residential and commercial customers are subject to revenue decoupling and adjusted for changes in usage per customer.
In February 2022, Dominion Energy expanded this commitment to cover Scope 2 emissions and material categories of Scope 3 emissions: electricity purchased to power the grid, fuel purchased for its power stations and gas distribution systems and consumption of sales gas by natural gas customers.
In February 2022, Dominion Energy expanded this commitment to cover Scope 2 emissions and material categories of Scope 3 emissions: electricity purchased to power the grid, fossil fuel purchased for its power stations and gas distribution systems and consumption of sales gas by natural gas customers.
Clean Energy Diversity To achieve its net zero commitment, Dominion Energy is pursuing a diverse mix of cleaner, more efficient and lower-emitting methods of generating and delivering energy, while advancing measures to continue dramatically reducing emissions from traditional generation and delivery.
Clean Energy Diversity To achieve its net zero commitment, Dominion Energy is pursuing a diverse mix of cleaner, more efficient and lower-emitting methods of generating and delivering energy, while advancing measures to continue reducing emissions from traditional generation and delivery.
These projects are expected to cost a total of approximately $1.1 billion once constructed, including initial acquisition costs, and generate approximately 537 MW combined. In 2021, Virginia Power entered into and completed the acquisitions of various solar development projects in Virginia.
These projects are expected to cost a total of approximately $1.1 billion once constructed, including initial acquisition costs, and generate approximately 537 MW combined. In 2021, Virginia Power entered into and completed the acquisition of various solar development projects in Virginia.
Acquisition of Nonregulated Solar Projects In 2022, Dominion Energy entered into an agreement and completed the acquisition of a nonregulated solar project in Ohio. The project is expected to cost a total of $390 million once constructed, including the initial acquisition cost, and generate approximately 200 MW.
In 2022, Dominion Energy entered into an agreement and completed the acquisition of a nonregulated solar project in Ohio. The project is expected to cost a total of $390 million once constructed, including the initial acquisition cost, and generate approximately 200 MW.
However, competition from non-incumbent PJM transmission owners for development, construction and ownership of certain transmission facilities in Virginia Power’s service territory is permitted pursuant to Order 1000, subject to state and local siting and permitting approvals.
However, competition from non-incumbent PJM transmission owners for development, construction and 15 ownership of certain transmission facilities in Virginia Power’s service territory is permitted pursuant to Order 1000, subject to state and local siting and permitting approvals.
Electric Regulation in Virginia The Regulation Act provides for a cost-of-service rate model and permits Virginia Power to seek recovery of costs for new generation projects, including pumped hydroelectricity generation and storage facilities as well as extensions of operating licenses of nuclear 27 power generation facilities, FERC-approved transmission costs, underground distribution lines, certain environmental compliance, conservation, energy efficiency and demand response programs and renewable energy facilities and programs through stand-alone riders, and also contains statutory provisions directing Virginia Power to file annual fuel cost recovery cases with the Virginia Commission.
Electric Regulation in Virginia The Regulation Act provides for a cost-of-service rate model and permits Virginia Power to seek recovery of costs for new generation projects, including pumped hydroelectricity generation and storage facilities as well as extensions of operating licenses of nuclear power generation facilities, FERC-approved transmission costs, underground distribution lines, certain environmental compliance, conservation, energy efficiency and demand response programs and renewable energy facilities and programs through stand-alone riders, and also contains statutory provisions directing Virginia Power to file annual fuel cost recovery cases with the Virginia 25 Commission.
Dominion Energy’s Corporate GHG Inventory also includes emissions sources it voluntarily reports to various programs in which it participates. As a result, Dominion Energy’s reported methane emissions in its Corporate GHG Inventory are higher than what is reported to the EPA.
Dominion Energy’s Corporate GHG Inventory also includes emissions sources it voluntarily reports to various programs in which it participates. As a result, Dominion Energy’s reported GHG emissions in its Corporate GHG Inventory are higher than what is reported to the EPA.
There is no voluntary cost sharing mechanism for any total construction costs in excess of $13.7 billion, the recovery of which would be determined in a future Virginia Commission preceding.
There is no voluntary cost sharing mechanism 16 for any total construction costs in excess of $13.7 billion, the recovery of which would be determined in a future Virginia Commission preceding.
The rule defines the 30 scope of transmission and marketing-related functions that are covered by the standards and is designed to prevent transmission providers from giving their affiliates undue preferences.
The rule defines the scope of transmission and marketing-related functions that are covered by the standards and is designed to prevent transmission providers from giving their affiliates undue preferences.
The strategy to meet these objectives consists of three major elements which will significantly reduce GHG emissions: • Clean energy diversity; • Innovation and energy infrastructure modernization; and • Conservation and energy efficiency.
The strategy to meet these objectives consists of three major elements which will reduce GHG emissions: • Clean energy diversity; • Innovation and energy infrastructure modernization; and • Conservation and energy efficiency.
Additionally, there is some competition for Virginia Power’s generation operations for Virginia jurisdictional electric utility customers that meet certain size requirements or that currently are purchasing energy from competitive suppliers deemed to be 100% renewable by the Virginia Commission. See Electric under State Regulations in Regulation for more information. Currently, North Carolina does not offer retail choice to electric customers.
Additionally, there is some competition for Virginia Power’s generation operations for Virginia jurisdictional electric utility customers that meet certain size requirements or that currently are purchasing energy from competitive suppliers deemed to be 100% renewable by the Virginia Commission. See Electric under State Regulations in Regulation for additional information. Currently, North Carolina does not offer retail choice to electric customers.
Competition Contracted Asset’s renewable generation projects are not currently subject to significant competition as the output from these facilities is primarily sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. However, in the future, such operations may compete with other power generation facilities to serve certain large-scale customers after the power purchase agreements expire.
Competition Contracted Energy’s renewable generation projects are not currently subject to significant competition as the output from these facilities is primarily sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. However, in the future, such operations may compete with other power generation facilities to serve certain large-scale customers after the power purchase agreements expire.
Coal — DESC primarily obtains coal through short-term and long-term contracts with suppliers located in eastern Kentucky, Tennessee, Virginia and West Virginia that will expire at various times throughout 2023 and 2024. Spot market purchases may occur when needed or when prices are believed to be favorable. Nuclear — DESC primarily utilizes long-term contracts to support its nuclear fuel requirements.
Coal — DESC primarily obtains coal through short-term and long-term contracts with suppliers located in eastern Kentucky, Tennessee, Virginia and West Virginia that will expire at various times throughout 2024 and 2026. Spot market purchases may occur when needed or when prices are believed to be favorable. Nuclear — DESC primarily utilizes long-term contracts to support its nuclear fuel requirements.
Reported CO 2 equivalent emissions include CO 2 , CH 4 , N 2 O and SF 6 emissions from Dominion Energy’s electric generation operations, electric transmission and distribution operations and natural gas operations.
Reported CO 2 equivalent emissions include CO 2 , CH 4 , N 2 O and SF 6 emissions from Dominion Energy’s electric generation operations, electric transmission and distribution operations, natural gas operations and corporate operations.
However, Dominion Energy applies its expertise in operations, dispatch and risk management to maximize the degree to which Millstone is competitive compared to similar assets within the region. Regulation Contracted Assets’ generation fleet is subject to regulation by the NRC, the EPA, the DOE, the U.S. Army Corps of Engineers and other federal, state and local authorities.
However, Dominion Energy applies its expertise in operations, dispatch and risk management to maximize the degree to which Millstone is competitive compared to similar assets within the region. Regulation Contracted Energy’s generation fleet is subject to regulation by the NRC, EPA, DOE, U.S. Army Corps of Engineers and other federal, state and local authorities.
Dominion Energy manages the electric price volatility of Millstone by hedging a substantial portion of its expected near-term energy sales not subject to the Millstone 2019 power purchase agreements with derivative instruments. Dominion Energy’s nonregulated generation fleet includes solar generation facilities in operation or development in nine states, including Virginia.
Dominion Energy manages the electric price volatility of Millstone by hedging a substantial portion of its expected near-term energy sales not subject to the Millstone 2019 power purchase agreements with derivative instruments. Dominion Energy’s nonregulated generation fleet includes solar generation facilities in operation or development in five states, including Virginia.
(2) Virginia Power did not make any contributions to its nuclear decommissioning trust funds during 2022. (3) North Anna is jointly owned by Virginia Power (88.4%) and ODEC (11.6%). However, Virginia Power is responsible for 89.26% of the decommissioning obligation. Amounts reflect 89.26% of the decommissioning cost for both of North Anna’s units.
(2) Virginia Power did not make any contributions to its nuclear decommissioning trust funds during 2023. (3) North Anna is jointly owned by Virginia Power (88.4%) and ODEC (11.6%). However, Virginia Power is responsible for 89.26% of the decommissioning obligation. Amounts reflect 89.26% of the decommissioning cost for both of North Anna’s units.
(2) Includes solar. Natural gas — DESC purchases natural gas under contracts with producers and marketers on both a short-term and long-term basis at market-based prices. The gas is delivered to DESC through firm transportation agreements with various counterparties, which expire between 2023 and 2084.
(2) Includes solar. Natural gas — DESC purchases natural gas under contracts with producers and marketers on both a short-term and long-term basis at market-based prices. The gas is delivered to DESC through firm transportation agreements with various counterparties, which expire between 2024 and 2084.
The project is vital for Virginia Power to meet the renewable energy portfolio standard established in the VCEA and is consistent with the criteria within the VCEA for the construction of an offshore wind facility deemed to be in the public interest as well as the guidelines facilitating cost recovery.
The CVOW Commercial Project is vital for Virginia Power to meet the renewable energy portfolio standard established in the VCEA and is consistent with the criteria within the VCEA for the construction of an offshore wind facility deemed to be in the public interest as well as the guidelines facilitating cost recovery.
As part of this strategy, Dominion Energy has retired, or committed to retire, several of its fossil fuel electric generating facilities, including those powered by coal, oil and gas with the replacement of this capacity coming from the development of renewable energy facilities.
As part of this strategy, Dominion Energy has retired, or committed to retire, several of its fossil fuel electric generating facilities, including those powered by coal, oil and gas with the replacement of this capacity coming from the development of increasingly clean and renewable energy facilities.
SAIDI performance results, excluding major events, were 82 minutes for the three-year average ending 2022, consistent with the previous three-year average of 82 minutes. Revenue provided by DESC’s natural gas distribution operations primarily results from rates established by the South Carolina Commission.
SAIDI performance results, excluding major events, were 82 minutes for the three-year average ending 2023, consistent with the previous three-year average of 82 minutes. Revenue provided by DESC’s natural gas distribution operations primarily results from rates established by the South Carolina Commission.
The program is designed to reduce restoration outage time by moving Virginia Power’s most outage-prone overhead distribution lines underground, has an annual investment cap of approximately $175 million and is expected to be completed by 2029.
The program is designed to reduce restoration outage time by moving Virginia Power’s most outage-prone overhead distribution lines underground, has an annual investment cap of approximately $242 million and is expected to be completed by 2029.
To meet its customers’ needs for safe, reliable, and affordable energy and to reach net zero emissions, in the near term Dominion Energy is seeking extension of the licenses of its zero-carbon nuclear fleet at North Anna similar to the license extension received for Surry, rapidly expanding wind and solar generation as well as energy storage, investing in carbon-beneficial renewable natural gas, expanding its industry-leading methane emissions-reduction programs including pursuing innovative uses of clean burning hydrogen and using low-carbon natural gas to support the integration of wind and solar generation facilities as well as energy storage facilities into the grid and requesting offers for responsibly sourced gas or from those suppliers who are committed to net zero.
To meet its customers’ needs for reliable, affordable and increasingly clean energy every day and to reach net zero emissions, in the near term Dominion Energy is seeking extension of the licenses of its zero-carbon nuclear fleet at North Anna similar to the license extension received for Surry, expanding wind and solar generation as well as energy storage, investing in carbon-beneficial renewable natural gas, expanding its industry-leading methane emissions-reduction programs including pursuing innovative uses of clean burning hydrogen and using low-carbon natural gas to support the integration of wind and solar generation facilities as well as energy storage facilities into the grid and requesting offers for responsibly sourced gas or from those suppliers who are committed to net zero.
In July 2020, as a result of the continued permitting delays, growing legal uncertainties and the need to incur significant capital expenditures to maintain project timing before such uncertainties could be resolved, Dominion Energy and Duke Energy announced the cancellation of the Atlantic Coast Pipeline Project. See Note 9 to the Consolidated Financial Statements for additional information.
In July 2020, as a result of the continued permitting delays, growing legal uncertainties and the need to incur significant capital expenditures to maintain project timing before such uncertainties could be resolved, Dominion Energy and Duke Energy announced the cancellation of the Atlantic Coast Pipeline Project. See Notes 3 and 9 to the Consolidated Financial Statements for additional information.
(2) Dominion Energy did not make any contributions to its nuclear decommissioning trust funds related to Millstone during 2022. (3) Unit 1 permanently ceased operations in 1998, before Dominion Energy’s acquisition of Millstone.
(2) Dominion Energy did not make any contributions to its nuclear decommissioning trust funds related to Millstone during 2023. (3) Unit 1 permanently ceased operations in 1998, before Dominion Energy’s acquisition of Millstone.
MD&A for more information on this project. • Virginia Power is considering the construction of a hydroelectric pumped storage facility in Southwest Virginia. • Virginia Power is considering the construction of simple cycle combustion turbines in Virginia for reliability purposes.
MD&A for additional information on this project. • Virginia Power is considering the construction of a hydroelectric pumped storage facility in Southwest Virginia. • Virginia Power is considering the construction of simple cycle combustion turbines in Virginia for reliability purposes.
Over the long term, Dominion Energy’s ability to meet its customers’ needs for safe, reliable and affordable energy and achieve net zero emissions will require supportive legislative and regulatory policies, advancements in technology and broader investments across the economy.
Over the long term, Dominion Energy’s ability to meet its customers’ needs for reliable, affordable and increasingly clean energy and achieve net zero emissions will require supportive legislative and regulatory policies, advancements in technology and broader investments across the economy.
The estimated decommissioning costs, funds in trust and current license expiration dates for Summer are shown in the following table: NRC license expiration year Most recent cost estimate (2022 dollars) (1) Funds in trusts at December 31, 2022 (2) (dollars in millions) Summer – Unit 1 2042 $ 788 $ 221 (1) The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on DESC’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in DESC’s nuclear decommissioning AROs and includes the expectation that a 20-year license extension is obtained.
The estimated decommissioning costs, funds in trust and current license expiration dates for Summer are shown in the following table: NRC license expiration year Most recent cost estimate (2023 dollars) (1) Funds in trusts at December 31, 2023 (2) (dollars in millions) Summer – Unit 1 2042 $ 808 $ 247 (1) The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on DESC’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in DESC’s nuclear decommissioning AROs and includes the expectation that a 20-year license extension is obtained.
As of December 31, 2022, Virginia Power had projects under various stages of development which represented a potential storage capacity of approximately 1.2 GW. Preservation of Dominion Energy’s existing carbon-free baseload nuclear generation is also an important component of Dominion Energy’s GHG emissions reduction strategy.
As of December 31, 2023, Virginia Power had energy storage projects under various stages of development which represented a potential storage capacity of approximately 1.1 GW. Preservation of Dominion Energy’s existing carbon-free baseload nuclear generation is also an important component of Dominion Energy’s GHG emissions reduction strategy.
In its annual Corporate GHG Inventory, Dominion Energy voluntarily includes carbon and methane emission estimates 35 from smaller sources that are not required to be included under the EPA’s mandatory GHG Reporting Program, including smaller electric generation, natural gas compressor stations and other sources.
In its annual Corporate GHG Inventory, Dominion Energy voluntarily includes greenhouse gas emission estimates from smaller sources that are not required to be included under the EPA’s mandatory GHG Reporting Program, including smaller electric generation, natural gas compressor stations and other sources.
Safety is the highest priority of Dominion Energy’s five core values with the fundamental goal to send every employee home safe and sound every day. In 2022, Dominion Energy experienced an OSHA Recordable Rate of 0.52 compared to 0.46 in 2021 and 0.41 in 2020.
Safety is the highest priority of Dominion Energy’s five core values with the fundamental goal to send every employee home safe and sound every day. In 2023, Dominion Energy experienced an OSHA Recordable Rate of 0.45 compared to 0.52 in 2022 and 0.46 in 2021.
This includes investing in and building upon previously proven technology, including large-scale battery storage, hydrogen, advanced nuclear technology and carbon capture technology.
This includes investing in and building upon previously proven technology, including large-scale battery storage, hydrogen and advanced nuclear technology.
Virginia Power’s estimate for the 2.6 GW project’s projected levelized cost of energy is approximately $80-90/MWh. Following a competitive procurement process, Virginia Power has entered into fixed price contracts for the major offshore construction and equipment components.
Virginia Power’s estimate for the 2.6 GW project’s projected levelized cost of energy is approximately $75-85/MWh. Following a competitive procurement process, Virginia Power has entered into fixed price contracts for the major offshore construction and equipment components.
While daily operations are managed through the operating segments previously discussed, assets remain wholly-owned by the Companies and their respective legal subsidiaries. 14 DOMINION ENERGY VIRGINIA Dominion Energy Virginia is substantially composed of Virginia Power’s regulated electric transmission, distribution (including customer service) and generation (regulated electric utility and its related energy supply) operations, which serve approximately 2.7 million residential, commercial, industrial and governmental customers in Virginia and North Carolina.
While daily operations are managed through the operating segments previously discussed, assets remain wholly-owned by the Companies and their respective legal subsidiaries. 14 DOMINION ENERGY VIRGINIA Dominion Energy Virginia is composed of Virginia Power’s regulated electric transmission, distribution and generation (regulated electric utility and its related energy supply) operations, which serve approximately 2.8 million residential, commercial, industrial and governmental customers in Virginia and North Carolina.
In the triennial review proceedings, earnings that are more than 70 basis points above the utility’s authorized ROE that might have been refunded to customers and served as the basis for a reduction in future rates, may be reduced by Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects that Virginia Power elects to include as a CCRO.
In the triennial review proceedings, earnings that were more than 70 basis points above the utility’s authorized ROE that might have been refunded to customers and served as the basis for a reduction in future rates, could be reduced by Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects that Virginia Power elected to include in a CCRO.
Furthermore, Dominion Energy has been proactive in protecting its workforce during the global COVID-19 pandemic by establishing safety protocols and adapting its approach as the pandemic has evolved. Dominion Energy also facilitated telecommuting and hybrid work options for many employees and expanded paid time off and other benefits to help employees cope with disruptions caused by the pandemic.
In addition, Dominion Energy was proactive in protecting its workforce during the global COVID-19 pandemic by establishing safety protocols and adapting its approach as the pandemic evolved. Dominion Energy also facilitated telecommuting and hybrid work options for many employees and expanded paid time off and other benefits to help employees cope with disruptions caused by the pandemic.
