0000715957 d:~~ProvisionForFutureCostOfRemovalMember~~VirginiaElectricAndPowerCompanyMember d:~~VirginiaElectricAndPowerCompanyMember 2021-03-31~~EnergyStorageMember 2021-09-01 2021-09-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

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

For the quarterly period ended March 31, ~~2021~~2022

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

For the transition period from to

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

001-08489	DOMINION ENERGY, INC.	54-1229715

000-55337	VIRGINIA ELECTRIC AND POWER COMPANY	54-0418825

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

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

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


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

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

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

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

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

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

Dominion Energy, Inc.

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

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

Virginia Electric and Power Company

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

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

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

At April ~~23, 2021,~~28, 2022, the latest practicable date for determination, Dominion Energy, Inc. had ~~806,524,337~~811,270,354 shares of common stock outstanding and Virginia Electric and Power Company had 274,723 shares of common stock outstanding. Dominion Energy, Inc. is the sole holder of Virginia Electric and Power Company’s common stock.

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

VIRGINIA ELECTRIC AND POWER COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE FORMAT.

COMBINED INDEX

		Page Number
	Glossary of Terms	3

	PART I. Financial Information

Item 1.	Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	6968
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	82
Item 4.	Controls and Procedures	83

	PART II. Other Information

Item 1.	Legal Proceedings	84
Item 1A.	Risk Factors	84
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	84
Item 5.	Other Information	84
Item 6.	Exhibits	8586

GLOSSARY OF TERMS

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

Abbreviation or Acronym		Definition
2019 Equity Units		Dominion Energy’s 2019 Series A Equity Units issued in June 2019, initially in the form of 2019 Series A Corporate Units, consisting of a stock purchase contract and a 1/10 interest in a share of the Series A Preferred Stock
2017 Tax Reform Act		An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017
2021 Triennial Review		Virginia Commission review of Virginia Power’s earned return on base rate generation and distribution services for the four successive 12-month test periods beginning January 1, 2017 and ending December 31, 2020
ACE Rule		Affordable Clean Energy Rule
AFUDC		Allowance for funds used during construction
Align RNG		Align RNG, LLC, a joint venture between Dominion Energy and Smithfield Foods, Inc.
AOCI		Accumulated other comprehensive income (loss)
ARO		Asset retirement obligation
Atlantic Coast Pipeline		Atlantic Coast Pipeline, LLC, a limited liability company owned by Dominion Energy and Duke Energy
Atlantic Coast Pipeline Project		A previously proposed approximately 600-mile natural gas pipeline running from West Virginia through Virginia to North Carolina which would have been owned by Dominion Energy and Duke Energy
bcf		Billion cubic feet
Bear Garden		A ~~590~~622 MW combined-cycle, natural gas-fired power station in Buckingham County, Virginia
~~BHE~~		The legal entity, Berkshire Hathaway Energy Company, one or more of its consolidated subsidiaries (including Dominion Energy Gas, Dominion Energy Midstream and Cove Point effective November 1, 2020), or the entirety of Berkshire Hathaway Energy Company and its consolidated subsidiaries
~~Brookfield~~		~~Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management Inc.~~
CAA		Clean Air Act
CCR		Coal combustion residual
CCRO		Customer credit reinvestment offset
CEO		Chief Executive Officer
CEP		Capital Expenditure Program, as established by House Bill 95, Ohio legislation enacted in 2011, deployed by East Ohio to recover certain costs associated with capital investment
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as Superfund
CFO		Chief Financial Officer
Clearway		The legal entity, Clearway Energy, Inc. (a subsidiary of Global Infrastructure Partners), one or more of its consolidated subsidiaries, or the entirety of Clearway Energy, Inc. and its consolidated subsidiaries
CO₂		Carbon dioxide
Colonial Trail West		A 142 MW utility-scale solar power station located in Surry County, Virginia
Companies		Dominion Energy and Virginia Power, collectively
Contracted Assets		Contracted Assets operating segment
Cooling degree days		Units measuring the extent to which the average daily temperature is greater than 65 degrees Fahrenheit, or 75 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 75 degrees, as applicable, and the average temperature for that day
Cove Point		Cove Point LNG, LP (formerly known as Dominion Energy Cove Point LNG, LP)

CPCN

Certificate of Public Convenience and Necessity

CVOW Commercial Project		A proposed 2.6 GW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters adjacent to the CVOW Pilot Project and associated interconnection facilities in and around Virginia Beach, Virginia
CVOW Pilot Project		A 12 MW wind generation facility 27 miles off the coast of Virginia Beach, Virginia in federal waters
CWA		Clean Water Act
~~DCP~~DEQPS		The legal entity, CPMLP Holding Company, LLC (formerly known as Dominion Cove Point, LLC), one or more of its consolidated subsidiaries (including Dominion Energy Midstream), or the entirety of CPMLP Holding Company, LLC and its consolidated subsidiaries
~~DECGS~~		~~Carolina Gas~~MountainWest Pipeline Services, Inc. (formerly known as Dominion Energy ~~Carolina Gas Services, Inc.)~~
~~DEQPS~~		~~Dominion Energy~~ Questar Pipeline Services, Inc.)
DES		Dominion Energy Services, Inc.
DESC		The legal entity, Dominion Energy South Carolina, Inc., one or more of its consolidated entities or operating segment, or the entirety of Dominion Energy South Carolina, Inc. and its consolidated entities
~~DETI~~		~~Eastern Gas Transmission and Storage, Inc. (formerly known as Dominion Energy Transmission, Inc.)~~
DGI		Dominion Generation, Inc.
~~DGP~~		~~Eastern Gathering and Processing, Inc. (formerly known as Dominion Gathering and Processing, Inc.)~~
~~DMLPHCII~~		~~Eastern MLP Holding Company II, LLC (formerly known as Dominion MLP Holding Company II, LLC)~~
DOE		U.S. Department of Energy
Dominion Energy		The legal entity, Dominion Energy, Inc., one or more of its consolidated subsidiaries (other than Virginia Power) 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), one or more of its consolidated subsidiaries (consisting of DETI, DCP, DMLPHCII and Dominion Iroquois), or the entirety of Eastern Energy Gas Holdings, LLC and its consolidated subsidiaries
~~Dominion Energy Midstream~~		~~The~~ legal entity, Northeast Midstream Partners, LP (formerly known as Dominion Energy Midstream Partners, LP), one or more of its consolidated subsidiaries, or the entirety of Northeast Midstream Partners, LP and its consolidated subsidiaries
~~Dominion Energy~~ Questar Pipeline		The legal entity, MountainWest Pipeline, LLC (formerly known as Dominion Energy Questar Pipeline, ~~LLC,~~ LLC), one or more of its consolidated subsidiaries (including its 50% noncontrolling interest in White River Hub), or the entirety of Dominion Energy Questar Pipeline, LLC and its consolidated subsidiaries
Dominion Energy South Carolina		Dominion Energy South Carolina operating segment
Dominion Energy Virginia		Dominion Energy Virginia operating segment
Dominion ~~Iroquois~~Privatization		~~The legal entity Iroquois Inc. (formerly known as~~ Dominion ~~Iroquois, Inc.), one or more of its consolidated subsidiaries, or the entirety of Iroquois, Inc.~~Utility Privatization, LLC, a partnership between Dominion Energy and ~~its consolidated subsidiaries, which held a 50% noncontrolling interest in Iroquois~~Patriot
DSM		Demand-side management
Dth		Dekatherm
Duke Energy		The legal entity, Duke Energy Corporation, one or more of its consolidated subsidiaries, or the entirety of Duke Energy Corporation and its consolidated subsidiaries
East Ohio		The East Ohio Gas Company, doing business as Dominion Energy Ohio
EnergySolutions		EnergySolutions, LLC
EPA		U.S. Environmental Protection Agency
EPS		Earnings per common share
FERC		Federal Energy Regulatory Commission
~~FILOT~~		~~Fee in lieu of taxes~~

Four Brothers		Four Brothers Solar, LLC, a limited liability company owned by Dominion Energy (through December 2021) and Four Brothers Holdings, LLC, a subsidiary of ~~GIP~~
~~Fowler Ridge~~		~~Fowler I Holdings LLC, a wind-turbine facility~~ ~~in Benton County, Indiana~~Clearway
FTRs		Financial transmission rights
GAAP		U.S. generally accepted accounting principles
Gas Distribution		Gas Distribution operating segment
~~GENCO~~		~~South Carolina Generating Company, Inc.~~
GHG		Greenhouse gas
~~GIP~~		~~The legal entity, Global Infrastructure Partners, one or more of its consolidated subsidiaries, or the entirety of Global Infrastructure Partners and its consolidated subsidiaries~~
Granite Mountain		Granite Mountain Holdings, LLC, a limited liability company owned by Dominion Energy (through December 2021) and Granite Mountain Renewables, LLC, a subsidiary of ~~GIP~~Clearway
~~Grassfield Solar~~GW		~~A proposed 20 MW utility-scale solar power station located in Chesapeake, Virginia~~
~~Greensville County~~		~~A 1,588 MW combined-cycle, natural gas-fired power station in Greensville County, Virginia~~
~~GT&S Transaction~~		~~The sale by Dominion Energy~~ ~~to BHE~~ of Dominion Energy Gas, DGP, DECGS, Eastern Energy Field Services, Inc. (formerly known as Dominion Energy Field Services, Inc.) and Modular LNG Holdings, Inc. (formerly known as Dominion Modular LNG Holdings, Inc.) (which holds a 50% ~~noncontrolling interest in JAX LNG) pursuant to a purchase and sale agreement entered into on July 3, 2020, which was completed on November 1, 2020~~
~~GTSA~~		~~Virginia Grid Transformation and Security Act of 2018~~Gigawatt
Heating degree days		Units measuring the extent to which the average daily temperature is less than 65 degrees Fahrenheit, or 60 degrees Fahrenheit in DESC’s service territory, calculated as the difference between 65 or 60 degrees, as applicable, and the average temperature for that day

Hope		Hope Gas, Inc., doing business as Dominion Energy West Virginia
Iron Springs		Iron Springs Holdings, LLC, a limited liability company owned by Dominion Energy (through December 2021) and Iron Springs Renewables, LLC, a subsidiary of ~~GIP~~
~~Iroquois~~		~~Iroquois Gas Transmission System, L.P.~~Clearway
ISO		Independent system operator
~~JAX LNG~~Jones Act		~~JAX LNG, LLC, an LNG supplier in Florida serving~~The Coastwise Merchandise Statute (commonly known as the ~~marine and LNG markets~~Jones Act) 46 U.S.C. §55102 regulating U.S. maritime commerce
Kewaunee		Kewaunee nuclear power station
kV		Kilovolt
LNG		Liquefied natural gas
MD&A		Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGD		Million gallons aper day
Millstone		Millstone nuclear power station
~~Millstone 2019 power purchase agreements~~		~~Power purchase agreements with Eversource Energy and The United Illuminating Company for Millstone to provide nine million MWh per year of electricity for ten years~~
MW		Megawatt
MWh		Megawatt hour
NAV		Net asset value
NND Project		V.C. Summer Units 2 and 3 nuclear development project under which DESC and Santee Cooper undertook to construct two Westinghouse AP1000 Advanced Passive Safety nuclear units in Jenkinsville, South Carolina
~~Norge Solar~~North Anna		~~A proposed 20 MW utility-scale solar~~North Anna nuclear power station ~~located in James City County, Virginia~~

North Carolina Commission		North Carolina Utilities Commission
NO_X		~~Nitrogen oxide~~
NRC		U.S. Nuclear Regulatory Commission
Ohio Commission		Public Utilities Commission of Ohio
Order 1000		Order issued by FERC adopting requirements for electric transmission planning, cost allocation and development
Patriot		Patriot Utility Privatizations, LLC, a partnership between Foundation Infrastructure Partners, LLC and John Hancock Life Insurance Company (U.S.A.) and affiliates
PIR		Pipeline Infrastructure Replacement program deployed by East Ohio
PJM		PJM Interconnection, LLC
PSD		Prevention of significant deterioration
PSNC		Public Service Company of North Carolina, Incorporated, doing business as Dominion Energy North Carolina
Q-Pipe Group		Collectively, Dominion Energy Questar Pipeline, DEQPS and MountainWest Energy Holding Company, LLC (formerly known as QPC Holding Company, LLC and its subsidiary MountainWest Southern Trails Pipeline Company (formerly known as Questar Southern Trails Pipeline Company))
Q-Pipe Transaction		~~The~~A previously proposed sale by Dominion Energy to ~~BHE~~Berkshire Hathaway Energy Company of ~~Dominion Energy Questar Pipeline, DEQPS and QPC Holding Company, LLC (including its subsidiary Questar Southern Trails Pipeline Company),~~the Q-Pipe Group pursuant to a purchase and sale agreement entered into on October 5, 2020 and terminated on July 9, 2021
Questar Gas		Questar Gas Company, doing business as Dominion Energy Utah, Dominion Energy Wyoming and Dominion Energy Idaho
~~Regulation Act~~RGGI		Legislation effective July 1, 2007, that amended the Virginia Electric Utility Restructuring Act and fuel factor statute, which legislation is also known as the Virginia Electric Utility Regulation Act, as amended in 2015 and 2018
~~RICO~~		~~Racketeer Influenced and Corrupt Organizations Act~~
~~Rider B~~		~~A rate adjustment clause associated with the recovery of costs related to the conversion of three of~~ ~~Virginia~~ ~~Power’s coal-fired power stations to biomass~~Regional Greenhouse Gas Initiative
Rider CCR		A rate adjustment clause associated with the recovery of costs related to the removal of CCR at certain power stations
Rider CE		A rate adjustment clause associated with the recovery of costs related to certain renewable generation facilities in Virginia

~~Rider GV~~		~~A rate adjustment clause associated with the recovery of costs related to Greensville County~~
Rider R		A rate adjustment clause associated with the recovery of costs related to Bear Garden
Rider SRGGI		A rate adjustment clause associated with the recovery of costs related to the ~~Virginia City Hybrid Energy Center~~purchase of allowances through the RGGI market-based trading program for CO₂
Rider SNA		A rate adjustment clause associated with costs relating to the preparation of the applications for subsequent license renewal to the NRC to extend the operating licenses of Surry and North Anna and related projects
Rider U		A rate adjustment clause associated with the recovery of costs of new underground distribution facilities
Rider US-3		A rate adjustment clause associated with the recovery of costs related to Colonial Trail West and Spring Grove 1
Rider US-4		A rate adjustment clause associated with the recovery of costs related to Sadler Solar
~~Rider W~~		~~A rate adjustment clause associated with the recovery of costs related to Warren County~~
ROE		Return on equity
RTO		Regional transmission organization
Sadler Solar		~~An approximately~~A 100 MW ~~proposed~~ utility-scale solar power station located in Greensville County, Virginia, also referred to as Dry Bread
Santee Cooper		South Carolina Public Service Authority
~~SBL Holdco~~		~~SBL Holdco, LLC, a wholly-owned subsidiary of DGI~~
SCANA		The legal entity, SCANA Corporation, one or more of its consolidated subsidiaries, or the entirety of SCANA Corporation and its consolidated subsidiaries
SCANA Combination		Dominion Energy’s acquisition of SCANA completed on January 1, 2019 pursuant to the terms of the agreement and plan of merger entered on January 2, 2018 between Dominion Energy and SCANA

SCANA Merger Approval Order		Final order issued by the South Carolina Commission on December 21, 2018 setting forth its approval of the SCANA Combination
~~SCDHEC~~		~~South Carolina Department of Health and Environmental Control~~
SCDOR		South Carolina Department of Revenue
SEC		U.S. Securities and Exchange Commission
Series A Preferred Stock		Dominion Energy’s 1.75% Series A Cumulative Perpetual Convertible Preferred Stock, without par value, with a liquidation preference of $1,000 per share
Series B Preferred Stock		Dominion Energy’s 4.65% Series B Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share
Series C Preferred Stock		Dominion Energy’s 4.35% Series C Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock, without par value, with a liquidation preference of $1,000 per share
South Carolina Commission		Public Service Commission of South Carolina
Southwest Gas		The legal entity, Southwest Gas Holdings, Inc., one or more of its consolidated subsidiaries, or the entirety of Southwest Gas Holdings, Inc. and its consolidated subsidiaries
Spring Grove 1		A 98 MW utility-scale solar power station located in Surry County, Virginia
Standard & Poor’s		Standard & Poor’s Ratings Services, a division of S&P Global Inc.
Summer		V.C. Summer nuclear power station
Surry		Surry nuclear power station
~~Sycamore Solar~~		~~A proposed 42 MW utility-scale solar power station located in Pittsylvania County, Virginia~~
Terra Nova Renewable Partners		AThe legal entity, Terra Nova Renewable Partners, LLC, a partnership comprised primarily of institutional investors advised by J.P. Morgan Asset Management-Global Real Assets, or one or more of its consolidated subsidiaries
Three Cedars		Granite Mountain and Iron Springs, collectively
Ullico		The legal entity, Ullico Inc., one or more of its consolidated subsidiaries, or the entirety of Ullico Inc. and its consolidated subsidiaries
Utah Commission		Utah Public Service Commission
VCEA		Virginia Clean Economy Act of March 2020
VEBA		Voluntary Employees’ Beneficiary Association

VIE		Variable interest entity
~~Virginia City Hybrid Energy Center~~		~~A 610 MW baseload carbon-capture compatible, clean coal powered electric generation facility in Wise County, Virginia~~
Virginia Commission		Virginia State Corporation Commission
Virginia Power		The legal entity, Virginia Electric and Power Company, one or more of its consolidated subsidiaries or operating segment, or the entirety of Virginia Electric and Power Company and its consolidated subsidiaries
~~Warren County~~West Virginia Commission		~~A 1,350 MW combined-cycle, natural gas-fired power station in Warren County,~~Public Service Commission of West Virginia
~~WECTEC~~		~~WECTEC Global Project Services, Inc., a wholly-owned subsidiary of Westinghouse~~
Westinghouse		Westinghouse Electric Company LLC
Wexpro		The legal entity, Wexpro Company, one or more of its consolidated subsidiaries, or the entirety of Wexpro Company and its consolidated subsidiaries
White River Hub		MountainWest White River Hub, LLC (formerly known as White River Hub, LLC)
Wisconsin Commission		Public Service Commission of Wisconsin
WP&L		Wisconsin Power and Light Company, a subsidiary of Alliant Energy Corporation
WPSC		Wisconsin Public Service Corporation, a subsidiary of WEC Energy Group
Wrangler		Wrangler Retail Gas Holdings, LLC, a partnership between Dominion Energy (through March 2022) and Interstate Gas Supply, Inc.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,					Three Months Ended March 31,
	2021		2020			2022			2021
(millions, except per share amounts)
Operating Revenue	$	3,870	$	3,938		$	4,279		$	3,870
Operating Expenses
Electric fuel and other energy-related purchases		550		657			678			550
Purchased electric capacity		11		2			13			11
Purchased gas		484		434			645			484
Other operations and maintenance		987		891			1,026			987
Depreciation, depletion and amortization		608		578			698			608
Other taxes		257		240			253			257
Impairment of assets and other charges		95		768
Impairment of assets and other charges (benefits)							(10	)		95
Total operating expenses		2,992		3,570			3,303			2,992
Income from operations		878		368			976			878
Other income (expense)		367		(454	)
Earnings from equity method investees							80			80
Other income							46			287
Interest and related charges		53		432			174			53
Income (loss) from continuing operations including noncontrolling interests before income tax expense (benefit)		1,192		(518	)
Income tax expense (benefit)		212		(50	)
Net Income (Loss) From Continuing Operations Including Noncontrolling Interests		980		(468	)
Net Income From Discontinued Operations Including Noncontrolling Interests⁽¹⁾⁽²⁾		28		229
Net Income (Loss) Including Noncontrolling Interests		1,008		(239	)
Income from continuing operations including noncontrolling interests before income tax expense							928			1,192
Income tax expense							236			212
Net Income From Continuing Operations							692			980
Net Income From Discontinued Operations⁽¹⁾							19			28
Net Income Including Noncontrolling Interests							711			1,008
Noncontrolling Interests		—		31			—			—
Net Income (Loss) Attributable to Dominion Energy	$	1,008	$	(270	)
Net Income Attributable to Dominion Energy						$	711		$	1,008
Amounts attributable to Dominion Energy
Net Income (Loss) from continuing operations	$	980	$	(466	)
Net Income from discontinued operations		28		196
Net Income (Loss) attributable to Dominion Energy	$	1,008	$	(270	)
Net income from continuing operations						$	692		$	980
Net income from discontinued operations							19			28
Net income attributable to Dominion Energy						$	711		$	1,008
EPS - Basic
Net income (loss) from continuing operations	$	1.19	$	(0.57	)
Net income from continuing operations						$	0.82		$	1.19
Net income from discontinued operations		0.04		0.23			0.02			0.04
Net income (loss) attributable to Dominion Energy	$	1.23	$	(0.34	)
Net income attributable to Dominion Energy						$	0.84		$	1.23
EPS - Diluted
Net income (loss) from continuing operations	$	1.19	$	(0.57	)
Net income from continuing operations						$	0.81		$	1.19
Net income from discontinued operations		0.04		0.23			0.02			0.04
Net income (loss) attributable to Dominion Energy	$	1.23	$	(0.34	)
Net income attributable to Dominion Energy						$	0.83		$	1.23

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

~~(2)~~

Includes income tax expense of $7$6 million and ~~$31~~$7 million for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,
	2021			2020			2022			2021
(millions)
Net income (loss) including noncontrolling interests	$	1,008		$	(239	)
Net income including noncontrolling interests							$	711		$	1,008
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾		39			(266	)
Changes in unrealized net gains (losses) on investment securities⁽²⁾		(31	)		9
Changes in net unrecognized pension and other postretirement benefit costs⁽³⁾		6			—
Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾								25			39
Changes in unrealized net gains (losses) on investment securities⁽²⁾								(62	)		(31	)
Changes in net unrecognized pension and other postretirement benefit costs⁽³⁾								28			6
Amounts reclassified to net income (loss):
Net derivative losses-hedging activities⁽⁴⁾		13			22
Net realized (gains) losses on investment securities⁽⁵⁾		1			(9	)
Net pension and other postretirement benefit costs⁽⁶⁾		18			19
Total other comprehensive income (loss)		46			(225	)
Comprehensive income (loss) including noncontrolling interests		1,054			(464	)
Net derivative (gains) losses-hedging activities⁽⁴⁾								10			13
Net realized (gains) losses on investment securities⁽⁵⁾								3			1
Net pension and other postretirement benefit costs⁽⁶⁾								17			18
Changes in other comprehensive income from equity method investees⁽⁷⁾								1			0
Total other comprehensive income								22			46
Comprehensive income including noncontrolling interests								733			1,054
Comprehensive income attributable to noncontrolling interests		—			31			—			—
Comprehensive income (loss) attributable to Dominion Energy	$	1,054		$	(495	)
Comprehensive income attributable to Dominion Energy							$	733		$	1,054

(1)	Net of ~~$(13)~~ $(8)million and ~~$93~~ $(13)million tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(2)	Net of $19 million and $10 million tax for the three months ended March 31, 2022 and 2021, respectively.

(3)	Net of $(10) millionand $(4) million tax for the three months ended March 31, ~~2021~~2022 and ~~2020, respectively.~~

~~(3)~~

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

(4)	Net of $(4) million and ~~$(7)~~$(4) million tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(5)	Net of $0 $(1)million and ~~$4 million~~$— tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(6)	Net of $(6) and $(7) ~~million~~tax for the three months ended March 31, 2022 and ~~$(5)~~ 2021, respectively.

(7)	Net of $— and $—million tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾			March 31, 2022			December 31, 2021⁽¹⁾
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	477		$	172		$	444		$	283
Customer receivables (less allowance for doubtful accounts of $39 and $42)		1,841			2,295
Other receivables (less allowance for doubtful accounts of $3 at both dates)		239			212
Customer receivables (less allowance for doubtful accounts of $39 and $40)								2,164			2,219
Other receivables (less allowance for doubtful accounts of $4 at both dates)								341			349
Inventories		1,476			1,550			1,512			1,631
Regulatory assets		650			699			1,477			1,492
Other		479			476			1,476			1,270
Current assets held for sale		1,500			1,482			969			25
Total current assets		6,662			6,886			8,383			7,269
Investments
Nuclear decommissioning trust funds		7,139			6,900			7,614			7,950
Investment in equity method affiliates		2,949			2,934			2,937			2,932
Other		405			404			393			394
Total investments		10,493			10,238			10,944			11,276
Property, Plant and Equipment
Property, plant and equipment		84,035			82,959			87,107			86,503
Accumulated depreciation, depletion and amortization		(25,614	)		(25,111	)		(26,986	)		(26,729	)
Total property, plant and equipment, net		58,421			57,848			60,121			59,774
Deferred Charges and Other Assets
Goodwill		7,381			7,381			7,297			7,405
Regulatory assets		8,793			9,133			8,658			8,643
Other		4,953			4,419			5,449			5,223
Total deferred charges and other assets		21,127			20,933			21,404			21,271
Total assets	$	96,703		$	95,905		$	100,852		$	99,590

(1)	Dominion Energy’s Consolidated Balance Sheet at December 31, ~~2020~~2021 has been derived from the audited Consolidated Balance Sheet at that date.

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

DOMINION ENERGY, INC.

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾			March 31, 2022			December 31, 2021⁽¹⁾
(millions)
LIABILITIES AND EQUITY
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current Liabilities
Securities due within one year	$	2,639		$	1,937		$	2,550		$	841
Supplemental 364-Day credit facility borrowings		—			225
Short-term debt		2,815			895			2,548			2,314
Accounts payable		848			944			1,090			1,197
Accrued interest, payroll and taxes		957			1,133			968			1,169
Derivative liabilities								727			359
Regulatory liabilities		641			809			830			986
Liability to Atlantic Coast Pipeline		97			1,052
Q-Pipe Transaction deposit		1,290			1,290
Other⁽²⁾		1,924			1,933
Other⁽²⁾								1,651			1,807
Current liabilities held for sale		625			625			217			—
Total current liabilities		11,836			10,843			10,581			8,673
Long-Term Debt
Long-term debt		30,209			30,915			34,428			35,190
Junior subordinated notes		2,162			2,161			1,386			1,386
Other		877			881			845			850
Total long-term debt		33,248			33,957			36,659			37,426
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		6,202			5,953			6,885			6,658
Regulatory liabilities		10,202			10,187			10,436			10,713
Other		8,177			8,504			7,161			7,202
Total deferred credits and other liabilities		24,581			24,644			24,482			24,573
Total liabilities		69,665			69,444			71,722			70,672
Commitments and Contingencies (see Note 17)
Equity
Preferred stock (See Note 16)		2,387			2,387
Common stock – no par⁽³⁾		21,310			21,258
Mezzanine Equity
Preferred stock (see Note 16)								1,610			1,610
Shareholders' Equity
Preferred stock (see Note 16)								1,783			1,783
Common stock – no par⁽³⁾								21,657			21,610
Retained earnings		4,673			4,189			5,516			5,373
Accumulated other comprehensive loss		(1,671	)		(1,717	)		(1,436	)		(1,458	)
Total shareholders' equity		26,699			26,117
Noncontrolling interests		339			344
Total equity		27,038			26,461
Total liabilities and equity	$	96,703		$	95,905
Shareholders' equity								27,520			27,308
Total liabilities, mezzanine equity and shareholders' equity							$	100,852		$	99,590

(1)	Dominion Energy’s Consolidated Balance Sheet at December 31, ~~2020~~2021 has been derived from the audited Consolidated Balance Sheet at that date.

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

(3)	1.8 billion shares authorized; ~~806~~811 million and 810 million shares outstanding at ~~both~~ March 31, ~~2021~~2022 and December 31, ~~2020.~~2021, respectively.

