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What changed in Dominion Energy's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Dominion Energy's 2023 and 2024 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 2024 report.

+498 added−532 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-23)

Top changes in Dominion Energy's 2024 10-K

498 paragraphs added · 532 removed · 377 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

152 edited+48 added−72 removed135 unchanged
Biggest changeIf retail electric earnings exceed the authorized ROE established by the South Carolina Commission, retail electric rates may be subject to review and possible reduction, which may decrease DESC’s future earnings. Additionally, if the South Carolina Commission does not allow recovery of costs incurred in providing service on a timely basis, DESC’s future earnings could be negatively impacted.
Biggest changeAdditionally, if the South Carolina Commission does not allow recovery of costs incurred in providing service on a timely basis, DESC’s future earnings could be negatively impacted. Fuel costs are reviewed annually by the South Carolina Commission, as required by statute, and fuel rates are subject to revision in these annual fuel proceedings.
See Note 3 to the Consolidated Financial Statements for additional information. Hope In August 2022, Dominion Energy completed the sale of 100% of the equity interests in Hope to Ullico for $690 million in cash consideration, subject to customary closing adjustments. See Note 3 to the Consolidated Financial Statements for additional information.
Hope In August 2022, Dominion Energy completed the sale of 100% of the equity interests in Hope to Ullico for $690 million in cash consideration, subject to customary closing adjustments. See Note 3 to the Consolidated Financial Statements for additional information.
See Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Note 23 to the Consolidated Financial Statements for additional information. Properties For a listing of facilities, see Item 2. Properties.
See Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Note 23 to the Consolidated Financial Statements for additional information. Properties For a listing of facilities, see Item 2.
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.
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.
These resources and programs are designed not only to engage and retain talented employees but also to allow Dominion Energy to meet the needs of its customers in an ever-changing industry with a skilled workforce. OPERATING SEGMENTS Dominion Energy manages its daily operations through three primary operating segments: Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy.
These resources and programs are designed not only to engage and retain talented employees but also to allow Dominion Energy to meet the needs of its customers in an ever-changing industry with a skilled workforce. 12 OPERATING SEGMENTS Dominion Energy manages its daily operations through three primary operating segments: Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy.
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.
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, BOEM and other federal, state and local authorities.
Virginia Power manages a portfolio of natural gas transportation contracts (capacity) that provides for reliable natural gas deliveries to its gas turbine fleet, while minimizing costs. Virginia Power’s coal supply is obtained through long-term contracts and short-term spot agreements from domestic suppliers. Biomass— Virginia Power’s biomass supply is obtained through long-term contracts and short-term spot agreements from local suppliers.
Virginia Power manages a portfolio of natural gas transportation contracts (capacity) that provides for reliable natural gas deliveries to its gas turbine fleet, while minimizing costs. Virginia Power’s coal supply is obtained through long-term contracts and short-term spot agreements from domestic suppliers. 17 Biomass— Virginia Power’s biomass supply is obtained through long-term contracts and short-term spot agreements from local suppliers.
These can result in compliance and mitigation costs as well as potential adverse effects on project plans and schedules such that the Companies’ businesses may be materially affected. 31 ENVIRONMENTAL STRATEGY Dominion Energy is committed to providing reliable, affordable and increasingly clean energy every day.
These can result in compliance and mitigation costs as well as potential adverse effects on project plans and schedules such that the Companies’ businesses may be materially affected. ENVIRONMENTAL STRATEGY Dominion Energy is committed to providing reliable, affordable and increasingly clean energy every day.
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.
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.
Court of Appeals for the District of Columbia. In July 2023, the U.S. Court of Appeals for the District of Columbia remanded the authorization of SEEM to FERC for further proceedings. This matter is pending. 29 Nuclear Regulatory Commission All aspects of the operation and maintenance of the Companies’ nuclear power stations are regulated by the NRC.
Court of Appeals for the District of Columbia. In July 2023, the U.S. Court of Appeals for the District of Columbia remanded the authorization of SEEM to FERC for further proceedings. This matter is pending. Nuclear Regulatory Commission All aspects of the operation and maintenance of the Companies’ nuclear power stations are regulated by the NRC.
The CWA and analogous state laws impose restrictions and strict controls regarding discharges of effluent into surface waters and require permits to be obtained from the EPA or the analogous state agency for those discharges. Containment berms and similar structures may be required to help prevent accidental releases.
The CWA and analogous state laws impose restrictions and strict controls regarding discharges of effluent into surface waters and require permits to be obtained from the EPA or the 28 analogous state agency for those discharges. Containment berms and similar structures may be required to help prevent accidental releases.
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.
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.
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.
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.
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.
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.
(2) Excludes ODEC’s 50.0% undivided ownership interest in the Clover power station. (3) Includes solar and biomass. Nuclear Fuel —Virginia Power primarily utilizes long-term contracts to support its nuclear fuel requirements. Worldwide market conditions are continuously evaluated to ensure a range of supply options at reasonable prices which are dependent on the market environment.
(2) Excludes ODEC’s 50.0% undivided ownership interest in the Clover power station. (3) Includes solar, biomass and pumped storage. Nuclear Fuel —Virginia Power primarily utilizes long-term contracts to support its nuclear fuel requirements. Worldwide market conditions are continuously evaluated to ensure a range of supply options at reasonable prices which are dependent on the market environment.
In addition, the legislation eliminates Virginia Power’s ability to utilize Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects as a CCRO to reduce or offset any earnings otherwise eligible for customer credits as previously permitted under the GTSA. See Note 13 to the Consolidated Financial Statements for additional information.
In addition, the legislation eliminated Virginia Power’s ability to utilize Virginia Commission-approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects as a CCRO to reduce or offset any earnings otherwise eligible for customer credits as previously permitted under the GTSA. See Note 13 to the Consolidated Financial Statements for additional information.
The estimated cost to decommission Virginia Power’s four nuclear units is reflected in the table below and is primarily based upon site-specific studies completed in 2019. These cost studies are generally completed every four to five years. The current cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating licenses expire.
The estimated cost to decommission Virginia Power’s four nuclear units is reflected in the table below and is primarily based upon site-specific studies completed in 2024. These cost studies are generally completed every four to five years. The current cost estimates assume decommissioning activities will begin shortly after cessation of operations, which will occur when the operating licenses expire.
FERC has certified NERC as the Electric Reliability Organization and also issued an initial order approving many reliability standards that went into effect in 2007. Entities that violate standards will be subject to fines of up to $1.5 million per day, per violation and can also be assessed non-monetary penalties, depending upon the nature and severity of the violation.
FERC has certified NERC as the Electric Reliability Organization and also issued an initial order approving many reliability standards that went into effect in 2007. Entities that violate standards will be subject to fines of up to $1.6 million per day, per violation and can also be assessed non-monetary penalties, depending upon the nature and severity of the violation.
Dominion Energy will continue to monitor these trusts to ensure they meet the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC. The most recent site-specific study completed for Millstone was performed in 2019.
Dominion Energy will continue to monitor these trusts to ensure they meet the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC. The most recent site-specific study completed for Millstone was performed in 2024.
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 2024 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.
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.
As part of this effort, 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.
Information contained on Dominion Energy’s website, including, but not limited to reports mentioned in Environmental Strategy , is not incorporated by reference in this report. 11 ACQUISITIONS AND DISPOSITIONS The following acquisitions and divestitures within the last three years are considered significant to the Companies.
Information contained on Dominion Energy’s website, including, but not limited to reports mentioned in Environmental Strategy , is not incorporated by reference in this report. 10 ACQUISITIONS AND DISPOSITIONS The following acquisitions and divestitures within the last three years are considered significant to the Companies.
Equity Method Investments Sale of Interest in Cove Point In September 2023, Dominion Energy completed the sale of its 50% noncontrolling limited partnership interest in Cove Point to BHE for approximately $3.3 billion in cash proceeds. See Note 9 to the Consolidated Financial Statements for additional information.
See Note 10 to the Consolidated Financial Statements for additional information. 11 Equity Method Investments Sale of Interest in Cove Point In September 2023, Dominion Energy completed the sale of its 50% noncontrolling limited partnership interest in Cove Point to BHE for approximately $3.3 billion in cash proceeds. See Note 9 to the Consolidated Financial Statements for additional information.
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 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 78% of revenue comes from serving Virginia jurisdictional customers.
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.
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 $286 million and is expected to be completed by 2029.
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.
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 through 2026. Spot market purchases may occur when needed or when prices are believed to be favorable. 20 Nuclear — DESC primarily utilizes long-term contracts to support its nuclear fuel requirements.
Between the four units, Virginia Power estimates that it could spend approximately $4 billion through 2035 on capital improvements. The existing regulatory framework in Virginia provides rate recovery mechanisms for such costs.
Between the four units, Virginia Power estimates that it could spend approximately $5 billion through 2035 on capital improvements. The existing regulatory framework in Virginia provides rate recovery mechanisms for such costs.
(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.
(2) Dominion Energy did not make any contributions to its nuclear decommissioning trust funds related to Millstone during 2024. (3) Unit 1 permanently ceased operations in 1998, before Dominion Energy’s acquisition of Millstone.
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.
Dominion Energy offers various efficiency programs designed to reduce energy consumption in Virginia, North Carolina and South Carolina, 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.
(2) Excludes any funds held in trust by Santee Cooper. DESC made contributions of $3 million to its nuclear decommissioning trust funds during 2023. Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for additional information about nuclear decommissioning trust investments, AROs and other aspects of nuclear decommissioning, respectively.
(2) Excludes any funds held in trust by Santee Cooper. DESC made contributions of $3 million to its nuclear decommissioning trust funds during 2024. 21 Also see Notes 9, 14 and 23 to the Consolidated Financial Statements for additional information about nuclear decommissioning trust investments, AROs and other aspects of nuclear decommissioning, respectively.
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.
The strategy to meet these objectives consists of three major elements which will reduce GHG emissions: • Increasingly clean energy; • Innovation and energy infrastructure modernization; and • Conservation and energy efficiency.
The legislation provides that the Virginia Commission will establish an authorized ROE of 9.70% for Virginia Power in the 2023 Biennial Review, and that subsequent to the 2023 Biennial Review the Virginia Commission is authorized to utilize any methodology it deems to be consistent with the public interest to make future ROE determinations.
The legislation provided that the Virginia Commission establish an authorized ROE of 9.70% for Virginia Power in the 2023 Biennial Review, and that subsequent to the 2023 Biennial Review the Virginia Commission is authorized to utilize any methodology it deems to be consistent with the public interest to make future ROE determinations.
The output of these facilities is sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. Variability in earnings provided by these assets relates to changes in irradiance levels due to changes in weather. See Notes 3 and 10 to the Consolidated Financial Statements for additional information regarding certain solar projects.
The output of these facilities is sold under long-term power purchase agreements with terms generally ranging from 15 to 25 years. Variability in earnings provided by these assets relates to changes in irradiance levels due to changes in weather. See Note 10 to the Consolidated Financial Statements for additional information regarding certain solar projects.
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.
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 (2024 dollars) (1) Funds in trusts at December 31, 2024 (2) (dollars in millions) Summer – Unit 1 2042 $ 831 $ 268 (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.
Under the current operating licenses, Virginia Power is scheduled to decommission the Surry and North Anna units during the period 2038 to 2112. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments. In 2021, Virginia Power was granted an additional 20 years for its operating licenses for the two units at Surry.
Under the current operating licenses, Virginia Power is scheduled to decommission the Surry and North Anna units during the period 2052 to 2118. NRC regulations allow licensees to apply for extension of an operating license in up to 20-year increments. In 2021, Virginia Power was granted an additional 20 years for its operating licenses for the two units at Surry.
(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) Virginia Power did not make any contributions to its nuclear decommissioning trust funds during 2024. (3) North Anna is jointly owned by Virginia Power (88.4%) and ODEC (11.6%). However, Virginia Power is responsible for 89.05% of the decommissioning obligation. Amounts reflect 89.05% of the decommissioning cost for both of North Anna’s units.
In August 2022, the Virginia Commission approved the application for certification of the Virginia Facilities component of the CVOW Commercial Project, the revenue requirement for the initial rate year of Rider OSW and noted that no further action was required with respect to Virginia Power’s foreign currency risk mitigation plan.
In August 2022, the Virginia Commission approved the application for certification of the Virginia Facilities component of the CVOW Commercial Project, the revenue requirement for the initial rate year of Rider OSW, subject to certain performance measures, and noted that no further action was required with respect to Virginia Power’s foreign currency risk mitigation plan.