The Virginia Commission has approved portions of this plan through 2023. Revenue provided by electric distribution and generation operations is based primarily on rates established by the Virginia and North Carolina Commissions. Approximately 81% of revenue comes from serving Virginia jurisdictional customers.
The Virginia Commission has approved portions of this plan through 2026. Revenue provided by electric distribution and generation operations is based primarily on rates established by the Virginia and North Carolina Commissions. Approximately 79% of revenue comes from serving Virginia jurisdictional customers.
The cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating license expires. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments. DESC expects to apply for an operating license renewal for Summer.
The cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating license expires. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments.
These rates reflect Dominion Energy’s dedication to safety when compared to a 2021 BLS Industry Average OSHA Recordable Rate of 1.7 and a 2020 BLS Industry Average OSHA Recordable Rate of 1.5. As evidence of Dominion Energy’s commitment to safety, annual incentive plans for all employees, except as restricted by any collective bargaining agreements, include a safety performance measure.
These rates reflect Dominion Energy’s dedication to safety when compared to a BLS Industry Average OSHA Recordable Rate of 1.7 in both 2022 and 2021. As evidence of Dominion Energy’s commitment to safety, annual incentive plans for all employees, except as restricted by any collective bargaining agreements, include a safety performance measure.
Regulation Virginia Power’s electric distribution and generation operations, including the rates it may charge to jurisdictional customers, as well as wholesale electric transmission rates, tariffs and terms of service, are subject to regulation by the Virginia and North Carolina Commissions as well as FERC, the NRC, the EPA, the DOE and the U.S. Army Corps of Engineers.
Regulation Virginia Power’s electric distribution and generation operations, including the rates it may charge to jurisdictional customers, as well as wholesale electric transmission rates, tariffs and terms of service, are subject to regulation by the Virginia and North Carolina Commissions as well as FERC, NRC, EPA, DOE, U.S. Army Corps of Engineers and other federal, state and local authorities.
Presented below is a summary of Virginia Power’s actual system output by energy source: Source 2022 2021 2020 Natural gas 36 % 40 % 48 % Nuclear (1) 28 29 32 Purchased power, net 23 17 7 Coal (2) 8 9 9 Renewable and Hydro (3) 5 5 4 Total 100 % 100 % 100 % (1) Excludes ODEC’s 11.6% undivided ownership interest in North Anna.
Presented below is a summary of Virginia Power’s actual system output by energy source: Source 2023 2022 2021 Natural gas 36 % 36 % 40 % Nuclear (1) 29 28 29 Purchased power, net 25 23 17 Coal (2) 5 8 9 Renewable and Hydro (3) 5 5 5 Total 100 % 100 % 100 % (1) Excludes ODEC’s 11.6% undivided ownership interest in North Anna.
SAIDI performance results, excluding major events, were 136 minutes for the three-year average ending 2022, down from the previous three-year average of 141 minutes. This decrease is primarily due to decreased storm activity.
SAIDI performance results, excluding major events, were 130 minutes for the three-year average ending 2023, down from the previous three-year average of 136 minutes. This decrease is primarily due to decreased storm activity.
The replacement facilities are expected to be placed in service by the end of 2025 at an estimated cost of approximately $310 million, excluding financing costs, and have a total winter generating capacity of approximately 171 MW. To maintain reliability, DESC expects to commence development in 2023 of a wastewater treatment facility at its Williams facility.
The replacement facilities are expected to be placed in service by the end of 20 2025 at an estimated cost of approximately $340 million, excluding financing costs, and have a total winter generating capacity of approximately 171 MW. To maintain reliability, DESC commenced development in 2023 of a wastewater treatment facility at its Williams facility.
Presented below is a summary of DESC’s actual system output by energy source: Source 2022 2021 2020 Natural gas 48 % 49 % 47 % Nuclear (1) 23 20 20 Coal 18 20 22 Renewable and Hydro (2) 11 11 11 Total 100 % 100 % 100 % (1) Excludes Santee Cooper’s 33.3% undivided ownership interest in Summer.
Presented below is a summary of DESC’s actual system output by energy source: Source 2023 2022 2021 Natural gas 50 % 48 % 49 % Nuclear (1) 21 23 20 Coal 18 18 20 Renewable and Hydro (2) 11 11 11 Total 100 % 100 % 100 % (1) Excludes Santee Cooper’s 33.3% undivided ownership interest in Summer.
As a result, any significant disparity between supply and demand, either of natural gas or of alternate fuels, and due either to production or delivery disruptions or other factors, will affect price and the ability to retain large commercial and industrial customers.
Natural gas competes with these alternate fuels based on price. As a result, any significant disparity between supply and demand, either of natural gas or of alternate fuels, and due either to production or delivery disruptions or other factors, will affect price and the ability to retain large commercial and industrial customers.
Dominion Energy includes emissions data in its Corporate GHG Inventory based on its ownership percentage of the associated assets and for the period in which the operations are owned by Dominion Energy. Total direct Scope 1 CO 2 equivalent emissions reported under Dominion Energy’s Corporate GHG Inventory were 34.9 million metric tons in 2021.
Dominion Energy includes emissions data in its Corporate GHG Inventory based on its ownership percentage of the associated assets and for the period in which the operations are owned by Dominion Energy. Total direct Scope 1 CO 2 equivalent emissions reported under Dominion Energy’s Corporate GHG Inventory were 33.3 million metric tons in 2022.
Dominion Energy currently expects approximately 90% of earnings from its primary operating segments to come from state-regulated electric and natural gas utility businesses. Dominion Energy’s nonregulated operations consist primarily of long-term contracted electric generation operations and its investment in Cove Point. Dominion Energy’s operations are conducted through various subsidiaries, including DESC and Virginia Power.
Dominion Energy currently expects approximately 90% of earnings from its primary operating segments to come from state-regulated primarily electric utility businesses. Dominion Energy’s nonregulated operations consist primarily of long-term contracted electric generation operations. Dominion Energy’s operations are conducted through various subsidiaries, including DESC and Virginia Power.
The fuel assemblies to be delivered under the contracts are expected to supply the nuclear fuel requirements through 2033. 23 In addition, DESC has contracts covering its nuclear fuel needs for uranium, conversion services and enrichment services. These contracts have varying expiration dates through 2024.
The fuel assemblies to be delivered under the contracts are expected to supply the nuclear fuel requirements through 2036. In addition, DESC has contracts covering its nuclear fuel needs for uranium, conversion services and enrichment services. These contracts have varying expiration dates through 2032.
In any triennial review in which the Virginia Commission determines that the utility’s earnings are more than 70 basis points above its authorized ROE, base rates are subject to reduction prospectively and customer refunds would be due unless the total CCRO elected by the utility equals or exceeds the amount of earnings in excess of the 70 basis points.
In any triennial review in which the Virginia Commission determined that the utility’s earnings are more than 70 basis points above its authorized ROE, base rates were subject to reduction prospectively and customer refunds would be due unless the total CCRO elected by the utility equaled or exceeded the amount of earnings in excess of the 70 basis points.
Any costs that are the subject of a CCRO are deemed recovered in base rates during the triennial period under review and may not be included in base rates in future triennial review proceedings.
Any costs that were the subject of a CCRO were deemed recovered in base rates during the triennial period under review and could not be included in base rates in future triennial review proceedings.
Dominion Energy has made voluntary commitments as part of the EPA’s Natural Gas STAR Methane Challenge Program to continue to reduce methane emissions as part of these improvements. Dominion Energy is also a member of the EPA’s voluntary Natural Gas STAR Program.
Dominion Energy has made voluntary commitments as part of the EPA’s Natural Gas STAR Methane Challenge Program to continue to reduce methane emissions as part of these improvements.
Pending the results of the business review, Dominion Energy continues to focus on expanding and improving its regulated and long-term contracted electric and natural gas utility businesses while transitioning to a cleaner energy future.
Pending the final results of the business review, Dominion Energy continues to focus on expanding and improving its regulated electric utilities and long-term contracted businesses while transitioning to a cleaner energy future.
We also make available on the “Investors” page of our website additional information which may be important to investors, such as investor presentations, earnings release kits and other materials and presentations.
The Companies also make available on the “Investors” page of Dominion Energy’s website additional information which may be important to investors, such as investor presentations, earnings release kits and other materials and presentations.
In 2022, 2021 and 2020, the percentage of new hires that are diverse was 48.9%, 57.5% and 50.7%, respectively. Dominion Energy sponsors eight employee 13 resource groups to support and reinforce its culture of inclusiveness by enabling employees with shared interests and backgrounds to work together to create community, provide networking opportunities and encourage professional development.
In 2023, 2022 and 2021, the percentage of new hires that are diverse was 49.0%, 48.9% and 57.5%, respectively. Dominion Energy sponsors nine employee resource groups to support and reinforce its culture of inclusiveness by enabling employees with shared interests and backgrounds to work together to create community, provide networking opportunities and encourage professional development.
The VCEA includes related requirements concerning deployment of wind, solar and energy storage resources, as well as provides for certain measures to increase net-metering, including an allocation for low-income customers, incentivizes energy efficiency programs and provides for cost recovery related to participation in a carbon trading program. See Note 13 to the Consolidated Financial Statements for additional information.
The VCEA includes related requirements concerning deployment of wind, solar and energy storage resources, as well as provides for certain measures to increase net-metering, including an allocation for low-income customers, incentivizes energy efficiency programs and provides for cost recovery related to participation in a carbon trading program.
The SERC is one of seven regional entities with delegated authority from NERC for the purpose of proposing and enforcing reliability standards approved by NERC. In addition, DESC also participates in the SEEM platform, which became operational in November 2022.
The SERC is one of seven regional entities with delegated authority from NERC for the purpose of proposing and enforcing reliability standards approved by NERC. In addition, DESC also participates in the SEEM platform, which became operational in November 2022. See Federal Regulations in Regulation for additional information on SEEM.
That transmission service, in turn, will be voluntarily provided by participating transmission service providers, including DESC. In October 2021, the Southeast Energy Exchange Market Agreement became effective by operation of law as a result of a split FERC vote. The SEEM platform became operational in November 2022.
That transmission service, in turn, will be voluntarily provided by participating transmission service providers, including DESC. In October 2021, the Southeast Energy Exchange Market Agreement became effective by operation of law as a result of a split FERC vote. The SEEM platform became operational in November 2022. Certain parties appealed FERC's authorization of SEEM to the U.S.
Corporate GHG Inventory Dominion Energy maintains a comprehensive Corporate GHG Inventory, which follows methodologies specified in the EPA’s Mandatory GHG Reporting Rule, 40 Code of Federal Regulations Part 98 for calculating emissions, as well as approved industry protocols.
Dominion Energy’s 2023 emissions data is not yet available. Corporate GHG Inventory Dominion Energy maintains a comprehensive Corporate GHG Inventory, which follows methodologies specified in the EPA’s Mandatory GHG Reporting Rule, 40 Code of Federal Regulations Part 98 for calculating emissions, as well as approved industry protocols.
Dominion Energy’s strategy is to be a leading sustainable provider of electricity, natural gas and related services to customers primarily in the eastern and Rocky Mountain regions of the U.S.
Dominion Energy’s strategy is to be a leading provider of electricity, natural gas and related services to customers primarily in the eastern region of the U.S.
Dominion Energy owns a 50% noncontrolling interest in Dominion Privatization, a partnership with Patriot, which will maintain and operate electric and gas distribution infrastructure under service concession arrangements with certain U.S. military installations in Pennsylvania, South Carolina, Texas and Virginia. Dominion Energy owns a 53% noncontrolling interest in Atlantic Coast Pipeline.
Dominion Energy owns a 50% noncontrolling interest in Dominion Privatization, a partnership with Patriot, which maintains and operates electric and gas distribution infrastructure under service concession arrangements with certain U.S. military installations in Pennsylvania, South Carolina, Texas, Washington D.C. and Virginia. Dominion Energy owns a 53% noncontrolling interest in Atlantic Coast Pipeline.
Through 2021, Dominion Energy has reduced carbon emissions from electric generation by 46% since 2005 and reduced methane emissions from its natural gas infrastructure operations by 38% since 2010.
Through 2022, Dominion Energy has reduced direct carbon emissions from electric generation by 47% since 2005 and reduced methane emissions from its natural gas infrastructure operations by 38% since 2010.
It also reports a Corporate and Other segment that primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
Virginia Power manages its daily operations through its primary operating segment: Dominion Energy Virginia. It also reports a Corporate and Other segment that primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.
ENVIRONMENTAL PROTECTION AND MONITORING EXPENDITURES Dominion Energy incurred $251 million, $221 million and $238 million of expenses (including accretion and depreciation) during 2022, 2021 and 2020 respectively, in connection with environmental protection and monitoring activities. Dominion Energy expects these expenses to be approximately $254 million and $235 million in 2023 and 2024, respectively.
ENVIRONMENTAL PROTECTION AND MONITORING EXPENDITURES Dominion Energy incurred $269 million, $251 million and $221 million of expenses (including accretion and depreciation) during 2023, 2022 and 2021 respectively, in connection with environmental protection and monitoring activities. Dominion Energy expects these expenses to be approximately $265 million and $260 million in 2024 and 2025, respectively.
DOMINION ENERGY SOUTH CAROLINA Dominion Energy South Carolina is comprised of DESC’s generation, transmission and distribution of electricity to approximately 782,000 customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to approximately 435,000 residential, commercial and industrial customers in South Carolina.
DOMINION ENERGY SOUTH CAROLINA Dominion Energy South Carolina is comprised of DESC’s generation, transmission and distribution of electricity to approximately 0.8 million customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to approximately 0.4 million residential, commercial and industrial customers in South Carolina.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeConsumer demand for our services may also be impacted by any price increases, including those driven by factors beyond our control such as inflation or increased prices in natural gas. Further, Virginia Power’s business model is premised upon the cost efficiency of the production, transmission and distribution of large-scale centralized utility generation.
Biggest changeLikewise, certain regulatory and legislative bodies have introduced or are considering actions which could limit the use or installation of new natural gas appliances. Consumer demand for the Companies’ services may also be impacted by any price increases, including those driven by factors beyond the Companies’ control such as inflation or increased prices in natural gas.
Furthermore, the Companies’ operations could be adversely affected and their physical plant placed at greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, for operations located on or near coastlines, a change in sea level or sea temperatures.
Furthermore, the Companies’ operations could be adversely affected and their physical plant placed at 40 greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, resulting in more intense, frequent and extreme weather events, abnormal levels of precipitation and, for operations located on or near coastlines, a change in sea level or sea temperatures.
A successful cyber attack through third-party or insider action on the systems that control the Companies’ electric generation, electric transmission or distribution assets could severely disrupt business operations, preventing the Companies from serving customers or collecting revenues. The breach of certain business systems could affect the Companies’ ability to correctly record, process and report financial information.
A successful cyber attack through third-party or insider action on the systems that control the Companies’ electric generation, electric transmission, electric distribution or gas distribution assets could severely disrupt business operations, preventing the Companies from serving customers or collecting revenues. The breach of certain business systems could affect the Companies’ ability to correctly record, process and report financial information.
If the Companies are unable to complete the development and construction of the CVOW Commercial Project or decide in the future to delay or cancel the project, the Companies may not be able to recover all or a portion of their investment in the project and may incur substantial cancellation payments under existing contracts or other substantial costs associated with any such delay or cancellation.
If the Companies are unable to complete the development and construction of the CVOW Commercial Project or decide in the future to delay or cancel the project, the Companies may not be able to recover all or a portion of their investment in the project and may 38 incur substantial cancellation payments under existing contracts or other substantial costs associated with any such delay or cancellation.
For example, in September 2021, FERC issued a final order that allows distributed energy resource aggregators to compete in regional wholesale 38 electric markets. This rule followed a previous order which mandated that distributed energy resources be allowed to participate in wholesale markets. RTOs, including PJM, are responsible for issuing implementation rules to FERC for approval.
For example, in September 2021, FERC issued a final order that allows distributed energy resource aggregators to compete in regional wholesale electric markets. This rule followed a previous order which mandated that distributed energy resources be allowed to participate in wholesale markets. RTOs, including PJM, are responsible for issuing implementation rules to FERC for approval.
Accordingly, actual costs incurred may differ materially from insured or reserved amounts and may not be recoverable, in whole or in part, by insurance or in rates from our customers. The outcome of these or future legal proceedings, investigations and examinations, including settlements, may adversely affect the Companies’ financial condition or results of operation.
Accordingly, actual costs incurred may differ materially from insured or reserved amounts and may not be recoverable, in whole or in part, by insurance or in rates from customers. The outcome of these or future legal proceedings, investigations and examinations, including settlements, may adversely affect the Companies’ financial condition or results of operation.
To achieve Dominion Energy’s commitment to net zero emissions by 2050 and comply with the requirements of the VCEA, the Companies are currently simultaneously developing or constructing several electric generation projects, including subsequent license renewal projects at Surry and North Anna, the CVOW Commercial Project and various solar projects.
To achieve Dominion Energy’s commitment to net zero emissions by 2050 and comply with the requirements of the VCEA, the Companies are currently simultaneously developing or constructing several electric generation projects, including subsequent license renewal projects at Surry and North Anna, the CVOW Commercial Project, several electric transmission projects and various solar projects.
Given the unique equipment and expertise required for this project, the Companies may not be able to remedy in a timely and cost-effective manner, if at all, any 41 failure by one or more of these suppliers or contractors to timely satisfy their contractual obligations.
Given the unique equipment and expertise required for this project, the Companies may not be able to remedy in a timely and cost-effective manner, if at all, any failure by one or more of these suppliers or contractors to timely satisfy their contractual obligations.
In addition, while the Atlantic Coast Pipeline Project was cancelled in July 2020 and several of the legal proceedings and governmental investigations relating to the abandonment of the NND Project have been resolved, there is a risk that lingering negative publicity may continue.
In addition, while the Atlantic Coast Pipeline Project was cancelled in July 2020 and the legal proceedings and governmental investigations relating to the abandonment of the NND Project have been resolved, there is a risk that lingering negative publicity may continue.
The failure of Dominion Energy to maintain, renew or replace its existing long-term contracts on similar terms or with counterparties with similar credit profiles could result in a loss of revenue and/or decreased earnings and cash flows for Dominion Energy.
The failure of Dominion Energy to maintain, 42 renew or replace its existing long-term contracts on similar terms or with counterparties with similar credit profiles could result in a loss of revenue and/or decreased earnings and cash flows for Dominion Energy.
Certain of Dominion 44 Energy’s operations are conducted through entities subject to partnership arrangements under which Dominion Energy has significant influence but does not control the operations of such entities or in which Dominion Energy’s control over such entities may be subject to certain rights of third-party investors.
