XML 64 R57.htm IDEA: XBRL DOCUMENT v3.19.3
Employee Benefit Plans (Tables)
Nov. 18, 2019
Retirement Benefits [Abstract]  
Pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans funded status
The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy and Dominion Energy Gas (for employees represented by collective bargaining units):
                                                                                                                            
 
Pension Benefits
   
Other Postretirement Benefits
 
Year Ended December 31,
  
2018
 
  
2017
   
2018
 
  
2017
 
(millions, except percentages)
 
 
 
 
 
 
 
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
Changes in benefit obligation:
 
 
 
  
 
 
  
 
 
  
 
 
Benefit obligation at beginning of year
 
$
9,052
 
   $
8,132
   
$
1,529
 
   $
1,478
 
Service cost
 
 
157
 
    
138
   
 
27
 
    
26
 
Interest cost
 
 
337
 
    
345
   
 
56
 
    
60
 
Benefits paid
 
 
(358
)
   
(323
 )  
 
(87
)
   
(83
 )
Actuarial (gains) losses during the year
 
 
(688
)
   
830
   
 
(158
)
   
119
 
Plan amendments
(1)
  
 
—
 
    
5
   
 
(4
)
   
(73
 )
Settlements and curtailments
(2)
  
 
—
 
    
(75
 )  
 
—
 
    
2
 
                                 
Benefit obligation at end of year
 
$
8,500
 
   $
9,052
   
$
1,363
 
   $
1,529
 
                                 
Changes in fair value of plan assets:
 
 
 
    
   
 
 
    
 
Fair value of plan assets at beginning of year
 
$
8,062
 
   $
7,016
   
$
1,729
 
   $
1,512
 
Actual return (loss) on plan assets
 
 
(513
)
   
1,327
   
 
(92
)
   
236
 
Employer contributions
 
 
6
 
    
118
   
 
12
 
    
13
 
Benefits paid
 
 
(358
)
   
(323
 )  
 
(68
)
   
(32
 )
Settlements
(2)
  
 
—
 
    
(76
 )  
 
—
 
    
—
 
                                 
Fair value of plan assets at end of year
 
$
7,197
 
   $
8,062
   
$
1,581
 
   $
1,729
 
                                 
Funded status at end of year
 
$
(1,303
)
  $
(990
 )  
$
218
 
   $
200
 
                                 
Amounts recognized in the Consolidated Balance Sheets at December 31:
   
     
     
     
 
Noncurrent pension and other postretirement benefit assets
 
$
1,003
 
   $
1,117
   
$
276
 
   $
261
 
Other current liabilities
 
 
(34
)
   
(8
 )  
 
(2
)
   
—
 
Noncurrent pension and other postretirement benefit liabilities
 
 
(2,272
)
   
(2,099
 )  
 
(56
)
   
(61
 )
                                 
Net amount recognized
 
$
(1,303
)
  $
(990
 )  
$
218
 
   $
200
 
                                 
Significant assumptions used to determine benefit obligations as of December 31:
   
     
     
     
 
Discount rate
 
 
4.42%–4.43%
 
    
3.80%–3.81%
 
 
    
 
4.37%–4.38%
 
    
3.76%
 
Weighted average rate of increase for compensation
 
 
4.32
%
   
4.09%
 
  
 
4.30%-4.55%
 
    
3.95%-4.11%
 
                                 
Dominion Energy Gas
 
 
 
    
   
 
 
    
 
Changes in benefit obligation:
 
 
 
    
   
 
 
    
 
Benefit obligation at beginning of year
 
$
773
 
   $
683
   
$
290
 
   $
320
 
Service cost
 
 
18
 
    
15
   
 
4
 
    
4
 
Interest cost
 
 
29
 
    
30
   
 
11
 
    
12
 
Benefits paid
 
 
(34
)
   
(33
 )  
 
(18
)
   
(19
 )
Actuarial (gains) losses during the year
 
 
(56
)
   
78
   
 
(27
)
   
34
 
Plan amendments
(1)
  
