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. 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). 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.

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. At ~~July 17,~~October 16, 2020, Dominion Energy South Carolina, Inc. had outstanding 40,296,147 shares of common stock, all of which were held by SCANA Corporation, a wholly-owned subsidiary of Dominion Energy, Inc.

Dominion Energy South Carolina, Inc. meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and therefore is filing this Form with the reduced disclosure format allowed under General Instruction H(2).

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

Abbreviation or Acronym		Definition
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
ACE Rule		Affordable Clean Energy Rule
AOCI		Accumulated other comprehensive income (loss)
ARO		Asset retirement obligation
BACT		Best available control technology
BLRA		South Carolina Base Load Review Act
CAA		Clean Air Act
CARES Act		Coronavirus Aid, Relief and Economic Security Act enacted on March 27, 2020
CCR		Coal combustion residual
CEO		Chief Executive Officer
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund
CFO		Chief Financial Officer
CO₂		Carbon dioxide
Consortium		A consortium consisting of Westinghouse and WECTEC
CUA		Capacity Use Area
CWA		Clean Water Act
DECG		Dominion Energy Carolina Gas Transmission, LLC
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
DESS		Dominion Energy Southeast Services, Inc.
Dominion Energy		The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than DESC) 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, a~~ ~~wholly-owned subsidiary of Dominion Energy,~~ LLC), one or more of its consolidated subsidiaries, or ~~operating segment, or~~ the entirety of ~~Dominion~~Eastern Energy Gas Holdings, LLC and its consolidated subsidiaries
Dominion Energy South Carolina		Dominion Energy South Carolina operating segment
DSM		Demand-side management
ELG Rule		Effluent limitations guidelines for the steam electric power generating category
EMANI		European Mutual Association for Nuclear Insurance
EPA		U.S. Environmental Protection Agency
Exchange Act		Securities Exchange Act of 1934, as amended
FERC		Federal Energy Regulatory Commission
FILOT		Fee in lieu of taxes
Fuel Company		South Carolina Fuel Company, Inc.
GAAP		U.S. generally accepted accounting principles
GENCO		South Carolina Generating Company, Inc.
GHG		Greenhouse gas
IAA		Interim Assessment Agreement dated March 28, 2017, as amended, among DESC, Santee Cooper, Westinghouse and WECTEC
kV		Kilovolt
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

(millions)	June 30, 2020			December 31, 2019			September 30, 2020			December 31, 2019
ASSETS
Utility plant in service	$	13,472		$	13,208		$	13,563		$	13,208
Accumulated depreciation and amortization		(4,933	)		(4,851	)		(4,987	)		(4,851	)
Construction work in progress		372			339			401			339
Nuclear fuel, net of accumulated amortization		201			219			192			219
Utility plant, net ($706 and $727 related to VIEs)		9,112			8,915
Utility plant, net ($695 and $727 related to VIEs)								9,169			8,915
Nonutility Property and Investments:
Nonutility property, net of accumulated depreciation		51			69			39			69
Assets held in trust, nuclear decommissioning		223			214			228			214
Nonutility property and investments, net		274			283			267			283
Current Assets:
Cash and cash equivalents		7			4			3			4
Receivables:
Customer, net of allowance for uncollectible accounts of $9 and $3		322			320
Customer, net of allowance for uncollectible accounts of $13 and $3								356			320
Affiliated and related party		—			14			9			14
Other		123			119			123			119
Inventories (at average cost):
Fuel		104			104			89			104
Materials and supplies		171			168			173			168
Prepayments		121			91			134			91
Regulatory assets		261			271			264			271
Other current assets		32			27			30			27
Total current assets ($126 and $143 related to VIEs)		1,141			1,118
Total current assets ($120 and $143 related to VIEs)								1,181			1,118
Deferred Debits and Other Assets:
Regulatory assets		3,821			3,892			3,776			3,892
Other		92			93			102			93
Total deferred debits and other assets ($38 and $32 related to VIEs)		3,913			3,985			3,878			3,985
Total assets	$	14,440		$	14,301		$	14,495		$	14,301

(millions)	June 30, 2020			December 31, 2019			September 30, 2020			December 31, 2019
CAPITALIZATION AND LIABILITIES
Common Stock - no par value, 40.3 million shares outstanding	$	3,695		$	3,695		$	4,017		$	3,695
Retained earnings		177			20			278			20
Accumulated other comprehensive loss		(3	)		(3	)		(3	)		(3	)
Total common equity		3,869			3,712			4,292			3,712
Noncontrolling interest		183			180			188			180
Total equity		4,052			3,892			4,480			3,892
Long-term debt, net		3,359			3,358			3,356			3,358
Affiliated long-term debt		230			230			230			230
Finance leases		18			20			16			20
Total long-term debt		3,607			3,608			3,602			3,608
Total capitalization		7,659			7,500			8,082			7,500
Current Liabilities:
Securities due within one year		7			7			10			7
Accounts payable		136			245			138			245
Affiliated and related party payables		769			624			470			624
Customer deposits and customer prepayments		71			76			69			76
Taxes accrued		121			218			166			218
Interest accrued		92			88			85			88
Regulatory liabilities		287			256			291			256
Reserves for litigation and regulatory proceedings		473			492			203			492
Other		42			60			44			60
Total current liabilities		1,998			2,066			1,476			2,066
Deferred Credits and Other Liabilities:
Deferred income taxes and investment tax credits		690			629			884			629
Asset retirement obligations		587			489			591			489
Pension and other postretirement benefits		200			203			201			203
Regulatory liabilities		3,098			3,210			3,051			3,210
Affiliated liabilities		14			15			14			15
Other		194			189			196			189
Total deferred credits and other liabilities		4,783			4,735			4,937			4,735
Commitments and Contingencies (see Note 12)
Total capitalization and liabilities	$	14,440		$	14,301		$	14,495		$	14,301

	Three Months Ended June 30,						Six Months Ended June 30,					Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2020			2019			2020		2019			2020			2019			2020		2019
Operating Revenue⁽¹⁾	$	624		$	698		$	1,296	$	363		$	755		$	795		$	2,051	$	1,158
Operating Expenses:
Fuel used in electric generation⁽¹⁾		95			143			199		280			135			167			334		447
Purchased power⁽¹⁾		25			12			38		20			25			15			63		35
Gas purchased for resale⁽¹⁾		34			44			91		121			33			37			124		158
Other operations and maintenance		93			123			183		219			93			90			276		309
Other operations and maintenance - affiliated suppliers		50			72			105		120			49			54			154		174
Impairment of assets and other charges		—			100			2		371			63			0			65		371
Depreciation and amortization		118			115			236		217			118			116			354		333
Other taxes⁽¹⁾		65			72			127		141			59			55			186		196
Total operating expenses		480			681			981		1,489			575			534			1,556		2,023
Operating income (loss)		144			17			315		(1,126	)		180			261			495		(865	)
Other income (expense), net		2			(9	)		5		(14	)		(2	)		(13	)		3		(27	)
Interest charges, net of allowance for borrowed funds used during construction of $1, $2, $3 and $2⁽¹⁾		58			63			116		136
Interest charges, net of allowance for borrowed funds used during construction of $2, $2, $5 and $4⁽¹⁾													57			66			173		202
Income (loss) before income tax expense (benefit)		88			(55	)		204		(1,276	)		121			182			325		(1,094	)
Income tax expense (benefit)		21			15			44		(103	)		15			40			59		(63	)
Net Income (Loss) and Other Comprehensive Income (Loss)		67			(70	)		160		(1,173	)
Comprehensive Income (Loss) Attributable to Noncontrolling Interest		(2	)		8			3		14
Net Income (Loss)													106			142			266		(1,031	)
Other Comprehensive Income:
Deferred cost of employee benefit plans, net of tax of $0, $0, $0, $0													0			1			0		1
Total Comprehensive Income (Loss)													106			143			266		(1,030	)
Comprehensive Income Attributable to Noncontrolling Interest													5			0			8		14
Comprehensive Income (Loss) Available (Attributable) to Common Shareholder	$	69		$	(78	)	$	157	$	(1,187	)	$	101		$	143		$	258	$	(1,044	)