Certain of Dominion Energy’s operations are conducted through entities subject to partnership arrangements under which Dominion Energy has significant influence but does not control the operations of such entities or in which Dominion Energy’s control over such entities may be subject to certain rights of third-party investors.
Dominion Energy has spent substantial amounts of time and money defending these lawsuits and proceedings and on related investigations. In addition, juries have demonstrated a willingness to grant large awards in certain cases, including personal injury claims.
Dominion Energy spent substantial amounts of time and money defending these lawsuits and proceedings and on related investigations. In addition, juries have demonstrated a willingness to grant large awards in certain cases, including personal injury claims.
In addition, changes to the interpretation and application of FERC’s market manipulation rules may occur from time to time. A failure to comply with these market manipulation rules could lead to civil and criminal penalties.
In addition, 36 changes to the interpretation and application of FERC’s market manipulation rules may occur from time to time. A failure to comply with these market manipulation rules could lead to civil and criminal penalties.
We expect that existing environmental laws and regulations may be revised and/or new laws may be adopted including regulation of GHG emissions which could have an impact on the Companies’ business (risks relating to regulation of GHG emissions from existing fossil fuel-fired electric generating units are discussed in more detail above and below).
The Companies expect that existing environmental laws and regulations may be revised and/or new laws may be adopted including regulation of GHG emissions which could have an impact on the Companies’ business (risks relating to regulation of GHG emissions from existing fossil fuel-fired electric generating units are discussed in more detail above and below).
Such laws and regulations govern the terms and conditions of the services we offer, our relationships with affiliates, protection of our critical electric infrastructure assets and pipeline safety, among other matters. The Companies are also subject to legislation and associated regulation governing taxation at the federal, state and local level. They must also comply with environmental legislation and associated regulations.
Such laws and regulations govern the terms and conditions of the services the Companies offer, relationships with affiliates, protection of critical electric infrastructure assets and pipeline safety, among other matters. The Companies are also subject to legislation and associated regulation governing taxation at the federal, state and local level. They must also comply with environmental legislation and associated regulations.
The VCEA and related legislation also authorizes Virginia to participate in a program consistent with RGGI, requiring the purchase of carbon credits to offset emissions from Virginia Power’s generating fleet within the state. In January 2022, the Governor of Virginia issued an executive order which puts directives in place to start the withdrawal of Virginia from RGGI.
The VCEA and related legislation also authorizes Virginia to participate in a program consistent with RGGI, requiring the purchase of carbon credits to offset emissions from Virginia Power’s generating fleet within the state. In January 2022, the Governor of Virginia issued an executive order which put directives in place to start the withdrawal of Virginia from RGGI.
Reduced energy demand or significantly slowed growth in demand due to customer adoption of energy efficient technology, conservation, distributed generation, regional economic conditions, or the impact of additional compliance obligations, unless substantially offset through regulatory cost allocations, could adversely impact the value of the Companies’ business activities.
Alternatively, reduced energy demand or significantly slowed growth in demand due to customer adoption of energy efficient technology, conservation, distributed generation, regional economic 41 conditions, or the impact of additional compliance obligations, unless substantially offset through regulatory cost allocations, could adversely impact the value of the Companies’ business activities.
Construction Risks The Companies’ infrastructure build and expansion plans often require regulatory approval, including environmental permits, before commencing construction and completing projects.
The Companies’ infrastructure build and expansion plans often require regulatory approval, including environmental permits, before commencing construction and completing projects.
The Companies’ inability to attract and retain these employees could adversely affect their business and future operating results. 45 Nuclear Generation Risks The Companies have substantial ownership interests in and operate nuclear generating units; as a result, each may incur substantial costs and liabilities.
The Companies’ inability to attract and retain these employees could adversely affect their business and future operating results. 43 Nuclear Generation Risks The Companies have substantial ownership interests in and operate nuclear generating units; as a result, each may incur substantial costs and liabilities.
Start-up and operational issues can arise in connection with the commencement of commercial operations at our facilities. Such issues may include failure to meet specific operating parameters, which may require adjustments to meet or amend these operating parameters.
Start-up and operational issues can arise in connection with the commencement of commercial operations at the Companies’ facilities. Such issues may include failure to meet specific operating parameters, which may require adjustments to meet or amend these operating parameters.
The development and construction of the CVOW Commercial Project is dependent on the Companies’ ability to obtain and maintain various local, state and federal permits and other regulatory approvals, including Virginia Commission approval for rider recovery of project costs.
The development and construction of the CVOW Commercial Project is dependent on the Companies’ ability to obtain and maintain various local, state and federal permits, rights of way and other regulatory approvals, including Virginia Commission approval for rider recovery of project costs.
These 39 efforts will require approvals from various regulatory bodies for the siting and construction of such new facilities and a determination by the applicable state commissions that costs related to the construction are prudent.
These efforts will require approvals from various regulatory bodies for the siting and construction of such new facilities and a determination 37 by the applicable state commissions that costs related to the construction are prudent.
The development and construction of the CVOW Commercial Project involves the use of new turbine technology and will take place in a marine environment, which presents unique challenges and will require the use of a specialized workforce and specialized equipment.
The development and construction of the CVOW Commercial Project involves the use of evolving turbine technology and will take place in a marine environment, which presents unique challenges and will require the use of a specialized workforce and specialized equipment.
The Companies may from time to time be subject to various legal proceedings and governmental investigations and examinations. For example, Dominion Energy, following the SCANA Combination, has been subject to numerous federal and state legal proceedings and governmental investigations relating to the decision of SCANA and DESC to abandon construction at the NND Project.
The Companies may from time to time be subject to various legal proceedings and governmental investigations and examinations. For example, Dominion Energy, following the SCANA Combination, was subject to numerous federal and state legal proceedings and governmental investigations relating to the decision of SCANA and DESC to abandon construction at the NND Project.
Due to the location of the Companies’ electric utility service territories and a number of its other facilities in the eastern portions of the states of South Carolina, North Carolina and 42 Virginia which are frequently in the path of hurricanes, we experience the consequences of these weather events to a greater degree than many of our industry peers.
Due to the location of the Companies’ electric utility service territories and a number of its other facilities in the eastern portions of the states of South Carolina, North Carolina and Virginia which are frequently in the path of hurricanes, the Companies experience the consequences of these weather events to a greater degree than many industry peers.
Recent legislative and regulatory changes that are impacting the Companies include the IRA, the VCEA, the 2017 Tax Reform Act and tariffs imposed on imported solar panels by the U.S. government in 2018. The Companies have been and may continue to be or become subject to legal proceedings and governmental investigations and examinations.
Recent legislative and regulatory changes that are impacting the Companies include legislation enacted in Virginia in April 2023, the IRA, the VCEA, the 2017 Tax Reform Act and tariffs imposed on imported solar panels by the U.S. government in 2018. The Companies have been and may continue to be or become subject to legal proceedings and governmental investigations and examinations.
Projects may not be able to be completed on time or in accordance with our estimated costs as a result of weather conditions, delays in obtaining or failure to obtain regulatory and other, including PJM, approvals, delays in obtaining key materials, labor difficulties, difficulties with partners or potential partners, concerns raised during stakeholder engagement, a decline in the credit strength of counterparties or vendors, inflation, or other factors beyond the Companies’ control.
Projects may not be able to be completed on time or in accordance with estimated costs as a result of weather conditions, need for new land and right of ways, delays in obtaining or failure to obtain regulatory and other, including PJM, approvals, delays in obtaining key materials, labor difficulties, difficulties with partners or potential partners, concerns raised during stakeholder engagement, a decline in the credit strength of counterparties or vendors, inflation, or other factors beyond the Companies’ control.
Virginia Power makes assessments throughout the review period and will record a regulatory liability for refunds and/or CCRO benefits to customers in any period it is determined probable, which could be material to the Companies’ results of operations in the period recognized and to cash flows on completion of any triennial review.
Virginia Power makes assessments throughout the review period and will record a regulatory liability for refunds to customers in any period it is determined probable, which could be material to the Companies’ results of operations in the period recognized and to cash flows on completion of any biennial review.
Cost recovery for these initiatives will require approval by the Virginia Commission which may be denied or materially altered to the detriment of the Companies.
In December 2023, the withdrawal took effect. Cost recovery for these initiatives will require approval by the Virginia Commission which may be denied or materially altered to the detriment of the Companies.
Market disruptions could stem from general market disruption due to general credit market or political events, the planned phase out of LIBOR by the end of 2023 or the reform or replacement of other benchmark rates, the failure of financial institutions on which the Companies rely or the bankruptcy of an unrelated company.
Market disruptions could stem from general market disruption due to general credit market or political events, the reform or replacement of benchmark rates, the failure of financial institutions on which the Companies rely or the bankruptcy of an unrelated company.
For the duration of the outbreak of COVID-19, voluntary suspension, or potential legislative or government action, such as legislation enacted in Virginia in November 2020, may limit the Companies’ ability to collect on overdue accounts or disconnect services for non-payment, which may cause a decrease in the Companies’ results of operations and cash flows. 47
In addition, legislative or government action, such as legislation enacted in Virginia in November 2020, may limit the Companies’ ability to collect overdue accounts or disconnect services for non-payment, which may cause a decrease in the Companies’ results of operations and cash flows.
The GTSA reinstated triennial reviews commencing with the 2021 Triennial Review. Under certain circumstances described in the Regulation Act, Virginia Power may be required to refund a portion of its earnings to customers through a refund process and to reduce its rates.
Under certain circumstances described in the Regulation Act, Virginia Power may be required to refund a portion of its earnings to customers through a refund process and to reduce its rates.
Such third-party investors have their own interests and objectives which may differ from those of Dominion Energy and, accordingly, disputes may arise amongst the owners of such partnership arrangements that may result in delays, litigation or operational impasses.
Such third-party investors have their own interests and objectives which may differ from those of Dominion Energy and, accordingly, disputes may arise amongst the owners of such partnership arrangements that may result in delays, litigation or operational impasses. War, acts and threats of terrorism, intentional acts and other significant events could adversely affect the Companies’ operations.
However, advances in distributed generation technologies, such as solar cells, gas microturbines, battery storage and fuel cells, may make these alternative generation methods competitive with large-scale utility generation, and change how customers acquire or use the Companies’ services.
Further, Virginia Power’s business model is premised upon the cost efficiency of the production, transmission and distribution of large-scale centralized utility generation. However, advances in distributed generation technologies, such as solar cells, gas microturbines, battery storage and fuel cells, may make these alternative generation methods competitive with large-scale utility generation, and change how customers acquire or use the Companies’ services.
Any of these or other factors could adversely affect the Companies’ ability to realize the anticipated benefits from the facility construction, pipeline, electric transmission line, expansion, conversion and other infrastructure projects. The development and construction of the CVOW Commercial Project involves significant risks. The CVOW Commercial Project is a large-scale, complex project that will take several years to complete.
Any of these or other factors could adversely affect the Companies’ ability to realize the anticipated benefits from the facility construction, pipeline, electric transmission line, expansion, conversion and other infrastructure projects. The development, construction and commissioning of several large-scale infrastructure projects simultaneously involves significant execution risk.
A number of large and small scale projects have been announced, including electric 40 transmission lines, pipeline replacements, facility expansions or renewed licensing, conversions and other infrastructure developments or construction. Additional projects may be considered in the future. The Companies compete for projects with companies of varying size and financial capabilities, including some that may have competitive advantages.
A number of large and small scale projects have been announced, including the CVOW 39 Commercial Project, electric transmission lines, pipeline replacements, facility expansions or renewed licensing, conversions and other infrastructure developments or construction. Additional projects may be considered in the future.
Commencing construction on announced and future projects may require approvals from applicable state and federal agencies, and such approvals could include mitigation costs which may be material to the Companies.
The Companies compete for projects with companies of varying size and financial capabilities, including some that may have competitive advantages. Commencing construction on announced and future projects may require approvals from applicable state and federal agencies, and such approvals could include mitigation costs which may be material to the Companies.
For example, in the fourth quarter of 2022, Dominion Energy determined that its nonregulated solar generation assets within Contracted Assets were impaired, resulting in a $1.1 billion after-tax charge. Exposure to counterparty performance may adversely affect the Companies’ financial results of operations.
For example, in the fourth quarter of 2022, Dominion Energy determined that its nonregulated solar generation assets within Contracted Energy were impaired, resulting in a $685 million after-tax charge.
In addition, the Companies’ businesses require that they and their vendors collect and maintain sensitive customer data, as well as confidential employee and shareholder information, which is subject to electronic theft or loss.
In addition, the techniques used in cyber attacks evolve rapidly, including from emerging technologies, such as advanced forms of automation and artificial intelligence. The Companies’ businesses also require that they and their vendors collect and maintain sensitive customer data, as well as confidential employee and shareholder information, which is subject to electronic theft or loss.
With respect to decommissioning trust funds, a decline in the market value of these assets may increase the funding requirements of the obligations to decommission the Companies’ nuclear plants or require additional NRC-approved funding assurance. 46 A decline in the market value of the assets held in trusts to satisfy future obligations under Dominion Energy’s pension and other postretirement benefit plans may increase the funding requirements under such plans.
A decline in the market value of the assets held in trusts to satisfy future obligations under Dominion Energy’s pension and other postretirement benefit plans may increase the funding requirements under such plans.
Significant delays or cost increases, or an inability to recover certain project costs, could have an adverse effect on the Companies’ financial condition, cash flows and results of operations.
Construction Risks The development and construction of the CVOW Commercial Project involves significant risks. The CVOW Commercial Project is a large-scale, complex project that will take several years to complete. Significant delays or cost increases, or an inability to recover certain project costs, could have an adverse effect on the Companies’ financial condition, cash flows and results of operations.
For these reasons, a significant cyber incident could materially and adversely affect the Companies’ business, financial condition and results of operations. The Companies’ operations are subject to operational hazards, equipment failures, supply chain disruptions and personnel issues which could negatively affect the Companies.
The Companies’ operations are subject to operational hazards, equipment failures, supply chain disruptions and personnel issues which could negatively affect the Companies.
The effects of the continued outbreak of the COVID-19 pandemic and related government responses could include extended disruptions to supply chains and capital markets, reduced labor availability and productivity and a prolonged reduction in economic activity.
Public health crises and epidemics or pandemics could adversely affect the Companies’ business, results of operations, financial condition, liquidity and/or cash flows. The effects of an outbreak of a pandemic, such as COVID-19, and related government responses could include extended disruptions to supply chains and capital markets, reduced labor availability and productivity and a prolonged reduction in economic activity.
Deterioration in the Companies’ creditworthiness, as evaluated by credit rating agencies or otherwise, or declines in market reputation either for the Companies or their industry in general, or general financial market disruptions outside of the Companies’ control could increase their cost of borrowing or restrict their ability to access one or more financial markets.
The Companies rely on access to short-term money markets and longer-term capital markets as significant sources of funding and liquidity for business plans with increasing capital expenditure needs, normal working capital and collateral requirements related to hedges of future sales and purchases of energy-related commodities. 44 Deterioration in the Companies’ creditworthiness, as evaluated by credit rating agencies or otherwise, or declines in market reputation either for the Companies or their industry in general, or general financial market disruptions outside of the Companies’ control could increase their cost of borrowing or restrict their ability to access one or more financial markets.
The Companies’ financial results can be adversely affected by various factors driving supply and demand for electricity and gas and related services. Technological advances required by federal laws mandate new levels of energy efficiency in end-use devices, including lighting, furnaces and electric heat pumps and could lead to declines in per capita energy consumption.
Technological advances required by federal laws mandate new levels of energy efficiency in end-use devices, including lighting, furnaces and electric heat pumps and could lead to declines in per capita energy consumption. Additionally, certain regulatory and legislative bodies have introduced or are considering requirements and/or incentives to reduce energy consumption by a fixed date.
These assets are subject to market fluctuation and will yield uncertain returns, which may fall below expected return rates.
These assets are subject to market fluctuation and will yield uncertain returns, which may fall below expected return rates. With respect to decommissioning trust funds, a decline in the market value of these assets may increase the funding requirements of the obligations to decommission the Companies’ nuclear plants or require additional NRC-approved funding assurance.
As market conditions change, Virginia Power’s customers may further pursue exceptions and Virginia Power’s exclusive franchise may erode.
As market conditions change, Virginia Power’s customers may further pursue exceptions and Virginia Power’s exclusive franchise may erode. Increased energy demand or significant accelerated growth in demand due to new data centers, widespread adoption of electric vehicles or other customer changes could require enhancements to the Companies’ infrastructure.
There remains uncertainty regarding the extent and duration of measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns.
Certain measures or restrictions taken to control a pandemic or similar event, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns, may cause operational interruptions and delays in construction projects.
Removed
Additionally, Virginia Power’s ability to utilize CCROs for certain qualifying projects as provided for in the GTSA may be limited if the Virginia Commission does not approve such projects.
Added
The GTSA reinstated base rate reviews commencing with the 2021 Triennial Review. Legislation enacted in Virginia in April 2023 reset the frequency of base rate reviews to a biennial period commencing with the 2023 Biennial Review.
Removed
Several proposed legislative bills have been introduced in the Virginia General Assembly which, if ultimately enacted into law, could have a material impact on Virginia Power’s retail base rates and other cost-recovery mechanisms.
Added
In connection with the February 2024 agreement to sell a 50% noncontrolling interest to Stonepeak, certain activities prior to closing require the consent of Stonepeak. Stonepeak’s interests and objectives may differ from those of the Companies and, accordingly, disputes may arise that may result in delays, litigation or operational impasses.
Removed
Items under consideration include frequency of base rate reviews, eliminating CCROs, shifting the recovery of certain costs currently recovered through riders into base rates and adjusting the parameters for determining an acceptable ROE and revenue sharing.
Added
For these reasons, a significant cyber incident could materially and adversely affect the Companies’ business, financial condition and results of operations. The Companies’ financial results can be adversely affected by various factors driving supply and demand for electricity and gas and related services.
Removed
Any significant delays in the project timeline, including from any of the factors discussed above, resulting in both the delay of commencement of construction to 2024 or later combined with a delay to the in-service date to 2028 or later may impact the ability of the Companies to recover the costs of the CVOW Commercial Project.
Added
Demand for the Companies’ services can be driven by changing populations within its utility service territories, significant new commercial or industrial customers or other changes in consumer habits. For example, data centers in Virginia Power’s service territory have been a source of significant increase in demand which is expected to continue over the next decade.
Removed
The development, construction and commissioning of several large-scale infrastructure projects simultaneously involves significant execution risk.
Added
As discussed above, the ability of the Companies to construct new facilities is dependent upon factors outside of their control, including obtaining regulatory approvals, environmental and other permits. Any delays in, or inability to complete, construction of new facilities or expand and/or renew existing facilities could have an adverse effect on the Companies’ financial results.
