0000715957 ~~us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateContractMember~~ d:~~DominionEnergyGasHoldingsLLCMember 2019-12-31~~ProvisionForFutureCostOfRemovalMember d:VirginiaElectricAndPowerCompanyMember 2021-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, ~~2020~~2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number	Exact name of registrants as specified in their charters, address of principal executive offices and registrants’ telephone number	I.R.S. Employer Identification Number

001-08489	DOMINION ENERGY, INC.	54-1229715

000-55337	VIRGINIA ELECTRIC AND POWER COMPANY	54-0418825

~~001-37591~~	~~DOMINION ENERGY GAS HOLDINGS, LLC~~	~~46-3639580~~

	120 Tredegar Street Richmond, Virginia 23219 (804) 819-2000

State or other jurisdiction of incorporation or organization of the registrants: Virginia

Securities registered pursuant to Section 12(b) of the Act:


Registrant	Trading Symbol	Title of Each Class	Name of Each Exchange on Which Registered
DOMINION ENERGY, INC.	D	Common Stock, no par value	New York Stock Exchange
	DRUA	2016 Series A 5.25% Enhanced Junior Subordinated Notes	New York Stock Exchange
~~DOMINION ENERGY GAS~~ ~~HOLDINGS, LLC~~	DCUE	2019 Series A Corporate Units ~~2014 Series C 4.6% Senior Notes~~	~~New York Stock Exchange~~ New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

~~Dominion Energy Gas Holdings, LLC Yes~~ ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Dominion Energy, Inc. Yes ☒ No ☐ Virginia Electric and Power Company Yes ☒ No ☐

~~Dominion Energy Gas Holdings, LLC Yes~~ ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Dominion Energy, Inc.

Large accelerated filer	☒		Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐		Smaller reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Virginia Electric and Power Company

~~Large accelerated filer~~	☐		~~Accelerated filer~~	☐	~~Emerging growth company~~	☐
~~Non-accelerated filer~~	☒		~~Smaller reporting company~~	☐

~~Dominion Energy Gas Holdings, LLC~~

Large accelerated filer	☐		Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☒		Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Dominion Energy, Inc. Yes ☐ No ☒ Virginia Electric and Power Company Yes ☐ No ☒

~~Dominion Energy Gas Holdings, LLC Yes~~ ☐ No ☒

At April ~~17, 2020,~~23, 2021, the latest practicable date for determination, Dominion Energy, Inc. had ~~839,251,000~~806,524,337 shares of common stock outstanding and Virginia Electric and Power Company had 274,723 shares of common stock outstanding. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company’s common stock. ~~Dominion Energy, Inc. holds all of the membership interests of Dominion Energy Gas Holdings, LLC.~~

This combined Form 10-Q represents separate filings by Dominion Energy, Inc., and Virginia Electric and Power ~~Company and Dominion Energy Gas Holdings, LLC.~~Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Virginia Electric and Power Company ~~and Dominion Energy Gas Holdings, LLC make~~makes no ~~representations~~representation as to the information relating to Dominion Energy, Inc.’s other operations.

VIRGINIA ELECTRIC AND POWER COMPANY ~~AND DOMINION ENERGY GAS HOLDINGS, LLC MEET~~MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND ~~ARE~~IS FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE FORMAT.

COMBINED INDEX

		Page Number
	Glossary of Terms	3

	PART I. Financial Information	8

Item 1.	Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9269
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	~~106~~82
Item 4.	Controls and Procedures	~~107~~83

	PART II. Other Information	~~108~~

Item 1.	Legal Proceedings	~~108~~84
Item 1A.	Risk Factors	~~108~~84
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~109~~84
Item 6.	Exhibits	~~110~~85

GLOSSARY OF TERMS

The following abbreviations or acronyms used in this Form 10-Q are defined below:

Abbreviation or Acronym		Definition
2019 Equity Units		Dominion Energy’s 2019 Series A Equity Units issued in June 2019, initially in the form of 2019 Series A Corporate Units, consisting of a stock purchase contract and a 1/10 interest in a share of the Series A Preferred Stock
2017 Tax Reform Act		An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017
2021 Triennial Review		Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the four successive 12-month test periods beginning January 1, 2017 and ending December 31, 2020
ACE Rule		Affordable Clean Energy Rule
AFUDC		Allowance for funds used during construction
~~AMI~~Align RNG		~~Advanced Metering Infrastructure~~Align RNG, LLC, a joint venture between Dominion Energy and Smithfield Foods, Inc.
AOCI		Accumulated other comprehensive income (loss)
ARO		Asset retirement obligation
Atlantic Coast Pipeline		Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy and Duke Energy
Atlantic Coast Pipeline Project		~~The~~A previously proposed approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which ~~will be~~would have been owned by Dominion Energy and Duke ~~to be constructed and operated by DETI~~
~~BACT~~		~~Best available control technology~~Energy
bcf		Billion cubic feet
~~Blue Racer~~Bear Garden		~~Blue Racer~~A 590 MW combined-cycle, natural gas-fired power station in Buckingham County, Virginia
BHE		The legal entity, Berkshire Hathaway Energy Company, one or more of its consolidated subsidiaries (including Dominion Energy Gas, Dominion Energy Midstream ~~LLC, a joint venture between Caiman~~and Cove Point effective November 1, 2020), or the entirety of Berkshire Hathaway Energy ~~II, LLC~~Company and ~~FR BR Holdings, LLC~~its consolidated subsidiaries
Brookfield		Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management Inc.
CAA		Clean Air Act
~~CARES Act~~		~~Coronavirus Aid, Relief and Economic Security Act, enacted on March 27, 2020~~
CCR		Coal combustion residual
CCRO		Customer credit reinvestment offset
CEO		Chief Executive Officer
CEP		Capital Expenditure Program, as established by House Bill 95, Ohio legislation enacted in 2011, deployed by East Ohio to recover certain costs associated with capital investment
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund
CFO		Chief Financial Officer
CO₂		Carbon dioxide
Colonial Trail West		A 142 MW utility-scale solar power station located in Surry County, Virginia
Companies		Dominion Energy and Virginia Power, ~~and Dominion Energy Gas,~~ collectively
Contracted ~~Generation~~Assets		Contracted ~~Generation~~Assets operating segment
Cooling degree days		Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, or 75 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 75 degrees, as applicable, and the average temperature for that day
Cove Point		Cove Point LNG, LP (formerly known as Dominion Energy Cove Point LNG, LPLP)

~~Cove Point LNG Facility~~		~~An LNG import/export and storage facility, including the Liquefaction Facility, located on the Chesapeake Bay in Lusby, Maryland~~
CPCN		Certificate of Public Convenience and Necessity

CWA		Clean Water Act
DCP		The legal entity, CPMLP Holding Company, LLC (formerly known as Dominion Cove Point, ~~LLC,~~LLC), one or more of its consolidated subsidiaries (including Dominion Energy Midstream), or the entirety of ~~Dominion Cove Point,~~CPMLP Holding Company, LLC and its consolidated subsidiaries
~~DECG~~		~~Dominion Energy Carolina Gas Transmission, Inc.~~
DECGS		Carolina Gas Services, Inc. (formerly known as Dominion Energy Carolina Gas Services, Inc.)
DEQPS		Dominion Energy Questar Pipeline Services, Inc.
DES		Dominion Energy Services, Inc.
DESC		The legal entity, Dominion Energy South Carolina, Inc., one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated entities
DETI		Eastern Gas Transmission and Storage, Inc. (formerly known as Dominion Energy Transmission, Inc.)
DGI		Dominion Generation, Inc.
DGP		Eastern Gathering and Processing, Inc. (formerly known as Dominion Gathering and Processing, Inc.)
DMLPHCII		Eastern MLP Holding Company II, LLC (formerly known as Dominion MLP Holding Company II, ~~LLC~~LLC)
DOE		U.S. Department of Energy
Dominion Energy		The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia ~~Power and Dominion Energy Gas)~~Power) or operating segments, or the entirety of Dominion Energy, Inc. and its consolidated subsidiaries
Dominion Energy Gas		The legal entity, Eastern Energy Gas Holdings, LLC (formerly known as Dominion Energy Gas Holdings, ~~LLC,~~LLC), one or more of its consolidated subsidiaries ~~or operating segment,~~(consisting of DETI, DCP, DMLPHCII and Dominion Iroquois), or the entirety of ~~Dominion~~Eastern Energy Gas Holdings, LLC and its consolidated subsidiaries
~~Dominion Energy Gas~~ ~~Restructuring~~		~~The acquisition of DCP and DMLPHCII from, and the disposition of East Ohio and DGP to, Dominion~~
~~Dominion Energy Gas~~ ~~Restructuring~~		~~Energy by Dominion Energy Gas on November 6, 2019~~
Dominion Energy Midstream		The legal entity, Northeast Midstream Partners, LP (formerly known as Dominion Energy Midstream Partners, ~~LP,~~LP), one or more of its consolidated subsidiaries, or the entirety of ~~Dominion Energy~~Northeast Midstream Partners, LP and its consolidated subsidiaries
Dominion Energy Questar Pipeline		The legal entity, Dominion Energy Questar Pipeline, LLC, one or more of its consolidated subsidiaries or(including its 50% noncontrolling interest in White River Hub), or the entirety of Dominion Energy Questar Pipeline, LLC and its consolidated subsidiaries
Dominion Energy South Carolina		Dominion Energy South Carolina operating segment
Dominion Energy Virginia		Dominion Energy Virginia operating segment
Dominion Iroquois		The legal entity Iroquois Inc. (formerly known as Dominion Iroquois, Inc.), one or more of its consolidated subsidiaries, or the entirety of Iroquois, Inc. and its consolidated subsidiaries, which held a 50% noncontrolling interest in Iroquois
DSM		Demand-side management
Dth		Dekatherm
Duke Energy		The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy Corporation and its consolidated subsidiaries
East Ohio		The East Ohio Gas Company, doing business as Dominion Energy Ohio
EPA		U.S. Environmental Protection Agency
EPS		Earnings per common share
~~Export Customers~~		~~ST Cove Point, LLC, a joint venture of Sumitomo Corporation and Tokyo Gas Co., LTD., and GAIL Global (USA) LNG, LLC~~
FERC		Federal Energy Regulatory Commission
FILOT		Fee in lieu of taxes

Four Brothers		Four Brothers Solar, LLC, a limited liability company owned by Dominion Energy and Four Brothers Holdings, LLC, a subsidiary of GIP
Fowler Ridge		Fowler I Holdings LLC, a wind-turbine facility in Benton County, Indiana
FTRs		Financial transmission rights
GAAP		U.S. generally accepted accounting principles
~~Gal~~		~~Gallon~~
Gas Distribution		Gas Distribution ~~operating segment~~
~~Gas Transmission & Storage~~		~~Gas Transmission & Storage~~ operating segment
GENCO		South Carolina Generating Company, Inc.
GHG		Greenhouse gas
GIP		The legal entity, Global Infrastructure Partners, one or more of its consolidated subsidiaries, or the entirety of Global Infrastructure Partners and its consolidated subsidiaries
Granite Mountain		Granite Mountain Holdings, LLC, a limited liability company owned by Dominion Energy and Granite Mountain Renewables, LLC, a subsidiary of GIP
Grassfield Solar		A proposed 20 MW utility-scale solar power station located in Chesapeake, Virginia
Greensville County		A 1,588 MW combined-cycle, natural gas-fired power station in Greensville County, Virginia
GT&S Transaction		The sale by Dominion Energy to BHE of Dominion Energy Gas, DGP, DECGS, Eastern Energy Field Services, Inc. (formerly known as Dominion Energy Field Services, Inc.) and Modular LNG Holdings, Inc. (formerly known as Dominion Modular LNG Holdings, Inc.) (which holds a 50% noncontrolling interest in JAX LNG) pursuant to a purchase and sale agreement entered into on July 3, 2020, which was completed on November 1, 2020
GTSA		Virginia Grid Transformation and Security Act of 2018
GW		~~Gigawatt~~
Heating degree days		Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, or 60 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 60 degrees, as applicable, and the average temperature for that day
~~Hope~~		~~Hope Gas, Inc., doing business as Dominion Energy West Virginia~~
Iron Springs		Iron Springs Holdings, LLC, a limited liability company owned by Dominion Energy and Iron Springs Renewables, LLC, a subsidiary of GIP
Iroquois		Iroquois Gas Transmission System, L.P.
ISO		Independent system operator
~~Jones Act~~JAX LNG		~~The Coastwise Merchandise Statute (commonly known as~~JAX LNG, LLC, an LNG supplier in Florida serving the ~~Jones Act) 46 U.S.C. 55102 regulating U.S. maritime commerce~~
~~June 2006 hybrids~~		~~Dominion Energy’s 2006 Series A Enhanced Junior Subordinated Notes due 2066~~marine and LNG markets
Kewaunee		Kewaunee nuclear power station
~~Liquefaction Facility~~kV		~~A natural gas export/liquefaction facility at the Cove Point LNG Facility~~Kilovolt
LNG		Liquefied natural gas
~~MATS~~		~~Utility Mercury and Air Toxics Standard Rule~~
MD&A		Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGD		Million gallons a day
Millstone		Millstone nuclear power station
Millstone 2019 power purchase agreements		Power purchase agreements with Eversource Energy and The United Illuminating Company for Millstone to provide nine million MWh per year of electricity for ten years
MW		Megawatt
MWh		Megawatt hour
NAV		Net asset value
~~NGL~~		~~Natural gas liquid~~
NND Project		V.C. Summer Units 2 and 3 nuclear development project under which DESC and Santee Cooper undertook to construct two Westinghouse AP1000 Advanced Passive Safety nuclear units in Jenkinsville, South Carolina
Norge Solar		A proposed 20 MW utility-scale solar power station located in James City County, Virginia

North Carolina Commission		North Carolina Utilities Commission
NO_X		Nitrogen oxide
NRC		U.S. Nuclear Regulatory Commission
~~NSPS~~		~~New Source Performance Standards~~
~~NWP 12~~		A nationwide permit from the Army Corp of Engineers authorizing activities required for the construction, maintenance, repair and removal of utility lines, including electric transmission, gas pipelines, water and communications conduit and associated facilities in waters of the U.S.
~~NYSE~~		~~New York Stock Exchange~~
~~Ohio Commission~~		~~Public Utilities Commission of Ohio~~
Order 1000		Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development
PIR		Pipeline Infrastructure Replacement program deployed by East Ohio
PJM		PJM Interconnection, ~~L.L.C.~~
~~Predecessor~~		~~Dominion Energy as the predecessor for accounting purposes for the period of Dominion Energy’s ownership of DCP and DMLPHCII until the completion of the Dominion Energy Gas Restructuring~~LLC
PSD		Prevention of significant deterioration
PSNC		Public Service Company of North Carolina, Incorporated, doing business as Dominion Energy North Carolina
Q-Pipe Transaction		The proposed sale by Dominion Energy to BHE of Dominion Energy Questar Pipeline, DEQPS and QPC Holding Company, LLC (including its subsidiary Questar Southern Trails Pipeline Company), pursuant to a purchase and sale agreement entered into on October 5, 2020
Questar Gas		Questar Gas Company, doing business as Dominion Energy Utah, Dominion Energy Wyoming and Dominion Energy Idaho
~~RCC~~Regulation Act		~~Replacement Capital Covenant~~
~~RGGI~~		~~Regional Greenhouse Gas Initiative~~Legislation effective July 1, 2007, that amended the Virginia Electric Utility Restructuring Act and fuel factor statute, which legislation is also known as the Virginia Electric Utility Regulation Act, as amended in 2015 and 2018
RICO		Racketeer Influenced and Corrupt Organizations Act
Rider B		A rate adjustment clause associated with the recovery of costs related to the conversion of three of Virginia Power’s coal-fired power stations to biomass
Rider CCR		A rate adjustment clause associated with the recovery of costs related to the removal of CCR at certain power stations
Rider CE		A rate adjustment clause associated with the recovery of costs related to certain renewable generation facilities in Virginia
Rider GV		A rate adjustment clause associated with the recovery of costs related to Greensville County
Rider R		A rate adjustment clause associated with the recovery of costs related to Bear Garden
Rider S		A rate adjustment clause associated with the recovery of costs related to the Virginia City Hybrid Energy Center
Rider U		A rate adjustment clause associated with the recovery of costs of new underground distribution facilities
Rider US-3		A rate adjustment clause associated with the recovery of costs related to Colonial Trail West and Spring Grove 1
Rider US-4		A rate adjustment clause associated with the recovery of costs related to Sadler Solar
Rider W		A rate adjustment clause associated with the recovery of costs related to Warren County
ROE		Return on equity
RTO		Regional transmission organization
Sadler Solar		An approximately 100 MW proposed utility-scale solar power station located in Greensville County, Virginia
Santee Cooper		South Carolina Public Service Authority
SBL Holdco		SBL Holdco, LLC, a wholly-owned subsidiary of DGI
SCANA		The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA Corporation and its consolidated subsidiaries
SCANA Combination		Dominion Energy’s acquisition of SCANA completed on January 1, 2019 pursuant to the terms of the agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA

SCANA Merger Approval Order		Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination
SCDHEC		South Carolina Department of Health and Environmental Control
SCDOR		South Carolina Department of Revenue
SEC		U.S. Securities and Exchange Commission
~~SEMI~~		~~SCANA Energy Marketing, LLC (formerly known as SCANA Energy Marketing, Inc.), a subsidiary of SCANA through December 2019, and effective December 2019, a subsidiary of Wrangler~~
~~September 2006 hybrids~~		~~Dominion Energy’s 2006 Series B Enhanced Junior Subordinated Notes due 2066~~

Series A Preferred Stock		Dominion Energy’s 1.75% Series A Cumulative Perpetual Convertible Preferred Stock, without par value, with a liquidation preference of $1,000 per share
Series B Preferred Stock		Dominion Energy’s 4.65% Series B Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share
South Carolina Commission		Public Service Commission of South Carolina
~~Southern~~		~~The legal entity, The Southern Company, one or more of its consolidated subsidiaries, or the entirety of The Southern Company and its consolidated subsidiaries~~
Spring Grove 1		~~An approximately~~A 98 MW ~~proposed~~ utility-scale solar power station located in Surry County, Virginia
Standard & Poor’s		Standard & Poor’s Ratings Services, a division of S&P Global Inc.
Summer		V.C. Summer nuclear power station
Surry		Surry nuclear power station
Sycamore Solar		A proposed 42 MW utility-scale solar power station located in Pittsylvania County, Virginia
Terra Nova Renewable Partners		A partnership comprised primarily of institutional investors advised by J.P. Morgan Asset Management-Global Real Assets
Three Cedars		Granite Mountain and Iron Springs, collectively
Utah Commission		Utah Public Service Commission
VCEA		Virginia Clean Economy Act ~~passed by the Virginia General Assembly in~~of March 2020 ~~and enacted on April 11, 2020~~
~~VDEQ~~		~~Virginia Department of Environmental Quality~~
VEBA		Voluntary ~~Employees'~~Employees’ Beneficiary Association
VIE		Variable interest entity
Virginia City Hybrid Energy Center		A 610 MW baseload carbon-capture compatible, clean coal powered electric generation facility in Wise County, Virginia
Virginia Commission		Virginia State Corporation Commission
Virginia Power		The legal entity, Virginia Electric and Power Company, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries
~~VOC~~Warren County		~~Volatile organic compounds~~A 1,350 MW combined-cycle, natural gas-fired power station in Warren County, Virginia
WECTEC		WECTEC Global Project Services, Inc., a wholly-owned subsidiary of Westinghouse
Westinghouse		Westinghouse Electric Company LLC
Wexpro		The legal entity, Wexpro Company, one or more of its consolidated subsidiaries, or the entirety of Wexpro Company and its consolidated subsidiaries
White River Hub		White River Hub, LLC
Wrangler		Wrangler Retail Gas Holdings, LLC, a partnership between Dominion Energy and Interstate Gas Supply, Inc.
~~Wyoming Commission~~		~~Wyoming Public Service Commission~~

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,
	2020			2019			2021		2020
(millions, except per share amounts)
Operating Revenue⁽¹⁾	$	4,496		$	3,858		$	3,870	$	3,938
Operating Expenses
Electric fuel and other energy-related purchases		668			791			550		657
Purchased electric capacity		2			39			11		2
Purchased gas		427			730			484		434
Other operations and maintenance		1,043			1,002			987		891
Depreciation, depletion and amortization		673			651			608		578
Other taxes		284			292			257		240
Impairment of assets and other charges		768			835			95		768
Total operating expenses		3,865			4,340			2,992		3,570
Income (loss) from operations		631			(482	)
Income from operations								878		368
Other income (expense)		(399	)		388			367		(454	)
Interest and related charges		490			469			53		432
Loss from operations including noncontrolling interests before income tax expense (benefit)		(258	)		(563	)
Income (loss) from continuing operations including noncontrolling interests before income tax expense (benefit)								1,192		(518	)
Income tax expense (benefit)		(19	)		114			212		(50	)
Net Loss Including Noncontrolling Interests		(239	)		(677	)
Net Income (Loss) From Continuing Operations Including Noncontrolling Interests								980		(468	)
Net Income From Discontinued Operations Including Noncontrolling Interests⁽¹⁾⁽²⁾								28		229
Net Income (Loss) Including Noncontrolling Interests								1,008		(239	)
Noncontrolling Interests		31			3			—		31
Net Loss Attributable to Dominion Energy	$	(270	)	$	(680	)
Earnings Per Common Share
Net loss attributable to Dominion Energy - Basic	$	(0.34	)	$	(0.86	)
Net loss attributable to Dominion Energy - Diluted		(0.34	)		(0.86	)
Net Income (Loss) Attributable to Dominion Energy							$	1,008	$	(270	)
Amounts attributable to Dominion Energy
Net Income (Loss) from continuing operations							$	980	$	(466	)
Net Income from discontinued operations								28		196
Net Income (Loss) attributable to Dominion Energy							$	1,008	$	(270	)
EPS - Basic
Net income (loss) from continuing operations							$	1.19	$	(0.57	)
Net income from discontinued operations								0.04		0.23
Net income (loss) attributable to Dominion Energy							$	1.23	$	(0.34	)
EPS - Diluted
Net income (loss) from continuing operations							$	1.19	$	(0.57	)
Net income from discontinued operations								0.04		0.23
Net income (loss) attributable to Dominion Energy							$	1.23	$	(0.34	)

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

(2)	Includes income tax expense of $7 million and $31 million for the three months ended March 31, 2021 and 2020, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended March 31,

2020

2019

(millions)

Net loss including noncontrolling interests

$
(239
)

$
(677
)
Other comprehensive income (loss), net of taxes:

Net deferred losses on derivatives-hedging activities⁽¹⁾

(266
)

(24
)
Changes in unrealized net gains on investment
securities⁽²⁾

9

16

Amounts reclassified to net income (loss):

Net derivative (gains) losses-hedging activities⁽³⁾

22

(31
)
Net realized (gains) losses on investment securities⁽⁴⁾

(9
)

—

Net pension and other postretirement benefit costs⁽⁵⁾

19

8

Total other comprehensive loss

(225
)

(31
)
Comprehensive loss including noncontrolling interests

(464
)

(708
)
Comprehensive income attributable to noncontrolling interests

31

3

Comprehensive loss attributable to Dominion Energy

$
(495
)

$
(711
)

	Three Months Ended March 31,
	2021			2020
(millions)
Net income (loss) including noncontrolling interests	$	1,008		$	(239	)
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾		39			(266	)
Changes in unrealized net gains (losses) on investment securities⁽²⁾		(31	)		9
Changes in net unrecognized pension and other postretirement benefit costs⁽³⁾		6			—
Amounts reclassified to net income (loss):
Net derivative losses-hedging activities⁽⁴⁾		13			22
Net realized (gains) losses on investment securities⁽⁵⁾		1			(9	)
Net pension and other postretirement benefit costs⁽⁶⁾		18			19
Total other comprehensive income (loss)		46			(225	)
Comprehensive income (loss) including noncontrolling interests		1,054			(464	)
Comprehensive income attributable to noncontrolling interests		—			31
Comprehensive income (loss) attributable to Dominion Energy	$	1,054		$	(495	)

(1)	Net of ~~$93~~$(13) million and $5$93 million tax for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, respectively.

(2)	Net of ~~$(4)~~$10 million and ~~$(6)~~$(4) million tax for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, respectively.

(3)	Net of ~~$(7)~~$(4) million and ~~$10~~$0 million tax for the three months ended March 31, 2021 and 2020, ~~and 2019, respectively.~~respectively.

(4)	Net of $4$(4) million and $—$(7) million tax for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, respectively.

(5)	Net of ~~$(5)~~$0 million and ~~$(14)~~$4 million tax for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, respectively.

(6)	Net of $(7) million and $(5) million tax for the three months ended March 31, 2021 and 2020, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2020			December 31, 2019⁽¹⁾			March 31, 2021			December 31, 2020⁽¹⁾
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	1,192		$	166		$	477		$	172
Customer receivables (less allowance for doubtful accounts of $20 at both dates)		2,177			2,278
Customer receivables (less allowance for doubtful accounts of $39 and $42)								1,841			2,295
Other receivables (less allowance for doubtful accounts of $3 at both dates)⁽²⁾		248			367			239			212
Inventories		1,677			1,742			1,476			1,550
Regulatory assets		668			879			650			699
Other		574			656			479			476
Current assets held for sale								1,500			1,482
Total current assets		6,536			6,088			6,662			6,886
Investments
Nuclear decommissioning trust funds		5,313			6,192			7,139			6,900
Investment in equity method affiliates		1,886			1,646			2,949			2,934
Other		376			379			405			404
Total investments		7,575			8,217			10,493			10,238
Property, Plant and Equipment
Property, plant and equipment		95,341			97,466			84,035			82,959
Accumulated depreciation, depletion and amortization		(27,945	)		(28,384	)		(25,614	)		(25,111	)
Total property, plant and equipment, net		67,396			69,082			58,421			57,848
Deferred Charges and Other Assets
Goodwill		8,946			8,946			7,381			7,381
Regulatory assets		9,564			7,687			8,793			9,133
Other		4,109			3,803			4,953			4,419
Total deferred charges and other assets		22,619			20,436			21,127			20,933
Total assets	$	104,126		$	103,823		$	96,703		$	95,905

(1)	Dominion Energy’s Consolidated Balance Sheet at December 31, ~~2019~~2020 has been derived from the audited Consolidated Balance Sheet at that date.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾
(millions)
LIABILITIES AND EQUITY
Current Liabilities
Securities due within one year	$	2,639		$	1,937
Supplemental 364-Day credit facility borrowings		—			225
Short-term debt		2,815			895
Accounts payable		848			944
Accrued interest, payroll and taxes		957			1,133
Regulatory liabilities		641			809
Liability to Atlantic Coast Pipeline		97			1,052
Q-Pipe Transaction deposit		1,290			1,290
Other⁽²⁾		1,924			1,933
Current liabilities held for sale		625			625
Total current liabilities		11,836			10,843
Long-Term Debt
Long-term debt		30,209			30,915
Junior subordinated notes		2,162			2,161
Other		877			881
Total long-term debt		33,248			33,957
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		6,202			5,953
Regulatory liabilities		10,202			10,187
Other		8,177			8,504
Total deferred credits and other liabilities		24,581			24,644
Total liabilities		69,665			69,444
Commitments and Contingencies (see Note 17)
Equity
Preferred stock (See Note 16)		2,387			2,387
Common stock – no par⁽³⁾		21,310			21,258
Retained earnings		4,673			4,189
Accumulated other comprehensive loss		(1,671	)		(1,717	)
Total shareholders' equity		26,699			26,117
Noncontrolling interests		339			344
Total equity		27,038			26,461
Total liabilities and equity	$	96,703		$	95,905

(1)	Dominion Energy’s Consolidated Balance Sheet at December 31, 2020 has been derived from the audited Consolidated Balance Sheet at that date.

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

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

~~DOMINION ENERGY, INC.~~

~~CONSOLIDATED BALANCE SHEETS—(Continued)~~

~~(Unaudited)~~

March 31, 2020

December 31, 2019⁽¹⁾

(millions)

LIABILITIES AND EQUITY

Current Liabilities

Securities due within one year

$
2,919

$
3,162

Short-term debt

2,190

911

Accounts payable

842

1,115

Accrued interest, payroll and taxes

1,089

1,323

Regulatory liabilities

641

497

Reserves for SCANA legal proceedings

560

696

Derivative liabilities

793

408

Other⁽²⁾

1,414

1,827

Total current liabilities

10,448

9,939

Long-Term Debt

Long-term debt

31,097

30,313

Junior subordinated notes

3,407

3,406

Finance leases

111

105

Total long-term debt

34,615

33,824

Deferred Credits and Other Liabilities

Deferred income taxes and investment tax credits

6,158

6,277

Regulatory liabilities

10,589

11,001

Derivative liabilities

853

332

Other⁽²⁾

8,711

8,417

Total deferred credits and other liabilities

26,311

26,027

Total liabilities

71,374

69,790

Commitments and Contingencies (see Note 17)

Equity

Preferred stock (See Note 16)

2,387

2,387

Common stock – no par⁽³⁾

23,902

23,824

Retained earnings

6,455

7,576

Accumulated other comprehensive loss

(2,018
)

(1,793
)
Total shareholders' equity

30,726

31,994

Noncontrolling interests

2,026

2,039

Total equity

32,752

34,033

Total liabilities and equity

$
104,126

$
103,823

~~(1) Dominion Energy’s Consolidated Balance Sheet at December 31, 2019 has been derived from the audited Consolidated Balance Sheet at that date.~~

~~(2) See Note 10 for amounts attributable to related parties~~

~~(3) 1.8 billion shares authorized; 839 million shares and 838 million shares outstanding at March 31, 2020 and December 31, 2019, respectively.~~

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

~~DOMINION ENERGY, INC.~~

~~CONSOLIDATED STATEMENTS OF EQUITY~~

~~(Unaudited)~~

Preferred Stock

Common Stock

Dominion Energy Shareholders

Total

Shares

Amount

Shares

Amount

Retained Earnings

AOCI

Shareholders'
Equity

Noncontrolling
Interests

Total
Equity

(millions, except per share amounts)

December 31, 2018

681

$
12,588

$
9,219

$
(1,700
)

$
20,107

$
1,941

$
22,048

Net income (loss) including noncontrolling interests

(680
)

(680
)

3

(677
)
Issuance of common stock

3

247

247

247

Acquisition of SCANA

96

6,818

6,818

6,818

Acquisition of public interest in Dominion Energy Midstream

22

1,181

1,181

(1,221
)

(40
)
Dividends ($0.9175 per common share) and distributions

(733
)

(733
)

(33
)

(766
)
Other comprehensive loss, net of tax

(31
)

(31
)

(31
)
March 31, 2019

—

$
—

802

$
20,834

$
7,806

$
(1,731
)

$
26,909

$
690

$
27,599

December 31, 2019

2

$
2,387

838

$
23,824

$
7,576

$
(1,793
)

$
31,994

$
2,039

$
34,033

Cumulative-effect of changes in accounting principles

(48
)

(48
)

(48
)
Net income (loss) including noncontrolling interests

(270
)

(270
)

31

(239
)
Issuance of stock

1

78

78

78

Preferred stock dividends (See Note 16)

(16
)

(16
)

(16
)
Common stock dividends ($0.940 per share) and distributions

(788
)

(788
)

(44
)

(832
)
Other comprehensive loss, net of tax

(225
)

(225
)

(225
)
Other

1

1

1

March 31, 2020

2

$
2,387

839

$
23,902

$
6,455

$
(2,018
)

$
30,726

$
2,026

$
32,752

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

~~DOMINION ENERGY, INC.~~

~~CONSOLIDATED STATEMENTS OF CASH FLOWS~~

~~(Unaudited)~~

Three Months Ended March 31,

2020

2019

(millions)

Operating Activities

Net loss including noncontrolling interests

$
(239
)

$
(677
)
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities:

Depreciation, depletion and amortization (including nuclear fuel)

759

734

Deferred income taxes and investment tax credits

(65
)

106

Provision for refunds and rate credits to electric utility customers

—

988

Impairment of assets and other charges

768

835

Net losses (gains) on nuclear decommissioning trust funds and other investments

526

(271
)
Revision to future ash pond and landfill closure costs

—

(113
)
Other adjustments

4

(11
)
Changes in:

Accounts receivable

245

153

Inventories

71

53

Deferred fuel and purchased gas costs, net

162

27

Prepayments

38

89

Accounts payable

(164
)

(284
)
Accrued interest, payroll and taxes

(234
)

(329
)
Customer deposits

(13
)

(35
)
Margin deposit assets and liabilities

46

93

Other operating assets and liabilities

(271
)

(187
)
Net cash provided by operating activities

1,633

1,171

Investing Activities

Plant construction and other property additions (including nuclear fuel)

(1,462
)

(1,002
)
Cash and restricted cash acquired in the SCANA Combination

—

389

Acquisition of solar development projects

(8
)

(29
)
Proceeds from sales of securities

602

506

Purchases of securities

(631
)

(494
)
Proceeds from sales of assets and equity method investments

14

154

Contributions to equity method affiliates

(11
)

(69
)
Acquisitions of equity method investments

(178
)

—

Other

33

(7
)
Net cash used in investing activities

(1,641
)

(552
)
Financing Activities

Issuance of short-term debt, net

1,279

1,905

Issuance of short-term notes

500

—

Repayment of credit facility borrowings

—

(113
)
Issuance of long-term debt

950

600

Repayment of long-term debt, including redemption premiums

(932
)

(2,217
)
Issuance of common stock

78

247

Common dividend payments

(788
)

(733
)
Other

(81
)

(72
)
Net cash provided by (used in) financing activities

1,006

(383
)
Increase in cash, restricted cash and equivalents

998

236

Cash, restricted cash and equivalents at beginning of period

269

391

Cash, restricted cash and equivalents at end of period

$
1,267

$
627

Supplemental Cash Flow Information

Significant noncash investing and financing activities:⁽¹⁾⁽²⁾

Accrued capital expenditures

$
343

$
201

Financing leases

17

11

~~(1)~~(3)

~~See Note 3 for noncash investing~~1.8 billion shares authorized; 806 million shares outstanding at both March 31, 2021 and ~~financing activities related to the SCANA Combination.~~

~~(2)~~

~~See Note 16 for noncash financing activities related to the acquisition of the public interest in Dominion Energy Midstream.~~December 31, 2020.

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

	Preferred Stock				Common Stock				Dominion Energy Shareholders						Total
	Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Shareholders' Equity			Noncontrolling Interests			Total Equity
(millions, except per share amounts)
December 31, 2019		2	$	2,387		838	$	23,824	$	7,576		$	(1,793	)	$	31,994		$	2,039		$	34,033
Cumulative-effect of changes in accounting principles										(48	)					(48	)					(48	)
Net income (loss) including noncontrolling interests										(270	)					(270	)		31			(239	)
Issuance of stock						1		78								78						78
Preferred stock dividends (See Note 16)										(16	)					(16	)					(16	)
Common stock dividends ($0.940 per share) and distributions										(788	)					(788	)		(44	)		(832	)
Other comprehensive loss, net of tax													(225	)		(225	)					(225	)
Other										1						1						1
March 31, 2020		2	$	2,387		839	$	23,902	$	6,455		$	(2,018	)	$	30,726		$	2,026		$	32,752


December 31, 2020		2	$	2,387		806	$	21,258	$	4,189		$	(1,717	)	$	26,117		$	344		$	26,461
Net income including noncontrolling interests										1,008						1,008			—			1,008
Issuance of stock						—		48								48						48
Stock awards (net of change in unearned compensation)								4								4						4
Preferred stock dividends (See Note 16)										(16	)					(16	)					(16	)
Common stock dividends ($0.630 per share) and distributions										(508	)					(508	)		(6	)		(514	)
Other comprehensive income, net of tax													46			46						46
Other																—			1			1
March 31, 2021		2	$	2,387		806	$	21,310	$	4,673		$	(1,671	)	$	26,699		$	339		$	27,038

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,	2021			2020
(millions)
Operating Activities
Net income (loss) including noncontrolling interests	$	1,008		$	(239	)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization (including nuclear fuel)		685			759
Deferred income taxes and investment tax credits		216			(65	)
Impairment of assets and other charges		95			768
Net losses (gains) on nuclear decommissioning trust funds and other investments		(152	)		526
Other adjustments		4			4
Changes in:
Accounts receivable		334			245
Inventories		73			71
Deferred fuel and purchased gas costs, net		(149	)		162
Prepayments		24			38
Accounts payable		21			(164	)
Accrued interest, payroll and taxes		(177	)		(234	)
Customer deposits		(9	)		(13	)
Margin deposit assets and liabilities		(60	)		46
Net realized and unrealized changes related to derivative activities		(218	)		36
Other operating assets and liabilities		(243	)		(307	)
Net cash provided by operating activities		1,452			1,633
Investing Activities
Plant construction and other property additions (including nuclear fuel)		(1,328	)		(1,462	)
Acquisition of solar development projects		(23	)		(8	)
Proceeds from sales of securities		1,765			602
Purchases of securities		(1,765	)		(631	)
Contributions to equity method affiliates		(977	)		(11	)
Acquisition of equity method investments		0			(178	)
Other		20			47
Net cash used in investing activities		(2,308	)		(1,641	)
Financing Activities
Issuance of short-term debt, net		1,921			1,279
Issuance of short-term notes		0			500
Repayment of supplemental 364-day credit facility borrowings		(225	)		0
Issuance of long-term debt		150			950
Repayment of long-term debt, including redemption premiums		(161	)		(932	)
Issuance of common stock		48			78
Common dividend payments		(508	)		(788	)
Other		(54	)		(81	)
Net cash provided by financing activities		1,171			1,006
Increase in cash, restricted cash and equivalents		315			998
Cash, restricted cash and equivalents at beginning of period		247			269
Cash, restricted cash and equivalents at end of period	$	562		$	1,267

See Note 2 for disclosure of supplemental cash flow information.

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,					Three Months Ended March 31,
	2020			2019		2021			2020
(millions)
Operating Revenue⁽¹⁾	$	1,930		$	1,965
Operating Revenue⁽¹⁾						$	1,830		$	1,930
Operating Expenses
Electric fuel and other energy-related purchases⁽¹⁾		492			596
Purchased (excess) electric capacity		(9	)		33
Electric fuel and other energy-related purchases⁽¹⁾							406			492
Excess electric capacity							(3	)		(9	)
Other operations and maintenance:
Affiliated suppliers		87			86		87			87
Other		331			193		426			331
Depreciation and amortization		311			304		324			311
Other taxes		87			85		93			87
Impairment of assets and other charges		764			546
Impairment of assets and other charges (benefit)							(51	)		764
Total operating expenses		2,063			1,843		1,282			2,063
Income (loss) from operations		(133	)		122		548			(133	)
Other income (loss)		(52	)		37
Interest and related charges⁽¹⁾		126			135
Other income (expense)							32			(52	)
Interest and related charges⁽¹⁾							136			126
Income (loss) before income tax expense		(311	)		24		444			(311	)
Income tax expense (benefit)		(31	)		4		70			(31	)
Net Income (Loss)	$	(280	)	$	20	$	374		$	(280	)

(1)	See Note 19 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,
	2020			2019			2021			2020
(millions)
Net income (loss)	$	(280	)	$	20		$	374		$	(280	)
Other comprehensive income (loss), net of taxes:
Net deferred losses on derivatives-hedging activities⁽¹⁾		(45	)		(7	)
Changes in unrealized net gains (losses) on nuclear decommissioning trust funds⁽²⁾		(2	)		2
Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾								32			(45	)
Changes in unrealized net losses on nuclear decommissioning trust funds⁽²⁾								(5	)		(2	)
Amounts reclassified to net income (loss):
Net realized losses on nuclear decommissioning trust funds⁽³⁾		1			—
Total other comprehensive loss		(46	)		(5	)
Net derivative losses-hedging activities⁽³⁾								1			0
Net realized losses on nuclear decommissioning trust funds⁽⁴⁾								1			1
Total other comprehensive income (loss)								29			(46	)
Comprehensive income (loss)	$	(326	)	$	15		$	403		$	(326	)

(1)	Net of ~~$16~~$(11) million and $2$16 million tax for the three months ended March 31, 2021 and 2020, ~~and 2019,~~ respectively.

(2)	Net of $—$0 million and $0 million tax for the three months ended March 31, 2021 and 2020, respectively.

(3)	Net of $0 million and $0 million tax for the three months ended March 31, 2021 and 2020, respectively.

(4)	Net of $0 million and $(1) million tax for the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, respectively.

~~(3)~~

~~Net of $(1) million and $— million tax for the three months ended March 31, 2020 and 2019, respectively.~~

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	56		$	35
Customer receivables (less allowance for doubtful accounts of $18 and $23)		926			1,315
Other receivables (less allowance for doubtful accounts of $2 at both dates)		86			91
Affiliated receivables		10			5
Inventories (average cost method)		840			862
Regulatory assets		292			295
Other⁽²⁾		52			59
Total current assets		2,262			2,662
Investments
Nuclear decommissioning trust funds		3,322			3,197
Other		3			3
Total investments		3,325			3,200
Property, Plant and Equipment
Property, plant and equipment		47,431			46,736
Accumulated depreciation and amortization		(14,446	)		(14,167	)
Total property, plant and equipment, net		32,985			32,569
Deferred Charges and Other Assets
Regulatory assets		3,235			3,509
Other⁽²⁾		1,977			1,714
Total deferred charges and other assets		5,212			5,223
Total assets	$	43,784		$	43,654

March 31, 2020

December 31, 2019⁽¹⁾

(millions)

ASSETS

Current Assets

Cash and cash equivalents

$
71

$
17

Customer receivables (less allowance for doubtful accounts of $8 and $9)

1,063

1,163

Other receivables (less allowance for doubtful accounts of $2 at both dates)

93

106

Affiliated receivables

3

27

Inventories (average cost method)

868

873

Regulatory assets

295

433

Other⁽²⁾

54

57

Total current assets

2,447

2,676

Investments

Nuclear decommissioning trust funds

2,468

2,881

Other

3

3

Total investments

2,471

2,884

Property, Plant and Equipment

Property, plant and equipment

44,446

47,038

Accumulated depreciation and amortization

(13,434
)

(14,156
)
Total property, plant and equipment, net

31,012

32,882

Deferred Charges and Other Assets

Regulatory assets

3,724

1,863

Other⁽²⁾

1,394

1,123

Total deferred charges and other assets

5,118

2,986

Total assets

$
41,048

$
41,428

(1)	Virginia Power’s Consolidated Balance Sheet at December 31, ~~2019~~2020 has been derived from the audited Consolidated Balance Sheet at that date.