	Six Months Ended June 30,						Nine Months Ended September 30,
(millions)	2020			2019			2020			2019
Operating Activities
Net income (loss)	$	160		$	(1,173	)	$	266		$	(1,031	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Impairment of assets and other charges		2			371			12			256
Provision for refunds to customers		—			950			0			923
Gain on sale of assets								0			(7	)
Deferred income taxes, net		61			(434	)		255			(384	)
Depreciation and amortization		236			223			354			341
Amortization of nuclear fuel		21			27			31			41
Other adjustments		7			(4	)		12			(5	)
Changes in certain assets and liabilities:
Receivables		(23	)		—			(52	)		(9	)
Receivables - affiliated and related party		5			(3	)		5			(7	)
Inventories		(3	)		(48	)		10			(66	)
Prepayments		(30	)		(29	)		(43	)		(9	)
Pension and other postretirement benefits		(3	)		—
Regulatory assets		3			187			(8	)		(109	)
Regulatory liabilities		(111	)		195			(168	)		223
Accounts payable		(35	)		(72	)		(33	)		(68	)
Accounts payable - affiliated and related party		4			17			(24	)		7
Revenue subject to refund		—			(63	)		0			(74	)
Taxes accrued		(97	)		(65	)		(52	)		(22	)
Interest accrued		3			—
Other assets and liabilities		(12	)		(79	)		41			164
Net cash provided by operating activities		188			—			606			164
Investing Activities
Property additions and construction expenditures		(330	)		(226	)		(472	)		(340	)
Proceeds from investments and sales of assets		5			12			12			33
Purchase of investments		(5	)		(23	)		(11	)		(42	)
Purchase of investments - affiliated		(1	)		—			(1	)		0
Short-term investments - affiliated		9			343			0			336
Net cash provided by (used in) investing activities		(322	)		106
Net cash used in investing activities								(472	)		(13	)
Financing Activities
Proceeds from issuance of affiliated debt		—			230			0			230
Repayment of long-term debt, including redemption premiums		—			(1,247	)		0			(1,890	)
Dividend to parent		—			(30	)		0			(30	)
Contribution from parent		—			775			0			825
Contribution returned to parent		—			(20	)		0			(20	)
Money pool borrowings, net		—			4			0			441
Short-term borrowings, net		—			(73	)		0			(73	)
Short-term borrowings - affiliated, net		141			—			(130	)		0
Other		(4	)		—			(5	)		0
Net cash provided by (used in) financing activities		137			(361	)
Net increase (decrease) in cash, restricted cash and equivalents		3			(255	)
Net cash used in financing activities								(135	)		(517	)
Net decrease in cash, restricted cash and equivalents								(1	)		(366	)
Cash, restricted cash and equivalents at beginning of period⁽¹⁾		4			377			4			377
Cash, restricted cash and equivalents at end of period⁽¹⁾	$	7		$	122		$	3		$	11
Supplemental Cash Flow Information
Significant noncash investing and financing activities:
Significant noncash investing and financing activities:⁽²⁾
Accrued construction expenditures	$	41		$	39		$	42		$	47
Leases⁽²⁾		2			5
Leases⁽³⁾								2			7

Common Stock

(millions)

Shares

Amount

Retained
Earnings

AOCI

Noncontrolling
Interest

Total
Equity

March 31, 2019

40

$
3,535

$
151

$
(4
)

$
185

$
3,867

Total comprehensive income (loss) available
(attributable) to common shareholder

(78
)

8

(70
)
Capital contribution from parent

100

100

Capital contribution returned to parent

(20
)

(20
)
Other

(1
)

(1
)
June 30, 2019

40

$
3,635

$
72

$
(4
)

$
173

$
3,876

March 31, 2020

40

$
3,695

$
108

$
(3
)

$
185

$
3,985

Total comprehensive income (loss) available
(attributable) to common shareholder

69

(2
)

67

June 30, 2020

40

$
3,695

$
177

$
(3
)

$
183

$
4,052

	Common Stock
(millions)	Shares		Amount			Retained Earnings		AOCI			Noncontrolling Interest		Total Equity
June 30, 2019		40	$	3,635		$	72	$	(4	)	$	173	$	3,876
Total comprehensive income available to common shareholder							142		1					143
Capital contribution from parent			50											50
September 30, 2019		40	$	3,685		$	214	$	(3	)	$	173	$	4,069

June 30, 2020		40	$	3,695		$	177	$	(3	)	$	183	$	4,052
Total comprehensive income available to common shareholder							101					5		106
Capital contribution from parent				322	��									322
September 30, 2020		40	$	4,017		$	278	$	(3	)	$	188	$	4,480

	Common Stock																Common Stock
(millions)	Shares		Amount		Retained Earnings			AOCI			Noncontrolling Interest			Total Equity			Shares		Amount		Retained Earnings			AOCI			Noncontrolling Interest			Total Equity
December 31, 2018		40	$	2,860	$	1,279		$	(3	)	$	179		$	4,315			40	$	2,860	$	1,279		$	(3	)	$	179		$	4,315
Cumulative-effect of change in accounting principle						1			(1	)					—							1			(1	)					0
Total comprehensive income (loss) available (attributable) to common shareholder						(1,187	)					14			(1,173	)						(1,045	)		1			14			(1,030	)
Capital contribution from parent			775												775				825												825
Capital contribution returned to parent												(20	)		(20	)												(20	)		(20	)
Dividend to parent						(20	)								(20	)						(20	)								(20	)
Other						(1	)								(1	)						(1	)								(1	)
June 30, 2019		40	$	3,635	$	72		$	(4	)	$	173		$	3,876
September 30, 2019																		40	$	3,685	$	214		$	(3	)	$	173		$	4,069

December 31, 2019		40	$	3,695	$	20		$	(3	)	$	180		$	3,892			40	$	3,695	$	20		$	(3	)	$	180		$	3,892
Total comprehensive income available to common shareholder						157						3			160							258						8			266
June 30, 2020		40	$	3,695	$	177		$	(3	)	$	183		$	4,052
Capital contribution from parent																				322											322
September 30, 2020																		40	$	4,017	$	278		$	(3	)	$	188		$	4,480

The following notes should be read in conjunction with the Notes to Consolidated Financial Statements appearing in DESC's Annual Report on Form 10-K for the year ended December 31, 2019.

These are interim financial statements and, due to the seasonality of DESC's business and matters that may occur during the rest of the year, the amounts reported in the Consolidated Statements of Comprehensive Income (Loss) are not necessarily indicative of amounts expected for the full year. In the opinion of management, the information furnished herein reflects all adjustments which are necessary for a fair statement of the results for the interim periods reported, and such adjustments are of a normal recurring nature. In addition, the preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain amounts in DESC's 2019 Consolidated Financial Statements and Notes have been reclassified to conform to the 2020 presentation for comparative purposes; however, such reclassifications did not affect DESC's net income (loss) and other comprehensive income (loss), total assets, liabilities, equity or cash flows.

DESC is a wholly-owned subsidiary of SCANA, which is a wholly-owned subsidiary of Dominion Energy.

DESC has determined that it has a controlling financial interest in each of GENCO and Fuel Company (which are considered to be VIEs) and, accordingly, DESC's Consolidated Financial Statements include, after eliminating intercompany balances and transactions, the accounts of DESC, GENCO and Fuel Company. See Note 1 to the Consolidated Financial Statements included in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019 for a description of GENCO and Fuel Company.

Additionally, DESC purchases shared services from DESS, an affiliated VIE that provides accounting, legal, finance and certain administrative and technical services to all SCANA subsidiaries, including DESC. DESC has determined that it is not the primary beneficiary of DESS as it does not have either the power to direct the activities that most significantly impact its economic performance or an obligation to absorb losses and benefits which could be significant to it. See Note 14 for amounts attributable to affiliates.

There have been no significant changes from Note 2 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2019.

As a result of issues generated in the ordinary course of business, DESC is 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 DESC to estimate a range of possible loss. For regulatory matters that DESC 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 DESC is able to estimate a range of possible loss. For regulatory matters that DESC is 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 DESC’s 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 DESC’s financial position, liquidity or results of operations.

In January 2020, GENCO filed to modify its formula rate to incorporate a mechanism to decrease or increase its income tax allowances by any excess deferred income taxes resulting from the 2017 Tax Reform Act, and future changes in tax laws. These modifications are expected to decrease charges to DESC for the power it purchases from GENCO. In April 2020, the FERC approved GENCO’s request. There have been no other changes to the 2017 Tax Reform Act matters discussed in Note 3 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019.

Other than the following matters, there have been no significant developments regarding the pending regulatory matters disclosed in Note 3 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2019.

~~Pursuant to the SCANA Merger Approval Order,~~ In August 2020, DESC ~~will not file an application for a general~~filed its retail electric base rate case and schedules with the South Carolina ~~Commission with~~Commission. DESC proposed a ~~requested~~non-fuel, base rate increase of $178 million, or 7.75%, effective ~~date~~on or after the first billing cycle of March 2021. The base rate increase was proposed to recover the significant investment in assets and operating resources required to serve an expanding customer base, maintain the safety, reliability and efficiency of DESC’s system and meet increasingly stringent reliability, security and environmental requirements for ~~new rates earlier than January 2021. In April 2020,~~ the benefit of South Carolina ~~Commission issued~~customers. DESC presented an ~~order vacating the portion~~earned ROE of ~~the SCANA Merger Approval Order requiring that new retail electric~~5.90% based upon a fully-adjusted test period. The proposed rates ~~be implemented by January 1, 2021. In July 2020, DESC filed a notice of intent with the South Carolina Commission to file~~would provide for an ~~increase~~earned ROE equal to ~~base rates for retail electric service no earlier than 30 days following~~ the ~~notice.~~ ~~The net lost revenue recovery portion~~current authorized earned ROE of ~~the DSM rider would be adjusted lower simultaneously with any approved retail electric base rate increases~~10.25%.

In February 2020, DESC filed with the South Carolina Commission a proposal to decrease the total fuel cost component of retail electric rates. DESC’s proposed decrease would reduce annual base fuel component recoveries by $44 million and is projected to return to customers the existing over-collected balance while recovering DESC’s current base fuel costs over the 12-month period beginning with the first billing cycle of May 2020. In addition, DESC proposed an increase to its variable environmental and distributed energy resource components. In April 2020, the South Carolina Commission approved the filing.

In 2020, DESC began several electric transmission projects in connection with 2 new nuclear plants under development by Southern. These transmission projects are required to be in place prior to these plants beginning operations to maintain reliability. DESC anticipates the projects to go into service in phases, costing approximately $75 million in aggregate. In February 2020, DESC filed an application with the South Carolina Commission requesting approval to construct and operate 28 miles of 230 kV transmission lines in Aiken County, South Carolina estimated to cost approximately $30 million. In June 2020, the South Carolina Commission approved the filing.

