Long-Term Debt

12 Months Ended

Dec. 31, 2020

NOTE 18. LONG-TERM DEBT

At December 31,	2020 Weighted- average Coupon⁽¹⁾			2020			2019
(millions, except percentages)
Virginia Electric and Power Company:
Unsecured Senior Notes:
2.45% to 8.875%, due 2022 to 2050		4.14	%	$	12,689		$	11,789
Tax-Exempt Financings⁽²⁾:
0.45% to 1.90%, due 2032 to 2041		1.14	%		625			625
Virginia Electric and Power Company total principal				$	13,314		$	12,414
Securities due within one year					—			(1	)
Unamortized discount, premium and debt issuances costs, net					(107	)		(88	)
Derivative restructuring					444			—
Finance leases					36			16
Virginia Electric and Power Company total long-term debt				$	13,687		$	12,341
Dominion Energy, Inc.:
Supplemental 364-Day credit facility, variable rate, due 2021		1.18	%	$	225		$	—
Unsecured Senior Notes:
Variable rates, due 2020 and 2023		0.75	%		1,000			300
2.0% to 7.0%, due 2021 to 2049⁽³⁾		3.98	%		9,938			7,688
Unsecured Junior Subordinated Notes:
2.579% to 4.104%, due 2020 to 2024⁽⁴⁾		3.23	%		1,950			2,950
Payable to Affiliated Trust, 8.4%, due 2031		8.40	%		10			10
Enhanced Junior Subordinated Notes:
Variable rates, due 2066⁽⁵⁾					—			397
5.25% and 5.75%, due 2054 and 2076		5.48	%		1,485			1,485
Questar Gas, Unsecured Senior Notes, 2.98% to 7.20%, due 2024 to 2051		4.25	%		750			750
East Ohio, Unsecured Senior Notes, 1.30% to 3.00%, due 2025 to 2050		2.25	%		1,800			—
SCANA:
Unsecured Medium Term Notes, 4.125% to 6.25%, due 2020 to 2022⁽⁶⁾					—			508
Unsecured Senior Notes, variable rate, due 2034 ⁽⁷⁾					—			66
PSNC, Senior Debentures and Notes, 4.05% to 7.45%, due 2020 to 2047		4.62	%		800			700
DESC:
First Mortgage Bonds, 3.22% to 6.625%, due 2021 to 2065		5.42	%		3,267			3,267
Tax-Exempt Financings⁽⁸⁾:
Variable rate due 2038		0.13	%		35			35
GENCO, variable rate due 2038		0.13	%		33			33
3.625% and 4.00%, due 2028 and 2033		3.90	%		54			54
Other		3.67	%		1			1
Secured Senior Notes, 4.82%, due 2042⁽⁹⁾		4.82	%		331			345
Term Loans, variable rates, due 2023 and 2024⁽⁹⁾		2.55	%		476			527
Tax-Exempt Financing, 1.7% due 2033		1.70	%		27			27
Virginia Electric and Power Company total principal (from above)					13,314			12,414
Dominion Energy, Inc. total principal⁽¹⁰⁾				$	35,496		$	31,557
Fair value hedge valuation⁽¹¹⁾					3			4
Securities due within one year⁽¹²⁾		3.14	%		(1,905	)		(2,435	)
Supplemental 364-Day credit facility borrowings					(225	)		—
Unamortized discount, premium and debt issuance costs, net					(293	)		(228	)
Derivative restructuring					773			—
Finance leases					108			100
Dominion Energy, Inc. total long-term debt				$	33,957		$	28,998

(1)	Represents weighted-average coupon rates for debt outstanding as of December 31, 2020.

(2)	These financings relate to certain pollution control equipment at Virginia Power’s generating facilities.

(3)	Includes debt assumed by Dominion Energy from the merger of its former CNG subsidiary.

(4)	In April 2020, Dominion Energy purchased and canceled $7 million of its 2.579% junior subordinated notes that mature in July 2020. In June 2020, Dominion Energy prepaid the remaining balance of $993 million.

(5)

In February 2020, Dominion Energy purchased and cancelled the remaining $111 million and $286 million of its June 2006 hybrids and September 2006 hybrids, respectively, both of which would have otherwise matured in 2066. As such, these borrowings are presented within securities due within one year in Dominion Energy’s Consolidated Balance Sheets at December 31, 2019.