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

Preferred Stock

Common Stock

Dominion Energy Shareholders

Total

Shares

Amount

Shares

Amount

Retained Earnings

AOCI

Shareholders'
Equity

Noncontrolling
Interests

Total
Equity

(millions, except per share amounts)

December 31, 2019

2

$
2,387

838

$
23,824

$
7,576

$
(1,793
)

$
31,994

$
2,039

$
34,033

Cumulative-effect of changes in
     accounting principles

(48
)

(48
)

(48
)
Net income (loss) including noncontrolling
     interests

(270
)

(270
)

31

(239
)
Issuance of stock

1

78

78

78

Preferred stock dividends (See Note 16)

(16
)

(16
)

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

(788
)

(788
)

(44
)

(832
)
Other comprehensive loss, net of tax

(225
)

(225
)

(225
)
Other

1

1

1

March 31, 2020

2

$
2,387

839

$
23,902

$
6,455

$
(2,018
)

$
30,726

$
2,026

$
32,752

December 31, 2020

2

$
2,387

806

$
21,258

$
4,189

$
(1,717
)

$
26,117

$
344

$
26,461

Net income including
     noncontrolling interests

1,008

1,008

—

1,008

Issuance of stock

—

48

48

48

Stock awards (net of change in
     unearned compensation)

4

4

4

Preferred stock dividends (See Note 16)

(16
)

(16
)

(16
)
Common stock dividends ($0.630 per
     share) and distributions

(508
)

(508
)

(6
)

(514
)
Other comprehensive income, net of tax

46

46

46

Other

—

1

1

March 31, 2021

2

$
2,387

806

$
21,310

$
4,673

$
(1,671
)

$
26,699

$
339

$
27,038

	Preferred Stock				Common Stock				Dominion Energy Shareholders						Total
	Shares		Amount		Shares		Amount		Retained Earnings			AOCI			Shareholders' Equity			Noncontrolling Interests			Total Equity
(millions, except per share amounts)
December 31, 2020		2	$	2,387		806	$	21,258	$	4,189		$	(1,717	)	$	26,117		$	344		$	26,461
Net income including noncontrolling interests										1,008						1,008			—			1,008
Issuance of stock						—		48								48						48
Stock awards (net of change in unearned compensation)								4								4						4
Preferred stock dividends (see Note 16)										(16	)					(16	)					(16	)
Common stock dividends ($0.630 per common share) and distributions										(508	)					(508	)		(6	)		(514	)
Other comprehensive income, net of tax													46			46						46
Other																—			1			1
March 31, 2021		2	$	2,387		806	$	21,310	$	4,673		$	(1,671	)	$	26,699		$	339		$	27,038


December 31, 2021		2	$	1,783		810	$	21,610	$	5,373		$	(1,458	)	$	27,308		$	—		$	27,308
Net income including noncontrolling interests										711						711						711
Issuance of stock						1		45								45						45
Stock awards (net of change in unearned compensation)								2								2						2
Preferred stock dividends (see Note 16)										(27	)					(27	)					(27	)
Common stock dividends ($0.6675 per share) and distributions										(541	)					(541	)					(541	)
Other comprehensive income, net of tax													22			22						22
March 31, 2022		2	$	1,783		811	$	21,657	$	5,516		$	(1,436	)	$	27,520		$	—		$	27,520

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

DOMINION ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,	2021			2020			2022			2021
(millions)
Operating Activities
Net income (loss) including noncontrolling interests	$	1,008		$	(239	)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by operating activities:
Net income including noncontrolling interests							$	711		$	1,008
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization (including nuclear fuel)		685			759			773			685
Deferred income taxes and investment tax credits		216			(65	)		246			216
Impairment of assets and other charges		95			768
Net losses (gains) on nuclear decommissioning trust funds and other investments		(152	)		526
Impairment of assets and other charges (benefits)								(13	)		95
Gains on sales of assets and equity method investments								(34	)		—
Net (gains) losses on nuclear decommissioning trust funds and other investments								113			(152	)
Other adjustments		4			4			(72	)		153
Changes in:
Accounts receivable		334			245			28			185
Inventories		73			71			80			73
Deferred fuel and purchased gas costs, net		(149	)		162			(256	)		(149	)
Prepayments		24			38			21			24
Accounts payable		21			(164	)		52			21
Accrued interest, payroll and taxes		(177	)		(234	)		(192	)		(177	)
Customer deposits		(9	)		(13	)		(1	)		(9	)
Margin deposit assets and liabilities		(60	)		46			(52	)		(60	)
Net realized and unrealized changes related to derivative activities		(218	)		36			29			(218	)
Pension and other postretirement benefits								(117	)		(44	)
Other operating assets and liabilities		(243	)		(307	)		(191	)		(199	)
Net cash provided by operating activities		1,452			1,633			1,125			1,452
Investing Activities
Plant construction and other property additions (including nuclear fuel)		(1,328	)		(1,462	)		(1,622	)		(1,328	)
Acquisition of solar development projects		(23	)		(8	)		(37	)		(23	)
Proceeds from sales of securities		1,765			602			814			1,765
Purchases of securities		(1,765	)		(631	)		(824	)		(1,765	)
Proceeds from sale of assets and equity method investments								146			—
Contributions to equity method affiliates		(977	)		(11	)		(15	)		(977	)
Acquisition of equity method investments		0			(178	)
Other		20			47			(36	)		20
Net cash used in investing activities		(2,308	)		(1,641	)		(1,574	)		(2,308	)
Financing Activities
Issuance of short-term debt, net		1,921			1,279			234			1,921
Issuance of short-term notes		0			500
Repayment of supplemental 364-day credit facility borrowings		(225	)		0			—			(225	)
Issuance of long-term debt		150			950			1,000			150
Repayment of long-term debt, including redemption premiums		(161	)		(932	)
Repayment of long-term debt								(39	)		(161	)
Issuance of common stock		48			78			45			48
Common dividend payments		(508	)		(788	)		(541	)		(508	)
Other		(54	)		(81	)		(64	)		(54	)
Net cash provided by financing activities		1,171			1,006			635			1,171
Increase in cash, restricted cash and equivalents		315			998			186			315
Cash, restricted cash and equivalents at beginning of period		247			269			408			247
Cash, restricted cash and equivalents at end of period	$	562		$	1,267		$	594		$	562

See Note 2 for disclosure of supplemental cash flow information.

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,						Three Months Ended March 31,
	2021			2020			2022		2021
(millions)
Operating Revenue⁽¹⁾	$	1,830		$	1,930
Operating Revenue⁽¹⁾							$	2,167	$	1,830
Operating Expenses
Electric fuel and other energy-related purchases⁽¹⁾		406			492
Excess electric capacity		(3	)		(9	)
Electric fuel and other energy-related purchases⁽¹⁾								516		406
Purchased (excess) electric capacity								11		(3	)
Other operations and maintenance:
Affiliated suppliers		87			87			91		87
Other		426			331			479		426
Depreciation and amortization		324			311			429		324
Other taxes		93			87			75		93
Impairment of assets and other charges (benefit)		(51	)		764			4		(51	)
Total operating expenses		1,282			2,063			1,605		1,282
Income (loss) from operations		548			(133	)
Other income (expense)		32			(52	)
Interest and related charges⁽¹⁾		136			126
Income (loss) before income tax expense		444			(311	)
Income tax expense (benefit)		70			(31	)
Net Income (Loss)	$	374		$	(280	)
Income from operations								562		548
Other income								4		32
Interest and related charges⁽¹⁾								148		136
Income before income tax expense								418		444
Income tax expense								61		70
Net Income							$	357	$	374

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

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended
March 31,

2021

2020

(millions)

Net income (loss)

$
374

$
(280
)
Other comprehensive income (loss), net of taxes:

Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾

32

(45
)
Changes in unrealized net losses on nuclear decommissioning trust funds⁽²⁾

(5
)

(2
)
Amounts reclassified to net income (loss):

Net derivative losses-hedging activities⁽³⁾

1

0

Net realized losses on nuclear decommissioning trust funds⁽⁴⁾

1

1

Total other comprehensive income (loss)

29

(46
)
Comprehensive income (loss)

$
403

$
(326
)

	Three Months Ended March 31,
	2022			2021
(millions)
Net income	$	357		$	374
Other comprehensive income (loss), net of taxes:
Net deferred gains (losses) on derivatives-hedging activities⁽¹⁾		19			32
Changes in unrealized net gains (losses) on nuclear decommissioning trust funds⁽²⁾		(7	)		(5	)
Amounts reclassified to net income (loss):
Net derivative (gains) losses-hedging activities⁽³⁾		1			1
Net realized (gains) losses on nuclear decommissioning trust funds⁽⁴⁾		(1	)		1
Total other comprehensive income		12			29
Comprehensive income	$	369		$	403

(1)	Net of ~~$(11)~~ ($7)million and ~~$16~~ $(11)million tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(2)	Net of $0$2 million and ~~$0 million~~ $—tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(3)	Net of ~~$0 million~~ $—and ~~$0 million~~ $—tax for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

(4)	Net of ~~$0 million~~$— and ~~$(1) million~~ $—tax for the three months ended March 31, 2022 and 2021, ~~and 2020,~~ respectively.

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾			March 31, 2022			December 31, 2021⁽¹⁾
(millions)
ASSETS
Current Assets
Cash and cash equivalents	$	56		$	35		$	36		$	26
Customer receivables (less allowance for doubtful accounts of $18 and $23)		926			1,315
Customer receivables (less allowance for doubtful accounts of $28 at both dates)								1,120			1,172
Other receivables (less allowance for doubtful accounts of $2 at both dates)		86			91			83			112
Affiliated receivables		10			5			98			37
Inventories (average cost method)		840			862			837			871
Margin deposit assets								292			167
Regulatory assets		292			295			952			850
Other⁽²⁾		52			59
Other⁽²⁾								238			115
Total current assets		2,262			2,662			3,656			3,350
Investments
Nuclear decommissioning trust funds		3,322			3,197			3,577			3,734
Other		3			3			3			3
Total investments		3,325			3,200			3,580			3,737
Property, Plant and Equipment
Property, plant and equipment		47,431			46,736			50,725			49,890
Accumulated depreciation and amortization		(14,446	)		(14,167	)		(15,472	)		(15,234	)
Total property, plant and equipment, net		32,985			32,569			35,253			34,656
Deferred Charges and Other Assets
Regulatory assets		3,235			3,509			4,141			4,130
Other⁽²⁾		1,977			1,714
Other⁽²⁾								2,160			2,059
Total deferred charges and other assets		5,212			5,223			6,301	��		6,189
Total assets	$	43,784		$	43,654		$	48,790		$	47,932

(1)	Virginia Power’s Consolidated Balance Sheet at December 31, ~~2020~~2021 has been derived from the audited Consolidated Balance Sheet at that date.

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

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED BALANCE SHEETS—(Continued)

(Unaudited)

	March 31, 2021			December 31, 2020⁽¹⁾			March 31, 2022			December 31, 2021⁽¹⁾
(millions)
LIABILITIES AND SHAREHOLDER’S EQUITY
Current Liabilities
Securities due within one year	$	458		$	8		$	1,013		$	313
Short-term debt		420			45			686			745
Accounts payable		311			332			423			402
Payables to affiliates		125			266			190			121
Affiliated current borrowings		177			380			235			699
Accrued interest, payroll and taxes		307			253			331			274
Asset retirement obligations		159			166
Regulatory liabilities		272			425			460			647
Derivative liabilities⁽²⁾		171			390
Derivative liabilities⁽²⁾								241			134
Other		591			562			770			758
Total current liabilities		2,991			2,827			4,349			4,093
Long-Term Debt
Long-term debt		12,759			13,207			13,733			13,453
Other		481			480			504			503
Total long-term debt		13,240			13,687			14,237			13,956
Deferred Credits and Other Liabilities
Deferred income taxes and investment tax credits		2,873			2,779			3,323			3,183
Asset retirement obligations		3,681			3,654			3,728			3,732
Regulatory liabilities		5,402			5,338			5,603			5,740
Other⁽²⁾		786			812
Other⁽²⁾								1,202			1,248
Total deferred credits and other liabilities		12,742			12,583			13,856			13,903
Total liabilities		28,973			29,097			32,442			31,952
Commitments and Contingencies (see Note 17)
Common Shareholder’s Equity
Common stock – no par⁽³⁾		5,738			5,738
Common stock – no par⁽³⁾								5,738			5,738
Other paid-in capital		1,113			1,113			1,113			1,113
Retained earnings		7,983			7,758			9,526			9,170
Accumulated other comprehensive loss		(23	)		(52	)		(29	)		(41	)
Total common shareholder’s equity		14,811			14,557			16,348			15,980
Total liabilities and shareholder’s equity	$	43,784		$	43,654		$	48,790		$	47,932

(1)	Virginia Power’s Consolidated Balance Sheet at December 31, ~~2020~~2021 has been derived from the audited Consolidated Balance Sheet at that date.

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

(3)	500,000 shares authorized; 274,723 shares outstanding at March 31, ~~2021~~2022 and December 31, ~~2020.~~2021.

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY

(Unaudited)

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

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

December 31, 2021																	275	$	5,738	$	1,113	$	9,170		$	(41	)	$	15,980
Net income																							357						357
Other comprehensive income, net of tax																										12			12
Other																							(1	)					(1	)
March 31, 2022																	275	$	5,738	$	1,113	$	9,526		$	(29	)	$	16,348

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

VIRGINIA ELECTRIC AND POWER COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,	2021			2020			2022			2021
(millions)
Operating Activities
Net income (loss)	$	374		$	(280	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net income							$	357		$	374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including nuclear fuel)		365			357			425			365
Deferred income taxes and investment tax credits		87			(135	)		105			87
Impairment of assets and other charges (benefit)		(51	)		764			—			(51	)
Other adjustments		(29	)		53			3			115
Changes in:
Accounts receivable		317			123			76			173
Affiliated receivables and payables		(144	)		24			9			(144	)
Inventories		21			5			34			21
Prepayments		(4	)		(5	)		3			(4	)
Deferred fuel expenses, net		(159	)		70			(297	)		(159	)
Accounts payable		0			99			90			—
Accrued interest, payroll and taxes		54			13			57			54
Net realized and unrealized changes related to derivative activities		18			(12	)
Margin deposit assets and liabilities								(125	)		2
Other operating assets and liabilities		(65	)		73			(52	)		(49	)
Net cash provided by operating activities		784			1,149			685			784
Investing Activities
Plant construction and other property additions		(766	)		(764	)		(1,037	)		(766	)
Purchases of nuclear fuel		(46	)		(25	)		(27	)		(46	)
Acquisition of solar development projects		(10	)		(6	)		(37	)		(10	)
Proceeds from sales of securities		789			294			392			789
Purchases of securities		(791	)		(310	)		(415	)		(791	)
Other		41			37			(5	)		41
Net cash used in investing activities		(783	)		(774	)		(1,129	)		(783	)
Financing Activities
Issuance (repayment) of short-term debt, net		375			(108	)		(59	)		375
Repayment of affiliated current borrowings, net		(203	)		(106	)		(464	)		(203	)
Issuance of long-term debt, net								1,000			—
Common dividend payments to parent		(150	)		(108	)		—			(150	)
Other		(2	)		(1	)		(23	)		(2	)
Net cash provided by (used in) financing activities		20			(323	)
Net cash provided by financing activities								454			20
Increase in cash, restricted cash and equivalents		21			52			10			21
Cash, restricted cash and equivalents at beginning of period		35			24			26			35
Cash, restricted cash and equivalents at end of period	$	56		$	76		$	36		$	56

See Note 2 for disclosure of supplemental cash flow information.

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

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Nature of Operations

Dominion Energy, headquartered in Richmond, Virginia, is one of the nation’s largest producers and distributors of energy. Dominion Energy’s operations are conducted through various subsidiaries, including Virginia Power. Dominion Energy’s operations also include DESC, regulated gas distribution operations primarily in the eastern and Rocky Mountain regions of the U.S., nonregulated electric generation and ~~following completion of the GT&S Transaction in November 2020,~~ a noncontrolling interest in Cove Point. See Note 3 for a description of the sale of substantially all of Dominion Energy’s gas transmission and storage operations to BHE through the GT&S Transaction completed in November 2020 and the proposed Q-Pipe Transaction of Dominion Energy’s remaining regulated gas transmission and storage services in the Rocky Mountain region of the U.S.

Note 2. Significant Accounting Policies

As permitted by the rules and regulations of the SEC, the Companies’ accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

In the Companies’ opinion, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly their financial position at March 31, ~~2021~~2022 and their results of operations, changes in equity and cash flows for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021. Such adjustments are normal and recurring in nature unless otherwise noted.

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

The Companies’ accompanying unaudited Consolidated Financial Statements include, after eliminating intercompany transactions and balances, their accounts, those of their respective majority-owned subsidiaries and non-wholly-owned entities in which they have a controlling financial interest. For certain partnership structures, income is allocated based on the liquidation value of the underlying contractual arrangements. At March 31, 2021, Dominion Energy owns 50% of the voting interests in Four Brothers and Three Cedars and has a controlling financial interest over the entities through its right to control operations. GIP’sClearway’s ownership interest in Four Brothers and Three Cedars (through December 2021) and Terra Nova Renewable Partners’ 33% interest in certain Dominion Energy nonregulated solar projects ~~and Brookfield’s 25% interest in Cove Point (effective~~(through December ~~2019 until November 2020)~~2021) are reflected as noncontrolling interest in Dominion Energy’s Consolidated Financial Statements. ~~Terra Nova Renewable Partners has a future option~~See Note 10 to ~~buy all or a portion of Dominion Energy’s remaining 67% ownership~~the Consolidated Financial Statements in ~~certain nonregulated solar projects upon~~ the ~~occurrence of certain events, including any proposed sale by Dominion Energy of its interest.~~Companies’ Annual Report on Form 10-K for the year ended December 31, 2021 for additional information.

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

Certain amounts in the Companies’ ~~2020~~2021 Consolidated Financial Statements and Notes have been reclassified to conform to the ~~2021~~2022 presentation for comparative purposes; however, such reclassifications did not affect the Companies’ net income, total assets, liabilities, equity or cash flows. Effective in the second quarter of 2021, the Companies updated their Statements of Cash Flows to present net charges for allowance for credit risk and write-offs of accounts receivables within other adjustments to reconcile net income to net cash provided by operating activities from the previous presentation within changes in accounts receivable. All prior period information has been conformed to this presentation, which does not result in a change to net cash provided by operating activities.

Amounts disclosed for Dominion Energy are inclusive of Virginia Power, where applicable. There have been no significant changes from Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, with the exception of the items described below.

Cash, Restricted Cash and Equivalents

Restricted Cash and Equivalents

The following table provides a reconciliation of the total cash, restricted cash and equivalents reported within the Companies’ Consolidated Balance Sheets to the corresponding amounts reported within the Companies’ Consolidated Statements of Cash Flows for the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:

	Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period				Cash, Restricted Cash and Equivalents at End of Period				Cash, Restricted Cash and Equivalents at Beginning of Period
	March 31, 2021		March 31, 2020		December 31, 2020		December 31, 2019		March 31, 2022		March 31, 2021		December 31, 2021		December 31, 2020
(millions)
Dominion Energy
Cash and cash equivalents⁽¹⁾	$	491	$	1,192	$	179	$	166
Restricted cash and equivalents⁽²⁾⁽³⁾		71		75		68		103
Cash and cash equivalents⁽¹⁾									$	446	$	491	$	283	$	179
Restricted cash and equivalents⁽²⁾⁽³⁾										148		71		125		68
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	562	$	1,267	$	247	$	269	$	594	$	562	$	408	$	247
Virginia Power
Cash and cash equivalents	$	56	$	71	$	35	$	17	$	36	$	56	$	26	$	35
Restricted cash and equivalents⁽³⁾		0		5		0		7
Restricted cash and equivalents⁽³⁾										0		0		0		0
Cash, restricted cash and equivalents shown in the Consolidated Statements of Cash Flows	$	56	$	76	$	35	$	24	$	36	$	56	$	26	$	35

(1)

At March 31, ~~2021,~~2022, March 31, ~~2020,~~2021 and December 31, 2020, ~~and December 31, 2019,~~ Dominion Energy had $2 million, $14 million ~~$59 million,~~and $7 ~~million and $31~~ million of cash and cash equivalents included in current assets held for sale, respectively. NaN amounts were included in current assets held for sale at December 31, 2021.

(2)

At March 31, 2021 ~~March 31, 2020,~~and December 31, 2020, ~~and December 31, 2019,~~ Dominion Energy had $3 ~~million, $12 million, $3 million and $12~~ million of restricted cash and equivalents included in current assets held for sale. NaN amounts were included in current assets held for sale ~~respectively~~at March 31, 2022 and December 31, 2021..

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

Supplemental Cash Flow Information

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

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022		2021
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	341	$	343	$	425	$	341
Leases⁽¹⁾		9		17
Leases⁽¹⁾						24		9

(1)	Includes $2$6 million and ~~$17~~$2 million of financing leases at March 31, 2022 and 2021, respectively, and ~~2020, respectively,~~$18 million and $7 million of operating leases at March 31, ~~2021.~~2022 and 2021, respectively.

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

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022		2021
(millions)
Significant noncash investing and financing activities:
Accrued capital expenditures	$	262	$	210	$	252	$	262
Financing leases		1		10
Leases⁽¹⁾						21		1

(1)	Includes $4 million and $1 million of financing leases at March 31, 2022 and 2021, respectively, and $17 million of operating leases at March 31, 2022.

Property, Plant and Equipment

In March 2020, Virginia Power committed to retire certain coal- and oil-fired generating units before the end of their useful lives based on economic and other factors, including but not limited to market power prices and the VCEA. These units will be retired after they meet their capacity obligations to PJM in 2023.~~As a result, Virginia Power recorded a charge of $754 million ($561 million after-tax) in~~ the first quarter of ~~2020, primarily included~~2022, Virginia Power revised the depreciation rates for its assets to reflect the results of a new depreciation study. The change resulted in ~~impairment of assets and other charges~~a decrease in ~~its~~depreciation expense in Virginia Power’s Consolidated Statements of ~~Income. This charge~~Income of $15 million ($11 million after-tax) and an increase in Dominion Energy’s EPS of $0.01 for the three months ended March 31, 2022. The

revision is ~~considered a component of~~expected to decrease Virginia Power’s base rates deemed recovered under the GTSA, subject to review as discussed in Note 13 to the Consolidated Financial Statements in Virginia Power’s Annual Report on Form 10-K for the year ended December 31, 2020.annual depreciation expense by approximately $60 million ($45 million after-tax) and increase Dominion Energy’s EPS by approximately $0.05.

Note 3. Acquisitions and Dispositions

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

In July 2020, Dominion Energy entered into an agreement with BHE with a total value of approximately $10 billion, comprised of approximately $4.0 billion of cash consideration (subject to customary closing adjustments) plus the assumption of long-term debt, to sell substantially all of its gas transmission and storage operations, including processing assets, as well as noncontrolling partnership interests in Iroquois, JAX LNG and White River Hub and a controlling interest in Cove Point (consisting of 100% of the general partner interest and 25% of the total limited partner interests). The agreement provides that Dominion Energy retains the assets and obligations of the pension and other postretirement employee benefit plans associated with the operations included in the transaction and relating to services provided through closing. In October 2020, pursuant to a provision in the agreement with BHE, Dominion Energy elected to exclude Dominion Energy Questar Pipeline and certain other affiliated entities from the transaction as approval under the Hart-Scott-Rodino Act had not been obtained by mid-September 2020. Concurrently in October 2020, Dominion Energy and BHE entered into a separate agreement under which Dominion Energy will sell Dominion Energy Questar Pipeline and certain other affiliated entities for cash consideration of $1.3 billion and the assumption of related long-term debt. In November 2020,December 2021, Dominion Energy completed the ~~GT&S Transaction~~sale of the Q-Pipe Group to Southwest Gas, as discussed in Note 3 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~

2021. In the first quarter of 2022, Dominion Energy recognized a gain of $27 million ($20 million after-tax) in discontinued operations in its Consolidated Statements of Income associated with finalization of working capital adjustments.

In connection with the closing of the ~~GT&S Transaction,~~sale of the Q-Pipe Group, Dominion Energy and ~~BHE~~Southwest Gas entered into a transition services agreement under which Dominion Energy will continue to provide specified administrative services to support the operations of the disposed ~~business~~businesses for up to 2412 months after ~~closing. In addition, BHE will provide certain administrative services~~closing, subject to ~~Dominion Energy.~~extension. Dominion Energy recorded ~~revenue of $5~~$1 million associated with the transition ~~service~~services agreement in operating revenue in ~~its~~the Consolidated Statements of Income for the three months ended March 31, ~~2021.~~

Also in November 2020, BHE provided a $1.3 billion deposit to Dominion Energy on the Q-Pipe Transaction. Dominion Energy will be required to repay all or substantially all of this deposit, or issue to BHE an equivalent value in shares of Dominion Energy common stock at Dominion Energy’s option, if the Q-Pipe Transaction does not close by December 30, 2021. Dominion Energy may, effective April 1, 2021, solicit or accept offers from alternative buyers for all or a material portion of the Q-Pipe Transaction and either party may terminate the Q-Pipe Transaction if closing has not occurred on or before June 30, 2021. If the Hart-Scott-Rodino Act approval has not been obtained by June 30, 2021, upon BHE’s request, Dominion Energy will seek an alternative buyer for all or a material portion of the Q-Pipe Transaction. The Q-Pipe Transaction is structured as an asset sale for tax purposes and is expected to close in 2021, contingent on clearance or approval under the Hart-Scott-Rodino Act, and other customary closing and regulatory conditions. Based on the recorded balances at March 31, 2021, Dominion Energy expects to recognize a pre-tax gain of approximately $450 million ($320 million after-tax) upon closing, including the write-off of $191 million of goodwill, but excluding the effects of any closing adjustments.

The operations included in both the GT&S Transaction and the Q-Pipe Transaction are presented in held-for-sale and discontinued operations effective July 2020. As a result, the previously reported amounts have been recast to reflect this presentation and depreciation and amortization ceased on the applicable assets. As Cove Point had previously been consolidated within Dominion Energy’s financial statements, balances associated with Cove Point prior to the closing of the GT&S Transaction are presented within held-for-sale and discontinued operations. See Note 10 for further information regarding Dominion Energy’s equity method investment in Cove Point.2022.

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

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

Capital expenditures and significant noncash items relating to the Q-Pipe Group included the following:

	Three Months Ended March 31, 2021
(millions)
Capital expenditures	$	3
Significant noncash items:
Accrued capital expenditures		2

Sale of Hope

In February 2022, Dominion Energy entered into an agreement to sell 100% of the equity interests in Hope to Ullico for $690 million of cash consideration, subject to customary closing adjustments. The sale will be treated as a stock sale for tax purposes and is expected to close by the end of 2022, contingent on clearance or approval under the Hart-Scott-Rodino Act and from the West Virginia Commission, and other customary closing and regulatory conditions. In March 2022, the waiting period under the Hart-Scott-Rodino Act expired. Also in March 2022, Dominion Energy filed for review and approval with the West Virginia Commission.

In the first quarter of 2022, Dominion Energy recorded a charge of $87 million in income tax expense in its Consolidated Statements of Income to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale. These deferred taxes will reverse upon closing of the sale. See Note 5 for additional information. Following closing of the sale, Dominion Energy expects to recognize a pre-tax gain of approximately $60 million, subject to customary closing adjustments, (net of $108 million write-off of goodwill which is not deductible for tax purposes) and an after-tax loss of approximately $40 million.

At March 31, 2022, the assets and liabilities of Hope, included in Gas Distribution, are classified as held for sale and reflected in current assets held for sale and current liabilities held for sale, respectively, in Dominion Energy’s Consolidated Balance Sheets. The carrying amounts of major classes of assets and liabilities ~~relating to the disposal groups, which are reported~~classified as held for sale in Dominion Energy’s Consolidated Balance Sheets ~~were~~are as follows:

	At March 31, 2021		At December 31, 2020
	Q-Pipe Transaction		Q-Pipe Transaction		March 31, 2022
(millions)
Current assets⁽¹⁾	$	49	$	47
Equity method investments⁽²⁾		35		35
Current assets					$	58
Property, plant and equipment, net		1,120		1,113		481
Other deferred charges and other assets, including goodwill and intangible assets⁽³⁾		224		224
Other deferred charges and other assets, including goodwill⁽¹⁾ and intangible assets						305
Current liabilities		30		30		39
Long-term debt		426		426		2
Other deferred credits and liabilities		154		154
Deferred credits and other liabilities						174

(1)

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

~~(2)~~

~~Comprised of an equity method investment in White River Hub~~.

~~(3)~~

~~Includes~~ goodwill of ~~$191 million at both March 31, 2021 and December 31, 2020.~~$108 million.

~~Capital expenditures~~

Sale of Kewaunee

In May 2021, Dominion Energy entered into an agreement to sell 100% of the equity interests in Dominion Energy Kewaunee, Inc. to EnergySolutions, including the transfer of all decommissioning obligations associated with Kewaunee, which ceased operations in 2013. The agreement provides that Dominion Energy retains the assets and ~~significant noncash items relating~~obligations of the pension and other postretirement employee benefit plans. In addition, Dominion Energy may continue to withdraw funds prior to closing from the nuclear decommissioning trust to recover certain spent nuclear fuel and other permitted costs, subject to certain conditions. The sale will be treated as an asset sale for tax purposes and is subject to termination by either party if not completed by December 2022. Closing is contingent on approval from the Wisconsin Commission as well as the NRC for the transfer of control of applicable licenses. The purchase agreement requires that EnergySolutions be subject to the ~~disposal groups~~Wisconsin regulatory conditions agreed to by Dominion Energy upon its acquisition of Kewaunee, including the return of any excess decommissioning funds to WPSC and WP&L customers following completion of all decommissioning activities.

In May 2021, Dominion Energy and EnergySolutions submitted a license transfer application to the NRC. Also in May 2021, Dominion Energy submitted an application to the Wisconsin Commission for approval. In July 2021, WPSC and WP&L submitted a joint request to the Wisconsin Commission for the waiver of both of their rights of first refusal to purchase Kewaunee, such rights having been granted as the former owners of Kewaunee. In March 2022, the NRC approved the requested license transfer. At March 31, 2022, Dominion Energy determined that the assets and liabilities associated with the Kewaunee sale, included in Contracted Assets, did not meet the ~~following:~~criteria to be classified as held for sale due to the significant uncertainty surrounding the timing of or ability to obtain approval by the Wisconsin Commission.

Dominion Energy expects to record a loss if and when it determines that criteria for the classification as held for sale have been met. If such classification had been made at March 31, 2022, Dominion Energy would have recognized a loss of approximately $660 million ($520 million after-tax). If the sale is ultimately completed, the final net loss will primarily depend on the value of the nuclear decommissioning trust and AROs at closing.

Three Months Ended
March 31, 2021

Three Months Ended March 31, 2020

Q-Pipe
Transaction

GT&S
Transaction

Q-Pipe
Transaction

(millions)

Capital expenditures

$
3

$
73

$
6

Significant noncash items

Depreciation, depletion and amortization

0

82

13

Accrued capital expenditures

2

16

0

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022			2021
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,155	$	1,158	$	1,287		$	1,155
Commercial		719		798		898			719
Industrial		178		182		197			178
Government and other retail		189		219		272			189
Wholesale		43		33		47			43
Nonregulated electric sales		249		232		367			254
Regulated gas sales:
Residential		630		548		769			630
Commercial		206		191		273			206
Other		34		28		45			34
Nonregulated gas sales		52		83		1			52
Regulated gas transportation and storage		271		232		297			271
Other regulated revenues		66		92		46			66
Other nonregulated revenues⁽¹⁾⁽²⁾		48		31
Other nonregulated revenues⁽¹⁾						48			43
Total operating revenue from contracts with customers		3,840		3,827		4,547			3,840
Other revenues⁽³⁾⁽⁴⁾		30		111
Other revenues⁽²⁾⁽³⁾						(268	)		30
Total operating revenue	$	3,870	$	3,938	$	4,279		$	3,870
Virginia Power
Regulated electric sales:
Residential	$	889	$	896	$	1,015		$	889
Commercial		547		614		717			547
Industrial		91		97		103			91
Government and other retail		176		203		258			176
Wholesale		26		24		32			26
Nonregulated electric sales						14			5
Other regulated revenues		57		62		51			57
Other nonregulated revenues⁽¹⁾⁽²⁾		21		13
Other nonregulated revenues⁽¹⁾⁽⁴⁾						6			16
Total operating revenue from contracts with customers		1,807		1,909		2,196			1,807
Other revenues⁽²⁾⁽³⁾		23		21
Other revenues⁽²⁾⁽⁴⁾						(29	)		23
Total operating revenue	$	1,830	$	1,930	$	2,167		$	1,830

(1)

~~Amounts above include~~Includes sales which are considered to be goods transferred at a point in ~~time. Such amounts include~~time of $11 million and $7 million for ~~both~~ the three months ended March 31, 2022 and 2021, ~~and 2020,~~respectively, at Dominion Energy, primarily consisting of sales of commodities related to nonregulated extraction activities and other miscellaneous products. Additionally, ~~amounts above include~~ sales of renewable energy ~~credits. Such amounts included~~credits were $4 million and $6 million for the three months ended March 31, 2022 and 2021, respectively, at Dominion Energy and less than $1 million and $4 million for the three months ended March 31, 2022 and 2021, ~~and $4 million and $3 million for the three months ended March 31, 2020,~~respectively, at ~~Dominion Energy and~~ Virginia ~~Power, respectively.~~Power.