(2)	See Note 19 for amounts attributable to affiliates.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

	March 31, 2020			December 31, 2019⁽¹⁾			March 31, 2021			December 31, 2020⁽¹⁾
(millions)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Securities due within one year	$	5		$	4		$	458		$	8
Short-term debt		135			243			420			45
Accounts payable		261			334			311			332
Payables to affiliates		339			210			125			266
Affiliated current borrowings		—			107			177			380
Accrued interest, payroll and taxes		270			253			307			253
Asset retirement obligations		78			340			159			166
Derivative liabilities⁽²⁾		481			243
Regulatory liabilities								272			425
Derivative liabilities⁽²⁾								171			390
Other		732			738			591			562
Total current liabilities		2,301			2,472			2,991			2,827
Long-Term Debt
Long-term debt		12,327			12,325			12,759			13,207
Finance leases		23			16
Other								481			480
Total long-term debt		12,350			12,341			13,240			13,687
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		2,807			2,962			2,873			2,779
Asset retirement obligations		3,516			3,241			3,681			3,654
Regulatory liabilities		4,820			5,074			5,402			5,338
Other⁽²⁾		1,698			1,349
Other⁽²⁾								786			812
Total deferred credits and other liabilities		12,841			12,626			12,742			12,583
Total liabilities		27,492			27,439			28,973			29,097
Commitments and Contingencies (see Note 17)
Common Shareholder’s Equity
Common stock – no par⁽³⁾		5,738			5,738
Common stock – no par⁽³⁾								5,738			5,738
Other paid-in capital		1,113			1,113			1,113			1,113
Retained earnings		6,780			7,167			7,983			7,758
Accumulated other comprehensive loss		(75	)		(29	)		(23	)		(52	)
Total common shareholder’s equity		13,556			13,989			14,811			14,557
Total liabilities and shareholder’s equity	$	41,048		$	41,428		$	43,784		$	43,654

(1)	Virginia Power’s Consolidated Balance Sheet at December 31, ~~2019~~2020 has been derived from the audited Consolidated Balance Sheet at that date.

(2)	See Note 19 for amounts attributable to affiliates.

(3)	500,000 shares authorized; 274,723 shares outstanding at March 31, ~~2020~~2021 and December 31, ~~2019.~~2020.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY

(Unaudited)

	Common Stock
	Shares		Amount		Other Paid-In Capital		Retained Earnings			AOCI			Total
(millions, except for shares)	(thousands)
December 31, 2019		275	$	5,738	$	1,113	$	7,167		$	(29	)	$	13,989
Net loss								(280	)					(280	)
Dividends								(108	)					(108	)
Other comprehensive loss, net of tax											(46	)		(46	)
Other								1						1
March 31, 2020		275		5,738		1,113		6,780			(75	)		13,556

December 31, 2020		275	$	5,738	$	1,113	$	7,758		$	(52	)	$	14,557
Net income								374						374
Dividends								(150	)					(150	)
Other comprehensive income, net of tax											29			29
Other								1						1
March 31, 2021		275	$	5,738	$	1,113	$	7,983		$	(23	)	$	14,811

Common Stock

Shares

Amount

Other Paid-In Capital

Retained Earnings

AOCI

Total

(millions, except for shares)

(thousands)

December 31, 2018

275

$
5,738

$
1,113

$
6,208

$
(12
)

$
13,047

Net income

20

20

Dividends

(118
)

(118
)
Other comprehensive income, net of tax

(5
)

(5
)
March 31, 2019

275

$
5,738

$
1,113

$
6,110

$
(17
)

$
12,944

December 31, 2019

275

$
5,738

$
1,113

$
7,167

$
(29
)

$
13,989

Net loss

(280
)

(280
)
Dividends

(108
)

(108
)
Other comprehensive loss, net of tax

(46
)

(46
)
Other

1

1

March 31, 2020

275

$
5,738

$
1,113

$
6,780

$
(75
)

$
13,556

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,	2020			2019			2021			2020
(millions)
Operating Activities
Net income (loss)	$	(280	)	$	20		$	374		$	(280	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (including nuclear fuel)		357			346			365			357
Deferred income taxes and investment tax credits		(135	)		(49	)		87			(135	)
Revision to future ash pond and landfill closure costs		—			(113	)
Impairment of assets and other charges		764			546
Impairment of assets and other charges (benefit)								(51	)		764
Other adjustments		53			(39	)		(29	)		53
Changes in:
Accounts receivable		123			62			317			123
Affiliated receivables and payables		24			(63	)		(144	)		24
Inventories		5			(19	)		21			5
Prepayments		(5	)		(2	)		(4	)		(5	)
Deferred fuel expenses, net		70			24			(159	)		70
Accounts payable		99			(33	)		0			99
Accrued interest, payroll and taxes		13			15			54			13
Net realized and unrealized changes related to derivative activities		(12	)		14			18			(12	)
Asset retirement obligations		14			—
Other operating assets and liabilities		59			(66	)		(65	)		73
Net cash provided by operating activities		1,149			643			784			1,149
Investing Activities
Plant construction and other property additions		(764	)		(563	)		(766	)		(764	)
Purchases of nuclear fuel		(25	)		(11	)		(46	)		(25	)
Acquisition of solar development projects		(6	)		(27	)		(10	)		(6	)
Proceeds from sales of securities		294			253			789			294
Purchases of securities		(310	)		(269	)		(791	)		(310	)
Other		37			(3	)		41			37
Net cash used in investing activities		(774	)		(620	)		(783	)		(774	)
Financing Activities
Issuance (repayment) of short-term debt, net		(108	)		281			375			(108	)
Repayment of affiliated current borrowings, net		(106	)		(200	)		(203	)		(106	)
Common dividend payments to parent		(108	)		(118	)		(150	)		(108	)
Other		(1	)		(1	)		(2	)		(1	)
Net cash used in financing activities		(323	)		(38	)
Increase (decrease) in cash, restricted cash and equivalents		52			(15	)
Net cash provided by (used in) financing activities								20			(323	)
Increase in cash, restricted cash and equivalents								21			52
Cash, restricted cash and equivalents at beginning of period		24			38			35			24
Cash, restricted cash and equivalents at end of period	$	76		$	23		$	56		$	76
Supplemental Cash Flow Information
Significant noncash investing activities:
Accrued capital expenditures	$	210		$	117
Financing leases		10			5

See Note 2 for disclosure of supplemental cash flow information.

The accompanying notes are an integral part of Virginia Power’s Consolidated Financial Statements.

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED STATEMENTS OF INCOME~~

~~(Unaudited)~~

Three Months Ended March 31,

2020

2019

(millions)

Operating Revenue⁽¹⁾

$
556

$
566

Operating Expenses

Purchased gas⁽¹⁾

8

12

Other energy-related purchases

—

1

Other operations and maintenance:

Affiliated suppliers

40

39

Other

125

137

Depreciation and amortization

93

91

Other taxes

42

39

Total operating expenses

308

319

Income from operations

248

247

Earnings from equity method investees

15

13

Other income⁽¹⁾

49

42

Interest and related charges⁽¹⁾

58

87

Income from continuing operations

254

215

Income tax expense

52

43

Net Income from continuing operations

202

172

Net Income from discontinued operations

—

54

Net Income including noncontrolling interests

202

226

Noncontrolling interests

33

36

Net Income attributable to Dominion Energy Gas

$
169

$
190

~~(1)~~

~~See Note 19 for amounts attributable to related parties.~~

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

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

~~(Unaudited)~~

Three Months Ended March 31,

2020

2019

(millions)

Net Income including noncontrolling interests

$
202

$
226

Other comprehensive income (loss), net of taxes:

Net deferred losses on derivatives-hedging activities⁽¹⁾

(91
)

(27
)
Amounts reclassified to net income (loss):

Net derivative losses-hedging activities⁽²⁾

6

3

Net pension and other postretirement benefit costs⁽³⁾

1

1

Total other comprehensive loss

(84
)

(23
)
Comprehensive income including noncontrolling interests

118

203

Comprehensive income attributable to noncontrolling interests

33

35

Comprehensive income attributable to Dominion Energy Gas

$
85

$
168

~~(1)~~

~~Net of $32 million and $9 million tax for the three months ended March 31, 2020 and 2019, respectively.~~

~~(2)~~

~~Net of $(2) million and $— million tax for the three months ended March 31, 2020 and 2019, respectively.~~

~~(3)~~

~~Net of $(1) million tax for both the three months ended March 31, 2020 and 2019.~~

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

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED BALANCE SHEETS~~

~~(Unaudited)~~

March 31, 2020

December 31, 2019⁽¹⁾

(millions)

ASSETS

Current Assets

Cash and cash equivalents

$
46

$
27

Customer receivables (less allowance for doubtful accounts of $2 at both dates)

157

173

Other receivables⁽²⁾

33

26

Affiliated receivables

87

362

Affiliated notes receivable

262

—

Inventories

125

122

Gas imbalances⁽²⁾

39

52

Other

84

96

Total current assets

833

858

Investments

Affiliated notes receivable

3,437

3,437

Investment in equity method affiliates

312

312

Total investments

3,749

3,749

Property, Plant and Equipment

Property, plant and equipment

15,224

15,166

Accumulated depreciation and amortization

(3,620
)

(3,538
)
Total property, plant and equipment, net

11,604

11,628

Deferred Charges and Other Assets

Goodwill

1,471

1,471

Other⁽²⁾

1,087

1,078

Total deferred charges and other assets

2,558

2,549

Total assets

$
18,744

$
18,784

~~(1)~~

~~Dominion Energy Gas’ Consolidated Balance Sheet at December 31, 2019 has been derived from the audited Consolidated Balance Sheet at that date.~~

~~(2)~~

~~See Note 19 for amounts attributable to related parties.~~

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

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED BALANCE SHEETS—(Continued)~~

~~(Unaudited)~~

March 31, 2020

December 31, 2019⁽¹⁾

(millions)

LIABILITIES AND EQUITY

Current Liabilities

Securities due within one year

$
699

$
700

Short-term debt

30

62

Accounts payable

40

59

Payables to affiliates

131

82

Affiliated current borrowings

256

260

Accrued interest, payroll and taxes

143

128

Other⁽²⁾

190

161

Total current liabilities

1,489

1,452

Long-Term Debt

Long-term debt

4,817

4,821

Finance leases

5

5

Total long-term debt

4,822

4,826

Deferred Credits and Other Liabilities

Deferred income taxes and investment tax credits

1,277

1,288

Other

1,078

989

Total deferred credits and other liabilities

2,355

2,277

Total liabilities

8,666

8,555

Commitments and Contingencies (see Note 17)

Equity

Membership interests

8,968

9,031

Accumulated other comprehensive loss

(271
)

(187
)
Total members' equity

8,697

8,844

Noncontrolling interests

1,381

1,385

Total equity

10,078

10,229

Total liabilities and equity

$
18,744

$
18,784

~~(1)~~

~~Dominion Energy Gas’ Consolidated Balance Sheet at December 31, 2019 has been derived from the audited Consolidated Balance Sheet at that date.~~

~~(2)~~

~~See Note 19 for amounts attributable to related parties.~~

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

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED STATEMENTS OF EQUITY~~

~~(Unaudited)~~

Predecessor Equity

Membership Interests

AOCI

Total
Members'
Equity

Noncontrolling Interests

Total

(millions)

December 31, 2018

$
1,804

$
4,566

$
(169
)

$
6,201

$
2,664

$
8,865

Net income

74

116

190

36

226

Acquisition of public interest in Dominion Energy Midstream

1,181

1,181

(1,221
)

(40
)
Dividends and distributions

(113
)

(113
)

(46
)

(159
)
Other comprehensive loss, net of tax

(22
)

(22
)

(1
)

(23
)
Other

(8
)

(8
)

(8
)
March 31, 2019

$
2,938

$
4,682

$
(191
)

$
7,429

$
1,432

$
8,861

December 31, 2019

$
—

$
9,031

$
(187
)

$
8,844

$
1,385

$
10,229

Net income

169

169

33

202

Dividends and distributions

(232
)

(232
)

(37
)

(269
)
Other comprehensive loss, net of tax

(84
)

(84
)

(84
)
March 31, 2020

$
—

$
8,968

$
(271
)

$
8,697

$
1,381

$
10,078

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

~~DOMINION ENERGY GAS HOLDINGS, LLC~~

~~CONSOLIDATED STATEMENTS OF CASH FLOWS~~

~~(Unaudited)~~

Three Months Ended March 31,

2020

2019

(millions)

Operating Activities

Net income including noncontrolling interest

$
202

$
226

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

93

113

Deferred income taxes and investment tax credits

15

21

Other adjustments

(8
)

4

Changes in:

Accounts receivable

9

(32
)
Affiliated receivables and payables

325

(26
)
Inventories

(3
)

(20
)
Prepayments

14

33

Accounts payable

(11
)

(23
)
Accrued interest, payroll and taxes

16

(40
)
Customer deposits

—

(32
)
Pension and other postretirement benefits

(18
)

(35
)
Other operating assets and liabilities

33

(14
)
Net cash provided by operating activities

667

175

Investing Activities

Plant construction and other property additions

(76
)

(150
)
Advances to affiliates

(262
)

—

Other

(4
)

(1
)
Net cash used in investing activities

(342
)

(151
)
Financing Activities

Issuance (repayment) of short-term debt, net

(32
)

270

Repayment of affiliated current borrowings, net

(5
)

(145
)
Repayment of long-term debt

—

(300
)
Issuance of affiliated long-term debt

—

395

Repayment of credit facility borrowings

—

(73
)
Dividends and distributions

(269
)

(159
)
Other

—

(1
)
Net cash used in financing activities

(306
)

(13
)
Increase in cash, restricted cash and equivalents

19

11

Cash, restricted cash and equivalents at beginning of period

39

198

Cash, restricted cash and equivalents at end of period

$
58

$
209

Supplemental Cash Flow Information

Significant noncash investing activities:

Accrued capital expenditures

$
13

$
31

Financing leases

1

2

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

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Nature of Operations

Dominion Energy, headquartered in Richmond, Virginia, is one of the nation’s largest producers and ~~transporters~~distributors of energy. Dominion Energy’s operations are conducted through various subsidiaries, including Virginia ~~Power and Dominion Energy Gas.~~Power. Dominion Energy’s operations also include DESC, ~~an equity investment in Atlantic Coast Pipeline and~~ regulated gas distribution operations primarily in the eastern and Rocky Mountain regions of the U.S. ~~Dominion Energy’s~~, nonregulated ~~operations include merchant~~electric generation and, retail energy marketing operations. Virginia Power is a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and northeastern North Carolina. Dominion Energy Gas is a holding company that conducts business activities through FERC-regulated interstate natural gas transmission pipeline and underground storage systems in the eastern and Rocky Mountain regionsfollowing completion of the ~~U.S., as well as the Cove Point LNG Facility. In addition, Dominion Energy Gas owns~~GT&S Transaction in November 2020, a ~~50%~~ noncontrolling interest in ~~both Iroquois and White River Hub.~~Cove Point. See Note 3 for ~~additional information on~~a description of the sale of substantially all of Dominion ~~Energy Gas Restructuring.~~Energy’s gas transmission and storage operations to BHE through the GT&S Transaction completed in November 2020 and the proposed Q-Pipe Transaction of Dominion Energy’s remaining regulated gas transmission and storage services in the Rocky Mountain region of the U.S.

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at March 31, ~~2020~~2021 and their results of operations, changes in equity and cash flows for the three months ended March 31, ~~2020~~2021 and ~~2019.~~2020. Such adjustments are normal and recurring in nature unless otherwise noted.

The Companies make certain estimates and assumptions in preparing their Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from those estimates.

The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. At March 31, ~~2020,~~2021, Dominion Energy owns 50% of the voting interests in Four Brothers and Three Cedars and has a controlling financial interest over the entities through its right to control operations. GIP’s ownership interest in Four Brothers and Three Cedars, Terra Nova Renewable Partners’ 33% interest in certain Dominion Energy ~~merchant~~nonregulated solar projects and Brookfield’s 25% interest in Cove Point (effective December ~~2019) and the non-Dominion Energy held interest in Dominion Energy Midstream (through January 2019)~~2019 until November 2020) are reflected as noncontrolling interest in Dominion Energy’s Consolidated Financial Statements. Terra Nova Renewable Partners has a future option to buy all or a portion of Dominion Energy’s remaining 67% ownership in certain ~~merchant~~nonregulated solar projects upon the occurrence of certain events, ~~none of which are expected to occur in the next 12 months. Brookfield’s 25% interest in Cove Point (effective December 2019) and the public’s ownership interest in~~including any proposed sale by Dominion Energy ~~Midstream (through January 2019) are reflected as noncontrolling interest in Dominion Energy Gas’ Consolidated Financial Statements.~~of its interest.

The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, electric fuel and other energy-related purchases, purchased gas expenses and other factors.

Certain amounts in the Companies’ ~~2019~~2020 Consolidated Financial Statements and Notes have been reclassified to conform to the ~~2020~~2021 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows.

Amounts disclosed for Dominion Energy are inclusive of Virginia Power, ~~and/or Dominion Energy Gas,~~ where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, with the exception of the items described below.

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the three months ended March 31, ~~2020~~2021 and ~~2019:~~2020:

Cash, Restricted Cash and Equivalents
at End of Period

Cash, Restricted Cash and Equivalents
at Beginning of Period

March 31, 2020

March 31, 2019

December 31, 2019

December 31, 2018

(millions)

Dominion Energy

Cash and cash equivalents

$
1,192

$
422

$
166

$
268

Restricted cash and equivalents⁽¹⁾

75

205

103

123

Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows

$
1,267

$
627

$
269

$
391

Virginia Power

Cash and cash equivalents

$
71

$
14

$
17

$
29

Restricted cash and equivalents⁽¹⁾

5

9

7

9

Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows

$
76

$
23

$
24

$
38

Dominion Energy Gas

Cash and cash equivalents⁽²⁾

$
46

$
147

$
27

$
108

Restricted cash and equivalents ⁽¹⁾

12

62

12

90

Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows

$
58

$
209

$
39

$
198

	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	March 31, 2021		March 31, 2020		December 31, 2020		December 31, 2019
(millions)
Dominion Energy
Cash and cash equivalents⁽¹⁾	$	491	$	1,192	$	179	$	166
Restricted cash and equivalents⁽²⁾⁽³⁾		71		75		68		103
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	562	$	1,267	$	247	$	269
Virginia Power
Cash and cash equivalents	$	56	$	71	$	35	$	17
Restricted cash and equivalents⁽³⁾		0		5		0		7
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	56	$	76	$	35	$	24

(1)	At March 31, 2021, March 31, 2020, December 31, 2020 and December 31, 2019, Dominion Energy had $14 million, $59 million, $7 million and $31 million of cash and cash equivalents included in current assets held for sale, respectively.

(2)	At March 31, 2021, March 31, 2020, December 31, 2020 and December 31, 2019, Dominion Energy had $3 million, $12 million, $3 million and $12 million of restricted cash and equivalents included in current assets held for sale, respectively.

(3)	Restricted cash and equivalent balances are presented within other current assets in the Companies’ Consolidated Balance Sheets.

Supplemental Cash Flow Information

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

	Three Months Ended March 31,
	2021		2020
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	341	$	343
Leases⁽¹⁾		9		17

~~(2)~~(1)

AtIncludes $2 million and $17 million of financing leases at March 31, ~~2019~~2021 and ~~December 31, 2018, Dominion Energy Gas had $4 million~~2020, respectively, and $9$7 million of ~~cash and cash equivalents included in current assets of discontinued operations, respectively.~~operating leases at March 31, 2021.

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

	Three Months Ended March 31,
	2021		2020
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	262	$	210
Financing leases		1		10

Property, Plant and Equipment

In January 2019, Virginia Power committed to a plan to retire certain automated metering reading infrastructure associated with its electric operations before the end of its estimated useful life and replace such equipment with more current AMI technology. As a result, Virginia Power recorded a charge of $160 million ($119 million after-tax), included in impairment of assets and other charges in its Consolidated Statements of Income. This charge is considered a component of Virginia Power’s base rates deemed recovered under the GTSA, subject to review as discussed in Note 13 to the Consolidated Financial Statements in Virginia Power’s Annual Report on Form 10-K for the year ended December 31, 2019.

In March 2019, Virginia Power committed to retire certain electric generating units before the end of their useful lives and completed the retirement of certain units at 6 facilities representing 1,292 MW of electric generating capacity, which had previously been placed in cold reserve. An additional unit at Possum Point power station will be retired after it meets its capacity obligation to PJM in 2021. As a result, Virginia Power recorded a charge of $369 million ($275 million after-tax), primarily included in impairment of assets and other charges in its Consolidated Statements of Income. This charge is considered a component of Virginia Power’s base rates deemed recovered under the GTSA, subject to review as discussed in Note 13 to the Consolidated Financial Statements in Virginia Power’s Annual Report on Form 10-K for the year ended December 31, 2019.

In March 2020, Virginia Power committed to retire certain coal- and oil-fired generating units before the end of their useful lives based on economic and other factors, including but not limited to market power prices and the VCEA. These units will be retired after they meet their capacity obligations to PJM in 2023. As a result, Virginia Power recorded a charge of $754 million ($561 million after-tax), in the first quarter of 2020, primarily included in impairment of assets and other charges in its Consolidated Statements of Income. This charge is considered a component of Virginia Power’s base rates deemed recovered under the GTSA, subject to review as discussed in Note 13 to the Consolidated Financial Statements in Virginia Power’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

2020.

In the first quarter of 2020, Virginia Power updated depreciation rates for its nuclear plants to reflect lower depreciation rates as a result of the expected approval of license extensions from the NRC. This adjustment resulted in a decrease of $8 million ($6 million after-tax) in depreciation expense in Virginia Power’s Consolidated Statements of Income and a $0.01 increase in Dominion Energy’s EPS, for the three months ended March 31, 2020. This revision is expected to decrease annual depreciation expense by approximately $31 million ($23 million after-tax) and increase Dominion Energy’s EPS by $0.03 for the year ended December 31, 2020.

~~Credit Risk~~

Credit risk is the risk of financial loss if counterparties fail to perform their contractual obligations. In order to minimize overall credit risk, credit policies are maintained, including the evaluation of counterparty financial condition, collateral requirements and the use of standardized agreements that facilitate the netting of cash flows associated with a single counterparty. In addition, counterparties may make available collateral, including letters of credit or cash held as margin deposits, as a result of exceeding agreed-upon credit limits, or may be required to prepay the transaction.

Effective January 2020, expected credit losses are estimated and recorded based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets held at amortized cost as well as expected credit losses on commitments with respect to financial guarantees.

~~Investments~~

~~Debt and Equity Securities with Readily Determinable Fair Value~~

Dominion Energy accounts for and classifies investments in debt securities as trading or available-for-sale securities. Virginia Power classifies investments in debt securities as available-for-sale securities.

• ~~Debt securities classified as trading securities~~ include securities held by Dominion Energy in rabbi trusts associated with certain deferred compensation plans. These securities are reported in other investments in the Consolidated Balance Sheets at fair value with net realized and unrealized gains and losses included in other income in the Consolidated Statements of Income.

• ~~Debt securities classified as available-for-sale securities~~ include all other debt securities, primarily comprised of securities held in the nuclear decommissioning trusts. These investments are reported at fair value in nuclear decommissioning trust funds in the Consolidated Balance Sheets. Net realized and unrealized gains and losses (including any credit-related impairments) on investments held in Virginia Power’s nuclear decommissioning trusts are deferred to a regulatory asset or liability as applicable for certain jurisdictions subject to cost-based regulation. For all other available-for-sale debt securities, including those held in Dominion Energy’s merchant generation nuclear decommissioning trusts, net realized gains and losses (including any credit-related impairments) are included in other income and unrealized gains and losses are reported as a component of AOCI, after-tax.

~~In determining realized gains and losses for debt securities, the cost basis of the security is based on the specific identification method.~~

Equity securities with readily determinable fair values include securities held by Dominion Energy in rabbi trusts associated with certain deferred compensation plans and securities held by Dominion Energy and Virginia Power in the nuclear decommissioning trusts. Dominion Energy and Virginia Power record all equity securities with a readily determinable fair value, or for which they are permitted to estimate fair value using NAV (or its equivalent), at fair value in nuclear decommissioning trust funds and other investments in the Consolidated Balance Sheets. However, Dominion Energy and Virginia Power may elect a measurement alternative for equity securities without a readily determinable fair value. Under the measurement alternative, equity securities are reported at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dominion Energy and Virginia Power qualitatively assess equity securities reported using the measurement alternative to determine whether an investment is impaired on an ongoing basis. Net realized and unrealized gains and losses on equity securities held in Virginia Power’s nuclear decommissioning trusts are deferred to a regulatory asset or liability, as applicable, for certain jurisdictions subject to cost-based regulation. For all other equity securities, including those held in Dominion Energy’s merchant generation nuclear decommissioning trusts and rabbi trusts, net realized and unrealized gains and losses are included in other income in the Consolidated Statements of Income.

~~Equity Securities without Readily Determinable Fair Values~~

The Companies account for illiquid and privately held securities without readily determinable fair values under either the equity method or cost method. Equity securities without readily determinable fair values include:

• ~~Equity method investments~~ when the Companies have the ability to exercise significant influence, but not control, over the investee. Dominion Energy and Dominion Energy Gas’ investments are included in investments in equity method affiliates in their Consolidated Balance Sheets. Dominion Energy and Dominion Energy Gas record equity method adjustments in other income and earnings from equity method investees, respectively, in their Consolidated Statements of Income, including their proportionate share of investee income or loss, gains or losses resulting from investee capital transactions, amortization of certain differences between the carrying value and the equity in the net assets of the investee at the date of investment and other adjustments required by the equity method.

• ~~Cost method investments~~ when Dominion Energy and Virginia Power do not have the ability to exercise significant influence over the investee. Dominion Energy and Virginia Power’s investments are included in other investments and nuclear decommissioning trust funds. Cost method investments are reported at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

~~Other-Than-Temporary Impairment~~

The Companies periodically review their equity method investments to determine whether a decline in fair value should be considered other-than-temporary. If a decline in the fair value of any equity method investment is determined to be other-than-temporary, the investment is written down to its fair value at the end of the reporting period.

~~Credit Impairment~~

Effective January 2020, Dominion Energy and Virginia Power periodically review their available-for-sale debt securities to determine whether a decline in fair value should be considered credit related. If a decline in the fair value of any available-for-sale debt security is determined to be credit related, the credit-related impairment is recorded to an allowance included in nuclear decommissioning trust funds in Dominion Energy and Virginia Power’s Consolidated Balance Sheets at the end of the reporting period, with such allowance for credit losses subject to reversal in subsequent evaluations.

Using information obtained from their nuclear decommissioning trust fixed-income investment managers, Dominion Energy and Virginia Power record in earnings, or defer as applicable for certain jurisdictions subject to cost-based regulation, any unrealized loss for a debt security when the manager intends to sell the debt security or it is more-likely-than-not that the manager will have to sell the debt security before recovery of its fair value up to its cost basis. If that is not the case, but the debt security is deemed to have experienced a credit loss, Dominion Energy and Virginia Power record the credit loss in earnings with the remaining non-credit portion of the unrealized loss recorded in AOCI. Credit losses are evaluated primarily by considering the credit ratings of the issuer, prior instances of non-performance by the issuer and other factors.

Note 3. Acquisitions and Dispositions

~~Acquisition~~Disposition of ~~SCANA~~Gas Transmission & Storage Operations to BHE

In ~~January 2019,~~July 2020, Dominion Energy ~~issued 95.6 million shares~~entered into an agreement with BHE with a total value of approximately $10 billion, comprised of approximately $4.0 billion of cash consideration (subject to customary closing adjustments) plus the assumption of long-term debt, to sell substantially all of its gas transmission and storage operations, including processing assets, as well as noncontrolling partnership interests in Iroquois, JAX LNG and White River Hub and a controlling interest in Cove Point (consisting of 100% of the general partner interest and 25% of the total limited partner interests). The agreement provides that Dominion Energy ~~common stock, valued at $6.8 billion, representing 0.6690~~retains the assets and obligations of the pension and other postretirement employee benefit plans associated with the operations included in the transaction and relating to services provided through closing. In October 2020, pursuant to a ~~share of~~provision in the agreement with BHE, Dominion Energy ~~common stock~~elected to exclude Dominion Energy Questar Pipeline and certain other affiliated entities from the transaction as approval under the Hart-Scott-Rodino Act had not been obtained by mid-September 2020. Concurrently in October 2020, Dominion Energy and BHE entered into a separate agreement under which Dominion Energy will sell Dominion Energy Questar Pipeline and certain other affiliated entities for ~~each share~~cash consideration of ~~SCANA common stock,~~$1.3 billion and the assumption of related long-term debt. In November 2020, Dominion Energy completed the GT&S Transaction as discussed in connection with the completion of the SCANA Combination. SCANA, through its regulated subsidiaries, is primarily engaged in the generation, transmission and distribution of electricity in the central, southern and southwestern portions of South Carolina and in the distribution of natural gas in North Carolina and South Carolina. In addition, at the closing of the SCANA Combination, SCANA marketed natural gas to retail customers in the southeast U.S. Following completion of the SCANA Combination, SCANA operates as a wholly-owned subsidiary of Dominion Energy. In addition, SCANA’s debt totaled $6.9 billion at closing. The SCANA Combination expanded Dominion Energy’s portfolio of regulated electric generation, transmission and distribution and regulated natural gas distribution infrastructure operations.

~~See~~ Note 3 to the Consolidated Financial Statements in the ~~Companies’~~Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019 for more information on the SCANA Combination, including merger approval and conditions, information on assets acquired and liabilities assumed and purchase price allocation.~~ 2020.

In ~~addition, see Note 17 for a discussion of certain legal proceedings involving Dominion Energy, SCANA or DESC relating to events occurring before~~connection with closing of the ~~SCANA Combination.~~

GT&S Transaction, Dominion Energy and BHE entered into a transition services agreement under which Dominion Energy will continue to provide specified administrative services to support the operations of the disposed business for up to 24 months after closing. In ~~accordance~~addition, BHE will provide certain administrative services to Dominion Energy. Dominion Energy recorded revenue of $5 million associated with the ~~SCANA Merger Approval Order, Dominion Energy incurred certain charges to~~transition service agreement in operating revenue in its Consolidated Statements of Income for the ~~following:~~

•

In the first quarter of 2019, DESC recorded a reduction in operating revenue and a corresponding regulatory liability of $1.0 billion representing a refund of amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period, effective January 2019, As a result, Dominion Energy’s Consolidated Statement of Income for the three months ended March 31, 2019 includes a $756 million after-tax charge.

•

Dominion Energy committed to forgo recovery of $105 million of certain property, plant and equipment associated with the NND Project. As a result, Dominion Energy’s Consolidated Statements of Income for the three months ended March 31, 2019 includes a charge of $105 million ($79 million after-tax), included in impairment of assets and other charges.

•

Dominion Energy committed to forgo recovery of $264 million of certain income tax-related regulatory assets associated with the NND Project. As a result, Dominion Energy’s Consolidated Statement of Income for the three months ended March 31, 2019 includes a charge of $198 million included in income tax expense.

~~Results of Operations and Unaudited Pro Forma Information~~

~~The impact of the SCANA Combination on Dominion Energy’s operating revenue was an increase of $914 million and $170 million for the~~ three months ended March 31, 2021.

Also in November 2020, ~~and 2019, respectively, in the Consolidated Statements of Income. The impact of the SCANA Combination on net income attributable~~BHE provided a $1.3 billion deposit to Dominion Energy ~~was an increase of $54 million and a decrease of $1.1 billion for~~on the ~~three months ended March 31, 2020 and 2019, respectively, in the Consolidated Statements of Income.~~

Q-Pipe Transaction. Dominion Energy ~~incurred merger and integration-related costs~~will be required to repay all or substantially all of ~~$19 million for the three months ended March 31, 2020, recorded~~this deposit, or issue to BHE an equivalent value in other operations and maintenance expense in the Consolidated Statements of Income. For the three months ended March 31, 2019, Dominion Energy incurred merger and integration-related costs of which $115 million was recorded in other operations and maintenance expense and $9 million was recorded in interest and related charges in the Consolidated Statements of Income. These costs consist of professional fees, charitable contribution commitments, employee-related expenses, certain financing costs and other miscellaneous costs.

~~The following unaudited pro forma financial information reflects the consolidated results of operations~~shares of Dominion Energy ~~assuming~~common stock at Dominion Energy’s option, if the ~~SCANA Combination had taken place~~Q-Pipe Transaction does not close by December 30, 2021. Dominion Energy may, effective April 1, 2021, solicit or accept offers from alternative buyers for all or a material portion of the Q-Pipe Transaction and either party may terminate the Q-Pipe Transaction if closing has not occurred on ~~January 1, 2018.~~or before June 30, 2021. If the Hart-Scott-Rodino Act approval has not been obtained by June 30, 2021, upon BHE’s request, Dominion Energy will seek an alternative buyer for all or a material portion of the Q-Pipe Transaction. The ~~unaudited pro forma financial information has been presented~~Q-Pipe Transaction is structured as an asset sale for ~~illustrative~~tax purposes ~~only~~ and is ~~not necessarily indicative of~~expected to close in 2021, contingent on clearance or approval under the ~~consolidated results of operations that would have been achieved or~~Hart-Scott-Rodino Act, and other customary closing and regulatory conditions. Based on the ~~future consolidated results of operations of the combined company.~~

Three Months Ended
March 31, 2019⁽¹⁾

(millions, except EPS)

Operating Revenue

$
4,887

Net income attributable to Dominion Energy

605

Earnings Per Common Share – Basic

$
0.76

Earnings Per Common Share – Diluted

$
0.76

~~(1)~~

~~Amounts include adjustments for non-recurring costs directly related to the SCANA Combination.~~

recorded balances at March 31, 2021, Dominion Energy ~~Gas Restructuring~~expects to recognize a pre-tax gain of approximately $450 million ($320 million after-tax) upon closing, including the write-off of $191 million of goodwill, but excluding the effects of any closing adjustments.

The ~~Dominion Energy Gas Restructuring is considered to be a reorganization of entities under common control. As a result, Dominion Energy Gas’ basis~~operations included in ~~DCP and DMLPHCII, which includes~~both the general partner of Dominion Energy Midstream, a controlling 75% interest in Cove Point, DECG, Dominion Energy Questar Pipeline, a 50% noncontrolling interest in White River Hub and a 25.93% noncontrolling interest in Iroquois, is equal to Dominion Energy’s cost basis in the assets and liabilities of such entities since the applicable inception dates of common control. In November 2019, following completion of the Dominion Energy Gas Restructuring, DCP and DMLPHCII are wholly-owned subsidiaries of Dominion Energy Gas and therefore are consolidated by Dominion Energy Gas. The accompanying Consolidated Financial Statements and Notes of Dominion Energy Gas have been retrospectively adjusted to include the historical results and financial position of DCP and DMLPHCII. The 25% interest in Cove Point retained by Dominion Energy, and subsequently sold to Brookfield in December 2019,GT&S Transaction and the ~~non-Dominion Energy held interest~~Q-Pipe Transaction are presented in ~~Dominion Energy Midstream (through January 2019) are reflected as noncontrolling interest.~~

~~The Dominion Energy Gas Restructuring includes the disposition of East Ohio~~held-for-sale and ~~DGP by Dominion Energy Gas in November 2019. This restructuring represents a strategic shift in the~~discontinued operations ~~of Dominion Energy Gas as Dominion Energy Gas’ operations consist of LNG import/export and storage and regulated gas transmission and storage operations.~~effective July 2020. As a result, the ~~accompanying Consolidated Financial Statements and Notes of Dominion Energy Gas~~previously reported amounts have been ~~retrospectively adjusted~~recast to ~~include~~reflect this presentation and depreciation and amortization ceased on the ~~historical results and~~applicable assets. As Cove Point had previously been consolidated within Dominion Energy’s financial ~~position~~statements, balances associated with Cove Point prior to the closing of ~~East Ohio and DGP as discontinued operations until November 2019,~~the GT&S Transaction are presented within ~~the Corporate~~held-for-sale and Other segment. As the Dominion Energy Gas Restructuring is considered to be a reorganization of entities under common control, Dominion Energy Gas has reflected the disposition as an equity transaction. The following table represents selecteddiscontinued operations. See Note 10 for further information regarding ~~the results of operations of East Ohio, which are reported as discontinued operations~~Dominion Energy’s equity method investment in ~~Dominion Energy Gas’ Consolidated Statements of Income:~~

Three Months Ended
March 31, 2019

(millions)

Operating revenue

$
229

Depreciation and amortization

21

Other operating expenses

148

Other income

18

Interest and related charges

10

Income tax expense

14

Net income from discontinued operations
$
54

~~Capital expenditures and significant noncash items relating to East Ohio included the following:~~

Three Months Ended
March 31, 2019

(millions)

Capital expenditures

$
65

Significant noncash items

Accrued capital expenditures

6

Cove Point.

The following table represents selected information regarding the results of operations, ~~of DGP,~~ which are reported aswithin discontinued operations in Dominion ~~Energy Gas’~~Energy’s Consolidated Statements of Income:

Three Months Ended
March 31, 2019

(millions)

Operating revenue

$
45

Depreciation and amortization

1

Other operating expenses

44

Net income from discontinued operations

$
—

	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
	Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction
(millions)
Operating revenue	$	67	$	563	$	65
Operating expense		19		333		33
Other income		0		20		1
Interest and related charges		5		53		4
Income before income taxes		43		197		29
Income tax expense		8		27		4
Net income including noncontrolling interests		35		170		25
Noncontrolling interests		—		33		—
Net income attributable to Dominion Energy	$	35	$	137	$	25

The carrying amounts of major classes of assets and liabilities relating to the disposal groups, which are reported as held for sale in Dominion Energy’s Consolidated Balance Sheets were as follows:

	At March 31, 2021		At December 31, 2020
	Q-Pipe Transaction		Q-Pipe Transaction
(millions)
Current assets⁽¹⁾	$	49	$	47
Equity method investments⁽²⁾		35		35
Property, plant and equipment, net		1,120		1,113
Other deferred charges and other assets, including goodwill and intangible assets⁽³⁾		224		224
Current liabilities		30		30
Long-term debt		426		426
Other deferred credits and liabilities		154		154

(1)

Includes cash and cash equivalents of $13 million and $7 million as of March 31, 2021 and December 31, 2020.

(2)

Comprised of an equity method investment in White River Hub.

(3)

Includes goodwill of $191 million at both March 31, 2021 and December 31, 2020.

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

			Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
	Three Months Ended March 31, 2019		Q-Pipe Transaction		GT&S Transaction		Q-Pipe Transaction
(millions)
Capital expenditures	$	3	$	3	$	73	$	6
Significant noncash items
Depreciation, depletion and amortization				0		82		13
Accrued capital expenditures				2		16		0

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2021		2020
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,158	$	646	$	1,155	$	1,158
Commercial		798		496		719		798
Industrial		182		30		178		182
Government and other retail		219		200		189		219
Wholesale		33		48		43		33
Nonregulated electric sales		232		316		249		232
Regulated gas sales:
Residential		548		602		630		548
Commercial		191		191		206		191
Other		28		38		34		28
Nonregulated gas sales		83		247		52		83
Regulated gas transportation and storage:
FERC-regulated		281		277
State-regulated		232		213
Nonregulated gas transportation and storage		175		174
Other regulated revenues⁽¹⁾		75		58
Other nonregulated revenues⁽¹⁾⁽²⁾		88		95
Regulated gas transportation and storage						271		232
Other regulated revenues						66		92
Other nonregulated revenues⁽¹⁾⁽²⁾						48		31
Total operating revenue from contracts with customers		4,323		3,631		3,840		3,827
Other revenues⁽³⁾		173		227
Other revenues⁽³⁾⁽⁴⁾						30		111
Total operating revenue	$	4,496	$	3,858	$	3,870	$	3,938
Virginia Power
Regulated electric sales:
Residential	$	896	$	923	$	889	$	896
Commercial		614		636		547		614
Industrial		97		112		91		97
Government and other retail		203		204		176		203
Wholesale		24		37		26		24
Other regulated revenues⁽²⁾		62		33
Other nonregulated revenues⁽¹⁾⁽²⁾		13		6
Other regulated revenues						57		62
Other nonregulated revenues⁽¹⁾⁽²⁾						21		13
Total operating revenue from contracts with customers		1,909		1,951		1,807		1,909
Other revenues⁽²⁾⁽³⁾		21		14
Other revenues⁽²⁾⁽³⁾						23		21
Total operating revenue	$	1,930	$	1,965	$	1,830	$	1,930
Dominion Energy Gas
Regulated gas sales - wholesale	$	2	$	2
Nonregulated gas sales⁽²⁾		1		2
Regulated gas transportation and storage		344		340
Nonregulated gas transportation and storage		175		174
Management service revenue⁽²⁾		31		44
Other regulated revenues⁽¹⁾⁽²⁾		1		3
Other nonregulated revenues⁽¹⁾⁽²⁾		1		—
Total operating revenue from contracts with customers		555		565
Other revenues		1		1
Total operating revenue	$	556	$	566

1)(1)

Amounts above include sales which are considered to be goods transferred at a point in time. ~~For the three months ended March 31, 2020 and 2019, such~~Such amounts ~~included $~~39 ~~million and $48 million, respectively, at Dominion Energy and $1~~include $7 million for both the three months ended March 31, 2021 and 2020, ~~and 2019, at Dominion Energy Gas,~~primarily consisting of ~~NGL sales.~~sales of commodities related to nonregulated extraction activities and other miscellaneous products. Additionally, amounts above include sales of renewable energy credits. ~~For~~Such amounts included $6 million and $4 million for the three months ended March 31, 2021 and $4 million and $3 million for the three months ended March 31, 2020, ~~and 2019, such sales were $4 million and $3 million, respectively,~~ at Dominion Energy and ~~$3 million and $1 million, respectively, at~~ Virginia ~~Power.~~Power, respectively.