(6)

In February 2020, SCANA provided notice to redeem the remaining principal outstanding of $183 million of its 4.75% medium-term notes and $155 million of its 4.125% medium term notes plus accrued interest and make-whole premiums in March 2020. The notes would have otherwise matured in May 2021 and February 2022, respectively. As such, these borrowings are presented within securities due within one year in Dominion Energy’s Consolidated Balance Sheets at December 31, 2019.

(7)

In January 2020, SCANA provided notice to redeem its floating rate senior notes at the remaining principal outstanding of $66 million plus accrued interest in March 2020. The notes would have otherwise matured in June 2034. As such, these borrowings are presented within securities due within one year in Dominion Energy’s Consolidated Balance Sheets at December 31, 2019.

(8)	Industrial revenue bonds totaling $68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2021.

(9)	Represents debt associated with Eagle Solar, SBL Holdco and Dominion Solar Projects III, Inc. The debt is nonrecourse to Dominion Energy and is secured by Eagle Solar’s, SBL Holdco’s and Dominion Solar Projects III, Inc’s interest in certain solar facilities.

(10)	Excludes amounts classified as held for sale. See Note 3.

(11)	Represents the valuation of certain fair value hedges associated with Dominion Energy’s fixed rate debt.

(12)	Includes $22 million of estimated mandatory prepayments due within one year based on estimated cash flows in excess of debt service at SBL Holdco and Dominion Solar Projects III, Inc.

Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2020, were as follows:

	2021			2022			2023			2024			2025			Thereafter			Total
(millions, except percentages)
Virginia Power
Unsecured Senior Notes	$	—		$	750		$	700		$	350		$	350		$	10,539		$	12,689
Tax-Exempt Financings		—			—			—			—						625			625
Total	$	—		$	750		$	700		$	350		$	350		$	11,164		$	13,314
Weighted-average Coupon		—			3.15	%		2.75	%		3.45	%		3.10	%		4.18	%
Dominion Energy
Supplemental 364-Day Credit Facility	$	225		$	—		$	—		$	—		$	—		$	—		$	225
Term Loans⁽¹⁾		35			34			250			157			—			—			476
First Mortgage Bonds		33			—			—			—			—			3,234			3,267
Unsecured Senior Notes⁽²⁾⁽³⁾		550			1,500			2,700			690			2,000			19,537			26,977
Secured Senior Notes		17			19			16			17			19			243			331
Tax-Exempt Financings		—			—			—			—			—			775			775
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts		—			—			—			—			—			10			10
Unsecured Junior Subordinated Notes⁽⁴⁾		1,250			—			—			700			—			—			1,950
Enhanced Junior Subordinated Notes⁽⁵⁾		—			—			—			—			—			1,485			1,485
Total	$	2,110		$	1,553		$	2,966		$	1,564		$	2,019		$	25,284		$	35,496
Weighted-average Coupon		2.93	%		2.96	%		1.98	%		3.17	%		3.01	%		4.45	%

(1)

Excludes mandatory prepayments associated with SBL Holdco and Dominion Solar Projects III, Inc. based on cash flows in excess of debt service. At December 31, 2020, $22 million of estimated mandatory prepayments due within one year were included in securities due within one year in Dominion Energy’s Consolidated Balance Sheets.

(2)	In January 2020, SCANA provided notice to redeem its floating rate senior notes at the remaining principal outstanding of $66 million plus accrued interest in March 2020. The notes would have otherwise matured in June 2034.

(3)

In February 2020, SCANA provided notice to redeem the remaining principal outstanding of $183 million of its 4.75% medium-term notes and $155 million of its 4.125% medium-term notes plus accrued interest and make-whole premiums in March 2020. The notes would have otherwise matured in May 2021 and February 2022, respectively.

(4)	In April 2020, Dominion Energy purchased and canceled $7 million of its 2.579% junior subordinated notes that mature in July 2020. In June 2020, Dominion Energy prepaid the remaining balance of $993 million.

(5)

In February 2020, Dominion Energy purchased and cancelled the remaining $111 million and $286 million of its June 2006 hybrids and September 2006 hybrids, respectively, both of which would have otherwise matured in 2066. As such, these borrowings are presented within current liabilities in Dominion Energy’s Consolidated Balance Sheets at December 31, 2019.