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

DESC utilizes a pension costs rider approved by the South Carolina Commission which is designed to allow recovery of projected pension costs, including under-collected balances or net of over-collected balances, as applicable. The rider is typically reviewed for adjustment every 12 months with any resulting increase or decrease going into effect beginning with the first billing cycle in May. In February 2020, DESC requested that the South Carolina Commission approve an adjustment to this rider to decrease annual revenue by $11 million. In April 2020, the South Carolina Commission approved the filing.

In June 2020, DESC filed with the South Carolina Commission its monitoring report for the 12-month period ended March 31, 2020 with a total revenue requirement of $409 million. This represents a $9 million overall annual increase to its natural gas rates under the terms of the Natural Gas Rate Stabilization Act effective with the first billing cycle of November 2020. In October 2020, the South Carolina Commission approved a total revenue requirement of $406 million effective with the first billing cycle of November 2020. This ~~matter is pending.~~

represents a $6 million overall annual increase to DESC’s natural gas rates. Additionally, the South Carolina Commission authorized an allowed ROE of 9.90%, a reduction from the prior ROE of 10.25%. The South Carolina Commission also approved an

agreement between the South Carolina Office of Regulatory Staff and DESC that DESC will file its next retail natural gas general rate proceeding no later than April 2023.

Rate-regulated utilities recognize in their financial statements certain revenues and expenses in different periods than do other enterprises. As a result, DESC has recorded regulatory assets and regulatory liabilities which are summarized in the following table. Except for NND Project costs and certain other unrecovered plant costs, substantially all regulatory assets are either explicitly excluded from rate base or are effectively excluded from rate base due to their being offset by related liabilities.

	June 30,		December 31,		September 30,		December 31,
(millions)	2020		2019		2020		2019
Regulatory assets:
NND Project costs⁽¹⁾	$	138	$	138	$	138	$	138
Deferred employee benefit plan costs⁽²⁾		10		13		10		13
Other unrecovered plant⁽³⁾		14		14		14		14
DSM programs⁽⁴⁾		17		17		19		17
AROs⁽⁵⁾		27		28		27		28
Cost of fuel under-collections⁽⁶⁾		11		13		15		13
Other		44		48		41		48
Regulatory assets - current		261		271		264		271
NND Project costs⁽¹⁾		2,434		2,503		2,399		2,503
AROs⁽⁵⁾		289		293		290		293
Cost of reacquired debt⁽⁷⁾		251		259		246		259
Deferred employee benefit plan costs⁽²⁾		194		196		192		196
Deferred losses on interest rate derivatives⁽⁸⁾		315		305		312		305
Other unrecovered plant⁽³⁾		64		69		62		69
DSM programs⁽⁴⁾		57		54		55		54
Environmental remediation costs⁽⁹⁾		21		22		21		22
Deferred storm damage costs⁽¹⁰⁾		44		44		45		44
Deferred transmission operating costs⁽¹¹⁾		49		37		56		37
Other⁽¹²⁾		103		110		98		110
Regulatory assets - noncurrent		3,821		3,892		3,776		3,892
Total regulatory assets	$	4,082	$	4,163	$	4,040	$	4,163
Regulatory liabilities:
Monetization of guaranty settlement⁽¹³⁾	$	67	$	67	$	67	$	67
Income taxes refundable through future rates⁽¹⁴⁾		23		16		24		16
Reserve for refunds to electric utility customers⁽¹⁵⁾		134		143		133		143
Cost of fuel over-collections⁽⁶⁾		55		12		63		12
Other		8		18		4		18
Regulatory liabilities - current		287		256		291		256
Monetization of guaranty settlement⁽¹³⁾		936		970		920		970
Income taxes refundable through future rates⁽¹⁴⁾		929		948		917		948
Asset removal costs⁽¹⁶⁾		565		552		563		552
Deferred gains on interest rate derivatives⁽⁸⁾		70		71		70		71
Reserve for refunds to electric utility customers⁽¹⁵⁾		588		656		570		656
Other		10		13		11		13
Regulatory liabilities - noncurrent		3,098		3,210		3,051		3,210
Total regulatory liabilities	$	3,385	$	3,466	$	3,342	$	3,466

Regulatory assets have been recorded based on the probability of their recovery. All regulatory assets represent incurred costs that may be deferred under GAAP for regulated operations. The South Carolina Commission or the FERC has reviewed and approved through specific orders certain of the items shown as regulatory assets. In addition, regulatory assets include, but are not limited to, certain costs which have not been specifically approved for recovery by one of these regulatory agencies, including deferred transmission operating costs that are the subject of regulatory proceedings discussed in Note 12. While such costs are not currently being recovered, management believes they would be allowable under existing rate-making concepts embodied in rate orders or applicable state law and expects to recover these costs through rates in future periods.

	Three Months Ended				Three Months Ended					Six Months Ended				Six Months Ended				Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	June 30, 2020				June 30, 2019					June 30, 2020				June 30, 2019				September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
(millions)	Electric		Gas		Electric			Gas		Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	261	$	33	$	281		$	31	$	513	$	112	$	10	$	109	$	349	$	27	$	354	$	24	$	862	$	139	$	364	$	133
Commercial		177		20		206			23		352		53		67		61		216		18		229		19		568		71		296		80
Industrial		83		12		100			19		163		29		18		45		90		15		101		18		253		44		119		63
Other		27		4		35			4		57		8		45		7		33		4		37		6		90		12		82		13
Revenues from contracts with customers		548		69		622			77		1,085		202		140		222		688		64		721		67		1,773		266		861		289
Other revenues		7		—		(1	)		—		9		—		1		—		3		0		7		0		12		0		8		0
Total Operating Revenues	$	555	$	69	$	621		$	77	$	1,094	$	202	$	141	$	222	$	691	$	64	$	728	$	67	$	1,785	$	266	$	869	$	289

Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has already been received from the customer. DESC had contract liability balances of $5 million and $9 million at ~~June~~September 30, 2020 and December 31, 2019, respectively. During the ~~six~~nine months ended ~~June~~September 30, 2020 and 2019, DESC recognized revenue of $5$6 million and $3 million, respectively, from the beginning contract liability balances as DESC fulfilled its obligations to provide service to its customers. Contract liabilities are recorded in customer deposits and customer prepayments in the Consolidated Balance Sheets.

For all periods presented, DESC's authorized shares of common stock, no par value, were 50 million, of which 40.3 million were issued and outstanding, and DESC's authorized shares of preferred stock, no par value, were 20 million, of which 1,000 shares were issued and outstanding. All outstanding shares of common and preferred stock are held by SCANA.

In September 2020, Dominion Energy issued $322 million of shares of Dominion Energy common stock in accordance with the settlement agreement associated with the Santee Cooper Ratepayer Case, as discussed in Note 12. In connection with this transaction, DESC recorded an equity contribution from Dominion Energy.

During the three and ~~six~~nine months ended ~~June~~September 30, 2019, DESC received equity contributions of ~~$100~~$50 million and ~~$775~~$825 million, respectively, from its parent that ~~was~~were funded by Dominion Energy. DESC used these funds to redeem long-term debt and to repay intercompany credit agreement borrowings from Dominion Energy. See Note 6 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019.

At ~~June~~September 30, 2020, DESC’s retained earnings exceed the balance established by the Federal Power Act as a reserve on earnings attributable to hydroelectric generation plants. As a result, DESC is permitted to pay dividends without additional regulatory approval provided that such amounts would not bring the retained earnings balance below the threshold. There have been no other significant changes to dividend restrictions affecting DESC described in Note 5 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019.

DESC's short-term financing is supported through its access as co-borrower to Dominion Energy’s $6.0 billion joint revolving credit facility, which can be used for working capital, as support for the combined commercial paper programs of DESC, Dominion Energy, Virginia Power ~~Dominion Energy Gas~~ and Questar Gas, and for other general corporate purposes.

At ~~June~~September 30, 2020, DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, was as follows:

(millions)

Facility Limit

Outstanding

Commercial Paper

Outstanding

Letters of Credit

Facility Limit

Outstanding

Commercial Paper

Outstanding

Letters of Credit

Joint revolving credit facility⁽¹⁾⁽²⁾

1,000

—

1,000

In January 2020, DESC and GENCO applied to FERC for a two-year short-term borrowing authorization. In March 2020, FERC granted DESC authority through March 2021 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, FERC granted GENCO authority through March 2021 to issue short-term indebtedness not to exceed $200 million outstanding with maturity dates of one year or less.

DESC is obligated with respect to an aggregate of $68 million of industrial revenue bonds which are secured by letters of credit. These letters of credit expire, subject to renewal, in the fourth quarter of 2020.

DESC received FERC approval to enter into an inter-company credit agreement in April 2019 with Dominion Energy under which DESC may have short-term borrowings outstanding up to $900 million. At ~~June~~September 30, 2020 and December 31, 2019, DESC had borrowings outstanding under this credit agreement totaling ~~$480~~$229 million and $355 million, respectively, which are recorded in affiliated and related party payables in DESC’s Consolidated Balance Sheets. For the three and ~~six~~nine months ended ~~June~~September 30, 2020, DESC recorded interest charges of $3$2 million and $5$7 million, respectively. For both the three and ~~six~~nine months ended ~~June~~September 30, 2019, DESC recorded interest charges of ~~less than~~ $1 million.

