Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

NOTE 10. PROPERTY, PLANT AND EQUIPMENT

Major classes of property, plant and equipment and their respective balances for the Companies are as follows:

At December 31,	2020		2019
(millions)
Dominion Energy
Utility:
Generation	$	22,697	$	25,317
Transmission		14,351		13,472
Distribution		27,311		25,746
Storage		436		428
Nuclear fuel		2,283		2,296
General and other		4,130		3,978
Plant under construction		3,350		2,377
Total utility		74,558		73,614
Non-jurisdictional - including plant under construction		1,225		854
Nonutility:
Nonregulated generation-nuclear		1,736		1,652
Nonregulated generation-other		3,268		3,985
Nuclear fuel		1,012		930
Other-including plant under construction		1,160		1,008
Total nonutility		7,176		7,575
Total property, plant and equipment	$	82,959	$	82,043
Virginia Power
Utility:
Generation	$	16,769	$	19,552
Transmission		11,000		10,229
Distribution		12,839		12,095
Nuclear fuel		1,709		1,688
General and other		845		825
Plant under construction		2,338		1,784
Total utility		45,500		46,173
Non-jurisdictional - including plant under construction		1,225		854
Other		11		11
Total property, plant and equipment	$	46,736	$	47,038

Jointly-Owned Power Stations

The Companies proportionate share of jointly-owned power stations at December 31, 2020 is as follows:

	Bath County Pumped Storage Station(1)			North Anna Units 1 and 2(1)			Clover Power Station(1)			Millstone Unit 3(2)			Summer Unit 1 (2)
(millions, except percentages)
Ownership interest		60	%		88.4	%		50	%		93.5	%		66.7	%
Plant in service		1,064			2,587			609			1,292			1,519
Accumulated depreciation		(688	)		(1,359	)		(260	)		(482	)		(676	)
Nuclear fuel		—			793			—			573			575
Accumulated amortization of nuclear fuel		—			(661	)		—			(444	)		(354	)
Plant under construction		3			158			1			78			61

(1) Units jointly owned by Virginia Power.

(2) Unit jointly owned by Dominion Energy.

The co-owners are obligated to pay their share of all future construction expenditures and operating costs of the jointly-owned facilities in the same proportion as their respective ownership interest. The Companies report their share of operating costs in the appropriate operating expense (electric fuel and other energy-related purchases, other operations and maintenance, depreciation, depletion and amortization and other taxes, etc.) in the Consolidated Statements of Income.

Sale of Certain Retail Energy Marketing Assets

In October 2017, Dominion Energy entered into an agreement to sell certain assets associated with its nonregulated retail energy marketing operations. The first phase of the agreement closed in December 2017. Dominion Energy closed the second phase of the agreement in October 2018 for $63 million, which resulted in the recognition of a $65 million ($49 million after-tax) benefit included in gains on sales of assets in Dominion Energy’s Consolidated Statements of Income. Pursuant to the agreement, Dominion Energy entered into a commission agreement with the buyer upon the first closing in December 2017 under which the buyer will pay a commission in connection with the right to use Dominion Energy’s brand in marketing materials and other services over a ten-year term.

Sale of Certain Nonregulated Generation Facilities

In December 2018, Dominion Energy completed the sale of Fairless and Manchester for total consideration of $1.2 billion, subject to customary closing adjustments. Dominion Energy recognized a gain of $210 million ($198 million after-tax) included in gains on sales of assets in Dominion Energy’s Consolidated Statements of Income. The after-tax gain reflects Dominion Energy’s assessment and more-likely-than-not conclusion that the utilization of state tax incentives will reduce the income tax expense associated with the sale of these facilities.

Acquisition of Solar Projects

The following table presents acquisitions by Virginia Power of solar projects. Virginia Power has claimed or expects to claim federal investment tax credits on the projects.