 
—
 
    
—
   
 
(4
)
   
(61
 )
                                 
Benefit obligation at end of year
 
$
730
 
   $
773
   
$
256
 
   $
290
 
                                 
Changes in fair value of plan assets:
 
 
 
    
   
 
 
    
 
Fair value of plan assets at beginning of year
 
$
1,803
 
   $
1,542
   
$
333
 
   $
299
 
Actual return (loss) on plan assets
 
 
(113
)
   
294
   
 
(16
)
   
41
 
Employer contributions
 
 
—
 
    
—
   
 
12
 
    
12
 
Benefits paid
 
 
(34
)
   
(33
 )  
 
(18
)
   
(19
 )
                                 
Fair value of plan assets at end of year
 
$
1,656
 
   $
1,803
   
$
311
 
   $
333
 
                                 
Funded status at end of year
 
$
926
 
   $
1,030
   
$
55
 
   $
43
 
                                 
Amounts recognized in the Consolidated Balance Sheets at December 31:
   
     
     
     
 
Noncurrent pension and other postretirement benefit assets
 
$
310
 
   $
347
   
$
63
 
   $
57
 
Noncurrent assets of discontinued operations
 
 
616
 
    
683
   
 
—
 
    
—
 
Noncurrent liabilities of discontinued operations
 
 
—
 
    
—
   
 
(8
)
   
(14
 )
                                 
Net amount recognized
 
$
926
 
   $
1,030
   
$
55
 
   $
43
 
                                 
Significant assumptions used to determine benefit obligations as of December 31:
   
     
     
     
 
Discount rate
 
 
4.42
%
   
3.81
 %  
 
4.37
%
   
3.76
 %
Weighted average rate of increase for compensation
 
 
4.55
%
   
4.11
 %  
 
n/a
 
    
n/a
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
2017 amounts relate primarily to a plan amendment that changed
post-65
retiree medical coverage for certain current and future Local 69 retirees effective July 1,
2017.
 
 
 
(2)
2017 amount relates primarily to settlement and curtailment as a result of the voluntary and involuntary separation programs at Dominion Energy Questar.
 
Benefit obligation in excess of plan asset
The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy and Dominion Energy Gas (for employees represented by collective bargaining units):
                                                                                                                             
 
Pension Benefits
   
Other Postretirement
Benefits
 
As of December 31,
 
2018
 
  
2017
   
2018
 
  
2017
 
(millions)
 
   
   
   
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
Benefit obligation
 
$
        
 
     7,705
 
   $
         
 
 
 
    8,209
   
$
        
 
 
 
 
     164
 
   $
       
 
 
 
 
      191
 
Fair value of plan assets
 
 
5,398
 
    
6,103
   
 
136
 
    
156
 
                                 
Dominion Energy Gas
 
 
 
  
 
 
  
 
 
  
 
 
Benefit obligation
 
$
—
 
   $
—
   
$
134
 
   $
157
 
Fair value of plan assets
 
 
—
 
    
—
   
 
126
 
    
143
 
                                 
 
 
Accumulated benefit obligation in excess of plan assets
The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:
                                                                     
As of December 31,
 
2018
 
  
2017
 
(millions)
 
   
 
Accumulated benefit obligation
 
$
             7,056
 
   $
            7,392
 
Fair value of plan assets
 
 
5,398
 
    
6,103
 
                 
 
 
Benefit payments expected future service
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) plans:
                                                                           
 
Estimated Future Benefit Payments
  
 
Pension Benefits
 
  
Other Postretirement
Benefits
 
(millions)
 
   
 
Dominion Energy
   
     
 
2019
 
$
           
 
 
 
 
        407
 
  
$
                         98
 
2020
 
 
405
 
  
 
99
 
2021
 
 
426
 
  
 
99
 
2022
 
 
442
 
  
 
99
 
2023
 
 
465
 
  
 
98
 
2024-2028
 
 
2,548
 
  
 
461
 
                 
Dominion Energy Gas
 
 
 
  
 
