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Derivatives and Hedge Accounting Activities (Tables)

3 Months Ended

Mar. 31, 2020

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:

	March 31, 2020								December 31, 2019
	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	$	55	$	3	$	—	$	52	$	35	$	21	$	—	$	14
Exchange		64		16		34		14		37		21		—		16
Interest rate contracts:
Over-the-counter		29		21		—		8		11		3		—		8
Foreign currency contracts:
Over-the-counter		—		—		—		—		8		8		—		—
Total derivatives, subject to a master netting or similar arrangement	$	148	$	40	$	34	$	74	$	91	$	53	$	—	$	38

(1)	Excludes $2 million and $2 million of derivative assets at March 31, 2020 and December 31, 2019, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	March 31, 2020								December 31, 2019
	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	$	27	$	3	$	1	$	23	$	105	$	21	$	—	$	84
Exchange		16		16		—		—		21		21		—		—
Interest rate contracts:
Over-the-counter		1,580		21		23		1,536		606		8		35		563
Foreign currency contracts:
Over-the-counter		17		—		—		17		3		3		—		—
Total derivatives, subject to a master netting or similar arrangement	$	1,640	$	40	$	24	$	1,576	$	735	$	53	$	35	$	647

(1)	Excludes $6 million and $5 million of derivative liabilities at March 31, 2020 and December 31, 2019, 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 March 31, 2020. 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⁾		81		36
Basis		268		574
Electricity (MWh):
Fixed price		3,088,875		—
FTRs		18,836,472		—
Liquids (Gal)⁽²⁾		39,690,000		—
Interest rate⁽³⁾	$	2,450,000,000	$	5,582,850,761
Foreign currency⁽³⁾	€	-	€	250,000,000

(1)	Includes options.

(2)	Includes NGLs.

(3)	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 gains (losses) on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at March 31, 2020:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Commodities:
Gas	$	(2	)	$	(2	)	21 months
Electricity		14			14		9 months
NGL		1			1		9 months
Interest rate		(655	)		(50	)	381 months
Foreign currency		(9	)		(1	)	75 months
Total	$	(651	)	$	(38	)

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⁾
	March 31, 2020			December 31, 2019			March 31, 2020			December 31, 2019
(millions)
Long-term debt	$	(1,154	)	$	(1,154	)	$	(4	)	$	(4	)

(1)	Includes $(1.1) billion and $(397) million related to discontinued hedging relationships at March 31, 2020 and December 31, 2019, respectively.

(2)	Includes $(4) million and $3 million of hedging adjustments on discontinued hedging relationships at March 31, 2020 and December 31, 2019, 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)
March 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	80	$	80
Interest rate		—		11		11
Total current derivative assets⁽¹⁾		—		91		91
Noncurrent Assets
Commodity		—		41		41
Interest rate		—		18		18
Total noncurrent derivative assets⁽²⁾		—		59		59
Total derivative assets	$	—	$	150	$	150
LIABILITIES
Current Liabilities
Commodity	$	—	$	45	$	45
Interest rate		515		232		747
Foreign currency		1		—		1
Total current derivative liabilities		516		277		793
Noncurrent Liabilities
Commodity		—		4		4
Interest rate		722		111		833
Foreign currency		16		—		16
Total noncurrent derivative liabilities		738		115		853
Total derivative liabilities	$	1,254	$	392	$	1,646
December 31, 2019
ASSETS
Current Assets
Commodity	$	30	$	37	$	67
Interest rate		1		—		1
Total current derivative assets⁽¹⁾		31		37		68
Noncurrent Assets
Commodity		1		6		7
Interest rate		10		—		10
Foreign currency		8		—		8
Total noncurrent derivative assets⁽²⁾		19		6		25
Total derivative assets	$	50	$	43	$	93
LIABILITIES
Current Liabilities
Commodity	$	6	$	77	$	83
Interest rate		321		1		322
Foreign currency		3		—		3
Total current derivative liabilities		330		78		408
Noncurrent Liabilities
Commodity		1		47		48
Interest rate		267		17		284
Total noncurrent derivative liabilities		268		64		332
Total derivative liabilities	$	598	$	142	$	740

(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.

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 March 31, 2020
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	7
Purchased gas					(3	)
Total commodity	$	—		$	4		$	—
Interest rate⁽³⁾		(336	)		(27	)		(563	)
Foreign currency⁽⁴⁾		(23	)		(6	)		—
Total	$	(359	)	$	(29	)	$	(563	)
Three Months Ended March 31, 2019
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	54
Purchased gas					3
Total commodity	$	66		$	57		$	—
Interest rate⁽³⁾		(84	)		(10	)		(84	)
Foreign currency⁽⁴⁾		(11	)		(6	)		—
Total	$	(29	)	$	41		$	(84	)

(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 (expense).

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
	March 31,
	2020			2019
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	65		$	3
Purchased gas		(14	)		3
Electric fuel and other energy-related purchases		(65	)		(9	)
Interest rate⁽²⁾		(61	)		—
Total	$	(75	)	$	(3	)

(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.

(2)	Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.