Date Agreement Entered	Date Agreement Closed	Project Location	Project Name	Project Cost (millions)(1)		Date of Commercial Operations	MW Capacity
September 2017	October 2018	North Carolina	Pecan	$	140	December 2018		75
September 2017	June 2019	North Carolina	Gutenberg		142	September 2019		80
June 2018	February 2019	Virginia	Gloucester		37	April 2019		20
August 2018	May 2019	Virginia	Grasshopper		128	October 2020		80
August 2018	May 2019	North Carolina	Chestnut		127	January 2020		75
June 2019	June 2019	Virginia	Ft. Powhatan		270	Expected 2021		150
June 2019	August 2019	Virginia	Belcher		165	Expected 2021		88
August 2019	November 2019	Virginia	Bedford		110	Expected 2021		70
October 2019	October 2019	Virginia	Maplewood		185	Expected 2022		120
December 2019	January 2020	Virginia	Rochambeau		35	Expected 2021		20
May 2020	May 2020	Virginia	Pumpkinseed		130	Expected 2022		60

(1) Includes acquisition costs.

The following table presents acquisitions by Dominion Energy of solar projects. Dominion Energy has claimed or expects to claim federal investment tax credits on the projects.

Date Agreement Entered	Date Agreement Closed	Project Location	Project Name	Project Cost (millions)(1)		Date of Commercial Operations	MW Capacity
August 2019	August 2019	Virginia	Greensville	$	127	December 2020		80
August 2019	August 2019	Virginia	Myrtle		32	June 2020		15
September 2019	September 2019	South Carolina	Seabrook		103	December 2019		72
November 2019	November 2019	North Carolina	Wilkinson		153	December 2019		74
May 2020	May 2020	South Carolina	Blackville		12	December 2020		7
May 2020	May 2020	South Carolina	Denmark		14	December 2020		6
May 2020	August 2020	South Carolina	Yemassee		17	January 2021		10
May 2020	October 2020	South Carolina	Trask		25	Expected 2021		12
June 2020	June 2020	Ohio	Hardin I		240	Split(2)		150
July 2020	July 2020	Virginia	Madison		125	Expected 2022		62
August 2020	Expected 2022	Ohio	Hardin II		295	Expected 2023		150

(1) Includes acquisition costs.

(2) In December 2020 and January 2021, 97 MW and 53 MW of the project commenced commercial operations, respectively.

In addition to the facilities discussed above, Dominion Energy has also entered into various agreements to install solar facilities, primarily at schools in Virginia, with in-service dates in 2020 or 2021. Through February 2021, Dominion Energy anticipates a total projected cost of approximately $61 million under these agreements with an associated aggregate generation capacity of 30 MW. Dominion Energy has claimed or expects to claim federal investment tax credits on the projects.

Acquisition of Gathering and Processing Assets

In March 2020, Wexpro closed on an agreement with a natural gas gathering systems operator to purchase existing natural gas gathering systems including pipelines, compressors and dehydration equipment for total consideration of $38 million. These facilities gather natural gas in Colorado, Utah and Wyoming.

Non-Wholly-Owned Nonregulated Solar Facilities

In the third quarter of 2020, Dominion Energy performed a strategic review of its long-term intentions for its contracted nonregulated solar generation assets in partnerships outside of its core electric service territories in consideration of the impact of the VCEA and Dominion Energy’s decision to sell substantially all of its gas transmission and storage operations. Based on an evaluation of Dominion Energy’s interests in these long-lived assets for recoverability under a probability weighted approach, Dominion Energy determined the assets were impaired. As a result of this evaluation, Dominion Energy recorded a charge of $665 million ($293 million after-tax attributable to Dominion Energy and $267 million attributable to noncontrolling interest) in impairment of assets and other charges in its Consolidated Statements of Income (reflected in the Corporate and Other segment) for the year ended December 31, 2020 to adjust the property, plant and equipment down to its estimated fair value of $1.4 billion. The fair value was estimated using an income approach. The valuation is considered a Level 3 fair value measurement due to the use of significant judgmental and unobservable inputs, including projected timing and amount of future cash flows and discount rates reflecting risks inherent in the future cash flows and market prices.