XML 147 R43.htm IDEA: XBRL DOCUMENT v3.19.3
Derivatives and Hedge Accounting Activities (Tables)
Nov. 18, 2019
Offsetting Assets
The tables below present Dominion Energy’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
                                     
 
 
 
June 30, 2019
   
 
 
 
 
December 31, 2018
   
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Commodity contracts:
   
     
     
     
     
     
     
     
 
                                                                 
Over-the-counter
 
$
103
 
 
$
5
 
 
$
 
 
$
98
 
  $
175
    $
12
    $
    $
163
 
                                                                 
Exchange
 
 
82
 
 
 
24
 
 
 
 
 
 
58
 
   
68
     
68
     
     
 
                                                                 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
7
 
 
 
3
 
 
 
 
 
 
4
 
   
18
     
1
     
     
17
 
                                                                 
Foreign currency contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
14
 
 
 
13
 
 
 
 
 
 
1
 
   
26
     
2
     
     
24
 
                                                                 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
             206
 
 
$
             45
 
 
$
             —
 
 
$
         161
 
  $
             287
    $
         83
    $
         —
    $
         204
 
                                                                 
(1)
Excludes $
3
 million and $
7
 million of derivative assets at June 30, 2019 and December 31, 2018, respectively, which are not subject to master netting or similar arrangements.
Offsetting Liabilities
                                     
 
 
 
June 30, 2019
   
 
 
 
 
December 31, 2018
   
 
 
 
 
Gross Amounts Not
Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Commodity contracts:
   
     
     
     
     
     
     
     
 
                                                                 
Over-the-counter
 
$
42
 
 
$
5
 
 
$
 
 
$
37
 
  $
19
    $
12
    $
    $
7
 
                                                                 
Exchange
 
 
24
 
 
 
24
 
 
 
 
 
 
 
   
115
     
68
     
47
     
 
                                                                 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
557
 
 
 
16
 
 
 
35
 
 
 
506
 
   
142
     
1
     
     
141
 
                                                                 
Foreign currency contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
 
 
 
 
 
 
 
 
 
 
   
2
     
2
     
     
 
                                                                 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
             623
 
 
$
             45
 
 
$
             35
 
 
$
         543
 
  $
             278
    $
         83
    $
         47
    $
         148
 
                                                                 
(1)
Excludes $
3
 million and $
1
 million of derivative liabilities at June 30, 2019 and December 31, 2018, respectively, which are not subject to master netting or similar arrangements.
Schedule of Volume of Derivative Activity
The following table presents the volume of Dominion Energy’s derivative activity at June 30, 2019. 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.
 
Current
 
 
Noncurrent
 
Natural Gas (bcf):
 
 
 
 
Fixed price
(1)
 
 
111
 
 
 
67
 
Basis
 
 
248
 
 
 
525
 
Electricity (MWh):
 
 
 
 
 
 
Fixed price
 
 
5,881,750
 
 
 
771,800
 
FTRs
 
 
104,772,623
 
 
 
 
NGLs (Gal)
 
 
18,648,000
 
 
 
 
Interest rate
(2)
 
$
     1,150,000,000
 
 
$
     5,394,066,073
 
Foreign currency
(2)(3)
 
$
 
 
$
280,000,000
 
(1)
Includes options.
(2)
Maturity is determined based on final settlement period.
(3)
Euro equivalent volumes are
250,000,000
.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at June 30, 2019:
 
AOCI
After-Tax
 
 
Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax
 
 
Maximum Term
 
                   
(millions)
 
   
   
 
Commodities:
   
     
     
 
Gas
 
$
(6
)
 
$
(6
)
 
 
40 months
 
Electricity
 
 
38
 
 
 
32
 
 
 
18 months
 
Other
 
 
1
 
 
 
1
 
 
 
9 months
 
Interest rate
 
 
(429
)
 
 
(47
)
 
 
390 months
 
Foreign currency
 
 
7
 
 
 
 
 
 
84 months
 
                         
Total
 
$
             (389
)
 
$
                     (20
)
 
 
 