(2)	~~See Notes 10 and 19 for amounts attributable to related parties and affiliates.~~

~~(3)~~

~~Amounts above include~~Includes alternative revenue of ~~$22~~$30 million and ~~$36~~$22 million at Dominion Energy and ~~$20~~$8 million and ~~$17~~$20 million at Virginia Power for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

~~(4)~~(3)

~~Amounts above include~~Includes revenue associated with services provided to discontinued operations of $1 million ~~and $2 million~~ for the three months ended March 31, ~~2021 and 2020, respectively.~~2021.

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

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

Revenue expected to be recognized on multi-year contracts in place at March 31, 2021	2021		2022		2023		2024		2025		Thereafter		Total
Revenue expected to be recognized on multi-year contracts in place at March 31, 2022															2022		2023		2024		2025		2026		Thereafter		Total
(millions)
Dominion Energy	$	51	$	68	$	66	$	59	$	51	$	493	$	788	$	51	$	66	$	59	$	52	$	45	$	448	$	721

At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy’s contract liability balances were ~~$74~~$89 million and ~~$130~~$124 million, respectively, and are recorded primarily in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Virginia Power’s contract liability balances were ~~$32~~$42 million and ~~$36~~$33 million, respectively, and are recorded in other current liabilities and other deferred credits and other liabilities in its Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, Dominion Energy recognized revenue of ~~$122~~$119 million and ~~$93~~$122 million, respectively, from the beginning contract liability balances. During the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, Virginia Power recognized ~~$36~~$33 million and ~~$24~~$36 million, respectively, from the beginning contract liability balance.

Note 5. Income Taxes

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

	Dominion Energy						Virginia Power						Dominion Energy						Virginia Power
Three Months Ended March 31,	2021			2020			2021			2020			2022			2021			2022			2021
U.S. statutory rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%
Increases (reductions) resulting from:
Recognition of deferred taxes - stock of subsidiary held for sale													9.4				—			—			—
State taxes, net of federal benefit		3.5			3.3			4.5			4.8			3.3			3.5			4.4			4.5
Investment tax credits		(3.8	)		(7.0	)		(6.6	)		(6.4	)		(3.9	)		(3.8	)		(6.7	)		(6.6	)
Production tax credits		(0.3	)		(0.8	)		(0.6	)		(0.8	)		(0.4	)		(0.3	)		(0.8	)		(0.6	)
Reversal of excess deferred income taxes		(2.2	)		(7.8	)		(2.2	)		(8.1	)		(4.1	)		(2.2	)		(3.0	)		(2.2	)
Changes in state deferred taxes associated with assets held for sale														0.5			—			—			—
AFUDC - equity		(0.4	)		(0.7	)		(0.7	)		(0.7	)		(0.6	)		(0.4	)		(0.9	)		(0.7	)
Other, net		—			1.7			0.3			0.3			0.2			—			0.6			0.3
Effective tax rate		17.8	%		9.7	%		15.7	%		10.1	%		25.4	%		17.8	%		14.6	%		15.7	%

~~For~~As described in Note 3, Dominion Energy entered into an agreement to sell 100% of the ~~Companies’ rate-regulated entities,~~equity interests in Hope that will be treated as a stock sale for income tax purposes. In connection with the pending sale, Dominion Energy established $87 million of deferred tax liabilities reflecting the excess of the financial reporting basis over the tax basis in Hope’s stock. These deferred taxes will reverse atupon closing of the ~~weighted average rate used~~sale, which is expected to ~~originate~~occur by the ~~deferred tax liability, which in some cases will be 35%. The Companies have recorded an estimate~~end of excess deferred income tax amortization in 2021. The reversal of these excess deferred income taxes will impact the effective tax rate and rates charged to customers. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 for more information.2022.

As of March 31, ~~2021,~~2022, there have been no material changes in the Companies’ unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 5 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, for a discussion of these unrecognized tax benefits.

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

Discontinued operations

Income tax expense reflected in discontinued operations is $7$6 million and ~~$31~~$7 million for the three months ended March 31, 2022 and 2021, ~~and 2020,~~ respectively.

Note 6. Earnings Per Share

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

	Three Months Ended March 31,						Three Months Ended March 31,
	2021			2020			2022			2021
(millions, except EPS)
Net income (loss) attributable to Dominion Energy from continuing operations	$	980		$	(466	)
Net income attributable to Dominion Energy from continuing operations							$	692		$	980
Preferred stock dividends (see Note 16)		(16	)		(16	)		(27	)		(16	)
Net income (loss) attributable to Dominion Energy from continuing operations – Basic		964			(482	)
Dilutive effect of Series A Preferred Stock		—			—
Net income (loss) attributable to Dominion Energy from continuing operations - Diluted	$	964		$	(482	)

Net income attributable to Dominion Energy from continuing operations – Basic								665			964
Dilutive effect of 2019 Equity Units ⁽¹⁾								7			—
Net income attributable to Dominion Energy from continuing operations - Diluted							$	672		$	964
Net income attributable to Dominion Energy from discontinued operations - Basic & Diluted	$	28		$	196		$	19		$	28

Average shares of common stock outstanding – Basic & Diluted		805.9			838.2
Net effect of dilutive securities		—			—
Average shares of common stock outstanding – Basic								810.6			805.9
Net effect of dilutive securities ⁽²⁾								21.4			—
Average shares of common stock outstanding – Diluted		805.9			838.2			832.0			805.9

EPS from continuing operations – Basic	$	1.19		$	(0.57	)	$	0.82		$	1.19
EPS from discontinued operations – Basic		0.04			0.23			0.02			0.04
EPS attributable to Dominion Energy – Basic	$	1.23		$	(0.34	)	$	0.84		$	1.23

EPS from continuing operations – Diluted		1.19		$	(0.57	)	$	0.81		$	1.19
EPS from discontinued operations – Diluted		0.04			0.23			0.02			0.04
EPS attributable to Dominion Energy – Diluted	$	1.23		$	(0.34	)	$	0.83		$	1.23

(1)

In accordance with revised accounting standards effective January 2022, a fair value adjustment, if dilutive, of the Series A Preferred Stock is no longer included in applying the if converted method to the 2019 Equity Units. In addition, diluted net income is no longer reduced by the Series A Preferred Stock dividends. No fair value adjustment was necessary for the three months ended March 31, 2021.

(2)

Dilutive securities for 2022 consist primarily of the 2019 Equity Units (applying the if converted method as updated effective January 2022), stock expected to be issued to satisfy the obligation under a settlement agreement with the SCDOR (applying the if converted method) as well as forward sales agreements entered into in November 2021 (applying the treasury stock method). See Notes 16 and 17 for additional information.

The 2019 Equity Units and the Q-Pipe Transaction deposit, prior to being settled in cash in July 2021, are potentially dilutive ~~securities.~~instruments. See Note 3 ~~in this report~~ and Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for ~~more~~additional information. ~~The~~

For the three months ended March 31, 2021, the forward stock purchase contracts included within the 2019 Equity Units were excluded from the calculation of diluted EPS from continuing operations ~~for the three months ended March 31, 2021,~~ as the dilutive stock price threshold was not ~~met. The~~met, the Series A Preferred Stock included within the 2019 Equity Units iswas excluded from the calculation of diluted EPS from continuing operations based upon the expectation that the conversion will be settled in cash rather than through the issuance of Dominion Energy common ~~stock. For the three months ended March 31, 2021,~~stock and a fair value adjustment related to the Series A Preferred Stock included within the 2019 Equity Units is excluded from the calculation of diluted EPS from continuing operations, as such fair value adjustment was not dilutive during the period. As a result of a net loss attributable to Dominion Energy from continuing operations for the three months ended March 31, 2020, any adjustments to earnings or shares would be considered antidilutive and are therefore excluded from the calculation of diluted EPS from continuing operations.

The impact of settling the deposit associated with the Q-Pipe Transaction in shares is excluded from the calculation of diluted EPS from continuing operations for the three months ended March 31, 2021 based upon the expectation Dominion Energy would settle in cash, which occurred in July 2021, rather than through the issuance of Dominion Energy common stock.

Note 7. Accumulated Other Comprehensive Income (Loss)

Dominion Energy

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

Deferred
gains and
losses on
derivatives-
hedging
activities

Unrealized
gains and
losses on
investment
securities

Unrecognized
pension and
other
postretirement
benefit costs

Other
comprehensive
loss from
equity method
investees

Total

(millions)

Three Months Ended March 31, 2021

Beginning balance

$
(419
)

$
62

$
(1,359
)

$
(1
)

$
(1,717
)
Other comprehensive income before reclassifications:
gains (losses)

39

(31
)

6

0

14

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

13

1

18

0

32

Net current period other comprehensive income (loss)

52

(30
)

24

0

46

Ending balance

$
(367
)

$
32

$
(1,335
)

$
(1
)

$
(1,671
)
Three Months Ended March 31, 2020

Beginning balance

$
(407
)

$
37

$
(1,421
)

$
(2
)

$
(1,793
)
Other comprehensive income before reclassifications:
gains (losses)

(266
)

9

—

0

(257
)
Amounts reclassified from AOCI: (gains) losses⁽¹⁾

22

(9
)

19

0

32

Net current period other comprehensive income (loss)

(244
)

—

19

0

(225
)
Ending balance

$
(651
)

$
37

$
(1,402
)

$
(2
)

$
(2,018
)

~~(1)~~

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

~~The following table presents Dominion Energy’s~~tax) and reclassifications out of AOCI by component:

Details about AOCI components

Amounts
reclassified
from AOCI

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

Three Months Ended March 31, 2021

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

Commodity contracts

$
1

Purchased gas
Interest rate contracts

16

Interest and related charges
Total

17

Tax

(4
)

Income tax expense (benefit)
Total, net of tax

$
13

Unrealized (gains) and losses on investment securities:

Realized (gains) losses on sale of securities

$
1

Other income (expense)
Total

1

Tax

—

Income tax expense (benefit)
Total, net of tax

$
1

Unrecognized pension and other postretirement benefit costs:

Amortization of prior-service costs (credits)

$
(5
)

Other income (expense)
Amortization of actuarial losses

30

Other income (expense)
Total

25

Tax

(7
)

Income tax expense (benefit)
Total, net of tax

$
18

Three Months Ended March 31, 2020

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

Commodity contracts

$
(6
)

Operating revenue

3

Purchased gas

(1
)

Discontinued operations
Interest rate contracts

25

Interest and related charges

2

Discontinued operations
Foreign currency contracts

6

Discontinued operations
Total

29

Tax

(7
)

Income tax expense (benefit)
Total, net of tax

$
22

Unrealized (gains) and losses on investment securities:

Realized (gains) losses on sale of securities

$
(13
)

Other income (expense)
Total

(13
)

Tax

4

Income tax expense (benefit)
Total, net of tax

$
(9
)

Unrecognized pension and other postretirement benefit costs:

Amortization of prior-service costs (credits)

$
(6
)

Other income (expense)
Amortization of actuarial losses

30

Other income (expense)
Total

24

Tax

(5
)

Income tax expense (benefit)
Total, net of tax

$
19

	Commodity			Interest Rate			Total Derivative-Hedging Activities⁽¹⁾			Investment Securities⁽²⁾			Pension and other postretirement benefit costs⁽³⁾			Equity Method Investees⁽⁴⁾			Total
(millions)
Three Months Ended March 31, 2022
Beginning balance	$	—		$	(358	)	$	(358	)	$	37		$	(1,133	)	$	(4	)	$	(1,458	)
Other comprehensive income before reclassifications: gains (losses)		—			25			25			(62	)		28			1			(8	)
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		—			14			14			—			—			—			14
Other income		—			—			—			4			23			—			27
Total		—			14			14			4			23			—			41
Income tax expense		—			(4	)		(4	)		(1	)		(6	)		—			(11	)
Total, net of tax		—			10			10			3			17			—			30
Net current period other comprehensive income (loss)		—			35			35			(59	)		45			1			22
Ending balance	$	—		$	(323	)	$	(323	)	$	(22	)	$	(1,088	)	$	(3	)	$	(1,436	)
Three Months Ended March 31, 2021
Beginning balance	$	(1	)	$	(418	)	$	(419	)	$	62		$	(1,359	)	$	(1	)	$	(1,717	)
Other comprehensive income before reclassifications: gains (losses)		—			39			39			(31	)		6			—			14
Amounts reclassified from AOCI: (gains) losses
Purchased gas		1			—			1			—			—			—			1
Interest and related charges		—			16			16			—			—			—			16
Other income		—			—			—			1			25			—			26
Total		1			16			17			1			25			—			43
Income tax expense		—			(4	)		(4	)		—			(7	)		—			(11	)
Total, net of tax		1			12			13			1			18			—			32
Net current period other comprehensive income (loss)		1			51			52			(30	)		24			—			46
Ending balance	$	—		$	(367	)	$	(367	)	$	32		$	(1,335	)	$	(1	)	$	(1,671	)

(1)	Net of $107 million, $119 million, $123 million and $141 million tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

(2)	Net of $8 million, $(10) million, $(11) million and $(21) million tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

(3)	Net of $380 million, $396 million, $468 million and $478 million tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

(4)	Net of $1 million, $1 million, $— and $— tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

Virginia Power

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

Deferred gains
and losses on
derivatives-
hedging
activities

Unrealized gains
and losses on
investment
securities

Total

(millions)

Three Months Ended March 31, 2021

Beginning balance

$
(60
)

$
8

$
(52
)
Other comprehensive income before reclassifications:
gains (losses)

32

(5
)

27

Amounts reclassified from AOCI: losses⁽¹⁾

1

1

2

Net current period other comprehensive income (loss)

33

(4
)

29

Ending balance

$
(27
)

$
4

$
(23
)
Three Months Ended March 31, 2020

Beginning balance

$
(34
)

$
5

$
(29
)
Other comprehensive income before reclassifications:
losses

(45
)

(2
)

(47
)
Amounts reclassified from AOCI: losses⁽¹⁾

—

1

1

Net current period other comprehensive income (loss)

(45
)

(1
)

(46
)
Ending balance

$
(79
)

$
4

$
(75
)

~~(1)~~

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

~~The following table presents Virginia Power’s~~tax) and reclassifications out of AOCI by component:

Details about AOCI components

Amounts
reclassified
from AOCI

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

Three Months Ended March 31, 2021

(Gains) losses on cash flow hedges:

Interest rate contracts

$
1

Interest and related charges
Total

1

Tax

—

Income tax expense (benefit)
Total, net of tax

$
1

Unrealized (gains) and losses on investment securities:

Realized (gains) losses on sale of securities

$
1

Other income (expense)
Total

1

Tax

—

Income tax expense (benefit)
Total, net of tax

$
1

Three Months Ended March 31, 2020

Unrealized (gains) and losses on investment securities:

Realized (gains) losses on sale of securities

$
2

Other income (expense)
Total

2

Tax

(1
)

Income tax expense (benefit)
Total, net of tax

$
1

	Interest Rate			Total Derivative-Hedging Activities⁽¹⁾			Investment Securities⁽²⁾			Total
(millions)
Three Months Ended March 31, 2022
Beginning balance	$	(45	)	$	(45	)	$	4		$	(41	)
Other comprehensive income before reclassifications: gains (losses)		19			19			(7	)		12
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		1			1			—			1
Other income		—			—			(1	)		(1	)
Total		1			1			(1	)		—
Income tax expense		—			—			—			—
Total, net of tax		1			1			(1	)		—
Net current period other comprehensive income (loss)		20			20			(8	)		12
Ending balance	$	(25	)	$	(25	)	$	(4	)	$	(29	)
Three Months Ended March 31, 2021
Beginning balance	$	(60	)	$	(60	)	$	8		$	(52	)
Other comprehensive income before reclassifications: gains (losses)		32			32			(5	)		27
Amounts reclassified from AOCI: (gains) losses
Interest and related charges		1			1			—			1
Other income		—			—			1			1
Total		1			1			1			2
Income tax expense		—			—			—			—
Total, net of tax		1			1			1			2
Net current period other comprehensive income (loss)		33			33			(4	)		29
Ending balance	$	(27	)	$	(27	)	$	4		$	(23	)

(1)	Net of $9 million, $16 million, $10 million and $21 million tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

(2)	Net of $1 million, $(2) million, $(2) million and $(3) million tax at March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020, respectively.

Note 8. Fair Value Measurements

The Companies’ fair value measurements are made in accordance with the policies discussed in Note 6 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. See Note 9 in this report for ~~further~~additional information about the Companies’ derivatives and hedge accounting activities.

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

The following table presents Dominion Energy’s quantitative information about Level 3 fair value measurements at March 31, ~~2021.~~2022. The range and weighted average are presented in dollars for market price inputs.

	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾			Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets
Physical and financial forwards:
Natural gas⁽²⁾	$	56	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 3		(1	)
Natural gas⁽²⁾										$	12	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 6		(1	)
FTRs		2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 3		0			17	Discounted cash flow	Market price (per MWh)	⁽³⁾	(1) - 7		2
Electricity											180	Discounted cash flow	Market price (per MWh)	⁽³⁾	30 - 85		47
Total assets	$	58								$	209
Liabilities
Financial forwards:
Physical and financial forwards:
Natural gas⁽²⁾										$	5	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 5		(1	)
FTRs	$	2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		0			2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(3) - 3		1
Total liabilities	$	2								$	7

(1)	Averages weighted by volume.

(2)	Includes basis.

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

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

Significant Unobservable

Inputs

Position

Change to Input

Impact on Fair Value

Measurement

Market price

Buy

Increase (decrease)

Gain (loss)

Market price

Sell

Increase (decrease)

Loss (gain)

Nonrecurring Fair Value Measurements

See Note 10 for information regarding nonrecurring fair value measurements associated with Dominion Energy’s noncontrolling ownership interest in Dominion Privatization.

Recurring Fair Value Measurements

Dominion Energy

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

	Level 1		Level 2		Level 3		Total		Level 1			Level 2		Level 3		Total
(millions)
At March 31, 2021
At March 31, 2022
Assets
Derivatives:
Commodity	$	0	$	51	$	58	$	109	$	—		$	232	$	209	$	441
Interest rate		0		740		0		740		—			768		—		768
Investments⁽¹⁾:
Investments⁽¹⁾:
Equity securities:
U.S.										5,013			—		—		5,013
Fixed income:
Corporate debt instruments										—			839		—		839
Government securities										198			1,162		—		1,360
Cash equivalents and other										(15	)		—		—		(15	)
Total assets									$	5,196		$	3,001	$	209	$	8,406
Liabilities
Derivatives:
Commodity									$	—		$	941	$	7	$	948
Interest rate										—			362		—		362
Foreign currency exchange rate										—			4		—		4
Total liabilities									$	—		$	1,307	$	7	$	1,314
At December 31, 2021
Assets
Derivatives:
Commodity									$	—		$	52	$	230	$	282
Interest rate										—			323		—		323
Foreign currency exchange rate										—			8		—		8
Investments⁽¹⁾:
Equity securities:
U.S.		4,569		0		0		4,569		5,241			—		—		5,241
Fixed income:
Corporate debt instruments		0		722		0		722		—			881		—		881
Government securities		728		727		0		1,455		199			1,256		—		1,455
Cash equivalents and other		18		0		0		18		(29	)		—		—		(29	)
Total assets	$	5,315	$	2,240	$	58	$	7,613	$	5,411		$	2,520	$	230	$	8,161
Liabilities
Derivatives:
Commodity	$	0	$	76	$	2	$	78	$	—		$	461	$	8	$	469
Interest rate		0		186		0		186		—			399		—		399
Total liabilities	$	0	$	262	$	2	$	264	$	—		$	860	$	8	$	868
At December 31, 2020
Assets
Derivatives:
Commodity	$	0	$	57	$	110	$	167
Interest rate		0		230		0		230
Investments⁽¹⁾:
Equity securities:
U.S.		4,648		0		0		4,648
Fixed income:
Corporate debt instruments		0		629		0		629
Government securities		508		730		0		1,238
Cash equivalents and other		32		15		0		47
Total assets	$	5,188	$	1,661	$	110	$	6,959
Liabilities
Derivatives:
Commodity	$	0	$	48	$	7	$	55
Interest rate		0		431		0		431
Total liabilities	$	0	$	479	$	7	$	486

(1)

Includes investments held in the nuclear decommissioning and rabbi trusts. Excludes ~~$399~~$361 million and ~~$340~~$366 million of assets at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

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

	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2021			2020			2022			2021
(millions)
Beginning balance	$	103		$	(37	)	$	222		$	103
Total realized and unrealized gains (losses):
Included in earnings:
Electric fuel and other energy-related purchases		(21	)		(22	)		48			(21	)
Included in regulatory assets/liabilities		(47	)		80			(20	)		(47	)
Settlements		21			22			(48	)		21
Ending balance	$	56		$	43		$	202		$	56

There ~~are~~were less than $1 million of unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, ~~2021. There were~~2021 and 0 ~~unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date~~such amounts for the three months ended March 31, ~~2020.~~2022.

Virginia Power

The following table presents Virginia Power’s quantitative information about Level 3 fair value measurements at March 31, ~~2021.~~2022. The range and weighted average are presented in dollars for market price inputs.

	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾			Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets
Physical and financial forwards:
Natural gas⁽²⁾	$	56	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 3		(1	)
Natural gas⁽²⁾										$	12	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 6		(1	)
FTRs		2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 3		0			17	Discounted cash flow	Market price (per MWh)	⁽³⁾	(1) - 7		2
Total assets	$	58								$	29
Liabilities
Financial forwards:
Physical and financial forwards:
Natural gas⁽²⁾										$	5	Discounted cash flow	Market price (per Dth)	⁽³⁾	(2) - 5		(1	)
FTRs	$	2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(2) - 2		0			2	Discounted cash flow	Market price (per MWh)	⁽³⁾	(3) - 3		1
Total liabilities	$	2								$	7

(1)	Averages weighted by volume.

(2)	Includes basis.

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

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

Significant Unobservable

Inputs

Position

Change to Input

Impact on Fair Value

Measurement

Market price

Buy

Increase (decrease)

Gain (loss)

Market price

Sell

Increase (decrease)

Loss (gain)

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

	Level 1		Level 2		Level 3		Total		Level 1			Level 2		Level 3		Total
(millions)
At March 31, 2021
At March 31, 2022
Assets
Derivatives:
Commodity	$	0	$	18	$	58	$	76	$	—		$	75	$	29	$	104
Interest rate		0		283		0		283		—			300		—		300
Investments⁽¹⁾:
Investments⁽¹⁾:
Equity securities:
U.S.		2,132		0		0		2,132		2,325			—		—		2,325
Fixed income:
Corporate debt instruments		0		400		0		400		—			509		—		509
Government securities		340		277		0		617		93			461		—		554
Total assets	$	2,472	$	978	$	58	$	3,508	$	2,418		$	1,345	$	29	$	3,792
Liabilities
Derivatives:
Commodity	$	0	$	26	$	2	$	28	$	—		$	297	$	7	$	304
Interest rate		0		150		0		150		—			200		—		200
Foreign currency exchange rate										—			4		—		4
Total liabilities	$	0	$	176	$	2	$	178	$	—		$	501	$	7	$	508
At December 31, 2020
At December 31, 2021
Assets
Derivatives:
Commodity	$	0	$	5	$	110	$	115	$	—		$	36	$	110	$	146
Interest rate		0		66		0		66		—			146		—		146
Investments⁽¹⁾:
Foreign currency exchange rate										—			8		—		8
Investments⁽¹⁾:
Equity securities:
U.S.		2,171		0		0		2,171		2,420			—		—		2,420
Fixed income:
Corporate debt instruments		0		348		0		348		—			531		—		531
Government securities		201		309		0		510		93			506		—		599
Cash equivalents and other		13		0		0		13		(3	)		—		—		(3	)
Total assets	$	2,385	$	728	$	110	$	3,223	$	2,510		$	1,227	$	110	$	3,847
Liabilities
Derivatives:
Commodity	$	0	$	22	$	7	$	29	$	—		$	125	$	8	$	133
Interest rate		0		376		0		376		—			337		—		337
Total liabilities	$	0	$	398	$	7	$	405	$	—		$	462	$	8	$	470

(1)

Includes investments held in the nuclear decommissioning trusts. Excludes ~~$199~~$194 million and ~~$167~~$185 million of assets at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

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

	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2021			2020			2022			2021
(millions)
Beginning balance	$	103		$	(37	)	$	102		$	103
Total realized and unrealized gains (losses):
Included in earnings:
Electric fuel and other energy-related purchases		(21	)		(22	)		45			(21	)
Included in regulatory assets/liabilities		(47	)		80			(80	)		(47	)
Settlements		21			22			(45	)		21
Ending balance	$	56		$	43		$	22		$	56

There were 0 unrealized gains or losses included in earnings in the Level 3 fair value category relating to assets/liabilities still held at the reporting date for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Fair Value of Financial Instruments

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

March 31, 2021

December 31, 2020

Carrying
Amount

Estimated
Fair
Value⁽¹⁾

Carrying
Amount

Estimated
Fair
Value⁽¹⁾

(millions)

Dominion Energy

Long-term debt⁽²⁾⁽³⁾

$
31,991

$
36,334

$
31,996

$
38,773

Supplemental 364-Day credit facility borrowings

0

0

225

225

Junior subordinated notes⁽⁴⁾

3,412

3,579

3,411

3,633

Virginia Power

Long-term debt⁽⁴⁾

$
13,209

$
15,174

$
13,207

$
16,455

	March 31, 2022				December 31, 2021
	Carrying Amount		Estimated Fair Value⁽¹⁾		Carrying Amount		Estimated Fair Value⁽¹⁾
(millions)
Dominion Energy
Long-term debt⁽²⁾	$	36,945	$	38,421	$	35,996	$	40,947
Junior subordinated notes⁽³⁾		1,386		1,407		1,386		1,470
Virginia Power
Long-term debt⁽³⁾	$	14,736	$	15,478	$	13,753	$	16,021

(1)

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

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. At ~~both~~ March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the carrying amount includes the valuation of certain fair value hedges associated with fixed rate debt of ~~$3 million.~~$1 million and $2 million, respectively.

(3)	~~Includes amounts classified as held for sale, see Note 3.~~

~~(4)~~

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs, discount or premium.

Note 9. Derivatives and Hedge Accounting Activities

The Companies’ accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. See Note 8 in this report for ~~further~~additional information about fair value measurements and associated valuation methods for derivatives.

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

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

In general, most over-the-counter transactions and all exchange contracts are subject to collateral requirements. Types of collateral for over-the-counter and exchange contracts include cash, letters of credit, and in some cases other forms of ~~securities,~~security, none of which are subject to restrictions. Cash collateral ~~as presented~~is used in the table below ~~is used~~ to offset derivative assets and liabilities. In February 2022, Dominion Energy entered into contracts representing offsetting positions to certain existing exchange contracts with collateral requirements as well as new over-the-counter transactions that are not subject to collateral requirements. These contracts resulted in positions which limit the risk of increased cash collateral requirements. Certain accounts receivable and accounts payable recognized on the Companies’ Consolidated Balance Sheets, letters of credit and other forms of securities, as well as certain other long-term debt, all of which are not included in the tables below, are subject to offset under master netting or similar arrangements and would reduce the net exposure. See Note 18 for ~~further~~additional information regarding credit-related contingent features for the Companies’ derivative instruments.

Dominion Energy

Balance Sheet Presentation

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

	March 31, 2021								December 31, 2020								March 31, 2022								December 31, 2021
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	76	$	18	$	0	$	58	$	117	$	9	$	0	$	108	$	125	$	37	$	0	$	88	$	153	$	13	$	0	$	140
Exchange		33		33		0		0		49		24		0		25		136		130		0		6		9		7		0		2
Interest rate contracts:
Over-the-counter		740		19		0		721		230		13		0		217		768		158		0		610		323		49		0		274
Foreign currency exchange rate contracts:
Over-the-counter																		0		0		0		0		8		0		0		8
Total derivatives, subject to a master netting or similar arrangement	$	849	$	70	$	0	$	779	$	396	$	46	$	0	$	350	$	1,029	$	325	$	0	$	704	$	493	$	69	$	0	$	424

(1)	Excludes ~~less than $1~~$180 million and $1$120 million of derivative assets at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, which are not subject to master netting or similar arrangements.