However, Virginia Power and DESC may not construct generating facilities or large capacity transmission lines without the prior approval of various state and federal government agencies. In addition, the Virginia Commission and the North Carolina Commission regulate Virginia Power’s and the South Carolina Commission regulates DESC’s transactions with affiliates and transfers of certain facilities.
However, Virginia Power and DESC may not construct generating facilities or large capacity transmission lines without the prior approval of various state and federal government agencies. In addition, the Virginia and North Carolina Commissions and the South Carolina Commission regulate Virginia Power and DESC’s transactions, respectively, with affiliates and transfers of certain facilities.
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.
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 2024, Dominion Energy experienced an OSHA Recordable Rate of 0.42 compared to 0.45 in 2023 and 0.52 in 2022.
Environmental Justice Dominion Energy seeks to build partnerships and engage with local communities, stakeholders and customers on environmental issues important to them, including environmental justice considerations such as fair treatment, inclusive involvement and effective communication.
Dominion Energy seeks to build partnerships and engage with local communities, stakeholders and customers on environmental issues important to them, including considerations such as fair treatment, representative involvement and effective communication.
(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.
(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, through 2084.
Data centers, which represent 24% and 21% of Virginia Power’s electricity sales for the years ended December 31, 2023 and 2022, respectively, have been a source of significant increase in demand which is expected to continue over the next decade.
Data centers, which represent 26% and 24% of Virginia Power’s electricity sales for the years ended December 31, 2024 and 2023, respectively, have been a source of significant increase in demand which is expected to continue over the next decade.
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.
These rates reflect Dominion Energy’s dedication to safety when compared to a BLS Industry Average OSHA Recordable Rate of 2.0 in 2023 and 1.7 in 2022. 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.
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.
Presented below is a summary of DESC’s actual system output by energy source: Source 2024 2023 2022 Natural gas 47 % 50 % 48 % Nuclear (1) 21 21 23 Coal 21 18 18 Renewable and Hydro (2) 11 11 11 Total 100 % 100 % 100 % (1) Excludes Santee Cooper’s 33.3% undivided ownership interest in Summer.
DESC will continue to monitor this trust to ensure that it meets the NRC minimum financial assurance requirements, which may include, if needed, the use of Dominion Energy guarantees, surety bonding or other financial instruments recognized by the NRC.
DESC will continue to monitor this trust to ensure that it meets the NRC minimum financial assurance requirements, which may include, if needed, the use of parent company guarantees, surety bonding or other financial instruments recognized by the NRC.
Dominion Energy South Carolina’s capital plan for 2024 includes spending approximately $1 billion to upgrade existing or add new infrastructure to meet growing energy needs within its service territory and maintain reliability. Revenue provided by DESC’s electric distribution operations is based primarily on rates established by the South Carolina Commission.
Dominion Energy South Carolina’s capital plan for 2025 through 2029 includes spending approximately $6 billion to upgrade existing or add new infrastructure to meet growing energy needs within its service territory and maintain reliability. Revenue provided by DESC’s electric distribution operations is based primarily on rates established by the South Carolina Commission.
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.
DOMINION ENERGY SOUTH CAROLINA Dominion Energy South Carolina is composed 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 0.5 million residential, commercial and industrial customers in South Carolina.
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.
Presented below is a summary of Virginia Power’s actual system output by energy source: Source 2024 2023 2022 Natural gas 40 % 36 % 36 % Nuclear (1) 26 29 28 Purchased power, net 22 25 23 Coal (2) 5 5 8 Renewable and Hydro (3) 7 5 5 Total 100 % 100 % 100 % (1) Excludes ODEC’s 11.6% undivided ownership interest in North Anna.
GHG Emissions Dominion Energy continues to make progress on achieving its net zero emissions commitment. Through 2022, Dominion Energy has reduced direct Scope 1 CO 2 equivalent carbon and methane emissions by 46%.
GHG Emissions Dominion Energy continues to make progress on achieving its net zero emissions commitment. Through 2023, Dominion Energy has reduced direct Scope 1 CO 2 equivalent carbon and methane emissions by 52%.
The legislation directs that if the Virginia Commission determines as part of the 2023 Biennial Review that Virginia Power has earned more than 70 basis points above its authorized ROE of 9.35% established in the 2021 Triennial Review that 85% of the amount of such earnings above this level be credited to customers’ bills.
The legislation directed that if the Virginia Commission determined as part of the 2023 Biennial Review that Virginia Power had earned more than 70 basis points above its authorized ROE of 9.35% established in the 2021 Triennial Review that 85% of the amount of such earnings above this level be credited to customers’ bills.
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 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 29.5 million metric tons in 2023.
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.
REGULATION The Companies are subject to regulation by various federal, state and local authorities, including the state commissions of Virginia, North Carolina and South Carolina, SEC, FERC, EPA, DOE, PHMSA, NRC, U.S. Army Corps of Engineers, BOEM and U.S. Department of Transportation.
Dominion Energy’s capital plan in 2024 includes a focus on upgrading the electric system in Virginia through investments in additional renewable generation facilities, smart meters, intelligent grid devices and associated control systems, physical and cyber security investments, strategic undergrounding and energy conservation programs.
Dominion Energy’s capital expenditure plan for 2025 through 2029 includes a focus on upgrading the electric system in Virginia through investments in renewable generation facilities, smart meters, intelligent grid devices and associated control systems, physical and cyber security investments, strategic undergrounding and energy conservation programs.
Electric Generation and Storage Projects In addition, Virginia Power is developing, financing and constructing new generation capacity as well as seeking license extensions on zero carbon nuclear generation facilities to meet its renewable generation targets and growing electricity demand within its service territory.
Electric Generation and Storage Projects In addition, Virginia Power is developing, financing and constructing new generation capacity and has also received license extensions on zero carbon nuclear generation facilities to meet its renewable generation targets and growing electricity demand within its service territory.
Conservation and Energy Efficiency Conservation and load management play a significant role in meeting the growing demand for electricity and natural gas, while also helping to reduce the environmental footprint of Dominion Energy’s customers and lower their bills.
See Operating Segments for additional information. 30 Conservation and Energy Efficiency Conservation and load management play a significant role in meeting the growing demand for electricity and natural gas, while also helping to reduce the environmental footprint of Dominion Energy’s customers and lower their bills.
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.
SAIDI performance results, excluding major events, were 83 minutes for the three-year average ending 2024, up from 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.
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.
The Virginia and South Carolina Commissions also regulate the issuance of certain securities. 24 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 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 Commission.
In addition to reducing GHG emissions, Dominion Energy’s environmental strategy has also resulted in measurable reductions of other air pollutants such as NO X , SO 2 and mercury and reduced the amount of coal ash generated and the amount of water withdrawn.
In addition to reducing GHG emissions, Dominion Energy has also achieved measurable reductions of other air pollutants such as NO X , SO 2 and mercury and reduced the amount of coal ash generated and the amount of water withdrawn.
Contracted Energy’s capital plan for 2024 includes spending approximately $0.5 billion primarily to support its operations at Millstone and develop renewable natural gas projects. Contracted Energy derives its earnings primarily from Dominion Energy’s nonregulated generation assets, including associated capacity and ancillary services.
Contracted Energy’s capital plan for 2025 through 2029 includes spending approximately $2 billion primarily to support its operations at Millstone and develop renewable natural gas projects. Contracted Energy derives its earnings primarily from Dominion Energy’s nonregulated generation assets, including associated capacity and ancillary services.
Dominion Energy achieved GHG and other air pollutant reductions by implementing an integrated environmental strategy that addresses electric energy production and delivery and energy management.
Dominion Energy achieved GHG and other air pollutant reductions by implementing an integrated approach to environmental stewardship that addresses electric energy production and delivery and energy management.
Dominion Energy Virginia’s capital plan for 2024 includes spending approximately $9 billion to construct new generation capacity, including the CVOW Commercial Project, to continue developments to meet its renewable generation targets and growing electricity demand within its service territory in order to maintain reliability and regulatory compliance and to upgrade or add new transmission lines, distribution lines, substations, and other facilities, as well as maintain existing generation capacity.
Dominion Energy Virginia’s capital plan for 2025 through 2029 includes spending approximately $41 billion, net of reimbursements from Stonepeak, to construct new generation capacity, including the CVOW Commercial Project, to continue developments to meet its renewable generation targets and growing electricity demand within its service territory in order to maintain reliability and regulatory compliance and to upgrade or add new transmission lines, distribution lines, substations and other facilities, as well as maintain existing generation capacity.
For information on decommissioning trusts, see Dominion Energy Virginia-Nuclear Decommissioning , Dominion Energy South Carolina-Nuclear Decommissioning, and Contracted Energy-Nuclear Decommissioning above and Notes 3 and 9 to the Consolidated Financial Statements. See Note 23 to the Consolidated Financial Statements for additional information on spent nuclear fuel.
For information on decommissioning trusts, see Dominion Energy Virginia-Nuclear Decommissioning , Dominion Energy South Carolina-Nuclear Decommissioning, and Contracted Energy-Nuclear Decommissioning above and Notes 3 and 9 to the Consolidated Financial Statements.
At December 31, 2023, Dominion Energy had approximately 17,700 full-time employees, of which approximately 4,600 are subject to collective bargaining agreements, including approximately 6,400 full-time employees at Virginia Power, of which approximately 2,600 are subject to collective bargaining agreements.
At December 31, 2024, Dominion Energy had approximately 14,700 full-time employees, of which approximately 3,400 are subject to collective bargaining agreements, including approximately 6,600 full-time employees at Virginia Power, of which approximately 2,700 are subject to collective bargaining agreements.
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.
The South Carolina Commission approved DESC to recover net lost revenues resulting from the gas DSM programs through its annual Natural Gas Rate Stabilization Act proceeding. See Note 13 to the Consolidated Financial Statements for additional information.
For the purposes of these calculations and consistent with GHG Protocol requirements for reporting GHG emission reductions over time, both the baseline and 2022 emissions data includes the gas entities expected to be sold as part of the East Ohio, Questar Gas and PSNC Transactions as well as Dominion Energy’s 50% noncontrolling interest in Cove Point.
For the purposes of these calculations and consistent with GHG Protocol requirements for reporting GHG emission reductions over time, both the baseline and 2023 emissions data include the gas entities sold in 2024 as part of the East Ohio, Questar Gas and PSNC Transactions, and exclude Dominion Energy’s 50% noncontrolling interest in Cove Point sold in 2023.
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.
ENVIRONMENTAL PROTECTION AND MONITORING EXPENDITURES Dominion Energy incurred $314 million, $269 million and $251 million of expenses (including accretion and depreciation) during 2024, 2023 and 2022 respectively, in connection with environmental protection and monitoring activities. Dominion Energy expects these expenses to be approximately $330 million and $320 million in 2025 and 2026, respectively.
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.
Through 2023, Dominion Energy has reduced direct carbon emissions from electric generation by 53% since 2005 and reduced methane emissions from its natural gas infrastructure operations by 50% since 2010.
Consistent 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.
Consistent with its ownership percentage, Dominion Energy’s 2023 emissions data reported under its Corporate GHG Inventory includes emissions from its 50% noncontrolling interest in Cove Point (through September 2023), as well as the entire year of operations for the gas entities sold in 2024 as part of the East Ohio, Questar Gas, and PSNC Transactions. • For Dominion Energy’s electric generation operations, total CO 2 equivalent emissions were 27.4 million metric tons in 2023, including 9.2 million metric tons from DESC and 18.2 million metric tons from Virginia Power. • For Dominion Energy’s electric transmission and distribution operations, direct CO 2 equivalent emissions were 0.13 million metric tons in 2023. • For Dominion Energy’s natural gas operations, total CO 2 equivalent emissions were 1.5 million metric tons in 2023, including 1.4 million metric tons associated with East Ohio, Questar Gas and Wexpro and PSNC. • For Dominion Energy’s proportional interest in Cove Point’s operations, total CO 2 equivalent emissions were 0.4 million metric tons in 2023. 31 • 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 2023.
These projects are expected to cost a total of approximately $1.4 billion once constructed, including initial acquisition costs, and generate approximately 697 MW combined. See Note 13 to the Consolidated Financial Statements for additional information.
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. These costs are primarily expected to be recovered under Rider CE. See Note 13 to the Consolidated Financial Statements for additional information.
The estimated decommissioning costs, funds in trust and current license expiration dates for Millstone 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) Millstone Unit 1 (3) N/A $ 469 $ 804 Unit 2 2035 708 1,089 Unit 3 (4) 2045 803 1,090 Total $ 1,980 $ 2,983 (1) The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on Dominion Energy’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in Dominion Energy’s nuclear decommissioning AROs.