                         
Schedule of Amounts Recorded on Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges
The following table presents the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:
 
Carrying Amount of the Hedged Asset
(Liability)
(1)
   
Cumulative Amount of Fair Value Hedging
Adjustments Included in the Carrying Amount
of the Hedged Assets (Liabilities)
(2)
 
 
June 30, 2019
 
 
December 31, 2018
   
 
 
June 30, 2019
 
 
December 31, 2018
 
                               
(millions)
 
 
 
 
 
 
 
 
 
 
                                         
Long-term debt
 
$
             (1,652
)
      $
             (1,631
)    
   
$
                 (2
)
      $
                 20
 
(1)
Includes $(
895
) million and $(
892
) million related to discontinued hedging relationships at June 30, 2019 and December 31, 2018, respectively.
(2)
Includes $
5
 million and $
8
 million of hedging adjustments on discontinued hedging relationships at June 30, 2019 and December 31, 2018, respectively.
Fair Value of Derivatives
Fair Value and Gains and Losses on Derivative Instruments
The following table presents the fair values of Dominion Energy’s derivatives and where they are presented in its Consolidated Balance Sheets: 
 
Fair Value –
Derivatives under
Hedge
Accounting
 
 
Fair Value –
Derivatives not under
Hedge
Accounting
 
 
 Total Fair Value 
 
(millions)
 
   
   
 
June 30, 2019
   
     
     
 
ASSETS
   
     
     
 
Current Assets
   
     
     
 
Commodity
 
$
43
 
 
$
70
 
 
$
113
 
                         
Total current derivative assets
(1)
 
 
43
 
 
 
70
 
 
 
113
 
                         
Noncurrent Assets
   
     
     
 
Commodity
 
 
10
 
 
 
65
 
 
 
75
 
Interest rate
 
 
7
 
 
 
 
 
 
7
 
Foreign currency
 
 
14
 
 
 
 
 
 
14
 
                         
Total noncurrent derivative assets
(2)
 
 
31
 
 
 
65
 
 
 
96
 
                         
Total derivative assets
 
$
74
 
 
$
135
 
 
$
209
 
                         
LIABILITIES
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
Commodity
 
$
10
 
 
$
48
 
 
$
58
 
Interest rate
 
 
142
 
 
 
1
 
 
 
143
 
                         
Total current derivative liabilities
(3)
 
 
152
 
 
 
49
 
 
 
201
 
                         
Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
Commodity
 
 
2
 
 
 
9
 
 
 
11
 
Interest rate
 
 
397
 
 
 
17
 
 
 
414
 
                         
Total noncurrent derivative liabilities
(4)
 
 
399
 
 
 
26
 
 
 
425
 
                         
Total derivative liabilities
 
$
551
 
 
$
75
 
 
$
626
 
                         
December 31, 2018
   
     
     
 
ASSETS
   
     
     
 
Current Assets
   
     
     
 
Commodity
  $
55
    $
154
    $
209
 
Interest rate
   
14
     
     
14
 
                         
Total current derivative assets
(1)
   
69
     
154
     
223
 
                         
Noncurrent Assets
   
     
     
 
Commodity
   
6
     
35
     
41
 
Interest rate
   
4
     
     
4
 
Foreign currency
   
26
     
     
26
 
                         
Total noncurrent derivative assets
(2)
   
36
     
35
     
71
 
                         
Total derivative assets
  $
105
    $
189
    $
294
 
                         
LIABILITIES
   
     
     
 
Current Liabilities
   
     
     
 
Commodity
  $
17
    $
112
    $
129
 
Interest rate
   
26
     
     
26
 
Foreign currency
   
2
     
     
2
 
                         
Total current derivative liabilities
(3)
   
45
     
112
     
157
 
                         
Noncurrent Liabilities
   
     
     
 
Commodity
   
5
     
1
     
6
 
Interest rate
   
116
     
     
116
 
                         
Total noncurrent derivative liabilities
(4)
   
121
     
1
     
122
 
                         
Total derivative liabilities
  $
             166
    $
             113
    $
             279
 
