XML 55 R42.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Inputs, Assets, Quantitative Information

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at June 30, 2024. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.

 

 

 

 

 

Dominion Energy

 

Virginia Power

 

Valuation
Techniques

Unobservable
Input

 

Fair Value (millions)

 

Range

Weighted
Average(1)

 

Fair Value (millions)

 

Range

Weighted
Average(1)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

FTRs

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

89

 

(6)-13

4

 

 

89

 

(6)-13

4

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

253

 

28-111

53

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Option model

Market price
   (per Dth)

(3)

 

43

 

1-7

3

 

 

21

 

1-6

3

 

Price volatility

(4)

 

 

10%-75%

45%

 

 

 

19%-72%

52%

Total assets

 

 

 

$

385

 

 

 

 

$

110

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Discounted
   cash flow

Market price
   (per Dth)

(3)

$

3

 

(2)-2

(1)

 

$

3

 

(2)-2

(1)

FTRs

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

2

 

(6)-13

(1)

 

 

2

 

(6)-13

(1)

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

20

 

34-126

66

 

 

 

 

 

Total liabilities

 

 

$

25

 

 

 

 

$

5

 

 

 
(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
Represents volatilities unrepresented in published markets.
Fair Value, Option, Qualitative Disclosures

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)

Price volatility

 

Buy

 

Increase (decrease)

 

Gain (loss)

Price volatility

 

Sell

 

Increase (decrease)

 

Loss (gain)

 
Fair Value, by Balance Sheet Grouping

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

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

200

 

 

$

385

 

 

$

585

 

 

$

—

 

 

$

70

 

 

$

110

 

 

$

180

 

Interest rate

 

 

—

 

 

 

998

 

 

 

—

 

 

 

998

 

 

 

—

 

 

 

208

 

 

 

—

 

 

 

208

 

Foreign currency exchange rate

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

5,163

 

 

 

—

 

 

 

—

 

 

 

5,163

 

 

 

2,662

 

 

 

—

 

 

 

—

 

 

 

2,662

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

581

 

 

 

—

 

 

 

581

 

 

 

—

 

 

 

347

 

 

 

—

 

 

 

347

 

Government securities

 

 

237

 

 

 

1,267

 

 

 

—

 

 

 

1,504

 

 

 

140

 

 

 

724

 

 

 

—

 

 

 

864

 

Other

 

 

132

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

80

 

 

 

—

 

 

 

—

 

 

 

80

 

Total assets

 

$

5,532

 

 

$

3,047

 

 

$

385

 

 

$

8,964

 

 

$

2,882

 

 

$

1,350

 

 

$

110

 

 

$

4,342

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

166

 

 

$

25

 

 

$

191

 

 

$

—

 

 

$

71

 

 

$

5

 

 

$

76

 

Interest rate

 

 

—

 

 

 

536

 

 

 

—

 

 

 

536

 

 

 

—

 

 

 

11

 

 

 

—

 

 

 

11

 

Foreign currency exchange rate

 

 

—

 

 

 

112

 

 

 

—

 

 

 

112

 

 

 

—

 

 

 

112

 

 

 

—

 

 

 

112

 

Total liabilities

 

$

—

 

 

$

814

 

 

$

25

 

 

$

839

 

 

$

—

 

 

$

194

 

 

$

5

 

 

$

199

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

325

 

 

$

225

 

 

$

550

 

 

$

—

 

 

$

96

 

 

$

21

 

 

$

117

 

Interest rate

 

 

—

 

 

 

800

 

 

 

—

 

 

 

800

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

181

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

4,527

 

 

 

—

 

 

 

—

 

 

 

4,527

 

 

 

2,362

 

 

 

—

 

 

 

—

 

 

 

2,362

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

500

 

 

 

—

 

 

 

500

 

 

 

—

 

 

 

274

 

 

 

—

 

 

 

274

 

Government securities

 

 

219

 

 

 

1,238

 

 

 

—

 

 

 

1,457

 

 

 

129

 

 

 

687

 

 

 

—

 

 

 

816

 

Cash equivalents and other

 

 

31

 

 

 

—

 

 

 

—

 

 

 

31

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

20

 

Total assets

 

$

4,777

 

 

$

2,863

 

 

$

225

 

 

$

7,865

 

 

$

2,511

 

 

$

1,238

 

 

$

21

 

 

$

3,770

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

160

 

 

$

139

 

 

$

299

 

 

$

—

 

 

$

95

 

 

$

137

 

 

$

232

 

Interest rate

 

 

—

 

 

 

359

 

 

 

—

 

 

 

359

 

 

 

—

 

 

 

45

 

 

 

—

 

 

 

45

 

Foreign currency exchange rate

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

Total liabilities

 

$

—

 

 

$

558

 

 

$

139

 

 

$

697

 

 

$

—

 

 

$

179

 

 

$

137

 

 

$

316

 

 

(1)
Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $222 million and $457 million of assets at Dominion Energy, inclusive of $88 million and $217 million at Virginia Power, at June 30, 2024 and December 31, 2023, 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.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

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

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

190

 

 

$

206

 

 

$

86

 

 

$

422

 

 

$

(38

)

 

$

55

 

 

$

(116

)

 

$

221

 

Total realized and unrealized gains
    (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

2

 

 

 

2

 

 

 

(6

)

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-
related purchases

 

 

(27

)

 

 

(36

)

 

 

(148

)

 

 

(87

)

 

 

(27

)

 

 

(36

)

 

 

(146

)

 

 

(88

)

Discontinued operations

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in regulatory assets/
    liabilities

 

 

176

 

 

 

(74

)

 

 

307

 

 

 

(290

)

 

 

149

 

 

 

(58

)

 

 

226

 

 

 

(224

)

Settlements

 

 

18

 

 

 

36

 

 

 

94

 

 

 

71

 

 

 

20

 

 

 

36

 

 

 

120

 

 

 

72

 

Purchases

 

 

1

 

 

 

—

 

 

 

28

 

 

 

16

 

 

 

1

 

 

 

—

 

 

 

21

 

 

 

16

 

Ending balance

 

$

360

 

 

$

134

 

 

$

360

 

 

$

134

 

 

$

105

 

 

$

(3

)

 

$

105

 

 

$

(3

)
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments For the Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

 

 

 

Dominion Energy

 

 

Virginia Power

 

 

 

Carrying
Amount

 

 

Estimated
Fair
Value(1)

 

 

Carrying
Amount

 

 

Estimated
Fair
Value(1)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

34,311

 

 

$

31,558

 

 

$

18,033

 

 

$

16,301

 

Supplemental credit facility borrowings

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Securitization bonds(3)

 

 

1,282

 

 

 

1,278

 

 

 

1,282

 

 

 

1,278

 

Junior subordinated notes(2)

 

 

3,367

 

 

 

3,450

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

42,526

 

 

$

40,539

 

 

$

17,392

 

 

$

16,418

 

Supplemental credit facility borrowings

 

 

450

 

 

 

450

 

 

 

 

 

 

 

Junior subordinated notes(2)

 

 

1,388

 

 

 

1,374

 

 

 

 

 

 

 

 

(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. There were no fair value hedges associated with fixed-rate debt at June 30, 2024 and December 31, 2023. Additionally, Dominion Energy carrying amounts include portions classified as current liabilities held for sale at both June 30, 2024 and December 31, 2023.
(3)
Carrying amount includes current portions included in securities due within one year.