Removed
Additionally, certain regulatory and legislative bodies have introduced or are considering requirements and/or incentives to reduce energy consumption by a fixed date. Likewise, certain regulatory and legislative bodies have introduced or are considering actions 43 which could limit the use or installation of new natural gas appliances.
Added
In addition, purchased power from PJM or others may be from generation sources which emit more emissions than the Companies’ facilities, which could negatively impact Dominion Energy’s ability to meet its commitment to net zero emissions.
Removed
For example, Dominion Energy has a noncontrolling 50% interest in Cove Point following the sale of a 25% controlling interest to BHE in November 2020. This controlling interest allows BHE to make decisions affecting Cove Point’s ability to retain its long-term contracts.
Added
Dominion Energy may be unable to complete one or all the proposed sales of certain regulated gas distribution operations to Enbridge under the current terms and/or expected timing.
Removed
Cove Point is a party to certain contracts that allow a regulated service provider and a customer to mutually agree to sign a contract for service at a “negotiated rate” which may be above or below the FERC regulated, cost-based recourse rate for that service.
Added
The ability of Dominion Energy to complete the East Ohio, PSNC and Questar Gas Transactions, each of which are not conditioned upon the completion of the others, is dependent upon receiving clearance or approval under or by the Hart-Scott-Rodino Act, CFIUS, FCC and applicable state utility commissions, including the North Carolina, Utah and Wyoming Commissions, as well as other customary closing and regulatory conditions.
Removed
These “negotiated rate” contracts are not generally subject to adjustment for increased costs which could be produced by inflation or other factors relating to the specific facilities being used to perform the services. Any shortfall of revenue as a result of these “negotiated rate” contracts could decrease Cove Point’s earnings and cash flows.
Added
The ability to obtain any remaining requisite regulatory approvals for each sale as well as the timing of such approvals is outside of Dominion Energy’s control.
Removed
The inability to maintain or renew such contracts on favorable terms may have a material impact to Dominion Energy’s results of operations, financial position or cash flows. Dominion Energy is also dependent upon BHE for managing counterparty credit risk relating to Cove Point’s terminal services agreements for its liquefied natural gas export/liquefaction facility.
Added
In addition, the terms and conditions associated with such approvals may result in additional requirements or obligations which may be burdensome or potentially result in the inability to complete one or all of the proposed sales under the current terms and/or expected timing.
Removed
While the counterparties’ obligations are supported by parental guarantees and letters of credit, there is no assurance that such credit support would be sufficient to satisfy the obligations in the event of a counterparty default.
Added
Such events could negatively impact Dominion Energy’s ability to implement certain of the recommendations in connection with the comprehensive business review announced in November 2022 as well as have a material adverse effect on Dominion Energy’s reputation, its financial condition, results of operations or cash flows.
Removed
In addition, if a controversy arises under either terminal services agreement resulting in a judgment in Cove Point’s favor, Cove Point may need to seek to enforce a final U.S. court judgment in a foreign tribunal, which could involve a lengthy process.
Added
The Companies may be unable to complete the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak under the current terms and/or expected timing.
Removed
Accordingly, there is no assurance that BHE may pursue remedies in the event of default in the same manner as Dominion Energy would if it had unilateral control over such decisions. War, acts and threats of terrorism, intentional acts and other significant events could adversely affect the Companies’ operations.
Added
The ability of Virginia Power to complete the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak through the formation of OSWP, is dependent upon receiving approval from the Virginia and North Carolina Commissions, consent from BOEM and other customary closing and regulatory conditions.
Removed
The Companies rely on access to short-term money markets and longer-term capital markets as significant sources of funding and liquidity for business plans with increasing capital expenditure needs, normal working capital and collateral requirements related to hedges of future sales and purchases of energy-related commodities.
Added
The ability to obtain requisite regulatory approval as well as the timing of such approvals is outside of the Companies’ control. In addition, the terms and conditions associated with such approvals may result in additional requirements or obligations which may be burdensome or potentially result in the inability to complete the proposed transaction under the current terms and/or expected timing.
Removed
Public health crises and epidemics or pandemics, such as COVID-19, could adversely affect the Companies’ business, results of operations, financial condition, liquidity and/or cash flows.
Added
Such events could negatively impact Dominion Energy’s ability to implement certain of the recommendations in connection with the comprehensive business review announced in November 2022 as well as have a material adverse effect on the Companies’ reputation, its financial condition, results of operations or cash flows.
Removed
Such restrictions may cause operational interruptions and delays in construction projects, which, in the case of renewable energy projects, could delay the expected in-service dates of these projects and financial statement impact of the investment tax credits associated with these projects.
Added
In addition, Dominion Energy recorded a $286 45 million after-tax charge in the fourth quarter of 2023 for the impairment of certain goodwill associated with the East Ohio and Questar Gas Transactions. Exposure to counterparty performance may adversely affect the Companies’ financial results of operations.

Item 2. Properties

Properties — owned and leased real estate

21 edited+2 added−4 removed5 unchanged
Biggest changeStorm, WV 1,617 Chesterfield (1) Chester, VA 1,014 Virginia City Hybrid Energy Center Wise County, VA 610 Clover Clover, VA 439 (2) Total Coal 3,680 18 Nuclear Surry Surry, VA 1,676 North Anna Mineral, VA 1,672 (3) Total Nuclear 3,348 16 Hydro Bath County Warm Springs, VA 1,808 (4) Gaston Roanoke Rapids, NC 220 Roanoke Rapids Roanoke Rapids, NC 95 Other 1 Total Hydro 2,124 10 Oil Yorktown (1) Yorktown, VA 790 Gravel Neck (CT) Surry, VA 198 Darbytown (CT) Richmond, VA 168 Rosemary (CC) Roanoke Rapids, NC 160 Possum Point (CT) Dumfries, VA 72 Low Moor (CT) Covington, VA 48 Northern Neck (CT) Lively, VA 47 Chesapeake (CT) Chesapeake, VA 39 Total Oil 1,522 7 Solar (5) Colonial Trail West Surry County, VA 142 Sadler Solar Emporia, VA 100 Spring Grove Surry County, VA 98 Grassfield Chesapeake, VA 20 Whitehouse Solar Louisa County, VA 20 Woodland Solar Isle of Wight County, VA 19 Scott Solar Powhatan, VA 17 Total Solar 416 2 Biomass Altavista (6) Altavista, VA 51 Polyester (6) Hopewell, VA 51 Southampton (6) Southampton, VA 51 Total Biomass 153 1 Wind CVOW Pilot Project Virginia Beach, VA 12 — Various Mt.
Biggest changeStorm, WV 1,617 Virginia City Hybrid Energy Center Wise County, VA 610 Clover Clover, VA 439 (2) Total Coal 2,666 14 Hydro Bath County Warm Springs, VA 1,808 (3) Gaston Roanoke Rapids, NC 220 Roanoke Rapids Roanoke Rapids, NC 95 Other 1 Total Hydro 2,124 11 Oil Gravel Neck (CT) Surry, VA 198 Darbytown (CT) Richmond, VA 168 Rosemary (CC) Roanoke Rapids, NC 155 Possum Point (CT) Dumfries, VA 72 Low Moor (CT) Covington, VA 48 Northern Neck (CT) Lively, VA 47 Chesapeake (CT) Chesapeake, VA 39 Total Oil 727 4 Solar (4) Colonial Trail West Surry County, VA 142 Sadler Solar Emporia, VA 100 Spring Grove Surry County, VA 98 Piney Creek Halifax, VA 80 Sycamore Gretna, VA 42 Grassfield Chesapeake, VA 20 Norge Williamsburg, VA 20 Solidago Windsor, VA 20 Whitehouse Solar Louisa County, VA 20 Winterberry Gloucester County, VA 20 Woodland Solar Isle of Wight County, VA 19 Scott Solar Powhatan, VA 17 Total Solar 598 3 Biomass Altavista Altavista, VA 51 Polyester Hopewell, VA 51 Southampton Southampton, VA 51 Total Biomass 153 1 Battery Dry Bridge Chesterfield, VA 20 — Wind CVOW Pilot Project Virginia Beach, VA 12 — Various Mt.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Nuclear Millstone Waterford, CT 2,001 (1) Total Nuclear 2,001 67 % Solar (2) Hardin I Hardin County, OH 150 Amazon Solar Farm Virginia – Southampton Newsoms, VA 100 (3) Amazon Solar Farm Virginia – Accomack Oak Hall, VA 80 (3) Greensville Greensville County, VA 80 Innovative Solar 37 Morven, NC 79 (3) Wilkinson Pantego, NC 74 Seabrook Beaufort County, SC 73 Moffett Solar 1 Ridgeland, SC 71 (3) Summit Farms Solar Moyock, NC 60 (3) Midway II Calipatria, CA 30 (3) Amazon Solar Farm Virginia – Buckingham Cumberland, VA 20 (3) Amazon Solar Farm Virginia – Correctional Barhamsville, VA 20 (3) Hecate Cherrydale Cape Charles, VA 20 (3) Amazon Solar Farm Virginia – Sussex Drive Stoney Creek, VA 20 (3) Amazon Solar Farm Virginia – Scott II Powhatan, VA 20 (3) Myrtle Suffolk, VA 15 Trask Beaufort County, SC 12 Hecate Energy Clarke County White Post, VA 10 (3) Ridgeland Solar Farm I Ridgeland, SC 10 (3) Yemassee Hampton County, SC 10 Blackville Blackville, SC 7 Denmark Denmark, SC 6 Other Various 35 (3) Total Solar 1,002 33 Total Nonregulated Generation 3,003 100 % (1) Excludes 6.53% undivided interest in Unit 3 owned by Massachusetts Municipal and Green Mountain.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Nuclear Millstone Waterford, CT 2,013 (1) Total Nuclear 2,013 67 % Solar (2) Hardin I Hardin County, OH 150 Amazon Solar Farm Virginia – Southampton Newsoms, VA 100 (3) Amazon Solar Farm Virginia – Accomack Oak Hall, VA 80 (3) Greensville Greensville County, VA 80 Innovative Solar 37 Morven, NC 79 (3) Wilkinson Pantego, NC 74 Seabrook Beaufort County, SC 73 Moffett Solar 1 Ridgeland, SC 71 (3) Summit Farms Solar Moyock, NC 60 (3) Midway II Calipatria, CA 30 (3) Amazon Solar Farm Virginia – Buckingham Cumberland, VA 20 (3) Amazon Solar Farm Virginia – Correctional Barhamsville, VA 20 (3) Hecate Cherrydale Cape Charles, VA 20 (3) Amazon Solar Farm Virginia – Sussex Drive Stoney Creek, VA 20 (3) Amazon Solar Farm Virginia – Scott II Powhatan, VA 20 (3) Myrtle Suffolk, VA 15 Trask Beaufort County, SC 12 Hecate Energy Clarke County White Post, VA 10 (3) Ridgeland Solar Farm I Ridgeland, SC 10 (3) Yemassee Hampton County, SC 10 Blackville Blackville, SC 7 Denmark Denmark, SC 6 Other Various 35 (3) Total Solar 1,002 33 Total Nonregulated Generation 3,015 100 % (1) Excludes 6.53% undivided interest in Unit 3 owned by Massachusetts Municipal and Green Mountain.
Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary. Many electric lines are on publicly-owned property, where permission to operate can be revoked. In addition, DESC owns 459 substations.
Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary. Many electric lines are on publicly-owned property, where permission to operate can be revoked. In addition, DESC owns 457 substations.
There were no bonds outstanding as of December 31, 2022; however, by leaving the indenture open, Virginia Power retains the flexibility to issue mortgage bonds in the future. Certain of Dominion Energy’s nonregulated generation facilities are also subject to liens.
There were no bonds outstanding as of December 31, 2023; however, by leaving the indenture open, Virginia Power retains the flexibility to issue mortgage bonds in the future. Certain of Dominion Energy’s nonregulated generation facilities are also subject to liens.
Item 2. Pr operties As of December 31, 2022, Dominion Energy owned its principal executive office in Richmond, Virginia and five other corporate offices. Dominion Energy also leases corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate. Virginia Power shares Dominion Energy’s principal executive office in Richmond, Virginia.
Item 2. Pr operties As of December 31, 2023, Dominion Energy owned its principal executive office in Richmond, Virginia and five other corporate offices. Dominion Energy also leases corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate. Virginia Power shares Dominion Energy’s principal executive office in Richmond, Virginia.
Questar Gas also owns one LNG facility that stores the liquified equivalent of 1.2 bcf of natural gas, can regasify approximately 12% of its storage capacity per day and can liquefy less than 1% of its storage capacity per day.
Questar Gas also owns one LNG facility that stores the liquefied equivalent of 1.2 bcf of natural gas, can regasify approximately 12% of its storage capacity per day and can liquefy less than 1% of its storage capacity per day.
DOMINION ENERGY SOUTH CAROLINA DESC has approximately 3,900 miles and 18,800 miles of electric transmission and distribution lines, respectively, exclusive of service level lines, in South Carolina. The grants for most of DESC’s electric lines contain rights-of-way that have been obtained from the apparent owners of real estate, but underlying property titles have not been examined.
DOMINION ENERGY SOUTH CAROLINA DESC has approximately 3,900 miles and 19,000 miles of electric transmission and distribution lines, respectively, exclusive of service level lines, in South Carolina. The grants for most of DESC’s electric lines contain rights-of-way that have been obtained from the apparent owners of real estate, but underlying property titles have not been examined.
While Virginia Power owns and maintains its electric transmission facilities, they are a part of PJM, which coordinates the planning, operation, emergency assistance and exchange of capacity and energy for such facilities. In addition, Virginia Power’s electric distribution network includes approximately 59,700 miles of distribution lines, exclusive of service level lines, in Virginia and North Carolina.
While Virginia Power owns and maintains its electric transmission facilities, they are a part of PJM, which coordinates the planning, operation, emergency assistance and exchange of capacity and energy for such facilities. In addition, Virginia Power’s electric distribution network includes approximately 60,300 miles of distribution lines, exclusive of service level lines, in Virginia and North Carolina.
The Salley facility can store the liquefied equivalent of approximately 0.9 bcf of natural gas and can regasify approximately 10% of its storage capacity per day. The Salley facility has no liquefying capabilities. 51 The following table lists DESC’s generating units and capability as of December 31, 2022.
The Salley facility can store the liquefied equivalent of approximately 0.9 bcf of natural gas and can regasify approximately 10% of its storage capacity per day. The Salley facility has no liquefying capabilities. 50 The following table lists DESC’s generating units and capability as of December 31, 2023.
DESC’s natural gas system includes approximately 19,100 miles of distribution mains and related service facilities, which are supported by approximately 400 miles of transmission pipeline. DESC owns two LNG facilities, one located near Charleston, South Carolina, and the other in Salley, South Carolina.
DESC’s natural gas system includes approximately 18,800 miles of distribution mains and related service facilities, which are supported by approximately 400 miles of transmission pipeline. DESC owns two LNG facilities, one located near Charleston, South Carolina, and the other in Salley, South Carolina.
(6) In accordance with the VCEA, these units will be retired no later than 2028. 50 VIRGINIA POWER NON-JURISDICTIONAL GENERATION Plant Location Net Summer Capability (MW) Solar (1) Fort Powhatan Disputanta, VA 150 Maplewood Chatham, VA 120 Desper Louisa, VA 88 Gutenberg Garysburg, NC 80 Butcher Creek Chase City, VA 80 Pecan Pleasant Hill, NC 75 Chestnut Halifax County, NC 75 Bedford Chesapeake, VA 70 Pumpkinseed Emporia, VA 60 Gloucester Gloucester County, VA 20 Montross Westmoreland County, VA 20 Morgans Corner Pasquotank County, NC 20 Remington Fauquier County, VA 20 Rochambeau James City County, VA 20 Oceana Virginia Beach, VA 18 Hollyfield Manquin, VA 17 Puller Topping, VA 15 Total Non-Jurisdictional Generation 948 (1) All solar facilities are alternating current.
VIRGINIA POWER NON-JURISDICTIONAL GENERATION Plant Location Net Summer Capability (MW) Solar (1) Fort Powhatan Disputanta, VA 150 Maplewood Chatham, VA 120 Desper Louisa, VA 88 Gutenberg Garysburg, NC 80 Butcher Creek Chase City, VA 80 Pecan Pleasant Hill, NC 75 Chestnut Halifax County, NC 75 Bedford Chesapeake, VA 70 Pumpkinseed Emporia, VA 60 Gloucester Gloucester County, VA 20 Montross Westmoreland County, VA 20 Morgans Corner Pasquotank County, NC 20 Remington Fauquier County, VA 20 Rochambeau James City County, VA 20 Oceana Virginia Beach, VA 18 Hollyfield Manquin, VA 17 Puller Topping, VA 15 Total Non-Jurisdictional Generation 948 (1) All solar facilities are alternating current.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Gas Jasper (CC) (1) Hardeeville, SC 903 Columbia Energy Center (CC) (1) Gaston, SC 519 Urquhart (CC) (1) Beech Island, SC 458 McMeekin Irmo, SC 250 Hagood (CT) (1) Charleston, SC 126 Urquhart Unit 3 Beech Island, SC 95 Urquhart (CT) (1) Beech Island, SC 87 Parr (CT) (1)(2) Jenkinsville, SC 47 Coit (CT) (1)(2) Columbia, SC 26 Total Gas 2,511 38 % Coal Wateree Eastover, SC 684 Williams Goose Creek, SC 605 Cope (3) Cope, SC 415 Total Coal 1,704 26 Hydro Fairfield Jenkinsville, SC 576 Saluda Irmo, SC 198 Other Various 18 Total Hydro 792 12 Nuclear Summer Jenkinsville, SC 651 (4) 10 5,658 Power Purchase Agreements 973 (5) 14 Total Utility Generation 6,631 100 % Note: (CT) denotes combustion turbine and (CC) denotes combined cycle.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Gas Jasper (CC) (1) Hardeeville, SC 902 Columbia Energy Center (CC) (1) Gaston, SC 520 Urquhart (CC) (1) Beech Island, SC 458 McMeekin Irmo, SC 250 Hagood (CT) (1) Charleston, SC 126 Urquhart Unit 3 Beech Island, SC 95 Urquhart (CT) (1) Beech Island, SC 87 Coit (CT) (1)(2) Columbia, SC 26 Total Gas 2,464 38 % Coal Wateree Eastover, SC 684 Williams Goose Creek, SC 595 Cope (3) Cope, SC 415 Total Coal 1,694 26 Hydro Fairfield Jenkinsville, SC 576 Saluda Irmo, SC 198 Other Various 18 Total Hydro 792 12 Nuclear Summer Jenkinsville, SC 644 (4) 10 5,594 Power Purchase Agreements 973 (5) 14 Total Utility Generation 6,567 100 % Note: (CT) denotes combustion turbine and (CC) denotes combined cycle.