The estimated decommissioning costs, funds in trust and current license expiration dates for Millstone are shown in the following table: NRC license expiration year Most recent cost estimate (2024 dollars) (1) Funds in trusts at December 31, 2024 (2) (dollars in millions) Millstone Unit 1 (3) N/A $ 893 $ 944 Unit 2 2035 1,076 1,270 Unit 3 (4) 2045 1,190 1,282 Total $ 3,159 $ 3,496 23 (1) The cost estimates shown above reflect reductions for the expected future recovery of certain spent fuel costs based on Dominion Energy’s contracts with the DOE for disposal of spent nuclear fuel consistent with the reductions reflected in Dominion Energy’s nuclear decommissioning AROs.
The Virginia Commission has approved six phases of the program encompassing approximately 1,866 miles of converted lines and $1.1 billion in capital spending (with $1.1 billion recoverable through Rider U).
The Virginia Commission has approved seven phases of the program encompassing approximately 2,200 miles of converted lines and $1.3 billion in capital spending recoverable through Rider U.
Significant projects under construction or development as well as significant projects under consideration are set forth below: • Virginia Power plans to invest approximately $1.1 billion in 2024 to acquire or construct several solar facilities to serve utility customers.
Significant projects under construction or development as well as significant projects under consideration are set forth below: • Virginia Power plans to invest approximately $4.0 billion from 2025 through 2029 to acquire or construct several solar facilities to serve utility customers.
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.
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 has sought and received license extensions for its zero-carbon nuclear facilities at Surry and North Anna and is expanding wind and solar generation as well as energy storage, investing in carbon-beneficial renewable natural gas 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 from those suppliers who are committed to net zero.
Acquisition of Nonregulated Solar Projects In 2023, Dominion Energy entered into an agreement to acquire a nonregulated solar project in Virginia and completed the acquisition in 2024. The project is expected to cost a total of $205 million once constructed, including the initial acquisition cost, and generate approximately 83 MW.
Acquisition of Nonregulated Solar Projects In 2023, Dominion Energy entered into an agreement to acquire a nonregulated solar project in Virginia and completed the acquisition in 2024. The project was completed at a total cost of approximately $195 million, including initial acquisition cost, and generates approximately 83 MW.
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.
For the purposes of measuring and reporting on diversity as required by federal law, Dominion Energy follows federal EEO-1 guidelines and includes employees who self-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.
Amounts collected from ratepayers have been placed into trusts and are invested to fund the expected future costs of decommissioning the Surry and North Anna units. 18 Virginia Power believes that the decommissioning funds and their expected earnings for the Surry and North Anna units will be sufficient to cover expected decommissioning costs, particularly when combined with future ratepayer collections and contributions to these decommissioning trusts, if such future collections and contributions are required.
Virginia Power believes that the decommissioning funds and their expected earnings for the Surry and North Anna units will be sufficient to cover expected decommissioning costs, particularly when combined with future ratepayer collections and contributions to these decommissioning trusts, if such future collections and contributions are required.
DESC has also received approval from the South Carolina Commission to create DSM programs for its residential and commercial natural gas customers and a rider to retail gas rates for the recovery of the associated program costs and for a shared savings incentive.
DESC has also received approval from the South Carolina Commission to recover gas DSM program costs and a shared savings incentive from residential and commercial natural gas customers under a rider to retail gas rates.
These facilities are expected to be placed in service in 2024 through 2027. Leasing Arrangement In December 2020, Dominion Energy signed an agreement (subsequently amended in December 2022 and May 2023) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel.
These facilities are expected to be placed in service throughout 2025 and 2026. Leasing Arrangement In December 2020, Dominion Energy signed an agreement (most recently amended in August 2024) with a lessor to complete construction of and lease a Jones Act compliant offshore wind installation vessel.
See State Regulations and Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Notes 13 and 23 to the Consolidated Financial Statements for additional information. Properties For a description of existing facilities, see Item 2. Properties.
Department of Transportation and the South Carolina Office of Regulatory Staff for enforcement of federal and state pipeline safety requirements. See State Regulations and Federal Regulations in Regulation, Future Issues and Other Matters in Item 7. MD&A and Notes 13 and 23 to the Consolidated Financial Statements for additional information. Properties For a description of existing facilities, see Item 2.
Water The CWA is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms.
Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements. Water The CWA is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe 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.
Biggest changeDeterioration 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 41 increase their cost of borrowing or restrict their ability to access one or more financial markets.
In accordance with the Virginia Commission’s order in December 2022, the Companies are subject to a cost sharing mechanism in which Virginia Power will be eligible to recover 50% of such incremental costs which fall between $10.3 billion and $11.3 billion with no recovery of such incremental costs which fall between $11.3 billion and $13.7 billion.
In accordance with the Virginia Commission’s December 2022 order, the Companies are subject to a cost sharing mechanism in which Virginia Power will be eligible to recover 50% of such incremental costs which fall between $10.3 billion and $11.3 billion with no recovery of such incremental costs which fall between $11.3 billion and $13.7 billion.
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.
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.
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.
Construction Risks The 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.
Failure to comply with regulatory approval conditions or an adverse ruling in any future litigation could adversely affect the Companies’ ability to execute their business plan. The Companies are dependent on their contractors for the successful and timely completion of large-scale infrastructure projects.
Failure to comply with regulatory approval conditions or an adverse ruling in any future litigation could adversely affect the Companies’ ability to execute their business plan. 37 The Companies are dependent on their contractors for the successful and timely completion of large-scale infrastructure projects.
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.
Alternatively, 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.
The Companies may not complete the facility construction, pipeline, conversion or other infrastructure projects that they commence, or they may complete projects on materially different terms, costs or timing than initially estimated or anticipated, and they may not be able to achieve the intended benefits of any such project, if completed.
The Companies may not complete the facility construction, conversion or other infrastructure projects that they commence, or they may complete projects on materially different terms, costs or timing than initially estimated or anticipated, and they may not be able to achieve the intended benefits of any such project, if completed.
In addition, severe weather or acts of nature, including hurricanes, winter storms, earthquakes, floods and other natural disasters can stress systems, disrupt operation of the Companies’ facilities and cause service outages, production delays and property damage that require incurring additional expenses.
In addition, severe weather or acts of nature, including hurricanes, winter storms, wildfires, earthquakes, floods and other natural disasters can stress systems, disrupt operation of the Companies’ facilities and cause service outages, production delays and property damage that require incurring additional expenses.
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.
Any of these or other factors could adversely affect the Companies’ ability to realize the anticipated benefits from the facility construction, 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.
The Companies are subject to complex governmental regulation, including tax regulation, that could adversely affect their results of operations and subject the Companies to monetary penalties. The Companies’ operations are subject to extensive federal, state and local laws and regulations and require numerous permits, approvals and certificates from various governmental agencies.
The Companies are subject to complex governmental regulation, including tax regulation, that could adversely affect their results of operations and subject the Companies to monetary penalties. The Companies’ operations are subject to extensive federal, state and local laws and regulations and require numerous permits, approvals and certificates from various governmental 33 agencies.
The timeline for development and construction of the CVOW Commercial Project may also be negatively impacted by severe weather events or marine wildlife, including migration patterns of endangered and protected species, both of which are outside of the control of the Companies and their contractors.
The timeline for construction of the CVOW Commercial Project may also be negatively impacted by severe weather events or marine wildlife, including migration patterns of endangered and protected species, both of which are outside of the control of the Companies and their contractors.
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.
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.
In addition, the amount and scope of insurance coverage maintained against losses resulting from any such attack may not be sufficient to cover such losses or otherwise adequately compensate for any business disruptions that could result.
In addition, the amount and scope of insurance coverage 40 maintained against losses resulting from any such attack may not be sufficient to cover such losses or otherwise adequately compensate for any business disruptions that could result.
Even if facility construction, pipeline, expansion, electric transmission line, conversion and other infrastructure projects are completed, the total costs of the projects may be higher than anticipated and the performance of the business of the Companies following completion of the projects may not meet expectations.
Even if facility construction, expansion, electric transmission line, conversion and other infrastructure projects are completed, the total costs of the projects may be higher than anticipated and the performance of the business of the Companies following completion of the projects may not meet expectations.
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.
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 related services.
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.
These 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.
However, such actions could render additional existing generation facilities uneconomical to operate, result in the impairment of assets, or otherwise adversely affect the Companies’ results of operations, financial performance or liquidity.
However, 34 such actions could render additional existing generation facilities uneconomical to operate, result in the impairment of assets, or otherwise adversely affect the Companies’ results of operations, financial performance or liquidity.
The development and construction of the CVOW Commercial Project is also dependent on the ability of certain key suppliers and contractors to timely satisfy their obligations under contracts entered into or expected to be entered into.
The construction of the CVOW Commercial Project is also dependent on the ability of certain key suppliers and contractors to timely satisfy their obligations under contracts entered into or expected to be entered into.
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.
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.
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.
Such laws and regulations govern the terms and conditions of the services the Companies offer, relationships with affiliates and protection of critical electric infrastructure assets, 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.
In addition, there are many risks associated with the Companies’ principal operations and the transportation and storage of natural gas including nuclear accidents, fires, explosions, uncontrolled release of natural gas and other environmental hazards, pole strikes, electric contact cases, the collision of third party equipment with pipelines and avian and other wildlife impacts.
In addition, there are many risks associated with the Companies’ principal operations including nuclear accidents, fires, explosions, uncontrolled release of natural gas and other environmental hazards, pole strikes, electric contact cases, the collision of third party equipment with pipelines and avian and other wildlife impacts.
Further, the location of natural gas pipelines and associated distribution facilities, or electric generation, transmission, substations and distribution facilities near populated areas, including residential areas, commercial business centers and industrial sites, could increase the level of damages resulting from these risks.
Further, the location of electric generation, transmission, substations and distribution facilities or natural gas distribution facilities near populated areas, including residential areas, commercial business centers and industrial sites, could increase the level of damages resulting from these risks.
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.
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, particularly in Loudoun County, Virginia, have been a source of significant increase in demand which is expected to continue over the next decade.
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.
If the Companies are unable to complete the construction of the CVOW Commercial Project or decide in the future to delay or cancel the project, the 35 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.
New laws or regulations, the revision or reinterpretation of existing laws or regulations, changes in enforcement practices of regulators, or penalties imposed for non-compliance with existing laws or regulations may result in substantial additional expense.
New laws or regulations, the revision or reinterpretation of existing laws or regulations, the imposition of new tariffs, changes in enforcement practices of regulators, or penalties imposed for non-compliance with existing laws or regulations may result in substantial additional expense.
Accordingly, while Dominion Energy may have a certain level of control or influence over these entities, it may not have unilateral, or any, control over the day-to-day operations of these entities or over decisions that may have a material financial impact on the partnership participants, including Dominion Energy.
Accordingly, while Dominion Energy or Virginia Power may have a certain level of control or influence over these entities, it may not have unilateral, or any, control over the day-to-day operations of these entities or over decisions that may have a material financial impact on the partnership participants, including the Companies.
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.
The construction of the CVOW Commercial Project is dependent on the Companies’ ability to maintain various local, state and federal permits, rights of way and other regulatory approvals and authorizations, including Virginia Commission approval for rider recovery of project costs.
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.
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, expanded use of artificial intelligence, widespread adoption of electric vehicles or other customer changes could require enhancements to the Companies’ infrastructure.
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.
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, changes in laws or regulations, 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, the impact of applicable tariffs or other factors beyond the Companies’ control.
Given that these projects provide the foundation for the Companies’ strategic growth plan, if the Companies are unable to obtain or maintain the required regulatory and other, including PJM, approvals, develop the necessary technical expertise, allocate and coordinate sufficient resources, adhere to budgets and timelines, effectively handle public outreach efforts, including its commitment to environmental justice, or otherwise fail to successfully execute the projects, there could be an adverse impact to the Companies’ financial position, results of operations and cash flows.
Given that these projects provide the foundation for the Companies’ strategic growth plan and to meet projected growth, if the Companies are unable to obtain or maintain the required regulatory and other, including PJM, approvals, develop the necessary technical expertise, allocate and coordinate sufficient resources, adhere to budgets and timelines, effectively handle public outreach efforts, including its commitment to fair treatment, community involvement and effective communication, or otherwise fail to successfully execute the projects, there could be an adverse impact to the Companies’ financial position, results of operations and cash flows.