The Companies’ short-term credit facility and long-term debt agreements contain customary covenants and default provisions. As of December 31, 2020, there were no events of default under these covenants.

Senior Note Issuances

In February 2021, PSNC entered into an agreement with certain investors to issue through private placement in March 2021, $150 million 3.10% 30-year senior notes. The proceeds will be used for the repayment of existing indebtedness and for general corporate purposes.

Senior Note Redemptions

In March 2020, SCANA redeemed its floating rate senior notes at the remaining principal balance of $66 million plus accrued interest. The notes would have otherwise matured in June 2034. Expenses related to the early redemption of the senior notes were $7 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2020.

In March 2020, SCANA redeemed the remaining principal outstanding of $183 million of its 4.75% medium-term notes and $155 million of its 4.125% medium-term notes plus accrued interest and make-whole premiums. The notes would have otherwise matured in May 2021 and February 2022, respectively. Total expenses related to the early redemption of the medium-term notes were $14 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2020.

Enhanced Junior Subordinated Notes

In June 2006 and September 2006, Dominion Energy issued $300 million of June 2006 hybrids and $500 million of September 2006 hybrids, respectively. The June 2006 hybrids and the September 2006 hybrids bore interest at the three-month LIBOR plus 2.825%, reset quarterly and at the three-month LIBOR plus 2.3%, reset quarterly, respectively. Dominion Energy executed RCCs in connection with its issuance of the June 2006 hybrids and the September 2006 hybrids. Under the terms of the RCCs, redemptions of the hybrids were subject to certain conditions. In 2019, Dominion Energy purchased and cancelled $12 million and $13 million of its June 2006 hybrids and September 2006 hybrids, respectively. In February 2020, Dominion Energy redeemed the remaining $111 million and $286 million of its June 2006 hybrids and September 2006 hybrids, respectively, both of which would have otherwise matured in 2066. All purchases were conducted in compliance with the applicable RCC, each of which was terminated in February 2020. Expenses related to the early redemption of the hybrids were $10 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2020.

In October 2014, Dominion Energy issued $685 million of October 2014 hybrids that will bear interest at 5.75% per year until October 1, 2024. Thereafter, they will bear interest at the three-month LIBOR plus 3.057%, reset quarterly.

In July 2016, Dominion Energy issued $800 million of 5.25% July 2016 hybrids. The July 2016 hybrids are listed on the NYSE under the symbol DRUA.

Dominion Energy may defer interest payments on the hybrids on one or more occasions for up to 10 consecutive years. If the interest payments on the hybrids are deferred, Dominion Energy may not make distributions related to its capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities that are equal in right of payment with, or subordinated to, the hybrids.

Remarketable Subordinated Notes

In June 2019, Dominion Energy successfully remarketed the $700 million 2016 Series A-1 2.0% RSNs due 2021 and $700 million 2016 Series A-2 2.0% RSNs due 2024 pursuant to the terms of the related 2016 Equity Units. In connection with the remarketing, the interest rates on the Series A-1 and Series A-2 notes were reset to 2.715% and 3.071%, respectively, payable on a semi-annual basis, and Dominion Energy ceased to have the ability to redeem the notes at its option or defer interest payments.

Dominion Energy did not receive any proceeds from the remarketing. Remarketing proceeds belonged to the investors holding the 2016 Equity Units and were temporarily used to purchase a portfolio of treasury securities. Upon maturity of the portfolio, the proceeds were applied on behalf of the investors on the related stock purchase contract settlement date to pay the purchase price to Dominion Energy for issuance of 18.5 million shares of its common stock in August 2019.

Derivative Restructuring

In June 2020, Dominion Energy amended a portfolio of interest rate swaps with a notional value of $2.0 billion, extending the mandatory termination dates from 2020 and 2021 to December 2024. The transaction is viewed as a noncash financing activity with an embedded interest rate swap. As a result, in June 2020, Dominion Energy recorded $326 million in other long-term debt, representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 1.19%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception.

In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900 million, extending the mandatory termination dates from 2020 to December 2023. The transaction is viewed as a noncash financing activity with an

embedded interest rate swap. As a result, in August 2020, Virginia Power recorded $443 million in other long-term debt, representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 0.34%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception. The interest rate swaps were in a hedge relationship prior to the transaction. Virginia Power de-designated the hedge relationships prior to the transaction and then designated the new interest rate swap in a hedge relationship after the transaction.