	March 31, 2021								December 31, 2020								March 31, 2022								December 31, 2021
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	28	$	18	$	0	$	10	$	30	$	9	$	0	$	21	$	326	$	37	$	124	$	165	$	95	$	13	$	54	$	28
Exchange		50		33		17		0		24		24		0		0		622		130		492		0		374		7		367		0
Interest rate contracts:
Over-the-counter		186		19		11		156		431		13		17		401		362		158		6		198		399		49		11		339
Foreign currency exchange rate contracts:
Over-the-counter																		4		0		0		4		0		0		0		0
Total derivatives, subject to a master netting or similar arrangement	$	264	$	70	$	28	$	166	$	485	$	46	$	17	$	422	$	1,314	$	325	$	622	$	367	$	868	$	69	$	432	$	367

(1)

~~Excludes less than $1million and $1 million of~~There were 0 derivative liabilities ~~at March 31, 2021 and December 31, 2020, respectively, which~~that are not subject to master netting or similar ~~arrangements.~~arrangements at March 31, 2022 or December 31, 2021.

Volumes

The following table presents the volume of Dominion Energy’s derivative activity at March 31, ~~2021.~~2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		60		19
Fixed price⁽¹⁾						29		0
Basis(1)		202		496		155		465
Electricity (MWh):
Electricity (MWh in millions):
Fixed price		10,745,307		9,789,934		15		35
FTRs		18,264,727		0		18		0
Interest rate⁽²⁾ (millions)	$	1,250	$	5,407
Interest rate⁽²⁾ (in millions)					$	1,637	$	12,809
Foreign currency exchange rate⁽²⁾(in millions)					520 kr.		4,530 kr.

(1)	Includes options.

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

AOCI

The following table presents selected information related to losses on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at March 31, ~~2021:~~2022:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(367	)	$	(40	)	393 months	$	(323	)	$	(38	)	393 months
Total	$	(367	)	$	(40	)		$	(323	)	$	(38	)

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

Fair Value Hedges

For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings and presented in the same line item. There were 0 derivative instruments designated as fair value hedges during the three months ended March 31, ~~2021~~2022 and ~~March 31, 2020.~~2021.

The following table presents the amounts recorded on the ~~balance sheet~~Consolidated Balance Sheet related to cumulative basis adjustments for fair value ~~hedges:~~hedges, all of which related to discontinued hedging relationships at both March 31, 2022 and December 31, 2021:

	Carrying Amount of the Hedged Asset (Liability)⁽¹⁾						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)⁽²⁾						Carrying Amount of the Hedged Asset (Liability)						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)
	March 31, 2021			December 31, 2020			March 31, 2021			December 31, 2020			March 31, 2022			December 31, 2021			March 31, 2022			December 31, 2021
(millions)
Long-term debt	$	(1,153	)	$	(1,153	)	$	(3	)	$	(3	)	$	(351	)	$	(352	)	$	(1	)	$	(2	)

~~(1)~~

~~Includes $(1.2) billion related to discontinued hedging relationships at both March 31, 2021 and December 31, 2020.~~

~~(2)~~

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

Fair Value and Gains and Losses on Derivative Instruments

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

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
March 31, 2021
March 31, 2022
ASSETS
Current Assets
Commodity	$	0	$	24	$	24	$	0	$	227	$	227
Interest rate		0		12		12		40		13		53
Total current derivative assets⁽¹⁾		0		36		36
Total current derivative assets⁽¹⁾								40		240		280
Noncurrent Assets
Commodity		0		85		85		0		214		214
Interest rate		287		441		728		266		449		715
Total noncurrent derivative assets⁽²⁾		287		526		813
Total noncurrent derivative assets⁽²⁾								266		663		929
Total derivative assets	$	287	$	562	$	849	$	306	$	903	$	1,209
LIABILITIES
Current Liabilities
Commodity	$	0	$	61	$	61	$	0	$	725	$	725
Interest rate		150		10		160		0		1		1
Total current derivative liabilities⁽³⁾		150		71		221
Foreign currency exchange rate								0		1		1
Total current derivative liabilities								0		727		727
Noncurrent Liabilities
Commodity		0		17		17		0		223		223
Interest rate		0		26		26		200		161		361
Total noncurrent derivative liabilities⁽⁴⁾		0		43		43
Foreign currency exchange rate								0		3		3
Total noncurrent derivative liabilities⁽³⁾								200		387		587
Total derivative liabilities	$	150	$	114	$	264	$	200	$	1,114	$	1,314
December 31, 2020
December 31, 2021
ASSETS
Current Assets
Commodity	$	0	$	58	$	58	$	0	$	103	$	103
Interest rate		0		9		9		1		17		18
Total current derivative assets⁽¹⁾		0		67		67
Foreign currency exchange rate								0		1		1
Total current derivative assets⁽¹⁾								1		121		122
Noncurrent Assets
Commodity		0		109		109		0		179		179
Interest rate		66		155		221		145		160		305
Total noncurrent derivative assets⁽²⁾		66		264		330
Foreign currency exchange rate								0		7		7
Total noncurrent derivative assets⁽²⁾								145		346		491
Total derivative assets	$	66	$	331	$	397	$	146	$	467	$	613
LIABILITIES
Current Liabilities
Commodity	$	0	$	42	$	42	$	0	$	304	$	304
Interest rate		363		10		373		42		13		55
Total current derivative liabilities⁽³⁾		363		52		415
Total current derivative liabilities								42		317		359
Noncurrent Liabilities
Commodity		0		13		13		0		165		165
Interest rate		19		39		58		295		49		344
Total noncurrent derivative liabilities⁽⁴⁾		19		52		71
Total noncurrent derivative liabilities⁽³⁾								295		214		509
Total derivative liabilities	$	382	$	104	$	486	$	337	$	531	$	868

(1)

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

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

~~(3)~~

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

~~(4)~~(3)

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

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

Derivatives in cash flow hedging relationships

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

Amount of Gain
(Loss) Reclassified
From AOCI to
Income

Increase
(Decrease) in
Derivatives
Subject to
Regulatory
Treatment⁽²⁾

(millions)

Three Months Ended March 31, 2021

Derivative type and location of gains (losses):

Commodity:

Purchased gas

$
—

$
(1
)

$
—

Interest rate:

Interest and related charges

52

(16
)

408

Total

$
52

$
(17
)

$
408

Three Months Ended March 31, 2020

Derivative type and location of gains (losses):

Commodity:

Operating revenue

$
6

Purchased gas

(3
)

Discontinued operations

1

Total Commodity

$
—

$
4

$
—

Interest rate:

Interest and related charges

(25
)

Discontinued operations

(2
)

Total interest rate

(336
)

(27
)

(563
)
Foreign currency⁽³⁾

(23
)

(6
)

—

Total

$
(359
)

$
(29
)

$
(563
)

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾		Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended March 31, 2022
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	33	$	(14	)	$	279
Total	$	33	$	(14	)	$	279

Three Months Ended March 31, 2021
Derivative type and location of gains (losses):
Commodity⁽⁴⁾	$	—	$	(1	)	$	—
Interest rate⁽³⁾		52		(16	)		408
Total	$	52	$	(17	)	$	408

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

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

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

Derivatives not designated as hedging instruments

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

Three Months Ended

March 31,

2021

2020

(millions)

Derivative type and location of gains (losses):

Commodity:

Operating revenue

$
(41
)

$
51

Purchased gas

0

(11
)

Electric fuel and other energy-related purchases

(44
)

(65
)

Discontinued operations

0

11

Interest rate:

Interest and related charges

319

(53
)

Discontinued operations

0

(8
)

Total

$
234

$
(75
)

(3)	Amounts recorded in Dominion Energy’s Consolidated Statement of Income are classified in interest and related charges.

(4)	Amounts recorded in Dominion Energy’s Consolidated Statement of Income are classified in purchased gas.

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾⁽²⁾
	Three Months Ended
	March 31,
	2022			2021
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	(330	)	$	(41	)
Purchased gas		2			0
Electric fuel and other energy-related purchases		59			(44	)
Interest rate:
Interest and related charges		196			319
Total	$	(73	)	$	234

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

(2)	Excludes amounts related to foreign currency exchange rate derivatives that are deferred to plant under construction within property, plant and equipment that will begin to amortize once the CVOW Commercial Project is placed in service.

Virginia Power

Balance Sheet Presentation

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

	March 31, 2021								December 31, 2020								March 31, 2022								December 31, 2021
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	71	$	15	$	0	$	56	$	111	$	6	$	0	$	105	$	32	$	10	$	0	$	22	$	110	$	8	$	0	$	102
Exchange		3		3		0		0	1		1			0		0		9		9		0		0		7		7		0		0
Interest rate contracts:
Over-the-counter		283		19		0		264	66		7			0		59		300		36		0		264		146		20		0		126
Foreign currency exchange rate contracts:
Over-the-counter																		0		0		0		0		8		0		0		8
Total derivatives, subject to a master netting or similar arrangement	$	357	$	37	$	0	$	320	$	178	$	14	$	0	$	164	$	341	$	55	$	0	$	286	$	271	$	35	$	0	$	236

(1)	Excludes $2$63 million and $3$29 million of derivative assets at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, which are not subject to master netting or similar arrangements.

	March 31, 2021								December 31, 2020								March 31, 2022								December 31, 2021
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	19	$	15	$	0	$	4	$	6	$	6	$	0	$	0	$	167	$	10	$	124	$	33	$	84	$	8	$	54	$	22
Exchange		4		3		1		0	1		1			0		0		136		9		127		0		43		7		36		0
Interest rate contracts:
Over-the-counter		150		19		0		131	376		7			0		369		200		36		0		164		337		20		0		317
Foreign currency exchange rate contracts:
Over-the-counter																		4		0		0		4		0		0		0		0
Total derivatives, subject to a master netting or similar arrangement	$	173	$	37	$	1	$	135	$	383	$	14	$	0	$	369	$	507	$	55	$	251	$	201	$	464	$	35	$	90	$	339

(1)

Excludes $5$1 million and ~~$22~~$6 million of derivative liabilities at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, which are not subject to master netting or similar arrangements.

Volumes

The following table presents the volume of Virginia Power’s derivative activity at March 31, ~~2021.~~2022. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		35		18
Fixed price⁽¹⁾						21		0
Basis(1)		151		495		146		463
Electricity (MWh):
Electricity (MWh in millions):
Fixed price		3,770,002		3,029,859		7		9
FTRs		18,264,727		0		18		0
Interest rate⁽²⁾ (millions)	$	850	$	1,200
Interest rate⁽²⁾ (in millions)					$	1,100	$	2,800
Foreign currency exchange rate⁽²⁾(in millions)					520 kr.		4,530 kr.

(1)	Includes options.

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

AOCI

The following table presents selected information related to losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at March 31, ~~2021:~~2022:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(27	)	$	(2	)	393 months	$	(25	)	$	(2	)	393 months
Total	$	(27	)	$	(2	)		$	(25	)	$	(2	)

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

Fair Value and Gains and Losses on Derivative Instruments

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

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
March 31, 2021
March 31, 2022
ASSETS
Current Assets
Commodity	$	0	$	11	$	11	$	0	$	80	$	80
Total current derivative assets⁽¹⁾		0		11		11
Interest rate								34		0		34
Total current derivative assets⁽¹⁾								34		80		114
Noncurrent Assets
Commodity		0		65		65		0		24		24
Interest rate		283		0		283		266		0		266
Total noncurrent derivative assets⁽²⁾		283		65		348
Total noncurrent derivative assets⁽²⁾								266		24		290
Total derivative assets	$	283	$	76	$	359	$	300	$	104	$	404
LIABILITIES
Current Liabilities
Commodity	$	0	$	21	$	21	$	0	$	240	$	240
Interest rate		150		0		150
Foreign currency exchange rate								0		1		1
Total current derivative liabilities		150		21		171		0		241		241
Noncurrent Liabilities
Commodity		0		7		7		0		64		64
Total noncurrent derivative liabilities⁽³⁾		0		7		7
Interest rate								200		0		200
Foreign currency exchange rate								0		3		3
Total noncurrent derivative liabilities⁽³⁾								200		67		267
Total derivative liabilities	$	150	$	28	$	178	$	200	$	308	$	508
December 31, 2020
December 31, 2021
ASSETS
Current Assets
Commodity	$	0	$	22	$	22	$	0	$	74	$	74
Total current derivative assets⁽¹⁾		0		22		22
Interest rate								1		0		1
Foreign currency exchange rate								0		1		1
Total current derivative assets⁽¹⁾								1		75		76
Noncurrent Assets
Commodity		0		93		93		0		72		72
Interest rate		66		0		66		145		0		145
Total noncurrent derivative assets⁽²⁾		66		93		159
Foreign currency exchange rate								0		7		7
Total noncurrent derivative assets⁽²⁾								145		79		224
Total derivative assets	$	66	$	115	$	181	$	146	$	154	$	300
LIABILITIES
Current Liabilities
Commodity	$	0	$	28	$	28	$	0	$	92	$	92
Interest rate		362		0		362		42		0		42
Total current derivative liabilities		362		28		390		42		92		134
Noncurrent Liabilities
Commodity		0		1		1		0		41		41
Interest rate		14		0		14		295		0		295
Total noncurrent derivative liabilities⁽³⁾		14		1		15
Total noncurrent derivative liabilities⁽³⁾								295		41		336
Total derivative liabilities	$	376	$	29	$	405	$	337	$	133	$	470

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

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

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

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

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾			Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾		Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended March 31, 2022
Derivative type and location of gains (losses):
Interest rate⁽³⁾										$	26	$	(1	)	$	279
Total										$	26	$	(1	)	$	279
Three Months Ended March 31, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	43		$	(1	)	$	407
Interest rate⁽³⁾										$	43	$	(1	)	$	407
Total	$	43		$	(1	)	$	407		$	43	$	(1	)	$	407
Three Months Ended March 31, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(61	)	$	0		$	(565	)
Total	$	(61	)	$	0		$	(565	)

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

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

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

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

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾⁽²⁾
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2021			2020			2022			2021
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating Revenue							$	(41	)	$	(2	)
Electric fuel and other energy-related purchases	$	(44	)	$	(65	)		57			(44	)
Operating revenue		(2	)		0
Total	$	(46	)	$	(65	)	$	16		$	(46	)

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

(2)Excludes amounts related to foreign currency exchange rate derivatives that are deferred to plant under construction within property, plant and equipment that will begin to amortize once the CVOW Commercial Project is placed in service.

Note 10. Investments

Dominion Energy

Equity and Debt Securities

Rabbi Trust Securities

Equity and fixed income securities and cash equivalents in Dominion Energy’s rabbi trusts and classified as trading totaled ~~$139~~$116 million and ~~$134~~$122 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

Decommissioning Trust Securities

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

	Amortized Cost			Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value			Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value
(millions)
March 31, 2021
March 31, 2022
Equity securities:⁽¹⁾
U.S.	$	1,573		$	3,036	$	(10	)				$	4,599		$	1,586	$	3,498	$	(13	)				$	5,071
Fixed income securities:⁽²⁾
Corporate debt instruments		698			32		(8	)		$	0		722			876		9		(45	)		$	0		840
Government securities		1,369			47		(14	)			0		1,402			1,358		14		(48	)			0		1,324
Common/collective trust funds		221			6		0				0		227			150		3		0				0		153
Insurance contracts		237			—		—						237			242		0		0						242
Cash equivalents and other⁽³⁾		(51	)		3		—				0		(48	)
Cash equivalents and other⁽³⁾																26		5		(47	)			0		(16	)
Total	$	4,047		$	3,124	$	(32	)	⁽⁴⁾	$	0	$	7,139		$	4,238	$	3,529	$	(153	)	⁽⁴⁾	$	0	$	7,614
December 31, 2020
December 31, 2021
Equity securities:⁽¹⁾
U.S.	$	1,756		$	2,948	$	(24	)				$	4,680		$	1,567	$	3,734	$	(13	)				$	5,288
Fixed income securities:⁽²⁾
Corporate debt instruments		572			58		(1	)		$	0		629			854		32		(5	)		$	0		881
Government securities		1,119			66		(1	)			0		1,184			1,382		43		(7	)			0		1,418
Common/collective trust funds		170			5		0				0		175			168		4		0				0		172
Insurance contracts		237			0		0						237			255		0		0						255
Cash equivalents and other⁽³⁾		(8	)		4		(1	)			0		(5	)
Cash equivalents and other⁽³⁾																9		2		(75	)			0		(64	)
Total	$	3,846		$	3,081	$	(27	)	⁽⁴⁾	$	0	$	6,900		$	4,235	$	3,815	$	(100	)	⁽⁴⁾	$	0	$	7,950

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

(2)	Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Changes in allowance for credit losses are included in other income.

(3)	Includes pending purchases of securities of ~~$63~~$1 million and ~~$49~~$35 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

(4)	The fair value of securities in an unrealized loss position was ~~$937 million~~$1.6 billion and ~~$293~~$883 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

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

	Three Months Ended March 31,						Three Months Ended March 31,
	2021			2020			2022			2021
(millions)
Net gains (losses) recognized during the period	$	279		$	(898	)	$	(206	)	$	279
Less: Net (gains) losses recognized during the period on securities sold during the period		(178	)		14			(1	)		(178	)
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾	$	101		$	(884	)
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾							$	(207	)	$	101

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

The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, ~~2021~~2022 by contractual maturity is as follows:

	Amount		Amount
(millions)
Due in one year or less	$	292	$	274
Due after one year through five years		640		610
Due after five years through ten years		614		596
Due after ten years		805		837
Total	$	2,351	$	2,317

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

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022		2021
(millions)
Proceeds from sales	$	1,765	$	602	$	814	$	1,765
Realized gains⁽¹⁾		232		66
Realized losses⁽¹⁾		59		69
Realized gains⁽¹⁾						40		232
Realized losses⁽¹⁾						54		59

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

Virginia Power

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

	Amortized Cost			Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value			Amortized Cost			Total Unrealized Gains		Total Unrealized Losses				Allowance for Credit Losses		Fair Value
(millions)
March 31, 2021
March 31, 2022
Equity securities:⁽¹⁾
U.S.	$	839		$	1,414	$	(9	)				$	2,244		$	857		$	1,619	$	(12	)				$	2,464
Fixed income securities:⁽²⁾
Corporate debt instruments		385			18		(3	)		$	0		400			535			4		(30	)		$	0		509
Government securities		601			18		(3	)			0		616			568			4		(19	)			0		553
Common/collective trust funds		86			0		0				0		86			55			0		0				0		55
Cash equivalents and other⁽³⁾		(24	)		—		—				0		(24	)
Cash equivalents and other⁽³⁾																(4	)		—		—				0		(4	)
Total	$	1,887		$	1,450	$	(15	)	⁽⁴⁾	$	0	$	3,322		$	2,011		$	1,627	$	(61	)	⁽⁴⁾	$	0	$	3,577
December 31, 2020
December 31, 2021
Equity securities:⁽¹⁾
U.S.	$	929		$	1,371	$	(21	)				$	2,279		$	841		$	1,720	$	(11	)				$	2,550
Fixed income securities:⁽²⁾
Corporate debt instruments		315			33		0			$	0		348			517			17		(3	)		$	0		531
Government securities		484			25		—				0		509			584			16		(2	)			0		598
Common/collective trust funds		58			0		0				0		58			53			0		0				0		53
Cash equivalents and other⁽³⁾		3			—		—				0		3
Cash equivalents and other⁽³⁾																2			—		—				0		2
Total	$	1,789		$	1,429	$	(21	)	⁽⁴⁾	$	0	$	3,197		$	1,997		$	1,753	$	(16	)	⁽⁴⁾	$	0	$	3,734

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

(2)	Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Changes in allowance for credit losses are included in other income.

(3)	Includes pending purchases of securities of ~~$24 million and $10~~$2 million at March 31, ~~2021~~2022, and pending sales of securities of $5 million at December 31, ~~2020, respectively.~~2021.

(4)	The fair value of securities in an unrealized loss position was ~~$434~~$863 million and ~~$142~~$425 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

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

	Three Months Ended March 31,						Three Months Ended March 31,
	2021			2020			2022			2021
(millions)
Net gains (losses) recognized during the period	$	143		$	(423	)	$	(102	)	$	143
Less: Net (gains) losses recognized during the period on securities sold during the period		(88	)		6			(4	)		(88	)
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾	$	55		$	(417	)
Unrealized gains (losses) recognized during the period on securities still held at period end⁽¹⁾							$	(106	)	$	55

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

The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, ~~2021~~2022 by contractual maturity is as follows:

	Amount		Amount
(millions)
Due in one year or less	$	111	$	83
Due after one year through five years		314		302
Due after five years through ten years		365		358
Due after ten years		312		374
Total	$	1,102	$	1,117

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

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022		2021
(millions)
Proceeds from sales	$	789	$	294	$	392	$	789
Realized gains⁽¹⁾		106		31
Realized losses⁽¹⁾		23		31
Realized gains⁽¹⁾						16		106
Realized losses⁽¹⁾						19		23

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

Equity Method Investments

Dominion Energy

~~Dominion Energy~~ recorded equity earnings on its investments of ~~$80~~$80 million ~~and $4 million~~ for both the three months ended March 31, 2022 and 2021, ~~and 2020, respectively,~~ in ~~other income~~earnings from equity method investees in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity ~~earnings (losses)~~losses of ~~$(8)~~$2 million and ~~$35~~$8 million for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively, in discontinued operations related to its investment in Atlantic Coast Pipeline. Dominion Energy received distributions of ~~$73~~$76 million and $5$73 million for the three months ended March 31, 2022 and 2021, respectively. Dominion Energy made contributions of $74 million and ~~2020,~~$1.0 billion for the three months ended March 31, 2022 and 2021, respectively. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was ~~$224~~$231 million and ~~$213~~$244 million, respectively. At March 31, 2022, these differences are primarily comprised of $11 million of equity method goodwill that is not being amortized and a $219 million basis difference from Dominion Energy’s investment in Cove Point, which is being amortized over the useful lives of the underlying assets. At December 31, 2021, these differences are comprised of $27 million of equity method goodwill that is not being amortized, a ~~$226~~$221 million basis difference from Dominion Energy’s ~~investments~~investment in Cove Point, which is being amortized over the useful lives of the underlying assets, and a net $(29) million basis difference primarily attributable to an unfunded commitment made to Align RNG. At December 31, 2020, these differences are comprised of $27 million of equity method goodwill that is not being amortized, a $227 million basis difference from Dominion Energy’s investments in Cove Point, which is being amortized over the useful lives of the underlying assets and a net $(41)$(4) million basis difference primarily attributable to an unfunded commitment made to Align RNG.

Cove Point

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

Point which is accounted for as an equity method investment, as discussed in Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

Income before income taxes recorded by Cove Point was $151 million and $138 million for the three months ended March 31, 2022 and 2021, ~~and 2020, was $138 million and $133 million,~~ respectively. ~~For the periods prior to closing of the GT&S Transaction, earnings attributable to Dominion Energy are presented in discontinued operations and subsequent to the closing, earnings~~Earnings attributable to Dominion Energy are presented within ~~other income~~ earnings from equity method investees in its Consolidated Statements of Income.

Dominion Energy recorded distributions from Cove Point of $76 million and $73 million for the three months ended March 31, ~~2021. NaN contributions were made to Cove Point for the three months ended March 31, 2021.~~2022 and 2021, respectively.

Atlantic Coast Pipeline

A description of Dominion Energy’s investment in Atlantic Coast Pipeline, including events that led to the cancellation of the Atlantic Coast Pipeline Project in July 2020, is included in Note 9 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy has recorded a liability of ~~$97~~$115 million and ~~$1.1 billion,~~$113 million, respectively, in other current liabilities in its Consolidated Balance Sheets as a result of its share of equity losses exceeding its investment which reflects Dominion Energy’s obligations on behalf of Atlantic Coast Pipeline related to its ~~credit facility, through February 2021, and~~ AROs.

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

Dominion Energy recorded contributions of $965 ~~million and $16~~ million during the three months ended March 31, 2021 ~~and 2020, respectively,~~to Atlantic Coast Pipeline. Dominion Energy recorded 0 contributions during the three months ended March 31, 2022 to Atlantic Coast Pipeline.

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

~~DETI provided services~~Wrangler

In March 2022, Dominion Energy sold its remaining 15% noncontrolling partnership interest in Wrangler to ~~Atlantic Coast Pipeline which totaled $20~~Interstate Gas Supply, Inc. for cash consideration of $85 million. Dominion Energy recognized a gain of $11 million ($8 million after-tax), included in other income, in its Consolidated Statements of Income for the three months ended March 31, ~~2020, included in discontinued~~2022.

All activity relating to Wrangler is recorded within the Corporate and Other segment.

Dominion Privatization

In February 2022, Dominion Energy entered into an agreement to form Dominion Privatization, a partnership with Patriot. Dominion Privatization, through its wholly-owned subsidiaries, will maintain and operate electric and gas distribution infrastructure under service concession arrangements with certain U.S. military installations. Under the agreement, Dominion Energy will contribute its existing privatization operations, excluding contracts held by DESC, and Patriot will contribute cash.

The initial contribution, consisting of privatization operations in South Carolina, Texas and Pennsylvania, closed in March 2022 for which Dominion ~~Energy’s~~Energy received total consideration of $120 million, subject to customary closing adjustments, comprised of $60 million in cash proceeds and a 50% noncontrolling ownership interest in Dominion Privatization with an initial fair value of $60 million, estimated using the market approach. This is considered a Level 2 fair value measurement given that it is based on the agreed-upon sales price. In connection with the transaction, Dominion Energy recorded a gain of $23 million ($16 million after-tax), presented in other operations and maintenance expense in its Consolidated Statements of Income.

~~Wrangler~~

~~A description of~~ Dominion Energy’s 50% noncontrolling ownership interest in Dominion Privatization is accounted for as an equity method investment as Dominion Energy has the ability to exercise significant influence, but not control, over the investee.

Dominion Energy expects to contribute its existing privatization operations in ~~Wrangler is included~~Virginia to Dominion Privatization by the end of 2022, contingent on clearance or approval under the Hart-Scott-Rodino Act and other customary closing and regulatory conditions. In April 2022, Dominion Energy filed with the Federal Trade Commission for approval under the Hart-Scott-Rodino Act. The contribution of the service concession arrangements currently held by Virginia Power also requires approval from the Virginia and North Carolina Commissions. Upon closing of the second contribution, Dominion Energy expects to receive cash proceeds totaling $108 million, subject to customary closing adjustments, and to recognize a gain of approximately $130 million ($100 million after-tax). When this future contribution occurs, Dominion Energy expects to maintain a 50% noncontrolling ownership interest in ~~Note 9 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.~~ Dominion Privatization.

At March 31, ~~2021 and December 31, 2020, $72 million and $63~~2022, $85 million of contracts and related assets and ~~$15 million and $15~~$4 million of liabilities ~~respectively,~~ associated with ~~the remaining nonregulated retail energy marketing~~existing privatization operations ~~expected to be contributed to Wrangler by December 2021 were~~in Virginia are classified as held for sale and ~~were included~~reflected in current assets held for sale and current liabilities held for sale, onrespectively, in Dominion Energy’s Consolidated Balance Sheets ~~respectively. The related disposal group~~and in other current assets and other current liabilities, respectively, in Virginia Power’s Consolidated Balance Sheets.

All activity relating to Dominion Privatization is ~~primarily comprised of customer receivables, goodwill, inventories~~reflected within the Corporate and ~~accounts payable.~~Other segment.

Note 11. Property, Plant and Equipment

Acquisitions of Nonregulated Solar Projects

Other than the items discussed below, there have been no significant updates to acquisitions of solar projects by the Companies from those discussed in Note 10 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

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

Date Agreement
Entered

Date Agreement Closed

Project Location

Project Name

Project Cost
(millions)⁽¹⁾

Date of Commercial
Operations

MW
Capacity

February 2021

Expected 2021

Virginia

Bookers Mill

$
200

Expected 2023

127

~~(1)~~

~~Includes acquisition cost~~.

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

Date Agreement
Entered

Date Agreement Closed

Project Location

Project Name

Project Cost
(millions)⁽¹⁾

Date of Commercial
Operations

MW
Capacity

May 2020

October 2020

South Carolina

Trask

$
22

March 2021

12

August 2020

Expected 2021

Ohio

Hardin II

300

Expected 2023

150

Project Name

Date Agreement Entered

Date Agreement

Closed

Project

Location

Project Cost

(millions)⁽¹⁾

Date of

Commercial

Operations

MW Capacity

Pumpkinseed

May 2020

Virginia

140

Expected 2022

Bookers Mill

February 2021

June 2021

Virginia

230

Expected 2023

127

(1)	Includes acquisition cost.

InThe following table presents acquisitions by Dominion Energy of solar projects in addition to the ~~facilities discussed above,~~Virginia Power projects presented above. Dominion Energy has also entered into various agreements to install solar facilities, primarily at schools in Virginia, with in-service dates throughout 2021. As of March 2021, Dominion Energy anticipates a total projected cost of approximately $59 million under these agreements with an associated aggregate generation capacity of 29 MW. Dominion Energy has claimed or expects to claim federal investment tax credits on the projects.

Project Name

Date Agreement Entered

Date Agreement

Closed

Project

Location

Project Cost

(millions)⁽¹⁾

Date of

Commercial

Operations

MW Capacity

Madison

July 2020

Virginia

130

Expected 2023

Atlanta Farms

March 2022

Expected 2022

Ohio

390

Expected 2023

200

Hardin II

August 2020

Expected 2022

Ohio

295

Expected split⁽²⁾

150

(1)	Includes acquisition cost.

(2)	Expected to be split between 2022 and 2023.