In each case such partnership arrangements operate in accordance with their respective governance documents, and Dominion Energy is dependent upon third parties satisfying their respective obligations, including, as applicable, funding of their required share of capital expenditures.
In each case such partnership arrangements operate in accordance with their respective governance documents, and the Companies are dependent upon third parties satisfying their respective obligations, including, as applicable, funding of their required share of capital expenditures.
These CCR regulations require the Companies to make additional capital expenditures and increase operating and maintenance expenses. In addition, the Companies will incur expenses and other costs associated with closing, corrective action and ongoing monitoring of certain ash ponds and landfills. The Companies also may face litigation concerning their coal ash facilities.
These CCR regulations require the Companies to make additional capital expenditures and increase operating and maintenance expenses. In addition, the Companies will incur expenses and other costs associated with closing, corrective action and ongoing monitoring of certain ash ponds and landfills.
Several of the Companies’ key projects are increasingly large-scale, complex and being constructed in constrained geographic areas or in unfamiliar environments such as the marine environment for the Coastal Virginia Offshore Wind projects.
Several of the Companies’ key projects are increasingly large-scale, complex and being constructed in constrained geographic areas or in unfamiliar environments such as the marine environment for the CVOW Commercial Project.
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.
Certain of the Companies’ operations, including the CVOW Commercial Project, are conducted through entities subject to partnership arrangements under which Dominion Energy or Virginia Power has significant influence but does not control the operations of such entities or in which Dominion Energy or Virginia Power’s control over such entities may be subject to certain rights of third-party investors.
Certain of the fixed price contracts for major offshore construction and equipment components are denominated in Euros and Danish kroner, including those which contain commodity indexing provisions linked to steel. In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion.
Certain of the fixed price contracts for major offshore construction and equipment components are denominated in Euros and Danish kroner. In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion.
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.
A number of large- and small-scale projects have been announced, including the CVOW Commercial Project, electric transmission lines, facility expansions or renewed licensing, conversions and other infrastructure developments or construction.
A decline in the Companies’ credit worthiness, an unfavorable market reputation of either the Companies or their industry or general market disruptions could adversely impact financing costs and increase the overall cost of the project.
A decline in the Companies’ credit worthiness, an unfavorable market reputation of either the Companies or their industry or general market disruptions could adversely impact financing costs and increase the overall cost of the project. In October 2024, Virginia Power completed the sale of a 50% noncontrolling interest to Stonepeak.
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.
In addition, Dominion Energy recorded an aggregate $309 million after-tax charge in the fourth quarter of 2023 and first quarter of 2024 for the impairment of certain goodwill associated with the Questar Gas Transaction. 42 Exposure to counterparty performance may adversely affect the Companies’ financial results of operations.
Regulatory, Legislative and Legal Risks The rates of the Companies’ principal electric transmission, distribution and generation operations and gas distribution operations are subject to regulatory review. Revenue provided by the Companies’ electric transmission, distribution and generation operations and by gas distribution operations is based primarily on rates approved by state and federal regulatory agencies.
Revenue provided by the Companies’ electric transmission, distribution and generation operations and by gas distribution operations is based primarily on rates approved by state and federal regulatory agencies.
Further, an inability to obtain financing or otherwise provide liquidity for the projects on acceptable terms, including any potential adverse conditions arising from or in connection with the comprehensive business review announced in November 2022, could negatively affect the Companies’ financial condition, cash flows, the projects’ anticipated financial results and/or impair the Companies’ ability to execute the business plan for the projects as scheduled.
Further, an inability to obtain financing or otherwise provide liquidity for the projects on acceptable terms could negatively affect the Companies’ financial condition, cash flows, the projects’ anticipated financial results and/or impair the Companies’ ability to execute the business plan for the projects as scheduled.
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.
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 failure by Dominion Energy to realize its commitments to achieve net zero carbon and methane emissions by 2050, increase workforce diversity, enhance the customer experience or other long-term goals could lead to adverse press coverage and other adverse public statements affecting the Companies.
Any failure by Dominion Energy to realize its commitments to achieve net zero carbon and methane emissions by 2050, enhance the customer experience or other long-term goals could lead to adverse press coverage and other adverse public statements affecting the Companies. The ability to comply with some or all of Dominion Energy’s voluntary commitments may be outside of its control.
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.
Legislation enacted in Virginia in April 2023 reset the frequency of base rate reviews to a biennial period commencing with the 2023 Biennial 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.
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.
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.
Additionally, the Companies may not be able to timely and effectively integrate the projects into their operations and such integration may result in unforeseen operating difficulties or unanticipated costs. Further, regulators may disallow recovery of some of the costs of a project if they are deemed not to be prudently incurred.
Additionally, the Companies may not be able to timely and effectively integrate the projects into their operations and such integration may result in unforeseen operating difficulties or unanticipated costs.
Also, the CVOW Commercial Project may become the subject of litigation or other forms of intervention by third parties, including stakeholders or advocacy groups, that may impact the timing and receipt of permits or other regulatory approvals or otherwise delay or increase the cost of the project.
Also, the CVOW Commercial Project may become the subject of litigation or other forms of intervention by third parties, including stakeholders or advocacy groups, that may seek to challenge permits or other regulatory approvals received, including for routing of onshore electric transmission, which could delay or increase the cost of the project.
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.
Technological advances may enhance energy efficiency in end-use devices, including lighting, furnaces and electric heat pumps and could lead to declines in per capita energy consumption. Additionally, regulatory and/or legislative bodies could introduce requirements and/or incentives to reduce energy consumption.
In addition, certain specialized knowledge is required of the Companies’ technical employees for construction and operation of transmission, generation and distribution assets.
In addition, certain specialized knowledge is required of the Companies’ technical employees for construction and operation of transmission, generation and distribution assets. The Companies’ inability to attract and retain these employees could adversely affect their business and future operating results.
The Companies may be materially adversely affected by negative publicity or the inability of Dominion Energy to meet its stated commitments. From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting the Companies.
From time to time, political and public sentiment may result in a significant amount of adverse press coverage and other adverse public statements affecting the Companies.
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.
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.
Rates for electric transmission services are updated annually according to a FERC-approved formula rate mechanism, and may be subject to additional prospective adjustments and retroactive corrections. A failure by the Companies to support these rates could result in rate decreases from current rate levels, which could adversely affect the Companies’ results of operations, cash flows and financial condition.
A failure by the Companies to support these rates or a change in FERC policy could result in rate decreases from current rate levels, which could adversely affect the Companies’ results of operations, cash flows and financial condition.
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.
Such third-party investors have their own interests and 39 objectives which may differ from those of the Companies and, accordingly, disputes may arise amongst the owners of such partnership arrangements that may result in delays, litigation or operational impasses. The Companies may be materially adversely affected by negative publicity or the inability of Dominion Energy to meet its stated commitments.
If downstream customers or upstream suppliers do not sufficiently reduce their GHG emissions, Dominion Energy may not achieve its net zero emissions goal.
Dominion Energy is also dependent on the actions of third parties to meet the expanded commitment regarding Scope 2 emissions and Scope 3 emissions. If downstream customers or upstream suppliers do not sufficiently reduce their GHG emissions, Dominion Energy may not achieve its net zero emissions goal.
For other factors that may cause actual results to differ materially from those indicated in any forward-looking statement or projection contained in this report, see Forward-Looking Statements in Item 7. MD&A. As discussed in Future Issues in Item 7. MD&A, Dominion Energy has commenced a comprehensive business review.
For other factors that may cause actual results to differ materially from those indicated in any forward-looking statement or projection contained in this report, see Forward-Looking Statements in Item 7. MD&A. Regulatory, Legislative and Legal Risks The rates of the Companies’ principal electric transmission, distribution and generation operations and gas distribution operations are subject to regulatory review.
In addition, in the event that any of the contracted generation facilities experience a forced outage, Dominion Energy may not receive the level of revenue it anticipated. Dominion Energy conducts certain operations through partnership arrangements involving third-party investors which may limit Dominion Energy’s operational flexibility or result in an adverse impact on its financial results.
The Companies conduct certain operations through partnership arrangements involving third-party investors which may limit the Companies’ operational flexibility or result in an adverse impact on its financial results.
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.
In addition, 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. 36 The construction of the CVOW Commercial Project involves the use of evolving turbine technology and takes place in a marine environment, which presents unique challenges and requires the use of a specialized workforce and specialized equipment.
Likewise, 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.
Consumer demand for the Companies’ services may also be impacted by any price increases, including those driven by factors beyond the Companies’ control 38 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.
Similarly, adverse fluctuations in the price of certain raw materials, including steel, would likely, to the extent not hedged by the Companies, adversely affect the overall costs incurred to develop and construct the project.
Similarly, adverse fluctuations in the price of fuel used for transportation and installation, would likely adversely affect the overall costs to construct the project. In addition, the cost of the CVOW Commercial Project could be adversely affected by the impact of applicable tariffs, if any.
Removed
The outcomes of the business review and the implementation of the resulting recommendations may be subject to various risks and uncertainties (some of which may include the risks and uncertainties discussed below or other risks and uncertainties that cannot yet be determined) that could have a material impact on the Companies’ future results of operations, cash flows and/or financial condition.
Added
Rates for electric transmission services are updated annually according to a FERC-approved formula rate mechanism, and may be subject to additional prospective adjustments and retroactive corrections.
Removed
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.
Added
For example, in April 2024, FERC issued an order that accepted proposed changes to the PJM wholesale capacity market that significantly changed how a generation resource’s capacity value is calculated and decreased the total amount of capacity recognized in the PJM region as eligible to meet reserve requirements.
Removed
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.
Added
Adverse developments in tax laws, credits or other incentives including changes in legislation, administrative interpretations or judicial determinations could result in material modifications to business models or otherwise negatively affect the Companies’ results of operations, financial condition and/or cash flows.
Removed
In addition, the design and route of the project’s onshore electric transmission, network upgrades and other facilities remain subject to regulatory and PJM review and approval. Changes in the design and route of these onshore facilities, including an increase in amount of undergrounding, would likely increase project costs.
Added
The EPA’s May 2024 final rule regulates inactive surface impoundments located at the retired generation stations that contained CCR and liquids after 2015, and certain other inactive or previously closed surface impoundments, landfills or other areas that contain accumulations of CCR.
Removed
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.
Added
The Companies believe that they may have inactive or closed units or areas that could be subject to the final rule at up to 19 different locations, including 12 at Virginia Power. The Companies also may face litigation concerning their coal ash facilities.
Removed
The ability to comply with some or all of Dominion Energy’s voluntary commitments may be outside of its control. For example, Dominion Energy is dependent on the actions of third parties to meet the expanded commitment regarding Scope 2 emissions and Scope 3 emissions.
Added
In addition, determination of costs allocated by PJM to the project for network upgrades remains subject to change, even after the CVOW Commercial Project is placed in service, as such amounts are driven by the ultimate costs of development of the transmission lines and related facilities that PJM determines is necessary to support various generation facilities within PJM, including the CVOW Commercial Project.
Removed
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.
Added
The final determination of such costs is outside the control of the CVOW Commercial Project and may be impacted by events affecting the developers of such transmission lines, including any increases in costs for permitting, inflation, tariffs, supply chain constraints or other factors affecting the ultimate costs to complete such facilities.
Removed
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.
Added
Virginia Power and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of the CVOW Commercial Project provided the total project cost, excluding financing costs, is less than $11.3 billion.
Removed
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.
Added
For capital funding necessary, if any, for total project costs, excluding financing costs, of $11.3 billion through $13.7 billion, Stonepeak will have the option to make additional capital contributions.
Removed
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.
Added
If Stonepeak elects to make additional capital contributions for project costs, excluding financing costs, in excess of $11.3 billion, if any, Virginia Power shall contribute between 67% and 83% of such capital with Stonepeak contributing the remainder.
Removed
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.
Added
To the extent that Stonepeak elects not to make such contributions, Virginia Power shall receive an increase in its ownership percentage of OSWP for any contributed capital based on a tiered unit price for membership interests in OSWP as set forth in the agreement.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+0 added−0 removed16 unchanged
Biggest changeIn addition, Dominion Energy’s Board of Directors receives briefings from time to time from outside experts for an independent view on cybersecurity risks, including an assessment by an independent consulting firm of management’s response in a ransomware tabletop drill.
Biggest changeIn addition, Dominion Energy’s Board of Directors receives briefings from time to time from outside experts for an independent view on cybersecurity risks, including assessments by independent consulting firms and legal counsel of the Companies’ readiness and resilience.