 
2019
 
$
37
 
  
$
19
 
2020
 
 
39
 
  
 
19
 
2021
 
 
40
 
  
 
19
 
2022
 
 
42
 
  
 
19
 
2023
 
 
43
 
  
 
19
 
2024-2028
 
 
223
 
  
 
90
 
                 
 
 
Fair values of pension and post retirement plan assets by asset category
The fair values of Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) pension plan assets by asset category are as follows:
     
               
      
               
      
               
      
               
      
               
      
               
      
               
      
               
  
At December 31,
 
2018
   
2017
 
 
 
 
Level 1
 
 
 
  
Level 2
 
  
Level 3
 
  
Total
 
  
Level 1
   
Level 2
   
Level 3
   
Total
 
(millions)
 
 
  
 
  
 
  
 
  
   
   
   
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Cash and cash equivalents
 
$
17
 
  
$
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
  
$
 
 
 
 
 
 
 
 
 
 
—
 
  
$
18
 
  
$
18
    $
 
 
 
 
 
 
 
 
 
 
 
—
    $
 
 
 
 
 
 
 
 
 
 
—
    $
18
 
Common and preferred stocks:
   
 
  
 
 
  
 
 
    
 
    
     
     
     
 
U.S.
   
1,645
 
  
 
—
 
  
 
—
 
    
1,645
 
    
1,902
     
—
     
—
     
1,902
 
International
 
 
1,061
 
  
 
—
 
  
 
—
 
  
 
1,061
 
    
1,151
     
—
     
—
     
1,151
 
Insurance contracts
 
 
—
 
  
 
318
 
  
 
—
 
  
 
318
 
    
—
     
352
     
—
     
352
 
Corporate debt instruments
 
 
23
 
  
 
729
 
  
 
—
 
  
 
752
 
    
41
     
729
     
—
     
770
 
Government securities
 
 
25
 
  
 
605
 
  
 
—
 
  
 
630
 
    
9
     
676
     
—
     
685
 
                                                                 
Total recorded at fair value
 
$
     2,771
 
  
$
     1,653
 
  
$
         —
 
  
$
     4,424
 
   $
     3,121
    $
     1,757
    $
         —
    $
     4,878
 
                                                                 
Assets recorded at NAV
(1)
:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Common/collective trust funds
 
 
 
  
 
 
  
 
 
  
 
1,849
 
    
     
     
     
2,272
 
Alternative investments:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Real estate funds
 
 
 
  
 
 
  
 
 
  
 
108
 
    
     
     
     
111
 
Private equity funds
 
 
 
  
 
 
  
 
 
  
 
633
 
    
     
     
     
606
 
Debt funds
 
 
 
  
 
 
  
 
 
  
 
155
 
    
     
     
     
161
 
Hedge funds
 
 
 
  
 
 
  
 
 
  
 
17
 
    
     
     
     
19
 
                                                                 
Total recorded at NAV
 
 
 
  
 
 
  
 
 
  
$
2,762
 
    
     
     
    $
3,169
 
                                                                 
Total investments
(2)
  
 
 
  
 
 
  
 
 
  
$
7,186
 
    
     
     
    $
8,047
 
                                                                 
Dominion Energy Gas
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Cash and cash equivalents
 
$
4
 
  
$
—
 
  
$
—
 
  
$
4
 
   $
4
    $
—
    $
—
    $
4
 
Common and preferred stocks:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
U.S.
 