VIRGINIA POWER UTILITY GENERATION Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Gas Greensville County (CC) Greensville County, VA 1,629 Brunswick County (CC) Brunswick County, VA 1,376 Warren County (CC) Warren County, VA 1,349 Ladysmith (CT) Ladysmith, VA 783 Bear Garden (CC) Buckingham County, VA 622 Remington (CT) Remington, VA 622 Possum Point (CC) Dumfries, VA 573 Chesterfield (CC) Chester, VA 392 Elizabeth River (CT) Chesapeake, VA 330 Gordonsville Energy (CC) Gordonsville, VA 218 Gravel Neck (CT) Surry, VA 170 Darbytown (CT) Richmond, VA 168 Total Gas 8,232 41 % Coal Mt.
VIRGINIA POWER UTILITY GENERATION Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Gas Greensville County (CC) Greensville County, VA 1,605 Brunswick County (CC) Brunswick County, VA 1,376 Warren County (CC) Warren County, VA 1,349 Ladysmith (CT) Ladysmith, VA 782 Bear Garden (CC) Buckingham County, VA 622 Remington (CT) Remington, VA 619 Possum Point (CC) Dumfries, VA 573 Chesterfield (CC) Chester, VA 386 Elizabeth River (CT) Chesapeake, VA 327 Gordonsville Energy (CC) Gordonsville, VA 218 Gravel Neck (CT) Surry, VA 170 Darbytown (CT) Richmond, VA 168 Total Gas 8,195 43 % Nuclear Surry Surry, VA 1,676 North Anna Mineral, VA 1,672 (1) Total Nuclear 3,348 17 Coal Mt.
(1) Capable of burning fuel oil as a secondary source. (2) Expected to be retired by the end of 2025. (3) Capable of burning natural gas as a secondary source. (4) Excludes 33.3% undivided interest owned by Santee Cooper. (5) Includes 189 MW from agreements with certain solar facilities within Contracted Assets.
(1) Capable of burning fuel oil as a secondary source. (2) Expected to be retired by the end of 2025. (3) Capable of burning natural gas as a secondary source. (4) Excludes 33.3% undivided interest owned by Santee Cooper.
PSNC owns one LNG facility that stores the liquefied equivalent of 1.0 bcf of natural gas, can regasify approximately 10% of its storage capacity per day and can liquefy less than 1% of its storage capacity per day.
East Ohio’s integrated underground storage facilities have more than 60 bcf of working gas capacity to serve base and peak demand. PSNC owns one LNG facility that stores the liquefied equivalent of 1.0 bcf of natural gas, can regasify approximately 10% of its storage capacity per day and can liquefy less than 1% of its storage capacity per day.
(3) Excludes 11.6% undivided interest owned by ODEC. (4) Excludes 40% undivided interest owned by Allegheny Generating Company, a subsidiary of FirstEnergy Corp. (5) All solar facilities are alternating current.
(3) Excludes 23.75% undivided interest owned by LS Power Equity Advisors LLC and 16.25% undivided interest owned by Allegheny Generating Company, a subsidiary of FirstEnergy Corp. (4) All solar facilities are alternating current.
Many natural gas pipelines are on publicly-owned property, where company rights and actions are determined on a case-by-case basis, with results that range from reimbursed relocation to revocation of permission to operate. East Ohio’s integrated underground storage facilities have more than 60 bcf of working gas capacity to serve base and peak demand.
Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary. Many natural gas pipelines are on publicly-owned property, where company rights and actions are determined on a case-by-case basis, with results that range from reimbursed relocation to revocation of permission to operate.
Storm (CT) Mt. Storm, WV 11 — 19,498 Power Purchase Agreements 1,106 5 Total Utility Generation 20,604 100 % Note: (CT) denotes combustion turbine and (CC) denotes combined cycle. (1) Will be retired after it meets its capacity obligation in 2023. See Note 2 to the Consolidated Financial Statements for additional information. (2) Excludes 50% undivided interest owned by ODEC.
Storm (CT) Mt. Storm, WV 11 — 17,854 Power Purchase Agreements 1,289 7 Total Utility Generation 19,143 100 % 49 Note: (CT) denotes combustion turbine and (CC) denotes combined cycle. (1) Excludes 11.6% undivided interest owned by ODEC. (2) Excludes 50% undivided interest owned by ODEC.
In addition, Virginia Power owns 482 substations and 16 MW of battery storage. Dominion Energy also owns various solar facilities, primarily at schools in Virginia, with an aggregate generation capacity of 21 MW. 49 The following tables list Virginia Power’s generating units and capability as of December 31, 2022.
Dominion Energy also owns various solar facilities, primarily at schools in Virginia, with an aggregate generation capacity of 27 MW. 52
The right-of-way grants for many natural gas pipelines have been obtained from the actual owners of real estate, as underlying titles have been examined. Where rights-of-way have not been obtained, they could be acquired from private owners by condemnation, if necessary.
This network includes approximately 76,000 miles of distribution mains and related service facilities which are supported by approximately 3,600 miles of transmission, gathering and storage pipeline. The right-of-way grants for many natural gas pipelines have been obtained from the actual owners of real estate, as underlying titles have been examined.
(2) All solar facilities are alternating current. (3) Dominion Energy’s interest is subject to a lien securing Eagle Solar’s debt. 53
(2) All solar facilities are alternating current. (3) Dominion Energy’s interest was subject to a lien securing Eagle Solar’s debt prior to its redemption in February 2024. CORPORATE AND OTHER The operations included in the East Ohio, PSNC and Questar Gas Transactions are located in Ohio, North Carolina, Utah, southwestern Wyoming and southeastern Idaho.
Removed
GAS DISTRIBUTION Gas Distribution’s network is located in Ohio, North Carolina, Utah, southwestern Wyoming and southeastern Idaho. This network includes approximately 74,400 miles of distribution mains and related service facilities which are supported by approximately 3,600 miles of transmission, gathering and storage pipeline.
Added
In addition, Virginia Power owns 484 substations. 48 The following tables list Virginia Power’s generating units and capability as of December 31, 2023.
Removed
CONTRACTED ASSETS Contracted Assets includes Dominion Energy’s 50% noncontrolling interest in Cove Point. The Cove Point LNG Facility has an operational peak regasification daily send-out capacity of approximately 1.8 million Dths and an aggregate LNG storage capacity of approximately 14.6 bcfe. In addition, Cove Point has a small liquefier that has the potential to create approximately 15,000 Dths/day.
Added
(5) Includes 189 MW from agreements with certain solar facilities within Contracted Energy. 51 CONTRACTED ENERGY The following table lists Contracted Energy’s generating units and capability as of December 31, 2023.
Removed
The Liquefaction Facility consists of one LNG train with a nameplate outlet capacity of 5.25 Mtpa. Cove Point has authorization from the DOE to export up to 0.77 bcfe/day (approximately 5.75 Mtpa) should the Liquefaction Facility perform better than expected.
Removed
In addition, Cove Point operates a 136-mile natural gas pipeline that connects the Cove Point LNG Facility to interstate natural gas pipelines. 52 The following table lists Contracted Assets’ generating units and capability as of December 31, 2022.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

9 edited+0 added−2 removed0 unchanged
Biggest changeKeller Kissam (56) President—Dominion Energy South Carolina from January 2022 to present; President—Electric Operations of DESC from January 2019 to December 2021; President—Generation, Transmission and Distribution and COO of DESC from January 2018 to December 2018.
Biggest changeMichele L. Cardiff (56) Senior Vice President, Controller and CAO from October 2020 to present; Vice President, Controller and CAO from April 2014 to September 2020. W. Keller Kissam (57) President—Dominion Energy South Carolina from January 2022 to present; President—Electric Operations of DESC from January 2019 to December 2021.
Item 4. Mine Saf ety Disclosures Not applicable. 54 Information about our Executive Office rs Information concerning the executive officers of Dominion Energy, each of whom is elected annually, is as follows: Name and Age Business Experience Past Five Years (1) Robert M.
Item 4. Mine Saf ety Disclosures Not applicable. 53 Information about our Executive Office rs Information concerning the executive officers of Dominion Energy, each of whom is elected annually, is as follows: Name and Age Business Experience Past Five Years (1) Robert M.
Blue (55) Chair of the Board of Directors from April 2021 to present; President and CEO from October 2020 to present; Director from November 2020 to present; Executive Vice President and Co-COO from December 2019 to September 2020; Executive Vice President and President & CEO—Power Delivery Group from May 2017 to November 2019. Edward H.
Blue (56) Chair of the Board of Directors from April 2021 to present; President and CEO from October 2020 to present; Director from November 2020 to present; Executive Vice President and Co-COO from December 2019 to September 2020; Executive Vice President and President & CEO—Power Delivery Group from May 2017 to November 2019. Edward H.
Baine (49) President—Dominion Energy Virginia from October 2020 to present; Senior Vice President—Power Delivery of Virginia Power from December 2019 to September 2020; Senior Vice President—Distribution of Virginia Power from February 2016 to November 2019. P.
Baine (50) President—Dominion Energy Virginia from October 2020 to present; Senior Vice President—Power Delivery of Virginia Power from December 2019 to September 2020; Senior Vice President—Distribution of Virginia Power from February 2016 to November 2019. P.
Diane Leopold (56) Executive Vice President and COO from October 2020 to present; Executive Vice President and Co-COO from December 2019 to September 2020; Executive Vice President and President & CEO—Gas Infrastructure Group from May 2017 to November 2019. Steven D.
Diane Leopold (57) Executive Vice President, COO and President — Contracted Energy from August 2023 to present; Executive Vice President and COO from October 2020 to July 2023; Executive Vice President and Co-COO from December 2019 to September 2020; Executive Vice President and President & CEO—Gas Infrastructure Group from May 2017 to November 2019. Steven D.
Ridge (42) Senior Vice President and CFO from November 2022 to present; President of Questar Gas from October 2022 to November 2022; Vice President and General Manager—Western Distribution from October 2021 to September 2022; Vice President—Investor Relations of DES from April 2019 to September 2021; Director—Investor Relations of DES from October 2017 to March 2019. Daniel G.
Ridge (43) Executive Vice President and CFO from January 2024 to present; Senior Vice President and CFO from November 2022 to December 2023; President of Questar Gas from October 2022 to November 2022; Vice President and General Manager—Western Distribution from October 2021 to September 2022; Vice President—Investor Relations of DES from April 2019 to September 2021; Director—Investor Relations of DES from October 2017 to March 2019.
Rodney Blevins (58) President—Gas Distribution from January 2022 to present; President—Dominion Energy South Carolina from December 2019 to December 2021; President & Chief Executive Officer—Southeast Energy Group from January 2019 to November 2019; Senior Vice President and Chief Information Officer from January 2014 to December 2018. Carlos M.
Rodney Blevins (59) President—Gas Distribution from January 2022 to present; President—Dominion Energy South Carolina from December 2019 to December 2021; President & CEO—Southeast Energy Group from January 2019 to November 2019. Carlos M.
Brown (48) Senior Vice President, Chief Legal Officer and General Counsel from September 2022 to present; Senior Vice President, General Counsel and Chief Compliance Officer from December 2019 to August 2022; Senior Vice President and General Counsel from January 2019 to November 2019; Vice President and General Counsel from January 2017 to December 2018. Michele L.
Brown (49) President—DES and Executive Vice President, Chief Legal Officer and Corporate Secretary from January 2024 to present; Senior Vice President, Chief Legal Officer and General Counsel from September 2022 to December 2023; Senior Vice President, General Counsel and Chief Compliance Officer from December 2019 to August 2022; Senior Vice President and General Counsel from January 2019 to November 2019.
Any service listed for Virginia Power, DESC, Questar Gas and DES reflects service at a current or previous subsidiary of Dominion Energy. 55 Part II
(1) All positions held at Dominion Energy, unless otherwise noted. Any service listed for Virginia Power, DESC, Questar Gas and DES reflects service at a subsidiary of Dominion Energy. 54 Part II
Removed
Cardiff (55) Senior Vice President, Controller and Chief Accounting Officer from October 2020 to present; Vice President, Controller and CAO from April 2014 to September 2020. W.
Removed
Stoddard (60) Senior Vice President, Chief Nuclear Officer and President—Contracted Assets from September 2020 to present; Senior Vice President, Chief Nuclear Officer and President—Contracted Generation from December 2019 to August 2020; Senior Vice President and Chief Nuclear Officer of Virginia Power from October 2016 to present. (1) All positions held at Dominion Energy, unless otherwise noted.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−0 removed4 unchanged
Biggest changePurchases of Equity Securities Period Total Number of Shares (or Units) Purchased (1) Average Price Paid per Share (or Unit) (2) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased under the Plans or Programs (3) 10/1/22-10/31/22 74,869 $ 69.11 — $ 0.92 billion 11/1/22-11/30/22 1,014 69.72 — 0.92 billion 12/1/22-12/31/22 556 60.37 — 0.92 billion Total 76,439 $ 69.05 — $ 0.92 billion (1) Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.
Biggest changePurchases of Equity Securities Period Total Number of Shares (or Units) Purchased (1) Average Price Paid per Share (or Unit) (2) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased under the Plans or Programs (3) 10/1/23-10/31/23 77,065 $ 44.67 — $ 0.92 billion 11/1/23-11/30/23 — — — 0.92 billion 12/1/23-12/31/23 1,060 46.67 — 0.92 billion Total 78,125 $ 44.70 — $ 0.92 billion (1) Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.
Virginia Power may pay cash dividends in 2023 but is neither required to nor restricted, except as described in Note 21 to the Consolidated Financial Statements, from making such payments.
Virginia Power may pay cash dividends in 2024 but is neither required to nor restricted, except as described in Note 21 to the Consolidated Financial Statements, from making such payments.
Item 5. Market for Registrant’s Common Equity, Related St ockholder Matters and Issuer Purchases of Equity Securities DOMINION ENERGY Dominion Energy’s common stock is listed on the NYSE under the ticker symbol D. At February 15, 2023, there were 122,016 record holders of Dominion Energy’s common stock.
Item 5. Market for Registrant’s Common Equity, Related St ockholder Matters and Issuer Purchases of Equity Securities DOMINION ENERGY Dominion Energy’s common stock is listed on the NYSE under the ticker symbol D. At February 19, 2024, there were approximately 117,000 record holders of Dominion Energy’s common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

106 edited+75 added−28 removed83 unchanged
Biggest changeDominion Energy Virginia Presented below are operating statistics related to Dominion Energy Virginia’s operations: Year Ended December 31, 2022 % Change 2021 % Change 2020 Electricity delivered (million MWh) 90.0 6 % 85.2 2 % 83.3 Electricity supplied (million MWh): Utility 90.2 5 85.7 (1 ) 87.0 Non-Jurisdictional 1.5 50 1.0 43 0.7 Degree days (electric distribution and utility service area): Cooling 1,765 (1 ) 1,783 1 1,759 Heating 3,555 11 3,210 8 2,970 Average electric distribution customer accounts (thousands) 2,724 1 2,697 1 2,661 69 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution: 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 21 $ 0.03 Customer usage and other factors 25 0.03 Customer-elected rate impacts 13 0.02 Base rate case impacts (41 ) (0.05 ) Rider equity return 64 0.08 Storm damage and service restoration (17 ) (0.02 ) Planned outage costs (12 ) (0.01 ) Depreciation and amortization 19 0.02 Renewable energy investment tax credits 65 0.08 Salaries, wages and benefits & administrative costs 26 0.03 Interest expense, net (13 ) (0.02 ) Other (61 ) (0.07 ) Share dilution — (0.05 ) Change in net income contribution $ 89 $ 0.07 2021 VS. 2020 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 44 $ 0.05 Customer usage and other factors (26 ) (0.03 ) Customer-elected rate impacts 46 0.06 Rider equity return 41 0.05 Electric capacity (28 ) (0.03 ) Outages (14 ) (0.02 ) Depreciation and amortization (18 ) (0.02 ) Renewable energy investment tax credits 7 0.01 Salaries, wages and benefits & administrative costs (22 ) (0.03 ) Other (2 ) (0.01 ) Share accretion — 0.06 Change in net income contribution $ 28 $ 0.09 Gas Distribution Presented below are selected operating statistics related to Gas Distribution’s operations: Year Ended December 31, 2022 (1) % Change 2021 % Change 2020 Gas distribution throughput (bcf): Sales 194 6 % 183 2 % 180 Transportation 1,020 5 975 12 868 Heating degree days (gas distribution service area): North Carolina 3,009 2 2,947 8 2,734 Ohio and West Virginia 5,514 8 5,121 (1 ) 5,148 Utah, Wyoming, and Idaho 5,170 6 4,874 (2 ) 4,973 Average gas distribution customer accounts (thousands): Sales 1,944 — 1,935 2 1,897 Transportation 1,131 — 1,131 1 1,123 (1) Includes Hope through August 2022. 70 Presented below, on an after-tax basis, are the key factors impacting Gas Distribution’s net income contribution: 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 4 $ — Customer usage and other factors 36 0.04 Base rate case impacts 29 0.04 Rider equity return 25 0.03 Wexpro cost saving sharing incentives 21 0.03 Sale of Hope (11 ) (0.01 ) Interest expense, net (16 ) (0.02 ) Other 9 0.01 Share dilution — (0.01 ) Change in net income contribution $ 97 $ 0.11 2021 VS. 2020 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ — $ — Customer usage and other factors 24 0.03 Base rate case impacts 7 0.01 Rider equity return 40 0.05 Salaries, wages and benefits & administrative costs (8 ) (0.01 ) Interest expense, net 12 0.01 Other (35 ) (0.04 ) Share accretion — 0.02 Change in net income contribution $ 40 $ 0.07 Dominion Energy South Carolina Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations: Year Ended December 31, 2022 % Change 2021 % Change 2020 Electricity delivered (million MWh) 23.0 3 % 22.4 1 % 22.1 Electricity supplied (million MWh) 24.1 3 23.5 2 23.0 Degree days (electric and gas distribution service areas): Cooling 767 (11 ) 859 8 794 Heating 1,294 1 1,280 19 1,074 Average electric distribution customer accounts (thousands) 777 1 766 2 753 Gas distribution throughput (bcf): Sales 68 (6 ) 72 9 66 Average gas distribution customer accounts (thousands) 427 4 412 3 399 71 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution: 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 21 $ 0.03 Customer usage and other factors 38 0.05 Customer-elected rate impacts 14 0.02 Base rate case & Natural Gas Rate Stabilization Act impacts 22 0.03 Capital cost rider (8 ) (0.01 ) Gains on sales of property 17 0.02 Depreciation and amortization (15 ) (0.02 ) Interest expense, net (16 ) (0.02 ) Other (5 ) (0.02 ) Share dilution — (0.01 ) Change in net income contribution $ 68 $ 0.07 2021 VS. 2020 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ (6 ) $ (0.01 ) Customer usage and other factors 34 0.04 Customer-elected rate impacts 10 0.01 Base rate case & Natural Gas Rate Stabilization Act impacts 13 0.02 Capital cost rider (6 ) (0.01 ) Depreciation and amortization (9 ) (0.01 ) Interest expense, net 7 0.01 Salaries, wages and benefits & administrative costs (46 ) (0.06 ) Other 21 0.02 Share accretion — 0.02 Change in net income contribution $ 18 $ 0.03 Contracted Assets Presented below are selected operating statistics related to Contracted Asset’s operations: Year Ended December 31, 2022 % Change 2021 % Change 2020 Electricity supplied (million MWh) 17.8 (14 ) % 20.8 8 % 19.3 Presented below, on an after-tax basis, are the key factors impacting Contracted Asset’s net income contribution: 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Margin (1) $ 11 $ 0.01 Sale of non-wholly-owned nonregulated solar facilities (20 ) (0.02 ) Planned outage costs (19 ) (0.02 ) Renewable energy investment tax credits (29 ) (0.04 ) Interest expense, net (50 ) (0.06 ) Other 11 0.02 Share dilution — (0.01 ) Change in net income contribution $ (96 ) $ (0.12 ) (1) Includes earnings associated with a 50% noncontrolling interest in Cove Point. 72 2021 VS. 2020 Increase (Decrease) Amount EPS (millions, except EPS) Margin (1) $ 28 $ 0.03 Planned outage costs 33 0.04 Renewable energy investment tax credits (43 ) (0.05 ) Absence of contract associated with Fowler Ridge 14 0.02 Other (3 ) — Share accretion — 0.01 Change in net income contribution $ 29 $ 0.05 (1) Includes earnings associated with a 50% noncontrolling interest in Cove Point.