2)(2)

See Notes 10 and 19 for amounts attributable to related parties and affiliates.

3)(3)

~~Includes~~Amounts above include alternative ~~revenue. For~~revenue of $22 million and $36 million at Dominion Energy and $20 million and $17 million at Virginia Power for the three months ended March 31, 2021 and 2020, ~~and 2019, such amounts included $36~~respectively.

(4)	Amounts above include revenue associated with services provided to discontinued operations of $1 million and ~~$14~~$2 million ~~respectively, at Dominion Energy~~for the three months ended March 31, 2021 and ~~$17 million and $8 million, respectively, at Virginia Power.~~2020, respectively.

The table below discloses the aggregate amount of the transaction price allocated to fixed-price performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period and when the Companies expect to recognize this revenue. These revenues relate to contracts containing fixed prices where the Companies will earn the associated revenue over time as they stand ready to perform services provided. This disclosure does not include revenue related to performance obligations that are part of a contract with original durations of one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which the Companies elect to recognize revenue in the amount they have a right to invoice.

Revenue expected to be recognized on multi-year
contracts in place at March 31, 2020

2020

2021

2022

2023

2024

Thereafter

Total

(millions)

Dominion Energy

$
1,222

$
1,562

$
1,474

$
1,312

$
1,187

$
13,089

$
19,846

Virginia Power

2

1

—

—

—

—

3

Dominion Energy Gas

1,336

1,714

1,581

1,395

1,242

13,270

20,538

Revenue expected to be recognized on multi-year

contracts in place at March 31, 2021

2021

2022

2023

2024

2025

Thereafter

Total

(millions)

Dominion Energy

493

788

~~Contract assets represent an entity’s right to consideration in exchange for goods and services that the entity has transferred to a customer.~~ At March 31, ~~2020~~2021 and December 31, ~~2019, Dominion Energy’s contract asset balances were $26 million and $28 million, respectively. Dominion Energy Gas’ contract asset balances were $37 million and $40 million at March 31,~~ 2020, and December 31, 2019, respectively. Dominion Energy and Dominion Energy Gas’ contract assets are recorded in other deferred charges and other assets in the Consolidated Balance Sheets. Contract liabilities represent an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration, or the amount that is due, from the customer. At March 31, 2020 and December 31, 2019, Dominion Energy’s contract liability balances were ~~$86~~$74 million and ~~$123~~$130 million, ~~respectively. At March 31, 2020~~respectively, and December 31, 2019, Virginia Power’s contract liability balances were $23 million and $24 million, respectively. At March 31, 2020 and December 31, 2019, Dominion Energy Gas’ contract liability balances were $21 million and $20 million, respectively. The Companies’ contract liabilities are recorded in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets. At March 31, 2021 and December 31, 2020, Virginia Power’s contract liability balances were $32 million and $36 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, Dominion Energy recognized revenue of ~~$105~~$122 million and ~~$85~~$93 million, respectively, from the beginning contract liability balances. During the three months ended March 31, ~~2020~~2021 and ~~2019,~~2020, Virginia Power recognized ~~$24~~$36 million and ~~$22~~$24 million, respectively, from the beginning contract liability balance. ~~During the three months ended March 31, 2020 and 2019, Dominion Energy Gas recognized $1 million and $25 million from the beginning contract liability balance.~~

Note 5. Income Taxes

For continuing operations, including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:

	Dominion Energy						Virginia Power						Dominion Energy Gas								Dominion Energy						Virginia Power
Three Months Ended March 31,	2020			2019			2020			2019			2020				2019				2021			2020			2021			2020
U.S. statutory rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%			21.0	%			21.0	%		21.0	%		21.0	%		21.0	%
Increases (reductions) resulting from:
State taxes, net of federal benefit		4.4			2.2			4.8			4.6			2.9				3.4				3.5			3.3			4.5			4.8
Investment tax credits		(4.1	)		(1.5	)		(6.4	)		(3.2	)		—				—				(3.8	)		(7.0	)		(6.6	)		(6.4	)
Production tax credits		(0.4	)		(0.8	)		(0.8	)		(1.0	)		—				—				(0.3	)		(0.8	)		(0.6	)		(0.8	)
Reversal of excess deferred income taxes		(9.5	)		(5.1	)		(8.1	)		(5.0	)		(0.7	)			(0.7	)			(2.2	)		(7.8	)		(2.2	)		(8.1	)
Write-off of regulatory assets		—			(34.1	)		—			—			—				—
AFUDC - equity		(1.6	)		(1.4	)		(0.7	)		—			(0.4	)			(0.5	)			(0.4	)		(0.7	)		(0.7	)		(0.7	)
Other, net		(2.5	)		(0.6	)		0.3			0.1			(2.4	)	⁽¹⁾		(3.3	)	⁽¹⁾		—			1.7			0.3			0.3
Effective tax rate		7.3	%		(20.3	)%		10.1	%		16.5	%		20.4	%			19.9	%			17.8	%		9.7	%		15.7	%		10.1	%

~~(1)~~

~~Includes (2.7)% and (3.6) % relating to the absence of tax on noncontrolling interest in 2020 and 2019, respectively~~.

For the Companies’ rate-regulated entities, deferred taxes will reverse at the weighted average rate used to originate the deferred tax liability, which in some cases will be 35%. The Companies have recorded an estimate of excess deferred income tax amortization in ~~2020.~~2021. The reversal of these excess deferred income taxes will impact the effective tax rate and rates charged to customers. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for more information.

In March 2020, the CARES Act was enacted which includes several significant business tax provisions that modify or temporarily suspend certain provisions of the 2017 Tax Reform Act. The CARES Act provisions are intended to improve cash flow and liquidity by, among other things, providing a temporary ~~five-year~~ carryback for certain net operating losses, accelerating the refund of previously generated corporate alternative minimum tax credits and temporarily loosening the business interest limitation to 50% of adjusted taxable income for certain businesses. While Dominion Energy intends to utilize the income tax provisions of the CARES Act to accelerate the recognition of certain tax attributes, where applicable, they are not expected to provide a material benefit.

In connection with the SCANA Combination, Dominion Energy committed to forgo, or limit, the recovery of certain income tax-related regulatory assets associated with the NND Project. Dominion Energy’s 2019 effective tax rate reflects deferred income tax expense of $198 million in satisfaction of this commitment. Dominion Energy’s 2019 effective tax rate also reflects the changes in consolidated state income taxes resulting from the SCANA Combination.

As of March 31, ~~2020,~~2021, there have been no material changes in the Companies’ unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 5 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, for a discussion of these unrecognized tax benefits.

In April 2021, a state legislative change was enacted for tax years beginning January 1, 2022. Dominion Energy expects to record an approximate $20 million deferred tax benefit, inclusive of an approximate $15 million benefit at Virginia Power, in the second quarter of 2021.

Discontinued operations

Income tax expense reflected in discontinued operations is $7 million and $31 million for the three months ended March 31, 2021 and 2020, respectively.

Note 6. Earnings Per Share

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

Three Months Ended March 31,

2020

2019

(millions, except EPS)

Net loss attributable to Dominion Energy

$
(270
)

$
(680
)
Preferred stock dividends (see Note 16)

(16
)

—

Net loss attributable to Dominion Energy – Basic & Diluted

(286
)

(680
)
Average shares of common stock outstanding – Basic & Diluted

838.2

793.1

Earnings Per Common Share – Basic & Diluted

$
(0.34
)

$
(0.86
)

	Three Months Ended March 31,
	2021			2020
(millions, except EPS)
Net income (loss) attributable to Dominion Energy from continuing operations	$	980		$	(466	)
Preferred stock dividends (see Note 16)		(16	)		(16	)
Net income (loss) attributable to Dominion Energy from continuing operations – Basic		964			(482	)
Dilutive effect of Series A Preferred Stock		—			—
Net income (loss) attributable to Dominion Energy from continuing operations - Diluted	$	964		$	(482	)

Net income attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	28		$	196

Average shares of common stock outstanding – Basic & Diluted		805.9			838.2
Net effect of dilutive securities		—			—
Average shares of common stock outstanding – Diluted		805.9			838.2

EPS from continuing operations – Basic	$	1.19		$	(0.57	)
EPS from discontinued operations – Basic		0.04			0.23
EPS attributable to Dominion Energy – Basic	$	1.23		$	(0.34	)

EPS from continuing operations – Diluted		1.19		$	(0.57	)
EPS from discontinued operations – Diluted		0.04			0.23
EPS attributable to Dominion Energy – Diluted	$	1.23		$	(0.34	)

~~As a result of a net loss for both~~The 2019 Equity Units and the ~~three months ended March 31, 2020~~Q-Pipe Transaction deposit are potentially dilutive securities. See Note 3 in this report and ~~2019, the issuance of common stock under potentially-dilutive securities, as discussed in~~ Note 819 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 for more information. The forward stock purchase contracts included within the 2019 Equity Units were excluded from the calculation of diluted EPS from continuing operations for the three months ended March 31, 2021, as the dilutive stock price threshold was not met. The Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations based upon the expectation that the conversion will be settled in cash rather than through the issuance of Dominion Energy common stock. For the three months ended March 31, 2021, a fair value adjustment related to the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations, as such fair value adjustment was not dilutive during the period. As a result of a net loss attributable to Dominion Energy from continuing operations for the three months ended March 31, 2020, any adjustments to earnings or shares would be considered antidilutive and are therefore excluded from the calculation of diluted EPS.EPS from continuing operations. The impact of settling the deposit associated with the Q-Pipe Transaction in shares is excluded from the calculation of diluted EPS from continuing operations for the three months ended March 31, 2021 based upon the expectation Dominion Energy would settle in cash rather than through the issuance of Dominion Energy common stock.

Note 7. Accumulated Other Comprehensive Income

Dominion Energy

The following table presents Dominion Energy’s changes in AOCI by component, net of tax:

	Deferred gains and losses on derivatives- hedging activities			Unrealized gains and losses on investment securities			Unrecognized pension and other postretirement benefit costs			Other comprehensive loss from equity method investees			Total			Deferred gains and losses on derivatives- hedging activities			Unrealized gains and losses on investment securities			Unrecognized pension and other postretirement benefit costs			Other comprehensive loss from equity method investees			Total
(millions)
Three Months Ended March 31, 2021
Beginning balance																$	(419	)	$	62		$	(1,359	)	$	(1	)	$	(1,717	)
Other comprehensive income before reclassifications: gains (losses)																	39			(31	)		6			0			14
Amounts reclassified from AOCI: (gains) losses⁽¹⁾																	13			1			18			0			32
Net current period other comprehensive income (loss)																	52			(30	)		24			0			46
Ending balance																$	(367	)	$	32		$	(1,335	)	$	(1	)	$	(1,671	)
Three Months Ended March 31, 2020
Beginning balance	$	(407	)	$	37		$	(1,421	)	$	(2	)	$	(1,793	)	$	(407	)	$	37		$	(1,421	)	$	(2	)	$	(1,793	)
Other comprehensive income before reclassifications: gains (losses)		(266	)		9			—			—			(257	)		(266	)		9			—			0			(257	)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾		22			(9	)		19			—			32
Amounts reclassified from AOCI: (gains) losses⁽¹⁾																	22			(9	)		19			0			32
Net current period other comprehensive income (loss)		(244	)		—			19			—			(225	)		(244	)		—			19			0			(225	)
Ending balance	$	(651	)	$	37		$	(1,402	)	$	(2	)	$	(2,018	)	$	(651	)	$	37		$	(1,402	)	$	(2	)	$	(2,018	)
Three Months Ended March 31, 2019
Beginning balance	$	(235	)	$	2		$	(1,465	)	$	(2	)	$	(1,700	)
Other comprehensive income before reclassifications: gains (losses)		(24	)		16			—			—			(8	)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾		(31	)		—			8			—			(23	)
Net current period other comprehensive income (loss)		(55	)		16			8			—			(31	)
Ending balance	$	(290	)	$	18		$	(1,457	)	$	(2	)	$	(1,731	)

(1)	See table below for details about these reclassifications.

The following table presents Dominion Energy’s reclassifications out of AOCI by component:

Details about AOCI components	Amounts reclassified from AOCI			Affected line item in the Consolidated Statements of Income	Amounts reclassified from AOCI			Affected line item in the Consolidated Statements of Income
(millions)
Three Months Ended March 31, 2021
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts					$	1		Purchased gas
Interest rate contracts						16		Interest and related charges
Total						17
Tax						(4	)	Income tax expense (benefit)
Total, net of tax					$	13
Unrealized (gains) and losses on investment securities:
Realized (gains) losses on sale of securities					$	1		Other income (expense)
Total						1
Tax						—		Income tax expense (benefit)
Total, net of tax					$	1
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)					$	(5	)	Other income (expense)
Amortization of actuarial losses						30		Other income (expense)
Total						25
Tax						(7	)	Income tax expense (benefit)
Total, net of tax					$	18
Three Months Ended March 31, 2020
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(7	)	Operating revenue	$	(6	)	Operating revenue
		3		Purchased gas		3		Purchased gas
						(1	)	Discontinued operations
Interest rate contracts		27		Interest and related charges		25		Interest and related charges
						2		Discontinued operations
Foreign currency contracts		6		Other income (expense)		6		Discontinued operations
Total		29				29
Tax		(7	)	Income tax expense (benefit)		(7	)	Income tax expense (benefit)
Total, net of tax	$	22			$	22
Unrealized (gains) and losses on investment securities:
Realized (gains) losses on sale of securities	$	(13	)	Other income (expense)	$	(13	)	Other income (expense)
Total		(13	)			(13	)
Tax		4		Income tax expense (benefit)		4		Income tax expense (benefit)
Total, net of tax	$	(9	)		$	(9	)
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(6	)	Other income (expense)	$	(6	)	Other income (expense)
Amortization of actuarial losses		30		Other income (expense)		30		Other income (expense)
Total		24				24
Tax		(5	)	Income tax expense (benefit)		(5	)	Income tax expense (benefit)
Total, net of tax	$	19			$	19
Three Months Ended March 31, 2019
Deferred (gains) and losses on derivatives-hedging activities:
Commodity contracts	$	(54	)	Operating revenue
		(3	)	Purchased gas
Interest rate contracts		10		Interest and related charges
Foreign currency contracts		6		Other income (expense)
Total		(41	)
Tax		10		Income tax expense (benefit)
Total, net of tax	$	(31	)
Unrecognized pension and other postretirement benefit costs:
Amortization of prior-service costs (credits)	$	(5	)	Other income (expense)
Amortization of actuarial losses		27		Other income (expense)
Total		22
Tax		(14	)	Income tax expense (benefit)
Total, net of tax	$	8

Virginia Power

The following table presents Virginia Power’s changes in AOCI by component, net of tax:

	Deferred gains and losses on derivatives- hedging activities			Unrealized gains and losses on investment securities			Total			Deferred gains and losses on derivatives- hedging activities			Unrealized gains and losses on investment securities			Total
(millions)
Three Months Ended March 31, 2021
Beginning balance										$	(60	)	$	8		$	(52	)
Other comprehensive income before reclassifications: gains (losses)											32			(5	)		27
Amounts reclassified from AOCI: losses⁽¹⁾											1			1			2
Net current period other comprehensive income (loss)											33			(4	)		29
Ending balance										$	(27	)	$	4		$	(23	)
Three Months Ended March 31, 2020
Beginning balance	$	(34	)	$	5		$	(29	)	$	(34	)	$	5		$	(29	)
Other comprehensive income before reclassifications: gains (losses)		(45	)		(2	)		(47	)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾		—			1			1
Other comprehensive income before reclassifications: losses											(45	)		(2	)		(47	)
Amounts reclassified from AOCI: losses⁽¹⁾											—			1			1
Net current period other comprehensive income (loss)		(45	)		(1	)		(46	)		(45	)		(1	)		(46	)
Ending balance	$	(79	)	$	4		$	(75	)	$	(79	)	$	4		$	(75	)
Three Months Ended March 31, 2019
Beginning balance	$	(13	)	$	1		$	(12	)
Other comprehensive income before reclassifications: gains (losses)		(7	)		2			(5	)
Amounts reclassified from AOCI: (gains) losses		—			—			—
Net current period other comprehensive income (loss)		(7	)		2			(5	)
Ending balance	$	(20	)	$	3		$	(17	)

(1)	See table below for details about these reclassifications.

The following table presents Virginia Power’s reclassifications out of AOCI by component:

Details about AOCI components	Amounts reclassified from AOCI			Affected line item in the Consolidated Statements of Income	Amounts reclassified from AOCI			Affected line item in the Consolidated Statements of Income
(millions)
Three Months Ended March 31, 2021
(Gains) losses on cash flow hedges:
Interest rate contracts					$	1		Interest and related charges
Total						1
Tax						—		Income tax expense (benefit)
Total, net of tax					$	1
Unrealized (gains) and losses on investment securities:
Realized (gains) losses on sale of securities					$	1		Other income (expense)
Total						1
Tax						—		Income tax expense (benefit)
Total, net of tax					$	1
Three Months Ended March 31, 2020
Unrealized (gains) and losses on investment securities:
Realized (gains) losses on sale of securities	$	2		Other income (loss)	$	2		Other income (expense)
Total		2				2
Tax		(1	)	Income tax expense (benefit)		(1	)	Income tax expense (benefit)
Total, net of tax	$	1			$	1

~~Dominion Energy Gas~~

~~The following table presents Dominion Energy Gas’ changes in AOCI by component, net of tax:~~

Deferred gains
and losses on
derivatives-
hedging
activities

Unrecognized
pension costs

Total

(millions)

Three Months Ended March 31, 2020

Beginning balance

$
(81
)

$
(106
)

$
(187
)
Other comprehensive income before reclassifications:
   gains (losses)

(91
)

—

(91
)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾

6

1

7

Net current period other comprehensive income (loss)

(85
)

1

(84
)
Ending balance

$
(166
)

$
(105
)

$
(271
)
Three Months Ended March 31, 2019

Beginning balance

$
(25
)

$
(144
)

$
(169
)
Other comprehensive income before reclassifications:
   gains (losses)

(27
)

—

(27
)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾

3

1

4

Net current period other comprehensive income (loss)

(24
)

1

(23
)
Less other comprehensive income (loss) attributable to noncontrolling
   interest

(1
)

—

(1
)
Ending balance

$
(48
)

$
(143
)

$
(191
)

~~(1)~~

~~See table below for details about these reclassifications.~~

~~The following table presents Dominion Energy Gas’ reclassifications out of AOCI by component:~~

Details about AOCI components

Amounts
reclassified
from AOCI

Affected line item in the
Consolidated Statements of Income
(millions)

Three Months Ended March 31, 2020

Deferred (gains) and losses on derivatives-hedging activities:

Interest rate contracts

$
2

Interest and related charges
Foreign currency contracts

6

Other income
Total

8

Tax

(2
)

Income tax expense
Total, net of tax

$
6

Unrecognized pension costs:

Actuarial losses

$
2

Other income
Total

2

Tax

(1
)

Income tax expense
Total, net of tax

$
1

Three Months Ended March 31, 2019

Deferred (gains) and losses on derivatives-hedging activities:

Commodity contracts

$
(2
)

Net income from discontinued operations
Interest rate contracts

(1
)

Interest and related charges
Foreign currency contracts

6

Other income
Total

3

Tax

—

Income tax expense
Total, net of tax

$
3

Unrecognized pension costs:

Actuarial losses

$
2

Other income
Total

2

Tax

(1
)

Income tax expense
Total, net of tax

$
1

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 6 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. See Note 9 in this report for further information about the Companies’ derivatives and hedge accounting activities.

The Companies enter into certain physical and financial forwards, futures, options and swaps, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical and financial forwards, futures and swaps contracts. ~~An option model is used to value Level 3 physical options.~~ The discounted cash flow model for forwards, futures and swaps calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. The option model calculates mark-to-market valuations using variations of the Black-Scholes option model. The inputs into the models are the forward market prices, implied price volatilities, risk-free rate of return, the option expiration dates, the option strike prices, the original sales prices, and volumes. For Level 3 fair value measurements, certain forward market prices ~~and implied price volatilities~~ are considered unobservable.

The following table presents Dominion Energy’s quantitative information about Level 3 fair value measurements at March 31, ~~2020.~~2021. The range and weighted average are presented in dollars for market price ~~inputs and percentages for price volatility.~~inputs.

	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾			Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets
Physical and financial forwards:
Natural gas⁽²⁾	$	48	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 3		(1	)
Natural gas⁽²⁾										$	56	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 3		(1	)
FTRs		1	Discounted cash flow	Market price (per MWh)	⁽³⁾	(1) - 2		—			2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 3		0
Total assets	$	49								$	58
Liabilities
Financial forwards:
FTRs	$	4	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		—		$	2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		0
Physical options:
Natural gas		2	Option model	Market price (per Dth)	⁽³⁾	1 - 2		1
				Price volatility	⁽⁴⁾	45% - 83%		57	%
Total liabilities	$	6								$	2

(1)	Averages weighted by volume.

(2)	Includes basis.

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

~~(4)~~

~~Represents volatilities unrepresented in published markets.~~

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

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

Recurring Fair Value Measurements

Dominion Energy

The following table presents Dominion Energy’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
At March 31, 2020
At March 31, 2021
Assets
Derivatives:
Commodity	$	—	$	72	$	49	$	121	$	0	$	51	$	58	$	109
Interest rate		—		29		—		29		0		740		0		740
Investments⁽¹⁾:
Investments⁽¹⁾:
Equity securities:
U.S.		3,313		—		—		3,313		4,569		0		0		4,569
Fixed income:
Corporate debt instruments		—		496		—		496		0		722		0		722
Government securities		437		739		—		1,176		728		727		0		1,455
Cash equivalents and other		18		2		—		20		18		0		0		18
Total assets	$	3,768	$	1,338	$	49	$	5,155	$	5,315	$	2,240	$	58	$	7,613
Liabilities
Derivatives:
Commodity	$	—	$	43	$	6	$	49	$	0	$	76	$	2	$	78
Interest rate		—		1,580		—		1,580		0		186		0		186
Foreign currency		—		17		—		17
Total liabilities	$	—	$	1,640	$	6	$	1,646	$	0	$	262	$	2	$	264
At December 31, 2019
At December 31, 2020
Assets
Derivatives:
Commodity	$	—	$	55	$	19	$	74	$	0	$	57	$	110	$	167
Interest rate		—		11		—		11		0		230		0		230
Foreign currency		—		8		—		8
Investments⁽¹⁾:
Investments⁽¹⁾:
Equity securities:
U.S.		4,195		—		—		4,195		4,648		0		0		4,648
Fixed income:
Corporate debt instruments		—		463		—		463		0		629		0		629
Government securities		473		719		—		1,192		508		730		0		1,238
Cash equivalents and other		19		1		—		20		32		15		0		47
Total assets	$	4,687	$	1,257	$	19	$	5,963	$	5,188	$	1,661	$	110	$	6,959
Liabilities
Derivatives:
Commodity	$	—	$	75	$	56	$	131	$	0	$	48	$	7	$	55
Interest rate		—		606		—		606		0		431		0		431
Foreign currency		—		3		—		3
Total liabilities	$	—	$	684	$	56	$	740	$	0	$	479	$	7	$	486

(1)

Includes investments held in the nuclear decommissioning and rabbi trusts. Excludes ~~$277~~$399 million and ~~$274~~$340 million of assets at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

The following table presents the net change in Dominion Energy's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2020			2019			2021			2020
(millions)
Beginning balance	$	(37	)	$	64		$	103		$	(37	)
Total realized and unrealized gains (losses):
Included in earnings:
Operating revenue		—			(1	)
Electric fuel and other energy-related purchases		(22	)		(4	)		(21	)		(22	)
Included in regulatory assets/liabilities		80			7			(47	)		80
Settlements		22			(1	)		21			22
Purchases		—			(10	)
Transfers out of Level 3		—			(2	)
Ending balance	$	43		$	53		$	56		$	43

There are less than $1 million of unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2021. There were 0 unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the ~~quarters~~three months ended March 31, ~~2020 and 2019.~~2020.

Virginia Power

The following table presents Virginia Power’s quantitative information about Level 3 fair value measurements at March 31, ~~2020.~~2021. The range and weighted average are presented in dollars for market price ~~inputs and percentages for price volatility.~~inputs.

	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾			Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets
Physical and financial forwards:
Natural gas⁽²⁾	$	48	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 2		(1	)
Natural gas⁽²⁾										$	56	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 3		(1	)
FTRs		1	Discounted cash flow	Market price (per MWh)	⁽³⁾	(1) - 2		—			2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 3		0
Total assets	$	49								$	58
Liabilities
Financial forwards:
FTRs	$	4	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		—		$	2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		0
Physical options:
Natural gas		2	Option model	Market price (per Dth)	⁽³⁾	1 - 2		1
				Price volatility	⁽⁴⁾	45% - 83%		57	%
Total liabilities	$	6								$	2

(1)	Averages weighted by volume.

(2)	Includes basis.

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

~~(4)~~

~~Represents volatilities unrepresented in published markets~~.

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

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

The following table presents Virginia Power’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
At March 31, 2020
At March 31, 2021
Assets
Derivatives:
Commodity	$	—	$	2	$	49	$	51	$	0	$	18	$	58	$	76
Investments⁽¹⁾:
Interest rate										0		283		0		283
Investments⁽¹⁾:
Equity securities:
U.S.		1,506		—		—		1,506		2,132		0		0		2,132
Fixed income:
Corporate debt instruments		—		285		—		285		0		400		0		400
Government securities		162		357		—		519		340		277		0		617
Total assets	$	1,668	$	644	$	49	$	2,361	$	2,472	$	978	$	58	$	3,508
Liabilities
Derivatives:
Commodity	$	—	$	18	$	6	$	24	$	0	$	26	$	2	$	28
Interest rate		—		991		—		991		0		150		0		150
Total liabilities	$	—	$	1,009	$	6	$	1,015	$	0	$	176	$	2	$	178
At December 31, 2019
At December 31, 2020
Assets
Derivatives:
Commodity	$	—	$	3	$	19	$	22	$	0	$	5	$	110	$	115
Interest rate		—		2		—		2		0		66		0		66
Investments⁽¹⁾:
Investments⁽¹⁾:
Equity securities:
U.S.		1,920		—		—		1,920		2,171		0		0		2,171
Fixed income:
Corporate debt instruments		—		256		—		256		0		348		0		348
Government securities		186		361		—		547		201		309		0		510
Cash equivalents and other		—		1		—		1		13		0		0		13
Total assets	$	2,106	$	623	$	19	$	2,748	$	2,385	$	728	$	110	$	3,223
Liabilities
Derivatives:
Commodity	$	—	$	47	$	56	$	103	$	0	$	22	$	7	$	29
Interest rate		—		363		—		363		0		376		0		376
Total liabilities	$	—	$	410	$	56	$	466	$	0	$	398	$	7	$	405

(1)

Includes investments held in the nuclear decommissioning trusts. Excludes ~~$157~~$199 million and ~~$159~~$167 million of assets at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

The following table presents the net change in Virginia Power’s assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2020			2019			2021			2020
(millions)
Beginning balance	$	(37	)	$	60		$	103		$	(37	)
Total realized and unrealized losses:
Total realized and unrealized gains (losses):
Included in earnings:
Electric fuel and other energy-related purchases		(22	)		(4	)		(21	)		(22	)
Included in regulatory assets/liabilities		80			8			(47	)		80
Settlements		22			(5	)		21			22
Ending balance	$	43		$	59		$	56		$	43

There were 0 unrealized gains or losses included in earnings in the Level 3 fair value category relating to assets/liabilities still held at the reporting date for the three months ended March 31, ~~2020~~2021 and ~~2019.~~

~~Dominion Energy Gas~~

The following table presents Dominion Energy Gas’ assets and liabilities for derivatives that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions.2020.

Level 1

Level 2

Level 3

Total

(millions)

At March 31, 2020

Liabilities

Interest rate

$
—

$
190

$
—

$
190

Foreign currency

—

17

—

17

Total liabilities

$
—

$
207

$
—

$
207

At December 31, 2019

Assets

Foreign currency

$
—

$
8

$
—

$
8

Total assets

$
—

$
8

$
—

$
8

Liabilities

Interest rate

$
—

$
83

$
—

$
83

Foreign currency

—

3

—

3

Total liabilities

$
—

$
86

$
—

$
86

Fair Value of Financial Instruments

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

	March 31, 2020				December 31, 2019				March 31, 2021				December 31, 2020
	Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾
(millions)
Dominion Energy
Long-term debt⁽²⁾	$	32,984	$	35,685	$	32,055	$	36,155
Junior subordinated notes⁽³⁾		4,407		4,381		4,797		4,953
Long-term debt⁽²⁾⁽³⁾									$	31,991	$	36,334	$	31,996	$	38,773
Supplemental 364-Day credit facility borrowings										0		0		225		225
Junior subordinated notes⁽⁴⁾										3,412		3,579		3,411		3,633
Virginia Power
Long-term debt⁽³⁾	$	12,327	$	13,998	$	12,326	$	14,281
Dominion Energy Gas
Long-term debt⁽⁴⁾	$	5,516	$	5,479	$	5,520	$	5,738
Long-term debt⁽⁴⁾									$	13,209	$	15,174	$	13,207	$	16,455

(1)

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

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or ~~premium and foreign currency remeasurement adjustments.~~premium. At both March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, the carrying amount includes the valuation of certain fair value hedges associated with fixed rate debt of ~~$4 million and $4 million, respectively.~~$3 million.

(3)	~~Carrying amount includes current portions included in securities due within one year and~~Includes amounts ~~which represent the unamortized debt issuance costs, discount or premium.~~classified as held for sale, see Note 3.

(4)	Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs, discount or ~~premium and foreign currency remeasurement adjustments.~~premium.

Note 9. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. See Note 8 in this report for further information about fair value measurements and associated valuation methods for derivatives.

Derivative assets and liabilities are presented gross on the Companies’ Consolidated Balance Sheets. ~~Dominion Energy’s~~The Companies’ derivative contracts include both over-the-counter transactions and those that are executed on an exchange or other trading platform (exchange contracts) and centrally cleared. ~~Virginia Power and Dominion Energy Gas’ derivative contracts include over-the-counter transactions.~~ Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Exchange contracts utilize a financial intermediary, exchange, or clearinghouse to enter, execute or clear the transactions. Certain over-the-counter and exchange contracts contain contractual rights of setoff through master netting arrangements, derivative clearing

agreements and contract default provisions. In addition, the contracts are subject to conditional rights of setoff through counterparty nonperformance, insolvency or other conditions.

In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit, and in some cases other forms of ~~security,~~securities, none of which are subject to restrictions. Cash collateral, ~~is used~~as presented in the table below, is used to offset derivative assets and liabilities. Certain accounts receivable and accounts payable recognized on the Companies’ Consolidated Balance Sheets, ~~as well as~~ letters of credit and other forms of ~~security,~~securities, as well as certain long-term debt, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure. See Note 18 for further information regarding credit-related contingent features for the Companies’ derivative instruments.

Dominion Energy

Balance Sheet Presentation

The tables below present Dominion Energy’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	March 31, 2020								December 31, 2019								March 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	55	$	3	$	—	$	52	$	35	$	21	$	—	$	14	$	76	$	18	$	0	$	58	$	117	$	9	$	0	$	108
Exchange		64		16		34		14		37		21		—		16		33		33		0		0		49		24		0		25
Interest rate contracts:
Over-the-counter		29		21		—		8		11		3		—		8		740		19		0		721		230		13		0		217
Foreign currency contracts:
Over-the-counter		—		—		—		—		8		8		—		—
Total derivatives, subject to a master netting or similar arrangement	$	148	$	40	$	34	$	74	$	91	$	53	$	—	$	38	$	849	$	70	$	0	$	779	$	396	$	46	$	0	$	350

(1)	Excludes $2less than $1 million and $2$1 million of derivative assets at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which are not subject to master netting or similar arrangements.

	March 31, 2020								December 31, 2019								March 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	27	$	3	$	1	$	23	$	105	$	21	$	—	$	84	$	28	$	18	$	0	$	10	$	30	$	9	$	0	$	21
Exchange		16		16		—		—		21		21		—		—		50		33		17		0		24		24		0		0
Interest rate contracts:
Over-the-counter		1,580		21		23		1,536		606		8		35		563		186		19		11		156		431		13		17		401
Foreign currency contracts:
Over-the-counter		17		—		—		17		3		3		—		—
Total derivatives, subject to a master netting or similar arrangement	$	1,640	$	40	$	24	$	1,576	$	735	$	53	$	35	$	647	$	264	$	70	$	28	$	166	$	485	$	46	$	17	$	422

(1)

Excludes $6less than $1 million and $5$1 million of derivative liabilities at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which are not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of Dominion Energy’s derivative activity at March 31, ~~2020.~~2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		81		36
Fixed price⁽¹⁾						60		19
Basis		268		574		202		496
Electricity (MWh):
Fixed price		3,088,875		—		10,745,307		9,789,934
FTRs		18,836,472		—		18,264,727		0
Liquids (Gal)⁽²⁾		39,690,000		—
Interest rate⁽³⁾	$	2,450,000,000	$	5,582,850,761
Foreign currency⁽³⁾	€	-	€	250,000,000
Interest rate⁽²⁾ (millions)					$	1,250	$	5,407

(1)	Includes options.

(2)	~~Includes NGLs.~~

~~(3)~~

Maturity is determined based on final settlement period.

AOCI

The following table presents selected information related to ~~gains (losses)~~losses on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at March 31, ~~2020:~~2021:

AOCI
After-Tax

Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax

Maximum Term
(millions)

Commodities:

Gas

$
(2
)

$
(2
)

21 months
Electricity

14

14

9 months
NGL

1

1

9 months
Interest rate

(655
)

(50
)

381 months
Foreign currency

(9
)

(1
)

75 months
Total

$
(651
)

$
(38
)

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(367	)	$	(40	)	393 months
Total	$	(367	)	$	(40	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., ~~anticipated sales)~~interest rate payments) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in ~~market prices,~~ interest ~~rates and foreign currency exchange~~ rates.

Fair Value Hedges

For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings and presented in the same line item. There were 0 derivative instruments designated inas fair value hedges during the three months ended March 31, ~~2020. Gains~~2021 and ~~losses on derivatives in fair value hedge relationships were immaterial for the three months ended~~ March 31, ~~2019.~~2020.

The following table presents the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:

	Carrying Amount of the Hedged Asset (Liability)⁽¹⁾						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)⁽²⁾						Carrying Amount of the Hedged Asset (Liability)⁽¹⁾						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)⁽²⁾
	March 31, 2020			December 31, 2019			March 31, 2020			December 31, 2019			March 31, 2021			December 31, 2020			March 31, 2021			December 31, 2020
(millions)
Long-term debt	$	(1,154	)	$	(1,154	)	$	(4	)	$	(4	)	$	(1,153	)	$	(1,153	)	$	(3	)	$	(3	)

(1)	Includes ~~$(1.1)~~$(1.2) billion ~~and $(397) million~~ related to discontinued hedging relationships at both March 31, ~~2020~~2021 and December 31, ~~2019, respectively.~~2020.

(2)	Includes ~~$(4) million and $3~~$(3) million of hedging adjustments on discontinued hedging relationships at both March 31, ~~2020~~2021 and December 31, ~~2019, respectively.~~2020.

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of Dominion Energy’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
March 31, 2020
March 31, 2021
ASSETS
Current Assets
Commodity	$	—	$	80	$	80	$	0	$	24	$	24
Interest rate		—		11		11		0		12		12
Total current derivative assets⁽¹⁾		—		91		91
Total current derivative assets⁽¹⁾								0		36		36
Noncurrent Assets
Commodity		—		41		41		0		85		85
Interest rate		—		18		18		287		441		728
Total noncurrent derivative assets⁽²⁾		—		59		59
Total noncurrent derivative assets⁽²⁾								287		526		813
Total derivative assets	$	—	$	150	$	150	$	287	$	562	$	849
LIABILITIES
Current Liabilities
Commodity	$	—	$	45	$	45	$	0	$	61	$	61
Interest rate		515		232		747		150		10		160
Foreign currency		1		—		1
Total current derivative liabilities		516		277		793
Total current derivative liabilities⁽³⁾								150		71		221
Noncurrent Liabilities
Commodity		—		4		4		0		17		17
Interest rate		722		111		833		0		26		26
Foreign currency		16		—		16
Total noncurrent derivative liabilities		738		115		853
Total noncurrent derivative liabilities⁽⁴⁾								0		43		43
Total derivative liabilities	$	1,254	$	392	$	1,646	$	150	$	114	$	264
December 31, 2019
December 31, 2020
ASSETS
Current Assets
Commodity	$	30	$	37	$	67	$	0	$	58	$	58
Interest rate		1		—		1		0		9		9
Total current derivative assets⁽¹⁾		31		37		68
Total current derivative assets⁽¹⁾								0		67		67
Noncurrent Assets
Commodity		1		6		7		0		109		109
Interest rate		10		—		10		66		155		221
Foreign currency		8		—		8
Total noncurrent derivative assets⁽²⁾		19		6		25
Total noncurrent derivative assets⁽²⁾								66		264		330
Total derivative assets	$	50	$	43	$	93	$	66	$	331	$	397
LIABILITIES
Current Liabilities
Commodity	$	6	$	77	$	83	$	0	$	42	$	42
Interest rate		321		1		322		363		10		373
Foreign currency		3		—		3
Total current derivative liabilities		330		78		408
Total current derivative liabilities⁽³⁾								363		52		415
Noncurrent Liabilities
Commodity		1		47		48		0		13		13
Interest rate		267		17		284		19		39		58
Total noncurrent derivative liabilities		268		64		332
Total noncurrent derivative liabilities⁽⁴⁾								19		52		71
Total derivative liabilities	$	598	$	142	$	740	$	382	$	104	$	486

(1)

Current derivative assets ~~are presented~~include $31 million and $63 million in other current assets in Dominion Energy’s Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, respectively. The remainder is recorded in current assets held for sale in Dominion Energy’s Consolidated Balance Sheets.

(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy’s Consolidated Balance Sheets.

(3)

Current derivative liabilities include $217 million and $412 million at March 31, 2021 and December 31, 2020, respectively, presented in other current liabilities in Dominion Energy’s Consolidated Balance Sheets. The remainder is in current liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets.

(4)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy’s Consolidated Balance Sheets.

The following tables present the gains and losses on Dominion Energy’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income.

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾			Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended March 31, 2021
Derivative type and location of gains (losses):
Commodity:
Purchased gas										$	—		$	(1	)	$	—
Interest rate:
Interest and related charges											52			(16	)		408
Total										$	52		$	(17	)	$	408
Three Months Ended March 31, 2020
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	7								$	6
Purchased gas					(3	)								(3	)
Total commodity	$	—		$	4		$	—
Interest rate⁽³⁾		(336	)		(27	)		(563	)
Foreign currency⁽⁴⁾		(23	)		(6	)		—
Discontinued operations														1
Total Commodity										$	—		$	4		$	—
Interest rate:
Interest and related charges														(25	)
Discontinued operations														(2	)
Total interest rate											(336	)		(27	)		(563	)
Foreign currency⁽³⁾											(23	)		(6	)		—
Total	$	(359	)	$	(29	)	$	(563	)	$	(359	)	$	(29	)	$	(563	)
Three Months Ended March 31, 2019
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	54
Purchased gas					3
Total commodity	$	66		$	57		$	—
Interest rate⁽³⁾		(84	)		(10	)		(84	)
Foreign currency⁽⁴⁾		(11	)		(6	)		—
Total	$	(29	)	$	41		$	(84	)

(1)	Amounts deferred into AOCI have no associated effect in Dominion Energy’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

~~(3)~~

(3) Amounts recorded in Dominion Energy’s Consolidated Statement of Income are classified in discontinued operations.

~~Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.~~

~~(4)~~

~~Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in other income (expense).~~

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2020			2019			2021			2020
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	65		$	3		$	(41	)	$	51
Purchased gas		(14	)		3			0			(11	)
Electric fuel and other energy-related purchases		(65	)		(9	)		(44	)		(65	)
Interest rate⁽²⁾		(61	)		—
Discontinued operations								0			11
Interest rate:
Interest and related charges								319			(53	)
Discontinued operations								0			(8	)
Total	$	(75	)	$	(3	)	$	234		$	(75	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

~~(2)~~

~~Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.~~

Virginia Power

Balance Sheet Presentation

The tables below present Virginia Power’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	March 31, 2020								December 31, 2019								March 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	48	$	1	$	—	$	47	$	19	$	18	$	—	$	1	$	71	$	15	$	0	$	56	$	111	$	6	$	0	$	105
Exchange																		3		3		0		0	1		1			0		0
Interest rate contracts:
Over-the-counter		—		—		—		—		2		—		—		2		283		19		0		264	66		7			0		59
Total derivatives, subject to a master netting or similar arrangement	$	48	$	1	$	—	$	47	$	21	$	18	$	—	$	3	$	357	$	37	$	0	$	320	$	178	$	14	$	0	$	164

(1)	Excludes $3$2 million and $3 million of derivative assets at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which are not subject to master netting or similar arrangements.

	March 31, 2020								December 31, 2019								March 31, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	4	$	1	$	1	$	2	$	59	$	18	$	—	$	41	$	19	$	15	$	0	$	4	$	6	$	6	$	0	$	0
Exchange																		4		3		1		0	1		1			0		0
Interest rate contracts:
Over-the-counter		991		—		—		991		363		—		—		363		150		19		0		131	376		7			0		369
Total derivatives, subject to a master netting or similar arrangement	$	995	$	1	$	1	$	993	$	422	$	18	$	—	$	404	$	173	$	37	$	1	$	135	$	383	$	14	$	0	$	369

(1)

Excludes ~~$20~~$5 million and ~~$44~~$22 million of derivative liabilities at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which are not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of Virginia Power’s derivative activity at March 31, ~~2020.~~2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		37		14
Fixed price⁽¹⁾						35		18
Basis		160		536		151		495
Electricity (MWh):
Fixed price						3,770,002		3,029,859
FTRs		18,836,472		—		18,264,727		0
Interest rate⁽²⁾	$	900,000,000	$	1,150,000,000
Interest rate⁽²⁾ (millions)					$	850	$	1,200

(1)	Includes options.