DESC participated in a utility money pool with SCANA and another regulated subsidiary of SCANA through April 2019. Fuel Company and GENCO remain in the utility money pool. Money pool borrowings and investments bear interest at short-term market rates. For the three and ~~six~~nine months ended ~~June~~September 30, 2020, DESC recorded interest income from money pool transactions of less than $1 million and $2 million, respectively, and for the same period DESC recorded interest expense from money pool transactions of less than $1 million and $2 million, respectively. For the three and ~~six~~nine months ended ~~June~~September 30, 2019, DESC recorded interest income from money pool transactions of $3$1 million and $6$7 million, respectively, and for the same period DESC recorded interest expense from money pool transactions of $3$1 million and $6$7 million, respectively. Fuel Company had outstanding money pool

borrowings due to an affiliate of ~~$233~~$215 million and GENCO had investments due from an affiliate of $2$9 million at ~~June~~September 30, 2020. At December 31, 2019, Fuel Company had outstanding money pool borrowings due to an affiliate of ~~$219~~$219 million and GENCO had investments due from an affiliate of $9 million. On its Consolidated Balance Sheets, DESC includes money pool borrowings within affiliated and related party payables and money pool investments within affiliated and related party receivables.

DESC has recorded an estimate of excess deferred income tax amortization in ~~2020.~~2020, including a change in excess deferred income tax amortization associated with the gain on the sale of SEMI’s assets of $7 million. The reversal of these excess deferred income taxes will impact the effective tax rate and rates charged to customers. See Note 3 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

DESC’s effective tax rate for the ~~six~~nine months ended ~~June~~September 30, 2020 is ~~21.5%~~18.2% compared to ~~8.1%~~5.7% for the ~~six~~nine months ended ~~June~~September 30, 2019. Variances in the effective tax rate are primarily driven by the absence of charges resulting from the SCANA Combination. In connection with the SCANA Merger Approval Order, Dominion Energy committed to forgo, or limit, the recovery of certain income tax-related regulatory assets associated with the NND Project. DESC's 2019 effective tax rate reflects income tax expense of $198 million in satisfaction of this commitment. Also in the first ~~six~~nine months of 2019, DESC’s unrecognized tax benefits increased by ~~$75~~$70 million and income tax expense increased by ~~$63~~$59 million related to federal and state income tax positions taken in prior years.

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~~ DESC ~~intends to utilize~~utilized the income tax provisions of the CARES Act to accelerate the recognition of certain tax attributes, ~~where applicable,~~but they ~~are~~did not ~~expected to~~ provide a material benefit.

In July 2020, the U.S. Department of Treasury issued final regulations providing guidance about the limitation on the deduction for business interest expenses and issued proposed regulations on the application of these rules to certain pass-through entities and partners in those entities under the 2017 Tax Reform Act as modified by the CARES Act. DESC is ~~currently~~ assessing the impact of these regulations but expects interest expense to be deductible in 2020.

As of ~~June~~September 30, 2020, there have been no other material changes in DESC’s unrecognized tax benefits. See Note 7 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2019 for a discussion of these unrecognized tax benefits.

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

Derivative assets and liabilities are presented gross on the Consolidated Balance Sheets. DESC’s derivative contracts include over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of setoff through master netting arrangements 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 are subject to collateral requirements. Types of collateral for over-the-counter contracts include cash, letters of credit, and, in some cases, other forms of security, none of which are subject to restrictions. Cash collateral is used in the table below to offset derivative assets and liabilities.

All of DESC’s derivative instruments contain credit-related contingent provisions. These provisions require DESC to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying the instruments that are in a liability position and not fully collateralized with cash were fully triggered as of ~~June~~September 30, 2020, DESC would have been required to post ~~$10~~$9 million of additional collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any amounts already posted for derivatives per contractual terms. DESC had posted $3 million of collateral at ~~June~~September 30, 2020 related to derivatives with credit-related contingent provisions that are in a liability position and not fully collateralized with 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 ~~$13~~$12 million at ~~June~~September 30, 2020. DESC’s derivatives with credit related contingent provisions that were in a liability position were fully collateralized with cash at December 31,2019.

The table below presents derivative balances by type of financial instrument, if the gross amounts recognized in the Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	June 30, 2020								December 31, 2019								September 30, 2020								December 31, 2019
	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
(millions)	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		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
Interest rate contracts:
Over-the-counter	$	31	$	—	$	21	$	10	$	19	$	—	$	19	$	—	$	30	$	0	$	21	$	9	$	19	$	0	$	19	$	0
Total derivatives	$	31	$	—	$	21	$	10	$	19	$	—	$	19	$	—	$	30	$	0	$	21	$	9	$	19	$	0	$	19	$	0

The following table presents the volume of derivative activity at ~~June~~September 30, 2020. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions.

The following tables present the fair values of derivatives and where they are presented in the Consolidated Balance Sheets:

(millions)	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
At June 30, 2020
At September 30, 2020
LIABILITIES
Current Liabilities
Interest rate	$	1	$	1	$	2	$	1	$	1	$	2
Total current derivative liabilities⁽¹⁾		1		1		2		1		1		2
Noncurrent Liabilities
Interest rate		17		12		29		17		11		28
Total noncurrent derivative liabilities⁽²⁾		17		12		29		17		11		28
Total derivative liabilities	$	18	$	13	$	31	$	18	$	12	$	30
At December 31, 2019
LIABILITIES
Current Liabilities
Interest rate	$	1	$	1	$	2	$	1	$	1	$	2
Total current derivative liabilities⁽¹⁾		1		1		2		1		1		2
Noncurrent Liabilities
Interest rate		11		6		17		11		6		17
Total noncurrent derivative liabilities⁽²⁾		11		6		17		11		6		17
Total derivative liabilities	$	12	$	7	$	19	$	12	$	7	$	19

The following tables present the gains and losses on derivatives, as well as where the associated activity is presented in the Consolidated Balance Sheets and Statements of Comprehensive Income (Loss):

(millions)	Gain (loss) Reclassified from Deferred Accounts into Income		Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽¹⁾			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽¹⁾
Three Months Ended June 30, 2020
Three Months Ended September 30, 2020
Derivative type and location of gains (losses):
Interest rate⁽²⁾	$	—	$	2		$	2
Total	$	—	$	2		$	2
Three Months Ended June 30, 2019
Three Months Ended September 30, 2019
Derivative type and location of gains (losses):
Interest rate⁽²⁾	$	—	$	—		$	(1	)
Total	$	—	$	—		$	(1	)
Six Months Ended June 30, 2020
Nine Months Ended September 30, 2020
Derivative type and location of gains (losses):
Interest rate⁽²⁾	$	—	$	(4	)	$	(2	)
Total	$	—	$	(4	)	$	(2	)
Six Months Ended June 30, 2019
Nine Months Ended September 30, 2019
Derivative type and location of gains (losses):
Interest rate⁽²⁾	$	—	$	(2	)	$	(3	)
Total	$	—	$	(2	)	$	(3	)

DESC’s fair value measurements are made in accordance with the policies discussed in Note 9 to the Consolidated Financial Statements in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019. See Note 7 in this report for further information about DESC’s derivatives and hedge accounting activities.

During the third quarter of 2020, DESC determined that certain of its nonutility property was impaired and recorded a $12 million charge ($9 million after-tax) within impairments and other charges in its Consolidated Statements of Income to adjust the property down to its estimated fair value of $6 million. The fair value determinations are considered Level 2 fair value measurements due to the use of real estate appraised values.

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

(millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
At June 30, 2020
At September 30, 2020
Liabilities
Interest rate	$	—	$	31	$	—	$	31	$	0	$	30	$	0	$	30
Total liabilities	$	—	$	31	$	—	$	31	$	0	$	30	$	0	$	30
At December 31, 2019
Liabilities
Interest rate	$	—	$	19	$	—	$	19	$	0	$	19	$	0	$	19
Total liabilities	$	—	$	19	$	—	$	19	$	0	$	19	$	0	$	19

Substantially all of DESC’s 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 financial instruments classified within current assets and current liabilities are representative of fair value because of the short-term nature of these instruments. For financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

	June 30, 2020				December 31, 2019				September 30, 2020				December 31, 2019
(millions)	Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾
Long-term debt⁽²⁾	$	3,359	$	4,586	$	3,358	$	4,262	$	3,360	$	4,626	$	3,358	$	4,262
Affiliated long-term debt		230		230		230		230		230		230		230		230

A liability for the present value of an ARO is recognized when incurred if the liability can be reasonably estimated. Uncertainty about the timing or method of settlement of a conditional ARO is factored into the measurement of the liability when sufficient information exists, but such uncertainty is not a basis upon which to avoid liability recognition.

A reconciliation of the beginning and ending aggregate carrying amount of AROs is as follows:

(millions)	Amount			Amount
AROs at December 31, 2019	$	489		$	489
Liabilities settled		(2	)		(4	)
Accretion expense		11			17
Revisions in estimated cash flows ⁽¹⁾		89			89
AROs at June 30, 2020	$	587
AROs at September 30, 2020				$	591

In May 2019, DESC entered into an agreement to sell certain warranty service contract assets for total consideration of $7 million. The transaction closed in August 2019, resulting in a $7 million ($5 million after-tax) gain recorded in other income (expense), net in DESC’s Consolidated Statements of Comprehensive Income (Loss). Pursuant to the agreement, upon closing DESC entered into a service agreement with the buyer under which the buyer will compensate DESC in connection with the right to use DESC’s brand in marketing materials and other services over a ten-year term.