Biggest changeDominion Energy Virginia Presented below are operating statistics related to Dominion Energy Virginia’s operations: Year Ended December 31, 2023 % Change 2022 % Change 2021 Electricity delivered (million MWh) 89.9 — % 90.0 6 % 85.2 Electricity supplied (million MWh): Utility 90.0 — 90.2 5 85.7 Non-Jurisdictional 1.6 7 1.5 50 1.0 Degree days (electric distribution and utility service area): Cooling 1,643 (7 ) 1,765 (1 ) 1,783 Heating 2,830 (20 ) 3,555 11 3,210 Average electric distribution customer accounts (thousands) 2,752 1 2,724 1 2,697 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution: 2023 VS. 2022 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ (126 ) $ (0.15 ) Customer usage and other factors 123 0.15 Customer-elected rate impacts (64 ) (0.08 ) Impact of 2023 Virginia legislation (155 ) (0.19 ) Rider equity return 146 0.18 Storm damage and restoration costs 12 0.01 Depreciation and amortization (27 ) (0.03 ) Renewable energy investment tax credits (17 ) (0.02 ) Interest expense, net (38 ) (0.05 ) Other (75 ) (0.09 ) Share dilution — (0.03 ) Change in net income contribution $ (221 ) $ (0.30 ) 72 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 21 $ 0.03 Customer usage and other factors 25 0.03 Customer-elected rate impacts 13 0.02 Base rate case impacts (41 ) (0.05 ) Rider equity return 63 0.08 Storm damage and service restoration (17 ) (0.02 ) Planned outage costs (12 ) (0.01 ) Depreciation and amortization 19 0.02 Renewable energy investment tax credits 11 0.01 Salaries, wages and benefits & administrative costs 28 0.03 Interest expense, net (14 ) (0.02 ) Other (54 ) (0.07 ) Share dilution — (0.05 ) Change in net income contribution $ 42 $ — Dominion Energy South Carolina Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations: Year Ended December 31, 2023 % Change 2022 % Change 2021 Electricity delivered (million MWh) 21.9 (5 ) % 23.0 3 % 22.4 Electricity supplied (million MWh) 23.0 (5 ) 24.1 3 23.5 Degree days (electric and gas distribution service areas): Cooling 725 (5 ) 767 (11 ) 859 Heating 917 (29 ) 1,294 1 1,280 Average electric distribution customer accounts (thousands) 790 2 777 1 766 Gas distribution throughput (bcf): Sales 66 (3 ) 68 (6 ) 72 Average gas distribution customer accounts (thousands) 443 4 427 4 412 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution: 2023 VS. 2022 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ (34 ) $ (0.04 ) Customer usage and other factors 11 0.01 Customer-elected rate impacts (37 ) (0.04 ) Base rate case & Natural Gas Rate Stabilization Act impacts 5 0.01 Capital cost rider (8 ) (0.01 ) Gains on sales of property (32 ) (0.04 ) Depreciation and amortization (18 ) (0.02 ) Interest expense, net (25 ) (0.03 ) Other 10 — Share dilution — — Change in net income contribution $ (128 ) $ (0.16 ) 73 2022 VS. 2021 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 21 $ 0.03 Customer usage and other factors 38 0.05 Customer-elected rate impacts 14 0.02 Base rate case & Natural Gas Rate Stabilization Act impacts 22 0.03 Capital cost rider (8 ) (0.01 ) Gains on sales of property 17 0.02 Depreciation and amortization (15 ) (0.02 ) Interest expense, net (16 ) (0.02 ) Other (5 ) (0.02 ) Share dilution — (0.01 ) Change in net income contribution $ 68 $ 0.07 Contracted Energy Presented below are selected operating statistics related to Contracted Energy’s operations: Year Ended December 31, 2023 % Change 2022 % Change 2021 Electricity supplied (million MWh) 14.8 (17 ) % 17.8 (14 ) % 20.8 Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution: 2023 VS. 2022 Increase (Decrease) Amount EPS (millions, except EPS) Margin $ 83 $ 0.10 Planned Millstone outages (1)(2) (111 ) (0.13 ) Unplanned Millstone outages (1) (52 ) (0.06 ) Depreciation and amortization 14 0.02 Other (23 ) (0.04 ) Share dilution — — Change in net income contribution $ (89 ) $ (0.11 ) (1) Includes earnings impact from outage costs and lower energy margins.
Dominion Energy Reliability Investment SM Program Dominion Energy has an effective 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 Investment SM . The registration limits the principal amount that may be outstanding at any one time to $1.0 billion.
Dominion Energy Reliability Investment SM Program Dominion Energy has an effective 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 Investment SM . The registration statement limits the principal amount that may be outstanding at any one time to $1.0 billion.
Dominion Energy determines the expected long-term rates of return on plan assets for pension plans and other postretirement benefit plans by using a combination of: • Expected inflation and risk-free interest rate assumptions; • Historical return analysis to determine long-term historic returns as well as historic risk premiums for various asset classes; • Expected future risk premiums, asset classes’ volatilities and correlations; • Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and • Investment allocation of plan assets.
Dominion Energy determines the expected long-term rates of return on plan assets for pension plans and other postretirement benefit plans by using a combination of: • Expected inflation and risk-free interest rate assumptions; • Historical return analysis to determine long-term historic returns as well as historic risk premiums for various asset classes; • Expected future risk premiums, asset classes’ volatilities and correlations; 61 • Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and • Investment allocation of plan assets.
These increases were partially offset by: • A $155 million decrease from the sale of non-wholly-owned nonregulated solar facilities; • A $80 million decrease as a result of the contribution of certain nonregulated gas retail energy contracts to Wrangler; • A $55 million decrease reflecting a reduction in base rates associated with the settlement of the 2021 Triennial Review; • A $49 million decrease from the sale of Hope; • A $26 million decrease from a planned outage at Millstone; and • A $20 million decrease associated with storm damage primarily from winter storms in Virginia.
These increases were partially offset by: • A $155 million decrease from the sale of non-wholly-owned nonregulated solar facilities; • An $80 million decrease as a result of the contribution of certain nonregulated gas retail energy contracts to Wrangler; • A $55 million decrease reflecting a reduction in base rates associated with the settlement of the 2021 Triennial Review; • A $49 million decrease from the sale of Hope; • A $26 million decrease from a planned outage at Millstone; and • A $20 million decrease associated with storm damage primarily from winter storms in Virginia.
These agreements contain customary covenants that, in the event of default, could result in the acceleration of principal and interest payments; restrictions on distributions related to capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments; and in some cases, the termination of credit commitments unless a waiver of such requirements is agreed to by the lenders/security holders.
These agreements contain customary covenants that, in the event of default, could result in the acceleration of 79 principal and interest payments; restrictions on distributions related to capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments; and in some cases, the termination of credit commitments unless a waiver of such requirements is agreed to by the lenders/security holders.
The long-term strategic target asset allocation for Dominion Energy’s pension funds is 26% U.S. equity, 19% non-U.S. equity, 32% fixed income, 3% real assets and 20% other alternative investments, such as private equity investments. 62 Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies.
The long-term strategic target asset allocation for Dominion Energy’s pension funds is 26% U.S. equity, 19% non-U.S. equity, 32% fixed income, 3% real assets and 20% other alternative investments, such as private equity investments. Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies.
For example, estimates of future cash flows would contemplate factors which may change over time, such as the expected use of the asset or underlying assets of equity method investees, including future production and sales levels, expected 61 fluctuations of prices of commodities sold and consumed and expected proceeds from dispositions.
For example, estimates of future cash flows would contemplate factors which may change over time, such as the expected use of the asset or underlying assets of equity method investees, including future production and sales levels, expected fluctuations of prices of commodities sold and consumed and expected proceeds from dispositions.
Long-Term Debt Sustainability Revolving Credit Facility Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which matures in 2024 and bears interest at a variable rate. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives.
Long-Term Debt Sustainability Revolving Credit Facility Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which matures in June 2024 and bears interest at a variable rate. The facility offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives.
When a long-lived asset’s carrying amount exceeds the undiscounted estimated future cash flows associated with the asset, the asset is considered impaired to the extent that the asset’s fair value is less than its carrying amount.
When a long-lived asset’s carrying amount exceeds the undiscounted estimated future cash flows associated with the asset, the asset is considered impaired to the extent that the asset’s fair value is less than its 60 carrying amount.
The 2022, 2021 and 2020 annual test did not result in the recognition of any goodwill impairment. In general, Dominion Energy estimates the fair value of its reporting units by using a combination of discounted cash flows and other valuation techniques that use multiples of earnings for peer group companies and analyses of recent business combinations involving peer group companies.
The 2023, 2022 and 2021 annual test did not result in the recognition of any goodwill impairment. In general, Dominion Energy estimates the fair value of its reporting units by using a combination of discounted cash flows and other valuation techniques that use multiples of earnings for peer group companies and analyses of recent business combinations involving peer group companies.
In 2022, Dominion Energy determined that its nonregulated solar generation assets within Contracted Assets were impaired. The estimates of future cash flows and selection of a discount rate are considered to be critical assumptions. A 10% decrease in projected future pre-tax cash flows would have resulted in a $69 million increase to the impairment charge recorded.
In 2022, Dominion Energy determined that its nonregulated solar generation assets within Contracted Energy were impaired. The estimates of future cash flows and selection of a discount rate are considered to be critical assumptions. A 10% decrease in projected future pre-tax cash flows would have resulted in a $52 million increase to the impairment charge recorded.
A description of Dominion Energy’s primary available sources of short-term liquidity follows. 74 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.
A description of Dominion Energy’s primary available sources of short-term liquidity follows. 76 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.
Performing an impairment test on long-lived assets and equity method investments involves judgment in areas such as identifying if circumstances indicate an impairment may exist, identifying and grouping affected assets in the case of long-lived assets, and developing the undiscounted and discounted estimated future cash flows (used to estimate fair value in the absence of a market-based value) associated with the asset, including probability weighting such cash flows to reflect expectations about possible variations in their amounts or timing, expectations about the operations of the long-lived assets and equity method investments and the selection of an appropriate discount rate.
Performing an impairment test on long-lived assets involves judgment in areas such as identifying if circumstances indicate an impairment may exist, identifying and grouping affected assets in the case of long-lived assets, and developing the undiscounted and discounted estimated future cash flows (used to estimate fair value in the absence of a market-based value) associated with the asset, including probability weighting such cash flows to reflect expectations about possible variations in their amounts or timing, expectations about the operations of the long-lived assets and the selection of an appropriate discount rate.
At December 31, 2022, these restrictions did not have a significant impact on Dominion Energy’s ability to pay dividends on its common or preferred stock or meet its other cash obligations. See Note 21 to the Consolidated Financial Statements for a description of such restrictions and any other restrictions on Dominion Energy’s ability to pay dividends.
At December 31, 2023, these restrictions did not have a significant impact on Dominion Energy’s ability to pay dividends on its common or preferred stock or meet its other cash obligations. See Note 21 to the Consolidated Financial Statements for a description of such restrictions and any other restrictions on Dominion Energy’s ability to pay dividends.
Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors. At December 31, 2022, Dominion Energy had $920 million of available capacity under this authorization.
Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors. At December 31, 2023, Dominion Energy had $920 million of available capacity under this authorization.
For 2023, the expected long-term rate of return for other postretirement benefit cost assumption is 8.35%. Dominion Energy determines discount rates from analyses of AA/Aa rated bonds with cash flows matching the expected payments to be made under its plans.
For 2024, the expected long-term rate of return for other postretirement benefit cost assumption is 8.35%. Dominion Energy determines discount rates from analyses of AA/Aa rated bonds with cash flows matching the expected payments to be made under its plans.
(4) The five largest counterparty exposures, combined, for this category represented approximately 3% of the total net credit exposure. Fuel and Other Purchase Commitments Dominion Energy is party to various contracts for fuel and purchased power commitments related to both its regulated and nonregulated operations.
(4) The five largest counterparty exposures, combined, for this category represented approximately 6% of the total net credit exposure. Fuel and Other Purchase Commitments Dominion Energy is party to various contracts for fuel and purchased power commitments related to both its regulated and nonregulated operations.
A 0.25% increase in the discount rate would have resulted in a $13 million increase to the impairment charge recorded. See Note 10 to the Consolidated Financial Statements for further information concerning the impairment related to certain of Dominion Energy’s nonregulated solar generation assets.
A 0.25% increase in the discount rate would have resulted in a $9 million increase to the impairment charge recorded. See Note 10 to the Consolidated Financial Statements for further information concerning the impairment related to certain of Dominion Energy’s nonregulated solar generation assets.
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 Sheets at December 31, 2022.
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 Sheets at December 31, 2023.
In January 2023, Dominion Energy entered into a $2.5 billion 364-Day term loan facility which bears interest at a variable rate and will mature in January 2024 with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes.
In January 2023, Dominion Energy entered into a $2.5 billion 364-day term loan facility which bears interest at a variable rate and was scheduled to mature in January 2024 with the proceeds to be used to repay existing long-term debt and short-term debt upon maturity and for other general corporate purposes.
For 2023, the expected long-term rate of return for the pension cost assumption ranged from 7.00% to 8.35% for Dominion Energy’s plans held as of December 31, 2022. Dominion Energy calculated its other postretirement benefit cost using an expected long-term rate of return on plan assets assumption of 8.35% for 2022, 8.45% for 2021 and 8.50% for 2020.
For 2024, the expected long-term rate of return for the pension cost assumption ranged from 7.00% to 8.35% for Dominion Energy’s plans held as of December 31, 2023. Dominion Energy calculated its other postretirement benefit cost using an expected long-term rate of return on plan assets assumption of 8.35% for 2023, 8.35% for 2022 and 8.45% for 2021.
Dominion Energy’s planned growth expenditures are subject to approval by the Board of Directors as well as potentially by regulatory bodies based on the individual project and are expected to include significant investments in support of its clean energy profile. See Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina and Contracted Assets in Item 1.
Dominion Energy’s planned growth expenditures are subject to approval by the Board of Directors as well as potentially by regulatory bodies based on the individual project and are expected to include significant investments in support of its clean energy profile. See Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy in Item 1.
Positions taken by an entity in its income tax returns that are recognized in the financial statements must satisfy a more-likely-than-not recognition threshold, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. At December 31, 2022 and 2021, Dominion Energy had $117 million and $128 million, respectively, of unrecognized tax benefits.
Positions taken by an entity in its income tax returns that are recognized in the financial statements must satisfy a more-likely-than-not recognition threshold, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. At December 31, 2023 and 2022, Dominion Energy had $110 million and $117 million, respectively, of unrecognized tax benefits.
Other income decreased 89%, primarily due to net investment losses in 2022 compared to net investment gains in 2021 on nuclear decommissioning trust funds ($1.1 billion), partially offset by an increase in non-service components of pension and other postretirement employee benefit plan credits ($109 million) and the absence of charges associated with the settlement of the South Carolina electric base rate case ($18 million).
Other income decreased 90%, primarily due to net investment losses in 2022 compared to net investment gains in 2021 on nuclear decommissioning trust funds ($1.1 billion), partially offset by an increase in non-service components of pension and other postretirement employee benefit plan credits ($100 million) and the absence of charges associated with the settlement of the South Carolina electric base rate case ($18 million).
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, 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 current pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in our 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 announced in November 2022; • 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, transportation and storage 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; 57 • Risks associated with entities in which Dominion Energy shares ownership with third parties, 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; • Changes in future levels of domestic and international natural gas production, supply or consumption; • Impacts to Dominion Energy’s noncontrolling interest in Cove Point from fluctuations in future volumes of LNG imports or exports from the U.S. and other countries worldwide or demand for, purchases of, and prices related to natural gas or LNG; • • 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 develop and 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; • 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 pipeline and 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; • 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, changes in supplies of natural gas delivered to Dominion Energy’s pipeline system, 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; • 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, including matters acquired in the SCANA Combination; • Counterparty credit and performance risk; 58 • 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.
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, 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 announced in November 2022; • 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, transportation and storage 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, 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; 56 • Changes in future levels of domestic and international natural gas production, supply or consumption; • 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 develop and 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; • 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 pipeline and 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; • 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, changes in supplies of natural gas delivered to Dominion Energy’s pipeline system, 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; • 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; • The expected timing and likelihood of the completion of any or all of the East Ohio, PSNC and Questar Gas Transactions, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals; • The expected timing and likelihood of the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals; • Adverse outcomes in litigation matters or regulatory proceedings; • Counterparty credit and performance risk; 57 • 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.
As of December 31, 2022, there have been no events of default under Dominion Energy’s covenants. 77 Common Stock, Preferred Stock and Other Equity Securities Issuances of Equity Securities Dominion Energy maintains Dominion Energy Direct® and a number of employee savings plans through which contributions may be invested in Dominion Energy’s common stock.
As of December 31, 2023, there have been no events of default under Dominion Energy’s covenants. Common Stock, Preferred Stock and Other Equity Securities Issuances of Equity Securities Dominion Energy maintains Dominion Energy Direct® and a number of employee savings plans through which contributions may be invested in Dominion Energy’s common stock.
