Investments (Tables)

9 Months Ended

Sep. 30, 2018

Equity and Debt Securities and Cash Equivalents and Cost Method Investments in Decommissioning Trust Funds

Dominion Energy’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Fair Value
(millions)
September 30, 2018
Equity securities:⁽¹⁾
U.S.	$	1,710	$	2,128	$	(10	)		$	3,828
Fixed income securities:⁽²⁾
Corporate debt instruments		438		6		(7	)			437
Government securities		1,079		10		(19	)			1,070
Common/collective trust funds		82		—		—				82
Cash equivalents and other⁽³⁾		7		—		—				7
Total	$	3,316	$	2,144	$	(36	)	⁽⁴⁾	$	5,424
December 31, 2017
Equity securities:⁽²⁾
U.S.	$	1,569	$	1,857	$	—			$	3,426
Fixed income securities:⁽²⁾
Corporate debt instruments		430		15		(1	)			444
Government securities		1,039		27		(5	)			1,061
Common/collective trust funds		60		—		—				60
Cost method investments		68		—		—				68
Cash equivalents and other⁽³⁾		34		—		—				34
Total	$	3,200	$	1,899	$	(6	)	⁽⁴⁾	$	5,093

(1)

Effective January 2018, unrealized gains and losses on equity securities, including those previously classified as cost method investments, are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(2)

Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(3)

Includes pending sales of securities of $ — million and $5 million at September 30, 2018 and December 31, 2017, respectively.

(4)

The fair value of securities in an unrealized loss position was $1.1 billion and $565 million at September 30, 2018 and December 31, 2017, respectively.

Unrealized Gain Loss on Equity

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

(millions)	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Net gains recognized during the period	$	243		$	267
Less: Net gains recognized during the period on securities sold during the period		(7	)		(42	)
Unrealized gains recognized during the period on securities still held at September 30, 2018⁽¹⁾	$	236		$	225

(1)	Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

Investments Classified by Contractual Maturity Date

The fair value of Dominion Energy’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	199
Due after one year through five years		344
Due after five years through ten years		389
Due after ten years		657
Total	$	1,589

Marketable Securities

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
(millions)
Proceeds from sales	$	457	$	377	$	1,301	$	1,496
Realized gains⁽¹⁾		24		25		96		142
Realized losses⁽¹⁾		18		16		60		52

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

Other-Than-Temporary Impairment Losses

Dominion Energy recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
(millions)
Total other-than-temporary impairment losses⁽¹⁾	$	8		$	7		$	25		$	33
Losses recorded to the nuclear decommissioning trust regulatory liability		—			(2	)		—			(13	)
Losses recognized in other comprehensive income (before taxes)		(8	)		(1	)		(25	)		(2	)
Net impairment losses recognized in earnings	$	—		$	4		$	—		$	18

Virginia Electric and Power Company

Equity and Debt Securities and Cash Equivalents and Cost Method Investments in Decommissioning Trust Funds

Virginia Power’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Fair Value
(millions)
September 30, 2018
Equity securities:⁽¹⁾
U.S.	$	842	$	965	$	(6	)		$	1,801
Fixed income securities:⁽²⁾
Corporate debt instruments		220		2		(4	)			218
Government securities		509		4		(8	)			505
Common/collective trust funds		48		—		—				48
Cash equivalents and other⁽³⁾		1		—		—				1
Total	$	1,620	$	971	$	(18	)	⁽⁴⁾	$	2,573
December 31, 2017
Equity securities:⁽²⁾
U.S.	$	734	$	831	$	—			$	1,565
Fixed income securities:⁽²⁾
Corporate debt instruments		216		8		—				224
Government securities		482		13		(2	)			493
Common/collective trust funds		27		—		—				27
Cost method investments		68		—		—				68
Cash equivalents and other⁽³⁾		22		—		—				22
Total	$	1,549	$	852	$	(2	)	⁽⁴⁾	$	2,399

(1)

(2)

Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(3)

Includes pending sales of securities of $1 million and $6 million at September 30, 2018 and December 31, 2017, respectively.

(4)

The fair value of securities in an unrealized loss position was $539 million and $234 million at September 30, 2018 and December 31, 2017, respectively.

Unrealized Gain Loss on Equity

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

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
(millions)
Net gains recognized during the period	$	106		$	118
Less: Net gains recognized during the period on securities sold during the period		(3	)		(26	)
Unrealized gains recognized during the period on securities still held at September 30, 2018⁽¹⁾	$	103		$	92

(1)

Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

Investments Classified by Contractual Maturity Date

The fair value of Virginia Power’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	64
Due after one year through five years		139
Due after five years through ten years		221
Due after ten years		347
Total	$	771

Marketable Securities

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
(millions)
Proceeds from sales	$	237	$	156	$	651	$	654
Realized gains⁽¹⁾		11		9		44		64
Realized losses⁽¹⁾		5		6		17		24

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