DESC jointly owns and is the operator of Summer. Each joint owner provides its own financing and shares the direct expenses and generation output in proportion to its ownership. DESC’s share of the direct expenses in Summer is 66.7%. In May 2019, DESC and Santee Cooper entered into an agreement in which DESC agreed to purchase 11.7% of Santee Cooper’s ownership interest in the NND Project nuclear fuel, which will be used at Summer, for $8 million to true up the ownership percentage from the 55% ownership percentage that was applicable for the NND Project to the 66.7% ownership percentage applicable for Summer.

(millions)	Pension Benefits						Other Postretirement Benefits				Pension Benefits						Other Postretirement Benefits
Three Months Ended June 30,	2020			2019			2020		2019
Three Months Ended September 30,											2020			2019			2020		2019
Service cost											$	3		$	4		$	1	$	1
Interest cost												6			6			2		2
Expected return on assets												(11	)		(11	)		0		0
Amortization of actuarial losses												2			2			0		0
Settlement loss⁽¹⁾												0			11			0		0
Net periodic benefit cost											$	0		$	12		$	3	$	3
Nine Months Ended September 30,
Service cost	$	4		$	3		$	1	$	—	$	10		$	11		$	3	$	2
Interest cost		6			7			2		2		18			21			6		6
Expected return on assets		(11	)		(10	)		—		—		(33	)		(31	)		0		0
Amortization of actuarial losses		1			3			—		—		5			9			0		0
Curtailment⁽¹⁾		—			6			—		3		0			6			0		3
Settlement loss⁽¹⁾												0			11			0		0
Net periodic benefit cost	$	—		$	9		$	3	$	5	$	0		$	27		$	9	$	11
Six Months Ended June 30,
Service cost	$	7		$	7		$	2	$	1
Interest cost		12			15			4		4
Expected return on assets		(22	)		(20	)		—		—
Amortization of actuarial losses		3			7			—		—
Curtailment⁽¹⁾		—			6			—		3
Net periodic benefit cost	$	—		$	15		$	6	$	8

No significant contribution to the pension trust is expected for the remainder of 2020 based on current market conditions and assumptions, nor is a limitation on benefit payments expected to apply. DESC recovers current pension costs through either a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations.

In March 2019, Dominion Energy announced a voluntary retirement program to employees, including employees of DESC, that meet certain age and service requirements. ~~The voluntary retirement program will not compromise safety or DESC’s ability to comply with applicable laws and regulations.~~ In the second quarter of 2019, upon the determinations made concerning the number of employees that elected to participate in the program, DESC recorded a charge of $62 million ($47 million after-tax), of which $50 million was included within other operations and maintenance expense, $3 million within other taxes and $9 million within other income (expense), net.In addition, as a result of the voluntary retirement program, DESC recorded pension plan settlement losses of $11 million within other income (expense), net in the third quarter of 2019.

As a result of issues generated in the ordinary course of business, DESC is involved in legal proceedings before various courts and is 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 DESC to estimate a range of possible loss. For such matters that DESC 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 DESC is able to estimate a range of possible loss. For legal proceedings and governmental examinations that DESC is 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 DESC’s 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 DESC’s financial position, liquidity or results of operations.

DESC 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.

From a regulatory perspective, DESC and GENCO continually monitor and evaluate their current and projected emission levels and strive to comply with all state and federal regulations regarding those emissions. DESC and GENCO participate in the SO₂and NO_X emission allowance programs with respect to coal plant emissions and also have constructed additional pollution control equipment at their coal-fired electric generating plants. These actions are expected to address many of the rules and regulations discussed herein.

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 requirements of the CAA. However, states may choose to develop regulatory programs that are more restrictive. Many of DESC’s facilities are subject to the CAA’s permitting and other requirements.

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 May 2020, the EPA’s final rule became effective. 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. DESC is complying with the applicable requirements of the rule and does not expect any impacts to its operations.

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, DESC is 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 DESC’s results of operations and cash flows.

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 existing coal-fired power plants. The final rule includes unit-specific performance standards based on the degree of emission reduction levels achievable from unit efficiency improvements to be determined by the permitting agency. The ACE Rule requires states to develop plans by July 2022 to implement these performance standards. These state plans must be approved by the EPA by January 2024. While the impacts of this rule could be material to DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC.

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 a significant emissions rate at 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, DESC cannot predict the impact to its 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.

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~~In August 2020, the ~~proposed rule regarding~~EPA issued two final amendments related to the reconsideration ~~is final, DESC is implementing~~of the ~~2016 regulation.~~NSPS for the oil and natural gas sector applicable to VOC and methane emissions. Together, the two amendments have the effect of rescinding both the methane portion of the NSPS for all segments of the oil and natural gas sector, rescinding all NSPS for the transmission and storage segment, and modifying some of the NSPS VOC requirements for facilities in the production and processing segments. The two amendments have been challenged in the U.S. Court of Appeals for the D.C. Circuit but remain in effect pending the outcome of the litigation. DESC is still evaluating whether potential impacts on results of operations, financial condition and/or cash flows related to this matter will be material.

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. DESC must comply with applicable aspects of the CWA programs at its operating facilities.

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 five mandatory facility-specific factors, including a social cost-benefit test, and six optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above 2 MGD, with a heightened entrainment analysis for those facilities over 125 MGD. DESC has 5 facilities that are subject to the final regulations. DESC is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to 5 hydroelectric facilities. DESC anticipates that it may have to install impingement control technologies at certain of these stations that have once-through cooling systems. DESC is 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 DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for ~~DESC~~DESC..

In September 2015, the EPA released a final rule to revise the ELG Rule. 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 two separate petitions for reconsideration of the final ELG 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 final ELG Rule from November 2018 to November 2020; however, the latest date for compliance for these regulations ~~remains~~was December 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 DESC’s results of operations, financial condition and/or cash flows, as DESC expects that wastewater treatment technology retrofits will be required at Williams and Wateree generating stations, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC.

In December 2019, the EPA released proposed revisions to the ELG Rule that, if adopted, could extend the deadlines for compliance with certain standards at several facilities. While the impacts of this rule could be material to DESC’s results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

In November 2019, a new CUA was established in the counties surrounding the Cope Generating Station (Western Capacity Use Area) under the South Carolina Groundwater Use and Reporting Regulation. Under the regulation any groundwater well in a CUA that withdraws above three million gallons per month must be permitted. The Cope Generating Station is located within this new Western Capacity Use Area. Cope has been using four deep groundwater wells for cooling water and other house loads since 1996. Prior to designation of the new Western Capacity Use Area, the wells at Cope Station were only required to be registered not permitted. As a result of this designation, Cope will need to restore the surface water equipment to operable status to reduce reliance on groundwater wells. This includes completion of 316(b) requirements, (including SCDHEC BACT determination and modification of the station national pollutant discharge elimination system permit) and extensive inspection, repair and/or replacement of the associated surface water withdrawal equipment which has been idle since 1996. While the impacts of this rule change are material to DESC’s results of operations, financial condition and/or cash flows, the existing regulatory framework in South Carolina provides rate recovery mechanisms that could substantially mitigate any such impacts for DESC.

The operations of DESC 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, DESC 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, DESC 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. DESC also may identify, evaluate and remediate other potentially impacted sites under voluntary state programs. Remediation costs may be subject to reimbursement under DESC’s insurance policies, rate recovery mechanisms, or both. Except as described below, DESC does not believe these matters will have a material effect on results of operations, financial condition and/or cash flows.

DESC has 4 decommissioned MGP sites in South Carolina that are in various states of investigation, remediation and monitoring under work plans approved by, or under review by, the SCDHEC or the EPA. DESC anticipates that activities at these sites will continue through 2025 at an estimated cost of $10 million. In ~~September 2018, DESC submitted an updated remediation work plan~~addition, for one site, an updated work plan submitted to SCDHEC ~~which if approved,~~in September 2018, would increase costs by approximately $11 ~~million.~~million if approved by federal and state agencies. In September 2020, this plan was submitted to the Army Corps of Engineers. DESC expects to recover costs arising from the remediation work at all four

sites through rate recovery mechanisms and as of ~~June~~September 30, 2020, deferred amounts, net of amounts previously recovered through rates and insurance settlements, totaled ~~$22~~$22 million and are included in regulatory assets.

In April 2015, the EPA enacted a final rule regulating CCR landfills, existing ash ponds that still receive and manage CCRs, and inactive ash ponds that do not receive, but still store, CCRs. DESC currently has inactive and existing CCR ponds and CCR landfills subject to the final rule at 3 different facilities. This rule created a legal obligation for DESC to retrofit or close all of its inactive and existing ash ponds over a certain period of time, as well as perform required monitoring, corrective action, and post-closure care activities as necessary.