Losses on sales of assets increased $318 million, primarily due to a loss associated with the sale of Kewaunee ($649 million) and the absence of gains on the sale of nonregulated retail energy marketing assets ($87 million), partially offset by the absence of a net loss on the sales of non-wholly-owned nonregulated solar facilities ($211 million), a gain on the contribution of certain privatization operations to Dominion Privatization ($155 million), a gain on the transfer of certain non-utility and utility property in South Carolina ($20 million) and a gain on the sale of certain utility property in South Carolina ($20 million).
Losses on sales of assets increased 3%, primarily due to a loss associated with the sale of Kewaunee ($649 million) and the absence of gains on the sale of nonregulated retail energy marketing assets ($87 million), partially offset by the absence of a net loss on the sales of non-wholly-owned nonregulated solar facilities ($513 million), a gain on the contribution of certain privatization operations to Dominion Privatization ($155 million), a gain on the transfer of certain non-utility and utility property in South Carolina ($20 million) and a gain on the sale of certain utility property in South Carolina ($20 million).
Credit ratings and outlooks as of February 17, 2023 are as follows: Fitch Moody's Standard & Poor's Dominion Energy Issuer BBB+ Baa2 BBB+ Senior unsecured debt securities BBB+ Baa2 BBB Junior subordinated notes BBB Baa3 BBB Enhanced junior subordinated notes BBB- Baa3 BBB- Preferred stock BBB- Ba1 BBB- Commercial paper F2 P-2 A-2 Outlook Stable Stable Stable A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating.
Credit ratings and outlooks as of February 16, 2024 are as follows: Fitch Moody’s Standard & Poor’s Dominion Energy Issuer BBB+ Baa2 BBB+ Senior unsecured debt securities BBB+ Baa2 BBB Junior subordinated notes BBB Baa3 BBB Enhanced junior subordinated notes BBB- Baa3 BBB- Preferred stock BBB- Ba1 BBB- Commercial paper F2 P-2 A-2 Outlook Stable Stable Negative A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating.
Dominion Energy calculated its pension cost using an expected long-term rate of return on plan assets assumption that ranged from 7.00% to 8.35% for 2022, 7.00% to 8.45% for 2021 and 7.00% to 8.60% for 2020.
Dominion Energy calculated its pension cost using an expected long-term rate of return on plan assets assumption that ranged from 7.00% to 8.35% for 2023, 7.00% to 8.35% for 2022 and 7.00% to 8.45% for 2021.
At December 31, 2022, a 0.25% increase in cost escalation rates would have resulted in an approximate $370 million increase in Dominion Energy’s nuclear decommissioning AROs. Income Taxes Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities.
At December 31, 2023, a 0.25% increase in cost escalation rates would have resulted in an approximate $390 million increase in Dominion Energy’s nuclear decommissioning AROs. Income Taxes Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities.
Pending additional guidance, the alternative minimum tax is not expected to have an effect on the assessment of the realizability of Dominion Energy’s deferred tax assets or a material impact on Dominion Energy’s future results of operations or cash flows. 82
Pending final guidance, the alternative minimum tax is not expected to have an effect on the assessment of the realizability of Dominion Energy’s deferred tax assets or a material impact on Dominion Energy’s future results of operations or cash flows.
They include a maximum debt to total capital ratio, which is also included in Dominion Energy’s Sustainability Revolving Credit Agreement entered into in 2021 and 364-Day term loan facility entered into in January 2023, and cross-default provisions.
They include a maximum debt to total capital ratio, which is also included in Dominion Energy’s Sustainability Revolving Credit Agreement entered into in 2021 and the 364-day term loan facilities entered into in January 2023 and October 2023, and cross-default provisions.
FUTURE ISSUES AND OTHER MATTERS See Item 1. Business and Notes 13 and 23 to the Consolidated Financial Statements for additional information on various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows.
Business and Notes 13 and 23 to the Consolidated Financial Statements for additional information on various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows.
Total estimated costs for such commitments at December 31, 2022 are presented in the table below.
Total estimated costs for such commitments at December 31, 2023 are presented in the table below.
As of December 31, 2022, the calculated total debt to total capital ratio, pursuant to the terms of the agreements, was as follows: Company Maximum Allowed Ratio Actual Ratio (1) Dominion Energy 67.5 % 59.7 % (1) Indebtedness as defined by the agreements excludes certain junior subordinated notes reflected as long-term debt as well as AOCI reflected as equity in the Consolidated Balance Sheets.
As of December 31, 2023, the calculated total debt to total capital ratio, pursuant to the terms of the agreements, was as follows: Company Maximum Allowed Ratio Actual Ratio (1) Dominion Energy 67.5 % 61.6 % (1) Indebtedness as defined by the agreements excludes certain junior subordinated notes reflected as long-term debt as well as AOCI reflected as equity in the Consolidated Balance Sheets.
Income tax expense decreased 52%, primarily due to lower pre-tax income ($182 million) and higher investment tax credits ($66 million), partially offset by the recognition of an intercompany gain related to the transfer and subsequent contribution of existing 68 privatization operations in Virginia to Dominion Privatization ($34 million) and the absence of the benefit from a state legislative change ($16 million).
Income tax expense decreased 34%, primarily due to lower pre-tax income ($182 million) and higher investment tax credits ($11 million), partially offset by the recognition of a deferred intercompany gain related to the transfer and subsequent contribution of existing privatization operations in Virginia to Dominion Privatization ($34 million), and the absence of the benefit of a state legislative change ($16 million).
The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At December 31, 2022, Dominion Energy’s Consolidated Balance Sheets include $347 million presented within short-term debt, with a weighted-average interest rate of 4.24%.
The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At December 31, 2023, Dominion Energy’s Consolidated Balance Sheets include $409 million presented within short-term debt, with a weighted-average interest rate of 5.50%.
See Note 11 to the Consolidated Financial Statements for additional information. Use of Estimates in Long-Lived Asset and Equity Method Investment Impairment Testing Impairment testing for an individual or group of long-lived assets, including intangible assets with definite lives, and equity method investments is required when circumstances indicate those assets may be impaired.
See Notes 2 and 11 to the Consolidated Financial Statements for additional information. Use of Estimates in Long-Lived Asset Impairment Testing Impairment testing for an individual or group of long-lived assets, including intangible assets with definite lives, is required when circumstances indicate those assets may be impaired.
Dominion Energy’s AROs include a significant balance related to the future decommissioning of its nonregulated and utility nuclear facilities. These nuclear decommissioning AROs are reported in Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Assets. At December 31, 2022 and 2021, Dominion Energy’s nuclear decommissioning AROs totaled $1.9 billion and $2.0 billion, respectively.
Dominion Energy’s AROs include a significant balance related to the future decommissioning of its nonregulated and utility nuclear facilities. These nuclear decommissioning AROs are reported in Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy. At both December 31, 2023 and 2022, Dominion Energy’s nuclear decommissioning AROs totaled $1.9 billion.
The following table illustrates the effect on cost of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant: Increase in 2022 Net Periodic Cost Change in Actuarial Assumptions Pension Benefits Other Postretirement Benefits (millions, except percentages) Discount rate (0.25)% $ 17 $ — Long-term rate of return on plan assets (0.25)% 27 6 Health care cost trend rate 1% N/A 9 In addition to the effects on cost, a 0.25% decrease in the discount rate would increase Dominion Energy’s projected pension benefit obligation at December 31, 2022 by $215 million and its accumulated postretirement benefit obligation at December 31, 2022 by $26 million, while a 1.00% increase in the healthcare cost trend rate would increase its accumulated postretirement benefit obligation at December 31, 2022 by $75 million.
The following table illustrates the effect on cost of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant: Increase (Decrease) in 2023 Net Periodic Cost Change in Actuarial Assumptions Pension Benefits Other Postretirement Benefits (millions, except percentages) Discount rate (0.25)% $ (5 ) $ 2 Long-term rate of return on plan assets (0.25)% 26 5 Health care cost trend rate 1% N/A 12 In addition to the effects on cost, a 0.25% decrease in the discount rate would increase Dominion Energy’s projected pension benefit obligation at December 31, 2023 by $224 million and its accumulated postretirement benefit obligation at December 31, 2023 by $26 million, while a 1.00% increase in the healthcare cost trend rate would increase its accumulated postretirement benefit obligation at December 31, 2023 by $72 million.
See Note 18 to the Consolidated Financial Statements for additional information regarding scheduled maturities and other cancellations of Dominion Energy’s long-term debt, including related average interest rates. Remarketing of Long-Term Debt In April 2022, Virginia Power remarketed two series of tax-exempt bonds, with an aggregate outstanding principal of approximately $138 million to new investors.
See Note 18 to the Consolidated Financial Statements for additional information regarding scheduled maturities and other cancellations of Dominion Energy’s long-term debt, including related average interest rates. Remarketing of Long-Term Debt In June 2023, Virginia Power remarketed three series of tax-exempt bonds, with an aggregate outstanding principal of $160 million to new investors.
The five largest counterparty exposures, combined, for this category represented approximately 51% of the total net credit exposure. (2) The five largest counterparty exposures, combined, for this category represented approximately 6% of the total net credit exposure. (3) The five largest counterparty exposures, combined, for this category represented approximately 21% of the total net credit exposure.
The five largest counterparty exposures, combined, for this category represented approximately 54% of the total net credit exposure. (2) The five largest counterparty exposures, combined, for this category represented approximately 3% of the total net credit exposure. (3) The five largest counterparty exposures, combined, for this category represented approximately 11% of the total net credit exposure.
Dominion Energy’s healthcare cost trend rate assumption as of December 31, 2022 was 6.25% and is expected to gradually decrease to 5.00% by 2026-2027 and continue at that rate for years thereafter.
Dominion Energy’s healthcare cost trend rate assumption as of December 31, 2023 was 7.00% and is expected to gradually decrease to 5.00% by 2031 and continue at that rate for years thereafter.
Depreciation and amortization increased 27%, primarily due to an increase for amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($183 million), an increase due to various projects being placed into service ($144 million) and an increase in RGGI-related amortization ($128 million), which except for the suspended period of Rider RGGI is offset in operating revenue and does not impact net income, partially offset by depreciation rates revised in the first quarter of 2022 ($82 million).
Depreciation and amortization increased 15%, primarily due to various projects being placed into service ($183 million), an increase for amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($183 million), and an increase in RGGI-related amortization ($128 million), which except for the suspended period of Rider RGGI is offset in operating revenue and does not impact net income, partially offset by depreciation rates revised in the first quarter of 2022 at Virginia Power ($82 million) and a decrease from the sale of non-wholly-owned nonregulated solar facilities ($45 million).
The discount rates used to calculate pension cost and other postretirement benefit cost ranged from 3.06% to 3.19% for pension plans and 3.04% to 5.03% for other postretirement benefit plans in 2022, ranged from 2.73% to 3.29% for pension plans and 2.69% to 2.80% for other postretirement benefit plans in 2021 and ranged from 2.77% to 3.63% for pension plans and 3.07% to 3.52% for other postretirement benefit plans in 2020.
The discount rates used to calculate pension cost and other postretirement benefit cost ranged from 5.65% to 5.75% for pension plans and 5.69% to 5.70% for other postretirement benefit plans in 2023, ranged from 3.06% to 3.19% for pension plans and 3.04% to 5.03% for other postretirement benefit plans in 2022 and ranged from 2.73% to 3.29% for pension plans and 2.69% to 2.80% for other postretirement benefit plans in 2021.
Impairment of assets and other charges (benefits) increased $826 million, primarily reflecting: • The absence of a benefit from the establishment of a regulatory asset associated with the early retirement of certain coal- and oil-fired generating units associated with the settlement of the 2021 Triennial Review ($549 million); • A charge in connection with a comprehensive settlement agreement for Virginia fuel expenses ($191 million); • A charge for RGGI compliance costs deemed recovered through base rates ($180 million); • Dismantling costs associated with the early retirement of certain electric generation facilities ($167 million); and • A charge for the write-off of inventory ($19 million); partially offset by • The absence of charges for CCRO benefits provided to retail electric customers in Virginia associated with Virginia Power’s 2021 Triennial Review ($188 million); and • The absence of a charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($77 million).
Impairment of assets and other charges (benefits) increased $826 million, primarily reflecting: • The absence of a benefit from the establishment of a regulatory asset associated with the early retirement of certain coal- and oil-fired generating units associated with the settlement of the 2021 Triennial Review ($549 million); • A charge in connection with a comprehensive settlement agreement for Virginia fuel expenses ($191 million); • A charge for RGGI compliance costs deemed recovered through base rates ($180 million); • Dismantling costs associated with the early retirement of certain electric generation facilities ($167 million); and • A charge for the write-off of inventory ($19 million).
The bonds will bear interest at a coupon rate of 3.80% until October 2024, after which they will bear interest at a market rate to be determined at that time. In 2023, Dominion Energy expects to remarket approximately $160 million of its tax-exempt bonds.
All three series of bonds will bear interest at a coupon of 3.65% until October 2027, after which they will bear interest at a market rate to be determined at that time. In 2024, Dominion Energy expects to remarket approximately $270 million of its tax-exempt bonds.
As a result of the comprehensive business review announced in November 2022, Dominion Energy has not completed an update to its previous plan and, as discussed in Future Issues and Other Matters , the implementation of the 78 recommendations could result in a material adjustment to capital allocations.
As a result of the comprehensive business review announced in November 2022, Dominion Energy has not completed a long-term capital expenses plan and, as discussed in Future Issues and Other Matters , the implementation of the recommendations resulting from the business review could result in a material adjustment to capital allocations.
Dominion Energy’s commercial paper and letters of credit outstanding, as well as capacity available under its credit facility were as follows: Facility Limit Outstanding Commercial Paper (1) Outstanding Letters of Credit Facility Capacity Available (millions) At December 31, 2022 Joint revolving credit facility (2) $ 6,000 $ 3,076 $ 202 $ 2,722 (1) The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s credit facility was 4.73% at December 31, 2022.
Dominion Energy’s commercial paper and letters of credit outstanding, as well as capacity available under its credit facility were as follows: Facility Limit Outstanding Commercial Paper (1) Outstanding Letters of Credit Facility Capacity Available (millions) At December 31, 2023 Joint revolving credit facility (2) $ 6,000 $ 3,547 $ 16 $ 2,437 (1) The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s credit facility was 5.69% at December 31, 2023.
Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, management seeks indicative price information from external sources, including broker quotes and industry publications.
In the absence of actively-quoted market prices, management seeks indicative price information from external sources, including broker quotes and industry publications.
Dominion Energy also maintains sales agency agreements to effect sales under an at-the-market program. Under the sales agency agreements, Dominion Energy may, from time to time, offer and sell shares of its common stock through the sales agents or enter into one or more forward sale agreements with respect to shares of its common stock.
Under the sales agency agreements, Dominion Energy was able, from time to time, to offer and sell shares of its common stock through the sales agents or enter into one or more forward sale agreements with respect to shares of its common stock.
In 2021, this primarily included $641 million of net income from discontinued operations, primarily associated with the Q-Pipe Group, a $64 million after-tax benefit for derivative mark-to-market changes, $62 million of after-tax charges for workplace realignment, primarily related to a corporate office lease termination, and $32 million of after-tax charges for merger and integration-related costs associated with the SCANA Combination.
In 2021, this primarily included $1.4 billion net income from discontinued operations, primarily associated with the Q-Pipe Group, operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, a $64 million after-tax benefit for derivative mark-to-market changes, $62 million of after-tax charges for workplace realignment, primarily related to a corporate office lease termination and $32 million of after-tax charges for merger and integration-related costs associated with the SCANA Combination.
These decreases were partially offset by the absence of charges associated with the settlement of the South Carolina electric base rate case, increased unrealized gains on economic hedging activities and the absence of a net loss on the sales of non-wholly-owned nonregulated solar facilities.
These decreases were partially offset by the absence of charges associated with the settlement of the South Carolina electric base rate case and increased unrealized gains on economic hedging activities.
While the ultimate impacts cannot be estimated until the review is completed, which is expected in 2023, implementation of recommendations resulting from the business review could have a material impact on Dominion Energy's future results of operations, financial condition and/or cash flows.
The implementation of recommendations resulting from the business review, including the items discussed above, is expected to have a material impact on Dominion Energy's future results of operations, financial condition and/or cash flows; however, the full impacts cannot be estimated until the review is completed.
Virginia Power has not yet committed to building a new nuclear unit at North Anna. Federal Income Tax Laws Inflation Reduction Act The IRA imposes a 15% alternative minimum tax on GAAP net income, as adjusted for certain items, of corporations in excess of $1 billion, for tax years beginning after December 31, 2022.
Federal Income Tax Laws Inflation Reduction Act The IRA imposes a 15% alternative minimum tax on GAAP net income, as adjusted for certain items, of corporations in excess of $1 billion, for tax years beginning after December 31, 2022.
These factors include short-term borrowing and short-term investment rates, the spread over these short-term rates at which Dominion Energy can issue commercial paper, balance sheet impacts, the costs and fees of alternative collateral postings with these and other counterparties and overall liquidity management objectives.
These factors include short-term borrowing and short-term investment rates, the spread over these short-term rates at which Dominion Energy can issue commercial paper, balance sheet impacts, the costs and fees of alternative collateral postings with these and other counterparties and overall liquidity management objectives. 81 Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities.
These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In 2021, Dominion Energy began issuing new shares of common stock for these direct stock purchase plans. During 2022, Dominion Energy issued 2.4 million of such shares and received proceeds of $179 million.
These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In 2021, Dominion Energy began issuing new shares of common stock for these direct stock purchase plans. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans.
Dominion Energy selected a discount rate ranging from 5.65% to 5.75% for pension plans and 5.69% to 5.70% for other postretirement benefit plans for determining its December 31, 2022 projected benefit obligations.
Dominion Energy selected a discount rate ranging from 5.37% to 5.47% for pension plans and 5.40% to 5.42% for other postretirement benefit plans for determining its December 31, 2023 projected benefit obligations.
There were no other tests performed in 2022 of long-lived assets or equity method investments which could have resulted in material impairments.
There were no tests performed in 2023 of long-lived assets which could have resulted in material impairments.
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.
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.
If Virginia Power decides to build a new unit, it would require a Combined Construction Permit and Operating License from the NRC, approval of the Virginia Commission and certain environmental permits and other approvals. In June 2017, the NRC issued the Combined Construction Permit and Operating License.
North Anna Virginia Power is considering the construction of a third nuclear unit at a site located at North Anna. If Virginia Power decides to build a new unit, it would require a Combined Construction Permit and Operating License from the NRC, approval of the Virginia Commission and certain environmental permits and other approvals.
If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable.
A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable.
Derivative contracts, with certain exceptions, are reported in the Consolidated Balance Sheets at fair value. The majority of investments held in Dominion Energy’s nuclear decommissioning and rabbi trusts and pension and other postretirement funds are also subject to fair value accounting. See Notes 6 and 22 to the Consolidated Financial Statements for further information on these fair value measurements.