 
378
 
  
 
—
 
  
 
—
 
  
 
378
 
    
425
     
—
     
—
     
425
 
International
 
 
244
 
  
 
—
 
  
 
—
 
  
 
244
 
    
257
     
—
     
—
     
257
 
Insurance contracts
 
 
—
 
  
 
73
 
  
 
—
 
  
 
73
 
    
—
     
79
     
—
     
79
 
Corporate debt instruments
 
 
5
 
  
 
168
 
  
 
—
 
  
 
173
 
    
9
     
163
     
—
     
172
 
Government securities
 
 
6
 
  
 
139
 
  
 
—
 
  
 
145
 
    
2
     
151
     
—
     
153
 
                                                                 
Total recorded at fair value
 
$
637
 
  
$
380
 
  
$
—
 
  
$
1,017
 
   $
697
    $
393
    $
—
    $
1,090
 
                                                                 
Assets recorded at NAV
(1)
:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Common/collective trust funds
 
 
 
  
 
 
  
 
 
  
 
425
 
    
     
     
     
509
 
Alternative investments:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Real estate funds
 
 
 
  
 
 
  
 
 
  
 
25
 
    
     
     
     
25
 
Private equity funds
 
 
 
  
 
 
  
 
 
  
 
146
 
    
     
     
     
135
 
Debt funds
 
 
 
  
 
 
  
 
 
  
 
36
 
    
     
     
     
36
 
Hedge funds
 
 
 
  
 
 
  
 
 
  
 
4
 
    
     
     
     
4
 
                                                                 
Total recorded at NAV
 
 
 
  
 
 
  
 
 
  
$
636
 
    
     
     
    $
709
 
                                                                 
Total investments
(3)
  
 
 
  
 
 
  
 
 
  
$
1,653
 
    
     
     
    $
1,799
 
                                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Excludes net assets related to pending sales of securities of $12 million, net accrued income of $21 million, and includes net assets related to pending purchases of securities of $22 million at December 31, 2018. Excludes net assets related to pending sales of securities of $11 million, net accrued income of $19 million, and includes net assets related to pending purchases of securities of $15 million at December 31, 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)
Excludes net assets related to pending sales of securities of $3 million, net accrued income of $5 million, and includes net assets related to pending purchases of securities of $5 million at December 31, 2018. Excludes net assets related to pending sales of securities of $3 million, net accrued income of $4 million, and includes net assets related to pending purchases of securities of $3 million at December 31, 2017.
 
 
 
 
 
 
 
 
The fair values of Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) other postretirement plan assets by asset category are as follows:
                                                                                                                                                                                 
At December 31,
 
2018
   
2017
 
 
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
  
Level 1
   
Level 2
   
Level 3
   
Total
 
(millions)
 
 
  
 
  
 
  
 
  
   
   
   
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Cash and cash equivalents
 
$
1
 
  
$
1
 
  
$
 
 
 
 
 
 
 
 
 
 
—
 
  
$
2
 
   $
1
    $
2
    $
 
 
 
 
 
 
 
 
 
 
 
—
    $
3
 
Common and preferred stocks:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
U.S.
 
 
554
 
  
 
—
 
  
 
—
 
  
 
554
 
    
636
     
—
     
—
     
636
 
International
 
 
170
 
  
 
—
 
  
 
—
 
  
 
170
 
    
196
     
—
     
—
     
196
 
Insurance contracts
 
 
—
 
  
 
19
 
  
 
—
 
  
 
19
 
    
—
     
21
     
—
     
21
 
Corporate debt instruments
 
 
1
 
  
 
44
 
  
 
—
 
  
 
45
 
    
2
     
44
     
—
     
46
 
Government securities
 
 
2
 
  
 
37
 
  
 
—
 
  
 
39
 
    
1
     
41
     
—
     
42
 
                                                                 
Total recorded at fair value
 
$
         728
 
  
$
         101
 
  
$
         —
 
  
$
         829
 
   $
         836
    $
         108
    $
         —
    $
         944
 
                                                                 
Assets recorded at NAV
(1)
:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Common/collective trust funds
 
 
 
  
 
 
  
 
 
  
 
650
 
    
     
     
     
689
 
Alternative investments:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Real estate funds
 
 
 
  
 
 
  
 
 
  
 
10
 
    
     
     
     
9
 
Private equity funds
 
 
 
  
 
 
  
 
 
  
 
80
 
    
     
     
     
73
 
Debt funds
 
 
 
  
 
 
  
 
 
  
 
10
 
    
     
     
     
11
 
Hedge funds
 
 
 
  
 
 
  
 
 
  
 
1
 
    
     
     
     
1
 
                                                                 
Total recorded at NAV
 
 
 
  
 
 
  
 
 
  
$
751
 
    
     
     
    $
783
 
                                                                 
Total investments
(2)
  
 
 
  
 
 
  
 
 
  
$
1,580
 
    
     
     
    $
1,727
 
                                                                 
Dominion Energy Gas
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Common and preferred stocks:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
U.S.
 