In December 2016, legislation was enacted that creates a framework for EPA- approved state CCR permit programs. In August 2017, the EPA issued interim guidance outlining the framework for state CCR program approval. The EPA has enforcement authority until state programs are approved. The EPA and states with approved programs both will have authority to enforce CCR requirements under their respective rules and programs. In September 2017, the EPA agreed to reconsider portions of the CCR rule in response to two petitions for reconsideration. In March 2018, the EPA proposed certain changes to the CCR rule related to issues remanded as part of the pending litigation and other issues the EPA is reconsidering. Several of the proposed changes would allow states with approved CCR permit programs additional flexibility in implementing their programs. In July 2018, the EPA promulgated the first phase of changes to the CCR rule. Until all phases of the CCR rule are promulgated, DESC cannot forecast potential incremental impacts or costs related to existing coal ash sites in connection with future implementation of the 2016 CCR legislation and reconsideration of the CCR rule. In August 2018, the U.S. Court of Appeals for the D.C. Circuit issued its decision in the pending challenges of the CCR rule, vacating and remanding to the EPA three provisions of the rule. Until regulatory action is taken to incorporate the U.S. Court of Appeals for the D.C. Circuit’s decision, DESC is unable to make an estimate of the potential financial statement impacts associated with any future changes to the CCR rule in connection with the court’s remand.

A description of events and circumstances leading up to DESC's abandonment of the NND Project and subsequent regulatory, legislative, legal and investigative proceedings, as well as related impairments of NND Project and other costs are described in Note 12 in DESC's Annual Report on Form 10-K for the year ended December 31, 2019.

In accordance with the terms of the South Carolina Commission's SCANA Merger Approval Order, DESC adopted the Plan-B Levelized Customer Benefits Plan, effective February 2019, whereby the average bill for a DESC residential electric customer approximates that which resulted from the legislatively-mandated temporary reduction that had been put into effect by the South Carolina Commission in August 2018. DESC also recorded a significant impairment charge in the fourth quarter of 2018, which charge resulted from its conclusion that NND Project capital costs exceeding the amount established in the SCANA Merger Approval Order were probable of loss, regardless of whether the SCANA Combination was completed. In addition, in the first quarter of 2019, DESC recorded the following charges and liabilities which arose from or are related to provisions in the SCANA Merger Approval Order.

Further, except for rate adjustments for fuel and environmental costs, DSM costs, and other rates routinely adjusted on an annual or biannual basis, DESC will freeze retail electric base rates at current levels until January 1, 2021. As discussed in Note 2, 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.

The South Carolina Commission order also approved the removal of DESC's investment in certain transmission assets that have not been abandoned from BLRA capital costs. As of ~~June~~September 30, 2020, such investment in these assets included ~~$345~~$311 million within utility plant, net and ~~$49~~$56 million within regulatory assets, which amount represents certain deferred operating costs. The South Carolina Commission approved deferral of these operating costs related to the investment until recovery of the transmission capital costs and associated deferred operating costs is addressed in a future rate proceeding. DESC believes these transmission capital and deferred operating costs are probable of recovery; however, if the South Carolina Commission were to disallow recovery of or a

reasonable return on all or a portion of them, an impairment charge equal to the disallowed costs may be required. These amounts are included as part of DESC’s electric base rate case filing discussed in Note 2.

The following describes certain legal proceedings involving 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, DESC 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 DESC is able to reasonably estimate a probable loss, the Consolidated Balance Sheets at ~~June~~September 30, 2020 and December 31, 2019 include reserves of ~~$473~~$203 million and $492 million, respectively, and insurance receivables of $8 million and $6 million, respectively, included within

other receivables. During both the three and ~~six~~nine months ended ~~June~~September 30, 2020, the Consolidated Statements of Comprehensive Income (Loss) includes charges of $51 million ($38 million after-tax), included within impairment of assets and other charges. During the nine months ended September 30, 2019, the Consolidated Statements of Comprehensive Income (Loss) includes charges of ~~$100 million ($75 million after-tax) and $266~~$266 million ($200 million after-tax), ~~respectively,~~ included within impairment of assets and other charges.

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, 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 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 and a stay of pre-trial proceedings in the DESC Ratepayer Case. 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, 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 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 ~~$42~~$22 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,~~agreement. In September 2020, the court entered an order approving a final resolution of ~~which $21~~the transfer of real estate or sales proceeds with a cash contribution of $38.5 million ~~had been transferred as~~by DESC and the conveyance of ~~June 30, 2020.~~property, plant and equipment with a net recorded value of $3 million. In October 2020, DESC completed the conveyance of property, plant and equipment and funded this cash contribution.

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 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 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 which was denied. In December 2018, Santee Cooper filed its answer to the plaintiffs' fourth amended complaint and filed cross claims against DESC. 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 that Dominion Energy and Santee Cooper will establish a fund for the benefit of class members in the amount of $520 million, of which DESC’s portion is $320 million of shares of Dominion Energy common stock. Also in March 2020, the court granted preliminary approval for the settlement agreement. In July 2020, the court issued a final approval of the settlement agreement. ~~The~~

In September 2020, Dominion Energy issued $322 million of shares of Dominion Energy common stock to satisfy its obligation under the settlement ~~will become effective upon the expiration of a 30-day appellate period. This case is pending.~~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 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 ~~will be~~was dismissed ~~upon the effective date~~as part of the Santee Cooper Ratepayer Case ~~settlement. This case is pending.~~settlement described above.

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, 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 ~~will be~~was dismissed ~~upon the effective date~~as part of the Santee Cooper Ratepayer Case ~~settlement. This case is pending.~~settlement described above.

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 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 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 another lawsuit regarding the SCANA Merger Agreement to which DESC is not a party. 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 Metzler Lawsuit with another lawsuit regarding the SCANA Merger Agreement to which DESC is not a party. 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 initial lawsuits 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. In May 2020, SCANA filed a motion to ~~intervene.~~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 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 in 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 are estimated to be as much as $100 million for 100% of the NND Project.

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 pending.

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.

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 the proposed assessment, which remains pending.

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 of 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 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 deemed satisfied by the settlements in the SCANA Securities Class Action and the DESC Ratepayer Case. The proposed settlement is contingent on the review and approval of final documentation by SCANA, DESC and the Staff of the SEC’s Division of Enforcement and is subject to approval by the SEC and the U.S. District Court for the District of South Carolina. In June 2020, the U.S. Attorney’s Office for the District of South Carolina filed a motion to intervene and stay the SEC civil action, which the court granted. The stay is currently in effect but does not preclude the SEC’s Division of Enforcement from presenting the proposed settlement with SCANA and DESC to the SEC. 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. A 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 June 2020 and entered a guilty plea with the U.S. District Court for the District of South Carolina in July 2020. These matters are pending.

In December 2018, arbitration proceedings commenced between DESC and Cameco Corporation 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.

In September 2019, a South Carolina state court jury awarded a judgment to the estate of Jose Larios in a wrongful death suit filed in June 2017 against DESC, of which DESC was apportioned $19 million. DESC holds general liability insurance coverage which is expected to provide payment for substantially all DESC’s liability in this matter. In October 2019, DESC filed a motion requesting a reduction in the judgment or, in the alternative, a new trial. In November 2019, DESC’s motion for a new trial was granted, setting aside the entire verdict amount. This matter is pending.

Westinghouse’s Reorganization Plan became effective August 1, 2018. Initially, Westinghouse had projected that its Reorganization Plan would pay in full or nearly in full its pre-petition trade creditors, including several of the Westinghouse Subcontractors which have alleged non-payment by the Consortium for amounts owed for work performed on the NND Project and have filed liens on related property in Fairfield County, South Carolina. DESC is contesting approximately $285 million of such filed liens. Most of these asserted liens are “pre-petition” claims that relate to work performed by Westinghouse Subcontractors before the Westinghouse bankruptcy, although some of them are “post-petition” claims arising from work performed after the Westinghouse bankruptcy. 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. In addition, payments under the Toshiba Settlement are subject to reduction if Westinghouse pays Westinghouse Subcontractors holding pre-petition liens directly. Under these circumstances, DESC and Santee Cooper, each in its pro

rata share, would be required to make Citibank, N.A., which purchased the scheduled payments under the Toshiba Settlement, whole for reductions related to valid subcontractor and vendor pre-petition liens up to $60 million ($33 million for DESC's 55% share).

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 (i.e., post-petition) until termination of the IAA (the IAA Period). In the Westinghouse bankruptcy proceeding, deadlines were established for creditors of Westinghouse to assert the amounts owed to such creditors prior to the Westinghouse bankruptcy filing and during the IAA Period. Many of the Westinghouse Subcontractors have filed such claims. In December 2019, DESC and Santee Cooper entered into a confidential settlement agreement with W Wind Down Co LLC resolving claims relating to the IAA.

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. The Westinghouse Subcontractor claims in South Carolina state court include common law claims for pre-petition work, IAA Period work, and work after the termination of the IAA. Many of these claimants have also asserted construction liens against the NND Project site. While DESC cannot be assured that it will not have any exposure on account of unpaid Westinghouse Subcontractor claims, which claims DESC is presently disputing, DESC believes it is unlikely that it will be required to make payments on account of such claims.

Under Price-Anderson, DESC (for itself and on behalf of Santee-Cooper) maintains agreements of indemnity with the U.S. Nuclear Regulatory Commission that, together with private insurance, cover third-party liability arising from any nuclear incident occurring at Summer. Price-Anderson provides funds up to $13.8 billion for public liability claims that could arise from a single nuclear incident. Each nuclear plant is insured against this liability to a maximum of $450 million by American Nuclear Insurers with the remaining coverage provided by a mandatory program of deferred premiums that could be assessed, after a nuclear incident, against all owners of commercial nuclear reactors. Each reactor licensee is liable for up to $138 million per reactor owned for each nuclear incident occurring at any reactor in the U.S., provided that not more than $21 million of the liability per reactor would be assessed per year. DESC’s maximum assessment, based on its two-thirds ownership of Summer, would be $92 million per incident, but not more than $14 million per year. Both the maximum assessment per reactor and the maximum yearly assessment are adjusted for inflation at least every five years.