(2)	Maturity is determined based on final settlement period.

AOCI

The following table presents selected information related to ~~gains (losses)~~losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at March 31, ~~2020:~~2021:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(79	)	$	(1	)	381 months	$	(27	)	$	(2	)	393 months
Total	$	(79	)	$	(1	)		$	(27	)	$	(2	)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest payments) in earnings, thereby achieving the realization of interest rates contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates.

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of Virginia Power’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
March 31, 2020
March 31, 2021
ASSETS
Current Assets
Commodity	$	—	$	14	$	14	$	0	$	11	$	11
Total current derivative assets⁽¹⁾		—		14		14
Total current derivative assets⁽¹⁾								0		11		11
Noncurrent Assets
Commodity		—		37		37		0		65		65
Total noncurrent derivative assets⁽²⁾		—		37		37
Interest rate								283		0		283
Total noncurrent derivative assets⁽²⁾								283		65		348
Total derivative assets							$	283	$	76	$	359
LIABILITIES
Current Liabilities
Commodity							$	0	$	21	$	21
Interest rate								150		0		150
Total current derivative liabilities								150		21		171
Noncurrent Liabilities
Commodity								0		7		7
Total noncurrent derivative liabilities⁽³⁾								0		7		7
Total derivative liabilities							$	150	$	28	$	178
December 31, 2020
ASSETS
Current Assets
Commodity							$	0	$	22	$	22
Total current derivative assets⁽¹⁾								0		22		22
Noncurrent Assets
Commodity								0		93		93
Interest rate								66		0		66
Total noncurrent derivative assets⁽²⁾								66		93		159
Total derivative assets	$	—	$	51	$	51	$	66	$	115	$	181
LIABILITIES
Current Liabilities
Commodity	$	—	$	23	$	23	$	0	$	28	$	28
Interest rate		458		—		458		362		0		362
Total current derivative liabilities		458		23		481		362		28		390
Noncurrent Liabilities
Commodity		—	1			1		0		1		1
Interest rate		533		—		533		14		0		14
Total noncurrent derivatives liabilities⁽³⁾		533		1		534
Total noncurrent derivative liabilities⁽³⁾								14		1		15
Total derivative liabilities	$	991	$	24	$	1,015	$	376	$	29	$	405
December 31, 2019
ASSETS
Current Assets
Commodity	$	—	$	20	$	20
Total current derivative assets⁽¹⁾		—		20		20
Noncurrent Assets
Commodity		—		2		2
Interest rate		2		—		2
Total noncurrent derivative assets⁽²⁾		2		2		4
Total derivative assets	$	2	$	22	$	24
LIABILITIES
Current Liabilities
Commodity	$	—	$	58	$	58
Interest rate		185		—		185
Total current derivative liabilities		185		58		243
Noncurrent Liabilities
Commodity		—		45		45
Interest rate		178		—		178
Total noncurrent derivatives liabilities⁽³⁾		178		45		223
Total derivative liabilities	$	363	$	103	$	466

(1)	Current derivative assets are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.

(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power’s Consolidated Balance Sheets.

(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheets.

The following tables present the gains and losses on Virginia Power’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income		Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾			Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended March 31, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾									$	43		$	(1	)	$	407
Total									$	43		$	(1	)	$	407
Three Months Ended March 31, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(61	)	$	—	$	(565	)
Interest rate⁽³⁾									$	(61	)	$	0		$	(565	)
Total	$	(61	)	$	—	$	(565	)	$	(61	)	$	0		$	(565	)
Three Months Ended March 31, 2019
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(9	)	$	—	$	(84	)
Total	$	(9	)	$	—	$	(84	)

(1)	Amounts deferred into AOCI have no associated effect in Virginia Power’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.

(3)	Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in interest and related charges.

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2020			2019			2021			2020
(millions)
Derivative type and location of gains (losses):
Commodity⁽²⁾	$	(65	)	$	(9	)
Commodity:
Electric fuel and other energy-related purchases							$	(44	)	$	(65	)
Operating revenue								(2	)		0
Total	$	(65	)	$	(9	)	$	(46	)	$	(65	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.

~~(2)~~

~~Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.~~

~~Dominion Energy Gas~~

~~Balance Sheet Presentation~~

The tables below present Dominion Energy Gas’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

March 31, 2020

December 31, 2019

Gross Amounts Not Offset
in the Consolidated
Balance Sheet

Gross Amounts Not Offset
in the Consolidated
Balance Sheet

Gross Assets
Presented in the
Consolidated
Balance Sheet

Financial
Instruments

Cash
Collateral
Received

Net
Amounts

Gross Assets
Presented in the
Consolidated
Balance Sheet

Financial
Instruments

Cash
Collateral
Received

Net
Amounts

(millions)

Foreign currency contracts:

Over-the-counter

$
—

$
—

$
—

$
—

$
8

$
8

$
—

$
—

Total derivatives, subject to a
master netting or similar
arrangement

$
—

$
—

$
—

$
—

$
8

$
8

$
—

$
—

March 31, 2020

December 31, 2019

Gross Amounts Not Offset
in the Consolidated
Balance Sheet

Gross Amounts Not Offset
in the Consolidated
Balance Sheet

Gross
Liabilities Presented
in the Consolidated
Balance Sheet

Financial
Instruments

Cash
Collateral
Paid

Net
Amounts

Gross
Liabilities Presented
in the Consolidated
Balance Sheet

Financial
Instruments

Cash
Collateral
Paid

Net
Amounts

(millions)

Interest rate contracts:

Over-the-counter

$
190

$
—

$
—

$
190

$
83

$
5

$
—

$
78

Foreign currency contracts:

Over-the-counter

17

—

—

17

3

3

—

—

Total derivatives, subject to a
master netting or similar
arrangement

$
207

$
—

$
—

$
207

$
86

$
8

$
—

$
78

~~Volumes~~

The following table presents the volume of Dominion Energy Gas’ derivative activity at March 31, 2020. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

Current

Noncurrent

Interest rate⁽¹⁾

$
250,000,000

$
1,050,000,000

Foreign currency⁽¹⁾

€
-

€
250,000,000

~~(1)~~

~~Maturity is determined based on final settlement period.~~

~~AOCI~~

~~The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Energy Gas’ Consolidated Balance Sheet at March 31, 2020:~~

AOCI
After-Tax

Amounts Expected
to be Reclassified to
Earnings During the
Next 12 Months
After-Tax

Maximum Term
(millions)

Interest rate

$
(157
)

$
(11
)

297 months
Foreign currency

(9
)

(1
)

75 months
Total

$
(166
)

$
(12
)

The amounts that will be reclassified from AOCI to earnings will generally be offset by the recognition of the hedged transactions (e.g., interest payments) in earnings, thereby achieving the realization of prices contemplated by the underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in interest rates and foreign currency exchange rates.

~~Fair Value and Gains and Losses on Derivative Instruments~~

~~The following tables present the fair values of Dominion Energy Gas’ derivatives and where they are presented in its Consolidated Balance Sheets:~~

Fair Value-
Derivatives
Under Hedge
Accounting

Fair Value-Derivatives
Not Under Hedge
Accounting

Total Fair Value

(millions)

March 31, 2020

LIABILITIES

Current Liabilities

Interest rate

$
57

$
11

$
68

Foreign currency

1

—

1

Total current derivative liabilities⁽²⁾

58

11

69

Noncurrent Liabilities

Interest rate

119

3

122

Foreign currency

16

—

16

Total noncurrent derivative liabilities⁽³⁾

135

3

138

Total derivative liabilities

$
193

$
14

$
207

December 31, 2019

ASSETS

Noncurrent Assets

Foreign currency

$
8

$
—

$
8

Total noncurrent derivative assets⁽¹⁾

8

—

8

Total derivative assets

$
8

$
—

$
8

LIABILITIES

Current Liabilities

Interest rate

$
30

$
—

$
30

Foreign currency

3

—

3

Total current derivative liabilities⁽²⁾

33

—

33

Noncurrent Liabilities

Interest rate

53

—

53

Total noncurrent derivative liabilities⁽³⁾

53

—

53

Total derivative liabilities

$
86

$
—

$
86

~~(1)~~

~~Noncurrent derivatives assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.~~

~~(2)~~

~~Current derivative liabilities are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.~~

~~(3)~~

~~Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.~~

The following table presents the gains and losses on Dominion Energy Gas’ derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:

Derivatives in cash flow hedging relationships

Amount of Gain
(Loss) Recognized in AOCI on
Derivatives⁽¹⁾

Amount of Gain
(Loss) Reclassified From AOCI
to Income

(millions)

Three Months Ended March 31, 2020

Derivative Type and Location of Gains (Losses):

Interest rate⁽²⁾

$
(100
)

$
(2
)
Foreign currency⁽³⁾

(23
)

(6
)
Total

$
(123
)

$
(8
)
Three Months Ended March 31, 2019

Derivative Type and Location of Gains (Losses):

Commodity:

Net income from discontinued operations

$
2

Total commodity

$
(1
)

$
2

Interest rate⁽²⁾

(24
)

1

Foreign currency⁽³⁾

(11
)

(6
)
Total

$
(36
)

$
(3
)

~~(1)~~

~~Amounts deferred into AOCI have no associated effect in Dominion Energy Gas’ Consolidated Statements of Income.~~

~~(2)~~

~~Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.~~

~~(3)~~

~~Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in other income.~~

Derivatives not designated as hedging instruments

Amount of Gain (Loss) Recognized in Income on Derivatives

Three Months Ended

March 31,

2020

2019

(millions)

Derivative type and location of gains (losses):

Interest rate⁽¹⁾

$
(8
)

$
—

Total

$
(8
)

$
—

~~(1)~~

~~Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.~~

Note 10. Investments

Dominion Energy

Equity and Debt Securities

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled ~~$116~~$139 million and ~~$120~~$134 million at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

Decommissioning Trust Securities

Dominion Energy holds equity and fixed income securities, insurance contracts and cash equivalents in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Dominion Energy’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses			Fair Value			Amortized Cost			Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value
(millions)
March 31, 2020
March 31, 2021
Equity securities:⁽¹⁾
U.S.	$	1,813	$	1,709	$	(161	)		$	—		$	3,361		$	1,573		$	3,036	$	(10	)				$	4,599
Fixed income securities:⁽²⁾
Corporate debt instruments		491		18		—				(13	)		496			698			32		(8	)		$	0		722
Government securities		1,084		55		—				(6	)		1,133			1,369			47		(14	)			0		1,402
Common/collective trust funds		118		2		—				(2	)		118			221			6		0				0		227
Insurance contracts		209		—		—				—			209			237			—		—						237
Cash equivalents and other⁽³⁾		—		—		(4	)			—			(4	)
Cash equivalents and other⁽³⁾																(51	)		3		—				0		(48	)
Total	$	3,715	$	1,784	$	(165	)	⁽⁴⁾	$	(21	)	$	5,313		$	4,047		$	3,124	$	(32	)	⁽⁴⁾	$	0	$	7,139
December 31, 2019
December 31, 2020
Equity securities:⁽¹⁾
U.S.	$	1,807	$	2,451	$	(20	)		$	—		$	4,238		$	1,756		$	2,948	$	(24	)				$	4,680
Fixed income securities:⁽²⁾
Corporate debt instruments		434		29		—				—			463			572			58		(1	)		$	0		629
Government securities		1,108		39		(2	)			—			1,145			1,119			66		(1	)			0		1,184
Common/collective trust funds		115		4		—				—			119			170			5		0				0		175
Insurance contracts		214		—		—				—			214			237			0		0						237
Cash equivalents and other⁽³⁾		13		—		—				—			13
Cash equivalents and other⁽³⁾																(8	)		4		(1	)			0		(5	)
Total	$	3,691	$	2,523	$	(22	)	⁽⁴⁾	$	—		$	6,192		$	3,846		$	3,081	$	(27	)	⁽⁴⁾	$	0	$	6,900

(1)	U~~nrealized~~Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)	Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. ~~Effective January 2020, changes~~Changes in allowance for credit losses are included in other ~~income (expense).~~income.

(3)	Includes pending purchases of securities of ~~$12~~$63 million and $1$49 million at March 31, ~~2020~~2021 and December 31, ~~2019, respectively~~. 2020, respectively.

(4)	The fair value of securities in an unrealized loss position was ~~$415~~$937 million and ~~$298~~$293 millionat March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy’s nuclear decommissioning trusts is summarized below:

	Three Months Ended March 31,						Three Months Ended March 31,
	2020			2019			2021			2020
(millions)
Net gains (losses) recognized during the period	$	(898	)	$	414		$	279		$	(898	)
Less: Net (gains) losses recognized during the period on securities sold during the period		14			(19	)		(178	)		14
Unrealized gains (losses) recognized during the period on securities still held at March 31, 2020 and 2019⁽¹⁾	$	(884	)	$	395
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾							$	101		$	(884	)

(1)	Included in other income and the nuclear decommissioning trust regulatory liability.

The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, ~~2020~~2021 by contractual maturity is as follows:

	Amount		Amount
(millions)
Due in one year or less	$	178	$	292
Due after one year through five years		430		640
Due after five years through ten years		389		614
Due after ten years		750		805
Total	$	1,747	$	2,351

Presented below is selected information regarding Dominion Energy’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.

	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2021		2020
(millions)
Proceeds from sales	$	602	$	506	$	1,765	$	602
Realized gains⁽¹⁾		66		43
Realized losses⁽¹⁾		69		23
Realized gains⁽¹⁾						232		66
Realized losses⁽¹⁾						59		69

(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Virginia Power

Virginia Power holds equity and fixed income securities and cash equivalents in nuclear decommissioning trust funds to fund future decommissioning costs for its nuclear plants. Virginia Power’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses			Fair Value		Amortized Cost			Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value
(millions)
March 31, 2020
March 31, 2021
Equity securities:⁽¹⁾
U.S.	$	898	$	796	$	(80	)		$	—		$	1,614	$	839		$	1,414	$	(9	)				$	2,244
Fixed income securities:⁽²⁾
Corporate debt instruments		284		9		—				(8	)		285		385			18		(3	)		$	0		400
Government securities		504		18		—				(4	)		518		601			18		(3	)			0		616
Common/collective trust funds		49		—		—				—			49		86			0		0				0		86
Cash equivalents and other⁽³⁾		2		—		—				—			2
Cash equivalents and other⁽³⁾															(24	)		—		—				0		(24	)
Total	$	1,737	$	823	$	(80	)	⁽⁴⁾	$	(12	)	$	2,468	$	1,887		$	1,450	$	(15	)	⁽⁴⁾	$	0	$	3,322
December 31, 2019
December 31, 2020
Equity securities:⁽¹⁾
U.S.	$	894	$	1,144	$	(11	)		$	—		$	2,027	$	929		$	1,371	$	(21	)				$	2,279
Fixed income securities:⁽²⁾
Corporate debt instruments		241		15		—				—			256		315			33		0			$	0		348
Government securities		534		14		(2	)			—			546		484			25		—				0		509
Common/collective trust funds		51		—		—				—			51		58			0		0				0		58
Cash equivalents and other		1		—		—				—			1
Cash equivalents and other⁽³⁾															3			—		—				0		3
Total	$	1,721	$	1,173	$	(13	)	⁽⁴⁾	$	—		$	2,881	$	1,789		$	1,429	$	(21	)	⁽⁴⁾	$	0	$	3,197

(1)	Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)	Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. ~~Effective January 2020, changes~~Changes in allowance for credit losses are included in other ~~income (expense).~~income.

(3)	Includes pending ~~sales~~purchases of securities of $2$24 million and $10 million at March 31, ~~2020.~~2021 and December 31, 2020, respectively.

(4)	The fair value of securities in an unrealized loss position was ~~$241~~$434 million and ~~$185~~$142 million at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

The portion of unrealized gains and losses that relates to equity securities held within Virginia Power’s nuclear decommissioning trusts is summarized below:

	Three Months Ended March 31,						Three Months Ended March 31,
	2020			2019			2021			2020
(millions)
Net gains (losses) recognized during the period	$	(423	)	$	186		$	143		$	(423	)
Less: Net (gains) losses recognized during the period on securities sold during the period		6			(1	)		(88	)		6
Unrealized gains (losses) recognized during the period on securities still held at March 31, 2020 and 2019⁽¹⁾	$	(417	)	$	185
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾							$	55		$	(417	)

(1)	Included in other income and the nuclear decommissioning trust regulatory liability.

The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, ~~2020~~2021 by contractual maturity is as follows:

	Amount		Amount
(millions)
Due in one year or less	$	73	$	111
Due after one year through five years		200		314
Due after five years through ten years		211		365
Due after ten years		368		312
Total	$	852	$	1,102

Presented below is selected information regarding Virginia Power’s equity and fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds.

	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2021		2020
(millions)
Proceeds from sales	$	294	$	253	$	789	$	294
Realized gains⁽¹⁾		31		10
Realized losses⁽¹⁾		31		9
Realized gains⁽¹⁾						106		31
Realized losses⁽¹⁾						23		31

(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Equity Method Investments

Dominion Energy

~~Atlantic Coast Pipeline~~

In September 2014, Dominion Energy, along with Duke and Southern, announced the formation of Atlantic Coast Pipeline. Atlantic Coast Pipeline is focused on constructing an approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina. Subsidiaries and affiliates of Dominion Energy, Duke and Southern plan to be customers of the pipeline under 20-year contracts.

In March 2020, Dominion Energy completed the acquisition from Southern of its 5% membership interest in Atlantic Coast Pipeline and its 100% ownership interest in Pivotal LNG, Inc., for $184 million in aggregate, subject to certain purchase price adjustments. Pivotal LNG, Inc. includes a 50% noncontrolling interest in JAX LNG, LLC, an LNG supplier in Florida serving the growing marine and truck LNG markets. Following completion of the acquisition, Dominion Energy owns a 53% noncontrolling membership interest in Atlantic Coast Pipeline with Duke owning the remaining interest.

Atlantic Coast Pipeline continues to be reflected as an equity method investment as the power to direct the activities most significant to Atlantic Coast Pipeline is shared with Duke. As a result, Dominion Energy has the ability to exercise significant influence, but not control, over the investee.

Dominion Energy recorded ~~contributions~~equity earnings on its investments of ~~$16~~$80 million and ~~$95~~$4 million ~~during~~for the three months ended March 31, 2021 and 2020, respectively, in other income in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings (losses) of $(8) millionand ~~2019,~~$35 million for the three months ended March 31, 2021 and 2020, respectively, in discontinued operations related to its investment in Atlantic Coast Pipeline. Dominion Energy received distributions of $73 million and $5 million for the three months ended March 31, 2021 and 2020, respectively. At March 31, ~~2020~~2021 and December 31, ~~2019, Dominion Energy had $5 million and $7 million, respectively, of contributions payable to Atlantic Coast Pipeline included within other current liabilities in the Consolidated Balance Sheets.~~

~~In October 2017, Dominion Energy entered into a guarantee agreement to support a portion of Atlantic Coast Pipeline’s obligation under its credit facility. See Note 17 for more information.~~

The Atlantic Coast Pipeline Project is the subject of challenges in federal courts including, among others, challenges of the Atlantic Coast Pipeline Project’s biological opinion and incidental take statement, permits providing right of way crossings of certain federal lands, the Army Corps of Engineers 404 permit, the air permit for a compressor station at Buckingham, Virginia, and the FERC order approving the CPCN. Each of these challenges alleges non-compliance on the part of federal and state permitting authorities and adverse ecological consequences if the Atlantic Coast Pipeline Project is permitted to proceed. Since December 2018, notable developments in these challenges include a stay in December 2018 issued by the U.S. Court of Appeals for the Fourth Circuit and the same court’s July 2019 vacatur of the biological opinion and incidental take statement (which stay and subsequent vacatur halted most project construction activity), U.S. Court of Appeals for the Fourth Circuit decisions vacating the permits to cross certain federal forests and the air permit for a compressor station at Buckingham, Virginia, the U.S. Court of Appeals for the Fourth Circuit’s remand to Army Corps of Engineers of Atlantic Coast Pipeline’s Huntington District 404 verification and the U.S. Court of Appeals for the Fourth Circuit’s remand to the National Park Service of Atlantic Coast Pipeline’s Blue Ridge Parkway right-of-way. Atlantic Coast Pipeline continues to vigorously defend these challenges and is coordinating with the federal and state authorities to obtain new authorizations. Atlantic Coast Pipeline continues coordinating and working with U.S. Fish and Wildlife Service and other parties in preparation for a reissuance of the biological opinion and incidental take statement. In June 2019, the Solicitor General of the U.S. and Atlantic Coast Pipeline filed petitions requesting that the Supreme Court of the U.S. hear the case regarding the Appalachian Trail crossing. In February 2020, the ~~Supreme Court of~~net difference between the U.S. heard oral arguments in the case and is expected to issue a ruling no later than June 2020. If a favorable ruling is not received, Atlantic Coast Pipeline is also evaluating possible legislative and administrative remedies to this issue.

Given the legal challenges described above, the project is expected to enter full in-service in early 2022, with project costs estimated to be approximately $8 billion, excluding financing costs. Atlantic Coast Pipeline has reached agreements in principle with major customers to amend the contracted rate to share in certain delay cost increases, pending certain regulatory approvals. Project construction activities, schedules and costs are also subject to uncertainty due to permitting and/or work delays (including due to judicial or regulatory action), abnormal weather and other conditions that could result in further cost or schedule modifications, a suspension of AFUDC for Atlantic Coast Pipeline and/or impairment charges potentially material to Dominion Energy’s cash flows, financial position and/or results of operations.

~~Blue Racer~~

~~In the first quarter of 2019, Dominion Energy received $151 million of additional consideration, including applicable interest, in connection with the sale~~carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $224 million and $213 million, respectively. At March 31, 2021, these differences are comprised of $27 million of equity method goodwill that is not being amortized, a $226 million basis difference from Dominion Energy’s investments in Cove Point, which is being amortized over the useful lives of the underlying assets and a net $(29) million basis difference primarily attributable to an unfunded commitment made to Align RNG. At December 31, 2020, these differences are comprised of $27 million of equity method goodwill that is not being amortized, a $227 million basis difference from Dominion Energy’s investments in Cove Point, which is being amortized over the useful lives of the underlying assets and a net $(41) million basis difference primarily attributable to an unfunded commitment made to Align RNG.

Cove Point

In November 2020, in conjunction with the GT&S Transaction, Dominion Energy sold 100% of its general partner interest and 25% of the total limited partner interest in Cove Point. Dominion Energy retained a 50% noncontrolling limited partnership interest in ~~Blue Racer in December 2018,~~Cove

Point which is accounted for as an equity method investment, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Income before income taxes recorded by Cove Point for the three months ended March 31, 2021 and 2020, was $138 million and $133 million, respectively. For the periods prior to closing of the GT&S Transaction, earnings attributable to Dominion Energy are presented in discontinued operations and subsequent to the closing, earnings attributable to Dominion Energy are presented within other income in its Consolidated Statements of Income.

Dominion Energy ~~Gas~~recorded distributions from Cove Point of $73 million for the three months ended March 31, 2021. NaN contributions were made to Cove Point for the three months ended March 31, 2021.

Atlantic Coast Pipeline

A description of Dominion Energy’s investment in Atlantic Coast Pipeline, including events that led to the cancellation of the Atlantic Coast Pipeline Project in July 2020, is included in Note 9 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

At March 31, 2021 and December 31, 2020, Dominion Energy ~~Gas’ equity earnings totaled $15~~has recorded a liability of $97 million and ~~$13~~$1.1 billion, respectively, in its Consolidated Balance Sheets as a result of its share of equity losses exceeding its investment which reflects Dominion Energy’s obligations on behalf of Atlantic Coast Pipeline related to its credit facility, through February 2021, and AROs.

In February 2021, Atlantic Coast Pipeline repaid the outstanding borrowed amounts and terminated its revolving credit facility. As of December 31, 2020, Atlantic Coast Pipeline had borrowed $1.8 billion against the revolving credit facility. Concurrently, Dominion Energy’s related guarantee agreement to support its portion of Atlantic Coast Pipeline’s borrowings was also terminated. Dominion Energy’s Consolidated Balance Sheets included a liability of $6 million associated with this guarantee agreement at December 31, 2020.

Dominion Energy recorded contributions of $965 million and $16 million during the three months ended March 31, 2021 and 2020, respectively, to Atlantic Coast Pipeline.

Dominion Energy expects to incur additional losses from Atlantic Coast Pipeline as it completes wind-down activities. While Dominion Energy is unable to precisely estimate the amounts to be incurred by Atlantic Coast Pipeline, the portion of such amounts attributable to Dominion Energy is not expected to be material to Dominion Energy’s results of operations, financial position or statement of cash flows.

DETI provided services to Atlantic Coast Pipeline which totaled $20 million for the three months ended March 31, 2020, and 2019, respectively. Dominion Energy Gas received distributions of $15 million for both the three months ended March 31, 2020 and 2019. At both March 31, 2020 and December 31, 2019, the carrying amount of Dominion Energy Gas’ investment of $312 million, exceeded its share of underlying equity in net assets by $146 million. The difference reflects equity method goodwill and is not being amortized.

~~Atlantic Coast Pipeline~~

~~DETI provides services to Atlantic Coast Pipeline which totaled $20 million and $31 million for the three months ended March 31, 2020 and 2019, respectively,~~ included in ~~operating revenue~~discontinued operations in Dominion ~~Energy and Dominion Energy Gas’~~Energy’s Consolidated Statements of Income. ~~Amounts receivable related~~

Wrangler

A description of Dominion Energy’s investment in Wrangler is included in Note 9 to ~~these services were $8 million and $7 million at~~the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. At March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, $72 million and $63 million of assets and $15 million and $15 million of liabilities, respectively, ~~composed entirely of accrued unbilled revenue,~~associated with the remaining nonregulated retail energy marketing operations expected to be contributed to Wrangler by December 2021 were classified as held for sale and were included in ~~other receivables in~~current assets held for sale and current liabilities held for sale on Dominion ~~Energy and Dominion Energy Gas’~~Energy’s Consolidated Balance ~~Sheets.~~Sheets, respectively. The related disposal group is primarily comprised of customer receivables, goodwill, inventories and accounts payable.

Note 11. Property, Plant and Equipment

Acquisitions of Nonregulated Solar Projects

~~There~~Other than the items discussed below, there have been no updates to acquisitions of solar projects by ~~Dominion Energy or Virginia Power~~the Companies from those discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

The following table presents acquisitions by Virginia Power of non-jurisdictional solar projects. Virginia Power expects to claim federal investment tax credits on the projects.

Date Agreement

Entered

Date Agreement Closed

Project Location

Project Name

Project Cost

(millions)⁽¹⁾

Date of Commercial

Operations

Capacity

February 2021

Expected 2021

Virginia

Bookers Mill

200

Expected 2023

127

(1)	Includes acquisition cost.

The following table presents acquisitions by Dominion Energy of solar projects. Dominion Energy has claimed or expects to claim federal investment tax credits on the projects.

Date Agreement

Entered

Date Agreement Closed

Project Location

Project Name

Project Cost

(millions)⁽¹⁾

Date of Commercial

Operations

Capacity

May 2020

October 2020

South Carolina

Trask

March 2021

August 2020

Expected 2021

Ohio

Hardin II

300

Expected 2023

150

(1)	Includes acquisition cost.

~~Acquisition~~In addition to the facilities discussed above, Dominion Energy has also entered into various agreements to install solar facilities, primarily at schools in Virginia, with in-service dates throughout 2021. As of ~~Gathering and Processing Assets~~

In March ~~2020, Wexpro closed~~2021, Dominion Energy anticipates a total projected cost of approximately $59 million under these agreements with an associated aggregate generation capacity of 29 MW. Dominion Energy has claimed or expects to claim federal investment tax credits on an agreement with a natural gas gathering systems operator to purchase existing natural gas gathering systems including pipelines, compressors and dehydration equipment for total consideration of $38 million. These facilities gather natural gas in Colorado, Utah and Wyoming.

the projects.

Note 12. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

March 31, 2020

December 31, 2019

(millions)

Dominion Energy

Regulatory assets:

Deferred cost of fuel used in electric generation⁽¹⁾

$
21

$
48

Deferred project costs and DSM programs for gas utilities⁽²⁾

12

21

Unrecovered gas costs⁽³⁾

31

102

Deferred rate adjustment clause costs for Virginia electric utility⁽⁴⁾⁽⁵⁾

119

109

Deferred nuclear refueling outage costs⁽⁶⁾

52

68

NND Project costs⁽⁷⁾

138

138

PJM transmission rates⁽⁸⁾

42

121

Other

253

272

Regulatory assets-current

668

879

Pension and other postretirement benefit costs⁽⁹⁾

1,410

1,431

Deferred rate adjustment clause costs for Virginia electric utility^(4)(5)(10)

353

235

PJM transmission rates⁽⁸⁾

154

85

Deferred project costs for gas utilities⁽²⁾

560

521

Interest rate hedges⁽¹¹⁾

1,319

741

AROs and related funding⁽¹²⁾

324

311

Cost of reacquired debt⁽¹³⁾

257

262

NND Project costs⁽⁷⁾

2,468

2,503

Ash pond and landfill closure costs⁽¹⁴⁾

2,118

1,016

Other

601

582

Regulatory assets-noncurrent

9,564

7,687

Total regulatory assets

$
10,232

$
8,566

Regulatory liabilities:

Provision for future cost of removal and AROs⁽¹⁵⁾

$
142

$
142

Reserve for refunds and rate credits to electric utility customers⁽¹⁶⁾

138

143

Cost-of-service impact of 2017 Tax Reform Act⁽¹⁷⁾

48

4

Income taxes refundable through future rates⁽¹⁸⁾

138

77

Monetization of guarantee settlement⁽¹⁹⁾

67

67

Other

108

64

Regulatory liabilities-current

641

497

Income taxes refundable through future rates⁽¹⁸⁾

5,016

5,088

Provision for future cost of removal and AROs⁽¹⁵⁾

2,329

2,302

Nuclear decommissioning trust⁽²⁰⁾

1,110

1,471

Monetization of guarantee settlement⁽¹⁹⁾

953

970

Reserve for refunds and rate credits to electric utility customers⁽¹⁶⁾

622

656

Overrecovered other postretirement benefit costs⁽²¹⁾

197

189

Other

362

325

Regulatory liabilities-noncurrent

10,589

11,001

Total regulatory liabilities

$
11,230

$
11,498

	March 31, 2021		December 31, 2020
(millions)
Dominion Energy
Regulatory assets:
Deferred project costs and DSM programs for gas utilities⁽¹⁾	$	17	$	35
Unrecovered gas costs⁽²⁾		63		78
Deferred rider costs for Virginia electric utility⁽³⁾		123		98
Deferred nuclear refueling outage costs⁽⁴⁾		54		53
NND Project costs⁽⁵⁾		138		138
PJM transmission rates⁽⁶⁾		48		71
Other		207		226
Regulatory assets-current		650		699
Pension and other postretirement benefit costs⁽⁷⁾		1,304		1,363
Deferred rider costs for Virginia electric utility⁽³⁾		347		311
Deferred project costs for gas utilities⁽¹⁾		658		632
Interest rate hedges⁽⁸⁾		624		1,042
AROs and related funding⁽⁹⁾		340		331
Cost of reacquired debt⁽¹⁰⁾		242		245
NND Project costs⁽⁵⁾		2,330		2,364
Ash pond and landfill closure costs⁽¹¹⁾		2,317		2,301
Deferred cost of fuel used in electric generation⁽¹²⁾		82		—
Other		549		544
Regulatory assets-noncurrent		8,793		9,133
Total regulatory assets	$	9,443	$	9,832
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽¹²⁾	$	33	$	58
Provision for future cost of removal and AROs⁽¹³⁾		183		183
Reserve for refunds to electric utility customers⁽¹⁴⁾		127		128
Reserve for future credits to Virginia electric customers⁽¹⁵⁾		—		120
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		—		12
Income taxes refundable through future rates⁽¹⁷⁾		119		124
Monetization of guarantee settlement⁽¹⁸⁾		67		67
Other		112		117
Regulatory liabilities-current		641		809
Income taxes refundable through future rates⁽¹⁷⁾		4,365		4,376
Provision for future cost of removal and AROs⁽¹³⁾		2,180		2,150
Nuclear decommissioning trust⁽¹⁹⁾		1,805		1,719
Monetization of guarantee settlement⁽¹⁸⁾		886		903
Reserve for refunds to electric utility customers⁽¹⁴⁾		505		540
Overrecovered other postretirement benefit costs⁽²⁰⁾		84		111
Other		377		388
Regulatory liabilities-noncurrent		10,202		10,187
Total regulatory liabilities	$	10,843	$	10,996

(1)	~~Reflects deferred fuel expenses for the Virginia, North Carolina and South Carolina jurisdictions of Dominion Energy’s electric generation operations.~~

~~(2)~~

Primarily reflects amounts expected to be collected from or owed to gas customers in Dominion Energy’s service territories associated with current and prospective rider projects, including CEP, PIR and pipeline integrity management. See Note 13 for more information.

~~(3)~~(2)

Reflects unrecovered or overrecovered gas costs at regulated gas operations, which are recovered or refunded through filings with the applicable regulatory authority.

~~(4)~~(3)

Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider ~~projects, net of income taxes refundable from the 2017 Tax Reform Act for Virginia Power.~~projects. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 for more information.

~~(5)~~

As a result of actions from the Virginia Commission in the first quarter of 2019 regarding the ratemaking treatment of excess deferred taxes from the adoption of the 2017 Tax Reform Act for all existing rate adjustment clauses, Virginia Power recorded a $29 million ($22 million after-tax) charge in operating revenue in the Consolidated Statements of Income for amounts which are probable of being returned to customers.

~~(6)~~(4)

Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

~~(7)~~(5)

Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20-year period ending in 2039. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for more information.

~~(8)~~(6)

Reflects current portion of amounts to be recovered through retail rates in Virginia for payments Virginia Power ~~will~~expects to make to PJM ~~over a~~ ~~ten-year~~ ~~period ending 2028~~through 2026 under the terms of a FERC settlement agreement in May 2018 resolving a PJM cost allocation matter.

~~(9)~~(7)

Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy's rate-regulated subsidiaries.

~~(10)~~

During the first quarter of 2019, Virginia Power recorded a charge of $17 million ($13 million after-tax) in impairment of assets and other charges to write-off the balance of a regulatory asset for which it is no longer seeking recovery.

~~(11)~~(8)

Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 27 years as of March 31, ~~2020.~~2021.

~~(12)~~(9)

Represents deferred depreciation and accretion expense related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC’s electric generating facilities, including ~~V.C.~~ Summer, ~~nuclear power station,~~ and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately 105 ~~years.~~years.

~~(13)~~(10)

Costs of the reacquisition of debt are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 26 years as of March 31, ~~2020.~~2021.

(11)Primarily reflects legislation enacted in Virginia in 2019, which requires any CCR asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through beneficial reuse. These deferred costs are expected to be collected over a period between 15 and 18 years commencing December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs once expenditures have been made. See Note 13 for additional information.

(12)	Reflects deferred fuel expenses for the Virginia, North Carolina and South Carolina jurisdictions of Dominion Energy’s electric generation operations.

~~(14)~~

Primarily reflects legislation enacted in Virginia in March 2019 which requires any CCR unit located at certain Virginia Power stations to be closed by removing the CCRs to an approved landfill or through recycling for beneficial reuse. Subject to approval by the Virginia Commission, amounts are expected to be collected over a period between 15 and 18 years commencing no earlier than 2021.Virginia Power is entitled to collect carrying costs once expenditures have been made. See Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019 for additional information.~~As a result of the March 2020 planned early retirement of certain facilities, amounts recoverable through riders were reclassified from property, plant and equipment.~~

~~(15)~~(13)

Rates charged to customers by Dominion Energy’s regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

~~(16)~~(14)

Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period effective February 2019, in connection with the SCANA Merger Approval Order. See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for more information.

~~(17)~~(15)

Represents a reserve related to the use of a CCRO in accordance with the GTSA associated with the 2021 Triennial Review. See Note 13 for additional information.

(16)

Balance refundable to customers related to the decrease in revenue requirements for recovery of income taxes at the Companies’ regulated electric generation and electric and natural gas distribution operations. See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for more information.

~~(18)~~(17)

Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will primarily reverse at the weighted average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.

~~(19)~~(18)

Reflects amounts to be refunded to DESC electric service customers over a 20-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for more information.

~~(20)~~(19)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon, as applicable) for the future decommissioning of Dominion Energy’s utility nuclear generation stations, in excess of the related AROs.

~~(21)~~(20)

Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

March 31, 2020

December 31, 2019

(millions)

Virginia Power

Regulatory assets:

Deferred cost of fuel used in electric generation⁽¹⁾

$
21

$
48

Deferred rate adjustment clause costs⁽²⁾⁽³⁾

119

109

Deferred nuclear refueling outage costs⁽⁴⁾

52

68

PJM transmission rates⁽⁵⁾

42

121

Other

61

87

Regulatory assets-current

295

433

Deferred rate adjustment clause costs^(2)(3)(6)

353

235

PJM transmission rates⁽⁵⁾

154

85

Interest rate hedges⁽⁷⁾

969

404

Ash pond and landfill closure costs⁽⁸⁾

2,118

1,016

Other

130

123

Regulatory assets-noncurrent

3,724

1,863

Total regulatory assets

$
4,019

$
2,296

Regulatory liabilities:

Provision for future cost of removal⁽⁹⁾

$
103

$
103

Income taxes refundable through future rates⁽¹⁰⁾

54

54

Other

24

10

Regulatory liabilities-current⁽¹¹⁾

181

167

Income taxes refundable through future rates⁽¹⁰⁾

2,441

2,438

Nuclear decommissioning trust⁽¹²⁾

1,110

1,471

Provision for future cost of removal⁽⁹⁾

1,078

1,054

Deferred cost of fuel used in electric generation⁽¹⁾

75

30

Other

116

81

Regulatory liabilities-noncurrent

4,820

5,074

Total regulatory liabilities

$
5,001

$
5,241

	March 31, 2021		December 31, 2020
(millions)
Virginia Power
Regulatory assets:
Deferred rider costs⁽¹⁾	$	123	$	98
Deferred nuclear refueling outage costs⁽²⁾		54		53
PJM transmission rates⁽³⁾		48		71
Other		67		73
Regulatory assets-current		292		295
Deferred rider costs⁽¹⁾		347		311
Interest rate hedges⁽⁴⁾		327		733
Ash pond and landfill closure costs⁽⁵⁾		2,317		2,301
Deferred cost of fuel used in electric generation⁽⁶⁾		82		—
Other		162		164
Regulatory assets-noncurrent		3,235		3,509
Total regulatory assets	$	3,527	$	3,804
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽⁶⁾	$	33	$	58
Provision for future cost of removal⁽⁷⁾		152		152
Reserve for future credits to Virginia electric customers⁽⁸⁾		—		120
Income taxes refundable through future rates⁽⁹⁾		54		54
Other		33		41
Regulatory liabilities-current		272		425
Income taxes refundable through future rates⁽⁹⁾		2,406		2,404
Nuclear decommissioning trust⁽¹⁰⁾		1,805		1,719
Provision for future cost of removal⁽⁷⁾		996		980
Deferred cost of fuel used in electric generation⁽⁶⁾		2		54
Other		193		181
Regulatory liabilities-noncurrent		5,402		5,338
Total regulatory liabilities	$	5,674	$	5,763

(1)	~~Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s generation operations.~~

~~(2)~~

~~(3)~~

~~(4)~~(2)

~~(5)~~(3)

~~(6)~~

~~(7)~~(4)

~~(8)~~(5)

Primarily reflects legislation enacted in Virginia in ~~March~~ 2019, which requires any CCR ~~unit~~asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through ~~recycling for~~ beneficial reuse. ~~Subject to approval by the Virginia Commission, amounts~~These deferred costs are expected to be collected over a period between 15 and 18 years commencing ~~no earlier than 2021.~~December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs once expenditures have been made. See Note ~~23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019~~13 for additional information. ~~As a result of the March 2020 planned early retirement of certain facilities, amounts recoverable through riders were reclassified from property, plant and equipment.~~

(6) Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s generation operations.

~~(9)~~(7)

Rates charged to customers by Virginia Power's regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

~~(10)~~(8)

Represents a reserve related to the use of a CCRO in accordance with the GTSA associated with the 2021 Triennial Review. See Note 13 for additional information.

(9)

Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will reverse at the weighted average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.

~~(11)~~

~~Current regulatory liabilities are presented in other current liabilities in Virginia Power’s Consolidated Balance Sheets.~~

~~(12)~~(10)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon) for the future decommissioning of Virginia Power’s utility nuclear generation stations, in excess of the related AROs.

March 31, 2020

December 31, 2019

(millions)

Dominion Energy Gas

Regulatory assets:

Unrecovered gas costs⁽¹⁾

$
4

$
2

Other

6

6

Regulatory assets-current⁽²⁾

10

8

Interest rate hedges⁽³⁾

32

32

Other

8

8

Regulatory assets-noncurrent⁽⁴⁾

40

40

Total regulatory assets

$
50

$
48

Regulatory liabilities:

Provision for future cost of removal and AROs⁽⁵⁾

$
18

$
18

Overrecovered gas costs⁽¹⁾

6

8

Other

14

15

Regulatory liabilities-current⁽⁶⁾

38

41

Income taxes refundable through future rates⁽⁷⁾

556

560

Provision for future cost of removal and AROs⁽⁵⁾

93

95

Overrecovered other postretirement benefit costs⁽⁸⁾

142

133

Other

13

12

Regulatory liabilities-noncurrent⁽⁹⁾

804

800

Total regulatory liabilities

$
842

$
841

~~(1)~~

~~Reflects unrecovered or overrecovered gas costs at regulated gas operations, which are recovered or refunded through filings with FERC.~~

~~(2)~~

~~Current regulatory assets are presented in other current assets in Dominion Energy Gas’ Consolidated Balance Sheets.~~

~~(3)~~

~~(4)~~

~~Noncurrent regulatory assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.~~

~~(5)~~

Rates charged to customers by Dominion Energy Gas' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

~~(6)~~

~~Current regulatory liabilities are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.~~

~~(7)~~

~~(8)~~

~~Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.~~

~~(9)~~

~~Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.~~

At March 31, ~~2020,~~2021, Dominion Energy and Virginia Power ~~and Dominion Energy Gas’~~ regulatory assets include ~~$4.8 billion, $3.4~~$4.1 billion and ~~$48 million,~~$2.8 billion, respectively, on which they do not expect to earn a return during the applicable recovery period. With the exception of certain items discussed above, the majority of these expenditures are expected to be recovered within the next two years.