$
113
 
  
$
—
 
  
$
—
 
  
$
113
 
   $
130
    $
—
    $
—
    $
130
 
International
 
 
30
 
  
 
—
 
  
 
—
 
  
 
30
 
    
33
     
—
     
—
     
33
 
                                                                 
Total recorded at fair value
 
$
143
 
  
$
—
 
  
$
—
 
  
$
143
 
   $
163
    $
—
    $
—
    $
163
 
                                                                 
Assets recorded at NAV
(1)
:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Common/collective trust funds
 
 
 
  
 
 
  
 
 
  
 
148
 
    
     
     
     
154
 
Alternative investments:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Real estate funds
 
 
 
  
 
 
  
 
 
  
 
2
 
    
     
     
     
1
 
Private equity funds
 
 
 
  
 
 
  
 
 
  
 
18
 
    
     
     
     
15
 
Debt funds
 
 
 
  
 
 
  
 
 
  
 
—
 
    
     
     
     
—
 
                                                                 
Total recorded at NAV
 
 
 
  
 
 
  
 
 
  
$
168
 
    
     
     
    $
170
 
                                                                 
Total investments
 
 
 
  
 
 
  
 
 
  
$
311
 
    
     
     
    $
333
 
                                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Excludes net assets related to pending sales of securities of $1 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2018. Excludes net assets related to pending sales of securities of $1 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $1 million at December 31, 2017.
 
 
 
Net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) plans are as follows:
                                                                                                                                                                                                                               
 
Pension Benefits
 
 
Other Postretirement Benefits
 
Year Ended December 31,
 
2018
 
 
2017
 
 
2016
 
 
2018
 
 
2017
 
 
2016
 
(millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Service cost
 
$
157
 
   $
138
    $
118
   
$
27
 
   $
26
    $
31
 
Interest cost
 
 
337
 
    
345
     
317
   
 
56
 
    
60
     
65
 
Expected return on plan assets
 
 
(663
)
   
(639
 )    
(573
 )  
 
(143
)
   
(128
 )    
(118
 )
Amortization of prior service (credit) cost
 
 
1
 
    
1
     
1
   
 
(52
)
   
(51
 )    
(35
 )
Amortization of net actuarial loss
 
 
193
 
    
162
     
111
   
 
11
 
    
13
     
8
 
Settlements and curtailments
 
 
—
 
    
—
     
1
   
 
—
 
    
—
     
—
 
                                                 
Net periodic benefit (credit) cost
 
$
25
 
   $
7
    $
(25
 )  
$
(101
)
  $
(80
 )   $
(49
 )
                                                 
Changes in plan assets and benefit obligations recognized in
 
other comprehensive income and regulatory assets and
 
liabilities:
 
 
 
    
     
   
 
 
    
     
 
Current year net actuarial (gain) loss
 
$
490
 
   $
142
    $
931
   
$
78
 
   $
12
    $
178
 
Prior service (credit) cost
 
 
—
 
    
5
     
—
   
 
(4
)
   
(73
 )    
(216
 )
Settlements and curtailments
 
 
—
 
    
1
     
(1
 )  
 
—
 
    
2
     
—
 
Less amounts included in net periodic benefit cost:
 
 
 
    
     
   
 
 
    
     
 
Amortization of net actuarial loss
 
 
(193
)
   
(162
 )    
(111
 )  
 
(11
)
   
(13
 )    
(8
 )
Amortization of prior service credit (cost)
 
 
(1
)
   
(1
 )    
(1
 )  
 