DESC currently maintains insurance policies (for itself and on behalf of Santee Cooper) with NEIL. The policies provide coverage to Summer for property damage and outage costs up to $2.75 billion resulting from an event of nuclear origin and up to $2.33 billion resulting from an event of a non-nuclear origin. The NEIL policies in aggregate, are subject to a maximum loss of $2.75 billion for any single loss occurrence. The NEIL policies permit retrospective assessments under certain conditions to cover insurer’s losses. Based on the current annual premium, DESC’s portion of the retrospective premium assessment would not exceed $24 million. DESC currently maintains an excess property insurance policy (for itself and on behalf of Santee Cooper) with EMANI. The policy provides coverage to Summer for property damage and outage costs up to $415 million resulting from an event of a non-nuclear origin. The EMANI policy permits retrospective assessments under certain conditions to cover insurer's losses. Based on the current annual premium, DESC's portion of the retrospective premium assessment would not exceed $2 million.

To the extent that insurable claims for property damage, decontamination, repair and replacement and other costs and expenses arising from an incident at Summer exceed the policy limits of insurance, or to the extent such insurance becomes unavailable in the future, and to the extent that DESC's rates would not recover the cost of any purchased replacement power, DESC will retain the risk of loss as a self-insurer. DESC has no reason to anticipate a serious nuclear or other incident. However, if such an incident were to occur, it likely would have a material impact on DESC's results of operations, cash flows and financial position.

In December 2019, DESC realigned its segments which resulted in the formation of a single primary operating segment. The historical information presented herein has been recast to reflect the current segment presentation.

The Corporate and Other segment 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.

In the ~~six~~nine months ended ~~June~~September 30, 2020, DESC reported after-tax net expense of $7$61 million for specific items in the Corporate and Other segment, all of which was attributable to its operating segment. In the ~~six~~nine months ended ~~June~~September 30, 2019, DESC reported after-tax net expenses of ~~$1.3~~$1.4 billion for specific items in the Corporate and Other segment, ~~with $1.4 billion~~all of which was attributable to its operating segment.

The net expense for specific items attributable to DESC’s operating segment in 2020 primarily related to $53 million ($40 million after-tax) of charges associated with litigation.

The net expense for specific items attributable to DESC’s operating segment in 2019 primarily related to the impact of the following items:

(millions)	External Revenue			Comprehensive Income (Loss) Available (Attributable) to Common Shareholder			External Revenue			Comprehensive Income (Loss) Available (Attributable) to Common Shareholder
Three Months Ended June 30, 2020
Three Months Ended September 30, 2020
Dominion Energy South Carolina	$	624		$	77		$	755		$	153
Corporate and Other		—			(8	)		0			(52	)
Consolidated Total	$	624		$	69		$	755		$	101

Three Months Ended June 30, 2019
Three Months Ended September 30, 2019
Dominion Energy South Carolina	$	698		$	88		$	795		$	168
Corporate and Other		—			(166	)		0			(25	)
Consolidated Total	$	698		$	(78	)	$	795		$	143

Six Months Ended June 30, 2020
Nine Months Ended September 30, 2020
Dominion Energy South Carolina	$	1,296		$	166		$	2,051		$	319
Corporate and Other		—			(9	)		0			(61	)
Consolidated Total	$	1,296		$	157		$	2,051		$	258

Six Months Ended June 30, 2019
Nine Months Ended September 30, 2019
Dominion Energy South Carolina	$	1,372		$	152		$	2,167		$	320
Corporate and Other		(1,009	)		(1,339	)		(1,009	)		(1,364	)
Consolidated Total	$	363		$	(1,187	)	$	1,158		$	(1,044	)

DESC owns 40% of Canadys Refined Coal, LLC, which is involved in the manufacturing and sale of refined coal to reduce emissions at ~~certain~~one of DESC's generating facilities. DESC accounts for this investment using the equity method. Purchases and sales of the related coal are recorded as other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss).

DESC purchases natural gas and related pipeline capacity from SEMI to serve its retail gas customers and to satisfy certain electric generation requirements. These purchases are included within gas purchased for resale or fuel used in electric generation, as applicable in the Consolidated Statements of Comprehensive Income (Loss).

DESS, on behalf of itself and its parent company, provides the following services to DESC, which are rendered at direct or allocated cost: information systems, telecommunications, customer support, marketing and sales, human resources, corporate compliance, purchasing, financial, risk management, public affairs, legal, investor relations, gas supply and capacity management, strategic planning, general administrative and retirement benefits. In addition, DESS processes and pays invoices for DESC and is reimbursed. Costs for these services include amounts capitalized. Amounts expensed are primarily recorded in other operations and maintenance - affiliated suppliers and other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss).

	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended September 30,				Nine Months Ended September 30,
(millions)	2020		2019		2020		2019		2020		2019		2020		2019
Purchases of coal from affiliate	$	—	$	34	$	—	$	62	$	0	$	38	$	0	$	100
Sales of coal to affiliate		—		34		—		62		0		37		0		99
Purchases of fuel used in electric generation from affiliate		—		10		—		43		0		0		0		43
Direct and allocated costs from DESS⁽¹⁾		63		82		130		140		72		67		202		207
Operating Revenues - Electric from sales to affiliate		2		1		2		2		1		1		3		3
Operating Expenses - Other taxes from affiliate		1		1		4		3		3		2		7		5
Purchases of electricity from solar affiliates		4		3		6		4		4		3		10		7
Demand and transportation charges from DECG - Fuel used in electric generation		5		6		9		9		5		6		14		15
Demand and transportation charges from DECG - Gas purchased for resale		11		11		22		23		11		10		33		33

(millions)	June 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
Receivable from Canadys Refined Coal, LLC	$	—	$	2	$	0	$	2
Payable to Canadys Refined Coal, LLC		—		2		0		2
Payable to DESS		59		76		63		76
Payable to Public Service Company of North Carolina, Incorporated		3		8		4		8
Payable to solar affiliates		2		—		1		0
Receivable from DECG		—		1		0		1
Payable to DECG		5		5		5		5

	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2020			2019			2020			2019			2020			2019			2020			2019
Revenues from contracts with customers	$	—		$	2		$	1		$	3		$	0		$	1		$	1		$	4
Other income		4			2			7			6			3			11			10			17
Other expense		(3	)		(15	)		(5	)		(25	)		(6	)		(23	)		(11	)		(48	)
Allowance for equity funds used during construction		1			2			2			2			1			(2	)		3			0
Other income (expense), net	$	2		$	(9	)	$	5		$	(14	)	$	(2	)	$	(13	)	$	3		$	(27	)

Non-service cost components of pension and other postretirement benefits are included in other income (expense).

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

MD&A provides management’s narrative analysis of its consolidated results of operations. MD&A should be read in conjunction with DESC's Consolidated Financial Statements. DESC meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

This report contains statements concerning DESC’s 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.

DESC makes 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:

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019, as updated in Part II. Item 1A. Risk Factors in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

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

	Second Quarter							Year-To-Date							Third Quarter							Year-To-Date
(millions)	2020		2019			$ Change		2020		2019			$ Change		2020		2019		$ Change			2020		2019			$ Change
Net income (loss)	$	67	$	(70	)	$	137	$	160	$	(1,173	)	$	1,333	$	106	$	142	$	(36	)	$	266	$	(1,031	)	$	1,297

Net income ~~increased $137 million,~~decreased 25%, primarily due to ~~the absence of~~ charges ~~related to litigation and a voluntary retirement program.~~for litigation.

Net income increased $1.3 billion, primarily due to the absence of ~~charges~~a charge for refunds of amounts previously collected from retail electric customers for the NND Project, a decrease in charges for certain regulatory assets and utility plant for which DESC committed to forgo recovery, a reduction in charges for litigation and the absence of charges for a voluntary retirement program.

	Second Quarter								Year-To-Date								Third Quarter									Year-To-Date
(millions)	2020		2019			$ Change			2020		2019			$ Change			2020			2019			$ Change			2020		2019			$ Change
Operating revenues	$	624	$	698		$	(74	)	$	1,296	$	363		$	933		$	755		$	795		$	(40	)	$	2,051	$	1,158		$	893
Fuel used in electric generation		95		143			(48	)		199		280			(81	)		135			167			(32	)		334		447			(113	)
Purchased power		25		12			13			38		20			18			25			15			10			63		35			28
Gas purchased for resale		34		44			(10	)		91		121			(30	)		33			37			(4	)		124		158			(34	)
Net revenue		470		499			(29	)		968		(58	)		1,026			562			576			(14	)		1,530		518			1,012
Other operations and maintenance		143		195			(52	)		288		339			(51	)		142			144			(2	)		430		483			(53	)
Impairment of assets and other charges		—		100			(100	)		2		371			(369	)		63			—			63			65		371			(306	)
Depreciation and amortization		118		115			3			236		217			19			118			116			2			354		333			21
Other taxes		65		72			(7	)		127		141			(14	)		59			55			4			186		196			(10	)
Other income (expense), net		2		(9	)		11			5		(14	)		19			(2	)		(13	)		11			3		(27	)		30
Interest charges		58		63			(5	)		116		136			(20	)		57			66			(9	)		173		202			(29	)
Income tax expense (benefit)		21		15			6			44		(103	)		147			15			40			(25	)		59		(63	)		122

Other operations and maintenance decreased ~~27%~~1%, primarily due to a decrease in salaries, wages and benefits and administrative expenses.