Note 13. Regulatory Matters

Regulatory Matters Involving Potential Loss Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in various regulatory matters. Certain regulatory matters may ultimately result in a loss; however, as such matters are in an initial procedural phase, involve uncertainty as to the outcome of pending reviews or orders, and/or involve significant factual issues that need to be resolved, it is not possible for the Companies to estimate a range of possible loss. For regulatory matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the regulatory process such that the Companies are able to estimate a range of possible loss. For regulatory matters that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any estimated range is based on currently available information, involves elements of judgment and significant uncertainties and may not represent the Companies’ maximum possible loss exposure. The circumstances of such regulatory matters will change from time to time and actual results may vary significantly from the current estimate. For current matters not specifically reported below, management does not anticipate that the outcome from such matters would have a material effect on the Companies’ financial position, liquidity or results of operations.

~~FERC – Gas~~

~~DETI~~

In July 2017, FERC audit staff communicated to DETI that it had substantially completed an audit of DETI’s compliance with the accounting and reporting requirements of FERC’s Uniform System of Accounts and provided a description of matters and preliminary recommendations. In November 2017, the FERC audit staff issued its audit report which could have the potential to result in adjustments which could be material to Dominion Energy and Dominion Energy Gas’ results of operations. In December 2017, DETI provided its response to the audit report. DETI reached resolution of certain matters with FERC in the fourth quarter of 2018. Pending final resolution of the audit process and a determination by FERC, management is unable to estimate the potential impact of the remaining finding and no amounts have been recognized.

~~2017 Tax Reform Act~~

Other than the items discussed below, which are pending or have been resolved during the period, there have been no changes to the 2017 Tax Reform Act matters discussed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019.

In March 2019, Questar Gas filed with the Utah and Wyoming Commissions as to the impact of excess deferred income taxes resulting from the 2017 Tax Reform Act. Questar Gas proposed to return the 2018 amortization of excess deferred income taxes to customers and to incorporate the remaining excess deferred income tax impact in its next general rate cases in each jurisdiction. In March 2020, the Utah Commission issued an order approving Questar Gas’ proposal to refund the January 2019 through February 2020 amortization of excess deferred income taxes over 12 months beginning in June 2020. In April 2020, at the request of the Wyoming Commission, this matter will be considered in conjunction with the base rate case that was filed in November 2019. This matter is pending.

In October 2018, the Ohio Commission issued an order requiring rate-regulated utilities to file an application reflecting the impact of the 2017 Tax Reform Act on current rates by January 1, 2019. In December 2018, East Ohio filed its application proposing an approach to establishing rates and charges by and through which to return tax reform benefits to its customers. In December 2019, the Ohio Commission issued an order approving customer credits of approximately $600 million that will be shared with customers primarily over the remaining book life of the property to which the excess deferred income taxes relate. In addition, East Ohio will reduce rates approximately $19 million per year to account for the 2017 Tax Reform Act’s impact on its equity return component of rates charged to customers. A tax savings credit, which passes through the reduction in the federal income tax rate under the 2017 Tax Reform Act to customers in accordance with the settlement agreement approved by the Ohio Commission, became effective with the first billing cycle in April 2020.

Other Regulatory Matters

Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Virginia Regulation

~~Virginia 2020 Legislation~~2021 Triennial Review

In April 2020, the Governor of Virginia signed into law the VCEA, which along with related legislation forms a comprehensive framework affecting Virginia Power’s operations. The VCEA replaces Virginia’s voluntary renewable energy portfolio standard forMarch 2021, Virginia Power ~~with a mandatory program setting annual renewable energy portfolio standard requirements based on~~filed its base rate case and accompanying schedules in support of the ~~percentage of total electric energy sold by~~2021 Triennial Review. In its filing, Virginia Power excluding existing nuclear generation and certain new carbon-free resources, reaching 100% by the end of 2045. The VCEA includes related requirements concerning deployment of wind, solar and energy storage resources, as well as provides for certain measures todid not request an increase ~~net-metering, including an allocation for low-income customers, incentivizes energy efficiency programs and directs Virginia to participate~~ in a carbon trading program. While the legislation affects several portions of Virginia Power’s operations, key provisions of the GTSA remain in effect, including the triennial review structure and timing, the use of the customer credit reinvestment offset and the $50 million cap on revenue reductions in the first triennial review proceeding. Key provisions of the VCEA and related legislation passed include the following:

~~FossilFuel Electric Generation~~: The legislation mandates Chesterfield Power Station Units 5 & 6 and Yorktown Power Station Unit 3 to be retired by the end of 2024, Altavista, Southampton and Hopewell to be retired by the end of 2028 and Virginia Power’s remaining fossil fuel units to be retired by the end of 2045, unless the retirement of such generating units will compromise grid reliability or security. The legislation also imposes a temporary moratorium on CPCNs for fossil fuel

generation, unless the resources are needed for grid reliability. In addition, the Virginia Commission shall determine the amortization period for recovery of any appropriate costs due to the early retirement of any electric generation facilities, which could result in the reversal of previous retirement costs deemed recovered during the review period ending 2020. As discussed in Note 2, Virginia Power had recorded charges for early retirement of certain coal- and -oil fired generating units in the first quarters of 2020 and 2019. Virginia Power is currently evaluating the prospective impacts to depreciation rates for fossil fuel units that either must or may be retired before the end of their useful lives as a result of the legislation, excluding gas-fired generating facilities that are currently expected to be required for reliability. ~~Any changes in depreciation rates are not expected to have a material impact to Virginia Power’s results of operations or cash flows based on the existing regulatory framework.~~

~~Renewable Generation:~~ The legislation provides a detailed renewable energy portfolio standard to achieve 100% zero-carbon generation by the end of 2045, excluding existing nuclear generation and certain new carbon-free resources. Components include requirements to petition the Virginia Commission for approval to construct or acquire new generating capacity to reach 16.1 GW of installed solar and onshore wind by the end of 2035, which includes specific requirements for utility-scale solar of 3.0 GW by the end of 2024, up to 15.0 GW by the end of 2035 and 1.1 GW of small-scale solar by the end of 2035. The legislation deems 2,700 MW of energy storage, including up to 800 MW for any one project which may include a pumped storage facility, by the end of 2035 to be in the public interest. The legislation also deems the construction or purchase of an offshore wind facility constructed off the Virginia coast with a capacity of up to 5,200 MW before 2035 to be in the public interest and provides certain presumptions facilitating cost recovery. The costs of such a facility constructed by the utility with a capacity between 2,500 and 3,000 MW will be presumed reasonably and prudently incurred if the Virginia Commission finds that the project meets competitive procurement requirements, the projected cost of the facility does not exceed a specified industry benchmark and the utility commences construction by the end of 2023 or has a plan for the facility to be in service by the end of 2027. The Virginia Commission must approve all projects to meet those requirements.

~~Energy Efficiency:~~The legislation includes an energy efficiency target of 5% energy savings, as measured from a 2019 baseline, through verifiable energy efficiency programs by the end of 2025 with future targets to be set by the Virginia Commission. Virginia Power has the opportunity to offset the lost revenues with margins on program spend if certain targets are achieved and can also seek recovery of the lost revenues associated with energy efficiency programs if such reductions are found to have caused Virginia Power to earn more than 50 basis points below a fair rate of return on its rates for generation and distribution services.

~~Carbon trading program~~: The legislation directs Virginia Power to participate in a market-based carbon trading program consistent with RGGI through 2050. All costs of the carbon trading program are recoverable through an environmental rider.

~~Low-income customers~~: The legislation includes the establishment of a percentage of income payment program to be administered by the Virginia Department of Housing and Community Development and the Virginia Department of Social Services. To fund the program, Virginia Power will remit amounts collected from customers under a universal service fee established and set by the Virginia Commission. As such, this program will not affect Virginia Power’s results of operations, financial position or cash flows.

Virginia Power expects to incur significant costs, including capital expenditures, to comply with the legislative requirements discussed above. The legislation allows for cost recovery under the existing or modified regulatory framework through rate adjustment clauses,base rates for generation and distribution services orand proposed that base rates remain at their existing level. Virginia Power’s ~~fuel factor,~~earnings test analysis, as ~~approved by~~filed, demonstrates it earned a combined ROE of 10.85% on its generation and distribution services for the test period, before accounting for forgiven customer balances. Pursuant to Virginia ~~Commission. Costs allocated to~~legislation, forgiven customer balances are excluded from the ~~North Carolina jurisdiction will be recovered, subject to approval by~~cost of service in determining test period revenues as part of the ~~North Carolina Commission, in accordance with~~2021 Triennial Review. To the ~~existing regulatory framework.~~

~~Grid Transformation and Security Act of 2018~~

~~In July 2018, Virginia Power filed a petition with~~extent that the Virginia Commission determines total earnings for ~~approval~~the test period to be above Virginia Power’s authorized earnings band, the forgiven balance amounts are offset against the available revenues in the determination of ~~the first three years~~any customer bill credits, or utilization of ~~its ten-year plan for~~a CCRO. Test period earnings may be further reduced by Virginia Commission approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects that Virginia Power elects to include as ~~authorized by~~a CCRO under the GTSA. ~~During the first three years~~In its filing, Virginia Power has elected to utilize $26 million of the ~~plan,~~Coastal Virginia ~~Power proposed~~Offshore Wind Pilot project investment as a CCRO to ~~focus on~~offset available revenues. The Virginia Commission will determine whether Virginia Power’s earnings for the ~~following seven foundational components~~test period, considered as a whole, were within 70 basis points above or below the authorized ROE of the overall grid transformation plan: (i) smart meters; (ii) customer information platform; (iii) reliability and resilience; (iv) telecommunications infrastructure; (v) cyber and physical security; (vi) predictive analytics; and (vii) emerging technology. The total estimated capital investment during 2019-2021 was $816 million and the proposed operations and maintenance expenses were $102 million. In January 2019,9.2%. Should the Virginia Commission ~~issued its final order approving capital spending~~determine that there are additional available revenues for ~~the first three years of the plan totaling $68 million on cyber and physical security and related telecommunications infrastructure (Phase IA).~~ earnings sharing, then Virginia Power has contingently elected to offset those revenues with additional Virginia Commission approved qualifying CCRO investments. The Virginia Commission ~~declined~~will also authorize an ROE for Virginia Power that will be applied to ~~approve~~Virginia Power’s riders prospectively and that will also be utilized to measure base rate earnings as of January 1, 2021. Virginia Power is requesting authorization of an ROE of 10.8% based on Virginia Power’s current cost of equity. Pursuant to the ~~remainder~~Regulation Act, Virginia Power’s authorized ROE shall not be set lower than the average of either (i) the ~~proposed components~~returns reported for the ~~first~~ three previous years by not less than a majority of ~~the plan, the proposed spending for which was not found reasonable and prudent based on the record~~comparable utilities in the ~~proceeding.~~Southeastern U.S., with certain limitations as described in the Regulation Act, or (ii) the authorized returns that are set by the applicable regulatory commissions for the same select peer group. This matter is pending.

In September 2019, Virginia Power filed a revised plan which includes six components: (i) smart meters; (ii) customer information platform; (iii) grid improvement projects; (iv) telecommunications infrastructure; (v) cyber security;the third and ~~(vi) a smart charging electric vehicle infrastructure pilot program (Phase IB). For Phase IB, the total proposed capital investment during 2019 – 2021 was $503~~ ~~million and the proposed operations and maintenance investment was $78 million. In March 2020, the Virginia Commission issued an order approving $212 million~~fourth quarters of costs related to a new customer information platform, targeted grid hardening and corridor improvements, an electric vehicle Smart Charging Infrastructure Pilot Program, cyber security, stakeholder engagement and customer education and denied the costs associated with AMI, self-healing grid and certain other grid hardening projects alleging that the Company did not prove the reasonableness and prudency of these costs. In April 2020, Virginia Power ~~filed~~recorded a ~~petition for reconsideration~~net charge of $130 million related to the use of a CCRO in accordance with the GTSA. In the first quarter of 2021, Virginia Power recorded a benefit of $130 million ($97 million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income to adjust its reserve related to the use of a CCRO in accordance with the GTSA. These amounts reflect the impact related to jurisdictional customers as a result of the 2021 Triennial Review as well as the impact on certain non-jurisdictional customers which follow Virginia ~~Commission’s order~~Power’s jurisdictional customer rate methodology.

Utility Disconnection Moratorium Legislation

In November 2020, legislation was enacted in Virginia relating to the moratorium on utility disconnections during the COVID-19 pandemic and ~~requested clarification of certain matters, including the Smart Charging Infrastructure Pilot Program. Additionally,~~resulted in Virginia Power ~~requested clarification~~forgiving Virginia jurisdictional retail electric customer balances that were more than 30 days past due as of ~~certain matters relating to an AMI time-of-use rate and~~September 30, 2020. As a result, Virginia Power recorded a charge of $127 million in the ~~smart charging electric vehicle infrastructure pilot program. Subsequently, in April 2020,~~fourth quarter of 2020. In connection with the Virginia ~~Commission denied~~2021 budget process, in ~~full~~ the first quarter of 2021 Virginia Power recorded a charge of $76 million ($56

million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income for Virginia jurisdictional retail electric customer balances that were more than 30 days past due as of December 31, 2020 that Virginia Power is required to forgive. These forgiven customer balances are factored into Virginia Power’s petition for reconsideration; however, it stated that its March 2020 order contained all necessary approvals for the smart charging electric vehicle infrastructure pilot program. Virginia Power intends to file a revised plan2021 Triennial Review as ~~early as late 2020 that will address the elements needed for a comprehensive plan, as outlined by the Virginia Commission in its order.~~discussed above.

Solar Facility Projects

In May 2020 and July ~~2019,~~2020, Virginia Power entered into and closed on separate agreements to acquire Grassfield Solar, Norge Solar and Sycamore Solar. The projects are expected to cost approximately $170 million in aggregate once constructed, including the initial acquisition cost. The facilities are expected to generate 82 MW combined and be placed into service in 2021 and 2022. In October 2020, Virginia Power filed an application with the Virginia Commission for ~~a CPCN~~CPCNs to construct ~~Sadler Solar, which is estimated~~and operate these projects as part of its efforts to ~~cost approximately $146 million, excluding financing costs. Sadler Solar is expected to commence commercial operations, subject to regulatory approvals associated with~~meet the ~~project, in~~renewable generation development requirements under the fourth quarter of 2020. Virginia Power also applied for approval of Rider US-4 associated with this project with a proposed $9 million total revenue requirement for the rate year beginning June 1, 2020.VCEA. In January 2020, the Virginia Commission issued a final order granting the CPCN to construct Sadler Solar, subject to a 20- year performance guarantee of the facility at a 22% solar capacity factor when normalized for force majeure events. In March 2020, the Virginia Commission approved a $7 million total annual revenue requirement.

~~Virginia Fuel Expenses~~

In February 2020, Virginia Power filed its annual fuel factor with the Virginia Commission to recover an estimated $1.2 billion in Virginia jurisdictional projected fuel expenses for the rate year beginning July 1, 2020 and a projected over-recovery of approximately $81 million for the prior year balance as of June 30, 2020. Virginia Power requested that the new fuel factor rate be implemented on an interim basis two months early, beginning on May 1, 2020. In March 2020,April 2021, the Virginia Commission approved the ~~interim rates.~~application.

Riders

Below is a discussion of significant riders associated with various Virginia Power’s proposed fuel rate represents a fuel revenue decrease of approximately $393 million when applied to projected kilowatt-hour sales for the rate year beginning May 1, 2020. This matter is pending.Power projects:

•

The Virginia Commission previously approved Rider U in conjunction with cost recovery to move certain electric distribution facilities underground as authorized by Virginia legislation. In June 2020, Virginia Power proposed an $80 million total revenue requirement consisting of $44 million for previously approved phases and $36 million for phase five costs for Rider U for the rate year beginning April 1, 2021. This total revenue requirement represents a $28 million increase over the previous year. In February 2021, the Virginia Commission approved the filing.

•

Pursuant to Virginia legislation, Virginia Power can recover the costs related to the closure of CCR units. In February 2021, Virginia Power filed for approval of Rider CCR with a proposed $216 million revenue requirement for the rate year beginning December 1, 2021. This matter is pending.

•

In October 2020, Virginia Power applied for approval of Rider CE associated with Grassfield Solar, Norge Solar and Sycamore Solar described above. In April 2021, the Virginia Commission approved a $10 million revenue requirement for the rate year beginning June 1, 2021.

~~Rate Adjustment Clauses~~

~~Developments for~~Additional significant riders associated with various Virginia Power projects are as follows:

,Rider Name

Application Date

Approval Date

Rate Year

Beginning

Total Revenue

Requirement

(millions)

Increase (Decrease)

Over Previous Year

(millions)

Rider Name

Application Date

Approval Date

Rate Year

Beginning

Total Revenue

Requirement

(millions)

Increase (Decrease)

Over Previous Year

(millions)

Rider B

June 2020

February 2021

April 2021

)

Rider GV

June 2020

February 2021

April 2021

153

Rider R

June 2020

February 2021

April 2021

Rider S

June 2020

February 2021

April 2021

194

)

Rider W

June 2020

February 2021

April 2021

120

Rider US-3

July 2019

March 2020

June 2020

July 2020

March 2021

June 2021

Rider US-4

July 2020

March 2021

June 2021

Electric Transmission Projects

Description and Location

of Project

Application

Date

Approval

Date

Type of

Line

Miles of

Lines

Cost Estimate

(millions)

Elmont-Ladysmith rebuild and related projects in the Counties of Hanover and Caroline, Virginia

April 2021

Pending

500 kV

North Carolina Regulation

~~North Carolina~~PSNC Base Rate Case

In ~~March 2019, Virginia Power~~April 2021, PSNC filed its ~~base~~general rate case application, direct testimony, exhibits, and schedules with the North Carolina Commission. ~~Virginia Power~~PSNC proposed a non-fuel, base rate increase of ~~$27~~$53 million to be effective November 1, ~~2019 on an interim basis subject~~2021. After considering the benefits of the 2017 Tax Reform Act, the net revenue increase to ~~refund, with any permanent rates ordered by the North Carolina Commission effective January 1, 2020.~~customers would be approximately $42 million. The base rate increase was proposed to recover the significant ~~investments~~investment in ~~generation,~~infrastructure to serve a growing customer base, improve safety and reliability of the transmission and distribution ~~infrastructure~~system and enhance energy efficiency and sustainability. The proposed rates would provide for ~~the benefit~~an ROE of ~~North Carolina customers. Virginia Power presented an earned return of 7.52% based upon a fully-adjusted test period,~~10.25% compared to ~~its~~the currently authorized 9.90% return, and proposed a 10.75% ROE. In September 2019, Virginia Power revised its filing to reduce the non-fuel base rate increase to $24 million. In January 2020, the North Carolina Commission approved a 9.75% ROE and disallowed certain costs associated with coal ash remediation at Chesterfield power station. In February 2020, the North Carolina Commission issued its final order relating to base rates. In April 2020, Virginia Power filed a petition for reconsideration of ~~the North Carolina Commission’s order as it relates to certain issues.~~9.7%. This matter is pending.

~~Pipeline Integrity and Safety Program~~

The North Carolina Commission has authorized PSNC to use a tracker mechanism to recover the incurred capital investment and associated costs of complying with federal standards for pipeline integrity and safety requirements that are not in current base rates. In February 2020, the North Carolina Commission approved PSNC’s request to increase the integrity management annual revenue requirement to $28 million, an increase of $7 million over its previous filing, effective March 2020.

South Carolina Regulation

~~South Carolina Base Rate Case~~

~~Pursuant to the SCANA Merger Approval Order,~~ DESC will not file an application for a general rate case with the South Carolina Commission with a requested effective date for new rates earlier than January 2021. In April 2020, the South Carolina Commission issued an order vacating the portion of the SCANA Merger Approval Order requiring that new retail electric rates be implemented by January 1, 2021.

DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January ~~2020,~~2021, DESC filed an application with the South Carolina Commission seeking approval to recover ~~$40~~$48 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. In April ~~2020,~~2021, the South Carolina Commission approved the filing.

Cost of Fuel

DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In February ~~2020,~~2021, DESC filed a proposal with the South Carolina Commission to ~~decrease~~increase the total fuel cost component of retail electric rates. DESC’s proposed ~~decrease~~adjustment would ~~reduce~~increase annual base fuel component recoveries by ~~$44~~$36 million and is ~~projected~~designed to ~~return to customers the existing over-collected balance while recovering~~recover DESC’s current base fuel costs, net of the existing over-collected balance, over the 12-month period beginning with the first billing cycle of May ~~2020.~~2021. In addition, DESC proposed a decrease to its variable environmental component and an increase to its ~~variable environmental and~~ distributed energy resource ~~components.~~component. In April ~~2020,~~2021, the South Carolina Commission approved the filing.

Ohio Regulation

PIR Program

In 2008, East Ohio began PIR, aimed at replacing approximately 25% of its pipeline system. In ~~April 2020, the~~February 2021, East Ohio ~~Commission approved East Ohio’s~~filed an application requesting approval to adjust the PIR cost recovery rates for 2020 costs. The filing reflects gross plant investment for 2020 of $178 million, cumulative gross plant investment of $2.0 billion and an annual revenue requirement of $243 million.

CEP Program

In 2011, East Ohio began CEP which enables East Ohio to defer depreciation expense, property tax expense and carrying costs associated with CEP investments. In April 2021, East Ohio filed an application requesting approval to adjust the CEP cost recovery rates for 2019 and 2020 costs. The filing reflects gross plant investment for 2019 of ~~$209~~$137 million, gross plant investment for 2020 of $99 million, cumulative gross plant investment of ~~$1.8 billion~~$957 million and ~~an annual~~a revenue requirement of ~~$218~~$119 million. This matter is pending.

Utah Regulation

~~FERC –~~Purchased Gas

~~Cove Point~~

In ~~January 2020, pursuant to~~April 2021, Questar Gas submitted a filing with the ~~terms of~~Utah Commission for a ~~previous settlement, Cove Point filed a general rate case for its FERC-jurisdictional services,~~$43 million gas cost increase with ~~proposed~~ rates ~~to be~~ effective March 1, 2020. Cove Point proposed an annual cost-of-service of approximately $182 million. In February 2020, FERC approved suspending the changes in rates for five months following the proposed effective date, until August 1, 2020, subject to refund.

~~In February 2020, Cove Point submitted its annual electric power cost adjustment to FERC requesting approval to recover $28 million. FERC approved the adjustment in March 2020.~~

June 2021. This matter is pending.

Note 14. Leases

~~There~~Other than the items discussed below, there have been no significant changes regarding the Companies’ leases as described in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Dominion Energy’s Consolidated Statements of Income include $34 million and $32 million for the three months ended March 31, ~~2020~~2021 and ~~2019 include $32 million and $29 million,~~2020, respectively, of rental revenue included in operating ~~revenue~~revenue. Dominion Energy’s Consolidated Statements of Income include $27 million and $23 million for the three months ended March 31, 2021 and 2020, respectively, of depreciation expense ~~for both periods,~~ included in depreciation, depletion and amortization, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

Corporate Office Leasing Arrangement

In December 2019, Dominion Energy signed an agreement with a lessor, as amended in May 2020, to construct and lease a new corporate office property in Richmond, Virginia. The lessor provided equity and had obtained financing commitments from debt investors, totaling $465 million, to fund the estimated project costs. In March 2021, Dominion Energy notified the lessor of its intention to terminate the leasing arrangement effective April 2021. As a result, Dominion Energy recorded a charge of $71 million ($53 million after-tax) in the first quarter of 2021, included in impairments of assets and other charges in its Consolidated Statements of Income, primarily for amounts required to be repaid to the lessor.

Note 15. Variable Interest Entities

There have been no significant changes regarding the entities the Companies consider VIEs as described in Note 16 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Dominion Energy

At March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, Dominion Energy’s securities due within one year included ~~$32~~$34 million and ~~$31~~$32 million, respectively, and at ~~both~~ March 31, ~~2020~~2021 and December 31, ~~2019~~2020, Dominion Energy’s long-term debt included ~~$267~~$238 million and $239 million, respectively, of debt issued by SBL Holdco, a VIE, net of issuance costs, that is nonrecourse to Dominion Energy and is secured by SBL Holdco’s interest in certain merchant solar facilities.

Virginia Power

Virginia Power had a long-term power and capacity contract with 1 non-utility generator with an aggregate summer generation capacity of approximately 218 MW under a contract which terminated in May 2019. Virginia Power paid $13 million for electric capacity and $1 million for electric energy to the non-utility generator in the three months ended March 31, 2019.

~~Dominion Energy Gas~~

Dominion Energy Gas purchased shared services from DECGS and DEQPS of $4 million and $7 million for the three months ended March 31, 2020 and $4 million and $8 million for the three months ended March 31, 2019. Dominion Energy Gas’ Consolidated Balance Sheets included amounts due to both DECGS and DEQPS of $22 million and $15 million at March 31, 2020 and December 31, 2019, respectively.

~~Virginia Power and Dominion Energy Gas~~

~~Virginia Power and Dominion Energy Gas~~ purchased shared services from DES, an affiliated VIE, of ~~$93~~$96 million and ~~$31~~$93 million for the three months ended March 31, ~~2020, respectively,~~2021 and ~~$89 million and $28 million for the three months ended March 31, 2019,~~2020, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of ~~$180~~$35 million and ~~$102~~$175 million at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, recorded in payables to affiliates. ~~Dominion Energy Gas’ Consolidated Balance Sheets include amounts due to DES of $39 million and $27 million at March 31, 2020 and December 31, 2019, respectively, recorded in payables to affiliates.~~

Note 16. Significant Financing Transactions

Credit Facilities and Short-term Debt

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties.

Dominion Energy

At March 31, ~~2020,~~2021, Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility, were as follows:

	Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available		Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available
(millions)
Joint revolving credit facility⁽¹⁾	$	6,000	$	2,071	$	86	$	3,843
Joint revolving credit facility⁽¹⁾									$	6,000	$	2,477	$	99	$	3,424

(1)	This credit facility matures in March 2023 and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $2.0 billion of letters of ~~credit.~~credit.

~~In addition to the credit facility mentioned above, Dominion Energy also has a credit facility with a maturity date in~~ ~~June 2020~~ ~~which allows Dominion Energy to issue up to approximately $21 million in letters of credit. At March 31, 2020, Dominion Energy had $21 million in letters of credit outstanding under this agreement.~~

In March 2020, Dominion Energy entered into a $900 million 364-Day Revolving Credit Agreement. The agreement bears interest at a variable rate. At March 31, 2020, 0 amounts were outstanding. In April 2020, Dominion Energy borrowed $225 million under the agreement. The proceeds were used to provide for general working capital and other general corporate purposes. The maximum allowed total debt to total capital ratio under the agreement is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.

~~DESC’s~~DESC and Questar Gas’ short-term financings are supported through access as co-borrowers to the joint revolving credit facility discussed above with ~~Dominion Energy, Virginia Power and Dominion Energy Gas.~~the Companies. At March ~~31, 2020,~~30, 2021, the sub-limits for DESC and Questar Gas were $500 million and $250 million, respectively.

In January ~~2020,~~2021, DESC and GENCO applied to FERC for a two-year short-term borrowing authorization. In March ~~2020,~~2021, FERC granted DESC authority through March ~~2021~~2023 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $2.2 billion outstanding with maturity dates of one year or less. In addition, in March ~~2020,~~2021, FERC granted GENCO authority through March ~~2021~~2023 to issue short-term indebtedness not to exceed $200 million outstanding with maturity dates of one year or less.

In addition to the credit facility mentioned above, Dominion Energy also has a credit facility which allows Dominion Energy to issue up to approximately $30 million in letters of credit and matures in June 2022. At both March 31, 2021 and December 31, 2020, Dominion Energy had $30 million in letters of credit outstanding under this agreement.

In addition to the credit facilities mentioned above, SBL Holdco has $30 million of credit facilities which had an original stated maturity date of December 2017 with automatic one-year renewals through the maturity of the SBL Holdco term loan agreement in 2023. Dominion Solar Projects III, Inc. has $25 million of credit facilities which had an original stated maturity date of May 2018 with automatic one-year renewals through the maturity of the Dominion Solar Projects III, Inc. term loan agreement in 2024. At both March 31, 2021 and December 31, 2020, 0 amounts were outstanding under either of these facilities.

In March 2020, Dominion Energy ~~borrowed $500~~entered into a $900 million ~~under a~~ 364-Day ~~Term Loan~~Revolving Credit Agreement that ~~bears~~bore interest at a variable rate. At December 31, 2020, $225 million was outstanding under the agreement. In March 2021, the agreement reached maturity and Dominion Energy repaid the outstanding borrowed amount in full.

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability ~~The proceeds were used~~Investment^SM as disclosed in Note 17 to ~~provide~~the Consolidated Financial

Statements in the Companies’ Annual Report on Form 10-K for ~~general working capital~~the year ended December 31, 2020. At March 31, 2021 and ~~other general corporate purposes. These borrowings are presented within securities due within one year in~~December 31, 2020, Dominion Energy’s Consolidated Balance Sheets ~~at March 31,2020. The maximum allowed total debt~~include $338 million and $268 million, respectively, with respect to ~~total capital ratio under the agreement is consistent with~~ such ~~allowed ratio under Dominion Energy’s joint revolving credit facility.~~

~~In April 2020, Dominion Energy borrowed $625 million under a 364-Day Term Loan Credit Agreement that bears interest at a variable rate.~~ notes presented within short-term debt. The proceeds ~~were~~are used ~~to provide~~ for general ~~working capital~~corporate purposes and ~~other general corporate purposes. The maximum allowed total debt~~ to ~~total capital ratio under the agreement is consistent with such allowed ratio under Dominion Energy’s joint revolving credit facility.~~repay debt.

Virginia Power

Virginia Power’s short-term financing is supported through its access as co-borrower to the joint revolving credit facility. This credit facility can be used for working capital, as support for the combined commercial paper programs of the borrowers under the credit facility and for other general corporate purposes.

At March 31, ~~2020,~~2021, Virginia Power’s share of commercial paper and letters of credit outstanding under ~~its~~the joint revolving credit facility with Dominion Energy, ~~Dominion Energy Gas,~~ Questar Gas and DESC was as follows:

	Facility Limit⁽¹⁾		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Limit⁽¹⁾		Outstanding Commercial Paper		Outstanding Letters of Credit
(millions)
Joint revolving credit facility⁽¹⁾	$	6,000	$	135	$	9
Joint revolving credit facility⁽¹⁾							$	6,000	$	420	$	12

(1)

The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy, ~~Dominion Energy Gas,~~ Questar Gas and DESC. The sub-limit for Virginia Power is set within the facility limit but can be changed at the option of the borrowers under the credit facility multiple times per year. At March 31, ~~2020,~~2021, the sub-limit for Virginia Power was $1.5 billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in March 2023 and can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $2.0 billion (or the sub-limit, whichever is less) of letters of credit.

~~Dominion Energy Gas~~

Dominion Energy Gas’ short-term financing is supported through its access as co-borrower to the joint revolving credit facility. This credit facility can be used for working capital, as support for the combined commercial paper programs of the borrowers under the credit facility and for other general corporate purposes.

At March 31, 2020, Dominion Energy Gas' share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, Virginia Power, Questar Gas and DESC was as follows:

Facility
Limit⁽¹⁾

Outstanding
Commercial
Paper

Outstanding
Letters of
Credit

(millions)

Joint revolving credit facility⁽¹⁾

$
1,500

$
30

$
—

~~(1)~~

A maximum of $1.5 billion of the facility is available to Dominion Energy Gas, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power, Questar Gas and DESC. The sub-limit for Dominion Energy Gas is set within the facility limit but can be changed at the option of the borrowers under the credit facility multiple times per year. At March 31, 2020, the sub-limit for Dominion Energy Gas was $750 million. If Dominion Energy Gas has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in March 2023 and can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $1.5 billion (or the sub-limit, whichever is less) of letters of credit.

Long-term Debt

Unless otherwise noted, the proceeds of long-term debt issuances were used for general corporate purposes and/or to repay short-term debt.

In ~~February~~March 2021, PSNC issued, through private placement, $150 million of 3.10% senior notes that mature in 2051.

In April 2021, Dominion Energy issued $600 million of 1.45% senior notes and $500 million of 3.30% senior notes that mature in 2026 and 2041, respectively.

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At both March 31, 2021 and December 31, 2020, Dominion Energy ~~redeemed the remaining principal~~had issued and outstanding 2.4 million shares of ~~$111~~preferred stock, 1.6 million and ~~$286~~0.8 million of ~~its June 2006 hybrids~~which were designated as the Series A Preferred Stock and ~~its September 2006 hybrids, respectively, both which would have otherwise matured~~the Series B Preferred Stock, respectively. Dominion Energy’s Series A Preferred Stock and Series B Preferred Stock are described in ~~2066. All purchases were conducted in compliance with the applicable RCC, each of which was terminated in February 2020. Expenses related~~Note 19 to the ~~early redemption of the hybrids were $10 million reflected within interest and related charges~~Consolidated Financial Statements in the ~~Consolidated Statements~~Companies’ Annual Report on Form 10-K for the year ended December 31, 2020.

Dominion Energy recorded dividends of ~~Income for~~$7 million ($4.375 per share) and $9 million ($11.625 per share) during both the three months ended March 31, ~~2020.~~

In March 2020, SCANA redeemed its floating rate senior notes at the remaining principal balance of $66 million plus accrued interest. The notes would have otherwise matured in June 2034. Expenses related to the early redemption of the senior notes were $7 million reflected within interest and related charges in the Consolidated Statements of Income for the three months ended March 31, 2020.

In March 2020, SCANA redeemed the remaining principal outstanding of $183 million of its 4.75% medium-term notes and $155 million of its 4.125% medium-term notes plus accrued interest and make-whole premiums. The notes would have otherwise matured in May 2021 and February 2022, respectively. Total expenses related to the early redemption of the medium-term notes were $14 million reflected within interest and related charges in the Consolidated Statements of Income for the three months ended March 31, 2020.

~~In March~~ 2020 ~~Dominion Energy issued $400 million of 3.30% senior notes and $350 million of 3.60% senior notes that mature in 2025 and 2027, respectively.~~

~~In March 2020, PSNC issued, through private placement, $200 million of 4.05% senior notes that mature in 2030.~~

~~In April 2020, Dominion Energy issued $1.5 billion of 3.375% senior notes that mature in 2030.~~

~~In April 2020, Dominion Energy purchased and canceled $7 million of its 2.579% junior subordinated notes that mature in July 2020.~~

~~Noncontrolling Interest in Dominion Energy Midstream~~

In January 2019, Dominion Energy and Dominion Energy Midstream closed on an agreement and plan of merger pursuant to which Dominion Energy acquired each outstanding common unit representing limited partner interests in Dominion Energy Midstream not already owned by Dominion Energy through the issuance of 22.5 million shares of common stock valued at $1.6 billion. Under the terms of the agreement and plan of merger, each publicly held outstanding common unit representing limited partner interests in

Dominion Energy Midstream was converted into the right to receive 0.2492 shares of Dominion Energy common stock. Immediately prior to the closing, each Series A Preferred Unit representing limited partner interests in Dominion Energy Midstream was converted into common units representing limited partner interests in Dominion Energy Midstream in accordance with the terms of Dominion Energy Midstream’s partnership agreement. The merger was accounted for by Dominion Energy following the guidance for a change in a parent company’s ownership interest in a consolidated subsidiary. Because Dominion Energy controls Dominion Energy Midstream both before and after the merger, the changes in Dominion Energy’s ownership interest in Dominion Energy Midstream were accounted for as an equity transaction and 0 gain or loss was recognized. In connection with the merger, Dominion Energy recognized $40 million of income taxes in equity primarily attributable to establishing additional regulatory liabilities related to excess deferred income taxes and changes in state income taxes.

~~2019 Corporate Units~~

In June 2019, Dominion Energy issued $1.6 billion of 2019 Equity Units, initially in the form of 2019 Series A Corporate Units. The Corporate Units are listed on the NYSE under the symbol DCUE. The net proceeds were used for general corporate purposes and to repay short-term debt, including commercial paper.

Each 2019 Series A Corporate Unit consists of a stock purchase contract and a 1/10, or 10%, undivided beneficial ownership interest in one share of Series A Preferred Stock. Beginning in June 2022, the Series A Preferred Stock is convertible at the option of the holder into Dominion Energy common stock under a formula based upon the average closing price of Dominion Energy common stock prior to the conversion date. The Series A Preferred Stock is redeemable in cash by Dominion Energy beginning September 2022 at the liquidation preference. Settlement of any conversion is payable in cash, common stock or a combination thereof, at Dominion Energy’s election.

The stock purchase contracts obligate the holders to purchase shares of Dominion Energy common stock in June 2022. The purchase price to be paid under the stock purchase contracts is $100 per Corporate Unit and the number of shares to be purchased will be determined under a formula based upon the average closing price of Dominion Energy common stock near the settlement date. The Series A Preferred Stock was pledged upon issuance as collateral to secure the purchase of common stock under the related stock purchase contracts.

~~Dominion Energy pays cumulative dividends~~ on the Series A Preferred Stock and quarterly contract adjustment payments on the stock purchase contracts, at the rates described below. Dominion Energy may elect to pay such dividends and/or payments in cash, shares of Dominion Energy common stock or a combination of cash and shares of Dominion Energy common stock. Dominion Energy may defer the contract adjustment payments for one or more consecutive periods but generally not beyond the purchase contract settlement date. If payments are deferred, Dominion Energy may not make any distributions related to its capital stock, including dividends, redemptions, repurchases or liquidation payments. Also, during the deferral period, Dominion Energy may not make any payments on or redeem, repay or repurchase any debt securities that are equal in right of payment with, or subordinated to, the contract adjustment payments or make any payment on any guarantee of a security of a subsidiary if the guarantee ranks equal or junior to the contract adjustment payments. Unless all accumulated and unpaid dividends on the Series AB Preferred Stock, have been declared and paid, Dominion Energy may not make any distributions on any of its capital stock ranking equal or junior to the Series A Preferred Stock as to dividends or upon liquidation, as applicable, including dividends, redemptions, repurchases or liquidation payments. In such circumstances, Dominion Energy also may not make any contract adjustment payments or other similar types of payments, subject to certain exceptions.

~~Dominion Energy has recorded the present value of the~~respectively. The stock purchase contract ~~payments as a~~ liability ~~offset to common stock.~~associated with Dominion Energy’s 2019 Equity Units was $108 million and $129 million at March 31, 2021 and December 31, 2020, respectively. Stock purchase contract payments ~~are recorded against this liability. Accretion~~ of $21 million and $20 million were made during the ~~stock purchase contract liability is recorded as imputed interest expense.~~three months ended March 31, 2021 and 2020, respectively. In calculating diluted EPS, Dominion Energy applies the treasury stock method to the stock purchase contracts and the if-converted method to the Series A Preferred Stock. ~~Under~~

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, $48 million and $78 million from the ~~terms~~issuance of ~~the stock purchase contracts, assuming no anti-dilution or other adjustments, the maximum number of~~less than 1 million and 1 million shares of common stock ~~Dominion Energy will issue in June 2022 is 21.8 million.~~

~~Selected information about Dominion Energy’s 2019 Equity Units is presented below:~~

Issuance Date

Units Issued

Total Net
Proceeds⁽¹⁾

Total
Preferred
Stock⁽²⁾

Cumulative
Dividend
Rate

Stock
Purchase
Contract
Annual Rate

Stock
Purchase
Contract
Liability⁽³⁾

Stock Purchase
Contract
Settlement Date
(millions except interest rates)

6/14/2019

16

$
1,582

$
1,610

1.75
%

5.5
%

$
250

6/1/2022

~~(1)~~

~~Issuance costs of $28 million were recorded as a reduction to preferred stock ($14 million) and common stock ($14 million) in the Consolidated Balance Sheets.~~

~~(2)~~

~~Dominion Energy recorded dividends of $7 million ($4.375 per share) for the three months ended March 31, 2020.~~

~~(3)~~

~~Payments of $20 million were made during the first quarter of 2020. The stock purchase contract liability was $192 million and $212 million at March 31, 2020 and December 31, 2019, respectively.~~

~~Series B Preferred Stock~~

In December 2019, Dominion Energy issued 800,000 shares of Series B Preferred Stock for $791 million, net of $9 million of issuance costs. The preferred stock has a liquidation preference of $1,000 per share and currently pays a 4.65% dividend per share on the liquidation preference. Dividends are paid cumulatively on a semi-annual basis, commencing June 15, 2020. Dominion Energy recorded dividends of $9 million ($11.625 per share) for the three months ended March 31, 2020. The dividend rate for the Series B Preferred Stock will be reset every five years beginning on December 15, 2024 to equal the then-current five-year U.S. Treasury rate plus a spread of 2.993%. Unless all accumulated2021 and ~~unpaid dividends on the Series B Preferred Stock have been declared and paid,~~2020, respectively, through various programs including Dominion Energy ~~may not make any distributions on any of its capital stock ranking equal or junior to the Series B Preferred Stock~~ Direct® and employee savings plans as ~~to dividends or upon liquidation, including through dividends, redemptions, repurchases or otherwise.~~

~~Dominion Energy may, at its option, redeem the Series B Preferred Stock~~described in whole or in part on December 15, 2024 or on any subsequent fifth anniversary of such date at a price equal to $1,000 per share plus any accumulated and unpaid dividends. Dominion Energy may also, at its option, redeem the Series B Preferred Stock in whole but not in part at a price equal to $1,020 per share plus any accumulated and unpaid dividends at any time within a certain period of time following any change in the criteria ratings agencies use to assign equity credit to securities such as the Series B Preferred Stock that has certain adverse effects on the equity credit actually received by the Series B Preferred Stock.