                         
(1)
Current derivative assets are presented in other current assets in Dominion Energy’s Consolidated Balance Sheets.
(2)
Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy’s Consolidated Balance Sheets.
(3)
Current derivative liabilities are presented in other current liabilities in Dominion Energy’s Consolidated Balance Sheets.
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy’s 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 Dominion Energy’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income.
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)
            
 
                   
(millions)
 
   
   
 
                         
Three Months Ended June 30, 2019
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Commodity:
   
     
     
 
                         
Operating revenue
 
 
 
 
$
38
 
 
 
 
                         
                         
Total commodity
 
$
35
 
 
$
38
 
 
$
 
                         
                         
Interest rate
(3)
 
 
(142
)
 
 
(13
)
 
 
(131
)
                         
Foreign currency
(4)
 
 
2
 
 
 
4
 
 
 
 
                         
                         
Total
 
$
(105
)
 
$
29
 
 
$
(131
)
                         
                         
Three Months Ended June 30, 2018
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Commodity:
   
     
     
 
                         
Operating revenue
   
    $
(16
)    
 
                         
                         
Total commodity
  $
(39
)   $
(16
)   $
 
                         
                         
Interest rate
(3)
   
9
     
(12
)    
25
 
                         
Foreign currency
(4)
   
(14
)    
(16
)    
 
                         
                         
Total
  $
(44
)   $
(44
)   $
25
 
                         
                         
Six Months Ended June 30, 2019
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Commodity:
   
     
     
 
                         
Operating revenue
 
 
 
 
$
92
 
 
 
 
                         
Purchased gas
 
 
 
 
 
3
 
 
 
 
                         
                         
Total commodity
 
$
101
 
 
$
                         95
 
 
$
                         —
 
                         
                         
Interest rate
(3)
 
 
(226
)
 
 
(23
)
 
 
(215
)
                         
Foreign currency
(4)
 
 
(9
)
 
 
(2
)
 
 
 
                         
                         
Total
 
$
(134
)
 
$
70
 
 
$
(215
)
                         
                         
Six Months Ended June 30, 2018
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Commodity:
 
 
 
 
 
 
 
 
 
                         
Operating revenue
   
    $
(28
)    
 
                         
Purchased gas
   
     
(2
)    
 
                         
Electric fuel and other energy-related purchases
   
     
7
     
 
                         
                         
Total commodity
  $
58
    $
(23
)   $
 
                         
                         
Interest rate
(3)
   
47
     
(24
)    
93
 
                         
Foreign currency
(4)
   
(1
)    
(8
)    
 
                         
                         
Total
  $
                         104
    $
(55
)   $
93
 
                         
(1)
Amounts deferred into AOCI have no associated effect in Dominion Energy’s 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 Dominion Energy’s Consolidated Statements of Income.
(3)
Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.
(4)
Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in other income.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
Derivatives not designated as hedging instruments
 
Amount of Gain (Loss) Recognized
in Income on Derivatives
(1)
 
             
 
Three Months Ended
   
Six Months Ended
 
             
 
June 30,
   
June 30,
 
 
2019
 
 
2018
   
2019
 
 
2018
 
(millions)
 
   
   
   
 
                                 
Derivative type and location of gains (losses):
   
     
     
     
 
                                 
Commodity:
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Operating revenue
 
$
27
 
  $
(9
)  
$
30
 
  $
(3
)
                                 
Purchased gas
 
 
(11
)
   
            4
   
 
(8
)
   
            4
 
                                 
Electric fuel and other energy-related purchases
 
 
(3
)
   
(3
)  
 
(12
)
   
(16
)
                                 
                                 
Total
 
$
             13
 
  $
(8
)  
$
             10
 
  $
(15
)
                                 
(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.
Virginia Electric and Power Company  
Offsetting Assets
The tables below present Virginia Power’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
                                     
 
 
 
June 30, 2019
   
 
 
 
 
December 31, 2018
   
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
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)
 
   
   
   
   
   
   
   
 
                                                                 
Commodity contracts:
   
     
     
     
     
     
     
     
 
