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Derivatives and Hedge Accounting Activities (Tables)

6 Months Ended

Jun. 30, 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)
June 30, 2023
Commodity contracts:
Over-the-counter	$	162	$	55	$	—	$	107	$	78	$	32	$	—	$	46
Exchange		55		55		—		—		10		10		—		—
Interest rate contracts:
Over-the-counter		904		214		—		690		135		2		—		133
Total derivatives, subject to a master netting or similar arrangement	$	1,121	$	324	$	—	$	797	$	223	$	44	$	—	$	179
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

Excludes derivative assets of $134 million and $201 million at Dominion Energy and $1 million and $30 million at Virginia Power at June 30, 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)
June 30, 2023
Commodity contracts:
Over-the-counter	$	209	$	55	$	—	$	154	$	67	$	32	$	—	$	35
Exchange		145		55		90		—		23		10		13		—
Interest rate contracts:
Over-the-counter		381		214		1		166		11		2		—		9
Foreign currency exchange rate contracts:
Over-the-counter		59		—		—		59		59		—		—		59
Total derivatives, subject to a master netting or similar arrangement	$	794	$	324	$	91	$	379	$	160	$	44	$	13	$	103
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 $78 million and $26 million at Virginia Power at June 30, 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 June 30, 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 June 30, 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(1)		43		14		40		14
Basis(2)		157		375		138		372
Electricity (MWh in millions):
Fixed price		17		44		8		13
Oil (Gal in millions)		6		—		6		—
Interest rate(3) (in millions)	$	524	$	11,758	$	125	$	2,750
Foreign currency exchange rate(3) (in millions)
Danish Krone	1,004 kr.		3,468 kr.		1,004 kr.		3,468 kr.
Euro	€453		€2,131		€453		€2,131

(1)

Includes options at Dominion Energy.

(2)

Includes options.

(3)

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 June 30, 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	$	(236	)	$	(33	)	390 months	$	13	$	—	390 months
Total	$	(236	)	$	(33	)		$	13	$	—

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 June 30, 2023
ASSETS
Current Assets
Commodity	$	—	$	129	$	129	$	—	$	43	$	43
Interest rate		18		113		131		18		—		18
Total current derivative assets(1)		18		242		260		18		43		61
Noncurrent Assets
Commodity		—		222		222		—		46		46
Interest rate		117		656		773		117		—		117
Total noncurrent derivative assets(2)		117		878		995		117		46		163
Total derivative assets	$	135	$	1,120	$	1,255	$	135	$	89	$	224
LIABILITIES
Current Liabilities
Commodity	$	—	$	240	$	240	$	—	$	117	$	117
Interest rate		—		83		83		—		—		—
Foreign currency exchange rate		—		9		9		—		9		9
Total current derivative liabilities(3)		—		332		332		—		126		126
Noncurrent Liabilities
Commodity		—		114		114		—		51		51
Interest rate		11		287		298		11		—		11
Foreign currency exchange rate		—		50		50		—		50		50
Total noncurrent derivative liabilities(4)		11		451		462		11		101		112
Total derivative liabilities	$	11	$	783	$	794	$	11	$	227	$	238
At December 31, 2022
ASSETS
Current Assets
Commodity	$	—	$	532	$	532	$	—	$	264	$	264
Interest rate		501		104		605		501		—		501
Total current derivative assets(1)		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(2)		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(3)		—		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(4)		7		619		626		7		151		158
Total derivative liabilities	$	7	$	1,397	$	1,404	$	7	$	449	$	456

(1)

Includes $2 million and $118 million recorded in current assets held for sale in Dominion Energy's Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, respectively.

(2)

Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets, with the exception of $1 million recorded in noncurrent assets held for sale in Dominion Energy's Consolidated Balance Sheets at December 31, 2022.

(3)

Includes $13 million and $6 million recorded in current liabilities held for sale in Dominion Energy's Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, respectively.

(4)

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies' Consolidated Balance Sheets, with the exception of $1 million recorded in noncurrent liabilities held for sale in Dominion Energy's Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022.

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 June 30, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	8		$	(10	)	$	88		$	8		$	—		$	88
Total	$	8		$	(10	)	$	88		$	8		$	—		$	88
Three Months Ended June 30, 2022
Derivative type and location of gains (losses):
Interest rate(3)	$	39			(14	)	$	354		$	33		$	—		$	353
Total	$	39		$	(14	)	$	354		$	33		$	—		$	353
Six Months Ended June 30, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	(4	)	$	(21	)	$	(32	)	$	(4	)	$	—		$	(32	)
Total	$	(4	)	$	(21	)	$	(32	)	$	(4	)	$	—		$	(32	)
Six Months Ended June 30, 2022
Derivative type and location of gains (losses):
Interest rate(3)	$	72		$	(28	)	$	633		$	59		$	(1	)	$	632
Total	$	72		$	(28	)	$	633		$	59		$	(1	)	$	632

(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
	Quarter-to-Date						Year-to-Date						Quarter-to-Date						Year-to-Date
Period Ended June 30,	2023			2022			2023			2022			2023			2022			2023			2022
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	26		$	(272	)	$	421		$	(602	)	$	10		$	(88	)	$	19		$	(129	)
Purchased gas		—			3			—			4
Electric fuel and other energy-related purchases		(73	)		137			(118	)		196			(73	)		125			(119	)		182
Operations and maintenance		2			—			2			—			2			—			2			—
Discontinued operations		—			—			94			1
Interest rate:
Interest and related charges		29			273			(47	)		368
Discontinued operations		50			67			24			168
Total	$	34		$	208		$	376		$	135		$	(61	)	$	37		$	(98	)	$	53