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Derivatives and Hedge Accounting Activities (Tables)

3 Months Ended

Mar. 31, 2023

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


	Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power 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
(millions)
March 31, 2023
Commodity contracts:
Over-the-counter	$	238	$	91	$	—	$	147	$	128	$	57	$	—	$	71
Exchange		59		59		—		—		13		13		—		—
Interest rate contracts:
Over-the-counter		748		202		—		546		90		10		—		80
Foreign currency exchange rate contracts:
Over-the-counter		1		1		—		—		1		1		—		—
Total derivatives, subject to a master netting or similar arrangement	$	1,046	$	353	$	—	$	693	$	232	$	81	$	—	$	151
December 31, 2022
Commodity contracts:
Over-the-counter	$	408	$	28	$	—	$	380	$	238	$	7	$	—	$	231
Exchange		160		159		—		1		—		—		—		—
Interest rate contracts:
Over-the-counter		1,407		248		—		1,159		614		38		—		576
Total derivatives, subject to a master netting or similar arrangement	$	1,975	$	435	$	—	$	1,540	$	852	$	45	$	—	$	807

(1)

Excludes derivative assets of $151 million and $201 million at Dominion Energy and $1 million and $30 million at Virginia Power at March 31, 2023 and December 31, 2022, respectively, which are not subject to master netting or other similar arrangements.

Offsetting Liabilities


	Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power 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
(millions)
March 31, 2023
Commodity contracts:
Over-the-counter	$	219	$	100	$	—	$	119	$	82	$	66	$	—	$	16
Exchange		174		59		115		—		31		13		18		—
Interest rate contracts:
Over-the-counter		403		193		1		209		62		1		—		61
Foreign currency exchange rate contracts:
Over-the-counter		93		1		—		92		93		1		—		92
Total derivatives, subject to a master netting or similar arrangement	$	889	$	353	$	116	$	420	$	268	$	81	$	18	$	169
December 31, 2022
Commodity contracts:
Over-the-counter	$	443	$	34	$	71	$	338	$	146	$	13	$	71	$	62
Exchange		483		159		324		—		176		—		176		—
Interest rate contracts:
Over-the-counter		377		210		1		166		7		—		—		7
Foreign currency exchange rate contracts:
Over-the-counter		101		32		—		69		101		32		—		69
Total derivatives, subject to a master netting or similar arrangement	$	1,404	$	435	$	396	$	573	$	430	$	45	$	247	$	138

(1)

Excludes derivative liabilities of $68 million and $26 million at Virginia Power at March 31, 2023 and December 31, 2022, respectively, which are not subject to master netting or similar arrangements. Dominion Energy did not have any derivative liabilities at March 31, 2023 and December 31, 2022 which were not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of the Companies' derivative activity at March 31, 2023. 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.


	Dominion Energy				Virginia Power
	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price		56		15		53		15
Basis(1)		160		405		148		402
Electricity (MWh in millions):
Fixed price		16		45		8		15
FTRs		18		—		18		—
Oil (Gal in millions)		6		—		6		—
Interest rate(2) (in millions)	$	526	$	11,782	$	125	$	2,750
Foreign currency exchange rate(2) (in millions)
Danish Krone	344 kr.		4,167 kr.		344 kr.		4,167 kr.
Euro	€676		€2,131		€676		€2,131

(1)

Includes options.

(2)

Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to gains and losses on cash flow hedges included in AOCI in the Companies' Consolidated Balance Sheets at March 31, 2023:


	Dominion Energy							Virginia Power
	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	$	(250	)	$	(33	)	393 months	$	7	$	—	393 months
Total	$	(250	)	$	(33	)		$	7	$	—

Fair Value of Derivatives

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of the Companies' derivatives and where they are presented in their Consolidated Balance Sheets:


	Dominion Energy						Virginia Power
	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)
At March 31, 2023
ASSETS
Current Assets
Commodity	$	—	$	157	$	157	$	—	$	79	$	79
Interest rate		11		95		106		11		—		11
Foreign currency exchange rate		—		1		1		—		1		1
Total current derivative assets		11		253		264		11		80		91
Noncurrent Assets
Commodity		—		291		291		—		63		63
Interest rate		79		563		642		79		—		79
Total noncurrent derivative assets(1)		79		854		933		79		63		142
Total derivative assets	$	90	$	1,107	$	1,197	$	90	$	143	$	233
LIABILITIES
Current Liabilities
Commodity	$	—	$	309	$	309	$	—	$	145	$	145
Interest rate		—		55		55		—		—		—
Foreign currency exchange rate		—		7		7		—		7		7
Total current derivative liabilities		—		371		371		—		152		152
Noncurrent Liabilities
Commodity		—		84		84		—		36		36
Interest rate		62		286		348		62		—		62
Foreign currency exchange rate		—		86		86		—		86		86
Total noncurrent derivative liabilities(2)		62		456		518		62		122		184
Total derivative liabilities	$	62	$	827	$	889	$	62	$	274	$	336
At December 31, 2022
ASSETS
Current Assets
Commodity	$	—	$	532	$	532	$	—	$	264	$	264
Interest rate		501		104		605		501		—		501
Total current derivative assets		501		636		1,137		501		264		765
Noncurrent Assets
Commodity		—		237		237		—		4		4
Interest rate		113		689		802		113		—		113
Total noncurrent derivative assets(1)		113		926		1,039		113		4		117
Total derivative assets	$	614	$	1,562	$	2,176	$	614	$	268	$	882
LIABILITIES
Current Liabilities
Commodity	$	—	$	700	$	700	$	—	$	290	$	290
Interest rate		—		70		70		—		—		—
Foreign currency exchange rate		—		8		8		—		8		8
Total current derivative liabilities		—		778		778		—		298		298
Noncurrent Liabilities
Commodity		—		226		226		—		58		58
Interest rate		7		300		307		7		—		7
Foreign currency exchange rate		—		93		93		—		93		93
Total noncurrent derivative liabilities(2)		7		619		626		7		151		158
Total derivative liabilities	$	7	$	1,397	$	1,404	$	7	$	449	$	456

(1)

Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(2)

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on the Companies' derivatives, as well as where the associated activity is presented in their Consolidated Balance Sheets and Statements of Income.


	Dominion Energy									Virginia Power
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, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—		$	(120	)
Total	$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—		$	(120	)
Three Months Ended March 31, 2022
Derivative type and location of gains (losses):
Interest rate(3)	$	33			(14	)	$	279		$	26		$	(1	)	$	279
Total	$	33		$	(14	)	$	279		$	26		$	(1	)	$	279

(1)

Amounts deferred into AOCI have no associated effect in the Companies' 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 the Companies' Consolidated Statements of Income.

(3)

Amounts recorded in the Companies' Consolidated Statement of Income are classified in interest and related charges.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance


	Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)
Derivatives not designated as hedging instruments	Dominion Energy						Virginia Power
Three Months Ended March 31,	2023			2022			2023			2022
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	395		$	(330	)	$	9		$	(41	)
Purchased gas		94			2
Electric fuel and other energy-related purchases		(45	)		59			(46	)		57
Interest rate:
Interest and related charges		(102	)		196
Total	$	342		$	(73	)	$	(37	)	$	16

(1)

Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies' Consolidated Statements of Income.

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