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:

	March 31, 2020								December 31, 2019
	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	$	48	$	1	$	—	$	47	$	19	$	18	$	—	$	1
Interest rate contracts:
Over-the-counter		—		—		—		—		2		—		—		2
Total derivatives, subject to a master netting or similar arrangement	$	48	$	1	$	—	$	47	$	21	$	18	$	—	$	3

(1)	Excludes $3 million and $3 million of derivative assets at March 31, 2020 and December 31, 2019, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	March 31, 2020								December 31, 2019
	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	$	4	$	1	$	1	$	2	$	59	$	18	$	—	$	41
Interest rate contracts:
Over-the-counter		991		—		—		991		363		—		—		363
Total derivatives, subject to a master netting or similar arrangement	$	995	$	1	$	1	$	993	$	422	$	18	$	—	$	404

(1)	Excludes $20 million and $44 million of derivative liabilities at March 31, 2020 and December 31, 2019, 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 March 31, 2020. 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⁾		37		14
Basis		160		536
Electricity (MWh):
FTRs		18,836,472		—
Interest rate⁽²⁾	$	900,000,000	$	1,150,000,000

(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 gains (losses) on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at March 31, 2020:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(79	)	$	(1	)	381 months
Total	$	(79	)	$	(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)
March 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	14	$	14
Total current derivative assets⁽¹⁾		—		14		14
Noncurrent Assets
Commodity		—		37		37
Total noncurrent derivative assets⁽²⁾		—		37		37
Total derivative assets	$	—	$	51	$	51
LIABILITIES
Current Liabilities
Commodity	$	—	$	23	$	23
Interest rate		458		—		458
Total current derivative liabilities		458		23		481
Noncurrent Liabilities
Commodity		—	1			1
Interest rate		533		—		533
Total noncurrent derivatives liabilities⁽³⁾		533		1		534
Total derivative liabilities	$	991	$	24	$	1,015
December 31, 2019
ASSETS
Current Assets
Commodity	$	—	$	20	$	20
Total current derivative assets⁽¹⁾		—		20		20
Noncurrent Assets
Commodity		—		2		2
Interest rate		2		—		2
Total noncurrent derivative assets⁽²⁾		2		2		4
Total derivative assets	$	2	$	22	$	24
LIABILITIES
Current Liabilities
Commodity	$	—	$	58	$	58
Interest rate		185		—		185
Total current derivative liabilities		185		58		243
Noncurrent Liabilities
Commodity		—		45		45
Interest rate		178		—		178
Total noncurrent derivatives liabilities⁽³⁾		178		45		223
Total derivative liabilities	$	363	$	103	$	466

(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)	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 March 31, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(61	)	$	—	$	(565	)
Total	$	(61	)	$	—	$	(565	)
Three Months Ended March 31, 2019
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(9	)	$	—	$	(84	)
Total	$	(9	)	$	—	$	(84	)

(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
	March 31,
	2020			2019
(millions)
Derivative type and location of gains (losses):
Commodity⁽²⁾	$	(65	)	$	(9	)
Total	$	(65	)	$	(9	)

(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:

	March 31, 2020								December 31, 2019
	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)
Foreign currency contracts:
Over-the-counter	$	—	$	—	$	—	$	—	$	8	$	8	$	—	$	—
Total derivatives, subject to a master netting or similar arrangement	$	—	$	—	$	—	$	—	$	8	$	8	$	—	$	—

Offsetting Liabilities

	March 31, 2020								December 31, 2019
	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	$	190	$	—	$	—	$	190	$	83	$	5	$	—	$	78
Foreign currency contracts:
Over-the-counter		17		—		—		17		3		3		—		—
Total derivatives, subject to a master netting or similar arrangement	$	207	$	—	$	—	$	207	$	86	$	8	$	—	$	78

Schedule of Volume of Derivative Activity

The following table presents the volume of Dominion Energy Gas’ derivative activity at March 31, 2020. 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
Interest rate⁽¹⁾	$	250,000,000	$	1,050,000,000
Foreign currency⁽¹⁾	€	-	€	250,000,000

(1)	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 gains (losses) on cash flow hedges included in AOCI in Dominion Energy Gas’ Consolidated Balance Sheet at March 31, 2020:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(157	)	$	(11	)	297 months
Foreign currency		(9	)		(1	)	75 months
Total	$	(166	)	$	(12	)

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)
March 31, 2020
LIABILITIES
Current Liabilities
Interest rate	$	57	$	11	$	68
Foreign currency		1		—		1
Total current derivative liabilities⁽²⁾		58		11		69
Noncurrent Liabilities
Interest rate		119		3		122
Foreign currency		16		—		16
Total noncurrent derivative liabilities⁽³⁾		135		3		138
Total derivative liabilities	$	193	$	14	$	207
December 31, 2019
ASSETS
Noncurrent Assets
Foreign currency	$	8	$	—	$	8
Total noncurrent derivative assets⁽¹⁾		8		—		8
Total derivative assets	$	8	$	—	$	8
LIABILITIES
Current Liabilities
Interest rate	$	30	$	—	$	30
Foreign currency		3		—		3
Total current derivative liabilities⁽²⁾		33		—		33
Noncurrent Liabilities
Interest rate		53		—		53
Total noncurrent derivative liabilities⁽³⁾		53		—		53
Total derivative liabilities	$	86	$	—	$	86

(1)	Noncurrent derivatives assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.

(2)	Current derivative liabilities are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.

(3)	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 March 31, 2020
Derivative Type and Location of Gains (Losses):
Interest rate⁽²⁾	$	(100	)	$	(2	)
Foreign currency⁽³⁾		(23	)		(6	)
Total	$	(123	)	$	(8	)
Three Months Ended March 31, 2019
Derivative Type and Location of Gains (Losses):
Commodity:
Net income from discontinued operations				$	2
Total commodity	$	(1	)	$	2
Interest rate⁽²⁾		(24	)		1
Foreign currency⁽³⁾		(11	)		(6	)
Total	$	(36	)	$	(3	)

(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.

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
	Three Months Ended
	March 31,
	2020			2019
(millions)
Derivative type and location of gains (losses):
Interest rate⁽¹⁾	$	(8	)	$	—
Total	$	(8	)	$	—

(1)	Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.