The director of cybersecurity has over 30 years of experience at Dominion Energy primarily in various roles within the information technology department, including information technology risk management, as well as cybersecurity. The director of cybersecurity has been involved in designing and evolving the Companies’ cyber risk management policies, practices and procedures.
The director of cybersecurity (CISO) has over 30 years of experience at Dominion Energy primarily in various roles within the information technology department, including information technology risk management, as well as cybersecurity. The director of cybersecurity (CISO) has been involved in designing and evolving the Companies’ cyber risk management policies, practices and procedures.
The chief security officer and chief information officer are supported by the senior vice president of administrative services as well as the Companies’ operations, legal, audit, corporate risk, supply chain, human resources and accounting departments in executing its cybersecurity program.
The chief security officer and chief information officer are supported by the senior vice president of administrative services as well as the Companies’ operations, compliance, legal, audit, corporate risk, supply chain, human resources and accounting departments in executing its cybersecurity program.
As necessary, the COO, CFO and chief legal officer will advise the CEO on any incidents which could potentially have a material effect on the Companies’ business operations, results of operations or financial condition. 47
As necessary, the COO, CFO and chief legal officer will advise the CEO on any incidents which could potentially have a material effect on the Companies’ business operations, results of operations or financial condition. 44
These presentations and reports address a broad range of topics, including the Companies’ cyber risk management program, updates on recent cybersecurity threats and incidents across the industry, policies and practices, industry trends, threat environment and vulnerability assessments and specific and ongoing efforts to prevent, detect and respond to internal and external critical threats, including management’s hosting in 2023 of its second practical exercise with external federal, state and local incident response partners.
These presentations and reports address a broad range of topics, including the Companies’ cyber risk management program, updates on recent cybersecurity threats and incidents across the 43 industry, policies and practices, industry trends, threat environment and vulnerability assessments and specific and ongoing efforts to prevent, detect and respond to internal and external critical threats, including management’s hosting in 2024 of its third practical exercise with external federal, state and local incident response partners.
Dominion Energy’s Board of Directors as well as its finance and risk oversight committee receive presentations and reports throughout the year on cybersecurity and information security risk from management, including Dominion 46 Energy’s chief security officer, director of cybersecurity and chief information officer.
Dominion Energy’s Board of Directors as well as its operations committee (effective in July 2024, previously its finance and risk oversight committee) receive presentations and reports throughout the year on cybersecurity and information security risk from management, including Dominion Energy’s chief security officer, director of cybersecurity (CISO) and chief information officer.
Governance Dominion Energy’s Board of Directors, including its finance and risk oversight committee, provides oversight of the Companies’ risks from cybersecurity threats.
Governance Dominion Energy’s Board of Directors, including its operations committee (effective in July 2024, previously its finance and risk oversight committee), provides oversight of the Companies’ risks from cybersecurity threats.

Item 2. Properties

Properties — owned and leased real estate

18 edited+0 added−6 removed4 unchanged
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.
Biggest changeStorm, WV 1,614 Virginia City Hybrid Energy Center Wise County, VA 610 Clover Clover, VA 439 (2) Total Coal 2,663 13 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 Bookers Mill Farnham, VA 127 Sadler Solar Emporia, VA 100 Spring Grove Surry County, VA 98 Fountain Creek Greensville, VA 80 Piney Creek Halifax, VA 80 Otter Creek Mecklenburg County, VA 60 Sycamore Gretna, VA 42 Camellia Gloucester County, VA 20 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 885 4 46 Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Biomass Altavista Altavista, VA 51 Polyester Hopewell, VA 51 Southampton Southampton, VA 51 Total Biomass 153 1 Battery Dry Bridge Chesterfield, VA 20 Scott Battery Powhatan, VA 12 Total Battery 32 — Wind CVOW Pilot Project Virginia Beach, VA 12 — Various 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.
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 42 % Nuclear Surry Surry, VA 1,676 North Anna Mineral, VA 1,672 (1) Total Nuclear 3,348 17 Coal Mt.
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.
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 60,600 miles of distribution lines, exclusive of service level lines, in Virginia and North Carolina.
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.
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 455 substations.
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.
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. The following table lists DESC’s generating units and capability as of December 31, 2024.
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.
DOMINION ENERGY SOUTH CAROLINA DESC has approximately 3,800 miles and 19,100 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.
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.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Nuclear Millstone Waterford, CT 2,013 (1) Total Nuclear 2,013 65 % Solar (2) Hardin I Hardin County, OH 150 Amazon Solar Farm Virginia – Southampton Newsoms, VA 100 Foxhound Solar Clover, VA 83 Amazon Solar Farm Virginia – Accomack Oak Hall, VA 80 Greensville Greensville County, VA 80 Innovative Solar 37 Morven, NC 79 Wilkinson Pantego, NC 74 Seabrook Beaufort County, SC 73 Moffett Solar 1 Ridgeland, SC 71 Summit Farms Solar Moyock, NC 60 Midway II Calipatria, CA 30 Amazon Solar Farm Virginia – Buckingham Cumberland, VA 20 Amazon Solar Farm Virginia – Correctional Barhamsville, VA 20 Hecate Cherrydale Cape Charles, VA 20 Amazon Solar Farm Virginia – Sussex Drive Stoney Creek, VA 20 Amazon Solar Farm Virginia – Scott II Powhatan, VA 20 Myrtle Suffolk, VA 15 Trask Beaufort County, SC 12 Hecate Energy Clarke County White Post, VA 10 Ridgeland Solar Farm I Ridgeland, SC 10 Yemassee Hampton County, SC 10 Blackville Blackville, SC 7 Denmark Denmark, SC 6 Other Various 35 Total Solar 1,085 35 Total Nonregulated Generation 3,098 100 % (1) Excludes 6.53% undivided interest in Unit 3 owned by Massachusetts Municipal and Green Mountain.
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.
DESC’s natural gas system includes approximately 19,500 miles of distribution mains and related service facilities, which are supported by approximately 400 miles of transmission pipeline. 47 DESC owns two LNG facilities, one located near Charleston, South Carolina, and the other in Salley, South Carolina.
(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.
(5) Includes 189 MW from agreements with certain solar facilities within Contracted Energy. 48 CONTRACTED ENERGY The following table lists Contracted Energy’s generating units and capability as of December 31, 2024.
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.
Powhatan Disputanta, VA 150 Maplewood Chatham, VA 120 Belcher Louisa, VA 88 Gutenberg Garysburg, NC 80 Grasshopper 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.
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.
Item 2. Pr operties Dominion Energy owns five corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate. Dominion Energy also leases corporate offices in Richmond, Virginia and other cities in which its subsidiaries operate, including its principal executive office in Richmond, Virginia. Virginia Power shares Dominion Energy’s principal executive office in Richmond, Virginia.
In addition, Virginia Power owns 484 substations. 48 The following tables list Virginia Power’s generating units and capability as of December 31, 2023.
In addition, Virginia Power owns 486 substations. 45 The following tables list Virginia Power’s generating units and capability as of December 31, 2024.
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.
Plant Location Net Summer Capability (MW) Percentage Net Summer Capability Gas Jasper (CC) (1) Hardeeville, SC 902 Columbia Energy Center (CC) (1) Gaston, SC 522 Urquhart (CC) (1) Beech Island, SC 458 McMeekin Irmo, SC 250 Hagood (CT) (1) Charleston, SC 118 Urquhart Unit 3 Beech Island, SC 95 Urquhart (CT) (1) Beech Island, SC 87 Bushy Park (CT) (1) Goose Creek, SC 42 Coit (CT) (1)(2) Columbia, SC 26 Total Gas 2,500 37 % Coal Wateree Eastover, SC 684 Williams Goose Creek, SC 595 Cope (3) Cope, SC 415 Total Coal 1,694 25 Hydro Fairfield Jenkinsville, SC 576 Saluda Irmo, SC 190 Other Various 18 Total Hydro 784 12 Nuclear Summer Jenkinsville, SC 644 (4) 10 5,622 Power Purchase Agreements 1,112 (5) 16 Total Utility Generation 6,734 100 % Note: (CT) denotes combustion turbine and (CC) denotes combined cycle.
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.
Storm (CT) Mt. Storm, WV 11 — 18,150 Power Purchase Agreements 1,488 8 Total Utility Generation 19,638 100 % 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.
(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.
(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. (4) All solar facilities are alternating current. VIRGINIA POWER NON-JURISDICTIONAL GENERATION Plant Location Net Summer Capability (MW) Solar (1) Ft.
Portions of Virginia Power’s electric transmission lines cross national parks and forests under permits entitling the federal government to use, at specified charges, any surplus capacity that may exist in these lines.
DOMINION ENERGY VIRGINIA Virginia Power has approximately 6,800 miles of electric transmission lines of 69 kV or more located in North Carolina, Virginia and West Virginia. Portions of Virginia Power’s electric transmission lines cross national parks and forests under permits entitling the federal government to use, at specified charges, any surplus capacity that may exist in these lines.
Dominion Energy also owns various solar facilities, primarily at schools in Virginia, with an aggregate generation capacity of 27 MW. 52
(2) All solar facilities are alternating current. CORPORATE AND OTHER Dominion Energy owns various solar facilities, primarily at schools in Virginia, with an aggregate generation capacity of 28 MW. 49
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.
There were no bonds outstanding as of December 31, 2024; however, by leaving the indenture open, Virginia Power retains the flexibility to issue mortgage bonds in the future. Additionally, DESC’s bond indenture, which secures its first mortgage bonds, constitutes a direct mortgage lien on substantially all of its electric utility property.
Removed
Additionally, DESC’s bond indenture, which secures its First Mortgage Bonds, constitutes a direct mortgage lien on substantially all of its electric utility property. DOMINION ENERGY VIRGINIA Virginia Power has approximately 6,700 miles of electric transmission lines of 69 kV or more located in North Carolina, Virginia and West Virginia.
Removed
(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
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.
Removed
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.
Removed
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.
Removed
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.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

7 edited+2 added−2 removed0 unchanged
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.
Biggest changeKeller Kissam (58) President—Dominion Energy South Carolina from January 2022 to present; President—Electric Operations of DESC from January 2019 to December 2021. Steven D.
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.
Item 4. Mine Saf ety Disclosures Not applicable. 50 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.
(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
(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. 51 Part II
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.
Ridge (44) 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.
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.
Brown (50) 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. Michele L.
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.
Blue (57) 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. Edward H.
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.
Baine (51) President—Utility Operations and Dominion Energy Virginia from January 2025 to present; President—Dominion Energy Virginia from October 2020 to December 2024; Senior Vice President—Power Delivery of Virginia Power from December 2019 to September 2020. Carlos M.
Removed
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.
Added
Cardiff (57) Senior Vice President, Controller and CAO from October 2020 to present; Vice President, Controller and CAO from April 2014 to September 2020. Eric S.
Removed
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.
Added
Carr (51) Chief Nuclear Officer and President—Nuclear Operations and Contracted Energy from January 2025 to present; President—Nuclear Operations and Chief Nuclear Officer from July 2023 to December 2024; President—Nuclear Operations during June 2023; President and Chief Nuclear Officer for PSEG Nuclear, LLC, a subsidiary of Public Service Enterprise Group, Incorporated, from July 2019 to May 2023. W.

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) 10/1/23-10/31/23 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.
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) 10/1/24-10/31/24 64,345 $ 58.24 — $ 0.92 billion 11/1/24-11/30/24 415 58.99 — 0.92 billion 12/1/24-12/31/24 2,194 58.70 — 0.92 billion Total 66,954 $ 58.26 — $ 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 2024 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 2025 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 19, 2024, there were approximately 117,000 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 21, 2025, there were approximately 112,000 record holders of Dominion Energy’s common stock.