The majority of investments held in Dominion Energy’s nuclear decommissioning and rabbi trusts and pension and other postretirement funds are also subject to fair value accounting. See Notes 6 and 22 to the Consolidated Financial Statements for further information on these fair value measurements. Fair value is based on actively-quoted market prices, if available.
See Note 22 to the Consolidated Financial Statements for additional information on Dominion Energy’s employee benefit plans.
See Note 22 to the Consolidated Financial Statements for additional information on Dominion Energy’s employee benefit plans. 62 New Accounting Standards See Note 2 to the Consolidated Financial Statements for a discussion of new accounting standards.
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.
Presented below is a summary of Dominion Energy’s credit exposure as of December 31, 2023 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.
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; and • Guarantees – See Note 23 to the Consolidated Financial Statements.
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.
Virginia Power Presented below is a summary of Virginia Power’s consolidated results: Year Ended December 31, 2022 $ Change 2021 $ Change 2020 (millions) Net income $ 1,215 $ (497 ) $ 1,712 $ 691 $ 1,021 Overview 2022 VS. 2021 Net income decreased 29%, primarily due to a decrease in net investment earnings on nuclear decommissioning trust funds, a net decrease associated with the impacts of the 2021 Triennial Review, a charge for RGGI compliance costs deemed recovered through base rates, a charge in connection with a comprehensive settlement agreement for Virginia fuel expenses and dismantling costs associated with the early retirement of certain electric generation facilities.
Virginia Power Presented below is a summary of Virginia Power’s consolidated results: Year Ended December 31, 2023 $ Change 2022 $ Change 2021 (millions) Net income $ 1,452 $ 340 $ 1,112 $ (550 ) $ 1,662 Overview 2023 VS. 2022 Net income increased 31%, primarily due to the absences of a charge for RGGI compliance costs deemed recovered through base rates and a charge in connection with a comprehensive settlement agreement for Virginia fuel expenses as well as an increase in net investment earnings on nuclear decommissioning trust funds, a decrease in storm damage and service restoration costs and a net decrease in dismantling costs associated with the early retirement of certain electric generation facilities, partially offset by a decrease in sales to electric utility customers attributable to weather and the impact of 2023 Virginia legislation. 2022 VS. 2021 Net income decreased 33%, primarily due to a decrease in net investment earnings on nuclear decommissioning trust funds, a net decrease associated with the impacts of the 2021 Triennial Review, a charge for RGGI compliance costs deemed recovered through base rates, a charge in connection with a comprehensive settlement agreement for Virginia fuel expenses and dismantling costs associated with the early retirement of certain electric generation facilities.
These analyses are generally based on: • Orders issued by regulatory commissions, legislation and judicial actions; • Past experience; • Discussions with applicable regulatory authorities and legal counsel; • Forecasted earnings; and • Considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters and unplanned outages of facilities.
These analyses are generally based on: • Orders issued by regulatory commissions, legislation and judicial actions; • Past experience; • Discussions with applicable regulatory authorities and legal counsel; • Estimated construction costs; • Forecasted earnings; and • Considerations around the likelihood of impacts from events such as unusual weather conditions, extreme weather events and other natural disasters and unplanned outages of facilities. 58 If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made.
Subsidiary Dividend Restrictions Certain of Dominion Energy’s subsidiaries may, from time to time, be subject to certain restrictions imposed by regulators or financing arrangements on their ability to pay dividends, or to advance or repay funds, to Dominion Energy.
See Note 19 to the Consolidated Financial Statements for a discussion of Dominion Energy’s outstanding preferred stock and associated dividend rates. Subsidiary Dividend Restrictions Certain of Dominion Energy’s subsidiaries may, from time to time, be subject to certain restrictions imposed by regulators or financing arrangements on their ability to pay dividends, or to advance or repay funds, to Dominion Energy.
Gross Credit Exposure Credit Collateral Net Credit Exposure (millions) Investment grade (1) $ 191 $ — $ 191 Non-Investment grade (2) 37 20 17 No external ratings: Internally rated—investment grade (3) 58 — 58 Internally rated—non-investment grade (4) 28 13 15 Total $ 314 $ 33 $ 281 79 (1) Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s.
Gross Credit Exposure Credit Collateral Net Credit Exposure (millions) Investment grade (1) $ 266 $ — $ 266 Non-Investment grade (2) 9 — 9 No external ratings: Internally rated—investment grade (3) 43 6 37 Internally rated—non-investment grade (4) 27 — 27 Total $ 345 $ 6 $ 339 (1) Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s.
Dominion Energy establishes a valuation allowance when it is more-likely-than-not that all or a portion of a deferred tax asset will not be realized.
Dominion Energy establishes a 59 valuation allowance when it is more-likely-than-not that all or a portion of a deferred tax asset will not be realized. At December 31, 2023 and 2022, Dominion Energy had established $130 million and $137 million, respectively, of valuation allowances.
Interest and related charges decreased 29%, primarily due to higher unrealized gains associated with freestanding derivatives ($511 million), higher premiums received on interest rate derivatives ($60 million), a decrease due to junior subordinated note repayments in 2021 ($52 million), benefits associated with the early redemption of certain securities in the third and fourth quarters of 2022 ($35 million) and the absence of charges associated with the early redemption of certain securities in the third quarter of 2021 ($23 million), partially offset by an increase from net debt issuances ($179 million), higher interest rates on commercial paper borrowings ($51 million), higher interest rates on variable rate debt and cash flow interest rate swaps ($29 million) and the absence of a benefit associated with the effective settlement of uncertain tax positions ($21 million).
Interest and related charges decreased 20%, primarily due to higher unrealized gains associated with freestanding derivatives ($270 million), higher premiums received on interest rate derivatives ($60 million), a decrease due to junior subordinated note repayments in 2021 ($52 million), benefits associated with the early redemption of certain securities in the third and fourth quarters of 2022 ($35 million) and the absence of charges associated with the early redemption of certain securities in the third quarter of 2021 ($23 million), partially offset by an increase from net debt issuances ($90 million), higher interest rates on commercial paper borrowings ($51 million), higher interest rates on variable rate debt and cash flow interest rate swaps ($41 million) and the absence of a benefit associated with the effective settlement of uncertain tax positions ($21 million). 67 Income tax expense increased $294 million, primarily due to the absence of investment tax credits recognized in connection with the sale of SBL Holdco and the 50% controlling interest in Four Brothers and Three Cedars ($392 million), tax expense on the sale of Hope’s stock ($90 million), the absence of benefits from the effective settlement of uncertain tax positions ($38 million), and a state legislative change ($21 million), partially offset by lower pre-tax income including lower state income tax benefits on pre-tax losses from nuclear decommissioning trusts and economic hedges ($236 million).
In May 2022, Dominion Energy borrowed $900 million with the proceeds used to support environmental sustainability and social investment initiatives ($450 million) and for general corporate purposes ($450 million). In June 2022, Dominion Energy repaid $450 million borrowed for general corporate purposes. At December 31, 2022, Dominion Energy had $450 million outstanding under this supplemental credit facility.
In October 2023, Dominion Energy repaid $450 million borrowed for general corporate purposes. At December 31, 2023, Dominion Energy had $450 million outstanding under this supplemental credit facility, borrowed to support environmental sustainability and social investment initiatives. Issuances and Borrowings of Long-Term Debt During 2023, Dominion Energy issued or borrowed the following long-term debt.
Other operations and maintenance increased 7%, primarily reflecting: • A $84 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; • A $51 million increase in storm damage and restoration costs primarily from winter storms in Virginia Power’s service territory; • A $46 million increase in bad debt expense; • A $46 million increase in materials and supplies expense primarily as a result of higher prices; • A $42 million increase in outage costs at Millstone ($26 million) and Virginia Power ($16 million); and • A $21 million increase in outside services.
Other operations and maintenance increased 6%, primarily reflecting: • An $84 million increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; • A $51 million increase in storm damage and restoration costs primarily from winter storms in Virginia Power’s service territory; • A $42 million increase in outage costs at Millstone ($26 million) and Virginia Power ($16 million); • A $36 million increase in materials and supplies expense primarily as a result of higher prices; • A $33 million increase in bad debt expense; and • An $18 million increase in outside services. 66 These increases were partially offset by: • The absence of a $44 million charge related to a revision in estimated recovery of spent nuclear fuel costs associated with the decommissioning of Kewaunee; and • A $31 million decrease in merger and integration-related costs associated with the SCANA Combination.
Impairment of assets and other charges increased $1.9 billion, primarily reflecting: • A charge associated with the impairment of certain nonregulated solar generation facilities ($1.5 billion); • The absence of a benefit from the establishment of a regulatory asset associated with the early retirement of certain coal- and oil-fired generating units associated with the settlement of the 2021 Triennial Review ($549 million); • A charge in connection with a comprehensive settlement agreement for Virginia fuel expenses ($191 million); • A charge for RGGI compliance costs deemed recovered through base rates at Virginia Power ($180 million); • Dismantling costs associated with the early retirement of certain electric generation facilities at Virginia Power ($167 million); and • A charge for the write-off of inventory ($40 million); partially offset by • The absence of charges associated with the settlement of the South Carolina electric base rate case ($249 million); • The absence of charges for CCRO benefits provided to retail electric customers in Virginia associated with Virginia Power’s 2021 Triennial Review ($188 million); • A decrease in charges associated with litigation acquired in the SCANA Combination ($97 million); • The absence of a charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($77 million); • The absence of a charge for corporate office lease termination ($62 million); and • The absence of a write-off of nonregulated retail software development assets ($20 million).
Impairment of assets and other charges increased $1.2 billion, primarily reflecting: • A charge associated with the impairment of certain nonregulated solar generation facilities ($829 million); • The absence of a benefit from the establishment of a regulatory asset associated with the early retirement of certain coal- and oil-fired generating units associated with the settlement of the 2021 Triennial Review ($549 million); • A charge in connection with a comprehensive settlement agreement for Virginia fuel expenses ($191 million); • A charge for RGGI compliance costs deemed recovered through base rates at Virginia Power ($180 million); • Dismantling costs associated with the early retirement of certain electric generation facilities at Virginia Power ($167 million); and • A charge for the write-off of inventory ($40 million).
Financing Cash Flows Net cash provided by Dominion Energy's financing activities increased $608 million primarily due to settlement of the stock purchase contract component of the 2019 Equity Units ($1.6 billion), higher net issuances of long-term debt ($927 million) and higher net supplemental credit facility borrowings ($450 million), partially offset by the redemption of the Series A Preferred Stock ($1.6 billion) in 2022 and the absence of the issuance of Series C Preferred Stock ($742 million) in 2021.
Financing Cash Flows Net cash provided by Dominion Energy’s financing activities decreased $2.4 billion primarily due to a $5.9 billion decrease due to net repayments of long-term debt in 2023 versus net issuances in 2022, a decrease in common stock issuance ($1.8 billion) including the absence of the settlement of the stock purchase contract component of the 2019 Equity Units in 2022 ($1.6 billion), lower net issuances of short-term debt ($576 million) and net repayment of credit facility borrowings ($450 million), partially offset by net borrowings on 364-day term loan facilities ($4.8 billion) and the absence of the redemption of Series A Preferred Stock in 2022 ($1.6 billion).
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 and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed 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, after-tax proceeds from the completion of the East Ohio, PSNC and Questar Gas Transactions remaining after the repayment of 364-day term loan facilities, after-tax proceeds from the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project and any borrowings made from 78 unused capacity of Dominion Energy’s credit facilities discussed above.
See Note 3 to the Consolidated Financial Statements for additional information. Employee Benefit Plans Dominion Energy sponsors noncontributory defined benefit pension plans and other postretirement benefit plans for eligible active employees, retirees and qualifying dependents.
This analysis is generally based on orders issued by regulatory commissions, past experience and discussions with applicable regulatory authorities and legal counsel. See Note 3 to the Consolidated Financial Statements for additional information. Employee Benefit Plans Dominion Energy sponsors noncontributory defined benefit pension plans and other postretirement benefit plans for eligible active employees, retirees and qualifying dependents.
At December 31, 2022 and 2021, Dominion Energy had established $138 million and $140 million, respectively, of valuation allowances. 60 Accounting for Derivative Contracts and Financial Instruments at Fair Value Dominion Energy uses derivative contracts such as physical and financial forwards, futures, swaps, options and FTRs to manage commodity, interest rate and/or foreign currency exchange rate risks of its business operations.
Accounting for Derivative Contracts and Financial Instruments at Fair Value Dominion Energy uses derivative contracts such as physical and financial forwards, futures, swaps, options and FTRs to manage commodity, interest rate and/or foreign currency exchange rate risks of its business operations. Derivative contracts, with certain exceptions, are reported in the Consolidated Balance Sheets at fair value.
These costs represent estimated minimum obligations for various purchased power and capacity agreements and actual costs may differ from amounts presented below depending on actual quantities purchased and prices paid. 2023 2024 2025 2026 2027 Total (millions) Purchased electric capacity for utility operations $ 71 $ 70 $ 70 $ 72 $ 73 $ 356 Fuel commitments for utility operations 1,669 995 599 185 184 3,632 Fuel commitments for nonregulated operations 198 133 46 37 50 464 Pipeline transportation and storage 668 587 489 427 376 2,547 Total $ 2,606 $ 1,785 $ 1,204 $ 721 $ 683 $ 6,999 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.
These costs represent estimated minimum obligations for various purchased power and capacity agreements and actual costs may differ from amounts presented below depending on actual quantities purchased and prices paid. 2024 (millions) Purchased electric capacity for utility operations $ 62 Fuel commitments for utility operations 1,103 Fuel commitments for nonregulated operations 157 Pipeline transportation and storage 591 Total $ 1,913 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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeNet 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 decrease in unrealized gains on debt investments of $106 million and $31 million for the years ended December 31, 2022 and 2021, respectively.
Biggest changeVirginia Power recorded, in AOCI and regulatory liabilities, a net increase in unrealized gains on debt investments of $66 million and a net decrease in unrealized gains on debt investments of $106 million for the years ended December 31, 2023 and 2022, respectively.
As of December 31, 2022, Dominion Energy and Virginia Power had $12.7 billion and $3.6 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding.
As of December 31, 2022, Dominion Energy and 85 Virginia Power had $12.7 billion and $3.6 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding.
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 or interest rates.
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.
Based on these credit policies and the Companies’ December 31, 2022 provision for credit losses, management believes that it is unlikely that a material adverse effect on the Companies’ financial position, results of operations or cash flows would occur as a result of counterparty nonperformance. 85
Based on these credit policies and the Companies’ December 31, 2023 provision for credit losses, management believes that it is unlikely that a material adverse effect on the Companies’ financial position, results of operations or cash flows would occur as a result of counterparty nonperformance. 87
A hypothetical 0.25% decrease in the assumed long-term rates of return on Dominion Energy’s plan assets would result in an increase in the following year's net periodic cost of $26 million and $27 million as of December 31, 2022 and 2021, respectively, for pension benefits and $5 million and $6 million as of December 31, 2022 and 2021, respectively, for other postretirement benefits. 84 Risk Management Policies The Companies have established operating procedures with corporate management to ensure that proper internal controls are maintained.
A hypothetical 0.25% decrease in the assumed long-term rates of return on Dominion Energy’s plan assets would result in an increase in the following year’s net periodic cost of $26 million as of both December 31, 2023 and 2022, for pension benefits and $5 million as of both December 31, 2023 and 2022, respectively, for other postretirement benefits. 86 Risk Management Policies The Companies have established operating procedures with corporate management to ensure that proper internal controls are maintained.
Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns (losses) of $(3.0) billion and $1.5 billion in 2022 and 2021, respectively, versus expected returns of $1.1 billion and $1.0 billion, respectively. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods.
Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns (losses) of $1.2 billion and $(3.0) billion in 2023 and 2022, respectively, versus expected returns of $1.0 billion and $1.1 billion, respectively. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods.
A hypothetical 10% increase in commodity prices would have resulted in a decrease of $52 million and $16 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of December 31, 2022 and 2021, respectively.
A hypothetical 10% increase in commodity prices would have resulted in a decrease of $62 million and $52 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of December 31, 2023 and 2022, respectively.
A hypothetical 10% increase in commodity prices would have resulted in a decrease of $25 million and $6 million in the fair value of Virginia Power’s commodity-based derivative instruments as of December 31, 2022 and 2021, respectively.
A hypothetical 10% increase in commodity prices would have resulted in a decrease of $24 million and $25 million in the fair value of Virginia Power’s commodity-based derivative instruments as of December 31, 2023 and 2022, respectively.
For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $14 million and less than $1 million decrease in earnings at December 31, 2022 and 2021, 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.
For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $5 million and $14 million decrease in earnings at December 31, 2023 and 2022, 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.
Virginia Power recognized net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $426 million and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $568 million for the years ended December 31, 2022 and 2021, respectively.
Virginia Power recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $448 million and net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $426 million for the years ended December 31, 2023 and 2022, respectively.
A hypothetical 10% increase in exchange rates would have resulted in a decrease of $284 million in the fair value of Dominion Energy’s foreign currency swaps at December 31, 2022.
A hypothetical 10% increase in exchange rates would have resulted in a decrease of $202 million and $284 million in the fair value of Dominion Energy’s foreign currency swaps at December 31, 2023 and 2022, respectively.
Dominion Energy recognized net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $888 million and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $1.1 billion for the years ended December 31, 2022 and 2021, respectively.
Dominion Energy recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $879 million and net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $888 million for the years ended December 31, 2023 and 2022, respectively.
A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $191 million and $111 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2021.
A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $120 million and $151 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2023.
As of December 31, 2021, Dominion Energy and 83 Virginia Power had $11.4 billion and $2.8 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding.
As of December 31, 2023, Dominion Energy and Virginia Power had $16.3 billion and $3.3 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding.
They also enter into interest rate sensitive derivatives, including interest rate swaps and interest rate lock agreements. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $37 million and $6 million decrease in earnings at December 31, 2022 and 2021, respectively.
For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $56 million and $37 million decrease in earnings at December 31, 2023 and 2022, 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 decrease in unrealized gains on debt investments of $196 million and $64 million for the years ended December 31, 2022 and 2021, respectively.
Dominion Energy recorded, in AOCI and regulatory liabilities, a net increase in unrealized gains on debt investments of $117 million and a net decrease in unrealized gains on debt investments of $196 million for the years ended December 31, 2023 and 2022, respectively.
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 December 31, 2022, Dominion Energy had €2.9 billion in aggregate notional amounts of these foreign currency forward purchase agreements outstanding.
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.
Added
As of December 31, 2023 and 2022, Dominion Energy had €2.1 billion and €2.9 billion, respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding.
Added
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.
Added
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.

Other D 10-K year-over-year comparisons