Holders of the Series B Preferred Stock have no voting rights except in the limited circumstances provided for in the terms of the Series B Preferred Stock or as otherwise required by applicable law. The Series B Preferred Stock is not subject to any sinking fund or other obligation of ours to redeem, repurchase or retire the Series B Preferred Stock. The preferred stock contains no conversion rights.

~~Issuance of Common Stock~~

~~See~~ Note 320 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for ~~information on~~ the issuance of Dominion Energy common stock in January 2019 in connection with the SCANA Combination. Also in January 2019, Dominion Energy acquired all outstanding partnership interests of Dominion Energy Midstream not owned by Dominion Energy through the issuance of common stock as noted above.

year ended December 31, 2020.

At-the-Market Program

In ~~June 2017,~~August 2020, Dominion Energy ~~filed an SEC shelf registration statement for the sale of debt and equity securities including the ability~~entered into sales agency agreements to ~~sell common stock through~~effect sales under an at-the-market program as discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019. In~~

2020. As of March 2020, Dominion Energy entered into four separate sales agency agreements to effect sales under a new at-the-market program and pursuant to which it may offer from time to time up to $500 million aggregate amount of its common stock.31, 2021, Dominion Energy has 0tnot issued any shares or entered into any forward sale agreements under this ~~new~~ program.

~~Dividend Restrictions~~Repurchase of Common Stock

~~At March 31,~~In November 2020, ~~DESC’s retained earnings are below~~ the ~~balance established by~~Board of Directors authorized the ~~Federal Power Act~~ repurchase of up to $1.0 billion of Dominion Energy’s common stock as a reserve on earnings attributable to hydroelectric generation plants. As a result, DESC is prohibited from the payment of dividends without regulatory approval until the balance of its retained earnings increases. There have been no significant changes to dividend restrictions affecting the Companies describeddiscussed in Note 2120 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. Dominion Energy did 0t repurchase any shares of common stock during the first quarter of 2021.

Note 17. Commitments and Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in legal proceedings before various courts and are periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions, or involve significant factual issues that need to be resolved, such that it is not possible for the Companies to estimate a range of possible loss. For such matters that the Companies cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that the Companies are able to estimate a range of possible loss. For legal proceedings and governmental examinations that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any accrued liability is

recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Companies’ maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the Companies’ financial position, liquidity or results of operations.

Environmental Matters

The Companies are subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations.

Air

~~CAA~~

The CAA, as amended, is a comprehensive program utilizing a broad range of regulatory tools to protect and preserve the nation's air quality. At a minimum, states are required to establish regulatory programs to ~~address all~~meet applicable requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of the Companies’ facilities are subject to the CAA’s permitting and other requirements.

~~MATS~~

~~In February 2019, the EPA published a proposed rule to reverse its previous finding that it is appropriate and necessary to regulate hazardous air pollutant emissions from~~ ~~coal- and oil-fired electric generating units~~. In April 2020, the EPA finalized its reconsideration and issued a final rule. The final rule is consistent with the EPA’s February 2019 proposal, and determines that it is not appropriate and necessary to regulate mercury and hazardous air pollutant emissions from coal- and oil-fired electric generating units. The final rule also states that the MATS rule remains in place and the emissions standards for affected coal- and oil-fired electric generating units will not change. The effective date of the action will be 60 days after publication in the Federal Register. ~~Dominion Energy and Virginia Power are complying with the applicable requirements of the rule and do not expect any impacts to their operations.~~

Ozone Standards

The EPA published final non-attainment designations for the October 2015 ozone standard in June 2018. States have until August 2021 to develop plans to address the new standard. Until the states have developed implementation plans for the standard, the Companies are unable to predict whether or to what extent the new rules will ultimately require additional controls. The expenditures required to implement additional controls could have a material impact on the Companies’ results of operations and cash flows.

~~Oil and Gas NSPS~~

In August 2012, the EPA issued an NSPS impacting new and modified facilities in the natural gas production and gathering sectors and made revisions to the NSPS for natural gas processing and transmission facilities. These rules establish equipment performance specifications and emissions standards for control of VOC emissions for natural gas production wells, tanks, pneumatic controllers, and compressors in the upstream sector. In June 2016, the EPA issued another NSPS regulation, for the oil and natural gas sector, to regulate methane and VOC emissions from new and modified facilities in transmission and storage, gathering and boosting, production and processing facilities. All projects which commenced construction after September 2015 are required to comply with this regulation. In October 2018, the EPA published a proposed rule reconsidering and amending portions of the 2016 rule, including but not limited to, the fugitive emissions requirements at well sites and compressor stations. The amended portions of the 2016 rule were effective immediately upon publication. Until the proposed rule regarding reconsideration is final, Dominion Energy and Dominion Energy Gas are implementing the 2016 regulation. Dominion Energy and Dominion Energy Gas are still evaluating whether potential impacts on results of operations, financial condition and/or cash flows related to this matter will be material.

ACE Rule

In July 2019, the EPA published the final rule informally referred to as the ACE Rule, as a replacement for the Clean Power Plan. The ACE Rule ~~applies to~~regulated GHG emissions from existing coal-fired power ~~plants. The final rule includes unit-specific performance standards based on~~plants pursuant to Section 111(d) of the ~~degree of emission reduction levels achievable from unit efficiency improvements to be determined by the permitting agency. The ACE Rule requires~~CAA and required states to develop plans by July 2022 establishing unit-specific performance standards for existing coal-fired power plants. In January 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the ACE Rule and remanded it to ~~implement these performance standards. These state plans must be approved by~~the EPA. This decision would take effect upon issuance of the court’s mandate. In March 2021, the court issued a partial mandate vacating and remanding all parts of the ACE Rule except for the portion of the ACE Rule that repealed the Clean Power Plan. While the EPA ~~by January 2024. While~~has stated its intention to replace the ~~impacts of~~ACE Rule, it is unknown at this ~~rule could be material to Dominion Energy~~time if or how the EPA will issue a replacement for the ACE Rule and ~~Virginia Power’s results of~~how that replacement will affect the Companies’ operations, financial condition and/or cash ~~flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.~~flows.

Carbon Regulations

In August 2016, the EPA issued a draft rule proposing to reaffirm that a source’s obligation to obtain a PSD or Title V permit for GHGs is triggered only if such permitting requirements are first triggered by non-GHG, or conventional, pollutants that are regulated by the New Source Review program, and ~~to set~~exceed a significant emissions rate atof 75,000 tons per year of CO₂ equivalent ~~emissions under which a source would not be required to apply BACT for its GHG~~ emissions. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.

In December 2018, the EPA proposed revised Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources. The proposed rule would amend the previous determination that the best system of emission reduction for newly constructed coal-fired steam generating units is no longer partial carbon capture and storage. Instead, the proposed revised best system of emission reduction for this source category is the most efficient demonstrated steam cycle (e.g., supercritical steam conditions for large units and subcritical steam conditions for small units) in combination with ~~the~~ best operating practices.

~~State Regulations~~

In ~~May 2019, VDEQ issued~~January 2021, the EPA published a final rule ~~establishing~~affirming that fossil fuel-fired electric generating units meet the requirement that a ~~state carbon regulation program with~~source category “significantly contribute” to endangering air pollution for the purposes of regulating GHG emissions from new, modified and reconstructed stationary sources. The January 2021 rule also established a ~~28.0 million ton initial state-wide carbon cap in 2020.~~threshold for the “significant contribution” threshold that would have meant that no other source category, such as oil and gas facilities, petroleum refineries, and boilers, would meet that requirement at this time. In April 2021, the U.S. Court of Appeals for the D.C. Circuit granted an unopposed motion by the EPA to vacate and remand the January 2021 rule. The cap is reduced by approximately 3 percent per year through 2030, resulting in an ultimate cap of 19.6 million tons. The final rule includes a provision for VDEQ to delay implementation of the rule and possible adjustmentsproposed revision to the ~~baseline cap pending authorization from~~performance standards for coal-fired steam generating units remains pending. Until the ~~General Assembly and Governor~~EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of ~~Virginia. In April 2020, Virginia legislation was enacted authorizing VDEQ to implement the final rule. The Virginia legislation also authorizes Virginia to participate in RGGI~~ operations, financial condition and/or ~~another market-based carbon trading program. The existing regulatory framework in Virginia provides rate recovery mechanisms that are expected to substantially mitigate any such impact.~~

This legislation is considered related legislation to the VCEA as discussed in Note 13. The VCEA institutes a mandatory renewable portfolio standard, enhances renewable generation and energy storage development, requires the retirement of certain generation facilities, establishes energy efficiency targets, expands net metering and directs Virginia’s participation in a market-based carbon trading program through 2050.cash flows.

Water

The CWA, as amended, is a comprehensive program requiring a broad range of regulatory tools including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms. The Companies must comply with applicable aspects of the CWA programs at their operating facilities.

Regulation 316(b)

In October 2014, the final regulations under Section 316(b) of the CWA that govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold became effective. The rule establishes a national standard for impingement based on seven compliance options, but forgoes the creation of a single technology standard for entrainment. Instead, the EPA has delegated entrainment technology decisions to state regulators. State regulators are to make case-by-case entrainment technology determinations after an examination of 5 mandatory facility-specific factors, including a social cost-benefit test, and 6 optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two MGD, with a heightened entrainment analysis for those facilities over 125 MGD. Dominion Energy and Virginia Power currently have 1315 and 79 facilities, respectively, that ~~may be~~are subject to the final regulations. Dominion Energy is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to ~~six~~eight hydroelectric facilities, including ~~one~~three Virginia Power ~~facility. Dominion Energy anticipates~~facilities. The Companies anticipate that itthey may have to install impingement control technologies at certain of these stations that have once-through cooling systems. ~~Dominion Energy and Virginia Power~~The Companies are currently evaluating the need or potential for entrainment controls under the final rule as these decisions will be made on a case-by-case basis after a thorough review of detailed biological, technology, cost and benefit studies. DESC is conducting studies and implementing plans as required by the rule to determine appropriate intake structure modifications at certain facilities to ensure compliance with this rule. While the impacts of this rule could be material to ~~Dominion Energy and Virginia Power’s~~the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Effluent Limitations Guidelines

In September 2015, the EPA released a final rule to revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category. The final rule ~~establishes~~established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required to convert from wet to dry or closed cycle coal ash management, improve existing wastewater treatment systems and/or install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted 2 separate petitions for reconsideration of the Effluent Limitations Guidelines final rule and stayed future compliance dates in the rule. Also in April 2017, the U.S. Court of Appeals for the Fifth Circuit granted the EPA’s request for a stay of the pending consolidated litigation challenging the rule while the EPA addresses the petitions for reconsideration. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the Effluent Limitations Guidelines final rule from November 2018 to November 2020; however, the latest date for compliance for these regulations ~~remains~~was December ~~2023.~~ 2023. In October 2020, the EPA released the final rule that extends the latest dates for compliance. Individual facilities’

compliance dates will vary based on circumstances and the determination by state regulators and may range from 2021 to 2028. While the impacts of this rule could be material to ~~Dominion Energy and Virginia Power’s~~the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Waste Management and Remediation

The operations of the Companies are subject to a variety of state and federal laws and regulations governing the management and disposal of solid and hazardous waste, and release of hazardous substances associated with current and/or historical operations. The CERCLA, as amended, and similar state laws, may impose joint, several and strict liability for cleanup on potentially responsible parties who owned, operated or arranged for disposal at facilities affected by a release of hazardous substances. In addition, many states have created programs to incentivize voluntary remediation of sites where historical releases of hazardous substances are identified and property owners or responsible parties decide to initiate cleanups.

From time to time, ~~Dominion Energy, Virginia Power or Dominion Energy Gas~~the Companies may be identified as a potentially responsible party in connection with the alleged release of hazardous substances or wastes at a site. Under applicable federal and state laws, the Companies could be responsible for costs associated with the investigation or remediation of impacted sites, or subject to contribution claims by other responsible parties for their costs incurred at such sites. The Companies also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under the Companies’ insurance policies, rate recovery mechanisms, or both. Except as described below, the Companies do not believe these matters will have a material effect on results of operations, financial condition and/or cash flows.

Dominion Energy has determined that it is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. At 1112 sites associated with Dominion Energy, including certain sites acquired in the SCANA Combination, remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy has proposed or expects to propose remediation plans associated with 3 sites, including 1 at Virginia Power, and expects to conduct remediation activities primarily ~~in 2020.~~by the end of 2021. At ~~both~~ March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, Dominion Energy had $40 million and $42 million, respectively, and Virginia Power ~~have $34~~had $25 million and ~~$16~~$26 million, respectively, of reserves recorded. In addition, for 1 site associated with Dominion Energy, an updated work plan submitted to SCDHEC in September 2018, would increase costs by approximately $8$11 million if approved by federal and state agencies. In September 2020, this plan was submitted to the Army Corps of Engineers. Dominion Energy is associated with 1312 additional sites, including 2 associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, ~~Dominion Energy and Virginia Power~~the Companies are unable to make an estimate of the potential financial statement impacts.

Other Legal Matters

The Companies are defendants in a number of lawsuits and claims involving unrelated incidents of property damage and personal injury. Due to the uncertainty surrounding these matters, the Companies are unable to make an estimate of the potential financial statement impacts; however, they could have a material impact on results of operations, financial condition and/or cash flows.

SCANA Legal Proceedings

The following describes certain legal proceedings involving Dominion Energy, SCANA or DESC relating to events occurring before closing of the SCANA Combination. No reference to, or disclosure of, any proceeding, item or matter described below shall be construed as an admission or indication that such proceeding, item or matter is material. For certain of these matters, and unless otherwise noted therein, Dominion Energy is unable to estimate a reasonable range of possible loss and the related financial statement impacts, but for any such matter there could be a material impact to its results of operations, financial condition and/or cash flows. For the matters for which Dominion Energy is able to reasonably estimate a probable loss, Dominion Energy’s Consolidated Balance Sheets at March 31, ~~2020~~2021 and December 31, ~~2019~~2020 include reserves of ~~$560~~$268 million and ~~$696 million, respectively, and insurance receivables of $6 million and $111~~$208 million, respectively, included within other current liabilities, and insurance receivables at both dates of $8 million, included within other receivables. During the three months ended March 31, 2021, Dominion Energy’s Consolidated Statements of Income include charges of $60 million ($45 million after-tax) included within impairment of assets and other charges. During the three months ended March 31, 2020, Dominion Energy’s Consolidated Statements of Income include charges of $25 million ($25 million after-tax) included within other income (expense). During the three months ended March 31, 2019, Dominion Energy’s Consolidated Statements of Income include charges of $178 million ($133 million after-tax) included within impairment of assets and other charges.

Ratepayer Class Actions

In May 2018, a consolidated complaint against DESC, SCANA and the State of South Carolina was filed in the State Court of Common Pleas in Hampton County, South Carolina (the DESC Ratepayer Case). ~~In September 2018, the court certified this case as a class action.~~ The plaintiffs ~~allege,~~alleged, among other things, that DESC was negligent and unjustly enriched, breached alleged fiduciary and contractual duties and committed fraud and

misrepresentation in failing to properly manage the NND Project, and that DESC committed unfair trade practices and violated state anti-trust laws. The plaintiffs sought a declaratory judgment that DESC may not charge its customers for any past or continuing costs of the NND Project, sought to have SCANA and DESC’s assets frozen and all monies recovered from Toshiba Corporation and other sources be placed in a constructive trust for the benefit of ratepayers and sought specific performance of the alleged implied contract to construct the NND Project.

In December 2018, the State Court of Common Pleas in Hampton County entered an order granting preliminary approval of a class action settlement. The court entered an order granting final approval of the settlement ~~and a stay of pre-trial proceedings~~ in ~~the DESC Ratepayer Case.~~June 2019, which became effective in July 2019. The settlement agreement, contingent upon the closing of the SCANA Combination, provided that SCANA and DESC ~~would~~ establish an escrow account and proceeds from the escrow account would be distributed to the ~~class members,~~plaintiffs, after payment of certain taxes, attorneys' fees and other expenses and administrative costs. The escrow account would include (1) up to $2.0 billion, net of a credit of up to $2.0 billion in future electric bill relief, which would inure to the benefit of the escrow account in favor of class members over a period of time established by the South Carolina Commission in its order related to matters before the South Carolina Commission related to the NND Project, (2) a cash payment of $115 million and (3) the transfer of certain DESC-owned real estate or sales proceeds from the sale of such properties, which counsel for the ~~DESC Ratepayer Class estimate~~plaintiffs estimated to have an aggregate value between $60 million and $85 million. At the closing of the SCANA Combination, SCANA and DESC funded the cash payment portion of the escrow account. ~~The court held a fairness hearing on the settlement in May 2019. In June 2019, the court entered an order granting final approval of the settlement, which order became effective July 2019.~~ In July 2019, DESC transferred $117 million representing the cash payment, plus accrued interest, to the plaintiffs. ~~In addition,~~Through August 2020, property, plant and equipment with a net recorded value of ~~$54~~$27 million ~~is in the process of being~~had been transferred to the plaintiffs in coordination with the court-appointed real estate trustee to satisfy the settlement agreement. In September 2020, the court entered an order approving a final resolution of the transfer of real estate or sales proceeds with a cash contribution of $38.5 million by DESC and the conveyance of property, plant and equipment with a net recorded value of $3 million, which was completed by DESC in October 2020.

In September 2017, a purported class action was filed by Santee Cooper ratepayers against Santee Cooper, DESC, Palmetto Electric Cooperative, Inc. and Central Electric Power Cooperative, Inc. in the State Court of Common Pleas in Hampton County, South Carolina (the Santee Cooper Ratepayer Case). The allegations ~~are~~were substantially similar to those in the DESC Ratepayer Case. The plaintiffs seek a declaratory judgment that the defendants may not charge the purported class for reimbursement for past or future costs of the NND Project. In March 2018, the plaintiffs filed an amended complaint including as additional named defendants, including certain then current and former directors of Santee Cooper and SCANA. In June 2018, Santee Cooper filed a Notice of Petition for Original Jurisdiction with the Supreme Court of South Carolina. In December 2018, Santee Cooper filed its answer to the plaintiffs' fourth amended complaint and filed cross claims against DESC, which was denied. In October 2019, Santee Cooper voluntarily consented to stay its cross claims against DESC pending the outcome of the trial of the underlying case. In November 2019, DESC removed the case to the U.S. District Court for the District of South Carolina. In December 2019, the plaintiffs and Santee Cooper filed a motion to remand the case to state court. In January 2020, the case was remanded to state court. In March 2020, the parties executed a settlement agreement relating to this matter as well as the Luquire Case and the Glibowski Case described below. The settlement agreement ~~provides~~provided that Dominion Energy and Santee Cooper ~~will~~ establish a fund for the benefit of class members in the amount of $520 million, of which Dominion Energy’s portion iswas $320 million of shares of Dominion Energy common stock. ~~Also in March~~In July 2020, the court ~~granted preliminary~~issued a final approval ~~for~~of the settlement agreement. ~~This case is pending.~~In September 2020, Dominion Energy issued $322 million of shares of Dominion Energy common stock to satisfy its obligation under the settlement agreement, including interest charges.

In July 2019, a similar purported class action was filed by certain Santee Cooper ratepayers against DESC, SCANA, Dominion Energy and former directors and officers of SCANA in the State Court of Common Pleas in Orangeburg, South Carolina (the Luquire Case). In August 2019, DESC, SCANA and Dominion Energy were voluntarily dismissed from the case. The claims ~~are~~were similar to the Santee Cooper Ratepayer Case. In March 2020, the parties executed a settlement agreement as described above relating to this matter as well as the Santee Cooper Ratepayer Case and the Glibowski Case. This case ~~is pending.~~was dismissed as part of the Santee Cooper Ratepayer Case settlement described above.

RICO Class Action

In January 2018, a purported class action was filed, and subsequently amended, against SCANA, DESC and certain former executive officers in the U.S. District Court for the District of South Carolina (the Glibowski Case). The plaintiff ~~alleges,~~alleged, among other things, that SCANA, DESC and the individual defendants participated in an unlawful racketeering enterprise in violation of RICO and conspired to violate RICO by fraudulently inflating utility bills to generate unlawful proceeds. The DESC Ratepayer Class Action settlement described previously contemplates dismissal of claims by DESC ratepayers in this case against DESC, SCANA and their officers. In August 2019, the individual defendants filed motions to dismiss. In March 2020, the parties executed a settlement agreement as described above relating to this matter as well as the Santee Cooper Ratepayer Case and the Luquire Case. This case ~~is pending.~~was dismissed as part of the Santee Cooper Ratepayer Case settlement described above.

SCANA Shareholder Litigation

In September 2017, a purported class action was filed against SCANA and certain former executive officers and directors in the U.S. District Court for the District of South Carolina. Subsequent additional purported class actions were separately filed against all or nearly all of these defendants (collectively the SCANA Securities Class Action). In January 2018, the U.S. District Court for the District of South Carolina consolidated these suits, and the plaintiffs filed a consolidated amended complaint in March 2018. The plaintiffs ~~allege,~~alleged, among other things, that the defendants violated §10(b) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, and that the individually named defendants are liable under §20(a) of the same act. In June 2018, the defendants filed motions to dismiss. In March 2019, the U.S. District Court for the District of South Carolina granted in part and denied in part the defendants’ motions to dismiss. In December 2019, the parties executed a settlement agreement pursuant to which SCANA ~~will~~would pay $192.5 million, up to $32.5 million of which ~~can~~could be satisfied through the issuance of shares of Dominion Energy common stock, subject to ~~approval by the U.S. District Court for the District of South Carolina.~~court approval. In February 2020, the U.S. District Court for the District of South Carolina granted preliminary approval of the settlement agreement, pending a fairness ~~hearing.~~hearing, and granted final approval in July 2020. In March 2020, SCANA funded an escrow account with $160 million in cash and paid the balance of $32.5 million in cash in August 2020 to satisfy the ~~settlement will be paid upon final approval of the settlement by the court.~~

settlement.

In September 2017, a shareholder derivative action was filed against certain former executive officers and directors of SCANA in the State Court of Common Pleas in Richland County, South Carolina. In September 2018, this action was consolidated with another

action in the Business Court Pilot Program in Richland County. The plaintiffs allege, among other things, that the defendants breached their fiduciary duties to shareholders by their gross mismanagement of the NND Project, and that the defendants were unjustly enriched by bonuses they were paid in connection with the project. In January 2019, the defendants filed a motion to dismiss the consolidated action. In February 2019, one action was voluntarily dismissed. In March 2020, the court denied the defendants’ motion to dismiss. In April 2020, the defendants filed a notice of appeal with the South Carolina Court of Appeals and a petition with the Supreme Court of South Carolina seeking appellate review of the denial of the motion to dismiss. In June 2020, the plaintiffs filed a motion to dismiss the appeal with the South Carolina Court of Appeals, which was granted in July 2020. In August 2020, the Supreme Court of South Carolina denied the defendants’ petition seeking appellate review. Also in August 2020, the defendants filed a petition for rehearing with the South Carolina Court of Appeals relating to the July 2020 ruling by the court, which was denied in October 2020. In November 2020, SCANA filed a petition of certiorari with the Supreme Court of South Carolina seeking appellate review of the denial of SCANA’s motion to dismiss. This case is pending.

In January 2018, a purported class action was filed against SCANA, Dominion Energy and certain former executive officers and directors of SCANA in the State Court of Common Pleas in Lexington County, South Carolina (the City of Warren Lawsuit). The plaintiff alleges, among other things, that defendants violated their fiduciary duties to shareholders by executing a merger agreement that would unfairly deprive plaintiffs of the true value of their SCANA stock, and that Dominion Energy aided and abetted these actions. Among other remedies, the plaintiff seeks to enjoin and/or rescind the merger. In February 2018, Dominion Energy removed the case to the U.S. District Court for the District of South Carolina, and filed a Motion to Dismiss in March 2018. In June 2018, the case was remanded back to the State Court of Common Pleas in Lexington County. Dominion Energy appealed the decision to remand to the U.S. Court of Appeals for the Fourth Circuit, where the appeal was consolidated with a similar appeal in the Metzler Lawsuit discussed below. In June 2019, the U.S. Court of Appeals for the Fourth Circuit reversed the order remanding the case to state court.

~~In February 2018,~~ a purported class action was filed against Dominion Energy and certain former directors of SCANA and DESC in the State Court of Common Pleas in Richland County, South Carolina (the Metzler Lawsuit). The allegations made and the relief sought by the plaintiffs are substantially similar to that described for the City of Warren Lawsuit. In February 2018, Dominion Energy removed the case to the U.S. District Court for the District of South Carolina, and filed a Motion to Dismiss in March 2018. In August 2018, the case was remanded back to the State Court of Common Pleas in Richland County. Dominion Energy appealed the decision to remand to the U.S. Court of Appeals for the Fourth Circuit, where the appeal was consolidated with the City of Warren Lawsuit. In June 2019, the U.S. Court of Appeals for the Fourth Circuit reversed the order remanding the case to state court.

In September 2019, the U.S. District Court for the District of South Carolina granted the plaintiffs’ motion to consolidate the City of Warren Lawsuit and the Metzler Lawsuit. In October 2019, the plaintiffs filed an amended complaint against certain former directors and executive officers of SCANA and DESC, which stated substantially similar allegations to those in the City of Warren Lawsuit and the Metzler Lawsuit as well as an inseparable fraud claim. In November 2019, the defendants filed a motion to dismiss. In April 2020, the U.S. District Court for the District of South Carolina denied the motion to ~~dismiss~~.dismiss. In May 2020, SCANA filed a motion to intervene, which was denied in August 2020. In September 2020, SCANA filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. This case is pending.

In May 2019, a case was filed against certain former executive officers and directors of SCANA in the State Court of Common Pleas in Richland County, South Carolina. The ~~plaintiffs allege,~~plaintiff alleges, among other things, that the defendants breached their fiduciary duties to shareholders by their gross mismanagement of the NND Project, were unjustly enriched by the bonuses they were paid in connection with the project and breached their fiduciary duties to secure and obtain the best price for the sale of SCANA. Also in May 2019, the case was removed to the U.S. District Court of South Carolina by the non-South Carolina defendants. In June 2019, the plaintiffs filed a motion to remand the case to state court. In January 2020, the case was remanded to state court. In February 2020, the defendants filed a motion to dismiss. This case is pending.

Employment Class Actions and Indemnification

In August 2017, a case was filed in the U.S. District Court for the District of South Carolina on behalf of persons who were formerly employed at the NND Project. In July 2018, the court certified this case as a class action. In February 2019, certain of these plaintiffs filed an additional case, which case has been dismissed and the plaintiffs have joined the case filed August 2017. The plaintiffs allege, among other things, that SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. violated the Worker Adjustment and Retraining Notification Act in connection with the decision to stop construction at the NND Project. The plaintiffs allege that the defendants failed to provide adequate advance written notice of their terminations of employment and are seeking damages, which could be as much as $100 million for 100% of the NND Project. In January 2021, the U.S. District Court for the District of South Carolina granted summary judgment in favor of SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. In February 2021, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. This case is pending.

In September 2018, a case was filed in the State Court of Common Pleas in Fairfield County, South Carolina by Fluor Enterprises, Inc. and Fluor Daniel Maintenance Services, Inc. against DESC and Santee Cooper. The plaintiffs make claims for indemnification, breach of contract and promissory estoppel arising from, among other things, the defendants' alleged failure and refusal to defend and indemnify the Fluor defendants in the aforementioned case. ~~These cases are~~This case is pending.

FILOT Litigation and Related Matters

In November 2017, Fairfield County filed a complaint and a motion for temporary injunction against DESC in the State Court of Common Pleas in Fairfield County, South Carolina, making allegations of breach of contract, fraud, negligent misrepresentation, breach of fiduciary duty, breach of implied duty of good faith and fair dealing and unfair trade practices related to DESC’s termination of the FILOT agreement between DESC and Fairfield County related to the NND Project. The plaintiff sought a temporary and permanent injunction to prevent DESC from terminating the FILOT agreement. The plaintiff withdrew the motion for temporary injunction in December 2017. This case is pending.

Governmental Proceedings and Investigations

In June 2018, DESC received a notice of proposed assessment of approximately $410 million, excluding interest, from the SCDOR following its audit of DESC’s sales and use tax returns for the periods September 1, 2008 through December 31, 2017. The proposed assessment, which includes 100% of the NND Project, is based on the SCDOR’s position that DESC’s sales and use tax exemption for the NND Project does not apply because the facility will not become operational. ~~DESC has protested~~In December 2020, the ~~proposed assessment, which remains pending.~~parties reached an agreement in principle in the amount of $165 million to resolve this matter.

In September and October 2017, SCANA was served with subpoenas issued by the U.S. Attorney’s Office for the District of South Carolina and the Staff of the SEC’s Division of Enforcement seeking documents related to the NND Project. In February 2020, the SEC filed a complaint against SCANA, two of its former executive officers and DESC in the U.S. District Court for the District of South Carolina alleging that the defendants violated federal securities laws by making false and misleading statements about the NND Project. In April 2020, SCANA and DESC reached an agreement in principle with the Staff of the SEC’s Division of Enforcement to settle, without admitting or denying the allegations in the complaint. ~~The Staff~~In December 2020, the U.S. District Court for the District of South Carolina issued an order approving the ~~SEC’s Division of Enforcement has not yet presented the proposed~~ settlement ~~to the SEC. The agreement in principle would, among other things, require~~which required SCANA to pay a civil monetary penalty totaling $25 million, and SCANA and DESC to pay disgorgement and prejudgment interest totaling $112.5 million, which disgorgement and prejudgment interest amount ~~will be~~were deemed satisfied by the settlements in the SCANA Securities Class Action and the DESC Ratepayer Case. SCANA paid the civil penalty in December 2020. The ~~proposed settlement~~SEC civil action against two former executive officers of SCANA remains pending and is ~~contingent on~~currently subject to a stay granted by the ~~review and approval of final documentation by SCANA, DESC and~~court in June 2020 at the ~~Staff~~request of the ~~SEC’s Division of Enforcement and is subject to approval by the SEC and the~~ U.S. ~~District Court~~Attorney’s Office for the District of South Carolina. ~~This matter is pending.~~

In addition, the South Carolina Law Enforcement Division is conducting a criminal investigation into the handling of the NND Project by SCANA and DESC. Dominion Energy is cooperating fully with the investigations by the U.S. Attorney’s Office and the South Carolina Law Enforcement Division, including responding to additional subpoenas and document requests. Dominion Energy has also entered into a cooperation agreement with the U.S. Attorney’s Office and the South Carolina Attorney General’s Office. The cooperation agreement provides that in consideration of its full cooperation with these investigations to the satisfaction of both agencies, neither such agency will criminally prosecute or bring any civil action against Dominion Energy or any of its current, previous, or future direct or indirect subsidiaries related to the NND Project. ~~These matters are pending.~~

~~Other Litigation~~

~~In December 2018, arbitration proceedings commenced between DESC~~A former executive officer of SCANA entered a plea agreement with the U.S. Attorney’s Office and ~~Cameco Corporation~~the South Carolina Attorney General’s Office in June 2020 and entered a guilty plea with the U.S. District Court for the District of South Carolina in July 2020. Another former executive officer of SCANA entered a plea agreement with the U.S. Attorney's Office and the South Carolina Attorney General's Office in November 2020 and entered guilty pleas in the U.S. District Court for the District of South Carolina and in South Carolina state court in February 2021. As a result of the pleas, Dominion Energy has terminated indemnity for these former executive officers related to a supply agreement signed in May 2008. This agreement provides the terms and conditions under which DESC agreed to purchase uranium hexafluoride from Cameco Corporation over a period from 2010 to 2020. Cameco Corporation alleges that DESC violated this agreement by failing to purchase the stated quantities of uranium hexafluoride for the 2017 and 2018 delivery years. DESC denies that it is in breach of the agreement and believes that it has reduced its purchase quantity within the terms of the agreement. This matter is pending.these two cases.

Abandoned NND Project

DESC, for itself and as agent for Santee Cooper, entered into an engineering, construction and procurement contract with Westinghouse and WECTEC in 2008 for the design and construction of the NND Project, of which DESC’s ownership share is 55%. Various difficulties were encountered in connection with the project. The ability of Westinghouse and WECTEC to adhere to established budgets and construction schedules was affected by many variables, including unanticipated difficulties encountered in connection with project engineering and the construction of project components, constrained financial resources of the contractors, regulatory, legal, training and construction processes associated with securing approvals, permits and licenses and necessary amendments to them within projected time frames, the availability of labor and materials at estimated costs and the efficiency of project labor. There were also contractor and supplier performance issues, difficulties in timely meeting critical regulatory requirements, contract disputes, and changes in key contractors or subcontractors. These matters preceded the filing for bankruptcy protection by Westinghouse and WECTEC in March 2017, and were the subject of comprehensive analyses performed by SCANA and Santee Cooper.

Based on the results of SCANA’s analysis, and in light of Santee Cooper's decision to suspend construction on the NND Project, in July 2017, SCANA determined to stop the construction of the units and to pursue recovery of costs incurred in connection with the construction under the abandonment provisions of the Base Load Review Act or through other means. This decision by SCANA

became the focus of numerous legislative, regulatory and legal proceedings. Some of these proceedings remain unresolved and are described above.

In September 2017, DESC, for itself and as agent for Santee Cooper, filed with the U.S. Bankruptcy Court for the Southern District of New York Proofs of Claim for unliquidated damages against each of Westinghouse and WECTEC. These Proofs of Claim were based upon the anticipatory repudiation and material breach by Westinghouse and WECTEC of the contract, and assert against Westinghouse and WECTEC any and all claims that are based thereon or that may be related thereto.

Westinghouse’s reorganization plan was confirmed by the U.S. Bankruptcy Court for the Southern District of New York and became effective in August 2018. In connection with the effectiveness of the reorganization plan, the contract associated with the NND Project was deemed rejected. DESC is contesting approximately $285 million of filed liens in Fairfield County, South Carolina. Most of these asserted liens are claims that relate to work performed by Westinghouse subcontractors before the Westinghouse bankruptcy, although some of them are claims arising from work performed after the Westinghouse bankruptcy.

Westinghouse has indicated that some unsecured creditors have sought or may seek amounts beyond what Westinghouse allocated when it submitted its reorganization plan to the U.S. Bankruptcy Court for the Southern District of New York. If any unsecured creditor is successful in its attempt to include its claim as part of the class of general unsecured creditors beyond the amounts in the bankruptcy reorganization plan allocated by Westinghouse, it is possible that the reorganization plan will not provide for payment in full or nearly in full to its pre-petition trade creditors. The shortfall could be significant.

DESC and Santee Cooper were responsible for amounts owed to Westinghouse for valid work performed by Westinghouse subcontractors on the NND Project after the Westinghouse bankruptcy filing until termination of the interim assessment agreement. In December 2019, DESC and Santee Cooper entered into a confidential settlement agreement with W Wind Down Co LLC resolving claims relating to the interim assessment agreement.

Further, some Westinghouse subcontractors who have made claims against Westinghouse in the bankruptcy proceeding also filed against DESC and Santee Cooper in South Carolina state court for damages. Many of these claimants have also asserted construction liens against the NND Project site. DESC also intends to oppose these claims and liens. With respect to claims of Westinghouse subcontractors, DESC believes there were sufficient amounts previously funded during the interim assessment agreement period to pay such validly asserted claims. With respect to the Westinghouse subcontractor claims which relate to other periods, DESC understands that such claims will be paid pursuant to Westinghouse’s confirmed bankruptcy reorganization plan. DESC further understands that the amounts paid under the plan may satisfy such claims in full. Therefore, DESC believes that the Westinghouse subcontractors may be paid substantially (and potentially in full) by Westinghouse. While Dominion Energy cannot be assured that it will not have any exposure on account of unpaid Westinghouse subcontractor claims, which DESC is presently disputing, Dominion Energy believes it is unlikely that it will be required to make payments on account of such claims.

Nuclear ~~Matters~~Operations

Nuclear Insurance

In March ~~2011, a magnitude 9.0 earthquake and subsequent tsunami caused significant damage at~~2021, the ~~Fukushima Daiichi~~total liability protection per nuclear power station in northeast Japan. These events resulted in significant nuclear safety reviews by the NRC and industry groups such as the Institute of Nuclear Power Operations. Like other U.S. nuclear operators, Dominion Energy has gathered supporting data and participated in industry initiatives focused on the abilityincident available to ~~respond to and mitigate the consequences of, design-basis and beyond-design-basis events at its stations.~~

In July 2011, an NRC task force provided initial recommendations based on its review of the Fukushima Daiichi accident and in October 2011 the NRC staff prioritized these recommendations into Tiers 1, 2 and 3. Tier 1 recommendations consisted of actions which the NRC staff determined should be started without unnecessary delay. Tier 2 and 3 items consisted of items which could not be initiatedall participants in the ~~near term because~~Secondary Financial Protection Program decreased from $13.8 billion to $13.7 billion. This decrease does not impact Dominion Energy’s responsibility per active unit under the Price-Anderson Amendments Act of resource restraints, the need for further technical assessment, or were dependent on activities related to the higher priority Tier 1 issues. In December 2011, the NRC Commissioners approved the agency staff’s prioritization and recommendations, and that same month an appropriations act directed the NRC to require reevaluation of external hazards (not limited to seismic and flooding hazards) as soon as possible.

Based on the prioritized recommendations, in March 2012, the NRC issued orders and information requests requiring specific reviews and actions to all operating reactor licensees, construction permit holders and combined license holders based on the lessons learned from the Fukushima Daiichi event. The orders applicable to Dominion Energy requiring implementation of safety enhancements related to mitigation strategies for responding to extreme natural events resulting in the loss of power at plants, and enhancing spent fuel pool instrumentation have been implemented. The information requests issued by the NRC requested each reactor licensee to reevaluate the seismic and external flooding hazards at their facility using ~~present-day~~ methods and information, conduct walkdowns of their facility to ensure protection against these hazards in their current design basis, and to reevaluate their emergency communications systems and staffing levels. The walkdowns of each unit have been completed, audited by the NRC and found to be adequate. Reevaluation of the emergency communications systems and staffing levels was completed as part of the effort to comply with the orders. Reevaluation of the seismic hazards is complete and final with NRC acceptance received for all Dominion Energy facilities. Reevaluation of the external flooding hazards is complete for all Dominion Energy facilities. However, NRC acceptance of the external flooding hazards reevaluations for Millstone and Surry have not yet been received. NRC is expected to accept these external flooding hazards analyses in 2020. Dominion Energy and Virginia Power do not currently expect that compliance with the NRC’s information requests will materially impact their financial position, results of operations or cash flows during the implementation period. The NRC staff has resolved the Tier 2 and Tier 3 recommendations and no additional future actions on the part of Dominion Energy are anticipated with respect to these recommendations. Therefore, Dominion Energy and Virginia Power do not expect material financial impacts related to compliance with Tier 2 and Tier 3 recommendations.

~~Nuclear Operations~~1988.

Spent Nuclear Fuel

As discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019, Dominion Energy and Virginia Power~~2020, the Companies entered into contracts with the DOE for the disposal of spent nuclear fuel under provisions of the Nuclear Waste Policy Act of 1982.

In June 2018, a lawsuit for Kewaunee was filed in the U.S. Court of Federal Claims for recovery of spent nuclear fuel storage costs incurred after 2013. In March 2019, Dominion Energy amended its filing for recovery of spent nuclear fuel storage to include costs incurred for the year ended December 31, 2018. This matter is pending.

Guarantees, Surety Bonds and Letters of Credit

Upon the closing of the GT&S Transaction, Dominion Energy ~~entered into a guarantee agreement~~retained its 4 guarantees related to Cove Point, an equity method investment, in support ~~a portion~~ of Atlantic Coast Pipeline’s obligation under a $3.4 billion revolving credit facility with a stated maturity date of October 2021. In March 2020, Dominion Energy acquired Southern’s 5% membership interest in Atlantic Coast Pipeline. As a result, Dominion Energy’s maximum potential loss exposure under the termsterminal services, transportation and construction. NaN of the ~~guarantee has increased from 48%~~Cove Point guarantees have a cumulative

maximum exposure of $1.9 billion while the other 2 guarantees have 0 maximum limit. No amounts related to 53% of the outstanding borrowings under the revolving credit facility, an equal percentage to Dominion Energy’s ownership in Atlantic Coast Pipeline. As of March 31, 2020, Atlantic Coast Pipeline had borrowed $1.8 billion against the revolving credit facility and borrowed an additional $32 million in the second quarter of 2020. Dominion Energy’s Consolidated Balance Sheets include a liability of $60 million and $14 million associated with this guarantee agreement at March 31, 2020 and December 31, 2019, respectively. The liability as of March 31, 2020 includes a $48 million adjustment reflected within equity as a cumulative-effect of changes in accounting principles for current expected credit loss associated with this guarantee agreement.

these guarantees have been recorded.

In addition, at March 31, ~~2020,~~2021, Dominion Energy had issued an additional ~~$27~~$25 million of guarantees, primarily to support ~~other equity method investees.~~third parties. No amounts related to ~~the other~~these guarantees have been recorded.

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

At March 31, ~~2020,~~2021, Dominion Energy had issued the following subsidiary guarantees:

Maximum
Exposure

(millions)

Commodity transactions⁽¹⁾

$
2,226

Nuclear obligations⁽²⁾

204

Cove Point⁽³⁾

1,900

Solar⁽⁴⁾

434

Other⁽⁵⁾

448

Total⁽⁶⁾

$
5,212

	Maximum Exposure
(millions)
Commodity transactions⁽¹⁾	$	1,851
Nuclear obligations⁽²⁾		202
Solar⁽³⁾		463
Other⁽⁴⁾		982
Total⁽⁵⁾	$	3,498

(1)	Guarantees related to commodity commitments of certain subsidiaries. These guarantees were provided to counterparties in order to facilitate physical and financial transaction related commodities and services.