Item 7. Management's Discussion & Analysis

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

116 edited+51 added−54 removed94 unchanged
Biggest changeNet income from discontinued operations including noncontrolling interests decreased $1.1 billion, primarily due to charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale that will reverse when the sale is completed ($825 million), an impairment associated with the East Ohio and Questar Gas Transactions ($323 million), lower unrealized gains in 2023 compared to 2022 on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in Cove Point ($169 million), a decrease in equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($44 million), a charge associated with the impairment of Birdseye ($34 million), an increase in interest expense primarily associated with debt issuances in 2022 ($31 million), the absence of a gain associated with the Q-Pipe Group for the finalization of the working capital adjustment in the first quarter of 2022 ($20 million) and an impairment charge of certain nonregulated solar assets ($11 million), partially offset by the gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), a net decrease in charges associated with the 65 impairment of the Madison solar project ($57 million) and an increase following the approved base rate case for Questar Gas ($42 million). 2022 VS. 2021 Operating revenue increased 22%, primarily reflecting: • A $1.3 billion increase in fuel-related revenue as a result of an increase in commodity costs associated with sales to electric utility retail customers ($1.2 billion) and gas utility customers ($99 million); • A $505 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders; • The absence of a $356 million decrease for refunds provided to retail electric customers in Virginia associated with the settlement of the 2021 Triennial Review; • A $290 million net increase associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($6 million); • The absence of a $151 million decrease from an unbilled revenue reduction at Virginia Power; • A $57 million increase in sales to electric utility retail customers from an increase in heating degree days during the heating season ($52 million) and a net increase in cooling degree days during the cooling season ($5 million); • A $54 million increase in sales to utility retail customers associated with growth at electric ($46 million) and gas ($8 million) utilities; • A $38 million net increase from electric utility customers who elect to pay market-based or other negotiated rates, including settlements of economic hedges at Virginia Power; • A $30 million increase in sales to electric utility retail customers associated with economic and other usage factors; • A $24 million increase in sales to customers from non-jurisdictional solar generation facilities at Virginia Power; and • A $20 million increase in non-fuel base rates associated with the settlement in 2021 of the South Carolina electric base rate case.
Biggest changeIncome tax expense increased $509 million, primarily due to higher pre-tax income ($573 million) and an increase in consolidated state deferred income taxes associated with the East Ohio, PSNC and Questar Gas Transactions and the sale of Dominion Energy’s 50% noncontrolling interest in Cove Point ($29 million), partially offset by the absence of tax expense on the sale of Hope’s stock ($90 million) and decreased consolidated state deferred income taxes on pre-tax gains from nuclear decommissioning trusts and economic hedges ($12 million). 65 Net income from discontinued operations including noncontrolling interests decreased $1.0 billion, primarily due to charges reflecting the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale that will reverse when the sale is completed ($835 million), an impairment associated with the East Ohio and Questar Gas Transactions ($275 million), lower unrealized gains in 2023 compared to 2022 on interest rate derivatives for economic hedging of debt secured by Dominion Energy’s interest in Cove Point ($169 million), a decrease in equity method earnings from the sale of Dominion Energy’s noncontrolling interest in Cove Point ($44 million), a charge associated with the impairment of Birdseye ($34 million), an increase in interest expense primarily associated with debt issuances in 2022 ($31 million), the absence of a gain associated with the Q-Pipe Group for the finalization of the working capital adjustment in the first quarter of 2022 ($20 million) and an impairment charge of certain nonregulated solar assets ($11 million), partially offset by the gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point ($348 million), a net decrease in charges associated with the impairment of the Madison solar project ($57 million) and an increase following the approved base rate case for Questar Gas ($42 million).
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.
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.
Other operations and maintenance decreased 6%, primarily reflecting: • A $187 million decrease in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; • A $100 million decrease in storm damage and restoration costs in Virginia Power’s service territory; • A $25 million decrease from the sale of Hope; and • A $22 million decrease from materials and supplies expense.
Other operations and maintenance decreased 6%, primarily reflecting: • A $187 million decrease in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income; • A $100 million decrease in storm damage and restoration costs in Virginia Power’s service territory; • A $25 million decrease from the sale of Hope; and 64 • A $22 million decrease from materials and supplies expense.
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.
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 statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “plan,” “may,” “continue,” “target” or other similar words.
These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “path,” “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “plan,” “may,” “continue,” “target” or other similar words.
These decreases were partially offset by: • A $298 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders; • A $126 million increase in sales to electric utility retail customers associated with economic and other usage factors; and • A $37 million increase in sales to electric utility retail customers associated with growth.
These decreases were partially offset by: • A $298 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders; • A $126 million increase in sales to electric utility retail customers associated with economic and other usage factors; and 68 • A $37 million increase in sales to electric utility retail customers associated with growth.
The determination as to whether the sale of the disposal group is probable may include significant judgments from management related to the expectation of obtaining approvals from applicable regulatory agencies such as state utility regulatory commissions, FERC or the U.S. Federal Trade Commission.
The determination as to whether the sale of the disposal group is probable may include significant judgments from management related to the expectation of obtaining approvals from applicable regulatory agencies such as state utility regulatory commissions, 58 FERC or the U.S. Federal Trade Commission.
Entities that are subject to the alternative minimum tax may use tax credits to reduce the liability by up to 75% and will receive a tax credit carryforward with an indefinite life that can be claimed against the regular tax in future years.
Entities that are subject to the alternative minimum tax may use tax credits to 81 reduce the liability by up to 75% and will receive a tax credit carryforward with an indefinite life that can be claimed against the regular tax in future years.
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.
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.
As a result, no regulatory liability for Virginia Power ratepayer credits to customers has been recorded at December 31, 2023. See Note 13 to the Consolidated Financial Statements for additional information. Asset Retirement Obligations Dominion Energy recognizes liabilities for the expected cost of retiring tangible long-lived assets for which a legal obligation exists and the ARO can be reasonably estimated.
As a result, no regulatory liability for Virginia Power ratepayer credits to customers has been recorded at December 31, 2024. See Note 13 to the Consolidated Financial Statements for additional information. Asset Retirement Obligations Dominion Energy recognizes liabilities for the expected cost of retiring tangible long-lived assets for which a legal obligation exists and the ARO can be reasonably estimated.
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.
See Note 22 to the Consolidated Financial Statements for additional information on Dominion Energy’s employee benefit plans. New Accounting Standards See Note 2 to the Consolidated Financial Statements for a discussion of new accounting standards.
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.
At December 31, 2024, 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, 2023, 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, 2024, Dominion Energy had $920 million of available capacity under this authorization.
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.
As of December 31, 2024, 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.
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.
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, 2024.
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.
The 2024, 2023 and 2022 annual test did not result in the recognition of any goodwill impairment. 57 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.
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.
Under the sales agency agreements, Dominion Energy is 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.
Gains on sales of assets increased $453 million, primarily due to the absence of a loss associated with the sale of Kewaunee ($649 million), partially offset by the absence of a gain on the contribution of certain privatization operations to Dominion Privatization ($155 million).
Gains on sales of assets increased $439 million, primarily due to the absence of a loss associated with the sale of Kewaunee ($649 million), partially offset by the absence of a gain on the contribution of certain privatization operations to Dominion Privatization ($155 million).
Dominion Energy does not plan to repurchase shares of common stock in 2024, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization. 80 Capital Expenditures See Note 26 to the Consolidated Financial Statements for Dominion Energy’s historical capital expenditures by segment.
Dominion Energy does not plan to repurchase shares of common stock in 2025, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization. Capital Expenditures See Note 26 to the Consolidated Financial Statements for Dominion Energy’s historical capital expenditures by segment.
Repurchases of Equity Securities In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock. This repurchase program does not include a specific timetable or price or volume targets and may be modified, suspended or terminated at any time.
In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock. This repurchase program does not include a specific timetable or price or volume targets and may be modified, suspended or terminated at any time.
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.
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, 2024 and 2023, Dominion Energy had $78 million and $110 million, respectively, of unrecognized tax benefits.
There were no tests performed in 2023 of long-lived assets which could have resulted in material impairments.
There were no tests performed in 2024 or 2023 of long-lived assets which could have resulted in material impairments.
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.
These shares may either be newly issued or purchased on the open market with proceeds contributed to these plans. In August 2023, Dominion Energy began purchasing its common stock on the open market for these direct stock purchase plans, and in March 2024, began issuing new shares of common stock.
Such obligations include: • Operating and financing lease obligations – See Note 15 to the Consolidated Financial Statements; • Regulatory liabilities – See Note 12 to the Consolidated Financial Statements; • AROs – See Note 14 to the Consolidated Financial Statements; • Employee benefit plan obligations – See Note 22 to the Consolidated Financial Statements; and • Charitable commitments – See Note 23 to the Consolidated Financial Statements.
Such obligations include: • Operating and financing lease obligations – See Note 15 to the Consolidated Financial Statements; • Regulatory liabilities – See Note 12 to the Consolidated Financial Statements; • AROs – See Note 14 to the Consolidated Financial Statements; and • Employee benefit plan obligations – See Note 22 to the Consolidated Financial Statements.
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%.
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, 2024, Dominion Energy’s Consolidated Balance Sheets include $439 million presented within short-term debt, with a weighted-average interest rate of 4.50%.
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.
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 May 2024, Virginia Power remarketed three series of tax-exempt bonds, with an aggregate outstanding principal of $243 million to new investors.
Total estimated costs for such commitments at December 31, 2023 are presented in the table below.
Total estimated costs at December 31, 2024 for such commitments are presented in the table below.
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.
Credit ratings and outlooks as of February 20, 2025 are as follows: Moody’s Standard & Poor’s Fitch Dominion Energy Corporate/Issuer Baa2 BBB+ BBB+ Senior unsecured debt securities Baa2 BBB BBB+ Junior subordinated notes Baa3 BBB- BBB- Preferred stock Ba1 BBB- BBB- Commercial paper P-2 A-2 F2 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.
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.
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. At December 31, 2024 and 2023, Dominion Energy had established $113 million and $130 million, respectively, of valuation allowances.
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.
Dominion Energy’s healthcare cost trend rate assumption as of December 31, 2024 was 7.00% and is expected to gradually decrease to 5.00% by 2032 and continue at that rate for years thereafter.
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.
The following table illustrates the effect on cost of changing the critical actuarial assumptions discussed above, while holding all other assumptions constant: Increase in 2024 Net Periodic Cost Change in Actuarial Assumptions Pension Benefits Other Postretirement Benefits (millions, except percentages) Discount rate (0.25)% $ 11 $ 1 Long-term rate of return on plan assets (0.25)% 26 5 Health care cost trend rate 1% N/A 8 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, 2024 by $187 million and its accumulated postretirement benefit obligation at December 31, 2024 by $23 million, while a 1.00% increase in the healthcare cost trend rate would increase its accumulated postretirement benefit obligation at December 31, 2024 by $61 million.
In addition, there was an increase in net investment earnings on nuclear decommissioning trust funds, a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point, increased unrealized gains on economic hedging activities and a net decrease in dismantling costs associated with the early retirement of certain electric generation facilities at Virginia Power.
In addition, there was an increase in net investment earnings on nuclear decommissioning trust funds, a gain on the sale of Dominion Energy’s remaining noncontrolling interest in Cove Point, increased unrealized gains on economic hedging activities, a net decrease in dismantling costs associated with the early retirement of certain electric generation facilities at Virginia Power and higher market related impacts on pension and other postretirement plans.
In May 2023, the EPA proposed a package of rules designed to reduce CO 2 emissions from certain fossil fuel-fired electric generating units. The proposal sets standards of performance and emission guidelines for CO 2 emissions from new gas-fired combustion turbines and modified coal-fired steam generating units.
In May 2024, the EPA finalized a package of rules designed to reduce CO 2 emissions from certain fossil fuel-fired electric generating units. The final rule sets standards of performance and emission guidelines for CO 2 emissions from new and reconstructed gas-fired combustion turbines and modified coal-fired steam generating units.
Analysis of Cash Flows Presented below are selected amounts related to Dominion Energy’s cash flows: Year Ended December 31, 2023 2022 2021 (millions) Cash, restricted cash and equivalents at beginning of year $ 341 $ 408 $ 247 Cash flows provided by (used in): Operating activities (1) 6,572 3,700 4,037 Investing activities (7,207 ) (6,746 ) (6,247 ) Financing activities 595 2,979 2,371 Net increase (decrease) in cash, restricted cash and equivalents (40 ) (67 ) 161 Cash, restricted cash and equivalents at end of year $ 301 $ 341 $ 408 (1) Includes cash outflows of $78 million, $63 million and $53 million for energy efficiency programs in Virginia and $27 million, $26 million and $21 million for DSM programs in South Carolina for the years ended December 31, 2023, 2022 and 2021, respectively.
Analysis of Cash Flows Presented below are selected amounts related to Dominion Energy’s cash flows: Year Ended December 31, 2024 2023 2022 (millions) Cash, restricted cash and equivalents at beginning of year $ 301 $ 341 $ 408 Cash flows provided by (used in): Operating activities (1) 5,018 6,572 3,700 Investing activities (3,183 ) (7,207 ) (6,746 ) Financing activities (1,771 ) 595 2,979 Net increase (decrease) in cash, restricted cash and equivalents 64 (40 ) (67 ) Cash, restricted cash and equivalents at end of year $ 365 $ 301 $ 341 (1) Includes cash outflows of $83 million, $78 million and $63 million for energy efficiency programs in Virginia and $27 million, $27 million and $26 million for DSM programs in South Carolina for the years ended December 31, 2024, 2023 and 2022, respectively.