Note 12. Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

March 31, 2021

December 31, 2020

(millions)

Dominion Energy

Regulatory assets:

Deferred project costs and DSM programs for gas utilities⁽¹⁾

$
17

$
35

Unrecovered gas costs⁽²⁾

63

78

Deferred rider costs for Virginia electric utility⁽³⁾

123

98

Deferred nuclear refueling outage costs⁽⁴⁾

54

53

NND Project costs⁽⁵⁾

138

138

PJM transmission rates⁽⁶⁾

48

71

Other

207

226

Regulatory assets-current

650

699

Pension and other postretirement benefit costs⁽⁷⁾

1,304

1,363

Deferred rider costs for Virginia electric utility⁽³⁾

347

311

Deferred project costs for gas utilities⁽¹⁾

658

632

Interest rate hedges⁽⁸⁾

624

1,042

AROs and related funding⁽⁹⁾

340

331

Cost of reacquired debt⁽¹⁰⁾

242

245

NND Project costs⁽⁵⁾

2,330

2,364

Ash pond and landfill closure costs⁽¹¹⁾

2,317

2,301

Deferred cost of fuel used in electric generation⁽¹²⁾

82

—

Other

549

544

Regulatory assets-noncurrent

8,793

9,133

Total regulatory assets

$
9,443

$
9,832

Regulatory liabilities:

Deferred cost of fuel used in electric generation⁽¹²⁾

$
33

$
58

Provision for future cost of removal and AROs⁽¹³⁾

183

183

Reserve for refunds to electric utility customers⁽¹⁴⁾

127

128

Reserve for future credits to Virginia electric customers⁽¹⁵⁾

—

120

Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾

—

12

Income taxes refundable through future rates⁽¹⁷⁾

119

124

Monetization of guarantee settlement⁽¹⁸⁾

67

67

Other

112

117

Regulatory liabilities-current

641

809

Income taxes refundable through future rates⁽¹⁷⁾

4,365

4,376

Provision for future cost of removal and AROs⁽¹³⁾

2,180

2,150

Nuclear decommissioning trust⁽¹⁹⁾

1,805

1,719

Monetization of guarantee settlement⁽¹⁸⁾

886

903

Reserve for refunds to electric utility customers⁽¹⁴⁾

505

540

Overrecovered other postretirement benefit costs⁽²⁰⁾

84

111

Other

377

388

Regulatory liabilities-noncurrent

10,202

10,187

Total regulatory liabilities

$
10,843

$
10,996

	March 31, 2022		December 31, 2021
(millions)
Dominion Energy
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	240	$	251
Deferred project costs and DSM programs for gas utilities⁽²⁾		45		53
Unrecovered gas costs⁽³⁾		82		191
Deferred rider costs for Virginia electric utility⁽⁴⁾		83		72
Ash pond and landfill closure costs⁽⁵⁾		150		193
Deferred nuclear refueling outage costs⁽⁶⁾		76		79
NND Project costs⁽⁷⁾		138		138
Deferred early plant retirement charges⁽⁸⁾		226		226
Derivatives⁽⁹⁾		264		112
Other		173		177
Regulatory assets-current		1,477		1,492
Unrecognized pension and other postretirement benefit costs⁽¹⁰⁾		577		548
Deferred rider costs for Virginia electric utility⁽⁴⁾		498		489
Deferred project costs for gas utilities⁽²⁾		696		675
Interest rate hedges⁽¹¹⁾		612		899
AROs and related funding⁽¹²⁾		359		329
NND Project costs⁽⁷⁾		2,191		2,226
Ash pond and landfill closure costs⁽⁵⁾		2,226		2,223
Deferred cost of fuel used in electric generation⁽¹⁾		717		409
Deferred early plant retirement charges⁽⁸⁾		169		226
Other		613		619
Regulatory assets-noncurrent		8,658		8,643
Total regulatory assets	$	10,135	$	10,135
Regulatory liabilities:
Provision for future cost of removal and AROs⁽¹³⁾		181		181
Reserve for refunds and rate credits to electric utility customers⁽¹⁴⁾		243		420
Income taxes refundable through future rates⁽¹⁵⁾		150		153
Monetization of guarantee settlement⁽¹⁶⁾		67		67
Derivatives⁽⁹⁾		103		69
Other		86		96
Regulatory liabilities-current		830		986
Income taxes refundable through future rates⁽¹⁵⁾		4,164		4,260
Provision for future cost of removal and AROs⁽¹³⁾		2,346		2,331
Nuclear decommissioning trust⁽¹⁷⁾		2,016		2,158
Monetization of guarantee settlement⁽¹⁶⁾		753		831
Reserve for refunds and rate credits to electric utility customers⁽¹⁴⁾		413		448
Unrecognized pension and other postretirement benefit costs⁽¹⁰⁾		188		200
Overrecovered other postretirement benefit costs⁽¹⁸⁾		114		105
Other		442		380
Regulatory liabilities-noncurrent		10,436		10,713
Total regulatory liabilities	$	11,266	$	11,699

(1)

Reflects deferred fuel expenses for the Virginia, North Carolina and South Carolina jurisdictions of Dominion Energy’s electric generation operations. Reflects a $66 million reduction recorded in the first quarter of 2022 from the application of a portion of the monetization of guarantee settlement previously reflected as regulatory liabilities associated with the approval of DESC’s cost of fuel proceedings. See Note 13 for additional information.

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

~~(2)~~(3)

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

~~(3)~~(4)

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

~~(4)~~(5)

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

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

~~(5)~~(7)

Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20-year period ending in 2039. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for ~~more~~additional information.

~~(6)~~(8)

Reflects ~~current portion~~amounts from the early retirements of ~~amounts~~certain coal- and oil-fired generating units to be ~~recovered~~amortized through ~~retail rates~~2023 in ~~Virginia~~accordance with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for ~~payments Virginia Power expects to make to PJM through 2026 under~~ the ~~terms of a FERC settlement agreement in May 2018 resolving a PJM cost allocation matter.~~year ended December 31, 2021 for additional information.

~~(7)~~(9)

For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.

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

~~(8)~~(11)

Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 27 years as of March 31, ~~2021.~~2022.

~~(9)~~(12)

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

~~(10)~~

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

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

~~(12)~~

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

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

(14)

Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period effective February 2019, in connection with the SCANA Merger Approval Order. See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for ~~more~~additional information.

~~(15)~~

~~Represents a reserve related~~ Also reflects amounts to ~~the use of a CCRO~~be refunded to jurisdictional retail electric customers in ~~accordance~~Virginia associated with the ~~GTSA associated with~~settlement of the 2021 Triennial Review. See Note ~~13 for additional information.~~

~~(16)~~

Balance refundable to customers related to the decrease in revenue requirements for recovery of income taxes at the Companies’ regulated electric generation and electric and natural gas distribution operations. See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for ~~more~~additional information.

~~(17)~~(15)

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

~~(18)~~(16)

Reflects amounts to be refunded to DESC electric service customers over a 20-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement. See Note 3 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for ~~more~~additional information.

~~(19)~~(17)

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

~~(20)~~(18)

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

March 31, 2021

December 31, 2020

(millions)

Virginia Power

Regulatory assets:

Deferred rider costs⁽¹⁾

$
123

$
98

Deferred nuclear refueling outage costs⁽²⁾

54

53

PJM transmission rates⁽³⁾

48

71

Other

67

73

Regulatory assets-current

292

295

Deferred rider costs⁽¹⁾

347

311

Interest rate hedges⁽⁴⁾

327

733

Ash pond and landfill closure costs⁽⁵⁾

2,317

2,301

Deferred cost of fuel used in electric generation⁽⁶⁾

82

—

Other

162

164

Regulatory assets-noncurrent

3,235

3,509

Total regulatory assets

$
3,527

$
3,804

Regulatory liabilities:

Deferred cost of fuel used in electric generation⁽⁶⁾

$
33

$
58

Provision for future cost of removal⁽⁷⁾

152

152

Reserve for future credits to Virginia electric customers⁽⁸⁾

—

120

Income taxes refundable through future rates⁽⁹⁾

54

54

Other

33

41

Regulatory liabilities-current

272

425

Income taxes refundable through future rates⁽⁹⁾

2,406

2,404

Nuclear decommissioning trust⁽¹⁰⁾

1,805

1,719

Provision for future cost of removal⁽⁷⁾

996

980

Deferred cost of fuel used in electric generation⁽⁶⁾

2

54

Other

193

181

Regulatory liabilities-noncurrent

5,402

5,338

Total regulatory liabilities

$
5,674

$
5,763

	March 31, 2022		December 31, 2021
(millions)
Virginia Power
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	119	$	131
Deferred rider costs⁽²⁾		83		72
Ash pond and landfill closure costs⁽³⁾		150		193
Deferred nuclear refueling outage costs⁽⁴⁾		76		79
Deferred early plant retirement charges⁽⁵⁾		226		226
Derivatives⁽⁶⁾		257		105
Other		41		44
Regulatory assets-current		952		850
Deferred rider costs⁽²⁾		498		489
Interest rate hedges⁽⁷⁾		326		604
Ash pond and landfill closure costs⁽³⁾		2,226		2,223
Deferred cost of fuel used in electric generation⁽¹⁾		717		409
Deferred early plant retirement charges⁽⁵⁾		169		226
Other		205		179
Regulatory assets-noncurrent		4,141		4,130
Total regulatory assets	$	5,093	$	4,980
Regulatory liabilities:
Provision for future cost of removal⁽⁸⁾		154		154
Reserve for refunds to Virginia electric customers⁽⁹⁾		132		306
Income taxes refundable through future rates⁽¹⁰⁾		63		63
Derivatives⁽⁶⁾		61		51
Other		50		73
Regulatory liabilities-current		460		647
Income taxes refundable through future rates⁽¹⁰⁾		2,305		2,335
Nuclear decommissioning trust⁽¹¹⁾		2,016		2,158
Provision for future cost of removal⁽⁸⁾		1,055		1,043
Reserve for refunds to Virginia electric customers⁽⁹⁾		19		25
Other		208		179
Regulatory liabilities-noncurrent		5,603		5,740
Total regulatory liabilities	$	6,063	$	6,387

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

(2)

~~(2)~~

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

(3)	Reflects current portion of amounts to be recovered through retail rates in Virginia for payments Virginia Power expects to make to PJM through 2026 under the terms of a FERC settlement agreement in May 2018 resolving a PJM cost allocation matter.

~~(4)~~

~~(5)~~

~~(6)~~

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

(5)

Reflects amounts from the early retirements of certain coal- and oil-fired generating units to be amortized through 2023 in accordance with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021 for additional information.

(6)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.

(7)

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

~~(8)~~(9)

~~Represents a reserve related~~Reflects amounts to ~~the use of a CCRO~~be refunded to jurisdictional retail electric customers in ~~accordance~~Virginia associated with the ~~GTSA associated with~~settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021 for additional information.

~~(9)~~(10)

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

~~(10)~~(11)

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

At March 31, ~~2021,~~2022, Dominion Energy and Virginia Power regulatory assets include $4.1 billion and ~~$2.8~~$3.0 billion, respectively, on which they do not expect to earn a return during the applicable recovery period. With the exception of certain items discussed above, the majority of these expenditures are expected to be recovered within the next two years.

Note 13. Regulatory Matters

Regulatory Matters Involving Potential Loss Contingencies

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

Other Regulatory Matters

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

2021.

Virginia Regulation

~~2021 Triennial Review~~

Virginia Fuel Expenses

In ~~March~~May 2022, Virginia Power filed its annual fuel factor filing with the Virginia Commission to recover an estimated $2.3 billion in Virginia jurisdictional projected fuel expense for the rate year beginning July 1, 2022 and a projected $1.0 billion under-recovered balance as of June 30, 2022. Virginia Power’s proposed fuel rate represents a fuel revenue increase of $1.8 billion when applied to projected kilowatt-hour sales for that period. Virginia Power also proposed alternatives to recover this under-collected balance over a two- or three-year period. Under these alternatives, Virginia Power’s fuel revenues for the rate year would increase by $1.3 billion or $1.2 billion, respectively. In addition, Virginia Power proposed a change in the timing of fuel cost recovery for certain customers that would consider those customers’ portion of the projected under-recovered balance to have been recovered as of June 30, 2022. If approved, Virginia Power expects to recognize a charge of approximately $155 million to its Consolidated Statement of Income associated with these certain customers. This matter is pending.

Renewable Generation Projects

In September 2021, Virginia Power filed its base rate case and accompanying schedules in support of the 2021 Triennial Review. In its filing, Virginia Power did not request an increase in base rates for generation and distribution services and proposed that base rates remain at their existing level. Virginia Power’s earnings test analysis, as filed, demonstrates it earned a combined ROE of 10.85% on its generation and distribution services for the test period, before accounting for forgiven customer balances. Pursuant to Virginia legislation, forgiven customer balances are excluded from the cost of service in determining test period revenues as part of the 2021 Triennial Review. To the extent that the Virginia Commission determines total earnings for the test period to be above Virginia Power’s authorized earnings band, the forgiven balance amounts are offset against the available revenues in the determination of any customer bill credits, or utilization of a CCRO. ~~Test period earnings may be further reduced by~~ Virginia Commission approved investment amounts in qualifying solar or wind generation facilities or electric distribution grid transformation projects that Virginia Power elects to include as a CCRO under the GTSA. In its filing, Virginia Power has elected to utilize $26 million of the Coastal Virginia Offshore Wind Pilot project investment as a CCRO to offset available revenues. ~~The Virginia Commission will determine whether Virginia Power’s earnings for the test period, considered as a whole, were within 70 basis points above or below the authorized ROE of 9.2%.~~ Should the Virginia Commission determine that there are additional available revenues for earnings sharing, then Virginia Power has contingently elected to offset those revenues with additional Virginia Commission approved qualifying CCRO investments. The Virginia Commission will also authorize an ROE for Virginia Power that will be applied to Virginia Power’s riders prospectively and that will also be utilized to measure base rate earnings as of January 1, 2021. Virginia Power is requesting authorization of an ROE of 10.8% based on Virginia Power’s current cost of equity. Pursuant to the Regulation Act, Virginia Power’s authorized ROE shall not be set lower than the average of either (i) the returns reported for the three previous years by not less than a majority of comparable utilities in the Southeastern U.S., with certain limitations as described in the Regulation Act, or (ii) the authorized returns that are set by the applicable regulatory commissions for the same select peer group. ~~This matter is pending.~~

In the third and fourth quarters of 2020, Virginia Power recorded a net charge of $130 million related to the use of a CCRO in accordance with the GTSA. In the first quarter of 2021, Virginia Power recorded a benefit of $130 million ($97 million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income to adjust its reserve related to the use of a CCRO in accordance with the GTSA. These amounts reflect the impact related to jurisdictional customers as a result of the 2021 Triennial Review as well as the impact on certain non-jurisdictional customers which follow Virginia Power’s jurisdictional customer rate methodology.

~~Utility Disconnection Moratorium Legislation~~

In November 2020, legislation was enacted in Virginia relating to the moratorium on utility disconnections during the COVID-19 pandemic and resulted in Virginia Power forgiving Virginia jurisdictional retail electric customer balances that were more than 30 days past due as of September 30, 2020. As a result, Virginia Power recorded a charge of $127 million in the fourth quarter of 2020. ~~In connection with the Virginia 2021 budget process, in the first quarter of 2021 Virginia Power recorded a charge of $76 million ($56~~

~~million after-tax) in impairment of assets and other charges in its Consolidated Statements of Income for Virginia~~ ~~jurisdictional retail electric customer balances that were more than 30 days past due as of~~ ~~December 31, 2020 that Virginia Power is required to forgive. These forgiven customer balances are factored into~~ ~~Virginia Power’s 2021 Triennial Review as discussed above.~~

~~Solar Facility Projects~~

In May 2020 and July 2020, Virginia Power entered into and closed on separate agreements to acquire Grassfield Solar, Norge Solar and Sycamore Solar. The projects are expected to cost approximately $170 million in aggregate once constructed, including the initial acquisition cost. The facilities are expected to generate 82 MW combined and be placed into service in 2021 and 2022. In October 2020, Virginia Power filed an applicationpetition with the Virginia Commission for CPCNs to construct and operate ~~these~~13 utility-scale projects totaling approximately 661 MW of solar generation and 70 MW of energy storage as part of its efforts to meet the renewable generation development requirements under the VCEA. The projects are expected to cost approximately $1.4 billion in the aggregate, excluding financing costs, and be placed into service between 2022 and 2023. In ~~April 2021,~~March 2022, the Virginia Commission approved the ~~application.~~petition.

Riders

~~Below is a discussion of significant riders associated with various Virginia Power projects:~~

•

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

•

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

•

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

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

Rider Name

Application Date

Approval Date

Rate Year

Beginning

Total Revenue

Requirement

(millions)

Increase (Decrease)

Over Previous Year

(millions)

Application Date

Approval Date

Rate Year

Beginning

Total Revenue

Requirement

(millions)

Increase (Decrease)

Over Previous Year

(millions)

Rider B

June 2020

February 2021

April 2021

)

Rider GV

June 2020

February 2021

April 2021

153

Rider CCR

February 2022

Pending

December 2022

231

Rider CE⁽¹⁾

September 2021

March 2022

May 2022

Rider R

June 2020

February 2021

April 2021

June 2021

March 2022

April 2022

Rider S

June 2020

February 2021

April 2021

194

)

Rider W

June 2020

February 2021

April 2021

120

Rider R

June 2021

March 2022

April 2023

)

Rider RGGI⁽²⁾

December 2021

Withdrawn

Rider SNA⁽³⁾

October 2021

Pending

September 2022

107

N/A

Rider T1⁽⁴⁾

May 2022

Pending

September 2022

706

(161

)

Rider U⁽⁵⁾

June 2021

March 2022

April 2022

Rider US-3

July 2020

March 2021

June 2021

August 2021

March 2022

June 2022

Rider US-4

July 2020

March 2021

June 2021

August 2021

March 2022

June 2022

(1)	Associated with solar generation and energy storage projects requested for approval in September 2021, solar generation projects approved in April 2021 and certain small-scale solar projects.

(2)	In January 2022, Virginia Power filed a motion to withdraw its application as a result of the announcement by the Governor of Virginia that he intends to withdraw Virginia from RGGI. The Virginia Commission granted Virginia Power’s motion in April 2022. See additional discussion below.

(3)

Virginia Power also requested approval of cost recovery of approximately $1.2 billion through Rider SNA for the first phase of nuclear life extension program which includes investments through 2024.In April 2022, Virginia Power, the Virginia Commission staff and certain interested parties filed a proposed stipulation recommending that costs incurred after February 2022 associated with the first phase of the nuclear life extension program for North Anna be deferred and requested for recovery in a subsequent Rider SNA filing.

(4)	Consists of $482 million for the transmission component of Virginia Power’s base rates and $224 million for Rider T1.

(5)	Consists of $60 million for previously approved phases and $35 million for phase six costs for Rider U.

~~Electric Transmission Projects~~

Description and Location
of Project

Application
Date

Approval
Date

Type of
Line

Miles of
Lines

Cost Estimate
(millions)

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

April 2021

Pending

500 kV

26

$
95

~~North Carolina Regulation~~

~~PSNC Base Rate Case~~

In ~~April 2021, PSNC~~May 2022, Virginia Power filed ~~its general rate case application, direct testimony, exhibits, and schedules~~a petition with the ~~North Carolina Commission. PSNC proposed~~Virginia Commission requesting a ~~non-fuel,~~suspension of Rider RGGI approved in August 2021. Virginia Power also requested that RGGI compliance costs incurred and unrecovered through July 2022 be recovered through existing base ~~rate increase~~rates in effect during the period incurred. If approved by the Virginia Commission, Virginia Power expects to record charges to its Consolidated Statement of ~~$53 million~~Income for the amount of any unrecovered costs, which are estimated to be ~~effective November 1, 2021. After considering~~approximately $215 million, including the ~~benefits~~impact of ~~the 2017 Tax Reform Act, the net revenue increase to~~certain non-jurisdictional customers ~~would be approximately $42 million. The base~~which follow Virginia Power’s jurisdictional customer rate increase was proposed to recover the significant investment in infrastructure to serve a growing customer base, improve safety and reliability of the transmission and distribution system and enhance energy efficiency and sustainability. The proposed rates would provide for an ROE of 10.25% compared to the currently authorized ROE of 9.7%.methodology. This matter is pending.

52Electric Transmission Project

Description and Location

of Project

Application

Date

Approval

Date

Type of

Line

Miles of

Lines

Cost Estimate

(millions)

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

April 2021

April 2022

500 kV

Nimbus line loop and substation and new 230 kV line in the County of Loudon, Virginia

February 2022

Pending

230 kV

South Carolina Regulation

DSM Programs

DESC has approval for a DSM rider through which it recovers expenditures related to its DSM programs. In January ~~2021,~~2022, DESC filed an application with the South Carolina Commission seeking approval to recover ~~$48~~$60 million of costs and net lost revenues associated with these programs, along with an incentive to invest in such programs. In April ~~2021,~~2022, the South Carolina Commission approved the ~~filing.~~request, effective with the first billing cycle of May 2022.

Cost of Fuel

DESC’s retail electric rates include a cost of fuel component approved by the South Carolina Commission which may be adjusted periodically to reflect changes in the price of fuel purchased by DESC. In ~~February 2021, DESC filed a proposal with~~April 2022, the South Carolina Commission approved DESC’s request to increase the total fuel cost component of retail electric rates. DESC’s proposed adjustment would increase annual base fuel component recoveries by $36 million and is designed to recover DESC’s current base fuel costs, net of the existing over-collected balance, over the 12-month period beginningrates, effective with the first billing cycle of May ~~2021. In addition, DESC proposed a decrease to its variable environmental component and an increase to its distributed energy resource component. In April 2021, the~~2022. The South Carolina Commission also approved DESC’s request to apply approximately $66 million representing the ~~filing.~~net balance of funds associated with the monetization of the bankruptcy settlement with Toshiba Corporation following the satisfaction of liens against NND Project property previously recorded in regulatory liabilities, as a reduction to its under-collected base fuel cost balance, along with a requested increase to DESC’s variable environmental and avoided capacity cost component. The net effect is an annual increase of $143 million.

Ohio Regulation

PIR Program

In 2008, East Ohio began PIR, aimed at replacing approximately 25% of its pipeline system. In April 2022, the Ohio Commission approved an extension of East Ohio’s PIR program for capital investments through 2026 with continuation of 3% increases of annual capital expenditures per year.

In February ~~2021,~~2022, East Ohio filed an application with the Ohio Commission requesting approval to adjust the PIR cost recovery rates for ~~2020~~2021 costs. The filing reflects gross plant investment for ~~2020~~2021 of ~~$178~~$225 million, cumulative gross plant investment of ~~$2.0~~$2.2 billion and ~~an annual~~a revenue requirement of ~~$243~~$273 million. This matter is pending.

CEP Program

In 2011, East Ohio began CEP which enables East Ohio to defer depreciation expense, property tax expense and carrying costs associated with CEP investments. In April ~~2021, East Ohio~~2022, certain parties filed an ~~application requesting approval~~appeal with the Supreme Court of Ohio appealing the Ohio Commission’s December 2020 order establishing the CEP rider, including the rate of return utilized in determining the revenue requirement. This matter is pending.

In February 2022, the Ohio Commission approved adjustments to ~~adjust the~~ CEP cost recovery rates for 2019 and 2020 costs. The approved rates reflect gross plant investment for 2019 and 2020 of $231 million, cumulative gross plant investment of $952 million and a revenue requirement of $118 million. The Ohio Commission also ordered that East Ohio should file its next base rate case by October 2023.

In April 2022, East Ohio filed an application with the Ohio Commission requesting approval to adjust CEP cost recovery rates for 2021 costs. The filing reflects gross plant investment for ~~2019~~2021 of ~~$137 million, gross plant investment for 2020 of $99~~$140 million, cumulative gross plant investment of ~~$957 million~~$1.1 billion and a revenue requirement of ~~$119~~$137 million. This matter is pending.

Utah Regulation

~~Purchased Gas~~Utah Base Rate Case

In ~~April 2021,~~May 2022, Questar Gas ~~submitted a filing~~filed its base rate case and schedules with the Utah ~~Commission~~Commission. Questar Gas proposed a non-fuel, base rate increase of $71 million effective January 2023. The base rate increase was proposed to recover the significant investment in distribution infrastructure for ~~a $43 million gas cost increase with~~the benefit of Utah customers. The proposed rates ~~effective June 2021.~~would provide for an ROE of 10.3% compared to the currently authorized ROE of 9.5%. This matter is pending.

Note 14. Leases

Other than the items discussed below, there have been no significant changes regarding the Companies’ leases as described in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

Dominion Energy’s Consolidated Statements of Income include ~~$34~~$4 million and ~~$32~~$34 million for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively, of rental revenue included in operating revenue. Dominion Energy’s Consolidated Statements of Income include ~~$27~~$9 million and ~~$23~~$27 million for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively, of depreciation expense included in depreciation, depletion and amortization, related to facilities subject to power purchase agreements under which Dominion Energy is the lessor.

Corporate Office Leasing Arrangement

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

Note 15. Variable Interest Entities

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

~~Dominion Energy~~

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

Virginia Power

Virginia Power purchased shared services from DES, an affiliated VIE, of ~~$96~~$98 million and ~~$93~~$96 million for the three months ended March 31, ~~2021~~2022 and ~~2020,~~2021, respectively. Virginia Power’s Consolidated Balance Sheets include amounts due to DES of ~~$35~~$111 million and ~~$175~~$20 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, recorded in payables to affiliates.

Note 16. Significant Financing Transactions

Credit Facilities and Short-term Debt

The Companies use short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. In addition, Dominion Energy utilizes cash and letters of credit to fund collateral requirements. Collateral requirements are impacted by commodity prices, hedging levels, Dominion Energy’s credit ratings and the credit quality of its counterparties.Other than the items discussed below, there have been no significant changes regarding the Companies’ credit facilities and short-term debt as described in Note 17 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021.

Dominion Energy

Dominion Energy’s short-term financing is supported by its $6.0 billion joint revolving credit facility that provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives.

At March 31, ~~2021,~~2022, Dominion Energy’s commercial paper and letters of credit outstanding, as well as its capacity available under the credit facility, were as follows:

	Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available		Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Capacity Available
(millions)
Joint revolving credit facility⁽¹⁾	$	6,000	$	2,477	$	99	$	3,424
Joint revolving credit facility⁽¹⁾									$	6,000	$	2,075	$	112	$	3,813

(1)

This credit facility matures in ~~March 2023~~June 2026, with the potential to be extended by the borrowers to June 2028, and can be used by the borrowers under the credit facility to support bank borrowings and the issuance of commercial paper, as well as to support up to a combined $2.0 billion of letters of ~~credit~~credit..

DESC and Questar Gas’ short-term financings are supported through access as co-borrowers to the joint revolving credit facility discussed above with the Companies. At March ~~30, 2021,~~31, 2022, the sub-limits for DESC and Questar Gas were $500 million and $250 million, respectively.

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

In addition to the credit facility mentioned above, Dominion Energy also has a credit facility which allows Dominion Energy to issue up to approximately $30 million in letters of credit and matures in June 2022. In April 2022, Dominion Energy entered into an agreement to amend and restate this facility to extend the maturity date to June 2025. At ~~both~~ March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy had ~~$30~~$20 million and $29 million in letters of credit outstanding under this ~~agreement.~~

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

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

Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~ 2021. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy’s Consolidated Balance Sheets include ~~$338~~$473 million and ~~$268~~$431 million, respectively, with respect to such notes presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Virginia Power

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

At March 31, ~~2021,~~2022, Virginia Power’s share of commercial paper and letters of credit outstanding under the joint revolving credit facility with Dominion Energy, Questar Gas and DESC was as follows:

	Facility Limit⁽¹⁾		Outstanding Commercial Paper		Outstanding Letters of Credit		Facility Limit⁽¹⁾		Outstanding Commercial Paper		Outstanding Letters of Credit
(millions)
Joint revolving credit facility⁽¹⁾	$	6,000	$	420	$	12
Joint revolving credit facility⁽¹⁾							$	6,000	$	686	$	38

(1)

The full amount of the facility is available to Virginia Power, less any amounts outstanding to co-borrowers Dominion Energy, Questar Gas and DESC. The sub-limit for Virginia Power is set ~~within~~pursuant to the terms of the facility ~~limit~~ but can be changed at the option of the borrowers ~~under the credit facility~~ multiple times per year. At March 31, ~~2021,~~2022, the sub-limit for Virginia Power was ~~$1.5~~$1.75 billion. If Virginia Power has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion Energy. This credit facility matures in ~~March 2023 and~~June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $2.0 billion (or the sub-limit, whichever is less) of letters of credit.

Long-term Debt

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

In ~~March 2021, PSNC~~January 2022, Virginia Power issued ~~through private placement, $150~~$600 million of ~~3.10%~~2.40% senior notes and $400 million of 2.95% senior notes that mature in ~~2051.~~2032 and 2051, respectively.

In April ~~2021,~~2022, Virginia Power remarketed two series of tax-exempt bonds, with an aggregate outstanding principal of approximately $138 million to new investors. Both bonds will bear interest at a coupon of 1.65% until May 2024, after which they will bear interest at a market rate to be determined at that time.

In May 2022, Dominion Energy ~~issued $600~~provided notice of its intention to borrow $900 million ~~of 1.45% senior notes~~under its Sustainability Revolving Credit Facility which matures in 2024 and ~~$500 million of 3.30% senior notes that mature in 2026 and 2041, respectively.~~bears interest at a variable rate.

Preferred Stock

Dominion Energy is authorized to issue up to 20 million shares of preferred stock, which may be designated into separate classes. At both March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy had issued and outstanding ~~2.4~~3.4 million shares of preferred stock, 1.6 million, 0.8 million and ~~0.8~~1.0 million of which were designated as the Series A Preferred Stock, ~~and~~ the Series B Preferred Stock and the Series C Preferred Stock, respectively.

Dominion Energy recorded dividends of $7 million ($4.375 per share) for both the three months ended March 31, 2022 and 2021 on the Series A Preferred Stock. Dominion Energy recorded dividends of $9 million ($11.625 per share) for both the three months ended March 31, 2022 and 2021 on the Series B Preferred Stock. Dominion Energy recorded dividends of $11 million ($10.875 per share) for the three months ended March 31, 2022 on the Series C Preferred Stock.

Other than as discussed below, there have been no significant changes to Dominion Energy’s Series A Preferred Stock, ~~and~~ Series B Preferred Stock and Series C Preferred Stock as described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021.

2019 Corporate Units

The 2019 Equity Units, initially issued in the form of 2019 Series A Corporate Units, are described in Note 19 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~ 2021.