                                                                 
Over-the-counter
 
$
             81
 
 
$
             3
 
 
$
             —
 
 
$
         78
 
  $
             64
    $
             6
    $
             —
    $
         58
 
                                                                 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
 
 
 
 
 
 
 
 
 
 
   
3
     
     
     
3
 
                                                                 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
81
 
 
$
3
 
 
$
 
 
$
78
 
  $
67
    $
6
    $
    $
61
 
                                                                 
(1)
Excludes $
2
 million and $
26
 million of derivative assets at June 30, 2019 and December 31, 2018, respectively, which are not subject to master netting or similar arrangements.
Offsetting Liabilities
                                     
 
 
 
June 30, 2019
   
 
 
   
December 31, 2018
   
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
   
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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Commodity contracts:
   
     
     
     
     
     
     
     
 
                                                                 
Over-the-counter
 
$
3
 
 
$
3
 
 
$
 
 
$
 
  $
6
    $
6
    $
    $
 
                                                                 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
   
     
     
     
 
                                                                 
Over-the-counter
 
 
            332
 
 
 
            —
 
 
 
            —
 
 
 
        332
 
   
        88
     
        —
     
        —
     
        88
 
                                                                 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
335
 
 
$
3
 
 
$
 
 
$
332
 
  $
94
    $
6
    $
    $
88
 
                                                                 
(1)
Excludes $
23
 million and $
9
​​​​​​​ million of derivative liabilities at June 30, 2019 and December 31, 2018, respectively, which are not subject to master netting or similar arrangements.
Schedule of Volume of Derivative Activity
The following table presents the volume of Virginia Power’s derivative activity at June 30, 2019. 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.
 
Current
 
 
Noncurrent
 
             
Natural Gas (bcf):
 
   
 
                 
Fixed price
(1)
 
 
39
 
 
 
22
 
                 
Basis
 
 
141
 
 
 
455
 
                 
Electricity (MWh):
 
 
 
 
 
 
                 
FTRs
 
 
104,772,623
 
 
 
 
                 
Interest rate
(2)
 
$
       850,000,000
 
 
$
     1,200,000,000
 
(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 losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at June 30, 2019:
 
AOCI
    
After-Tax
    
 
 
Amounts Expected to be
Reclassified to Earnings
During the Next 12
Months
 After-Tax
 
 
  Maximum Term  
 
                   
(millions)
 
   
   
 
                         
Interest rate
 
$
(30
)
 
$
(1
)
 
 
390
 months
 
                         
                         
Total
 
$
(30
)
 
$
(1
)
 
 
 
                         
Fair Value of Derivatives
The following table presents the fair values of Virginia Power’s derivatives and where they are presented in its Consolidated Balance Sheets:
 
Fair Value –
Derivatives under
Hedge
Accounting
 
 
Fair Value –
Derivatives not under
Hedge
Accounting
 
 
  Total Fair Value  
 
                   
(millions)
 
   
   
 
                   
June 30, 2019
 
   
   
 
                         
ASSETS
   
     
     
 
                         
Current Assets
   
     
     
 
                         
Commodity
 
$
 
 
$
24
 
 
$
24
 
                         
                         
Total current derivative assets
(1)
 
 
 
 
 
24
 
 
 
24
 
                         
                         
Noncurrent Assets
   
     
     
 
                         
Commodity
 
 
 
 
 
59
 
 
 
59
 
                         
                         
Total noncurrent derivative assets
(2)
 
 
 
 
 
59
 
 
 
59
 
                         
                         
Total derivative assets
 
$
 
 
$
83
 
 
$
83
 
                         
                         
LIABILITIES
   
     
     
 
                         
Current Liabilities
   
     
     
 
                         
Commodity
 
$
 
 
$
20
 
 
$
20
 
                         
Interest rate
 
 
104
 
 
 
 
 
 
104
 
                         
                         
Total current derivative liabilities
(3)
 
 
104
 
 
 
20
 
 
 
124
 
                         
                         
Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
                         
Commodity
 
 
 
 
 
6
 
 
 
6
 
                         
Interest rate
 
 
228
 
 
 
 
 
 
228
 
                         
                         