52
 
    
51
     
35
 
                                                 
Total recognized in other comprehensive income and regulatory
 
assets and liabilities
 
$
296
 
   $
(15
 )   $
818
   
$
115
 
   $
(21
 )   $
(11
 )
                                                 
Significant assumptions used to determine periodic cost:
 
 
 
    
     
   
 
 
    
     
 
Discount rate
 
 
3.80%-3.81%
 
    
3.31%-4.50%
     
2.87%-4.99%
   
 
3.76
%
   
3.92%-4.47%
     
3.56%-4.94%
 
Expected long-term rate of return on plan assets
 
 
8.75
%
   
8.75
 %    
8.75
 %  
 
8.50
%
   
8.50
 %    
8.50
 %
Weighted average rate of increase for compensation
 
 
4.09
%
   
4.09
 %    
4.22
 %  
 
3.95%-4.11%
 
    
3.29
 %    
4.22
 %
Healthcare cost trend rate
(1)
  
 
 
    
     
   
 
7.00
%
   
7.00
 %    
7.00
 %
Rate to which the cost trend rate is assumed to decline (the
ultimate trend rate)
(1)
  
 
 
    
     
   
 
5.00
%
   
5.00
 %    
5.00
 %
Year that the rate reaches the ultimate trend rate
(1)(2)
  
 
 
    
     
   
 
2022
 
    
2021
      
2020
  
                                                 
Dominion Energy Gas
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Service cost
 
$
18
 
   $
15
    $
13
   
$
4
 
   $
4
    $
5
 
Interest cost
 
 
29
 
    
30
     
30
   
 
11
 
    
12
     
14
 
Expected return on plan assets
 
 
(150
)
   
(141
 )    
(134
 )  
 
(28
)
   
(24
 )    
(23
 )
Amortization of prior service (credit) cost
 
 
—
 
    
—
     
—
   
 
(4
)
   
(3
 )    
1
 
Amortization of net actuarial loss
 
 
19
 
    
16
     
13
   
 
3
 
    
2
     
1
 
                                                 
Net periodic benefit (credit) cost
 
$
(84
)
  $
(80
 )   $
(78
 )  
$
(14
)
  $
(9
 )   $
(2
 )
                                                 
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
 
 
 
    
     
   
 
 
    
     
 
Current year net actuarial (gain) loss
 
$
207
 
   $
(75
 )   $
91
   
$
16
 
   $
18
    $
28
 
Prior service cost
 
 
—
 
    
—
     
—
   
 
(4
)
   
(61
 )    
—
 
Less amounts included in net periodic benefit cost:
 
 
 
    
     
   
 
 
    
     
 
Amortization of net actuarial loss
 
 
(19
)
   
(16
 )    
(13
 )  
 
(3
)
   
(2
 )    
(1
 )
Amortization of prior service credit (cost)
 
 
—
 
    
—
     
—
   
 
4
 
    
3
     
(1
 )
                                                 
Total recognized in other comprehensive income and regulatory
assets and liabilities
 
$
188
 
   $
(91
 )   $
78
   
$
13
 
   $
(42
 )   $
26
 
                                                 
Significant assumptions used to determine periodic cost:
 
 
 
    
     
   
 
 
    
     
 
Discount rate
   
3.81
%
   
4.50
 %    
4.99
 %  
 
3.81
%
   
4.47
 %    
4.93
 %
Expected long-term rate of return on plan assets
 
 
8.75
%
   
8.75
 %    
8.75
 %  
 
8.50
%
   
8.50
 %    
8.50
 %
Weighted average rate of increase for compensation
 
 
4.11
%
   
4.11
 %    
3.93
 %  
 
4.55
%
   
4.11
 %    
3.93
 %
Healthcare cost trend rate
(1)
  
 
 
    
     
   
 
7.00
%
   
7.00
 %    
7.00
 %
Rate to which the cost trend rate is assumed to decline (the
ultimate trend rate)
(1)
  
 
 
    
     
   
 
5.00
%
   
5.00
 %    
5.00
 %
Year that the rate reaches the ultimate trend rate
(1)
    
