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Investments (Tables)
 9 Months Ended
Sep. 30, 2020
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

 

 

Allowance for Credit Losses

 

 

Fair

Value

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,735

 

 

$

2,517

 

 

$

(73

)

 

$

—

 

 

$

4,179

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

569

 

 

 

49

 

 

 

(1

)

 

 

—

 

 

 

617

 

Government securities

 

 

1,128

 

 

 

64

 

 

 

(1

)

 

 

—

 

 

 

1,191

 

Common/collective trust funds

 

 

138

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

142

 

Insurance contracts

 

 

227

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

227

 

Cash equivalents and other(3)

 

 

1

 

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

1

 

Total

 

$

3,798

 

 

$

2,635

 

 

$

(76

)

(4)

$

—

 

(5)

$

6,357

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,807

 

 

$

2,451

 

 

$

(20

)

 

 

 

 

 

$

4,238

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

434

 

 

 

29

 

 

 

—

 

 

 

 

 

 

 

463

 

Government securities

 

 

1,108

 

 

 

39

 

 

 

(2

)

 

 

 

 

 

 

1,145

 

Common/collective trust funds

 

 

115

 

 

 

4

 

 

 

—

 

 

 

 

 

 

 

119

 

Insurance contracts

 

 

214

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

214

 

Cash equivalents and other(3)

 

 

13

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

13

 

Total

 

$

3,691

 

 

$

2,523

 

 

$

(22

)

(4)

 

 

 

 

$

6,192

 

 

(1)

Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Effective January 2020, changes in allowance for credit losses are included in other income.

(3)

Includes pending purchases of securities of $36 million and $1 million at September 30, 2020 and December 31, 2019, respectively.

(4)

The fair value of securities in an unrealized loss position was $523 million and $298 million at September 30, 2020 and December 31, 2019, respectively.

(5)

The allowance for credit losses associated with fixed income securities decreased from March 31, 2020 by $21 million. These recoveries are a result of improvements in credit spreads experienced in the market between March 31, 2020 and June 30, 2020. There were no further changes in the allowance for credit losses between June 30, 2020 and September 30, 2020.     
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:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains recognized during the period

 

$

308

 

 

$

40

 

 

$

20

 

 

$

610

 

Less: Net gains recognized during the period

   on securities sold during the period

 

 

(15

)

 

 

(17

)

 

 

(6

)

 

 

(61

)

Unrealized gains recognized during the period

   on securities still held at September 30, 2020 and 2019(1)

 

$

293

 

 

$

23

 

 

$

14

 

 

$

549

 

 

(1)

Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date

The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2020 by contractual maturity is as follows:

 

 

 

Amount

 

(millions)

 

 

 

 

Due in one year or less

 

$

194

 

Due after one year through five years

 

 

503

 

Due after five years through ten years

 

 

485

 

Due after ten years

 

 

768

 

Total

 

$

1,950

 

 
Marketable Securities

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

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

1,208

 

 

$

429

 

 

$

2,868

 

 

$

1,311

 

Realized gains(1)

 

 

48

 

 

 

53

 

 

 

188

 

 

 

152

 

Realized losses(1)

 

 

29

 

 

 

25

 

 

 

159

 

 

 

75

 

 

(1)

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

 

 

Allowance for Credit Losses

 

 

Fair

Value

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

919

 

 

$

1,161

 

 

$

(48

)

 

$

—

 

 

$

2,032

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

324

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

352

 

Government securities

 

 

463

 

 

 

23

 

 

 

(1

)

 

 

—

 

 

 

485

 

Common/collective trust funds

 

 

45

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

45

 

Cash equivalents and other(3)

 

 

19

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19

 

Total

 

$

1,770

 

 

$

1,212

 

 

$

(49

)

(4)

$

—

 

(5)

$

2,933

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

894

 

 

$

1,144

 

 

$

(11

)

 

 

 

 

 

$

2,027

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

241

 

 

 

15

 

 

 

—

 

 

 

 

 

 

 

256

 

Government securities

 

 

534

 

 

 

14

 

 

 

(2

)

 

 

 

 

 

 

546

 

Common/collective trust funds

 

 

51

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

51

 

Cash equivalents and other

 

 

1

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

1

 

Total

 

$

1,721

 

 

$

1,173

 

 

$

(13

)

(4)

 

 

 

 

$

2,881

 

 

(1)

Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Effective January 2020, changes in allowance for credit losses are included in other income.

(3)

Includes pending sales of securities of $5 million at September 30, 2020.

(4)

The fair value of securities in an unrealized loss position was $283 million and $185 million at September 30, 2020 and December 31, 2019, respectively.

(5)

The allowance for credit losses associated with fixed income securities decreased from March 31, 2020 by $12 million. These recoveries are a result of improvements in credit spreads experienced in the market between March 31, 2020 and June 30, 2020. There were no further changes in the allowance for credit losses between June 30, 2020 and September 30, 2020.  
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,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) recognized during the period

 

$

138

 

 

$

30

 

 

$

(16

)

 

$

286

 

Less: Net gains recognized during the period

   on securities sold during the period

 

 

(6

)

 

 

(7

)

 

 

(3

)

 

 

(15

)

Unrealized gains (losses) recognized during the period

   on securities still held at September 30, 2020 and 2019(1)

 

$

132

 

 

$

23

 

 

$

(19

)

 

$

271

 

 

(1)

Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date

The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at September 30, 2020 by contractual maturity is as follows:

 

 

 

Amount

 

(millions)

 

 

 

 

Due in one year or less

 

$

66

 

Due after one year through five years

 

 

234

 

Due after five years through ten years

 

 

268

 

Due after ten years

 

 

314

 

Total

 

$

882

 

 
Marketable Securities

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

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

164

 

 

$

230

 

 

$

694

 

 

$

677

 

Realized gains(1)

 

 

18

 

 

 

21

 

 

 

73

 

 

 

46

 

Realized losses(1)

 

 

10

 

 

 

6

 

 

 

58

 

 

 

18

 

 

(1)

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