(2)	Guarantees primarily related to certain DGI subsidiaries regarding all aspects of running a nuclear facility.

(3)	Guarantees related to Cove Point, in support of terminal services, transportation and construction. Cove Point has two guarantees that have no maximum limit and, therefore, are not included in this amount.

~~(4)~~

Includes guarantees to facilitate the development of solar projects. Also includes guarantees entered into by DGI on behalf of certain subsidiaries to facilitate the acquisition and development of solar projects.

~~(5)~~(4)

Guarantees related to other miscellaneous contractual obligations such as leases, environmental obligations, construction projects and insurance programs. Also includes guarantees entered into by Dominion Energy RNG Holdings II, Inc. on behalf of a subsidiary to facilitate construction of renewable natural gas facilities. Due to the uncertainty of workers’ compensation claims, the parental guarantee has no stated limit.

~~(6)~~(5)

Excludes Dominion Energy's guarantees for the new corporate office properties and an offshore wind installation vessel discussed in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020 and in Note 14 in this report.

Additionally, at March 31, ~~2020,~~2021, Dominion Energy had purchased ~~$164~~$167 million of surety bonds, including ~~$79~~$95 million at Virginia Power, ~~and $27 million at Dominion Energy Gas,~~ and authorized the issuance of letters of credit by financial institutions of ~~$86~~$99 million to facilitate commercial transactions by its subsidiaries with third parties. Under the terms of surety bonds, the Companies are obligated to indemnify the respective surety bond company for any amounts paid.

Note 18. Credit Risk

The Companies’ accounting policies for credit risk are discussed in Note 24 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

At March 31, ~~2020,~~2021, Dominion Energy’s ~~gross~~ credit exposure totaled $124 million, primarily related to price risk management activities. Of this amount, investment grade counterparties, including those internally rated, represented 87%. NaN single counterparty, whether investment grade or non-investment grade, exceeded $38 million of exposure. At March 31, 2021, Virginia Power’s exposure related to ~~energy marketing and price risk management activities~~wholesale customers totaled ~~$172~~$7 million. Of this amount, investment grade counterparties, including those internally rated, represented ~~95%~~52%. NaN single counterparty, whether investment grade or non-investment grade, exceeded ~~$55~~$2 million of exposure. At March 31, 2020, Virginia Power’s exposure related to wholesale customers totaled $65 million. Of this amount, investment grade counterparties, including those internally rated, represented 100%. NaN single counterparty, whether investment grade or non-investment grade, exceeded $55 million of exposure. At March 31, 2020, Dominion Energy Gas’ exposure primarily related to wholesale customers totaled $45 million. Of this amount, investment grade counterparties, including those internally rated, represented 92%. NaN single counterparty, whether investment grade or non-investment grade, exceeded $12 million of exposure.

~~For the three months ended March 31, 2020 and 2019, the Export Customers comprised approximately 33% and 32%, respectively,~~63

Credit-Related Contingent Provisions

Certain of Dominion ~~Energy Gas’ total operating revenue, with Dominion Energy Gas’ largest customer representing approximately 17% of such amount during both periods~~.

~~Credit-Related Contingent Provisions~~

~~The majority of Dominion Energy��s~~Energy’s derivative instruments contain credit-related contingent provisions. These provisions require Dominion Energy to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered as of March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, Dominion Energy would have been required to post ~~$14~~$11 million and ~~$10~~$14 million, respectively, of additional collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. Dominion Energy had posted $4$1 million of collateral at ~~March~~December 31, 2020 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with ~~cash and had posted 0 collateral at December 31, 2019.~~cash. The aggregate fair value of all derivative instruments with credit-related contingent provisions that are in a liability position and not fully collateralized with cash was ~~$18~~$11 million and ~~$10~~$15 million at March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which does not include the impact of any offsetting asset positions.

If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered, ~~as of~~Virginia Power would 0t have been required to post any additional collateral to its counterparties at March 31, ~~2020~~2021 and ~~December 31, 2019, Virginia Power~~ would have been required to post an additional $2 million ~~and $8 million, respectively,~~ of collateral to its ~~counterparties.~~

~~Credit-related contingent provisions for Dominion Energy Gas were not material as of March 31, 2020 and~~counterparties at December 31, ~~2019.~~ 2020.

See Note 9 for further information about derivative instruments.

Note 19. Related-Party Transactions

Virginia Power ~~and Dominion Energy Gas engage~~engages in related-party transactions primarily with other Dominion Energy subsidiaries (affiliates). Virginia ~~Power and Dominion Energy Gas’~~Power’s receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power ~~and Dominion Energy Gas are~~is included in Dominion Energy's consolidated federal income tax return and, where applicable, combined income tax returns for Dominion Energy are filed in various states. Dominion Energy’s transactions with equity method investments are described in Note 10. A discussion of significant related-party transactions follows.

Virginia Power

Transactions with Affiliates

Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of natural gas. At March 31, ~~2020, Virginia Power’s derivative assets and liabilities with affiliates were $2 million and $20 million, respectively. At December 31, 2019,~~2021, Virginia Power’s derivative assets and liabilities with affiliates were $3 million and ~~$53~~$5 million, respectively. At December 31, 2020, Virginia Power’s derivative assets and liabilities with affiliates were $3 million and $22 million, respectively. See Note 9 for more information.

Virginia Power participates in certain Dominion Energy benefit plans described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. At March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were ~~$810~~$457 million and ~~$782~~$436 million, respectively. At March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, Virginia Power's amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were ~~$303~~$373 million and ~~$287~~$354 million, respectively.

DES and other affiliates provide accounting, legal, finance and certain administrative and technical services to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage.

The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES to Virginia Power on the basis of direct and allocated methods in accordance with Virginia Power’s services agreements with DES. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES resources that is attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.

Presented below are Virginia Power’s significant transactions with DES and other affiliates:

	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2021		2020
(millions)
Commodity purchases from affiliates	$	211	$	272	$	181	$	211
Services provided by affiliates⁽¹⁾		121		119
Services provided by affiliates⁽¹⁾						125		121
Services provided to affiliates		5		6		5		5

(1)	Includes capitalized expenditures of~~$34~~ $38 million and ~~$33~~$34 million for the three months ended March 31, 2021 and 2020, ~~and 2019,~~ respectively.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were 0$177 million and $380 million in short-term demand note borrowings from Dominion Energy as of March 31, ~~2020~~2021 and ~~$107 million in short-term demand note borrowings from Dominion Energy as of~~ December 31, ~~2019.~~2020, respectively. Virginia Power had 0 outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of March 31, ~~2020~~2021 and December 31, ~~2019.~~2020. Interest charges related to Virginia Power’s borrowings from Dominion Energy were immaterial for the three months ended March 31, ~~2020~~2021 and ~~2019.~~2020.

There were 0 issuances of Virginia Power’s common stock to Dominion Energy for the three months ended March 31, ~~2020~~2021 and ~~2019.~~

~~Dominion Energy Gas~~

~~Transactions with Related Parties~~

Dominion Energy Gas transacts with affiliates for certain quantities of natural gas and other commodities at market prices in the ordinary course of business. Additionally, Dominion Energy Gas provides transportation and storage services to affiliates. Dominion Energy Gas also enters into certain other contracts with affiliates and related parties, including construction services, which are presented separately from contracts involving commodities or services. As of March 31, 2020 and December 31, 2019, Dominion Energy Gas did 0t have any commodity derivative assets or liabilities with affiliates. See Notes 7 and 9 for more information. See Note 10 for information regarding transactions with Atlantic Coast Pipeline. See Note 3 for information regarding the Dominion Energy Gas Restructuring, an affiliated transaction.

Dominion Energy Gas participates in certain Dominion Energy benefit plans as described in Note 21 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019. At March 31, 2020 and December 31, 2019, amounts due from Dominion Energy associated with the Dominion Energy Pension Plan included in other deferred charges and other assets in the Consolidated Balance Sheets were $331 million and $326 million, respectively. At March 31, 2020 and December 31, 2019, Dominion Energy Gas’ amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan included in other deferred charges and other assets in the Consolidated Balance Sheets were $19 million and $17 million, respectively.

DES, DECGS, DEQPS and other affiliates provide accounting, legal, finance, marketing and certain administrative and technical services to Dominion Energy Gas. Dominion Energy Gas provides certain services to related parties, including technical services.

The financial statements for all years presented include costs for certain general, administrative and corporate expenses assigned by DES, DECGS and DEQPS to Dominion Energy Gas on the basis of direct and allocated methods in accordance with Dominion Energy Gas’ services agreements with DES, DECGS and DEQPS. Where costs incurred cannot be determined by specific identification, the costs are allocated based on the proportional level of effort devoted by DES, DECGS and DEQPS resources that are attributable to the entity, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES, DECGS and DEQPS service. Management believes the assumptions and methodologies underlying the allocation of general corporate overhead expenses are reasonable.

~~Presented below are Dominion Energy Gas’ significant transactions with DES, DECGS, DEQPS and other affiliates and related parties:~~

Three Months Ended March 31,

2020

2019

(millions)

Sales of natural gas and transportation and storage services

$
64

$
67

Purchases of natural gas and transportation storage services

3

—

Services provided by related parties⁽¹⁾

43

45

Services provided to related parties⁽²⁾

32

45

~~(1)~~

~~Includes capitalized expenditures of $3 million and $6 million for the three months ended March 31, 2020 and 2019, respectively.~~

~~(2)~~

~~Amounts primarily attributable to Atlantic Coast Pipeline, a related-party VIE.~~

~~The following table presents affiliated and related party balances reflected in Dominion Energy Gas’ Consolidated Balance Sheets:~~

March 31, 2020

December 31, 2019

(millions)

Other receivables⁽¹⁾

$
8

$
7

Imbalances receivable from affiliates

—

8

Imbalances payable to affiliates⁽²⁾

2

1

Other deferred charges and other assets

11

12

~~(1)~~

~~Represents amounts due from Atlantic Coast Pipeline, a related-party VIE.~~

~~(2)~~

~~Amounts are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.~~

Affiliated receivables at March 31, 2020 and December 31, 2019 included $21 million and $22 million, respectively, of accrued unbilled revenue. This revenue is based on estimated amounts of services provided but not yet billed to various affiliates.

~~Dominion Energy Gas’ affiliated borrowings and investments are discussed in Note 25 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019.~~

Dominion Energy Gas had $262 million in affiliated notes receivable under the Dominion Energy money pool as of March 31, 2020 and 0 outstanding receivables as of December 31, 2019. Interest income related to the affiliated notes receivable was immaterial for the three months ended March 31, 2020.

Interest income on affiliated notes receivable from East Ohio and DGP for borrowings under intercompany revolving credit agreements with Dominion Energy Gas was $5 million for the three months ended March 31, 2019.

~~Interest income earned on DMLPHCII’s promissory note to Dominion Energy was immaterial for the three months ended March 31, 2020 and 2019.~~

~~Interest income related to Dominion Energy’s promissory note borrowings with Cove Point was $27 million for the three months ended March 31, 2019.~~

At March 31, 2020 and December 31, 2019, Dominion Energy Gas’ affiliated notes receivable from Dominion Energy totaled $1.8 billion. Interest income on these promissory notes was $11 million for the three months ended March 31, 2020.

At March 31, 2020 and December 31, 2019, Dominion Energy Gas’ affiliated notes receivable from East Ohio totaled $1.7 billion. Interest income on these promissory notes were $18 million for the three months ended March 31, 2020.

Dominion Energy Gas’ borrowings under the intercompany revolving credit agreement with Dominion Energy totaled $256 million and $251 million as of March 31, 2020 and December 31, 2019. Interest charges related to Dominion Energy Gas’ total borrowings from Dominion Energy were less than $1 million for the three months ended March 31, 2020 and 2019.

~~Interest charges related to DCP’s total borrowings from Dominion Energy under an intercompany revolving credit agreement totaled $29 million for the three months ended March 31, 2019.~~

DCP had borrowings of $9 million with DES as of December 31, 2019. Interest related to DCP’s total borrowings from DES totaled less than $1 million for the three months ended March 31, 2020 and 2019.

In the first quarter of 2019, Dominion Energy Midstream borrowed $395 million from Dominion Energy under a $400 million promissory note with Dominion Energy that was scheduled to mature in 2022. Interest charges of $2 million were incurred for the three months ended March 31, 2019.

For the three months ended March 31, 2020 and 2019, Dominion Energy Gas, including entities acquired in the Dominion Energy Gas Restructuring, distributed $37 million and $46 million to Dominion Energy, respectively.

Note 20. Employee Benefit Plans

Dominion Energy

The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income, except for $5 million for the three months ended March 31, 2020, presented in discontinued operations. The non-service cost components of net period benefit (credit) cost are reflected in other income in Dominion Energy’s Consolidated Statements of Income. The components of Dominion Energy’s provision for net periodic benefit cost (credit) ~~were~~are as follows:

	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
	2020			2019			2020			2019			2021			2020			2021			2020
(millions)
Three Months Ended March 31,
Service cost	$	43		$	40		$	7		$	7		$	42		$	43		$	6		$	7
Interest cost		91			101			15			17			79			91			12			15
Expected return on plan assets		(193	)		(177	)		(39	)		(33	)		(208	)		(193	)		(44	)		(39	)
Amortization of prior service credit		—			—			(12	)		(13	)
Amortization of prior service (credit) cost														0			0			(10	)		(12	)
Amortization of net actuarial loss		49			39			1			4			48			49			1			1
Settlements		—			2			—			—			(2	)		0			0			0
Net periodic benefit cost (credit)	$	(10	)	$	5		$	(28	)	$	(18	)
Net periodic benefit (credit) cost													$	(41	)	$	(10	)	$	(35	)	$	(28	)

Employer Contributions

During the three months ended March 31, ~~2020,~~2021, Dominion Energy made 0 contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy does 0t expect to make ~~contributions to its defined benefit pension plans and expects to contribute $12 million to other postretirement benefit plans through VEBAs, respectively, during the remainder of 2020.~~

~~Dominion Energy Gas~~

Dominion Energy Gas participates in certain Dominion Energy benefit plans as described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019. See Note 19 for more information.

~~The components of Dominion Energy Gas’ provision for net periodic benefit cost (credit) for employees represented by collective bargaining units were as follows:~~

Pension Benefits

Other Postretirement Benefits

2020

2019

2020

2019

(millions)

Three Months Ended March 31,

Service cost

$
1

$
4

$
1

$
1

Interest cost

3

8

1

3

Expected return on plan assets

(14
)

(39
)

(5
)

(7
)
Amortization of prior service credit

—

—

(1
)

(1
)
Amortization of net actuarial loss

2

5

—

1

Net periodic benefit credit

$
(8
)

$
(22
)

$
(4
)

$
(3
)

~~Employer Contributions~~

~~During the three months ended March 31, 2020, Dominion Energy Gas made 0~~any contributions to its qualified defined benefit pension ~~plan~~plans or ~~other postretirement benefit plans. Dominion Energy Gas does 0t expect~~ to ~~make contributions to its qualified defined benefit pension plan and expects to contribute approximately $12 million to~~VEBAs associated with its other postretirement ~~benefit~~ plans ~~through VEBAs during the remainder of 2020.~~in 2021.

Note 21. Operating Segments

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

Primary Operating Segment	Description of Operations	Dominion Energy	Virginia Power	~~Dominion~~ ~~Energy~~ ~~Gas~~
Dominion Energy Virginia	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Regulated electric generation fleet⁽¹⁾⁽¹⁾	X	X
~~Gas Transmission & Storage~~	~~Regulated gas transmission and storage~~⁽²⁾	X		X
	~~LNG terminalling and storage~~	X		X
	~~Nonregulated retail energy marketing~~	X
Gas Distribution	Regulated gas distribution and storage⁽³⁾⁽²⁾	X
Dominion Energy South Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted ~~Generation~~Assets	~~Merchant~~Nonregulated electric generation fleet	X
	Noncontrolling interest in Cove Point	X

(1)	Includes Virginia Power’s nonjurisdictional generation operations.

(2)	Includes ~~gathering and processing activities.~~

~~(3)~~

~~Includes~~renewable natural gas operations as well as Wexpro’s gas development and production operations.

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

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt). as well as nonregulated retail energy marketing operations, including Dominion Energy’s noncontrolling interest in Wrangler. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating ~~resources. As~~resources as well as the net impact of the gas transmission and storage operations held in discontinued operations, which are discussed in Note ~~1 in the Companies’ Annual Report on Form 10-K, in December 2019, Dominion Energy realigned its segments which resulted in the formation of five primary operating segments. The information for~~3.

In the three months ended March 31, ~~2019 presented herein has been recast~~2021, Dominion Energy reported after-tax net income of $71 million in the Corporate and Other segment, including $115 million of after-tax net income for specific items with $87 million of after-tax net expenses attributable to ~~reflect the current segment presentation.~~

its operating segments. In the three months ended March 31, 2020, Dominion Energy reported after-tax net expenses of ~~$1.2~~$1.1 billion ~~for specific items~~ in the Corporate and Other segment, including $1.1 billion of after-tax net expenses for specific items with $1.0 billion of ~~net expenses attributable to its operating segments. In the three months ended March 31, 2019, Dominion Energy reported~~ after-tax ~~net expenses of $1.6 billion for specific items in the Corporate and Other segment, with $1.3 billion of~~ net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2021 primarily related to the impact of the following items:

•	A $151 million ($112 million after-tax) loss from an unbilled revenue reduction at Virginia Power, attributable to Dominion Energy Virginia;

•	A $76 million ($56 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process, attributable to Dominion Energy Virginia;

•	A $60 million ($45 million after-tax) charge associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina; and

•	A $51 million ($38 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia; partially offset by

•	A $134 million ($100 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

•

Contracted Assets ($88 million after-tax) and;

•

Dominion Energy Virginia ($12 million after-tax); and

•	A $130 million ($97 million after-tax) benefit for a change in the CCRO reserve associated with the 2021 Triennial Review, attributable to Dominion Energy Virginia.

The net expense for specific items attributable to Dominion Energy’s operating segments in 2020 primarily related to the impact of the following items:

•	A $754 million ($566 million after-tax) charge primarily related to the planned early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia; and

•	A $538 million ($410 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

•

Contracted ~~Generation~~Assets ($364 million after-tax) and;

•

Dominion Energy Virginia ($46 million after-tax).

In September 2020, Dominion Energy updated its segments. The ~~net expense for specific items attributable~~historical information presented herein has been recast to ~~Dominion Energy’s operating segments in 2019 primarily related to~~reflect the ~~impact of the following items:~~

•	~~A $1.0 billion ($756~~ ~~million after-tax) charge for refunds of amounts previously collected from retail electric customers of DESC for the NND Project, attributable to Dominion Energy South Carolina;~~

•	~~A $369 million ($275 million after-tax) charge related to the early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia;~~

•	A $198 million tax charge for $264 million of income tax-related regulatory assets acquired in the SCANA Combination for which Dominion Energy committed to forgo recovery, attributable to Dominion Energy South Carolina;

•	~~$178 million ($133 million after-tax) of charges associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina;~~

•	~~A $160 million ($119 million after-tax) charge related to Virginia Power’s planned early retirement of certain automated meter reading infrastructure, attributable to Dominion Energy Virginia;~~

•	~~$106 million ($81 million after-tax) of merger and integration-related costs associated with the SCANA Combination, attributable to Dominion Energy South Carolina;~~

•	A $105 million ($79 million after-tax) charge for property, plant and equipment acquired in the SCANA Combination for which Dominion Energy committed to forego recovery, attributable to Dominion Energy South Carolina;

•	~~A $253 million ($197 million after-tax) net gain related to investments in nuclear decommissioning trust funds, attributable to:~~

•

~~Contracted Generation ($175 million after-tax) and;~~

•

~~Dominion Energy Virginia ($22 million after-tax).~~

•	A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019, attributable to Dominion Energy Virginia.

current segment presentation. The following table presents segment information pertaining to Dominion Energy’s operations:

	Dominion Energy Virginia			Gas Transmission & Storage		Gas Distribution		Dominion Energy South Carolina		Contracted Generation		Corporate and Other			Adjustments & Eliminations			Consolidated Total			Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina		Contracted Assets		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2021
Total revenue from external customers																					$	1,987		$	975	$	752	$	268	$	(130	)	$	17		$	3,869
Intersegment revenue																						(2	)		1		2		21		230			(251	)		1
Total operating revenue																						1,985			976		754		289		100			(234	)		3,870
Net income from discontinued operations																						0			0		0		0		28			0			28
Net income attributable to Dominion Energy																						434			251		102		150		71			0			1,008
Three Months Ended March 31, 2020
Total revenue from external customers	$	1,938		$	644	$	887	$	713	$	286	$	28		$	—		$	4,496		$	1,938		$	886	$	713	$	288	$	109		$	15		$	3,949
Intersegment revenue		(3	)		57		3		1		4		279			(341	)		—			(3	)		4		1		8		242			(263	)		(11	)
Total operating revenue		1,935			701		890		714		290		307			(341	)		4,496			1,935			890		714		296		351			(248	)		3,938
Net income from discontinued operations																						0			0		0		51		178			0			229
Net income (loss) attributable to Dominion Energy		429			221		225		94		59		(1,298	)		-			(270	)		429			224		94		111		(1,128	)		0			(270	)
Three Months Ended March 31, 2019
Total revenue from external customers	$	2,001		$	984	$	917	$	689	$	352	$	(1,052	)	$	(33	)	$	3,858
Intersegment revenue		(4	)		54		4		—		3		277			(334	)		—
Total operating revenue		1,997			1,038		921		689		355		(775	)		(367	)		3,858
Net income (loss) attributable to Dominion Energy		361			222		205		71		102		(1,641	)		-			(680	)

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in ~~consolidation.~~consolidation, including amounts related to entities presented within discontinued operations.

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources. As discussed in Note 1 in the Companies’ Annual Report on Form 10-K, in December 2019, Virginia Power realigned its segments which resulted in the formation of one primary operating segment. The information for

In the three months ended March 31, ~~2019 presented herein has been recast~~2021, Virginia Power reported after-tax net expenses of $58 million in the Corporate and Other segment, including $117 million of after-tax net expenses for specific items all of which was attributable to ~~reflect the current segment presentation.~~

its operating segment. In the three months ended March 31, 2020, Virginia Power reported after-tax net expenses of ~~$700~~$707 million ~~for specific items~~ in the Corporate and Other segment, ~~with~~including $634 million of ~~the~~after-tax net expenses for specific items all of which was attributable to its operating segment. ~~In the three months ended March 31, 2019 Virginia Power reported after-tax expense of $344 million~~

The net expenses for specific items ~~in the Corporate and Other segment, with $324 million of net expenses~~ attributable to ~~its~~Virginia Power’s operating ~~segment.~~segment in 2021 primarily related to the impact of the following items:

•	A $151 million ($112 million after-tax) loss from an unbilled revenue reduction;

•	A $76 million ($56 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process; and

•	A $51 million ($38 million after-tax) charge associated with storm damage and service restoration in its service territory; partially offset by

•	A $130 million ($97 million after-tax) benefit for a change in the CCRO reserve associated with the 2021 Triennial Review.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2020 primarily related to the impact of the following items:

•	A $754 million ($561 million after-tax) charge related to the planned early retirement of certain Virginia Power electric generation facilities; and

•	A $62 million ($46 million after-tax) loss related to investments in nuclear decommissioning trust funds.

~~The net expenses for specific items in 2019 primarily related to the impact of the following items:~~

•	~~A $369 million ($275 million after-tax) charge related to the early retirement of certain electric generation facilities;~~

•	~~A $160 million ($119 million after-tax) charge related to the planned early retirement of certain automated meter reading infrastructure; and~~

•	~~A $29 million ($22 million after-tax) charge related to a portion of rate adjustment clauses for excess deferred taxes which are probable of being returned to customers, partially offset by~~

•	~~A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019.~~

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

Dominion
Energy
Virginia

Corporate
and Other

Consolidated
Total

(millions)

Three Months Ended March 31, 2020

Operating revenue

$
1,930

$
—

$
1,930

Net income (loss)

427

(707
)

(280
)
Three Months Ended March 31, 2019

Operating revenue

$
1,994

$
(29
)

$
1,965

Net income (loss)

358

(338
)

20

~~Dominion Energy Gas~~

~~The Corporate and Other Segment of Dominion Energy Gas~~ primarily includes specific items attributable to Dominion Energy Gas’ operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources and the effect of certain items recorded at Dominion Energy Gas as a result of Dominion Energy’s basis in the net assets contributed. In addition, Corporate and Other includes the net impact of discontinued operations, which are discussed in Note 3. As discussed in Note 1 in the Companies’ Annual Report on Form 10-K, in December 2019, Dominion Energy Gas realigned its segments which resulted in the formation of one primary operating segment. The information for the three months ended March 31, 2019 presented herein has been recast to reflect the current segment presentation.

~~In both the three months ended March 31, 2020 and 2019, Dominion Energy Gas reported an immaterial amount of specific items in the Corporate and Other segment.~~

~~The following table presents segment information pertaining to Dominion Energy Gas’ operations:~~

	Gas Transmission & Storage		Corporate and Other			Consolidated Total		Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2021
Operating revenue								$	1,981	$	(151	)	$	1,830
Net income (loss)									432		(58	)		374
Three Months Ended March 31, 2020
Operating revenue	$	556	$	—		$	556	$	1,930	$	0		$	1,930
Net income (loss) attributable to Dominion Energy Gas		174		(5	)		169
Three Months Ended March 31, 2019
Operating revenue	$	566	$	—		$	566
Net income from discontinued operations		—		54			54
Net income (loss) attributable to Dominion Energy Gas		138		52			190
Net income (loss)									427		(707	)		(280	)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

Contents of MD&A

MD&A consists of the following information:

•	Forward-Looking Statements

•	Accounting Matters – Dominion Energy

•	Dominion Energy

•

Results of Operations

•

Segment Results of Operations

•	Virginia Power

•

Results of Operations

•	~~Dominion Energy Gas~~

•

~~Results of Operations~~

•	Liquidity and Capital Resources – Dominion Energy

•	Future Issues and Other Matters – Dominion Energy

Forward-Looking Statements

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

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

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

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

•	The impact of extraordinary external events, such as the current pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in our markets;

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

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

•	Changes to regulated electric rates collected by ~~Dominion Energy and Virginia Power~~the Companies and regulated gas distribution, transportation and storage rates ~~including LNG storage,~~ collected by Dominion ~~Energy and Dominion Energy Gas;~~Energy;

•	Changes in rules for RTOs and ISOs in which ~~Dominion Energy and Virginia Power~~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 ~~and Dominion Energy Gas share~~shares ownership with third parties, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and ~~Dominion Energy Gas and~~ third party participants and difficulties in exiting these arrangements;

•	Changes in future levels of domestic and international natural gas production, supply or consumption;

•	~~Fluctuations~~Impacts to Dominion Energy’s noncontrolling interest in Cove Point from fluctuations in future volumes of LNG imports or exports from the U.S. and other countries worldwide or demand for, purchases of, and prices related to natural gas or LNG;

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

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

•	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 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 merchant 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 ~~Dominion Energy and Virginia Power’s~~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 and Dominion Energy Gas’~~Energy’s pipeline ~~systems,~~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 completion of the Q-Pipe Transaction, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such regulatory approvals;

•	Adverse outcomes in litigation matters or regulatory proceedings, including matters acquired in the SCANA Combination;

•	Counterparty credit and performance risk;

•	Fluctuations in the value of investments held in nuclear decommissioning trusts by ~~Dominion Energy and Virginia Power~~the Companies and in benefit plan trusts by Dominion ~~Energy and Dominion Energy Gas;~~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 or foreign currency exchange~~ 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 inflation and deflation;

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

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

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019 and Part II. Item 1A. Risk Factors in this report.~~2020.

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

Accounting Matters

Critical Accounting Policies and Estimates

As of March 31, ~~2020,~~2021, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of ~~goodwill,~~estimates in long-lived ~~assets~~asset and equity method ~~investments~~investment impairment testing and employee benefit plans.

Dominion Energy

Results of Operations

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


	2020			2019			$ Change		2021		2020			$ Change
(millions, except EPS)
First Quarter
Net loss attributable to Dominion Energy	$	(270	)	$	(680	)	$	410
Net income (loss) attributable to Dominion Energy									$	1,008	$	(270	)	$	1,278
Diluted EPS		(0.34	)		(0.86	)		0.52		1.23		(0.34	)		1.57

Overview

First Quarter ~~2020~~2021 vs. ~~2019~~2020

Net ~~loss~~income attributable to Dominion Energy ~~decreased 60%,~~increased $1.3 billion, primarily due to the absence of charges for refunds of amounts previously collected from retail electric customers of DESC for the NND Project and for certain regulatory assets and property, plant and equipment acquired in the SCANA Combination for which Dominion Energy committedrelated to ~~forgo recovery, a decrease in charges associated with litigation acquired in the SCANA Combination and the absence of charges for~~ the planned early ~~retirement~~retirements of certain electric generation facilities in Virginia, ~~Power automated meter reading infrastructure. These decreases were partially offset by a decrease~~an increase in net investment earnings on nuclear decommissioning trust funds and an increase in ~~charges~~net unrealized earnings associated with ~~the planned early retirements of certain electric generation facilities in Virginia.~~freestanding interest rate derivatives.

Analysis of Consolidated Operations

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

	First Quarter								First Quarter
	2020			2019		$ Change			2021		2020			$ Change
(millions)
Operating revenue	$	4,496		$	3,858	$	638		$	3,870	$	3,938		$	(68	)
Electric fuel and other energy-related purchases		668			791		(123	)		550		657			(107	)
Purchased electric capacity		2			39		(37	)		11		2			9
Purchased gas		427			730		(303	)		484		434			50
Net revenue		3,399			2,298		1,101
Other operations and maintenance		1,043			1,002		41			987		891			96
Depreciation, depletion and amortization		673			651		22			608		578			30
Other taxes		284			292		(8	)		257		240			17
Impairment of assets and other charges		768			835		(67	)		95		768			(673	)
Other income (expense)		(399	)		388		(787	)		367		(454	)		821
Interest and related charges		490			469		21			53		432			(379	)
Income tax expense (benefit)		(19	)		114		(133	)		212		(50	)		262
Net income from discontinued operations including noncontrolling interests										28		229			(201	)
Noncontrolling interests		31			3		28			—		31			(31	)

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

First Quarter ~~2020~~2021 vs. ~~2019~~2020

~~Net~~Operating revenue ~~increased 48%~~decreased 2%, primarily reflecting:

•	~~The absence of a~~ ~~$1.0 billion charge for refunds of amounts previously collected~~A $151 million decrease from ~~retail electric customers of DESC for the NND Project;~~an unbilled revenue reduction at Virginia Power;

•	A ~~$128~~$51 million ~~increase from Virginia Power rate adjustment clauses;~~decrease due to unfavorable pricing at Millstone;

•	A ~~$32~~$31 million decrease as a result of the contribution of certain nonregulated natural gas retail energy contracts to Wrangler; and

•	A $17 million decrease in PJM off-system sales.

These decreases were partially offset by:

•	A $85 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days;

•	A $71 million increase from Virginia Power ~~electric capacity expense related~~riders;

•

A $42 million net increase in the fuel cost component included in utility rates as a result of a net increase in commodity costs associated with sales to ~~the annual PJM capacity performance market effective June 2019~~gas utility customers ($~~30 million) and a~~ ~~contract termination with a non-utility generator ($13~~88 million) partially offset by ~~the expiration of various contracts~~a net decrease in commodity costs associated with sales to electric utility retail customers ($1146 million); and

•	A ~~$25 million net unrealized gain on freestanding commodity derivatives.~~

~~These increases were partially offset by:~~

•	A ~~$46~~$35 million ~~decrease~~increase from ~~the contribution of SEMI to Wrangler;~~gas utility capital cost riders.

•

Electric fuel and other energy-related purchases decreased 16%, primarily due to lower commodity costs for electric utilities ($49 million), which are offset in operating revenue and do not impact net income, and a decrease in PJM off-system sales ($17 million).

Purchased gas increased 12%, primarily due to an increase in commodity costs for gas utilities ($88 million), which are offset in operating revenue and do not impact net income, partially offset by a decrease as a result of the contribution of certain nonregulated natural gas retail energy contracts to Wrangler ($27 million).

~~A $41 million decrease due to unfavorable pricing at Millstone, including the effects of the Millstone 2019 power purchase agreements; and~~

•	~~A $23 million net decrease in sales to electric retail customers from a net decrease in heating degree days.~~

Other operations and maintenance increased 4%11%, primarily ~~reflecting:~~reflecting an increase in certain Virginia Power expenditures which are primarily recovered through state- and FERC-regulated rates and do not impact net income ($62 million) and an increase in storm damage and restoration costs in Virginia Power’s service territory ($48 million).

•

Depreciation, depletion and amortization increased 5%, primarily due to various projects being placed into service.

~~The absence of a benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019 ($113 million); and~~

•	~~A $39 million increase in certain Virginia Power expenditures, which are primarily recovered through state and FERC rates and do not impact net income; partially offset by~~

•	~~A decrease in merger and integration-related costs associated with the SCANA Combination ($96 million); and~~

•	~~An $18 million decrease in salaries, wages and benefits.~~

Impairment of assets and other charges decreased 888%%, primarily due to the absence of charges associated with litigation acquired in the SCANA Combination ($178 million), the absence of a charge related to Virginia Power’s planned early retirement of certain automated meter reading infrastructure ($160 million) and a decrease in charges for property, plant and equipment acquired in the SCANA Combination for which Dominion Energy committed to forgo recovery ($103 million), partially offset by an increase in charges associated with the planned early retirements of certain electric generation facilities in Virginia ($~~382~~750 million) and a decrease to the CCRO reserve associated with the

2021 Triennial Review ($130 million), partially offset by a charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($76 million), charges associated with litigation acquired in the SCANA Combination ($60 million) and a charge for corporate office lease termination ($71 million).

Other income ~~(expense)decreased $787~~increased $821 million, primarily reflecting net investment ~~losses~~gains in ~~2020~~2021 compared to net investment ~~gains~~losses in ~~2019~~ 2020 on nuclear decommissioning trust funds ($~~792~~671 million), an increase in equity method earnings from Cove Point following closing of the GT&S Transaction ($67 million), an increase in non-service components of pension and other postretirement employee benefit plan credits ($36 million) and the absence of charges associated with litigation acquired in the SCANA Combination ($25 million).

Interest and related charges ~~increased 4%~~decreased 88%, primarily ~~related~~reflecting unrealized gains in 2021 compared to ~~increases~~ ~~for~~ unrealized losses in 2020 associated with freestanding derivatives ($58375 million) and the absence of charges associated with the early redemption of certain securities in the first quarter of 2020 ($~~25 million), partially offset by lower interest expense from early redemptions of certain securities in 2019 ($57~~31 million).

Income tax expense ~~(benefit)~~ ~~decreased~~ increased $262 million~~$133 million,~~ , primarily due to higher pre-tax income.

Net income from discontinued operations including noncontrolling interests decreased 88%, primarily due to the ~~absence~~closing of ~~a charge for certain income tax-related regulatory assets acquired~~the GT&S Transaction in ~~the SCANA Combination for which Dominion Energy committed to forgo recovery ($198 million), partially offset by a lower pre-tax loss ($60 million).~~November 2020.

Noncontrolling interests ~~increased~~decreased $2831 million, primarily due to the ~~sale~~closing of ~~a 25% noncontrolling limited partnership interest~~the GT&S Transaction in ~~Cove Point to Brookfield in December 2019.~~November 2020.

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. In ~~December 2019,~~September 2020, Dominion Energy ~~realigned~~updated its operating segments ~~which resulted in~~following the ~~formation~~July 2020 agreement to sell substantially all of ~~five primary operating segments.~~its gas transmission and storage operations to BHE. The historical information presented herein has been recast to reflect the current segment presentation. Presented below is a summary of contributions by Dominion Energy’s operating segments to net ~~loss~~income (loss) attributable to Dominion Energy:

	Net Income (Loss) Attributable to Dominion Energy									Diluted EPS									Net Income (Loss) Attributable to Dominion Energy							Diluted EPS
	2020			2019			$ Change			2020			2019			$ Change			2021		2020			$ Change		2021		2020			$ Change
(millions, except EPS)
First Quarter
Dominion Energy Virginia	$	429		$	361		$	68		$	0.51		$	0.45		$	0.06		$	434	$	429		$	5	$	0.54	$	0.51		$	0.03
Gas Transmission & Storage		221			222			(1	)		0.26			0.28			(0.02	)
Gas Distribution		225			205			20			0.27			0.26			0.01			251		224			27		0.31		0.27			0.04
Dominion Energy South Carolina		94			71			23			0.11			0.09			0.02			102		94			8		0.13		0.11			0.02
Contracted Generation		59			102			(43	)		0.07			0.13			(0.06	)
Contracted Assets																				150		111			39		0.18		0.13			0.05
Corporate and Other		(1,298	)		(1,641	)		343			(1.56	)		(2.07	)		0.51			71		(1,128	)		1,199		0.07		(1.36	)		1.43
Consolidated	$	(270	)	$	(680	)	$	410		$	(0.34	)	$	(0.86	)	$	0.52		$	1,008	$	(270	)	$	1,278	$	1.23	$	(0.34	)	$	1.57

Dominion Energy Virginia

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

	First Quarter							First Quarter
	2020		2019		% Change			2021		2020		% Change
Electricity delivered (million MWh)		20.8		21.8		(5	)%		21.7		20.8		4	%
Electricity supplied (million MWh):
Utility		22.4		21.9		2			21.9		22.3		(2	)
Non-Jurisdictional									0.2		0.1		100
Degree days (electric distribution and utility service area):
Cooling		14		5		180			11		14		(21	)
Heating		1,518		1,892		(20	)		1,889		1,518		24
Average electric distribution customer accounts (thousands)		2,647		2,617		1			2,684		2,647		1

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

	First Quarter 2020 vs. 2019 Increase (Decrease)						First Quarter 2021 vs. 2020 Increase (Decrease)
	Amount			EPS			Amount			EPS
(millions, except EPS)
Regulated electric sales:
Weather	$	(26	)	$	(0.03	)	$	51		$	0.06
Other		4			—			(1	)		—
Rate adjustment clause equity return		23			0.03
Electric capacity		24			0.03			(5	)		(0.01	)
Depreciation and amortization		12			0.02			(6	)		(0.01	)
Renewable energy investment tax credits		29			0.04			(32	)		(0.03	)
Other		2			—			(2	)		—
Share dilution		—			(0.03	)
Share accretion								—			0.02
Change in net income contribution	$	68		$	0.06		$	5		$	0.03

Gas ~~Transmission & Storage~~

~~Presented below are selected operating statistics related to Gas Transmission & Storage’s operations:~~

First Quarter

2020

2019

% Change

Average retail energy marketing customer accounts⁽¹⁾
(thousands)

398

799

(50
)%

~~(1)~~

~~Excludes accounts held by equity method investees.~~

~~Presented below, on an after-tax basis, are the key factors impacting Gas Transmission & Storage’s net income contribution:~~

First Quarter
2020 vs. 2019
Increase (Decrease)

Amount

EPS

(millions, except EPS)

Noncontrolling interest

$
(20
)

$
(0.02
)
Contribution to Wrangler

(17
)

(0.02
)
Atlantic Coast Pipeline equity earnings

8

0.01

Interest expense, net

26

0.03

Other

2

—

Share dilution

—

(0.02
)
Change in net income contribution

$
(1
)

$
(0.02
)

~~Gas~~ Distribution

Presented below are selected operating statistics related to Gas Distribution’s operations:

	First Quarter							First Quarter
	2020		2019		% Change			2021		2020		% Change
Gas distribution throughput (bcf):
Sales		80		88		(9	%)		86		80		8	%
Transportation		250		240		4			273		250		9
Heating degree days (gas distribution service area):
North Carolina		1,334		1,656		(19	)		1,692		1,334		27
Ohio and West Virginia		2,442		2,915		(16	)		2,758		2,442		13
Utah, Wyoming and Idaho		2,332		2,570		(9	)		2,398		2,332		3
Average gas distribution customer accounts (thousands):
Sales		1,891		1,853		2			1,922		1,891		2
Transportation		1,115		1,111		—			1,137		1,115		2

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

	First Quarter 2020 vs. 2019 Increase (Decrease)						First Quarter 2021 vs. 2020 Increase (Decrease)
	Amount			EPS			Amount		EPS
(millions, except EPS)
Regulated gas sales:
Weather	$	(5	)	$	—		$	4	$	0.01
Other		11			0.01			3		—
Rate adjustment clause equity return		2			—
Rider equity return								11		0.01
Interest expense, net		6			0.01			9		0.01
Other		6			0.01
Share dilution		—			(0.02	)
Share accretion								—		0.01
Change in net income contribution	$	20		$	0.01		$	27	$	0.04

Dominion Energy South Carolina

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

	First Quarter							First Quarter
	2020		2019		% Change			2021		2020		% Change
Electricity delivered (million MWh)		5.1		5.1		—	%		5.3		5.1		4	%
Electricity supplied (million MWh)		5.3		5.2		2			5.6		5.3		6
Degree days (electric distribution service areas):
Cooling		5		—		100			1		5		(80	)
Heating		578		660		(12	)		786		578		36
Average electric distribution customer accounts (thousands)		746		734		2			761		746		2
Gas distribution throughput (bcf):
Sales		19		18		6			20		19		5
Average gas distribution customer accounts (thousands)		394		382		3			408		394		4

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

	First Quarter 2020 vs. 2019 Increase (Decrease)					First Quarter 2021 vs. 2020 Increase (Decrease)
	Amount			EPS		Amount			EPS
(millions, except EPS)
Regulated electric sales:
Weather	$	9		$	0.01	$	13		$	0.02
Other		5			—		(4	)		—
Regulated gas sales		4			—		4			—
Interest expense, net		8			0.01
Other		(3	)		—		(5	)		(0.01	)
Share dilution		—			—
Share accretion							—			0.01
Change in net income contribution	$	23		$	0.02	$	8		$	0.02

Contracted ~~Generation~~Assets

Presented below are selected operating statistics related to Contracted ~~Generation’s~~Asset’s operations:

First Quarter

2020

2019

% Change

Electricity supplied (million MWh)

5.3

5.2

2
%

	First Quarter
	2021		2020		% Change
Electricity supplied (million MWh)		5.1		5.3		(4	%)

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

	First Quarter 2020 vs. 2019 Increase (Decrease)						First Quarter 2021 vs. 2020 Increase (Decrease)
	Amount			EPS			Amount		EPS
(millions, except EPS)
Margin	$	(44	)	$	(0.06	)
Interest expense, net		4			—
Renewable energy investment tax credits							$	29	$	0.03
Absence of contract associated with Fowler Ridge								5		0.01
Other		(3	)		—			5		—
Share dilution		—			—
Share accretion								—		0.01
Change in net income contribution	$	(43	)	$	(0.06	)	$	39	$	0.05

Corporate and Other

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

	First Quarter									First Quarter
	2020			2019			$ Change			2021			2020			$ Change
(millions, except EPS)
Specific items attributable to operating segments	$	(1,031	)	$	(1,335	)	$	304		$	(87	)	$	(1,004	)	$	917
Specific items attributable to Corporate and Other segment		(170	)		(218	)		48			202			(54	)		256
Total specific items		(1,201	)		(1,553	)		352			115			(1,058	)		1,173
Other corporate operations⁽¹⁾		(97	)		(88	)		(9	)
Other corporate operations:
Interest expense, net											(111	)		(92	)		(19	)
Other											67			22			45
Total other corporate operations											(44	)		(70	)		26
Total net income (expense)	$	(1,298	)	$	(1,641	)	$	343		$	71		$	(1,128	)	$	1,199
EPS impact	$	(1.56	)	$	(2.07	)	$	0.51		$	0.07		$	(1.36	)	$	1.43

~~(1)~~

~~Primarily consists of net interest expense.~~

Total Specific Items

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or in allocating resources. See Note 21 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. In 2021, this primarily included a $234 million after-tax benefit for derivative mark-to-market changes, a $53 million after-tax charge for corporate office lease termination associated with workplace realignment and a $28 million after-tax benefit for discontinued operations, primarily associated with the Q-Pipe Transaction. In 2020, other than the effects of required interim period provision for income taxes, this primarily included a $145 million after-tax benefit for discontinued operations, primarily associated with the GT&S and Q-Pipe Transactions, $41 million of after-tax charges for merger and integration-related costs associated with the SCANA Combination, $30 million of after-tax charges for derivative mark-to-market changes and $23 million of after-tax charges associated with the early redemption of certain debt securities.