Pursuant to the terms of the 2019 Equity Units, Dominion Energy ~~recorded dividends~~will conduct a final remarketing for shares of $7Series A Preferred Stock in May 2022. In the event of a successful remarketing, the dividend rate on the preferred stock may be reset and the conversion rate on the preferred stock may increase depending on the closing price of Dominion Energy’s common stock on the date of the remarketing. In May 2022, Dominion Energy received a commitment from a financial institution to purchase up to 1.6 million ~~($4.375 per share)~~shares of Series A Preferred Stock in the final remarketing if any such shares included in the final remarketing are not sold to other purchasers through a marketed process at a dividend rate of not more than 1.75% for the June 2022 through August 2022 dividend period, which dividend rate will increase to 6.75% effective September 2022. As a result, Dominion Energy, subject to approval by its Board of Directors and ~~$9 million ($11.625 per share) during both~~ the ~~three months ended March 31, 2021 and 2020 on~~settlement of a successful remarketing, will redeem all outstanding shares of the Series A Preferred Stock ~~and~~in September 2022. In addition, Dominion Energy committed to make a short-term deposit of at least $1.6 billion but not more than $2.0 billion at the financial institution in May 2022. Dominion Energy will not directly receive proceeds from a successful remarketing as the remarketing will be conducted on behalf of investors that, as of the remarketing, continue to hold corporate units or otherwise elect to participate in the remarketing. Proceeds from a successful remarketing attributable to investors that continue to hold corporate units would be used to pay the purchase price to Dominion Energy for issuance of its common stock under the stock purchase contracts that are a component of such corporate units. In accordance with the terms of the 2019 Equity Units, if the final remarketing is unsuccessful, shares of the Series BA Preferred Stock ~~respectively.~~ that remain a component of such corporate units as of the remarketing will be tendered to Dominion Energy to satisfy the investors’ obligation under the stock purchase contract, unless an investor elects to settle its stock purchase obligation in cash. Under the terms of the stock purchase contracts included in the 2019 Equity Units, assuming no anti-dilution or other adjustments, the maximum number of shares of common stock Dominion Energy will issue in June 2022 is 21.8 million for consideration of $1.6 billion.

The stock purchase contract liability associated with Dominion Energy’s 2019 Equity Units was ~~$108~~$22 million and ~~$129~~$44 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. Stock purchase contract payments of ~~$21~~$22 million and ~~$20~~$21 million were made during the three months ended March 31, 2022 and 2021, ~~and 2020,~~ respectively. ~~In calculating diluted EPS, Dominion Energy applies the treasury stock method to the stock purchase contracts and the if-converted method to the Series A Preferred Stock.~~

Issuance of Common Stock

Dominion Energy recorded, net of fees and commissions, ~~$48~~$45 million from the issuance of 1million shares of common stock for the three months ended March 31, 2022 and ~~$78~~$48 million from the issuance of less than ~~1 million and~~ 1 million shares of common stock for the three months ended March 31, 2021, ~~and 2020, respectively,~~ through various programs including Dominion Energy Direct® and employee savings plans as described in Note 20 to the Consolidated Financial Statements to the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

In May 2022, Dominion Energy issued 0.9 million shares of its common stock, valued at $72 million, to partially satisfy DESC’s remaining obligation under a settlement agreement with the SCDOR discussed in Note 17.

At-the-Market Program

In August 2020, Dominion Energy entered into sales agency agreements to effect sales under an at-the-market program as discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December 31,

~~2020. As of March 31, 2021,~~ 2021. Dominion Energy ~~has~~did not ~~issued~~issue any shares or ~~entered~~enter into any forward sale agreements under this ~~program.~~

program during the three months ended March 31, 2022.

Repurchase of Common Stock

In November 2020, the Board of Directors authorized the repurchase of up to $1.0 billion of Dominion Energy’s common stock in addition to the $3.0 billion repurchase program authorized in July 2020 and completed in December 2020 as discussed in Note 20 to the Consolidated Financial Statements in the Companies’ Annual Report Form 10-K for the year ended December 31, 2020.

Dominion Energy did 0t repurchase any shares of common stock during the ~~first quarter of 2021.~~three months ended March 31, 2022.

Note 17. Commitments and Contingencies

As a result of issues generated in the ordinary course of business, the Companies are involved in legal proceedings before various courts and are periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions, or involve significant factual issues that need to be resolved, such that it is not possible for the Companies to estimate a range of possible loss. For such matters that the Companies

cannot estimate, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that the Companies are able to estimate a range of possible loss. For legal proceedings and governmental examinations that the Companies are able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. The Companies maintain various insurance programs, including general liability insurance coverage which provides coverage for personal injury or wrongful death cases. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Companies’ maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the Companies’ financial position, liquidity or results of operations.

Environmental Matters

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

Air

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

Ozone Standards

The EPA published final non-attainment designations for the October 2015 ozone standard in June ~~2018. States have until August 2021~~2018 with states required to develop plans to address the new standard. ~~Until~~Certain states in which the ~~states~~Companies operate have developed plans, and had such plans approved or partially approved by the EPA, which are not expected to have a material impact on the Companies’ results of operations or cash flows. However, until implementation plans for the standard are developed and approved for all states in which the Companies operate, the Companies are unable to predict whether or to what extent the new rules will ultimately require additional controls. The expenditures required to implement additional controls could have a material impact on the Companies’ results of operations and cash flows.

ACE Rule

In July 2019, the EPA published the final rule informally referred to as the ACE Rule, as a replacement for the Clean Power Plan. The ACE Rule regulated GHG emissions from existing coal-fired power plants pursuant to Section 111(d) of the CAA and required states to develop plans by July 2022 establishing unit-specific performance standards for existing coal-fired power plants. In January 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the ACE Rule and remanded it to the EPA. This decision would take effect upon issuance of the court’s mandate. In March 2021, the court issued a partial mandate vacating and remanding all parts of the ACE Rule except for the portion of the ACE Rule that repealed the Clean Power Plan. In October 2021, the U.S. Supreme Court agreed to hear a challenge of the U.S. Court of Appeals for the D.C. Circuit’s decision on the ACE Rule. While the EPA has stated its intention to replace the ACE Rule, it is unknown at this time if or how the EPA will issue a replacement for the ACE Rule and how that replacement will affect the Companies’ operations, financial condition and/or cash flows.

Carbon Regulations

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

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

steam conditions for large units and subcritical steam conditions for small units) in combination with best operating practices. In January 2021, the EPA published a final rule affirming that fossil fuel-fired electric generating units meet the requirement that a source category “significantly contribute” to endangering air pollution for the purposes of regulating GHG emissions from new, modified and reconstructed stationary sources. The January 2021 rule also established a threshold for the “significant contribution” threshold that would have meant that no other source category, such as oil and gas facilities, petroleum refineries, and boilers, would meet that requirement at this time. In April 2021, the U.S. Court of Appeals for the D.C. Circuit granted an unopposed motion by the EPA to vacate and remand the January 2021 rule. The proposed revision to the performance standards for coal-fired steam generating units remains pending. Until the EPA ultimately takes final action on this rulemaking, the Companies cannot predict the impact to their results of operations, financial condition and/or cash flows.

Water

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

Regulation 316(b)

In October 2014, the final regulations under Section 316(b) of the CWA that govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold became effective. The rule establishes a national standard for impingement based on seven compliance options, but forgoes the creation of a single technology standard for entrainment. Instead, the EPA has delegated entrainment technology decisions to state regulators. State regulators are to make case-by-case entrainment technology determinations after an examination of 5 mandatory facility-specific factors, including a social cost-benefit test, and 6 optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two MGD, with a heightened entrainment analysis for those facilities over 125 MGD. Dominion Energy and Virginia Power currently have 15 and 9 facilities, respectively, that are subject to the final regulations. Dominion Energy is also working with the EPA and state regulatory agencies to assess the applicability of Section 316(b) to ~~eight~~8 hydroelectric facilities, including ~~three~~3 Virginia Power facilities. The Companies anticipate that they may have to install impingement control technologies at certain of these stations that have once-through cooling systems. The Companies are currently evaluating the need or potential for entrainment controls under the final rule as these decisions will be made on a case-by-case basis after a thorough review of detailed biological, ~~technology,~~technological, and 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 the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Effluent Limitations Guidelines

In September 2015, the EPA released a final rule to revise the Effluent Limitations Guidelines for the Steam Electric Power Generating Category. The final rule established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required to convert from wet to dry or closed cycle coal ash management, improve existing wastewater treatment systems and/or install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted 2 separate petitions for reconsideration of the Effluent Limitations Guidelines final rule and stayed future compliance dates in the rule. Also in April 2017, the U.S. Court of Appeals for the Fifth Circuit granted the EPA’s request for a stay of the pending consolidated litigation challenging the rule while the EPA addresses the petitions for reconsideration. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the Effluent Limitations Guidelines final rule from November 2018 to November 2020; however, the latest date for compliance for these regulations 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 the Companies’ results of operations, financial condition and/or cash flows, the existing regulatory frameworks in South Carolina and Virginia provide rate recovery mechanisms that could substantially mitigate any such impacts for the regulated electric utilities.

Waste Management and Remediation

The operations of the Companies are subject to a variety of state and federal laws and regulations governing the management and disposal of solid and hazardous waste, and release of hazardous substances associated with current and/or historical operations. The CERCLA, as amended, and similar state laws, may impose joint, several and strict liability for cleanup on potentially responsible parties who owned, operated or arranged for disposal at facilities affected by a release of hazardous substances. In addition, many

states have created programs to incentivize voluntary remediation of sites where historical releases of hazardous substances are identified and property owners or responsible parties decide to initiate cleanups.

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

Dominion Energy has determined that it is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. At 1213 sites associated with Dominion Energy ~~including certain sites acquired in the SCANA Combination,~~ remediation work has been substantially completed under federal or state oversight. Where required, the sites are following state-approved groundwater monitoring programs. Dominion Energy has proposed ~~or expects to propose~~ remediation plans associated with 32 sites, including 1 at Virginia Power, and expects to ~~conduct~~commence remediation activities ~~primarily by the end~~in 2022 depending on receipt of ~~2021.~~final permits and approvals. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy had ~~$40~~$52 million and ~~$42~~$45 million, respectively, and Virginia Power had $25 million ~~and $26 million, respectively,~~at both periods, of reserves recorded. In addition, for 1 site associated with Dominion Energy, an updated work plan submitted to SCDHEC in September 2018, would increase costs by approximately $11 million if approved by federal and state agencies. In September 2020, this plan was submitted to the Army Corps of Engineers. Dominion Energy is associated with 12 additional sites, including 2 associated with Virginia Power, which are not under investigation by any state or federal environmental agency nor the subject of any current or proposed plans to perform remediation activities. Due to the uncertainty surrounding such sites, the Companies are unable to make an estimate of the potential financial statement impacts.

Other Legal Matters

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

SCANA Legal Proceedings

The following describes certain legal proceedings involving Dominion Energy, SCANA or DESC relating primarily to events occurring before closing of the SCANA Combination. In addition, certain legal matters which have been resolved are discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021. No reference to, or disclosure of, any proceeding, item or matter described below shall be construed as an admission or indication that such proceeding, item or matter is material. For certain of these matters, and unless otherwise noted therein, Dominion Energy is unable to estimate a reasonable range of possible loss and the related financial statement impacts, but for any such matter there could be a material impact to its results of operations, financial condition and/or cash flows. For the matters for which Dominion Energy is able to reasonably estimate a probable loss, Dominion Energy’s Consolidated Balance Sheets at March 31, ~~2021~~2022 and December 31, ~~2020~~2021 include reserves of ~~$268~~ $257million and ~~$208~~$274 million, respectively, included ~~within~~in other current liabilities, and insurance receivables of $118 million at both dates, ~~of $8 million,~~ included within other receivables. These balances at March 31, 2022 and December 31, 2021 include $70 million and $85 million, respectively, of offsetting reserves and insurance receivables related to personal injury or wrongful death cases which are currently pending. During the three months ended March 31, 2022, 0 charges were included in Dominion Energy’s Consolidated Statements of Income. During the three months ended March 31, 2021, Dominion Energy’s Consolidated Statements of Income include charges of $60 million ($45 million after-tax) included within impairment of assets and other charges. ~~During the three months ended March 31, 2020, Dominion Energy’s Consolidated Statements of Income include charges of $25 million ($25 million after-tax) included within other income (expense).~~

~~Ratepayer Class Actions~~

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

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

In September 2017, a purported class action was filed by Santee Cooper ratepayers against Santee Cooper, DESC, Palmetto Electric Cooperative, Inc. and Central Electric Power Cooperative, Inc. in the State Court of Common Pleas in Hampton County, South Carolina (the Santee Cooper Ratepayer Case). The allegations were substantially similar to those in the DESC Ratepayer Case. 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 provided that Dominion Energy and Santee Cooper establish a fund for the benefit of class members in the amount of $520 million, of which Dominion Energy’s portion was $320 million of shares of Dominion Energy common stock. In July 2020, the court issued a final approval of the settlement agreement. In September 2020, Dominion Energy issued $322 million of shares of Dominion Energy common stock to satisfy its obligation under the settlement agreement, including interest charges.

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

~~RICO Class Action~~

In January 2018, a purported class action was filed, and subsequently amended, against SCANA, DESC and certain former executive officers in the U.S. District Court for the District of South Carolina (the Glibowski Case). The plaintiff alleged, among other things, that SCANA, DESC and the individual defendants participated in an unlawful racketeering enterprise in violation of RICO and conspired to violate RICO by fraudulently inflating utility bills to generate unlawful proceeds. 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 was dismissed as part of the Santee Cooper Ratepayer Case settlement described above.

SCANA Shareholder Litigation

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

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

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

seeking appellate review of the denial of SCANA’s motion to dismiss. This ~~case is pending.~~petition was denied in June 2021. Also in June 2021, the parties reached an agreement in principle in the amount of $33 million to resolve this matter, subject to court approval. This settlement was reached in contemplation of and will be utilized to satisfy a portion of the Federal Court Merger Case and the State Court Merger Case discussed below. In November 2021, the parties executed a settlement agreement and filed with the State Court of Common Pleas in Richland County, South Carolina for approval.

In January 2018, a purported class action was filed against SCANA, Dominion Energy and certain former executive officers and directors of SCANA in the State Court of Common Pleas in Lexington County, South Carolina (the City of Warren Lawsuit). The plaintiff alleges, among other things, that defendants violated their fiduciary duties to shareholders by executing a merger agreement that would unfairly deprive plaintiffs of the true value of their SCANA stock, and that Dominion Energy aided and abetted these actions. Among other remedies, the plaintiff seeks to enjoin and/or rescind the merger.

In February 2018, a purported class action was filed against Dominion Energy and certain former directors of SCANA and DESC in the State Court of Common Pleas in Richland County, South Carolina (the Metzler Lawsuit). The allegations made and the relief sought by the plaintiffs are substantially similar to that described for the City of Warren Lawsuit.

In September 2019, the U.S. District Court for the District of South Carolina granted the plaintiffs’ motion to consolidate the City of Warren Lawsuit and the Metzler ~~Lawsuit.~~Lawsuit (the Federal Court Merger Case). In October 2019, the plaintiffs filed an amended complaint against certain former directors and executive officers of SCANA and DESC, which stated substantially similar allegations to those in the City of Warren Lawsuit and the Metzler Lawsuit as well as an inseparable fraud claim. In November 2019, the defendants filed a motion to dismiss. In April 2020, the U.S. District Court for the District of South Carolina denied the motion to dismiss. In May 2020, SCANA filed a motion to intervene, which was denied in August 2020. In September 2020, SCANA filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. In June 2021, the parties reached an agreement in principle in the amount of $63 million to resolve this matter as well as the State Court Merger Case described below, subject to court approval. This ~~case is pending.~~settlement was reached in contemplation of and will be partially satisfied by the State Court Derivative Case settlement described above. In November 2021, the parties executed a settlement agreement, as described above relating to this matter as well as the State Court Derivative Case and the State Court Merger Case, and filed with the State Court of Common Pleas in Richland County, South Carolina for approval.

In May 2019, a case was filed against certain former executive officers and directors of SCANA in the State Court of Common Pleas in Richland County, South ~~Carolina.~~Carolina (the State Court Merger Case). The plaintiff alleges, among other things, that the defendants breached their fiduciary duties to shareholders by their gross mismanagement of the NND Project, were unjustly enriched by the bonuses they were paid in connection with the project and breached their fiduciary duties to secure and obtain the best price for the sale of SCANA. Also in May 2019, the case was removed to the U.S. District Court of South Carolina by the non-South Carolina defendants. In June 2019, the plaintiffs filed a motion to remand the case to state court. In January 2020, the case was remanded to state court. In February 2020, the defendants filed a motion to dismiss. ~~This case is pending.~~In June 2021, the parties reached an agreement in principle as described above relating to this matter as well as the Federal Court Merger Case and the State Court Derivative Case. In November 2021, the parties executed a settlement agreement, as described above relating to this matter as well as the State Court Derivative Case and the Federal Court Merger Case, and filed with the State Court of Common Pleas in Richland County, South Carolina for approval.

Employment Class Actions and Indemnification

In August 2017, a case was filed in the U.S. District Court for the District of South Carolina on behalf of persons who were formerly employed at the NND Project. In July 2018, the court certified this case as a class action. In February 2019, certain of these plaintiffs filed an additional case, which case has been dismissed and the plaintiffs have joined the case filed August 2017. The plaintiffs allege, among other things, that SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. violated the Worker Adjustment and Retraining Notification Act in connection with the decision to stop construction at the NND Project. The plaintiffs allege that the defendants failed to provide adequate advance written notice of their terminations of employment and are seeking damages, which could be as much as $100 million for 100% of the NND Project. In January 2021, the U.S. District Court for the District of South Carolina granted summary judgment in favor of SCANA, DESC, Fluor Corporation and Fluor Enterprises, Inc. In February 2021, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. ~~This case is pending.~~In November 2021, the U.S Court of Appeals for the Fourth Circuit affirmed the lower court ruling. In March 2022, the deadline to file an appeal to the Supreme Court of the United States expired.

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. ~~This~~As a result of the ruling in favor of the defendants in the aforementioned case, ~~is pending.~~any potential loss by DESC would be limited to an inconsequential amount.

~~FILOT Litigation and Related Matters~~

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

Governmental Proceedings and Investigations

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

In ~~September and October 2017, SCANA was served~~June 2021, the parties executed a settlement agreement which allows DESC to fund the settlement amount through a combination of cash, shares of Dominion Energy common stock or real estate with ~~subpoenas~~an initial payment of at least $43 million in shares of Dominion Energy common stock. In August 2021, Dominion Energy issued ~~by the U.S. Attorney’s Office~~0.6 million shares of its common stock to satisfy DESC’s obligation for the ~~District of South Carolina and~~initial payment under the ~~Staff of the SEC’s Division of Enforcement seeking documents related to the NND Project.~~settlement agreement. In ~~February 2020, the SEC filed a complaint against SCANA, two~~May 2022, Dominion Energy issued an additional 0.9 million shares 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 Enforcementcommon stock to ~~settle, without admitting or denying the allegations in the complaint.~~ ~~In December 2020, the U.S. District Court for the District of South Carolina issued an order approving~~partially satisfy DESC’s remaining obligation under the settlement ~~which required SCANA to pay a civil monetary penalty totaling~~ $25 million, and SCANA and DESC to pay disgorgement and prejudgment interest totaling $112.5 million, which disgorgement and prejudgment interest amount were deemed satisfied by the settlements in the SCANA Securities Class Action and the DESC Ratepayer Case. SCANA paid the civil penalty in December 2020. The SEC civil action against two former executive officers of SCANA remains pending and is currently subject to a stay granted by the court in June 2020 at the request of the U.S. Attorney’s Office for the District of South Carolina.

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. Another former executive officer of SCANA entered a plea agreement with the U.S. Attorney's Office and the South Carolina Attorney General's Office in November 2020 and entered guilty pleas in the U.S. District Court for the District of South Carolina and in South Carolina state court in February 2021. As a result of the pleas, Dominion Energy has terminated indemnity for these former executive officers related to these two cases.

~~Abandoned NND Project~~

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

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

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

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

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

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

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

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

Nuclear Operations

Nuclear Insurance

~~In March 2021,~~There have been no significant changes regarding the ~~total liability protection per~~Companies’ nuclear ~~incident available~~insurance as described in Note 23 to ~~all participants~~the Consolidated Financial Statements in the ~~Secondary Financial Protection Program decreased from $13.8 billion to $13.7 billion. This decrease does not impact Dominion Energy’s responsibility per active unit under~~Companies’ Annual Report on Form 10-K for the ~~Price-Anderson Amendments Act of 1988.~~year ended December 31, 2021.

Spent Nuclear Fuel

As discussed in Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, the Companies entered into contracts with the DOE for the disposal of spent nuclear fuel under provisions of the Nuclear Waste Policy Act of 1982.

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

Guarantees, Surety Bonds and Letters of Credit

~~Upon the closing of the GT&S Transaction,~~At March 31, 2022, Dominion Energy ~~retained its~~had issued 4 guarantees related to Cove Point, an equity method investment, in support of terminal services, transportation and construction. NaN of the Cove Point guarantees have a cumulative

maximum exposure of $1.9 billion while the other 2 guarantees have 0 maximum limit. No amounts related to these guarantees have been recorded.

In addition, at March 31, ~~2021,~~2022, Dominion Energy had issued an additional ~~$25~~$20 million of guarantees, primarily to support third parties. No amounts related to these guarantees have been recorded.

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

At March 31, ~~2021,~~2022, Dominion Energy had issued the following subsidiary guarantees:

	Maximum Exposure		Maximum Exposure
(millions)
Commodity transactions⁽¹⁾	$	1,851
Nuclear obligations⁽²⁾		202
Solar⁽³⁾		463
Other⁽⁴⁾		982
Commodity transactions⁽¹⁾			$	2,186
Nuclear obligations⁽²⁾				243
Solar⁽³⁾				311
Other⁽⁴⁾				1,265
Total⁽⁵⁾⁽⁶⁾	$	3,498	$	4,005

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

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

(3)

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

(4)

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

(5)

Excludes Dominion ~~Energy's guarantees for the new corporate office properties and~~Energy’s guarantee of an offshore wind installation vessel discussed in Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020 and in Note 14 in this report.~~2021.

(6) In July 2016, Dominion Energy signed an agreement with a lessor to construct and lease a new corporate office property in Richmond, Virginia. The lessor provided equity and obtained financing commitments from debt investors, totaling $365 million, which funded total project costs. The project became substantially complete in August 2019 at which point the facility was available for Dominion Energy’s use and the five-year lease term commenced. At the end of the initial lease term, Dominion Energy can (i) extend the term of the lease for an additional five years, subject to the approval of the participants, at current market terms, (ii) purchase the property for an amount equal to the project costs or, (iii) subject to certain terms and conditions, sell the property on behalf of the lessor to a third party using commercially reasonable efforts to obtain the highest cash purchase price for the property. If the project is sold and the proceeds from the sale are insufficient to repay the investors for the project costs, Dominion Energy may be required to make a payment to the lessor, up to 87% of project costs, for the difference between the project costs and sale proceeds. At March 31, 2022, 0 amounts have been recorded related to this guarantee.

Additionally, at March 31, ~~2021,~~2022, Dominion Energy had purchased ~~$167~~$227 million of surety bonds, including ~~$95~~$156 million at Virginia Power, and authorized the issuance of letters of credit by financial institutions of ~~$99~~$112 million to facilitate commercial transactions by its subsidiaries with third parties. Under the terms of surety bonds, the Companies are obligated to indemnify the respective surety bond company for any amounts paid.

Note 18. Credit Risk

The Companies’ accounting policies for credit risk are discussed in Note 24 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

At March 31, ~~2021,~~2022, Dominion Energy’s credit exposure totaled ~~$124~~$96 million, primarily related to price risk management activities. Of this amount, investment grade counterparties, including those internally rated, represented ~~87%~~85%. NaN single counterparty, whether investment grade or non-investment grade, exceeded ~~$38~~$27 million of exposure. At March 31, ~~2021,~~2022, Virginia Power’s exposure related to wholesale customers totaled $7$14 million. Of this amount, investment grade counterparties, including those internally rated, represented ~~52%~~57%. NaN single counterparty, whether investment grade or non-investment grade, exceeded $2$3 million of exposure.

Credit-Related Contingent Provisions

Certain of Dominion Energy’s derivative instruments contain credit-related contingent provisions. These provisions require Dominion Energy to provide collateral upon the occurrence of specific events, primarily a credit rating downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Dominion Energy would have been required to post ~~$11~~$128 million and ~~$14~~$31 million, respectively, of additional collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any offsetting asset positions and any amounts already posted for derivatives, non-derivative contracts and derivatives elected under the normal purchases and normal sales exception, per contractual terms. Dominion Energy had posted $1$125 million and $66 million of collateral at March 31, 2022 and December 31, ~~2020~~2021, respectively, 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 ~~$11~~$253 million and ~~$15~~$97 million at March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, which does not include the impact of any offsetting asset positions.

Certain of Virginia Power’s derivative instruments contain credit-related contingent provisions. These provisions require Virginia Power to provide collateral upon the occurrence of specific events, primarily a credit rate downgrade. If the credit-related contingent features underlying these instruments that are in a liability position and not fully collateralized with cash were fully triggered ~~Virginia Power would 0t have been required to post any additional collateral to its counterparties at~~as of March 31, 2022 and December 31, 2021, ~~and~~Virginia Power would have been required to post an$39 million and $22 million, respectively, of additional $2collateral to its counterparties. The collateral that would be required to be posted includes the impacts of any offsetting asset position and any amounts already posted for derivatives and non-derivative contracts, per contractual terms. Virginia Power had posted $118 million and $54 million of collateral ~~to its counterparties~~ at March 31, 2022 and December 31, ~~2020.~~2021, respectively, 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 $157 million and $76 million at March 31, 2022 and December 31, 2021, respectively, which does not include the impact of any offsetting asset positions.

See Note 9 for ~~further~~additional information about derivative instruments.

Note 19. Related-Party Transactions

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

Virginia Power

Transactions with Affiliates

Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of forward commodity purchases, to manage commodity price risks associated with purchases of natural gas. At March 31, 2022, Virginia Power’s derivative assets and liabilities with affiliates were $64 million and $1 million, respectively. At December 31, 2021, Virginia Power’s derivative assets and liabilities with affiliates were $3$29 million and ~~$5 million, respectively. At December 31, 2020, Virginia Power’s derivative assets and liabilities with affiliates were $3 million and $22~~$6 million, respectively. See Note 9 for ~~more~~additional information.

Virginia Power participates in certain Dominion Energy benefit plans described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, amounts due to Dominion Energy associated with the Dominion Energy Pension Plan and included in other deferred credits and other liabilities in the Consolidated Balance Sheets were ~~$457~~$540 million and ~~$436~~$522 million, respectively. At March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, Virginia Power's amounts due from Dominion Energy associated with the Dominion Energy Retiree Health and Welfare Plan and included in other deferred charges and other assets in the Consolidated Balance Sheets were ~~$373~~$453 million and ~~$354~~$431 million, respectively. While Virginia Power has not been notified by Dominion Energy of any required contributions to be made in 2022, it anticipates that it may have to contribute approximately $175 million as a result of Dominion Energy’s contribution made to its qualified defined benefit pension plans in December 2021.

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

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

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

	Three Months Ended March 31,				Three Months Ended March 31,
	2021		2020		2022		2021
(millions)
Commodity purchases from affiliates	$	181	$	211	$	293	$	181
Services provided by affiliates⁽¹⁾		125		121
Services provided by affiliates⁽¹⁾						130		125
Services provided to affiliates		5		5		4		5

(1)	Includes capitalized expenditures of ~~$38~~$39 million and ~~$34~~$38 million for the three months ended March 31, 2022 and 2021, ~~and 2020,~~ respectively.

Virginia Power has borrowed funds from Dominion Energy under short-term borrowing arrangements. There were ~~$177~~$235 million and ~~$380~~$699 million in short-term demand note borrowings from Dominion Energy as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. Virginia Power had 0 outstanding borrowings, net of repayments, under the Dominion Energy money pool for its nonregulated subsidiaries as of March 31, ~~2021~~2022 and December 31, ~~2020.~~2021. Interest charges related to Virginia Power’s borrowings from Dominion Energy were immaterial for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

There were 0 issuances of Virginia Power’s common stock to Dominion Energy for the three months ended March 31, ~~2021~~2022 and ~~2020.~~2021.

Note 20. Employee Benefit Plans

~~Dominion Energy~~

Net Periodic Benefit (Credit) Cost

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

	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
	2021			2020			2021			2020			2022			2021			2022			2021
(millions)
Three Months Ended March 31,
Service cost	$	42		$	43		$	6		$	7		$	36		$	42		$	6		$	6
Interest cost		79			91			12			15			83			79			11			12
Expected return on plan assets		(208	)		(193	)		(44	)		(39	)		(223	)		(208	)		(48	)		(44	)
Amortization of prior service (credit) cost		0			0			(10	)		(12	)		—			—			(10	)		(10	)
Amortization of net actuarial loss		48			49			1			1			40			48			—			1
Settlements		(2	)		0			0			0			—			(2	)		—			—
Net periodic benefit (credit) cost	$	(41	)	$	(10	)	$	(35	)	$	(28	)	$	(64	)	$	(41	)	$	(41	)	$	(35	)

Employer Contributions

During the three months ended March 31, ~~2021,~~2022, Dominion Energy made 0 contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy ~~does~~is 0t ~~expect~~required to make any contributions to its qualified defined benefit pension plans or to VEBAs associated with its other postretirement plans in ~~2021.~~2022. Dominion Energy considers voluntary contributions from time to time, either in the form of cash or equity securities.

Note 21. Operating Segments

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

Primary Operating Segment	Description of Operations	Dominion Energy	Virginia Power
Dominion Energy Virginia	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Regulated electric generation fleet⁽¹⁾⁽¹⁾	X	X
Gas Distribution	Regulated gas distribution and storage⁽²⁾⁽²⁾	X
Dominion Energy South Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted Assets	Nonregulated electric generation fleet⁽³⁾	X
	Noncontrolling interest in Cove Point	X

(1)	Includes Virginia Power’s ~~nonjurisdictional~~non-jurisdictional generation operations.