Total noncurrent derivatives liabilities
(4)
 
 
228
 
 
 
6
 
 
 
234
 
                         
                         
Total derivative liabilities
 
$
332
 
 
$
26
 
 
$
358
 
                         
                         
December 31, 2018
   
     
     
 
                         
ASSETS
   
     
     
 
                         
Current Assets
   
     
     
 
                         
Commodity
  $
    $
60
    $
60
 
                         
Interest rate
   
3
     
     
3
 
                         
                         
Total current derivative assets
(1)
   
3
     
60
     
63
 
                         
                         
Noncurrent Assets
   
     
     
 
                         
Commodity
   
     
30
     
30
 
                         
                         
Total noncurrent derivative assets
(2)
   
     
30
     
30
 
                         
                         
Total derivative assets
  $
3
    $
90
    $
93
 
                         
                         
LIABILITIES
   
     
     
 
                         
Current Liabilities
   
     
     
 
                         
Commodity
  $
    $
15
    $
15
 
                         
Interest rate
   
10
     
     
10
 
                         
                         
Total current derivative liabilities
(3)
   
10
     
15
     
25
 
                         
                         
Noncurrent Liabilities
   
     
     
 
                         
Interest rate
   
78
     
     
78
 
                         
                         
Total noncurrent derivatives liabilities
(4)
   
78
     
     
78
 
                         
                         
Total derivative liabilities
  $
88
    $
15
    $
103
 
                         
(1)
Current derivative assets are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.
(2)
Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power’s Consolidated Balance Sheets.
(3)
Current derivative liabilities are presented in other current liabilities in Virginia Power’s Consolidated Balance Sheets.
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s 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 Virginia Power’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:
                         
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)
 
                   
(millions)
 
   
   
 
                         
Three Months Ended June 30, 2019
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Interest rate
(3)
 
$
(15
)
 
$
(1
)
 
$
(133
)
                         
                         
Total
 
$
(15
)
 
$
(1
)
 
$
(133
)
                         
                         
Three Months Ended June 30, 2018
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Interest rate
(3)
  $
2
    $
    $
25
 
                         
                         
Total
  $
2
    $
    $
25
 
                         
                         
Six Months Ended June 30, 2019
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Interest rate
(3)
 
$
(24
)
 
$
(1
)
 
$
(218
)
                         
                         
Total
 
$
(24
)
 
$
(1
)
 
$
(218
)
                         
                         
Six Months Ended June 30, 2018
   
     
     
 
                         
Derivative type and location of gains (losses):
   
     
     
 
                         
Interest rate
(3)
  $
9
    $
    $
93
 
                         
                         
Total
  $
9
    $
    $
93
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Amounts deferred into AOCI have no associated effect in Virginia Power’s 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 Virginia Power’s Consolidated Statements of Income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)
Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in interest and related charges.
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
                                 
Derivatives not designated as hedging instruments
 
Amount of Gain (Loss) Recognized
in Income on Derivatives
(1)
 
             
 
Three Months Ended
   
Six Months Ended
 
             
 
June 30,
   
June 30,
 
 
      2019      
 
 
      2018      
   
      2019      
 
 
      2018      
 
                         
(millions)
 
   
   
   
 
                                 
Derivative type and location of gains (losses):
   
     
     
     
 
                                 
Commodity
(2)
 
$
(3
)
  $
(3
)  
$
(12
)
  $
(3
)
                                 
                                 
Total
 
$
(3
)
  $
(3
)  
$
(12
)
  $
(3
)
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.
 