Impairment of assets and other charges increased $63 million, due to charges associated with litigation ($51 million) and an impairment charge of certain nonutility property ($12 million).

Other income (expense), net decreased 85%, primarily due to the absence of a charge related to a voluntary retirement program ($50 million) and a decrease in salaries, wages and benefits and administrative expenses ($4 million), partially offset by an increase in allowance for credit risk on customer accounts related to COVID-19 ($5 million).

~~Impairment of assets and other charges~~ ~~decreased $100 million, due to the absence of a charge related to litigation.~~

~~Other taxes~~ ~~decreased 10%, due to a decrease in property taxes ($4~~11 million) and the absence of ~~a charge~~accrued penalties related to ~~a voluntary retirement program~~unrecognized tax benefits ($~~3 million).~~

~~Other income (expense), net~~ ~~increased $11 million, primarily due to the absence of a charge related to a voluntary retirement program.~~

~~Income tax expense~~ ~~increased 40%, primarily due to higher pre-tax income ($30~~7 million) partially offset by the absence of ~~changes~~a gain on the sale of certain warranty service contracts ($7 million).

Interest charges decreased 14%, primarily due to a decrease in interest charges on unrecognized tax benefits ($2312 million) partially offset by the absence of the reversal of accrued interest related to a refund reserve ($7 million).

Income tax expense decreased 63%, primarily due to lower pre-tax income ($15 million) and changes in excess deferred income tax amortization associated with the gain on the sale of SEMI’s assets ($7 million).

Other operations and maintenance decreased ~~15%~~11%, primarily due to the absence of a charge related to a voluntary retirement program ($5051 million), a decrease in salaries, wages and benefits and administrative expenses ($10 million) and lower legal and NND Project wind down costs ($~~8 million) and a decrease in salaries, wages and benefits and~~

~~administrative expenses ($5~~10 million) partially offset by an increase in allowance for credit risk on customer accounts related to COVID-19 ($58 million).

Impairment of assets and other charges decreased ~~99%~~82%, ~~primarily~~ due to a reduction in charges associated with litigation ($~~266~~215 million) and a decrease in charges for utility plant for which DESC committed to forgo recovery ($103 million).

~~Other taxes~~ ~~decreased 10%~~, ~~primarily due to a decrease in~~partially offset by an impairment charge of certain nonutility property ~~taxes~~ ($~~10 million) and the absence of a charge related to a voluntary retirement program ($3~~12 million).

Other income (expense), net ~~increased $19~~decreased $30 million, primarily due to the absence of a charge related to a voluntary retirement program ($920 million) and the absence of accrued penalties related to unrecognized tax benefits ($7 million) partially offset by the absence of a ~~decrease in donations~~gain on the sale of certain warranty service contracts ($47 million).

Interest charges decreased ~~15%~~14%, primarily due to lower long-term debt principal balances primarily as a result of the debt tender offers completed in 2019 ($1519 million), a decrease in interest charges on unrecognized tax benefits ($11 million) and lower money pool interest ($56 million) partially offset by higher interest related to the intercompany ~~credit agreement~~borrowings ($65 million).

Income tax expense increased ~~$147~~$122 million, primarily due to higher pretax income ($383 million) partially offset by the absence of a charge for certain income tax-related regulatory assets acquired in the SCANA Combination for which ~~DESC~~Dominion Energy committed to forgo recovery ($198 million) ~~and~~, the absence of changes in unrecognized tax benefits ($6359 million)~~, partially offset by higher pretax~~ and changes in excess deferred income tax amortization associated with the gain on the sale of SEMI’s assets ($~~409~~7 million).

Senior management of DESC, including DESC’s CEO and CFO, evaluated the effectiveness of DESC’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, DESC’s CEO and CFO have concluded that DESC’s disclosure controls and procedures are effective.

There were no changes that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, DESC’s internal control over financial reporting.

From time to time, DESC is alleged to be in violation or in default under orders, statutes, rules or regulations relating to the environment, compliance plans imposed upon or agreed to by DESC, or permits issued by various local, state and/or federal agencies for the construction or operation of facilities. Administrative proceedings may also be pending on these matters. In addition, DESC is involved in various legal proceedings from time to time, whether in the ordinary course of business or particularly following the abandonment of the NND Project.

See the following for discussions on various legal, environmental and other regulatory proceedings to which DESC is a party, which information is incorporated herein by reference:

DESC’s business is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond its control. A number of these risk factors have been identified in DESC’s Annual Report on Form 10-K for the year ended December 31, 2019 and updated in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which should be taken into consideration when reviewing the information contained in this report. There have been no material changes with regard to the risk factors previously disclosed in DESC's Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 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.

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.

		I.R.S. Employer
Commission File Number	Exact name of registrant as specified in its charter	Identification Number

001-3375	DOMINION ENERGY SOUTH CAROLINA, INC.	57-0248695

	south carolina
	(State or other jurisdiction of incorporation or organization)

	400 OTARRE PARKWAY
	CAYCE, South Carolina	29033
	(Address of principal executive offices)	(Zip Code)

	(803) 217-9000
	(Registrants’ telephone number)

		Page
	Glossary of Terms	3

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	5

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30

Item 4.	Controls and Procedures	33

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 6.	Exhibits	35

Abbreviation or Acronym		Definition
MGP		Manufactured gas plant
NEIL		Nuclear Electric Insurance Limited
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
NO_x		Nitrogen oxide
NSPS		New Source Performance Standards
Order 1000		Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development
Price-Anderson		Price-Anderson Amendments Act of 1988
PSD		Prevention of significant deterioration
Questar Gas		Questar Gas Company, a wholly-owned subsidiary of Dominion Energy
Reorganization Plan		Modified Second Amended Joint Chapter 11 Plan of Reorganization, filed by Westinghouse
RICO		Racketeer Influenced and Corrupt Organizations Act
Santee Cooper		South Carolina Public Service Authority
SCANA		The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries (other than DESC) 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 SCANA Merger Agreement
SCANA Merger Agreement		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 Retail Gas Holdings, LLC, a partnership between Dominion Energy and Interstate Gas Supply Inc.
SO₂		Sulfur dioxide
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
Summer		V. C. Summer nuclear power station
Toshiba		Toshiba Corporation, parent company of Westinghouse
Toshiba Settlement		Settlement Agreement dated as of July 27, 2017, by and among Toshiba, DESC and Santee Cooper
VIE		Variable interest entity
Virginia Power		The legal entity, Virginia Electric and Power Company, a wholly-owned subsidiary of Dominion Energy, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries
VOC		Volatile organic compounds
WECTEC		WECTEC Global Project Services, Inc., a wholly-owned subsidiary of Westinghouse
Westinghouse		Westinghouse Electric Company LLC
Westinghouse Subcontractors		Subcontractors and suppliers to the Consortium

Exhibit No.		Description
3.1		Amended and Restated Articles of Incorporation, effective April 29, 2019 (Exhibit 3.1, Form 8-K filed April 29, 2019, File No. 1-3375).
3.2		Amended and Restated Bylaws, effective April 29, 2019 (Exhibit 3.2, Form 8-K filed April 29, 2019, File No. 1-3375).
4.1		Dominion Energy South Carolina, Inc. agrees to furnish to the U.S. Securities and Exchange Commission upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of its total consolidated assets.
10.1		First Amendment, dated as of October 30, 2020, to the Fourth Amended and Restated Revolving Credit Agreement, dated as of March 22, 2019 among Dominion Energy, Inc., Virginia Electric and Power Company, Dominion Energy Gas Holdings, LLC, Questar Gas Company, Dominion Energy South Carolina, Inc., (f/k/a South Carolina Electric & Gas Company), JPMorgan Chase Bank, N.A., as Administrative Agent, Mizuho Bank, Ltd., Bank of America, N.A., The Bank of Nova Scotia and Wells Fargo Bank, N.A., as Syndication Agents, and the other lenders named therein (filed herewith).
31.a		Certification by Chief Executive Officer of Dominion Energy South Carolina, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.b		Certification by Chief Financial Officer of Dominion Energy South Carolina, Inc. 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 South Carolina, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101		The following financial statements from Dominion Energy South Carolina, Inc.’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, 2020, filed on ~~August 5,~~November 6, 2020, formatted in iXBRL (Inline eXtensible Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Changes in Common Equity, and (v) the Notes to Consolidated Financial Statements.
104		Cover Page Interactive Data File (formatted in iXBRL (Inline eXtensible Reporting Language) and contained in Exhibit 101).

	DOMINION ENERGY SOUTH CAROLINA, INC.
		(Registrant)

	By:	/s/ Michele L. Cardiff
Date: ~~August 5,~~November 6, 2020		Michele L. Cardiff
		Senior Vice President, Controller and Chief Accounting Officer


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


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

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

(millions)		Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
Three Months Ended September 30,	Location	2020			2019
Derivative type and location of gains (losses):
Interest rate contracts:	Interest charges	$	0		$	(1	)
Total interest rate contracts		$	0		$	(1	)
Nine Months Ended September 30,
Derivative type and location of gains (losses):
Interest rate contracts:	Interest charges	$	(1	)	$	(1	)
Total interest rate contracts		$	(1	)	$	(1	)