Investments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

Note 10. Investments

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 $145 million and $119 million at June 30, 2024 and December 31, 2023, respectively.

Decommissioning Trust Securities

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

	Dominion Energy												Virginia Power
	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)
June 30, 2024
Equity securities:(1)
U.S.	$	1,264	$	3,897	$	(7	)				$	5,154	$	733	$	2,023	$	(6	)				$	2,750
Fixed income securities:(2)
Corporate debt    instruments		591		5		(25	)		$	—		571		365		2		(20	)		$	—		347
Government    securities		1,505		11		(38	)			—		1,478		877		6		(19	)			—		864
Common/    collective    trust funds		—		—		—				—		—		—		—		—				—		—
Other		121		—		—				—		121		80		—		—				—		80
Insurance    contracts		243		—		—						243
Cash equivalents    and other(3)		41		—		—				—		41		18		—		—				—		18
Total	$	3,765	$	3,913	$	(70	)	(4)	$	—	$	7,608	$	2,073	$	2,031	$	(45	)	(4)	$	—	$	4,059
December 31, 2023
Equity securities:(1)
U.S.	$	1,276	$	3,270	$	(10	)				$	4,536	$	759	$	1,706	$	(10	)				$	2,455
Fixed income securities:(2)
Corporate debt    instruments		508		10		(27	)		$	—		491		292		3		(21	)		$	—		274
Government    securities		1,426		28		(24	)			—		1,430		811		17		(12	)			—		816
Common/    collective    trust funds		161		—		—				—		161		124		—		—				—		124
Insurance    contracts		244		—		—						244
Cash equivalents    and other(3)		84		—		—				—		84		47		—		—				—		47
Total	$	3,699	$	3,308	$	(61	)	(4)	$	—	$	6,946	$	2,033	$	1,726	$	(43	)	(4)	$	—	$	3,716

(1)Unrealized gains and losses on equity securities are included in other income (expense) 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 (expense).

(3)Dominion Energy includes pending sales of securities of $27 million and $49 million at June 30, 2024 and December 31, 2023, respectively. Virginia Power includes pending sales of securities of $17 million and $27 million at June 30, 2024, and December 31, 2023, respectively.

(4)Dominion Energy’s fair value of securities in an unrealized loss position was $1.3 billion and $764 million at June 30, 2024 and December 31, 2023, respectively. Virginia Power’s fair value of securities in an unrealized loss position was $738 million and $384 million at June 30, 2024 and December 31, 2023, respectively.

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

	Dominion Energy									Virginia Power
	Quarter-to-Date				Year-to-Date					Quarter-to-Date				Year-to-Date
Period Ended June 30,	2024		2023		2024			2023		2024		2023		2024			2023
(millions)
Net gains (losses) recognized during    the period	$	178	$	294	$	637		$	520	$	86	$	153	$	328		$	269
Less: Net (gains) losses recognized    during the period on securities    sold during the period		6		1		(4	)		3		4		2		(5	)		3
Unrealized gains (losses) recognized    during the period on securities still    held at period end(1)	$	184	$	295	$	633		$	523	$	90	$	155	$	323		$	272

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

The fair value of Dominion Energy and Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2024 by contractual maturity is as follows:

	Dominion Energy		Virginia Power
(millions)
Due in one year or less	$	167	$	109
Due after one year through five years		561		298
Due after five years through ten years		427		264
Due after ten years		1,015		620
Total	$	2,170	$	1,291

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

	Dominion Energy								Virginia Power
	Quarter-to-Date				Year-to-Date				Quarter-to-Date				Year-to-Date
Period Ended June 30,	2024		2023		2024		2023		2024		2023		2024		2023
(millions)
Proceeds from sales	$	884	$	594	$	1,579	$	1,138	$	602	$	346	$	1,073	$	719
Realized gains(1)		27		22		59		43		16		8		39		25
Realized losses(1)		34		36		72		77		22		14		45		45

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

Equity Method Investments

Dominion Energy recorded equity losses on its investments of less than $1 million and equity earnings on its investments of $3 million for the six months ended June 30, 2024 and 2023, respectively, in other income (expense) in its Consolidated Statements of Income. In addition, Dominion Energy recorded equity earnings (losses) of $(11) million and $184 million for the six months ended June 30, 2024 and 2023, respectively, in discontinued operations, including amounts related to its investments in Cove Point and Atlantic Coast Pipeline discussed below. Dominion Energy received distributions of $134 million and $185 million for the six months ended June 30, 2024 and 2023, respectively. Dominion Energy made contributions of $4 million and $48 million for the six months ended June 30, 2024 and 2023, respectively. At June 30, 2024 and December 31, 2023, the net difference between the carrying amount of Dominion Energy’s investments and its share of underlying equity in net assets was $12 million and $18 million, respectively. At June 30, 2024, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $2 million attributable to capitalized interest. At December 31, 2023, these differences are primarily comprised of $9 million of equity method goodwill that is not being amortized and $3 million attributable to capitalized interest.

Cove Point

See Note 9 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of the sale of Dominion Energy’s remaining interest in Cove Point to BHE, which closed in September 2023.

Dominion Energy recorded distributions from Cove Point of $95 million and $178 million for the three and six months ended June 30, 2023, respectively.

Amounts presented within discontinued operations within Dominion Energy’s Consolidated Statements of Income related to Cove Point for the three and six months ended June 30, 2023 were $90 million and $166 million of earnings on equity method investees, $(11) million and $51 million of interest expense (benefit) and $21 million and $24 million of income tax expense, 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 Companies’ Annual Report on Form 10-K for the year ended December 31, 2023.

Dominion Energy recorded equity losses related to Atlantic Coast Pipeline of $1 million and equity earnings of $18 million for the three months ended June 30, 2024 and 2023, respectively, in discontinued operations. Dominion Energy recorded equity losses related to Atlantic Coast Pipeline of $12 million and equity earnings of $17 million for the six months ended June 30, 2024 and 2023, respectively, in discontinued operations.

At June 30, 2024 and December 31, 2023, Dominion Energy has recorded a liability of $13 million and $4 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 AROs.

Dominion Energy recorded $41 million of contributions to Atlantic Coast Pipeline during the six months ended June 30, 2023.

Dominion Energy expects it could 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.

Dominion Privatization

In February 2024, Dominion Energy received a distribution of $126 million from Dominion Privatization, which was accounted for as a return of an investment.