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Leases (Tables)

12 Months Ended

Dec. 31, 2022

Lease Assets and Liabilities Recorded in Consolidated Balance Sheets

At December 31, 2022 and 2021, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:


	Dominion Energy				Virginia Power
At December 31,	2022		2021		2022		2021
(millions)
Lease assets:
Operating lease assets(1)	$	415	$	506	$	294	$	256
Finance lease assets(2)		144		144		82		71
Total lease assets	$	559	$	650	$	376	$	327
Lease liabilities:
Operating lease liabilities(3)	$	39	$	44	$	21	$	25
Finance lease liabilities(4)		46		36		17		13
Total lease liabilities - current		85		80		38		38
Operating lease liabilities (5)		514		464		273		227
Finance lease liabilities(6)		104		112		65		57
Total lease liabilities - noncurrent		618		576		338		284
Total lease liabilities	$	703	$	656	$	376	$	322

(1)

Included in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(2)

Included in property, plant and equipment in the Companies’ Consolidated Balance Sheets, net of $114 million and $33 million of accumulated amortization at Dominion Energy and Virginia Power, respectively, at December 31, 2022 and net of $81 million and $18 million of accumulated amortization at Dominion Energy and Virginia Power, respectively, at December 31, 2021.

(3)

Included in other current liabilities in the Companies’ Consolidated Balance Sheets.

(4)

Included in securities due within one year in the Companies’ Consolidated Balance Sheets.

(5)

Included in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

(6)

Included in other long-term debt in the Companies’ Consolidated Balance Sheets.

Summary of Total Lease Cost

For the years ended December 31, 2022, 2021 and 2020, total lease cost associated with the Companies’ leasing arrangements consisted of the following:


	Dominion Energy							Virginia Power
Year ended December 31,	2022		2021			2020		2022		2021		2020
(millions)
Finance lease cost:
Amortization	$	41	$	40		$	33	$	15	$	12	$	7
Interest		3		(3	)		—		3		1		1
Operating lease cost		53		66			68		32	$	30	$	36
Short-term lease cost		31		32			20		21		19		12
Variable lease cost		4		5			8		1		1		4
Total lease cost	$	132	$	140		$	129	$	72	$	63	$	60

Cash Paid for Amounts Included in Measurement of Lease Liabilities

For the years ended December 31, 2022, 2021 and 2020, cash paid for amounts included in the measurement of the lease liabilities consisted of the following amounts, included in the Companies’ Consolidated Statements of Cash Flows:


	Dominion Energy							Virginia Power
Year ended December 31,	2022		2021			2020		2022		2021		2020
(millions)
Operating cash flows for finance leases	$	3	$	(3	)	$	—	$	3	$	1	$	1
Operating cash flows for operating leases		82		103			96		50		53		52
Financing cash flows for finance leases		32		40			33		12		12		7

Weighted Average Remaining Lease Term and Weighted Discounted Rate for Finance and Operating Leases

At December 31, 2022 and 2021, the weighted average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:


	Dominion Energy						Virginia Power
December 31,	2022			2021			2022			2021
Dominion Energy
Weighted average remaining lease term - finance leases	4 years			5 years			6 years			6 years
Weighted average remaining lease term - operating leases	29 years			27 years			30 years			25 years
Weighted average discount rate - finance leases		5.77	%		2.77	%		6.12	%		2.27	%
Weighted average discount rate - operating leases		3.91	%		3.96	%		3.90	%		4.00	%

Scheduled Maturities of Lease Liabilities

The Companies’ lease liabilities have the following maturities:


Maturity of Lease Liabilities	Dominion Energy						Virginia Power
(millions)	Operating			Finance			Operating			Finance
2023	$	44		$	52		$	23		$	21
2024		36			45			19			20
2025		30			25			15			17
2026		27			20			12			14
2027		25			14			10			11
After 2027		642			15			314			13
Total undiscounted lease payments		804			171			393			96
Present value adjustment		(251	)		(21	)		(99	)		(14	)
Present value of lease liabilities	$	553		$	150		$	294		$	82