(2)	Includes renewable natural gas operations as well as Wexpro’s gas development and production operations.

(3)	Includes solar generation facility development operations.

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

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as nonregulated retail energy marketing operations (prior to December 2021), including Dominion Energy’s noncontrolling ~~interest~~interests in ~~Wrangler.~~Wrangler (through March 2022) and Dominion Privatization. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources as well as the net impact of the gas transmission and storage operations ~~held~~presented in discontinued operations, which are discussed in Note 3.

In the three months ended March 31, 2022, Dominion Energy reported after-tax net expenses of $311 million in the Corporate and Other segment, including $289 million of after-tax net expenses for specific items with $269 million of after-tax net expenses

attributable to its operating segments. In the three months ended March 31, 2021, Dominion Energy reported after-tax net income of $71 million in the Corporate and Other segment, including $115 million of after-tax net income for specific items with $87 million of after-tax net expenses attributable to its operating segments. ~~In the three months ended March 31, 2020, Dominion Energy reported after-tax net expenses of $1.1 billion in the Corporate and Other segment, including $1.1 billion of after-tax~~

The net expenses for specific items ~~with $1.0 billion of after-tax net expenses~~ attributable to ~~its~~Dominion Energy’s operating ~~segments.~~segments in 2022 primarily related to the impact of the following items:

•	A $125 million ($102 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

•

Contracted Assets ($90 million after-tax); and

•

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

•	A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia;

•	A $66 million ($47 million after-tax) loss related to economic hedging activities, attributable to Contracted Assets; and

•	A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.

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

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

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

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

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

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

•

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

•

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

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

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

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

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

•

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

•

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

~~In September 2020, Dominion Energy updated its segments. The historical information presented herein has been recast to reflect the current segment presentation.~~ The following table presents segment information pertaining to Dominion Energy’s operations:

Dominion
Energy
Virginia

Gas
Distribution

Dominion
Energy
South
Carolina

Contracted
Assets

Corporate
and Other

Adjustments
& Eliminations

Consolidated
Total

(millions)

Three Months Ended March 31, 2021

Total revenue from external customers

$
1,987

$
975

$
752

$
268

$
(130
)

$
17

$
3,869

Intersegment revenue

(2
)

1

2

21

230

(251
)

1

Total operating revenue

1,985

976

754

289

100

(234
)

3,870

Net income from discontinued operations

0

0

0

0

28

0

28

Net income attributable to Dominion
Energy

434

251

102

150

71

0

1,008

Three Months Ended March 31, 2020

Total revenue from external customers

$
1,938

$
886

$
713

$
288

$
109

$
15

$
3,949

Intersegment revenue

(3
)

4

1

8

242

(263
)

(11
)
Total operating revenue

1,935

890

714

296

351

(248
)

3,938

Net income from discontinued operations

0

0

0

51

178

0

229

Net income (loss) attributable to Dominion Energy

429

224

94

111

(1,128
)

0

(270
)

	Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina		Contracted Assets		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2022
Total revenue from external customers	$	2,172		$	1,229	$	798	$	245	$	(165	)	$	0		$	4,279
Intersegment revenue		(3	)		1		1		4		237			(240	)		0
Total operating revenue		2,169			1,230		799		249		72			(240	)		4,279
Net income from discontinued operations		0			0		0		0		19			0			19
Net income (loss) attributable to Dominion Energy		518			294		109		101		(311	)		0			711
Three Months Ended March 31, 2021
Total revenue from external customers	$	1,987		$	975	$	752	$	268	$	(130	)	$	17		$	3,869
Intersegment revenue		(2	)		1		2		21		230			(251	)		1
Total operating revenue		1,985			976		754		289		100			(234	)		3,870
Net income from discontinued operations		0			0		0		0		28			0			28
Net income attributable to Dominion Energy		434			251		102		150		71			0			1,008

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

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In the three months ended March 31, 2022, Virginia Power reported after-tax net expenses of $159 million in the Corporate and Other segment, including $130 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the three months ended March 31, 2021, Virginia Power reported after-tax net expenses of $58 million in the Corporate and Other segment, including $117 million of after-tax net expenses for specific items all of which was attributable to its operating segment. ~~In the three months ended March 31, 2020, Virginia Power reported after-tax net expenses of $707 million in the Corporate and Other segment, including $634 million of after-tax~~

The net expenses for specific items ~~all of which was~~ attributable to ~~its~~Virginia Power’s operating ~~segment.~~segment in 2022 primarily related to the impact of the following items:

•	A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia; and

•	A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2021 primarily related to the impact of the following items:

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

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

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

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

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

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

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

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

	Dominion Energy Virginia		Corporate and Other			Consolidated Total			Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2022
Operating revenue									$	2,165	$	2		$	2,167
Net income (loss)										516		(159	)		357
Three Months Ended March 31, 2021
Operating revenue	$	1,981	$	(151	)	$	1,830		$	1,981	$	(151	)	$	1,830
Net income (loss)		432		(58	)		374			432		(58	)		374
Three Months Ended March 31, 2020
Operating revenue	$	1,930	$	0		$	1,930
Net income (loss)		427		(707	)		(280	)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

Contents of MD&A

MD&A consists of the following information:

•	Forward-Looking Statements

•	Accounting Matters – Dominion Energy

•	Dominion Energy

•

Results of Operations

•

Outlook

•

Segment Results of Operations

•	Virginia Power

•

Results of Operations

•	Liquidity and Capital Resources – Dominion Energy

•	Future Issues and Other Matters – Dominion Energy

Forward-Looking Statements

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

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

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

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

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

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

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

•	Changes to regulated electric rates collected by the Companies and regulated gas distribution, transportation and storage rates collected by Dominion Energy;

•	Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;

•	Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;

•	Risks associated with entities in which Dominion Energy shares ownership with third parties, including risks that result from lack of sole decision making authority, disputes that may arise between Dominion Energy and third party participants and difficulties in exiting these arrangements;

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

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

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

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

•	Risks and uncertainties that may impact the Companies’ ability to develop and construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;

•	Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;

•	Cost of environmental strategy and compliance, including those costs related to climate change;

•	Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;

•	Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;

•	Unplanned outages at facilities in which the Companies have an ownership interest;

•	The impact of operational hazards, including adverse developments with respect to pipeline and plant safety or integrity, equipment loss, malfunction or failure, operator error and other catastrophic events;

•	Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;

•	Changes in operating, maintenance and construction costs;

•	Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as threats to cybersecurity;

•

Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s ~~merchant~~nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;

•	Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;

•	Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;

•

Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, changes in supplies of natural gas delivered to Dominion Energy’s pipeline system, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;

•	Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;

•	Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews;

•	The expected timing and likelihood of the completion of the ~~Q-Pipe Transaction,~~proposed sales of Kewaunee and Hope, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such regulatory approvals;

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

•	Counterparty credit and performance risk;

•	Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;

•	Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;

•	Fluctuations in interest rates;

•	Fluctuations in currency exchange rates of the Euro or Danish Krone associated with the CVOW Commercial Project;

•	Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;

•	Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;

•	Political and economic conditions, including inflation and deflation;

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

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

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

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

Accounting Matters

Critical Accounting Policies and Estimates

As of March 31, ~~2021,~~2022, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of estimates in long-lived asset and equity method investment impairment testing, ~~and~~ employee benefit ~~plans.~~plans and held for sale classification.

Dominion Energy

Results of Operations

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

	2021		2020			$ Change		2022		2021		$ Change
(millions, except EPS)
First Quarter
Net income (loss) attributable to Dominion Energy	$	1,008	$	(270	)	$	1,278
Net income attributable to Dominion Energy								$	711	$	1,008	$	(297	)
Diluted EPS		1.23		(0.34	)		1.57		0.83		1.23		(0.40	)

Overview

First Quarter ~~2021~~2022 vs. ~~2020~~2021

Net income attributable to Dominion Energy ~~increased $1.3 billion,~~decreased 29%, primarily due to ~~the absence of charges related to the planned early retirements of certain electric generation facilities in Virginia, an increase~~a decrease in net investment earnings on nuclear decommissioning trust funds and ~~an increase in net unrealized earnings associated with freestanding interest rate derivatives.~~a charge to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale.

7170

Analysis of Consolidated Operations

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

	First Quarter								First Quarter
	2021		2020			$ Change			2022			2021		$ Change
(millions)
Operating revenue	$	3,870	$	3,938		$	(68	)	$	4,279		$	3,870	$	409
Electric fuel and other energy-related purchases		550		657			(107	)		678			550		128
Purchased electric capacity		11		2			9			13			11		2
Purchased gas		484		434			50			645			484		161
Other operations and maintenance		987		891			96			1,026			987		39
Depreciation, depletion and amortization		608		578			30			698			608		90
Other taxes		257		240			17			253			257		(4	)
Impairment of assets and other charges		95		768			(673	)
Other income (expense)		367		(454	)		821
Impairment of assets and other charges (benefits)										(10	)		95		(105	)
Earnings from equity method investees										80			80		—
Other income										46			287		(241	)
Interest and related charges		53		432			(379	)		174			53		121
Income tax expense (benefit)		212		(50	)		262
Income tax expense										236			212		24
Net income from discontinued operations including noncontrolling interests		28		229			(201	)		19			28		(9	)
Noncontrolling interests		—		31			(31	)

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

First Quarter ~~2021~~2022 vs. ~~2020~~2021

Operating revenue ~~decreased 2%~~increased 11%, primarily reflecting:

•	A $312 million increase in the fuel cost component included in utility rates as a result of an increase in commodity costs associated with sales to gas utility customers ($193 million) and electric utility retail customers ($119 million);

•	The absence of a $151 million decrease from an unbilled revenue reduction at Virginia Power;

•	A ~~$51 million decrease due to unfavorable pricing at Millstone;~~

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

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

~~These decreases were partially offset by:~~

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

•	~~A $71~~$69 million increase from Virginia Power riders;

•	A ~~$42~~$37 million ~~net~~increase following the approved base rate case for PSNC;

•

A $21 million increase in the fuel cost component included in utility rates as a result of a net increase in commodity costs associated with sales to gas utility customers ($88 million) partially offset by a net decrease in commodity costs associated with sales to electric utility retail customers ~~($46 million);~~associated with economic and other usage factors; and

•	A ~~$35~~$20 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days.

These increases were partially offset by:

•	A $112 million decrease associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($249 million);

•	A $51 million decrease as a result of the contribution of certain nonregulated gas retail energy contracts to Wrangler;

•	A $40 million decrease associated with settlements of economic hedges of certain Virginia Power regulated electric sales;

•	A $29 million decrease from ~~gas utility capital cost riders.~~an unplanned outage at Millstone; and

•	A $29 million decrease from the sale of non-wholly-owned nonregulated solar facilities.

Electric fuel and other energy-related purchases ~~decreased 16%~~increased 23%, primarily due to ~~lower~~higher commodity costs for electric utilities, ~~($49 million),~~ which are offset in operating revenue and do not impact net ~~income, and a decrease in PJM off-system sales ($17 million).~~income.

Purchased gas increased ~~12%~~33%, primarily due to an increase in commodity costs for gas utilities ($88193 million), which are offset in operating revenue and do not impact net income, partially offset by a decrease as a result of the contribution of certain nonregulated natural gas retail energy contracts to Wrangler ($2740 million).

Other operations and maintenance increased ~~11%~~4%, primarily ~~reflecting~~reflecting:

•	A $41 million increase in storm damage and restoration costs in Virginia Power’s service territory;

•	A $32 million increase in outside services; and

•	A $15 million increase in outage costs at Virginia Power ($9 million) and Millstone ($6 million); partially offset by

•	A $23 million gain on the contribution of certain privatization operations to Dominion Privatization.

Depreciation, depletion and amortization increased 15%, primarily due to an increase for amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($61 million), an increase in ~~certain Virginia Power expenditures~~RGGI related amortization ($45 million), which are ~~primarily recovered through state- and FERC-regulated rates~~offset in operating revenue and do not impact net income, ~~($62 million)~~ and an increase ~~in storm damage and restoration costs in Virginia Power’s service territory ($48 million).~~

~~Depreciation, depletion and amortization~~ ~~increased 5%, primarily~~ due to various projects being placed into ~~service.~~service ($32 million), partially offset by depreciation rates revised in the first quarter of 2022 at Virginia Power ($21 million) and a decrease from the sale of non-wholly-owned nonregulated solar facilities ($14 million).

Impairment of assets and other chargesdecreased 88$105 million%, primarily due to the ~~absence~~absence of~~charges associated with the planned early retirements of certain electric generation facilities in Virginia ($750 million) and a decrease to the CCRO reserve associated with the~~

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

~~Other income~~ ~~increased $821 million, primarily reflecting~~ ~~net investment gains in 2021 compared to net investment losses in 2020 on nuclear decommissioning trust funds~~ ($671 million), an increase in equity method earnings from Cove Point following closing of the GT&S Transaction ($67 million), an increase in non-service components of pension and other postretirement employee benefit plan credits ($36 million) and the absence of charges associated with litigation acquired in the SCANA Combination ($2560 million), partially offset by the absence of a benefit for a change in the CCRO reserve associated with the 2021 Triennial Review ($130 million).

Other income decreased 84%, primarily due to net investment losses in 2022 compared to net investment gains in 2021 on nuclear decommissioning trust funds.

Interest and related charges ~~decreased 88%,~~increased $121 million, primarily ~~reflecting~~due to lower unrealized gains ~~in 2021 compared to unrealized losses in 2020~~ associated with freestanding derivatives ($~~375~~138 million) and ~~the absence of charges associated with the early redemption of certain securities~~higher long-term debt interest expense resulting from net debt issuances ($32 million), partially offset by lower interest expense on junior subordinated notes due to repayments in ~~the first quarter of 2020~~2021 ($3125 million) and higher premiums received on interest rate derivatives ($14 million).

Income tax expense increased ~~$262 million~~11%, primarily due to ~~higher~~a charge to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale that will reverse when the sale is completed ($87 million), partially offset by lower pre-tax ~~income.~~income ($64 million).

Outlook

~~Net income from discontinued operations including noncontrolling interests~~ ~~decreased 88%, primarily due~~As of March 31, 2022, there have been no material changes to Dominion Energy’s 2022 outlook as described in Item 7. MD&A in the ~~closing of~~Companies’ Annual Report on Form 10-K for the ~~GT&S Transaction in November 2020.~~

~~Noncontrolling interests~~ ~~decreased~~ $year ended December 31, ~~million,~~ ~~primarily~~ ~~due to the closing of the GT&S Transaction in November 2020.~~2021.

Segment Results of Operations

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

	Net Income (Loss) Attributable to Dominion Energy							Diluted EPS							Net Income (Loss) Attributable to Dominion Energy								EPS⁽¹⁾
	2021		2020			$ Change		2021		2020			$ Change		2022			2021		$ Change			2022			2021		$ Change
(millions, except EPS)
First Quarter
Dominion Energy Virginia	$	434	$	429		$	5	$	0.54	$	0.51		$	0.03	$	518		$	434	$	84		$	0.64		$	0.54	$	0.10
Gas Distribution		251		224			27		0.31		0.27			0.04		294			251		43			0.36			0.31		0.05
Dominion Energy South Carolina		102		94			8		0.13		0.11			0.02		109			102		7			0.13			0.13		—
Contracted Assets		150		111			39		0.18		0.13			0.05		101			150		(49	)		0.13			0.18		(0.05	)
Corporate and Other		71		(1,128	)		1,199		0.07		(1.36	)		1.43		(311	)		71		(382	)		(0.43	)		0.07		(0.50	)
Consolidated	$	1,008	$	(270	)	$	1,278	$	1.23	$	(0.34	)	$	1.57	$	711		$	1,008	$	(297	)	$	0.83		$	1.23	$	(0.40	)

(1)

Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

Dominion Energy Virginia

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

	First Quarter							First Quarter
	2021		2020		% Change			2022		2021		% Change
Electricity delivered (million MWh)		21.7		20.8		4	%		22.3		21.7		3	%
Electricity supplied (million MWh):
Utility		21.9		22.3		(2	)		22.3		21.9		2
Non-Jurisdictional		0.2		0.1		100			0.3		0.2		50
Degree days (electric distribution and utility service area):
Cooling		11		14		(21	)		11		11		—
Heating		1,889		1,518		24			1,895		1,889		—
Average electric distribution customer accounts (thousands)		2,684		2,647		1			2,716		2,684		1

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

	First Quarter 2021 vs. 2020 Increase (Decrease)						First Quarter 2022 vs. 2021 Increase (Decrease)
	Amount			EPS			Amount			EPS
(millions, except EPS)
Regulated electric sales:
Weather	$	51		$	0.06		$	14		$	0.02
Other		(1	)		—			(9	)		(0.01	)
Rider equity return								16			0.02
Electric capacity		(5	)		(0.01	)		(8	)		(0.01	)
Planned outage costs								(7	)		(0.01	)
Depreciation and amortization		(6	)		(0.01	)		7			0.01
Renewable energy investment tax credits		(32	)		(0.03	)		61			0.08
Other		(2	)		—			10			0.01
Share accretion		—			0.02
Share dilution								—			(0.01	)
Change in net income contribution	$	5		$	0.03		$	84		$	0.10

Gas Distribution

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

	First Quarter							First Quarter
	2021		2020		% Change			2022		2021		% Change
Gas distribution throughput (bcf):
Sales		86		80		8	%		89		86		3	%
Transportation		273		250		9			301		273		10
Heating degree days (gas distribution service area):
North Carolina		1,692		1,334		27			1,583		1,692		(6	)
Ohio and West Virginia		2,758		2,442		13			2,912		2,758		6
Utah, Wyoming and Idaho		2,398		2,332		3			2,478		2,398		3
Average gas distribution customer accounts (thousands):
Sales		1,922		1,891		2			1,965		1,922		2
Transportation		1,137		1,115		2			1,140		1,137		—

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

	First Quarter 2021 vs. 2020 Increase (Decrease)				First Quarter 2022 vs. 2021 Increase (Decrease)
	Amount		EPS		Amount			EPS
(millions, except EPS)
Regulated gas sales:
Weather	$	4	$	0.01	$	2		$	—
Other		3		—		34			0.04
Rider equity return		11		0.01		8			0.01
Interest expense, net		9		0.01		1			—
Share accretion		—		0.01
Other						(2	)		—
Share dilution						—			—
Change in net income contribution	$	27	$	0.04	$	43		$	0.05

Dominion Energy South Carolina

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

	First Quarter							First Quarter
	2021		2020		% Change			2022		2021		% Change
Electricity delivered (million MWh)		5.3		5.1		4	%		5.2		5.3		(2	%)
Electricity supplied (million MWh)		5.6		5.3		6			5.5		5.6		(2	)
Degree days (electric distribution service areas):
Cooling		1		5		(80	)		—		1		(100	)
Heating		786		578		36			750		786		(5	)
Average electric distribution customer accounts (thousands)		761		746		2			772		761		1
Gas distribution throughput (bcf):
Sales		20		19		5			20		20		—
Average gas distribution customer accounts (thousands)		408		394		4			422		408		3

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

	First Quarter 2021 vs. 2020 Increase (Decrease)						First Quarter 2022 vs. 2021 Increase (Decrease)
	Amount			EPS			Amount			EPS
(millions, except EPS)
Regulated electric sales:
Weather	$	13		$	0.02		$	1		$	—
Other		(4	)		—			15			0.02
Capital cost rider								(2	)		—
Regulated gas sales		4			—			3			—
Other		(5	)		(0.01	)		(10	)		(0.02	)
Share accretion		—			0.01
Share dilution								—			—
Change in net income contribution	$	8		$	0.02		$	7		$	—

Contracted Assets

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

First Quarter

2021

2020

% Change

Electricity supplied (million MWh)

5.1

5.3

(4
%)

	First Quarter
	2022		2021		% Change
Electricity supplied (million MWh)		4.6		5.1		(10	%)

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

	First Quarter 2021 vs. 2020 Increase (Decrease)				First Quarter 2022 vs. 2021 Increase (Decrease)
	Amount		EPS		Amount			EPS
(millions, except EPS)
Margin⁽¹⁾					$	(24	)	$	(0.03	)
Planned outage costs						(4	)		—
Renewable energy investment tax credits	$	29	$	0.03		(29	)		(0.04	)
Absence of contract associated with Fowler Ridge		5		0.01
Depreciation and amortization						12			0.02
Other		5		—		(4	)		—
Share accretion		—		0.01
Share dilution						—			—
Change in net income contribution	$	39	$	0.05	$	(49	)	$	(0.05	)

(1)	Includes earnings associated with a 50% noncontrolling interest in Cove Point.

Corporate and Other

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

	First Quarter									First Quarter
	2021			2020			$ Change			2022			2021			$ Change
(millions, except EPS)
Specific items attributable to operating segments	$	(87	)	$	(1,004	)	$	917		$	(269	)	$	(87	)	$	(182	)
Specific items attributable to Corporate and Other segment		202			(54	)		256			(20	)		202			(222	)
Total specific items		115			(1,058	)		1,173			(289	)		115			(404	)
Other corporate operations:
Interest expense, net		(111	)		(92	)		(19	)		(79	)		(111	)		32
Other		67			22			45			57			67			(10	)
Total other corporate operations		(44	)		(70	)		26			(22	)		(44	)		22
Total net income (expense)	$	71		$	(1,128	)	$	1,199		$	(311	)	$	71		$	(382	)
EPS impact	$	0.07		$	(1.36	)	$	1.43		$	(0.43	)	$	0.07		$	(0.50	)

Total Specific Items

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or in allocating resources. See Note 21 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. In 2022, this primarily included a $87 million charge to reflect the recognition of deferred taxes on the outside basis of Hope’s stock upon meeting the classification as held for sale that will reverse when the sale is completed, a $52 million after-tax benefit for derivative mark-to-market changes and $19 million net income from discontinued operations, primarily associated with the Q-Pipe Group. In 2021, this primarily included a $234 million after-tax benefit for derivative mark-to-market changes, a $53 million after-tax charge for corporate office lease termination associated with workplace realignment and a $28 million ~~after-tax benefit for~~net income from discontinued operations, primarily associated with the Q-Pipe Transaction. In 2020, other than the effects of required interim period provision for income taxes, this primarily included a $145 million after-tax benefit for discontinued operations, primarily associated with the GT&S and Q-Pipe Transactions, $41 million of after-tax charges for merger and integration-related costs associated with the SCANA Combination, $30 million of after-tax charges for derivative mark-to-market changes and $23 million of after-tax charges associated with the early redemption of certain debt securities.Group.

Virginia Power

Results of Operations

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

	First Quarter							First Quarter
	2021		2020			$ Change		2022		2021		$ Change
(millions)
Net income (loss)	$	374	$	(280	)	$	654
Net income								$	357	$	374	$	(17	)

Overview

First Quarter ~~2021~~2022 vs. ~~2020~~2021

Net income ~~increased $654 million, primarily due~~decreased 5% with no transactions or events contributing to ~~the absence of charges~~ ~~related to the planned early retirements of certain electric generation facilities.~~a significant change in net income.

Analysis of Consolidated Operations

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

	First Quarter									First Quarter
	2021			2020			$ Change			2022		2021			$ Change
(millions)
Operating revenue	$	1,830		$	1,930		$	(100	)	$	2,167	$	1,830		$	337
Electric fuel and other energy-related purchases		406			492			(86	)		516		406			110
Excess electric capacity		(3	)		(9	)		6
Purchased (excess) electric capacity											11		(3	)		14
Other operations and maintenance		513			418			95			570		513			57
Depreciation and amortization		324			311			13			429		324			105
Other taxes		93			87			6			75		93			(18	)
Impairment of assets and other charges (benefit)		(51	)		764			(815	)		4		(51	)		55
Other income (expense)		32			(52	)		84
Other income											4		32			(28	)
Interest and related charges		136			126			10			148		136			12
Income tax expense (benefit)		70			(31	)		101
Income tax expense											61		70			(9	)

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

First Quarter ~~2021~~2022 vs. ~~2020~~2021

Operating revenue ~~decreased 5%~~increased 18%, primarily reflecting:

•	AThe absence of a $151 million decrease from an unbilled revenue reduction;

•	A ~~$74~~$108 million ~~decrease~~increase in the fuel cost component included in utility rates as a result of a net ~~decrease~~increase in commodity costs associated with sales to electric utility retail customers;

•	A $69 million increase from riders;

•	A $35 million increase in sales to electric utility retail customers associated with economic and other usage factors; and

•	A ~~$17 million decrease in PJM off-system sales; partially offset by~~

•	~~A $71 million increase from riders; and~~

•	~~A $68~~$19 million increase in sales to retail customers, primarily due to an increase in heating degree days.

These increases were partially offset by:

•	A $40 million decrease associated with settlements of economic hedges of certain regulated electric sales; and

•	A $15 million decrease reflecting a reduction in base rates associated with the settlement of the 2021 Triennial Review.

Electric fuel and other energy-related purchases ~~decreased 17%~~increased 27%, primarily due to ~~lower~~higher commodity costs for electric utilities, which are offset in operating revenue and do not impact net income.

Purchased electric capacity increased $14 million, primarily due to an increase in expense related to the annual PJM capacity performance market effective June 2021.

Other operations and maintenance increased 11%, primarily reflecting:

•	A $41 million increase in storm damage and service restoration costs;

•	A $17 million increase in outside services; and

•	The absence of a $10 million reduction in bad debt expense due to the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process; partially offset by

•	A $14 million decrease in certain expenses which are primarily recovered through state- and FERC-regulated rates and do not impact net income; and

•	A $11 million decrease in salaries, wages and benefits.

Depreciation and amortization increased 32%, primarily due to an increase for amortization of a regulatory asset established in the settlement of the 2021 Triennial Review ($7461 million), an increase in RGGI related amortization ($45 million), which are offset in operating revenue and do not impact net income, and ~~a decrease in PJM off-system sales ($17 million).~~

~~Other operations and maintenance~~ ~~increased 23%, primarily reflecting~~ an increase ~~in certain expenses which are primarily recovered through state- and FERC-regulated rates and do not impact net income~~ ~~($62 million)~~ ~~and an increase in storm damage and service restoration costs in its service territory~~ ($48 million), partially offset by a reduction in bad debt expense due to the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($10 million).

~~Depreciation and amortization~~ ~~increased 4%, primarily~~ due to various projects being placed into service ($1922 million), partially offset by depreciation rates revised in the ~~absence~~first quarter of ~~depreciation from certain electric generation facilities that were, or have committed~~2022 ($21 million).

Other taxes decreased 19%, primarily due to ~~be, retired early~~lower property taxes recorded in 2022 ($116 million) and lower business and occupational taxes as a result of a West Virginia legislative change ($5 million).

Impairment of assets and other charges ~~decreased $815~~increased $55 million, primarily due to the absence of ~~charges associated with the planned early retirements of certain electric generation facilities ($750 million) and~~ a ~~decrease to~~benefit for a change in the CCRO reserve associated with the 2021 Triennial Review ($130 million), partially offset by the absence of a charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process ($76 million).

Other income ~~increased $84 million,~~decreased 88%, primarily ~~reflectingnet investment gains in 2021 compared~~due to net investment losses in ~~2020~~2022 compared to net investment gains in 2021 on nuclear decommissioning trust ~~funds~~funds.

Interest and related charges .increased 9%, primarily due to higher long-term debt interest expense resulting from net debt issuances in 2022 and 2021.

Income tax expense ~~increased $101 million,~~decreased 13%, primarily due to ~~higher~~lower pre-tax income.

Liquidity and Capital Resources

Dominion Energy depends on both ~~internal~~cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term ~~debt~~ financings. ~~Short-term~~Dominion Energy’s material cash requirements ~~not met by cash provided by operations are generally satisfied~~include capital and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock. This section should be read in conjunction with ~~proceeds from short-term borrowings. Long-term cash needs are met through issuances of debt and/or equity securities.~~

~~At March 31, 2021, Dominion Energy had $3.4 billion of unused capacity under its joint revolving credit facility.~~

~~A summary of Dominion Energy’s cash flows is presented below:~~

2021

2020

(millions)

Cash, restricted cash and equivalents at January 1

$
247

$
269

Cash flows provided by (used in):

Operating activities⁽¹⁾

1,452

1,633

Investing activities⁽²⁾

(2,308
)

(1,641
)
Financing activities⁽³⁾

1,171

1,006

Net increase in cash, restricted cash and equivalents

315

998

Cash, restricted cash and equivalents at March 31

$
562

$
1,267

~~(1)~~

~~Includes $(12) million and $413 million related to discontinued operations for 2021 and 2020, respectively.~~

~~(2)~~

~~Includes $(968) million and $(268) million related to discontinued operations for 2021 and 2020, respectively.~~

~~(3)~~

~~Includes $(69) million related to discontinued operations for 2020 and no amounts for 2021.~~

~~Operating Cash Flows~~

Net cash provided by Dominion Energy’s operating activities decreased $181 million, including a $425 million decrease from discontinued operations. Net cash provided by continuing operations increased primarily due to a decrease in cash paid for interest, a distribution from Cove Point, the absence of payments related to a voluntary retirement program and net changes in working capital items, partially offset by lower deferred fuel cost recoveries.

~~Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares.~~

~~Dominion Energy’s operations are subject to risks and uncertainties that may negatively impact the timing or amounts of operating cash flows, which are discussed in Part I.~~ Item ~~1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020.~~

~~Credit Risk~~

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure as of March 31, 2021 for these activities. Gross credit exposure for each counterparty is calculated prior to the application of collateral and represents outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

Gross Credit
Exposure

Credit
Collateral

Net Credit
Exposure

(millions)

Investment grade⁽¹⁾

$
52

$
—

$
52

Non-investment grade⁽²⁾

2

—

2

No external ratings:

Internally rated—investment grade⁽³⁾

60

4

56

Internally rated—non-investment grade⁽⁴⁾

14

—

14

Total⁽⁵⁾

$
128

$
4

$
124

~~(1)~~

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 41% of the total net credit exposure.