     
     
   
 
2022
 
    
2021
      
2020
  
                                                 
(1)
Assumptions used to determine net periodic cost for the following year.
(2)
The Society of Actuaries model used to determine healthcare cost trend rates was updated in 2014. The new model converges to the ultimate trend rate much more quickly than previous models.
Components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost
The components of AOCI and regulatory assets and liabilities for Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:
                                                                                                                             
  
Pension Benefits
   
Other
Postretirement
Benefits
 
At December 31,
 
2018
 
  
2017
   
2018
 
  
2017
 
(millions)
 
   
   
   
 
Dominion Energy
 
 
 
  
 
 
  
 
 
  
 
 
Net actuarial loss
 
$
3,477
 
   $
3,181
   
$
350
 
   $
283
 
Prior service (credit) cost
 
 
7
 
    
8
   
 
(393
)
   
(440
 )
                                 
Total
(1)
  
$
3,484
 
   $
3,189
   
$
(43
)
  $
(157
 )
                                 
Dominion Energy Gas
 
 
 
  
 
 
  
 
 
  
 
 
Net actuarial loss
 
$
555
 
   $
367
   
$
89
 
   $
76
 
Prior service (credit) cost
 
 
—
 
    
—
   
 
(52
)
   
(52
 )
                                 
Total
(2)
  
$
555
 
   $
367
   
$
37
 
   $
24
 
                                 
(1)
As of December 31, 2018, of the $3.5 billion and $(43) million related to pension benefits and other postretirement benefits, $2.0 billion and $(41) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2017, of the $3.2 billion and $(157) million related to pension benefits and other postretirement benefits, $1.9 billion and $(87) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.
(2)
As of December 31, 2018, of the $555 million related to pension benefits, $200 million is included in AOCI, with the remainder included in noncurrent assets of discontinued operations; of the $37 million related to other postretirement benefits, $22 million is included in noncurrent assets of discontinued operations with the remainder included in regulatory assets and liabilities. As of December 31, 2017, of the $367 million related to pension benefits, $134 million is included in AOCI, with the remainder included in noncurrent assets of discontinued operations; of the $24 million related to other postretirement benefits, $25 million is included in noncurrent assets of discontinued operations with the
difference
 included in regulatory liabilities.
Components of AOCI and regulatory assets and liabilities that are expected to be amortized as components of periodic benefit cost in 2019
The following table provides the components of AOCI and regulatory assets and liabilities for Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) plans as of December 31, 2018 that are expected to be amortized as components of net periodic benefit (credit) cost in 2019:
                                                                           
  
 
 
 
 
Pension Benefits
 
 
 
 
 
 
  
Other Postretirement
Benefits
 
(millions)
 
   
 
Dominion Energy
 
 
 
  
 
 
Net actuarial loss
 
$
             155
 
  
$
             18
 
Prior service (credit) cost
 
 
1
 
  
 
(52
)
Dominion Energy Gas
 
 
 
  
 
 
Net actuarial loss
 
$
19
 
  
$
4
 
Prior service (credit) cost
 
 
—
 
  
 
(4
)
                 
Effect of one percentage point change on benefit plans A one percentage point change in assumed healthcare cost trend rates would have had the following effects for Dominion Energy and Dominion Energy Gas’ (for employees represented by collective bargaining units) other postretirement benefit plans:
                                                                     
 
Other Postretirement Benefits
 
 
One percentage
point increase
 
  
One percentage
point decrease
 
(millions)
 
   
 
Dominion Energy
 
 
 
  
 
 
Effect on net periodic cost for 2019
 
$
             
 
 
        20
 
  
$
                     (16
)
Effect on other postretirement benefit obligation at December 31, 2018
 
 
130
 
  
 
(110
)
Dominion Energy Gas
 
 
 
  
 
 
Effect on net periodic cost for 2019
 
$
4
 
  
$
(3
)
Effect on other postretirement benefit obligation at December 31, 2018
 
 
25
 
  
 
(22
)