 
 
 
 
 
 
 
 
 
 
 
Dominion Energy Gas Holdings, LLC  
Offsetting Assets
The tables below present Dominion Energy Gas’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized
in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
 
 
                                     
 
 
 
   
June 30, 2019
   
 
   
 
   
December 31, 2018
   
 
 
 
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
Gross Assets
Presented in the
Consolidated
Balance Sheet
 
 
Financial
Instruments
 
 
Cash
Collateral
Received
 
 
Net
Amounts
 
 
Gross Assets
Presented in the
Consolidated
Balance Sheet
   
Financial
Instruments
   
Cash
Collateral
Received
   
Net
 Amounts 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Over-the-counter
 
$
2
 
 
$
 
 
$
 
 
$
2
 
 
$
3
 
 
$
 
 
$
 
 
$
3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Over-the-counter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Over-the-counter
 
 
14
 
 
 
13
 
 
 
 
 
 
1
 
 
 
26
 
 
 
2
 
 
 
 
 
 
24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives, subject to a master
 
netting
or similar arrangement
 
$
16
 
 
$
13
 
 
$
 
 
$
3
 
 
$
31
 
 
$
2
 
 
$
 
 
$
29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019
   
 
 
 
 
 
 
December 31, 2018
   
 
 
 
 
 
 
 
Gross Amounts Not
Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
 
 
Gross Amounts Not Offset
in the Consolidated
Balance Sheet
   
 
 
 
 
Gross
Liabilities Presented
in the Consolidated
Balance Sheet
 
 
Financial
Instruments
 
 
Cash
Collateral
Paid
 
 
Net
Amounts
 
 
Gross
Liabilities Presented
in the Consolidated
Balance Sheet
   
Financial
Instruments
   
Cash
Collateral
Paid
   
Net
Amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Over-the-counter
 
$
77
 
 
$
13
 
 
$
 
 
$
64
 
 
$
17
 
 
$
 
 
$
 
 
$
17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Over-the-counter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives, subject to a master
 
netting
or similar arrangement
 
$
77
 
 
$
13
 
 
$
 
 
$
64
 
 
$
19
 
 
$
2
 
 
$
 
 
$
17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Volume of Derivative Activity
The following table presents the volume of Dominion Energy Gas’ derivative activity at June 30, 2019. 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.
                 
 
Current
 
 
Noncurrent
 
             
Natural Gas (bcf):
 
 
 
 
                 
Basis
 
 
1
 
 
 
 
                 
NGLs (Gal)
 
 
18,648,000
 
 
 
 
                 
Interest rate
(1)
 
$
     300,000,000
 
 
$
     1,000,000,000
 
                 
Foreign currency
(1)(2)
 
$
 
 
$
280,000,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Maturity is determined based on final settlement period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Euro equivalent volumes are
250,000,000
.
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Energy Gas’ Consolidated Balance Sheet at June 30, 2019:
 
AOCI
      
After-Tax
      
 
 
Amounts Expected
to be Reclassified to
Earnings During the
  Next 12 Months
 After-
  
Tax
 
 
  Maximum Term  
 
                   
(millions)
 
   
   
 
                         
Commodities:
 
 
 
 
 
 
 
 
 
                         
NGLs
 
$
1
 
 
$
1
 
 
 
9 months
 
                         
Interest rate
 
 
(82
)
 
$
(7
)
 
 
306 months
 
                         
Foreign currency
 
 
7
 
 
 
 
 
 
84 months
 
                         
                         
Total
 
$
(74
)
 
$
(6
)
 
 
 
                         
Fair Value of Derivatives
The following tables present the fair values of Dominion Energy Gas’ derivatives and where they are presented in its Consolidated Balance Sheets:
 
Fair Value-
Derivatives
      Under Hedge      
Accounting
 
 
 
 
  Fair
 Value-Derivatives
  
Not Under Hedge
Accounting
 
 
 
 
    Total Fair Value    
 
                               
(millions)
 
   
   
   
   
 
June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity
 
$
2
 
 
 
 
 
$
 
 
 
 
 
$
2
 
                                         
Total current derivative assets
(1)
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
2
 
                                         
Noncurrent Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency
 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
14
 
                                         
Total noncurrent derivative assets
(2)
 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
14
 
                                         
Total derivative assets
 
$
16
 
 
 
 
 
$
 
 
 
 
 
$
16
 
                                         
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
$
34
 
 
 
 
 
$
 
 
 
 
 
$
34
 
                                         
Total current derivative liabilities
(3)
 
 
34
 
 
 
 
 
 
 
 
 
 
 
 
34
 
                                         
Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
43
 
 
 
 
 
 
 
 
 
 
 