~~(2)~~

~~The five largest counterparty exposures, combined, for this category represented less than 2% of the total net credit exposure.~~

~~(3)~~

~~The five largest counterparty exposures, combined, for this category represented approximately 25% of the total net credit exposure.~~

~~(4)~~

~~The five largest counterparty exposures, combined, for this category represented approximately 3% of the total net credit exposure.~~

~~(5) Excludes the Millstone 2019 power purchase agreements.~~

~~Investing Cash Flows~~

Net cash used in Dominion Energy’s investing activities increased $667 million, primarily due to an increase in contributions to equity method affiliates including Atlantic Coast Pipeline, partially offset by a decrease in plant construction and other property additions and the absence of the acquisitions of Pivotal LNG, Inc. and an additional interest in Atlantic Coat Pipeline.

~~Financing Cash Flows and Liquidity~~

~~Dominion Energy relies on capital markets as significant sources of funding for capital requirements not satisfied by cash provided by its operations. As discussed further in~~ ~~Credit Ratings~~ ~~and~~ ~~Debt Covenants~~ in7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020, the ability~~2021.

Analysis of Cash Flows

Presented below are selected amounts related to ~~borrow funds or issue securities and the return demanded~~Dominion Energy’s cash flows:

	2022			2021
(millions)
Cash, restricted cash and equivalents at January 1	$	408		$	247
Cash flows provided by (used in):
Operating activities		1,125			1,452
Investing activities		(1,574	)		(2,308	)
Financing activities		635			1,171
Net increase in cash, restricted cash and equivalents		186			315
Cash, restricted cash and equivalents at March 31	$	594		$	562

Operating Cash Flows

Net cash provided by ~~investors are affected by credit ratings. In addition, the raising~~Dominion Energy's operating activities decreased $327 million, inclusive of ~~external capital is subject~~a $12 million decrease from discontinued operations, primarily due to ~~certain regulatory requirements, including registration~~current year refund payments to Virginia electric customers associated with the ~~SEC for certain issuances.~~settlement of the 2021 Triennial Review ($190 million), lower deferred fuel cost recoveries ($108 million) and changes in working capital ($134 million).

Investing Cash Flows

Net cash used in Dominion ~~Energy currently meets~~Energy’s investing activities decreased $734 million, primarily due to a decrease in contributions to equity method affiliates including Atlantic Coast Pipeline ($962 million) and proceeds from the ~~definition~~sale of ~~a well-known seasoned issuer under SEC rules governing the registration, communication~~assets and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities,equity method investments ($146 million), partially offset by an increase in plant construction and other ~~than those for exchange offers or business combination transactions.~~property additions ($294 million).

Financing Cash Flows

Net cash provided by Dominion Energy's financing activities ~~increased $165~~decreased $536 million primarily due to lower ~~common stock dividend payments and higher~~ net issuances of short-term debt ($1.7 billion), partially offset by higher issuances, net of repayments and redemptions, of long-term debt ($1.0 billion) and the absence of repayment of the 364-day revolving supplemental credit facility ~~borrowings.~~borrowings ($225 million).

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021, Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. There have been no significant changes to Dominion Energy’s use of credit facilities and/or short-term debt during the three months ended March 31, 2022.

Dominion Energy Reliability Investment^SM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability Investment^SM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At March 31, ~~2021 and December 31, 2020,~~2022, Dominion Energy’s Consolidated Balance Sheets include ~~$338~~$473 million ~~and $268 million, respectively,~~ with respect to such notes presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Credit Facilities

Dominion Energy maintains a $6.0 billion joint revolving credit facility which provides for a discount in the pricing of certain annual fees and amounts borrowed by Dominion Energy under the facility if Dominion Energy achieves certain annual renewable electric generation and diversity and inclusion objectives. At March 31, 2022, Dominion Energy had $3.8 billion of unused capacity under its joint revolving credit facility. See Note 16 to the Consolidated Financial Statements in this report for ~~further~~the balances of commercial paper and letters of credit outstanding.

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans as discussed in Note 16 to the Consolidated Financial Statements in this report.

Long-Term Debt

Issuances and Borrowings of Long-Term Debt

Through March 31, 2022, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds were used for the repayment of existing long-term indebtedness and for general corporate purposes.

Month of Issuance

Type

Public / Private

Issuer / Borrowing Entity

Principal

Rate

Stated Maturity

(millions)

January

Senior notes

Public

Virginia Power

600

2.400

2032

January

Senior notes

Public

Virginia Power

400

2.950

2051

Total issuances and borrowings

1,000

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

Dominion Energy maintains a $900 million Sustainability Revolving Credit Facility which matures in 2024 and bears interest at a variable rate for amounts borrowed for general corporate purposes. The facility also offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. At March 31, 2022, Dominion Energy had no amounts outstanding under this supplemental credit facility. In May 2022, Dominion Energy provided notice of its intention to borrow $900 million under the facility.

Dominion Energy anticipates, excluding potential opportunistic financings, issuing between approximately $3.2 billion and $4.4 billion of long-term debt during 2022, inclusive of amounts issued through March 31, 2022 as shown above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayment, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed through March 31, 2022:

Month of Redemption	Type	Entity	Principal		⁽¹⁾	Rate	Stated Maturity
			(millions)
Debt scheduled to mature in 2022			$	39		various
Early redemptions
None
Total repayments, repurchases and redemptions			$	39

(1)	Total amount redeemed prior to maturity includes remaining principal plus accrued interest.

See Note 16 to the Consolidated Financial Statements in this report and Note 18 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

Through March 31, 2022, Dominion Energy was not required to and did not complete the remarketing of any of its long-term debt. In 2022, Dominion Energy expects to remarket approximately $165 million of its senior notes and tax-exempt bonds, inclusive of $138 million of Virginia Power’s tax-exempt bonds remarketed in April 2022.

Credit Ratings

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021, Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities ~~liquidity~~ and ~~significant financing transactions.~~

~~Credit Ratings~~

~~Credit~~collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer debt securities. The credit ratings for Dominion Energy are ~~intended to provide banks~~affected by its financial profile, mix of regulated and ~~capital market participants with a framework for comparing~~nonregulated businesses and respective cash flows, changes in methodologies used by the ratings agencies and event risk, if applicable, such as major acquisitions or dispositions. A credit ~~quality of securities and are~~rating is not a recommendation to buy, sell or hold ~~securities.~~ securities and should be evaluated independently of any other rating. As of March 31, 2022, there have been no changes in Dominion Energy’s credit ratings.

Financial Covenants

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021, Dominion Energy is subject to various covenants present in the enabling agreements underlying Dominion Energy’s debt. As of March 31, 2022, there have been no material changes to covenants, nor any events of default under Dominion Energy’s covenants.

Common Stock, Preferred Stock and Other Equity Securities

In the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021, there is a discussion of Dominion Energy’s existing equity financing programs, including an at-the-market program and Dominion Energy Direct®. Through March 31, 2022, Dominion Energy has issued $45 million of stock through these programs. See Note 16 to the Consolidated Financial Statements in

~~Credit Ratings~~this report for additional information. Dominion Energy anticipates raising between $300 million and $500 million of capital through the issuance of common stock in 2022 and may issue up to $150 million of stock under settlement agreements associated with litigation acquired in the SCANA Combination as discussed in Note 17 to the Consolidated Financial Statements in this report, inclusive of 0.9 million shares of its common stock, valued at $72 million, issued in May 2022 to partially satisfy DESC’s remaining obligation under a settlement agreement with the SCDOR. As discussed in Note 16 to the Consolidated Financial Statements in this report, in June 2022, Dominion Energy will settle the stock purchase contract component of the 2019 Equity Units which is expected to result in proceeds in the event of a successful remarketing of $1.6 billion and the issuance of up to 21.8 million shares, subject to a formula based on the average closing price of Dominion Energy common stock. As discussed in Note 16 to the Consolidated Financial Statements in this report, Dominion Energy, subject to approval by its Board of Directors and the settlement of a successful remarketing, will redeem all outstanding shares of the Series A Preferred Stock in September 2022.

Through March 31, 2022, Dominion Energy has not repurchased and does not plan to repurchase in 2022 any shares of common stock, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock.

Capital Expenditures

As of March 31, 2022, there have been no material changes to Dominion Energy’s total planned capital expenditures for each segment through 2026 as disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021.

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. See Note 16 to the Consolidated Financial Statements in this report for additional information regarding Dominion Energy’s outstanding preferred stock and associated dividend rates.

Subsidiary Dividend Restrictions

As of March 31, 2022, there have been no material changes to the subsidiary dividend restrictions disclosed in the Dividends section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020, there~~2021

Credit Risk

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a ~~discussion on the use~~summary of ~~capital markets by~~ Dominion ~~Energy~~Energy’s credit exposure as ~~well as the impact of credit ratings on the accessibility and costs of using these markets. As of~~ March 31, ~~2021, there~~2022 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

	Gross Credit Exposure		Credit Collateral		Net Credit Exposure
(millions)
Investment grade⁽¹⁾	$	54	$	—	$	54
Non-investment grade⁽²⁾		15		14		1
No external ratings:
Internally rated—investment grade⁽³⁾		27		—		27
Internally rated—non-investment grade⁽⁴⁾		14		—		14
Total	$	110	$	14	$	96

(1)	Designations as investment grade are based upon minimum credit ratings assigned by Moody’s Investors Service and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 45% of the total net credit exposure.

(2)	The five largest counterparty exposures, combined, for this category represented less than 1% of the total net credit exposure.

(3)	The five largest counterparty exposures, combined, for this category represented approximately 28% of the total net credit exposure.

(4)	The five largest counterparty exposures, combined, for this category represented approximately 7% of the total net credit exposure.

Fuel and Other Purchase Commitments

There have been no material changes inoutside of the ordinary course of business to Dominion Energy’s ~~credit ratings.~~

~~Debt Covenants~~

~~In the~~ ~~Debt Covenants~~ ~~section of MD&A~~fuel and other purchase commitments included in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020, there is a discussion on the various covenants present in the enabling agreements underlying Dominion Energy’s debt.~~ 2021.

Other Material Cash Requirements

As of March 31, ~~2021,~~2022, there have been no material changes ~~to debt covenants, nor any events~~outside of ~~default under~~the ordinary course of business to Dominion Energy’s ~~debt covenants.~~

~~Subsidiary Dividend Restrictions~~

~~As of March 31, 2021, there have been no~~other material ~~changes to the subsidiary dividend restrictions disclosed in MD&A~~cash requirements included in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~

~~Future Cash Payments for Contractual Obligations and Planned Capital Expenditures~~

~~As of March 31, 2021, there have been no material changes outside the ordinary course of business to Dominion Energy’s contractual~~2021. Such obligations ~~nor any material changes to planned capital expenditures as disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020.~~include:

~~Use of Off-Balance Sheet Arrangements~~

As of March 31, 2021, there have been no material changes to the off-balance sheet arrangements disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020, with the exception of the following matter.

•

Operating and finance lease obligations – See Note 14 to the Consolidated Financial Statements in this report;

•

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

•

AROs – See Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021;

•

Employee benefit plan obligations – See Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021;

•

Charitable commitments – See Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021;

•

Off-balance sheet leasing arrangements – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2021; and

•

Guarantees – See Note 17 to the Consolidated Financial Statements in this report.

Future Issues and Other Matters

The following discussion of future issues and other information includes current developments of previously disclosed matters and new issues arising during the period covered by, and subsequent to, the dates of Dominion Energy’s Consolidated Financial Statements that may impact future results of operations, financial condition and/or cash flows. This section should be read in conjunction withSee Item 1. Business, ~~and~~ Future Issues and Other Matters in MD&A ~~in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020~~ and ~~Note 17 to the Consolidated Financial Statements in this report.~~

~~Environmental Matters~~

Dominion Energy is subject to costs resulting from a number of federal, state and local laws and regulations designed to protect human health and the environment. These laws and regulations affect future planning and existing operations. They can result in increased capital, operating and other costs as a result of compliance, remediation, containment and monitoring obligations. See Note 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 and Note 17 to the Consolidated Financial Statements in this report for additional information on various environmental matters.

~~Legal Matters~~

~~See~~Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 and Notes 13 and 17 ~~to the Consolidated Financial Statements and~~ ~~Item 1. Legal Proceedings~~ ~~in this report for additional information on various legal matters.~~

~~Regulatory Matters~~

~~See Notes 3 and 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2020 and Note 13~~ to the Consolidated Financial Statements in this report for additional information on various environmental, regulatory, ~~matters.~~

~~Future Environmental Regulations~~

~~State Actions Related to Air~~legal and ~~GHG Emissions~~

In October 2020, the EPA published a proposal to revise the 2016 Cross-State Air Pollution Rule Update to address interstate air quality impacts for the 2008 ozone National Ambient Air Quality Standards. In April 2021, the EPA published the final rule update, which will become effective in June 2021. The EPA’s final rule affects 12 states including Virginia and West Virginia and amends existing NO_X ozone season emission budgets. The EPA requires implementation of the revised emission budgets beginning with the 2021 ozone season (May 1 through September 30, 2021). Dominion Energy has completed an evaluation of the potential impacts of the final rule and expectsother matters that ~~any~~may impact ~~would not be material to its~~future results of operations, financial condition and/or cash flows.

~~Coastal Virginia Offshore Wind~~CVOW Commercial Project

In September 2019, Virginia Power filed applications with PJM for the Coastal Virginia Offshore Wind Commercial project to interconnect 2,640 MW of wind energy off the coast of Virginia adjacent to the Coastal Virginia Offshore Wind Pilot project. The project is expected to be placed in service by the end of 2026 with preliminary cost estimates from late 2019 of approximately $8 billion. Throughout project development, certain planning inputs and assumptions may vary from initial and preliminary estimates. During 2021, inflationary pressure on certain raw materials including steel have been observed which may impact project costs. In addition, Virginia Power has moved into the detailed design phase for the project’s onshore electric transmission facilities including final route selection with consideration given for resiliency and minimizing environmental impacts. Although total costs for this component cannot be more precisely estimated until a final route is selected, these design factors will likely result in an increase in costs. While certain cost inputs may increase, further evaluation of turbine design and wind resource in addition to the performance to-date of the Coastal Virginia Offshore Wind Pilot project, is likely to result in a revised assumption of higher lifetime capacity factors which is expected to mitigate potential increases in development costs such that there is no expected change to Virginia Power’s preliminary estimate for the project’s projected levelized cost of energy. Virginia Power expects to file withMarch 2022, the Virginia Commission ~~a request for CPCN and related rider, which filing will include an updated cost estimate for the project, by the end of 2021.~~

~~Dominion Energy Virginia – Nuclear Operating Licenses~~

~~In 2018, Virginia Power applied for renewal of its operating licenses for an additional 20 years for the two nuclear units at Surry. In May 2021, the NRC~~ approved Virginia Power’s application ~~allowing~~filed in December 2021 for approval of a lease contract with an affiliated entity for the ~~units to generate electricity through 2052 and 2053.~~use of a Jones Act compliant offshore wind installation vessel currently under development. In April 2022, Virginia Power filed an application with the North Carolina Commission for approval of the same lease contract.

In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion to hedge its foreign currency rate risk exposure to certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project.

ITEM 3.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

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

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates and equity security prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts entered into in 2021 in connection with the CVOW Commercial Project. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel. As a result, any changes in applicable exchange rates or commodity indices could result in a change to the ultimate cost of the project. In May 2022, Virginia Power entered into forward purchase agreements with a notional amount of approximately €3.2 billion to hedge its foreign currency rate risk exposure to certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project.

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

Commodity Price Risk

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

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

A hypothetical 10% increase in commodity prices would have resulted in a decrease of $78 million and $16 million in the fair value ~~of $15 million~~ of Dominion Energy’s commodity-based derivative instruments as of March 31, ~~2021.~~ 2022 and December 31, 2021, respectively.

A hypothetical 10% ~~decrease~~increase in commodity prices would have resulted in a decrease of $38 million and $6 million in the fair value ~~of $2 million of Dominion Energy’s commodity-based derivative instruments as of December 31, 2020.~~

~~A hypothetical 10% decrease in commodity prices would have resulted in a decrease in fair value of $26 million and $35 million~~ of Virginia Power’s commodity-based derivative instruments as of March 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively.

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

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. They also enter into interest rate sensitive derivatives, including interest rate swaps and interest rate lock agreements. For variable rate debt outstanding for Dominion Energy and Virginia Power, a hypothetical 10% increase in market interest rates would not have resulted in a material change in earnings at March 31, ~~2021~~2022 or December 31, ~~2020.~~2021.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate ~~block~~lock agreements to manage interest rate risk. As of March 31, ~~2021,~~2022, Dominion Energy and Virginia Power had ~~$6.7~~$14.4 billion and ~~$2.1~~$3.9 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$177~~$228 million and ~~$100~~$141 million, respectively, in the fair value of Dominion Energy and Virginia ~~Power~~Power’s interest rate derivatives at March 31, ~~2021.~~2022. As of December 31, ~~2020,~~2021, Dominion Energy and Virginia Power had ~~$6.9~~$11.4 billion and ~~$2.1~~$2.8 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding. A

hypothetical 10% decrease in market interest rates would have resulted in a decrease of ~~$124~~$191 million and ~~$75~~$111 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, ~~2020.~~2021.

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

Investment Price Risk

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

Dominion Energy recognized net investment ~~gains (including investment income) on nuclear decommissioning and rabbi trust investments of $304 million for the three months ended March 31, 2021, net investment~~ losses (including investment income) on nuclear decommissioning and rabbi trust investments of ~~$876~~$197 million for the three months ended March 31, ~~2020,~~2022, and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of ~~$0.7~~$304 million and $1.1 billion for the three months ended March 31, 2021 and the year ended December 31, ~~2020.~~2021, respectively. Net realized gains and losses include gains and losses from the sale of ~~investments.~~investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded in AOCI and regulatory liabilities, a net decrease in unrealized gains on debt investments of $134 million, $64 million and $64 million for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021, respectively.

Virginia Power recognized net investment losses (including investment income) on nuclear decommissioning trust investments of $89 million for the three months ended March 31, 2022, and net investment gains (including investment income) on nuclear decommissioning trust investments of $153 million and $568 million for the three months ended March 31, 2021 and ~~a net increase in unrealized gains on debt investments of $57 million for~~ the year ended December 31, ~~2020.~~

~~Virginia Power recognized net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $153 million for the three months ended March 31,~~ 2021, net investment losses (including investment income) on nuclear decommissioning and rabbi trust investments of $412 million for the three months ended March 31, 2020, and net investment gains (including investment income) on nuclear decommissioning and rabbi trust investments of $287 million for the year ended December 31, 2020.respectively. Net realized gains and losses include gains and losses from the sale of ~~investments.~~investments as well as any other-than-temporary declines in fair value. Virginia Power recorded in AOCI and regulatory liabilities, a net decrease in unrealized gains on debt investments of $68 million, $28 million and $1$31 million for the three months ended March 31, 2022 and 2021 and ~~2020, respectively, and a net increase in unrealized gains on debt investments of $29 million for~~ the year ended December 31, ~~2020.~~2021, respectively.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods. As such, any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for employee benefit plans and will be included in the determination of the amount of cash to be contributed to the employee benefit plans.

ITEM 4. CONTROLS AND PROCEDURES

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

In the first quarter of 2021, Dominion Energy completed the integration of SCANA’s systems and processes into Dominion Energy’s framework of internal control over financial reporting. As part of this process, Dominion Energy transitioned SCANA’s financial activity into Dominion Energy’s accounting system. Throughout this integration and system implementation, Dominion Energy appropriately considered internal controls over financial reporting.

~~Other than with respect to this item for Dominion Energy, there~~There were no changes that occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, Dominion Energy or Virginia Power’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Companies are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Companies reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Companies use a threshold of $1 million for such proceedings.

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

•	Notes 13 and 23 to the Consolidated Financial Statements and Future Issues and Other Matters in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

•	Notes 13 and 17 to the Consolidated Financial Statements in this report.

ITEM 1A. RISK FACTORS

The Companies’ businesses are influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond the Companies’ control. A number of these risk factors have been identified in the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, 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 the Companies’ Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. 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.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Dominion Energy

Purchases of Equity Securities

Period

Total
Number of
Shares
(or Units)
Purchased⁽¹⁾

Average
Price Paid
per Share
(or Unit)⁽²⁾

Total Number
of Shares (or Units)
Purchased as Part
of Publicly
Announced Plans or
Programs

Maximum Number (or Approximate Dollar
Value) of Shares (or Units)
that May Yet Be
Purchased under the Plans
or Programs⁽³⁾
1/1/21-1/31/21

12,193

$
75.20

—

$ 0.92 billion
2/1/21-2/28/21

72,389

72.68

—

0.92 billion
3/1/21-3/31/21

—

—

—

0.92 billion
Total

84,582

$
73.04

—

$ 0.92 billion

Period	Total Number of Shares (or Units) Purchased⁽¹⁾		Average Price Paid per Share (or Unit)⁽²⁾		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased under the Plans or Programs⁽³⁾
1/1/22 - 1/31/22		3,942	$	78.64		—	$ 0.92 billion
2/1/22 - 2/28/22		59,592		80.00		—	0.92 billion
3/1/22 - 3/31/22		6,111		79.29		—	0.92 billion
Total		69,645		79.86		—	$ 0.92 billion

(1)	Represents shares of common stock that were tendered by employees to satisfy tax withholding obligations on vested restricted stock.

(2)	Represents the weighted-average price paid per share.

(3)

In November 2020, the Dominion Energy Board of Directors authorized the repurchase of up to $1.0 billion of shares of common stock. This repurchase program has no expiration date or price or volume targets and may be modified, suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions or otherwise at the discretion of management subject to prevailing market conditions, applicable securities laws and other factors.

ITEM 5. OTHER INFORMATION

On May 5, 2022, Dominion Energy filed a prospectus supplement to its effective registration statement on Form S-3 (File No. 333-239467) filed with the SEC on June 26, 2020 for purposes of registering the offer and resale of certain shares of its common stock previously issued and delivered to SCDOR in accordance with the terms of a settlement agreement as discussed in Note 17 to the Consolidated Financial Statements in this report. The registration rights agreement and opinion of counsel relating to the registration and validity of such shares are filed as Exhibits 4.2 and 5.1, respectively, to this Quarterly Report on Form 10-Q for the purpose of incorporating such exhibits by reference into the registration statement and the related prospectus contained therein, as supplemented by the prospectus supplement.

On May 5, 2022, Dominion Energy notified applicable holders that it will conduct a final remarketing of shares of Series A Preferred Stock during a final remarketing period beginning on May 23, 2022 and ending on May 27, 2022. Dominion Energy has received a commitment from a financial institution to purchase at a price of $1,000 per share any shares of Series A Preferred Stock included in the final remarketing that are not sold to other purchasers through a marketed process based on an annual dividend rate of 1.75% for the June 1, 2022 through August 31, 2022 dividend period, which annual dividend rate will increase to 6.75% effective September 1, 2022. In connection with this commitment, Dominion Energy has agreed to redeem all outstanding shares of Series A Preferred Stock on September 1, 2022, assuming settlement of the final remarketing and subject to approval by Dominion Energy’s Board of Directors, a determination that Dominion Energy has funds legally available for the redemption as required by Virginia law and the terms of the Series A Preferred Stock and the issuance of a redemption notice as required by the terms of the Series A Preferred Stock.

ITEM 6. EXHIBITS

Exhibit Number	Description	Dominion Energy	Virginia Power



3.1.a	Dominion Energy, Inc. Articles of Incorporation, as ~~restated,~~amended, effective December ~~13, 2019~~9, 2021 (Exhibit 3.1, Form 8-K filed December ~~13, 2019,~~9, 2021, File ~~No.1-8489)~~No. 1-8489).	X

3.1.b	Virginia Electric and Power Company Amended and Restated Articles of Incorporation, as in effect on October 30, 2014 (Exhibit 3.1.b, Form 10-Q filed November 3, 2014, File No. 1-2255).		X

3.2.a	Dominion Energy, Inc. Bylaws, as amended and restated, effective ~~July 30, 2020~~May 5, 2021 (Exhibit 3.1, Form 8-K filed ~~July 31, 2020,~~May 6, 2021, File No. 1-8489).	X

3.2.b	Virginia Electric and Power Company Amended and Restated Bylaws, effective June 1, 2009 (Exhibit 3.1, Form 8-K filed June 3, 2009, File No. 1-2255).		X

4	Dominion Energy, Inc. and Virginia Electric and Power Company agree to furnish to the Securities and Exchange Commission upon request any other instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of any of their total consolidated assets.	X	X

4.1	Senior Indenture, dated as of ~~June~~September 1, ~~2015,~~2017, between ~~Dominion Resources, Inc.~~Virginia Electric and ~~Deutsche~~Power Company and U.S. Bank ~~Trust Company Americas,~~National Association, as Trustee (Exhibit 4.1, Form 8-K filed ~~June 15, 2015,~~September 13, 2017, File ~~No. 1-8489)~~No.000-55337);First Supplemental Indenture, dated as of September 1, 2017 (Exhibit 4.2, Form 8-K filed September 13, 2017, File No.000-55337); Second Supplemental Indenture, dated as of ~~September~~March 1, ~~2015~~2018 (Exhibit 4.2, Form 8-K filed ~~September 24, 2015,~~March 22, 2018, File No. ~~1-8489)~~000-55337);;Third Supplemental Indenture, dated as of November 1, 2018 (Exhibit 4.2, Form 8-K filed November 28, 2018, File No. 000-55337);Fourth Supplemental Indenture, dated as of July 1, 2019 (Exhibit 4.2, Form 8-K filed July 10, 2019, File No. 00-55337);Fifth Supplemental Indenture, dated as of ~~August~~December 1, ~~2016~~2019 (Exhibit ~~4.3,~~4.2, Form 8-K filed ~~August 9, 2016,~~December 5, 2019, File No. ~~1-8489)~~000-55337);;Sixth Supplemental Indenture, dated as of ~~August~~December 1, ~~2016~~2020 (Exhibit ~~4.4,~~4.2, Form 8-K filed ~~August 9, 2016,~~December 15, 2020, File No. ~~1-8489)~~00-55337);; ~~Tenth~~Seventh Supplemental Indenture, dated as of November 1, 2021 (Exhibit 4.2, Form 8-K filed November 22, 2021, File No.000-55337);Eighth Supplemental Indenture, dated as of November 1, 2021 (Exhibit 4.3, Form 8-K filed November 22, 2021, File No.000-55337);Ninth Supplemental Indenture, dated as of January 1, ~~2017 (Exhibit 4.3, Form 8-K filed January 12, 2017, File No. 1-8489)~~; ~~Eleventh Supplemental Indenture, dated as of March 1, 2017 (Exhibit 4.3, Form 10-Q filed May 4, 2017, File No. 1-8489)~~; ~~Thirteenth Supplemental Indenture, dated December 1, 2017 (Exhibit 4.8, Form 10-K for the fiscal year ended December 31, 2017 filed February 27, 2018, File No. 1-8489)~~; ~~Fifteenth Supplemental Indenture, dated June 1, 2018~~2022 (Exhibit 4.2, Form 8-K filed ~~June~~January 13, 2022, File No.000-55337).	X	X

4.2	Registration Rights Agreement, dated May 5, ~~2018, File No. 1-8489)~~2022, by and between Dominion Energy, Inc. and South Carolina Department of Revenue (filed herewith).;	X

5.1	~~Sixteenth Supplemental Indenture, dated March 1, 2019 (Exhibit 4.2, Form 8-K filed March 13, 2019, File No. 1-8489)~~Opinion of McGuireWoods LLP (filed herewith).; ~~Seventeenth Supplemental Indenture, dated as of August 1, 2019 (Exhibit 4.2, Form 10-Q filed November 1, 2019, File No. 1-8489)~~; ~~Eighteenth Supplemental Indenture, dated as of March 1, 2020 (Exhibit 4.2, Form 8-K, filed March 19, 2020, File No. 1-8489)~~; ~~Nineteenth Supplemental Indenture, dated as of March 1, 2020 (Exhibit 4.3, Form 8-K, filed March 19, 2020, File No. 1-8489)~~; ~~Twentieth Supplemental Indenture, dated as of April 1, 2020 (Exhibit 4.2, Form 8-K, filed April 3, 2020, File No. 1-8489)~~; ~~Twenty-First Supplemental Indenture, dated as of September 1, 2020 (Exhibit 4.2, Form 8-K, filed September 17, 2020, File No. 1-8489)~~; ~~Twenty-Second Supplemental Indenture, dated as of April 1, 2021 (Exhibit 4.2, Form 8-K, filed April 5, 2021, File No. 1-8489)~~; ~~Twenty-Third Supplemental Indenture, dated as of April 1, 2021 (Exhibit 4.3, Form 8-K, filed April 5, 2021, File No. 1-8489)~~.	X

31.a	Certification by Chief Executive Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).	X

31.b	Certification by Chief Financial Officer of Dominion Energy, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).	X

31.c	Certification by Chief Executive Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).		X

31.d	Certification by Chief Financial Officer of Virginia Electric and Power Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).		X

32.a	Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Dominion Energy, Inc. as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).	X

32.b	Certification to the Securities and Exchange Commission by Chief Executive Officer and Chief Financial Officer of Virginia Electric and Power Company as required by Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).		X

99	Condensed consolidated earnings statements (filed herewith).	X	X

8586

Exhibit Number	Description	Dominion Energy	Virginia Power

101	The following financial statements from Dominion Energy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2021,~~2022, filed on May ~~4, 2021,~~5, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. The following financial statements from Virginia Electric and Power Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2021,~~2022, filed on May ~~4, 2021,~~5, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Common Shareholder’s Equity (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.	X	X

104	Cover Page Interactive Data File formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.	X	X

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	DOMINION ENERGY, INC. Registrant

May ~~4, 2021~~5, 2022	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

	VIRGINIA ELECTRIC AND POWER COMPANY Registrant

May ~~4, 2021~~5, 2022	/s/ Michele L. Cardiff
	Michele L. Cardiff Senior Vice President, Controller and Chief Accounting Officer

8788

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

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

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

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