Virginia Power

Results of Operations

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

	First Quarter								First Quarter
	2020			2019		$ Change			2021		2020			$ Change
(millions)
Net income (loss)	$	(280	)	$	20	$	(300	)	$	374	$	(280	)	$	654

Overview

First Quarter ~~2020~~2021 vs. ~~2019~~2020

Net income ~~decreased $300~~increased $654 million, primarily due to ~~an increase in~~the absence of charges related to the planned early retirements of certain electric generation facilities. ~~This decrease was partially offset by the absence of a charge related to the planned early retirement of certain automated meter reading infrastructure.~~

Analysis of Consolidated Operations

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

	First Quarter								First Quarter
	2020			2019		$ Change			2021			2020			$ Change
(millions)
Operating revenue	$	1,930		$	1,965	$	(35	)	$	1,830		$	1,930		$	(100	)
Electric fuel and other energy-related purchases		492			596		(104	)		406			492			(86	)
Purchased (excess) electric capacity		(9	)		33		(42	)
Net revenue		1,447			1,336		111
Excess electric capacity										(3	)		(9	)		6
Other operations and maintenance		418			279		139			513			418			95
Depreciation and amortization		311			304		7			324			311			13
Other taxes		87			85		2			93			87			6
Impairment of assets and other charges		764			546		218
Impairment of assets and other charges (benefit)										(51	)		764			(815	)
Other income (expense)		(52	)		37		(89	)		32			(52	)		84
Interest and related charges		126			135		(9	)		136			126			10
Income tax expense (benefit)		(31	)		4		(35	)		70			(31	)		101

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

First Quarter ~~2020~~2021 vs. ~~2019~~2020

~~Net~~Operating revenue~~increased 8%~~ decreased 5%, primarily reflecting:

•	A ~~$128~~$151 million ~~increase~~decrease from ~~rate adjustment clauses;~~an unbilled revenue reduction;

•	A $74 million decrease in the fuel cost component included in utility rates as a result of a net decrease in commodity costs associated with sales to electric utility retail customers; and

•

A $32$17 million decrease in ~~electric capacity expense related to the annual~~ PJM capacity performance market effective June 2019; ($30 million) and a contract termination with a non-utility generator ($13 million) partially offset by the expiration of various contracts ($11 million);off-system sales; partially offset by

•	A ~~$35~~$71 million ~~decrease~~increase from riders; and

•	A $68 million increase in sales to retail customers, primarily due to ~~a decrease~~an increase in heating degree days.

Electric fuel and other energy-related purchases decreased 17%, primarily due to lower commodity costs for electric utilities ($74 million), which are offset in operating revenue and do not impact net income, and a decrease in PJM off-system sales ($17 million).

Other operations and maintenance increased ~~50%~~23%, primarily reflecting ~~the absence of a benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019 ($113 million) and a $39 million~~an increase in certain expenses which are primarily recovered through ~~state~~state- and ~~FERC~~FERC-regulated rates and do not impact net ~~income.~~income ($62 million) and an increase in storm damage and service restoration costs in its service territory ($48 million), partially offset by a reduction in bad debt expense due to the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($10 million).

Depreciation and amortization increased 2%4%, primarily due to various projects being placed into service ($1419 million), partially offset by ~~an $8 million decrease~~ ~~reflecting~~the ~~expected approval~~absence of ~~the nuclear plant life extensions~~depreciation from ~~the NRC.~~certain electric generation facilities that were, or have committed to be, retired early ($11 million).

Impairment of assets and other charges ~~increased 40%,~~decreased $815 million, primarily due to ~~an increase in~~the absence of charges associated with the planned early retirements of certain electric generation facilities ($~~382~~750 million) and a decrease to the CCRO reserve associated with the 2021 Triennial Review ($130 million), partially offset by ~~the absence of~~ a charge ~~related~~for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to ~~the planned early retirement of certain automated meter reading infrastructure~~Virginia’s 2021 budget process ($~~160~~76 million).

Other income ~~(expense)~~ ~~decreased $89~~increased $84 million, primarily reflectingnet investment gains in 2021 compared to net investment losses in 2020 ~~compared to net investment gains in 2019~~ on nuclear decommissioning trust ~~funds.~~funds.

Income tax expense ~~(benefit)~~ ~~decreased $35 million, primarily due to lower pre-tax income.~~

~~Dominion Energy Gas~~

~~Results of Operations~~

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

First Quarter

2020

2019

$ Change

(millions)

Net income attributable to Dominion Energy Gas

$
169

$
190

$
(21
)

~~Overview~~

~~First Quarter 2020 vs. 2019~~

Net income attributable to Dominion Energy Gas decreased 11%, primarily due to the absence of net income from discontinued operations related to the Dominion Energy Gas Restructuring, partially offset by a decrease in interest and related charges from lower outstanding debt balances.

~~Analysis of Consolidated Operations~~

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

First Quarter

2020

2019

$ Change

(millions)

Operating revenue

$
556

$
566

$
(10
)
Purchased gas

8

12

(4
)
Other energy-related purchases

—

1

(1
)
Net revenue

548

553

(5
)
Other operations and maintenance

165

176

(11
)
Depreciation and amortization

93

91

2

Other taxes

42

39

3

Earnings from equity method investees

15

13

2

Other income

49

42

7

Interest and related charges

58

87

(29
)
Income tax expense

52

43

9

Net income from discontinued operations

—

54

(54
)
Noncontrolling interests

33

36

(3
)

~~An analysis of Dominion Energy Gas’ results of operations follows:~~

~~First Quarter 2020 vs. 2019~~

~~Net revenue~~ ~~decreased 1%, primarily reflecting:~~

•	~~An $11 million decrease in services performed for Atlantic Coast Pipeline; partially offset by~~

•	~~A $3 million increase due to DETI contract changes.~~

~~Other operations and maintenance~~ ~~decreased 6% primarily due to a decrease in services performed for Atlantic Coast Pipeline. These expenses are billed to Atlantic Coast Pipeline and do not significantly impact net income.~~

~~Other income~~ increased 17%, primarily due to a $3 million increase in non-service components of pension and other postretirement employee benefit credits and a $2 million net increase in interest income from affiliated promissory note receivables.

~~Interest and related charges~~ ~~decreased 33%,~~ primarily due to the absence of interest expense from Cove Point’s term loan borrowings ($36 million), partially offset by interest expense on Dominion Energy Gas’ November 2019 senior note issuance ($7 million).

~~Income tax expense~~ increased ~~21%,~~$101 million, primarily due to higher pre-tax income.

Liquidity and Capital Resources

Dominion Energy depends on both internal and external sources of liquidity to provide working capital and as a bridge to long-term debt financings. Short-term cash requirements not met by cash provided by operations are generally satisfied with proceeds from short-term borrowings. Long-term cash needs are met through issuances of debt and/or equity securities.

At March 31, ~~2020,~~2021, Dominion Energy had ~~$3.8~~$3.4 billion of unused capacity under its joint revolving credit facility. ~~In addition, Dominion Energy had $900 million available under a 364-Day Revolving Credit Agreement entered into March 2020.~~

As part of its strategic response to COVID-19, Dominion Energy undertook certain measures in March and April 2020 to buttress its liquidity position. This includes entering the $900 million 364-Day Revolving Credit Agreement, which has the potential for an additional $300 million of capacity upon certain events, and under which Dominion Energy has borrowed $225 million. In addition, Dominion Energy borrowed $1.1 billion under two 364-Day Term Loan Credit Agreements and issued $2.3 billion of senior notes. See Note 16 to the Consolidated Financial Statements for more information.

A summary of Dominion Energy’s cash flows is presented below:

	2020			2019			2021			2020
(millions)
Cash, restricted cash and equivalents at January 1	$	269		$	391		$	247		$	269
Cash flows provided by (used in):
Operating activities		1,633			1,171
Investing activities		(1,641	)		(552	)
Financing activities		1,006			(383	)
Operating activities⁽¹⁾								1,452			1,633
Investing activities⁽²⁾								(2,308	)		(1,641	)
Financing activities⁽³⁾								1,171			1,006
Net increase in cash, restricted cash and equivalents		998			236			315			998
Cash, restricted cash and equivalents at March 31	$	1,267		$	627		$	562		$	1,267

(1)	Includes $(12) million and $413 million related to discontinued operations for 2021 and 2020, respectively.

(2)	Includes $(968) million and $(268) million related to discontinued operations for 2021 and 2020, respectively.

(3)	Includes $(69) million related to discontinued operations for 2020 and no amounts for 2021.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities decreased $181 million, including a $425 million decrease from discontinued operations. Net cash provided by continuing operations increased ~~$462 million,~~ primarily due to ~~higher deferred fuel cost recoveries, lower~~a decrease in cash paid for interest, a distribution from Cove Point, the absence of payments ~~for property taxes~~related to a voluntary retirement program and net changes in working capital ~~items.~~items, partially offset by lower deferred fuel cost recoveries.

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares.

Dominion Energy’s operations are subject to risks and uncertainties that may negatively impact the timing or amounts of operating cash flows, which are discussed in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019 and Part II. Item 1A. Risk Factors in this report.~~2020.

Credit Risk

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure as of March 31, ~~2020~~2021 for these activities. Gross credit exposure for each counterparty is calculated prior to the application of collateral and represents outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

	Gross Credit Exposure		Credit Collateral		Net Credit Exposure		Gross Credit Exposure		Credit Collateral		Net Credit Exposure
(millions)
Investment grade⁽¹⁾	$	91	$	—	$	91
Non-investment grade⁽²⁾		3		—		3
Investment grade⁽¹⁾							$	52	$	—	$	52
Non-investment grade⁽²⁾								2		—		2
No external ratings:
Internally rated—investment grade⁽³⁾		71		—		71
Internally rated—non-investment grade⁽⁴⁾		7		—		7
Total⁽⁵⁾	$	172	$	—	$	172
Internally rated—investment grade⁽³⁾								60		4		56
Internally rated—non-investment grade⁽⁴⁾								14		—		14
Total⁽⁵⁾							$	128	$	4	$	124

(1)	Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately ~~34%~~41% of the total net credit exposure.

(2)	The five largest counterparty exposures, combined, for this category represented ~~approximately~~less than 2% of the total net credit exposure.

(3)	The five largest counterparty exposures, combined, for this category represented approximately ~~40%~~25% of the total net credit exposure.

(4)	The five largest counterparty exposures, combined, for this category represented approximately 2%3% of the total net credit exposure.

~~(5)~~

(5) Excludes the Millstone 2019 power purchase agreements.

~~Excludes the Millstone 2019 power purchase agreements.~~

Investing Cash Flows

Net cash used in Dominion Energy’s investing activities increased ~~$1.1 billion,~~$667 million, primarily due to an increase in contributions to equity method affiliates including Atlantic Coast Pipeline, partially offset by a decrease in plant construction and other property additions and the absence of ~~cash acquired in the SCANA Combination and~~ the acquisitions of Pivotal LNG, Inc. and an additional interest in Atlantic ~~Coast~~Coat Pipeline.

Financing Cash Flows and Liquidity

Dominion Energy relies on capital markets as significant sources of funding for capital requirements not satisfied by cash provided by its operations. As discussed further in Credit Ratings and Debt Covenants in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, the ability to borrow funds or issue securities and the return demanded by investors are affected by credit ratings. In addition, the raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

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

Net cash provided by Dominion Energy's financing activities ~~was $1.0 billion for the three months ended March 31, 2020, compared to net cash used by financing activities of $383~~increased $165 million ~~for the three months ended March 31, 2019,~~ primarily due to lower ~~repayments~~common stock dividend payments and higher net issuances of ~~long-term debt.~~short-term debt, partially offset by repayment of the 364-day revolving supplemental credit facility borrowings.

~~In November 2017,~~

Dominion Energy ~~filed~~has an ~~SEC~~effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability Investment^SM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. ~~The balance as of~~At March 31, 2021 and December 31, 2020, ~~was $119 million. The notes are short-term debt obligations on~~ Dominion Energy’s Consolidated Balance ~~Sheets.~~Sheets include $338 million and $268 million, respectively, with respect to such notes presented within short-term debt. The proceeds ~~will be~~are used for general corporate purposes and to repay debt.

See Note 16 to the Consolidated Financial Statements in this report for further information regarding Dominion Energy’s credit facilities, liquidity and significant financing transactions.

Credit Ratings

Credit ratings are intended to provide banks and capital market participants with a framework for comparing the credit quality of securities and are not a recommendation to buy, sell or hold securities. In the Credit Ratings section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, there is a discussion on the use of capital markets by Dominion Energy as well as the impact of credit ratings on the accessibility and costs of using these markets. As of March 31, ~~2020,~~2021, there have been no changes in Dominion Energy’s credit ratings.

Debt Covenants

In the Debt Covenants section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, there is a discussion on the various covenants present in the enabling agreements underlying Dominion Energy’s debt. In addition, see Note 16 to the Consolidated Financial Statements in this report for a description of certain financial covenants associated with term loan and revolving credit agreements entered into in the first quarter of 2020. As of March 31, ~~2020,~~2021, there have been no material changes to debt covenants, nor any events of default under Dominion Energy’s debt covenants.

Subsidiary Dividend Restrictions

As of March 31, 2021, there have been no material changes to the subsidiary dividend restrictions disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020.

Future Cash Payments for Contractual Obligations and Planned Capital Expenditures

As of March 31, ~~2020,~~2021, there have been no material changes outside the ordinary course of business to Dominion Energy’s contractual obligations nor any material changes to planned capital expenditures as disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

Use of Off-Balance Sheet Arrangements

As of March 31, ~~2020,~~2021, there have been no material changes to the off-balance sheet arrangements disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020, with the exception of the following matter.

Future Issues and Other Matters

The following discussion of future issues and other information includes current developments of previously disclosed matters and new issues arising during the period covered by, and subsequent to, the dates of Dominion Energy’s Consolidated Financial Statements that may impact future results of operations, financial condition and/or cash flows. This section should be read in conjunction with Item 1. Business and Future Issues and Other Matters in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 and Note 17 to the Consolidated Financial Statements in this report.

Environmental Matters

Dominion Energy is subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations. See Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020 and Note 17 to the Consolidated Financial Statements in this report for additional information on various environmental matters.

Legal Matters

See Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 and Notes 13 and 17 to the Consolidated Financial Statements and Item 1. Legal Proceedings in this report for additional information on various legal matters.

Regulatory Matters

See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 and Note 13 to the Consolidated Financial Statements in this report for additional information on various regulatory matters.

~~Atlantic Coast Pipeline~~Future Environmental Regulations

State Actions Related to Air and GHG Emissions

In ~~September 2014, Dominion Energy, along with Duke~~October 2020, the EPA published a proposal to revise the 2016 Cross-State Air Pollution Rule Update to address interstate air quality impacts for the 2008 ozone National Ambient Air Quality Standards. In April 2021, the EPA published the final rule update, which will become effective in June 2021. The EPA’s final rule affects 12 states including Virginia and ~~Southern, announced the formation of Atlantic Coast Pipeline. Atlantic Coast Pipeline is focused on constructing an approximately 600-mile natural gas pipeline running from~~ West Virginia through Virginia to North Carolina. Atlantic Coast Pipeline has continued to experience delays in obtaining and/or maintaining permits necessary for construction along with construction delays due to judicial actions. In February 2020, the Supreme Courtand amends existing NO_X ozone season emission budgets. The EPA requires implementation of the U.S. heard oral arguments in Atlantic Coast Pipeline’s case regarding the Appalachian Trail crossing and is expected to issue a ruling by June 2020. If a favorable ruling is not received, Atlantic Coast Pipeline is also evaluating possible legislative and administrative remedies to this issue. Given the legal challenges, the project is expected to enter full in-service in early 2022, with project costs estimated to be approximately $8 billion, excluding financing costs. Atlantic Coast Pipeline has reached agreements in principle with major customers to amend the contracted rate to share in certain delay cost increases, pending certain regulatory~~approvals. Project construction activities, schedules andcosts are~~subject to uncertainty due to permitting and/or work delays (including due to judicial or regulatory action), abnormal weather and other conditions that could result in cost or schedule modifications in the future, a suspension of AFUDC for Atlantic Coast Pipeline and/or impairment charges potentially material to Dominion Energy’s cash flows, financial position and/or results of operations. See Note 10 to the Consolidated Financial Statements in this report for more information.

~~NWP 12 Permitting~~

In April 2020, the U.S. District Court for the District of Montana issued an order vacating an NWP 12 issued by the Army Corps of Engineers and remanding the permit back to the Army Corps of Engineers for consultation under the Endangered Species Act. In 2017, the Army Corps of Engineers issued an NWP 12 authorizing discharges related to construction projects into waters of the U.S. The court concluded that the issuance of the NWP 12 was unlawful because the Army Corps of Engineers did not consult under the Endangered Species Actrevised emission budgets beginning with the U.S Fish and Wildlife Service and/or National Marine Fisheries Service. The court also enjoined the Army Corps of Engineers from authorizing any dredge or fill activities under NWP 12. Following the court’s ruling, the Army Corps of Engineers suspended the NWP 12. Also in April 2020, the U.S. Department of Justice, along with other defendants, filed a motion to stay the portions of the court’s order that vacated NWP 12 and enjoined the Army Corps of Engineers from authorizing any dredge or fill activities under NWP 12. Defendants also filed a motion to expedite briefing and consideration of such request for stay to no later than May 2020 and indicated that they intended to file an appeal in the U.S. Court of Appeals for the Ninth Circuit immediately following the court’s determination.

The court’s order has significant near-term implications for all U.S. utilities, including electric, gas, water and communications, that are constructing projects requiring discharges into waters of the U.S. Because NWP 12 has been suspended, the Army Corps of Engineers may decline to verify future construction activities submitted under NWP 12 pending further court action. As Dominion Energy relies on NWP 12 for many of its energy infrastructure projects, as well as the Atlantic Coast Pipeline Project, the court’s ruling has the potential for causing a significant delay in construction schedules. While Dominion Energy expects that the court’s decision will be challenged by the federal defendants in that case, at this time Dominion Energy cannot predict the timing or outcome of such proceedings.

~~Significant Contracted Generation Investment~~

In May 2020, Dominion Energy announced it is leading a consortium of offshore wind energy industry participants in pursuing the development of a Jones Act compliant offshore wind installation vessel. This vessel will be designed to handle current turbine technologies as well as next generation turbine sizes of 12 MW or larger. The vessel will be funded by the consortium participants including Dominion Energy, based on its proportional share of equity interest in the project which is still to be finalized, and is expected to enter service in 2023 and operate for several years under contracts with multiple major U.S. offshore wind developers.

~~COVID-19~~

Dominion Energy is monitoring the global outbreak of COVID-19 and taking steps to mitigate the potential risks to Dominion Energy posed by the spread of the virus. Dominion Energy provides a critical service to its customers which means that it is paramount that Dominion Energy keeps its employees who operate its businesses safe and informed. For example,2021 ozone season (May 1 through September 30, 2021). Dominion Energy has ~~taken precautions with regard to employee and facility hygiene, imposed travel limitations on employees, directed~~ employees to work remotely whenever possible and expanded health and paid time off benefits for employees. Additional protocols are being implemented for required work within customer premises to protect Dominion Energy’s employees, such customers and the public. In addition, Dominion Energy has assessed and updated its existing business continuity plans for its business units in the contextcompleted an evaluation of ~~this pandemic. Dominion Energy is also working with suppliers to understand~~ the potential impacts ~~to its supply chain; however, at this time, no~~of the final rule and expects that any impact would not be material risks to Dominion Energy’s supply chain have been identified. This is a rapidly evolving situation, and Dominion Energy will continue to monitor developments affecting its workforce, suppliers and other aspects of its business, such as construction projects, and will take additional precautions as Dominion Energy believes are warranted. In addition, Dominion Energy continues to monitor both customer demand and its ability to collect customer receivables. . While Dominion Energy currently does not expect a material impact to its results of operations, financial condition and/or cash flows.

Coastal Virginia Offshore Wind Commercial Project

In September 2019, Virginia Power filed applications with PJM for the Coastal Virginia Offshore Wind Commercial project to interconnect 2,640 MW of wind energy off the coast of Virginia adjacent to the Coastal Virginia Offshore Wind Pilot project. The project is expected to be placed in service by the end of 2026 with preliminary cost estimates from late 2019 of approximately $8 billion. Throughout project development, certain planning inputs and assumptions may vary from initial and preliminary estimates. During 2021, inflationary pressure on certain raw materials including steel have been observed which may impact project costs. In addition, Virginia Power has moved into the ~~impacts~~detailed design phase for the project’s onshore electric transmission facilities including final route selection with consideration given for resiliency and minimizing environmental impacts. Although total costs for this component cannot be more precisely estimated until a final route is selected, these design factors will likely result in an increase in costs. While certain cost inputs may increase, further evaluation of turbine design and wind resource in addition to the performance to-date of the ~~COVID-19 pandemic on~~Coastal Virginia Offshore Wind Pilot project, is likely to result in a revised assumption of higher lifetime capacity factors which is expected to mitigate potential increases in development costs such that there is no expected change to Virginia Power’s preliminary estimate for the project’s projected levelized cost of energy. Virginia Power expects to file with the Virginia Commission a request for CPCN and related rider, which filing will include an updated cost estimate for the project, by the end of 2021.

Dominion Energy Virginia – Nuclear Operating Licenses

In 2018, Virginia Power applied for renewal of its ~~operations,~~operating licenses for an additional 20 years for the ~~ultimate impacts on its results of operations, financial position and/or cash flows could be material based on~~two nuclear units at Surry. In May 2021, the ~~ultimate duration of~~NRC approved Virginia Power’s application, allowing the ~~pandemic~~units to generate electricity through 2052 and ~~the related economic recovery.~~2053.

ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

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

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates and equity security prices as described below. Commodity price risk is present in ~~Dominion Energy and Virginia Power’s~~the Companies’ electric operations and Dominion ~~Energy and Dominion Energy Gas’~~Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities.

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

Commodity Price Risk

To manage price risk, ~~Dominion Energy and Virginia Power~~the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products. Dominion Energy Gas’ operations are contracted primarily under long-term fixed reservation agreements. Accordingly, management believes that Dominion Energy Gas is not subject to material commodity price risk.

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

A hypothetical 10% increase in commodity prices would have resulted in a decrease in fair value of $15 million of Dominion Energy’s commodity-based derivative instruments as of March 31, 2021. A hypothetical 10% decrease in commodity prices would have resulted in a decrease in fair value of ~~$46 million and $50~~$2 million of Dominion Energy’s commodity-based derivative instruments as of ~~March 31, 2020 and~~ December 31, ~~2019, respectively.~~2020.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease in fair value of ~~$44~~$26 million and ~~$54~~$35 million of Virginia Power’s commodity-based derivative instruments as of March 31, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

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

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. They also enter into interest rate sensitive derivatives, including interest rate swaps and interest rate lock agreements. For variable rate debt outstanding for Dominion Energy and Virginia Power, ~~and Dominion Energy Gas,~~ a hypothetical 10% increase in market interest rates would not have resulted in a material change in earnings at March 31, ~~2020~~2021 or December 31, ~~2019.~~2020.

The Companies also use interest rate derivatives, including forward-starting swaps, ~~as hedges of forecasted~~ interest ~~payments.~~rate swaps and interest rate block agreements to manage interest rate risk. As of March 31, ~~2020,~~2021, Dominion Energy and Virginia Power ~~and Dominion Energy Gas~~ had ~~$8.0 billion, $2.1~~$6.7 billion and ~~$1.3~~$2.1 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$84 million, $49~~$177 million and $8$100 million, respectively, in the fair value of Dominion Energy and Virginia Power ~~and Dominion Energy Gas’~~ interest rate derivatives at March 31, ~~2020.~~2021. As of December 31, ~~2019,~~2020, Dominion Energy and Virginia Power ~~and Dominion Energy Gas~~ had ~~$6.4 billion, $1.9~~$6.9 billion and ~~$1.3~~$2.1 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$135 million, $88~~$124 million and ~~$17~~$75 million, respectively, in the fair value of Dominion Energy and Virginia ~~Power and Dominion Energy Gas’~~Power’s interest rate derivatives at December 31, ~~2019.~~2020.

Dominion Energy Gas holds foreign currency swaps for the purpose of hedging the foreign currency exchange risk associated with Euro denominated debt. At both March 31, 2020 and December 31, 2019, Dominion Energy and Dominion Energy Gas had €250 million in aggregate notional amounts of these foreign currency swaps outstanding. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $5 million in the fair value of Dominion Energy Gas' foreign currency swaps at March 31, 2020 and would not have resulted in a material decrease in the fair value of Dominion Energy Gas’ foreign currency swaps at December 31, 2019.

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

Investment Price Risk

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

Dominion Energy recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $304 million for the three months ended March 31, 2021, net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $876 million for the three months ended March 31, 2020, and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of ~~$448 million for the three months ended March 31, 2019 and $1.0~~$0.7 billion for the year ended December 31, ~~2019.~~2020. Net realized gains and losses include gains and losses from the sale of ~~investments in both 2020 and 2019 as well as any other-than-temporary declines in fair value in 2019 only.~~investments. Dominion Energy recorded in AOCI and regulatory liabilities, a net decrease in unrealized gains on debt investments of $64 million for the three months ended March 31, 2021 and a net increase in unrealized gains on debt investments of ~~$39~~$57 million for the year ended December 31, 2020.

Virginia Power recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $153 million for the three months ended March 31, ~~2019 and $74 million for the year ended December 31, 2019.~~

~~Virginia Power recognized~~2021, net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $412 million for the three months ended March 31, 2020, and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of ~~$202 million for the three months ended March 31, 2019 and $481~~$287 million for the year ended December 31, ~~2019.~~2020. Net realized gains and losses include gains and losses from the sale of ~~investments in both 2020 and 2019 as well as any other-than-temporary declines in fair value in 2019 only.~~investments. Virginia Power recorded in AOCI and regulatory liabilities, a net decrease in unrealized gains on debt investments of $28 million and $1 million for the three months ended March 31, 2021 and 2020, respectively, and ~~recorded~~a net increase in unrealized gains on debt investments of ~~$20 million for the three months ended March 31, 2019 and $30~~$29 million for the year ended December 31, ~~2019.~~2020.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power ~~and Dominion Energy Gas~~ employees participate in these plans. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods. As such, any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for employee benefit plans and will be included in the determination of the amount of cash to be contributed to the employee benefit plans.

ITEM 4. CONTROLS AND PROCEDURES

Senior management of ~~each of~~both Dominion Energy and Virginia Power, ~~and Dominion Energy Gas,~~ including Dominion Energy and Virginia ~~Power and Dominion Energy Gas’~~Power’s CEO and CFO, evaluated the effectiveness of each ~~of their respective~~ company’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, each of Dominion Energy and Virginia ~~Power and Dominion Energy Gas’~~Power’s CEO and CFO have concluded that each ~~of their respective~~ company’s disclosure controls and procedures are effective.

~~There~~In the first quarter of 2021, Dominion Energy completed the integration of SCANA’s systems and processes into Dominion Energy’s framework of internal control over financial reporting. As part of this process, Dominion Energy transitioned SCANA’s financial activity into Dominion Energy’s accounting system. Throughout this integration and system implementation, Dominion Energy appropriately considered internal controls over financial reporting.

Other than with respect to this item for Dominion Energy, there were no changes that occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, Dominion Energy or Virginia ~~Power or Dominion Energy Gas’~~Power’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Companies are ~~alleged~~parties to ~~be in violation~~various legal, environmental or in default under orders, statutes, rules or regulations relating to the environment, compliance plans imposed upon or agreed to by the Companies, or permits issued by various local, state and/or federal agencies for the construction or operation of facilities. Administrativeother regulatory proceedings, ~~may also be pending on these matters. In addition,~~including in the ordinary course of ~~business,~~business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Companies ~~and their subsidiaries are involved in various legal~~reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Companies use a threshold of $1 million for such proceedings.

In March 2018, Virginia Power received a proposed consent order from the VDEQ in connection with alleged CWA permit violations at the Chesterfield power station in 2017. Virginia Power began working cooperatively with both the VDEQ and the EPA to resolve those and certain other alleged violations collectively. In March 2020, Virginia Power finalized a consent decree with the VDEQ and the EPA that would require Virginia Power to pay a $1.4 million civil penalty in connection with various alleged CWA permit and other violations. The consent decree is subject to a 30-day public comment period and is expected to become final and effective in the second or third quarter of 2020.

See the following for discussions on various legal, environmental and other regulatory proceedings to which the Companies are a party, which information is incorporated herein by reference:

•	Notes 13 and 23 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

•	Notes 13 and 17 to the Consolidated Financial Statements in this report.

ITEM 1A. RISK FACTORS

The Companies’ businesses are influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Companies’ control. A number of these risk factors have been identified in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019,~~ 2020,which should be taken into consideration when reviewing the information contained in this ~~report Other than the risk factor discussed below, there~~report. There have been no material changes with regard to the risk factors previously disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. 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 MD&A in this report.

~~Public health crises and epidemics or pandemics, such as COVID-19, could adversely affect the Companies’ business, results of operations, financial condition, liquidity and/or cash flows.~~

The effects of the continued outbreak of the COVID-19 pandemic and related government responses could include extended disruptions to supply chains and capital markets, reduced labor availability and productivity and a prolonged reduction in economic activity. The effects could also have a variety of adverse impacts on the Companies, including reduced demand for energy, particularly from commercial and industrial customers, impairment of goodwill or long-lived assets and diminished ~~ability of the Companies to access funds from financial institutions and capital markets.~~ There is considerable uncertainty regarding the extent to which COVID-19 will spread and the extent and duration of measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns. Such restrictions may cause operational interruptions and delays in construction projects, which, in the case of renewable energy projects, could delay the expected in-service dates of these projects and financial statement impact of the investment tax credits associated with these projects beyond 2020. For the duration of the outbreak of COVID-19, voluntary suspension, or potential legislative or government action, is expected to limit the Companies’ ability to collect on overdue accounts or disconnect services for non-payment, which may cause a decrease in the Companies’ results of operations and cash flows. To the extent the COVID-19 pandemic adversely affects the Companies’ business, results of operations, financial condition, liquidity and/or cash flows, it may also have the effect of heightening many of the other risks described in Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Dominion Energy

~~ISSUER PURCHASES OF EQUITY SECURITIES~~Purchases 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⁾
1/1/20-1/31/20

1,945

$
82.82

—

19,629,059 shares/
$1.18 billion
2/1/20-2/29/20

79,716

85.81

—

19,629,059 shares/
$1.18 billion
3/1/20-3/31/20

—

—

—

19,629,059 shares/
$1.18 billion
Total

81,661

$
85.74

—

19,629,059 shares/
$1.18 billion

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⁾
1/1/21-1/31/21		12,193	$	75.20		—	$ 0.92 billion
2/1/21-2/28/21		72,389		72.68		—	0.92 billion
3/1/21-3/31/21		—		—		—	0.92 billion
Total		84,582	$	73.04		—	$ 0.92 billion

(1)	Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.

(2)	Represents the weighted-average price paid per share.

(3)

~~The remaining repurchase authorization is pursuant to repurchase authority granted by~~In November 2020, the Dominion Energy Board of Directors ~~in February 2005, as~~authorized the repurchase of up to $1.0 billion of shares of common stock. This repurchase program has no expiration date or price or volume targets and may be modified, ~~in June 2007. The aggregate authorization granted by~~suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the ~~Dominion Energy Board~~discretion of ~~Directors was 86 million shares (as adjusted~~management subject to ~~reflect a two-for-one stock split distributed in November 2007) not to exceed $4 billion.~~prevailing market conditions, applicable securities laws and other factors.

ITEM 6. EXHIBITS

Exhibit

Number

Description

Dominion Energy

Virginia Power

~~Dominion Energy Gas~~

3.1.a

Dominion Energy, Inc. Articles of Incorporation, as restated, effective December 13, 2019 (Exhibit 3.1, Form 8-K filed December 13, 2019, File No.1-8489).

3.1.b

Virginia Electric and Power Company Amended and Restated Articles of Incorporation, as in effect on October 30, 2014 (Exhibit 3.1.b, Form 10-Q filed November 3, 2014, File No. 1-2255).

~~3.1.c~~

~~Articles of Organization of Dominion Energy Gas Holdings, LLC (Exhibit 3.1, Form S-4 filed April 4, 2014, File No. 333-195066).~~

~~3.1.d~~

~~Articles of Amendment to the Articles of Organization of Dominion Energy Gas Holdings, LLC (Exhibit 3.1, Form 8-K filed May 16, 2017, File No. 1-37591).~~

3.2.a

Dominion Energy, Inc. Bylaws, as amended and restated, effective ~~March 20,~~July 30, 2020 (Exhibit 3.1, Form 8-K filed ~~March 25,~~July 31, 2020, File No. 1-8489).

3.2.b

Virginia Electric and Power Company Amended and Restated Bylaws, effective June 1, 2009 (Exhibit 3.1, Form 8-K filed June 3, 2009, File No. 1-2255).

~~3.2.c~~

~~Operating Agreement of Dominion Energy Gas Holdings, LLC, as amended and restated, effective November 5, 2019 (Exhibit 3.1, Form 8-K filed November 12, 2019, File No. 001-37591).~~

~~4.1~~4

Dominion Energy, Inc., and Virginia Electric and Power Company ~~and Dominion Energy Gas Holdings, LLC~~ agree to furnish to the ~~U.S.~~ Securities and Exchange Commission upon request any other instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of any of their total consolidated assets.

~~4.2~~4.1

~~Exhibit~~

~~Number~~

~~Description~~

~~Dominion Energy~~

~~Virginia Power~~

~~Dominion Energy Gas~~

31.a

Certification by Chief Executive Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.b

Certification by Chief Financial Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.c

Certification by Chief Executive Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.d

Certification by Chief Financial Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

~~31.e~~

~~Certification by Chief Executive Officer of Dominion Energy Gas Holdings, LLC pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).~~

~~31.f~~

~~Certification by Chief Financial Officer of Dominion Energy Gas Holdings, LLC pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).~~

32.a

Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

32.b

Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Virginia Electric and Power Company as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

~~32.c~~

Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy Gas Holdings, LLC as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

Condensed consolidated earnings statements (filed herewith).

Exhibit

Number

XDescription

Dominion Energy

Virginia Power

101

The following financial statements from Dominion Energy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2020,~~2021, filed on May ~~5, 2020,~~4, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. The following financial statements from Virginia Electric and Power Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2020,~~2021, filed on May ~~5, 2020,~~4, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Common Shareholder’s Equity (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. The following financial statements from Dominion Energy Gas Holdings, LLC’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed on May 5, 2020, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.

104

Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	DOMINION ENERGY, INC. Registrant

May ~~5, 2020~~4, 2021	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

	VIRGINIA ELECTRIC AND POWER COMPANY Registrant

May ~~5, 2020~~4, 2021	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

	~~DOMINION ENERGY GAS HOLDINGS, LLC~~ ~~Registrant~~

~~May 5, 2020~~	~~/s/ Michele L. Cardiff~~
	~~Michele L. Cardiff~~ ~~Vice President, Controller and~~ ~~Chief Accounting Officer~~

~~112~~87

	Predecessor Equity			Membership Interests			AOCI			Total Members' Equity			Noncontrolling Interests			Total
(millions)
December 31, 2018	$	1,804		$	4,566		$	(169	)	$	6,201		$	2,664		$	8,865
Net income		74			116						190			36			226
Acquisition of public interest in Dominion Energy Midstream		1,181									1,181			(1,221	)		(40	)
Dividends and distributions		(113	)								(113	)		(46	)		(159	)
Other comprehensive loss, net of tax								(22	)		(22	)		(1	)		(23	)
Other		(8	)								(8	)					(8	)
March 31, 2019	$	2,938		$	4,682		$	(191	)	$	7,429		$	1,432		$	8,861

December 31, 2019	$	—		$	9,031		$	(187	)	$	8,844		$	1,385		$	10,229
Net income					169						169			33			202
Dividends and distributions					(232	)					(232	)		(37	)		(269	)
Other comprehensive loss, net of tax								(84	)		(84	)					(84	)
March 31, 2020	$	—		$	8,968		$	(271	)	$	8,697		$	1,381		$	10,078

	Three Months Ended March 31, 2019⁽¹⁾
(millions, except EPS)
Operating Revenue	$	4,887
Net income attributable to Dominion Energy		605
Earnings Per Common Share – Basic	$	0.76
Earnings Per Common Share – Diluted	$	0.76

	Deferred gains and losses on derivatives- hedging activities			Unrecognized pension costs			Total
(millions)
Three Months Ended March 31, 2020
Beginning balance	$	(81	)	$	(106	)	$	(187	)
Other comprehensive income before reclassifications: gains (losses)		(91	)		—			(91	)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾		6			1			7
Net current period other comprehensive income (loss)		(85	)		1			(84	)
Ending balance	$	(166	)	$	(105	)	$	(271	)
Three Months Ended March 31, 2019
Beginning balance	$	(25	)	$	(144	)	$	(169	)
Other comprehensive income before reclassifications: gains (losses)		(27	)		—			(27	)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾		3			1			4
Net current period other comprehensive income (loss)		(24	)		1			(23	)
Less other comprehensive income (loss) attributable to noncontrolling interest		(1	)		—			(1	)
Ending balance	$	(48	)	$	(143	)	$	(191	)

	Current		Noncurrent
Interest rate⁽¹⁾	$	250,000,000	$	1,050,000,000
Foreign currency⁽¹⁾	€	-	€	250,000,000

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(157	)	$	(11	)	297 months
Foreign currency		(9	)		(1	)	75 months
Total	$	(166	)	$	(12	)

	Fair Value- Derivatives Under Hedge Accounting		Fair Value-Derivatives Not Under Hedge Accounting		Total Fair Value
(millions)
March 31, 2020
LIABILITIES
Current Liabilities
Interest rate	$	57	$	11	$	68
Foreign currency		1		—		1
Total current derivative liabilities⁽²⁾		58		11		69
Noncurrent Liabilities
Interest rate		119		3		122
Foreign currency		16		—		16
Total noncurrent derivative liabilities⁽³⁾		135		3		138
Total derivative liabilities	$	193	$	14	$	207
December 31, 2019
ASSETS
Noncurrent Assets
Foreign currency	$	8	$	—	$	8
Total noncurrent derivative assets⁽¹⁾		8		—		8
Total derivative assets	$	8	$	—	$	8
LIABILITIES
Current Liabilities
Interest rate	$	30	$	—	$	30
Foreign currency		3		—		3
Total current derivative liabilities⁽²⁾		33		—		33
Noncurrent Liabilities
Interest rate		53		—		53
Total noncurrent derivative liabilities⁽³⁾		53		—		53
Total derivative liabilities	$	86	$	—	$	86

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income
(millions)
Three Months Ended March 31, 2020
Derivative Type and Location of Gains (Losses):
Interest rate⁽²⁾	$	(100	)	$	(2	)
Foreign currency⁽³⁾		(23	)		(6	)
Total	$	(123	)	$	(8	)
Three Months Ended March 31, 2019
Derivative Type and Location of Gains (Losses):
Commodity:
Net income from discontinued operations				$	2
Total commodity	$	(1	)	$	2
Interest rate⁽²⁾		(24	)		1
Foreign currency⁽³⁾		(11	)		(6	)
Total	$	(36	)	$	(3	)

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended
	March 31,
	2020			2019
(millions)
Derivative type and location of gains (losses):
Interest rate⁽¹⁾	$	(8	)	$	—
Total	$	(8	)	$	—