 
43
 
                                         
Total noncurrent derivative liabilities
(4)
 
 
43
 
 
 
 
 
 
 
 
 
 
 
 
43
 
                                         
Total derivative liabilities
 
$
77
 
 
 
 
 
$
 
 
 
 
 
$
77
 
                                         
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity
  $
3
     
    $
     
    $
3
 
Interest rate
   
2
     
     
     
     
2
 
                                         
Total current derivative assets
(1)
   
5
     
     
     
     
5
 
                                         
Noncurrent Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency
   
26
     
     
     
     
26
 
                                         
Total noncurrent derivative assets
(2)
   
26
     
     
     
     
26
 
                                         
Total derivative assets
  $
31
     
    $
     
    $
31
 
                                         
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
  $
9
     
    $
     
    $
9
 
Foreign currency
   
2
     
     
     
     
2
 
                                         
Total current derivative liabilities
(3)
   
11
     
     
     
     
11
 
                                         
Noncurrent Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
   
8
     
     
     
     
8
 
                                         
Total noncurrent derivative liabilities
(4)
   
8
     
     
     
     
8
 
                                         
Total derivative liabilities
  $
19
     
    $
     
    $
19
 
                                         
(1)
Current derivative assets include $
2
​​​​​​​ million in other current assets at December 31, 2018, with the remainder recorded in current assets of discontinued operations in Dominion Energy Gas’ Consolidated Balance Sheets. All current derivative assets are included in current assets of discontinued operations of Dominion Energy Gas’ Consolidated Balance Sheets at June 30, 2019.
(2)
Noncurrent derivatives assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.
(3)
Current derivative liabilities are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the gains and losses on Dominion Energy Gas’ derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:
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
 
                 
(millions)
   
     
 
                 
Three Months Ended June 30, 2019
   
     
 
                 
Derivative Type and Location of Gains (Losses):
   
     
 
                 
Commodity:
   
     
 
                 
Net
i
ncome from discontinued operations
 
 
 
 
$
 
                 
                 
Total commodity
 
$
3
 
 
$
 
                 
                 
Interest rate
(2)
 
 
(36
)
 
 
(2
)
                 
Foreign currency
(3)
 
 
1
 
 
 
4
 
                 
                 
Total
 
$
(32
)
 
$
2
 
                 
                 
Three Months Ended June 30, 2018
 
 
 
 
 
 
                 
Derivative Type and Location of Gains (Losses):
   
     
 
                 
Commodity:
   
     
 
                 
Net
i
ncome from discontinued operations
   
    $
(2
)
                 
                 
Total commodity
  $
(10
)   $
(2
)
                 
                 
Interest rate
(2)
   
(3
)    
 
                 
Foreign currency
(3)
   
(14
)    
(16
)
                 
                 
Total
  $
(27
)   $
(18
)
                 
                 
Six Months Ended June 30, 2019
   
     
 
                 
Derivative Type and Location of Gains (Losses):
   
     
 
                 
Commodity:
   
     
 
                 
Net
i
ncome from discontinued operations
 
 
 
 
$
2
 
                 
                 
Total commodity
 
$
2
 
 
$
2
 
                 
                 
Interest rate
(2)
 
 
(60
)
 
 
(1
)
                 
Foreign currency
(3)
 
 
(10
)
 
 
(2
)
                 
                 
Total
 
$
(68
)
 
$
(1
)
                 
                 
Six Months Ended June 30, 2018
 
 
 
 
 
 
                 
Derivative Type and Location of Gains (Losses):
   
     
 
                 
Commodity:
   
     
 
                 
Net
i
ncome from discontinued operations
   
    $
(5
)
                 
                 
Total commodity
  $
(6
)   $
(5
)
                 
                 
Interest rate
(2)
   
(1
)    
(2
)
                 
Foreign currency
(3)
   
(1
)    
(8
)
                 
                 
Total
  $
(8
)   $
(15
)
                 
(1)
Amounts deferred into AOCI have no associated effect in Dominion Energy Gas’ Consolidated Statements of Income.
(2)
Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.
(3)
Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in other income.