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.
These factors include but are not limited to: • Unusual weather conditions and their effect on energy sales to customers and energy commodity prices; • Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities; • The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Companies ’ markets and global supply chains; • Federal, state and local legislative and regulatory developments; • Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives; • The direct and indirect impacts of implementing recommendations resulting from the business review concluded in March 2024; • Risks of operating businesses in regulated industries that are subject to changing regulatory structures; • Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy; • Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models; • Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants; 53 • Risks associated with entities in which the Companies share ownership with third parties, such as Stonepeak’s noncontrolling interest in the CVOW Commercial Project, including risks that result from lack of sole decision-making authority, disputes that may arise between the Companies and third party participants and difficulties in exiting these arrangements; • Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals; • The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects; • Risks and uncertainties that may impact the Companies’ ability to construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers; • Risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from Stonepeak associated with the construction of the CVOW Commercial Project; • Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances; • Cost of environmental strategy and compliance, including those costs related to climate change; • Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities; • Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals; • Unplanned outages at facilities in which the Companies have an ownership interest; • The impact of operational hazards, including adverse developments with respect to plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events; • Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities; • Changes in operating, maintenance and construction costs; • The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers; • Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as threats to cybersecurity; • Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers; • Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000; • Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies; • Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods; • Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner; • The technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies; 54 • Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures; • Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews; • Adverse outcomes in litigation matters or regulatory proceedings; • Counterparty credit and performance risk; • Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy; • Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets; • Fluctuations in interest rates; • Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital; • Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms; • Political and economic conditions, including tariffs, inflation and deflation; • Employee workforce factors including collective bargaining agreements and labor negotiations with union employees; and • Changes in financial or regulatory accounting principles or policies imposed by governing bodies.
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.
All three series of bonds will bear interest at a coupon of 3.80% until May 2027, after which they will bear interest at a market rate to be determined at that time. In 2025, Dominion Energy expects to remarket approximately $225 million of its tax-exempt bonds.
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 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 each of 2024, 2023 and 2022. For 2025, the expected long-term rate of return for the pension cost assumption is 7.35% for Dominion Energy’s plans held as of December 31, 2024.
Dominion 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 Virginia Presented below are operating statistics related to Dominion Energy Virginia’s operations: Year Ended December 31, 2024 % Change 2023 % Change 2022 Electricity delivered (million MWh) 94.5 5 % 89.9 — % 90.0 Electricity supplied (million MWh): Utility 94.6 5 90.0 — 90.2 Non-Jurisdictional 1.7 6 1.6 7 1.5 Degree days (electric distribution and utility service area): Cooling 1,928 17 1,643 (7 ) 1,765 Heating 2,969 5 2,830 (20 ) 3,555 Average electric distribution customer accounts (thousands) 2,782 1 2,752 1 2,724 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution: 2024 VS. 2023 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 92 $ 0.11 Customer usage and other factors (6 ) (0.01 ) Customer-elected rate impacts 63 0.08 Impact of 2023 Virginia legislation (142 ) (0.17 ) Rider equity return 349 0.42 Electric capacity (19 ) (0.02 ) Storm damage and restoration costs (12 ) (0.01 ) Planned outage costs (24 ) (0.03 ) Nuclear production tax credit 89 0.11 Sale of noncontrolling interest (50 ) (0.06 ) Depreciation and amortization (2 ) — Interest expense, net 39 0.05 Other (50 ) (0.07 ) Share dilution — (0.01 ) Change in net income contribution $ 327 $ 0.39 70 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 ) Dominion Energy South Carolina Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations: Year Ended December 31, 2024 % Change 2023 % Change 2022 Electricity delivered (million MWh) 22.0 — % 21.9 (5 ) % 23.0 Electricity supplied (million MWh) 23.1 — 23.0 (5 ) 24.1 Degree days (electric and gas distribution service areas): Cooling 855 18 725 (5 ) 767 Heating 1,078 18 917 (29 ) 1,294 Average electric distribution customer accounts (thousands) 806 2 790 2 777 Gas distribution throughput (bcf): Sales 63 (5 ) 66 (3 ) 68 Average gas distribution customer accounts (thousands) 460 4 443 4 427 Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution: 2024 VS. 2023 Increase (Decrease) Amount EPS (millions, except EPS) Weather $ 37 $ 0.04 Customer usage and other factors 27 0.03 Customer-elected rate impacts 4 — Base rate case & Natural Gas Rate Stabilization Act impacts 41 0.05 Capital cost rider (6 ) (0.01 ) Depreciation and amortization (12 ) (0.01 ) Interest expense, net (21 ) (0.03 ) Other (49 ) (0.05 ) Share dilution — — Change in net income contribution $ 21 $ 0.02 71 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 ) Contracted Energy Presented below are selected operating statistics related to Contracted Energy’s operations: Year Ended December 31, 2024 % Change 2023 % Change 2022 Electricity supplied (million MWh) 18.0 22 % 14.8 (17 ) % 17.8 Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution: 2024 VS. 2023 Increase (Decrease) Amount EPS (millions, except EPS) Margin $ 103 $ 0.12 Planned Millstone outages (1)(2) 119 0.14 Unplanned Millstone outages (1) 16 0.02 Depreciation and amortization 22 0.03 Interest expense, net 14 0.02 Other (14 ) (0.02 ) Share dilution — — Change in net income contribution $ 260 $ 0.31 (1) Includes earnings impact from outage costs and lower energy margins.
In 2023, this primarily included an $825 million charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale that will reverse when the sales are completed, $662 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, including the gain on sale, as well as an impairment charge associated with the East Ohio and Questar Gas Transactions, a $127 million after-tax benefit for derivative mark-to-market changes and a $69 million after-tax charge associated with the impairment of a corporate office building.
In 2023, this primarily included an $835 million charge to reflect the recognition of deferred taxes on the outside basis of stock associated with East Ohio, PSNC, Questar Gas and Wexpro meeting the classification as held for sale that reversed when the sales were completed, $710 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, including the gain on sale, as well as an impairment charge associated with the East Ohio and Questar Gas Transactions, a $127 million after-tax benefit for derivative mark-to-market changes, a $69 million after-tax charge associated with the impairment of a corporate office building and a $27 million after-tax benefit for higher market related impacts on pension and other postretirement plans.
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.
The five largest counterparty exposures, combined, for this category represented approximately 28% of the total net credit exposure. (2) The five largest counterparty exposures, combined, for this category represented approximately 7% of the total net credit exposure. (3) The five largest counterparty exposures, combined, for this category represented approximately 32% of the total net credit exposure.
Other income increased $883 million, primarily due to net investment gains in 2023 compared to net investment losses in 2022 on nuclear decommissioning trust funds ($968 million), partially offset by Dominion Energy’s share of an impairment of certain property, plant and equipment at Align RNG ($35 million).
Other income increased $1.1 billion, primarily due to net investment gains in 2023 compared to net investment losses in 2022 on nuclear decommissioning trust funds ($968 million) and higher market related impacts on pension and other postretirement plans ($218 million), partially offset by Dominion Energy’s share of an impairment of certain property, plant and equipment at Align RNG ($35 million).
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.
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.
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.
Through December 2024, Dominion Energy’s long-term strategic target asset allocation was 26% U.S. equity, 19% non-U.S. equity, 32% fixed income, 3% real assets and 20% other alternative investments. Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies.
In 2022, this primarily included $894 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, a $254 million after-tax benefit for derivative mark-to-market changes and a $78 million loss associated with the sale of Hope.
In 2022, this primarily included $922 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions and Dominion Energy’s noncontrolling interest in Cove Point, a $254 million after-tax benefit for derivative mark-to-market changes, a $251 million after-tax loss for lower market related impacts on pension and other postretirement plans and a $67 million loss associated with the sale of Hope.
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.
The discount rates used to calculate pension cost and other postretirement benefit cost ranged from 5.37% to 5.75% for pension plans and 5.40% to 5.74% for other postretirement benefit plans in 2024, ranged from 5.65% to 5.75% for pension plans and 5.69% to 5.70% for other postretirement benefit plans in 2023 and ranged from 3.06% to 3.19% for pension plans and 3.04% to 5.03% for other postretirement benefit plans in 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.
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, 2024 Joint revolving credit facility (2)(3) $ 6,000 $ 2,061 $ 10 $ 3,929 (1) The weighted-average interest rate of the outstanding commercial paper supported by Dominion Energy’s credit facility was 4.74% at December 31, 2024.
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.
Virginia Power Presented below is a summary of Virginia Power’s consolidated results: Year Ended December 31, 2024 $ Change 2023 $ Change 2022 (millions) Net income attributable to Virginia Power $ 1,910 $ 458 $ 1,452 $ 340 $ 1,112 Overview 2024 VS. 2023 Net income attributable to Virginia Power increased 32%, primarily due to the absence of amortization associated with the 2021 Triennial Review, higher rider equity returns reflecting increased capital investments and an increase in sales to electric utility customers attributable to weather and other customer-related factors, partially offset by a charge for costs not expected to be recovered from customers on the CVOW Commercial Project and the impact of 2023 Virginia legislation. 2023 VS. 2022 Net income attributable to Virginia Power 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.
Other income decreased $146 million, primarily due to net investment losses in 2022 compared to net investment gains in 2021 on nuclear decommissioning trust funds.
Other income increased $131 million, primarily due to net investment gains in 2023 compared to net investment losses in 2022 on nuclear decommissioning trust funds.
During 2023, Dominion Energy issued 1.7 million of such shares and received proceeds of $94 million. Dominion Energy also maintained sales agency agreements to effect sales under an at-the-market program.
During 2024, Dominion Energy issued 2.7 million of such shares and received proceeds of $138 million. Dominion Energy also maintains sales agency agreements to effect sales under an at-the-market program.
These decreases were partially offset by: • A charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery ($65 million); • A charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million); and • A charge associated with the abandonment of certain regulated solar generation and other facilities ($25 million). 69 Other income increased $131 million, primarily due to net investment gains in 2023 compared to net investment losses in 2022 on nuclear decommissioning trust funds.
These decreases were partially offset by: • A charge for an easement related to the CVOW Commercial Project for which Virginia Power will not seek recovery ($65 million); • A charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023 ($36 million); and • A charge associated with the abandonment of certain regulated solar generation and other facilities ($25 million).
Dominion Energy’s total planned capital expenditures for each segment for 2024 are presented in the table below: 2024 (billions) Dominion Energy Virginia (1) $ 9.4 Dominion Energy South Carolina 1.3 Contracted Energy 0.5 Corporate and Other segment (2) 0.7 Total (3) $ 11.8 (1) Includes $3.3 billion for 100% of the CVOW Commercial Project.
Dominion Energy’s total planned capital expenditures for each segment for the next five years are presented in the table below: 2025 2026 2027 2028 2029 Total (billions) Dominion Energy Virginia (1) $ 10.2 $ 8.6 $ 7.8 $ 8.3 $ 8.5 $ 43.4 Dominion Energy South Carolina 1.2 1.3 1.2 1.2 1.3 6.2 Contracted Energy 0.5 0.3 0.3 0.5 0.4 2.0 Corporate and Other segment 0.1 0.1 0.1 0.1 0.1 0.7 Total (2) $ 12.1 $ 10.2 $ 9.5 $ 10.2 $ 10.3 $ 52.3 (1) Includes $3.1 billion in 2025, $1.1 billion in 2026 and $0.1 billion in each of 2027, 2028 and 2029 for 100% of the CVOW Commercial Project.
Electric fuel and other energy-related purchases increased 57%, primarily due to higher commodity costs for electric utilities ($1.2 billion) and an increase in the use of purchased renewable energy credits at Virginia Power ($58 million), which are offset in operating revenue and do not impact net income.
Electric fuel and other energy-related purchases decreased 8%, primarily due to lower commodity costs for electric utilities ($408 million), partially offset by an increase in the use of purchased renewable energy credits at Virginia Power ($47 million), which are offset in operating revenue and do not impact net income.
Electric fuel and other energy-related purchases increased 68%, primarily due to higher commodity costs for electric utilities ($1.1 billion) and an increase in the use of purchased renewable energy credits ($58 million), which are offset in operating revenue and do not impact net income.
Electric fuel and other energy-related purchases decreased 6%, primarily due to lower commodity costs for electric utilities ($226 million), partially offset by an increase in the use of purchased renewable energy credits ($47 million), which are offset in operating revenue and do not impact net income.
In addition to the annual goodwill impairment testing described above, in December 2023, Dominion Energy’s current period calculation of the expected gain or loss on the Questar Gas and East Ohio Transactions resulted in an impairment of the related goodwill totaling $286 million, reflected in discontinued operations in Dominion Energy’s Consolidated Statements of Income.
In addition to the annual goodwill impairment testing described above, Dominion Energy’s calculations during the fourth quarter of 2023 and first quarter of 2024 of the expected gain or loss on the Questar Gas and East Ohio Transactions resulted in an impairment of the related goodwill totaling $238 million and $78 million, respectively, reflected in discontinued operations in Dominion Energy’s Consolidated Statements of Income.
In connection with the 2023 Biennial Review, the Companies have concluded that it is not probable that Virginia Power will have earnings in excess of 70 basis points above its authorized ROE for the period January 1, 2021 through December 31, 2022 currently under review with the Virginia Commission or in excess of an expected authorized ROE of 9.70% for the period January 1, 2023 through December 31, 2024 in connection with the future 2025 Biennial Review.
In connection with the future 2025 Biennial Review, the Companies concluded that it was not probable that Virginia Power would have earnings in excess of an expected authorized ROE of 9.70% for the period January 1, 2023 through December 31, 2024.
(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.
(4) The five largest counterparty exposures, combined, for this category represented approximately 11% of the total net credit exposure. (5) Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements. Fuel and Other Purchase Commitments Dominion Energy is party to various contracts for fuel and purchased power commitments related to both its regulated and nonregulated operations.
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.
(2) Totals may not foot due to rounding. 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.
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.
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.
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 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.
The interpretation of tax laws and associated regulations involves uncertainty since tax authorities may interpret the laws differently. Ultimate resolution or clarification of income tax matters may result in favorable or unfavorable impacts to net income and cash flows, and adjustments to tax-related assets and liabilities could be material.
Ultimate resolution or clarification of income tax matters may result in favorable or unfavorable impacts to net income and cash flows, and adjustments to tax-related assets and liabilities could be material.
The following discusses critical assumptions inherent in determining the fair value of AROs associated with Dominion Energy’s nuclear decommissioning obligations. Dominion Energy obtains from third-party specialists periodic site-specific base year cost studies in order to estimate the nature, cost and timing of planned decommissioning activities for its nuclear plants.
Dominion Energy obtains from third-party specialists periodic site-specific base year cost studies in order to estimate the nature, cost and timing of planned decommissioning activities for its nuclear plants.
Operating Cash Flows Net cash provided by Dominion Energy’s operating activities increased $2.9 billion, inclusive of a $366 million decrease from discontinued operations.
Operating Cash Flows Net cash provided by Dominion Energy’s operating activities decreased $1.6 billion, inclusive of a $448 million decrease from discontinued operations.
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.
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 amended in June 2024, and cross-default provisions.
A regulatory liability, if considered probable, will be recorded in the period such assessment is made or reversed into earnings if no longer probable.
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.
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.
Dominion Energy selected a discount rate ranging from 5.84% to 59 5.87% for pension plans and 5.83% to 5.86% for other postretirement benefit plans for determining its December 31, 2024 projected benefit obligations.
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.
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 April 2023, the EPA released a proposal to tighten aspects of the Mercury and Air Toxics Standards, including the reduction of emissions limits for 83 filterable particulate matter, and requiring the use of continuous emissions monitoring systems to demonstrate compliance.
Recently Issued EPA Rules In May 2024, the EPA released a final rule to tighten aspects of the Mercury and Air Toxics Standards Risk and Technology Review, including the reduction of emissions limits for filterable particulate matter, and requiring the use of continuous emissions monitoring systems to demonstrate compliance.
Business for additional discussion of various significant capital projects currently under development. The above estimates are based on a capital expenditures plan reviewed and endorsed by Dominion Energy’s Board of Directors in January 2024 and are subject to continuing review and adjustment and actual capital expenditures may vary from these estimates.
See Dominion Energy Virginia, Dominion Energy South Carolina and Contracted Energy in Item 1. Business for additional discussion of various significant capital projects currently under development. The above estimates are based on a capital expenditures plan reviewed and endorsed by Dominion Energy’s Board of Directors in early 2025 and are subject to continuing review and adjustment.
Dominion Energy anticipates that the EPA will release additional rulemakings as part of an overall strategy to identify and mitigate PFAS exposure.
Further, Dominion Energy anticipates that the EPA will release additional rulemakings as part of an overall strategy to identify and mitigate PFAS exposure, beyond the national drinking water standards for PFAS issued in April 2024.
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.
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.
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.
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.
The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis.
The registration statement limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis.
These decreases were partially offset by: • A $76 million increase in outage costs at Millstone ($66 million) and Virginia Power ($10 million); • A $32 million increase from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation; and • A $30 million increase in outside services. 64 Depreciation and amortization increased 6%, primarily due to various projects being placed into service ($159 million), partially offset by decrease due to the impairment of certain nonregulated solar generation facilities in 2022 ($19 million).
These decreases were partially offset by: • A $76 million increase in outage costs at Millstone ($66 million) and Virginia Power ($10 million); • A $32 million increase from the combination of certain riders into base rates at Virginia Power as a result of 2023 Virginia legislation; and • A $30 million increase in outside services.
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.
Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures, net of reimbursements from Stonepeak for the CVOW Commercial Project, and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above.
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. 80 Future Environmental Regulations Climate Change The federal government and states in which Dominion Energy operates have announced various commitments to achieving carbon reduction goals.
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.
Dominion Energy calculated its other postretirement benefit cost using an expected long-term rate of return on plan assets assumption of 8.35% for each of 2024, 2023 and 2022. For 2025, the expected long-term rate of return for other postretirement benefit cost assumption is 7.35%.
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.
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. 2025 2026 2027 2028 2029 Total (millions) Purchased electric capacity for utility operations $ 70 $ 71 $ 72 $ 71 $ 71 $ 355 Fuel commitments for utility operations 1,336 673 420 455 414 3,298 Fuel commitments for nonregulated operations 80 73 69 51 86 359 Pipeline transportation and storage 410 380 344 330 313 1,777 Total $ 1,896 $ 1,197 $ 905 $ 907 $ 884 $ 5,789 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.
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).
Income tax expense increased 32%, primarily due to higher pre-tax income ($117 million) and lower investment tax credits ($17 million), partially offset by the absence of 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). 69 SEGMENT RESULTS OF OPERATIONS Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit or loss.
Dominion Energy is evaluating this new guidance and while it cannot currently estimate the potential financial statement impacts, it does not expect a material impact to its results of operations, financial condition and/or cash flows based on its expectation that the East Ohio, PSNC and Questar Gas Transactions will close in 2024. 84
Dominion Energy is evaluating this guidance and while it cannot currently estimate the potential financial statement impacts, it does not expect a material impact to its results of operations. 82
Analysis of Consolidated Operations Presented below are selected amounts related to Virginia Power’s results of operations: Year Ended December 31, 2023 $ Change 2022 $ Change 2021 (millions) Operating revenue $ 9,573 $ (81 ) $ 9,654 $ 2,184 $ 7,470 Electric fuel and other energy-related purchases 2,918 5 2,913 1,178 1,735 Purchased electric capacity 46 — 46 22 24 Other operations and maintenance 1,851 (200 ) 2,051 258 1,793 Depreciation and amortization 1,871 135 1,736 372 1,364 Other taxes 298 (5 ) 303 (23 ) 326 Impairment of assets and other charges (benefits) 115 (442 ) 557 826 (269 ) Other income (expense) 131 131 — (146 ) 146 Interest and related charges 764 122 642 108 534 Income tax expense 389 95 294 (153 ) 447 68 An analysis of Virginia Power’s results of operations follows: 2023 VS. 2022 Operating revenue decreased 1%, primarily reflecting: • A $206 million decrease from the combination of certain riders into base rates as a result of 2023 Virginia legislation; • A $167 million decrease in sales to electric utility retail customers from a decrease in heating degree days during the heating season ($118 million) and a decrease in cooling degree days during the cooling season ($49 million); • An $86 million net decrease from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges; • A $27 million decrease in PJM off-system sales; and • A $19 million decrease from the absence of privatization operations.
Analysis of Consolidated Operations Presented below are selected amounts related to Virginia Power’s results of operations: Year Ended December 31, 2024 $ Change 2023 $ Change 2022 (millions) Operating revenue $ 10,235 $ 662 $ 9,573 $ (81 ) $ 9,654 Electric fuel and other energy-related purchases 2,743 (175 ) 2,918 5 2,913 Purchased electric capacity 68 22 46 — 46 Other operations and maintenance 2,237 386 1,851 (200 ) 2,051 Depreciation and amortization 1,644 (227 ) 1,871 135 1,736 Other taxes 333 35 298 (5 ) 303 Impairment of assets and other charges 292 177 115 (442 ) 557 Other income (expense) 195 64 131 131 — Interest and related charges 848 84 764 122 642 Income tax expense 408 19 389 95 294 Noncontrolling interests (53 ) (53 ) — — — 66 An analysis of Virginia Power’s results of operations follows: 2024 VS. 2023 Operating revenue increased 7%, primarily reflecting: • A $747 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders; • A $130 million increase in sales to electric utility retail customers associated with growth; • A $124 million increase in sales to electric utility retail customers, primarily due to an increase in cooling degree days during the cooling season ($78 million) and an increase in heating degree days during the heating season ($46 million); • An $85 million increase from electric utility customers who elect to pay market based or other negotiated rates, including settlements of economic hedges prior to March 2024; and • An $18 million increase in sales to customers from non-jurisdictional solar generation facilities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

16 edited+2 added−5 removed19 unchanged
Biggest changeAs 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.
Biggest changeAs of December 31, 2024, Dominion Energy and Virginia Power had $10.8 billion and $3.8 billion, respectively, of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except 83 in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
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.
For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in a $7 million and $5 million decrease in earnings at December 31, 2024 and 2023, 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.
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
Based on these credit policies and the Companies’ December 31, 2024 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
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.
As of December 31, 2024 and 2023, Dominion Energy had €1.1 billion and €2.1 billion, respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding.
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 $18 million and $62 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of December 31, 2024 and 2023, respectively.
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.
A hypothetical 10% increase in exchange rates would have resulted in a decrease of $106 million and $202 million in the fair value of Dominion Energy’s foreign currency swaps at December 31, 2024 and 2023, 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.
For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $12 million and $56 million decrease in earnings at December 31, 2024 and 2023, 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.
A hypothetical 10% increase in commodity prices would have resulted in a decrease of $24 million in the fair value of Virginia Power’s commodity-based derivative instruments as of December 31, 2023.
A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $274 million and $156 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2022.
A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $157 million and $155 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2024.
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.
Virginia Power recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $580 million and $448 million for the years ended December 31, 2024 and 2023, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value.
Dominion Energy recorded, in AOCI and regulatory liabilities, a net increase in unrealized 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.
Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded, in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $(28) million and $117 million for the years ended December 31, 2024 and 2023, respectively.
Virginia 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.
Virginia Power recorded, in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $(10) million and $66 million for the years ended December 31, 2024 and 2023, respectively. Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments.
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.
A hypothetical 0.25% decrease in the expected long-term rate of return on plan assets would have had a $31 million impact in both 2024 and 2023 to the expected returns on plan assets. 84 Risk Management Policies The Companies have established operating procedures with corporate management to ensure that proper internal controls are maintained.
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.
These trust funds primarily hold marketable securities that are reported in the Consolidated Balance Sheets at fair value. Dominion Energy recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $1.1 billion and $879 million for the years ended December 31, 2024 and 2023, respectively.
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.
As of December 31, 2023, Dominion Energy and Virginia Power had $16.3 billion and $3.3 billion, respectively, of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
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.
Virginia Power employees participate in these plans. Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns of $738 million and $1.2 billion in 2024 and 2023, respectively, compared to expected returns of $982 million and $1.0 billion, respectively.
Removed
These trust funds primarily hold marketable securities that are reported in the Consolidated Balance Sheets at fair value.
Added
A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $15 million in the fair value of Virginia Power’s commodity-based derivative instruments as of December 31, 2024.
Removed
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
Differences between actual and expected returns on plan assets are immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a plan is determined to qualify for a remeasurement.
Removed
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.
Removed
Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans.
Removed
As such, any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash to be contributed to the employee benefit plans.

Other D 10-K year-over-year comparisons