Operating Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Operating Segments

NOTE 26. OPERATING SEGMENTS

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

Primary Operating Segment	Description of Operations	Dominion Energy	Virginia Power
Dominion Energy Virginia	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Regulated electric generation fleet(1)	X	X
Gas Distribution	Regulated gas distribution and storage(2)	X
Dominion Energy South Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted Assets	Nonregulated electric generation fleet	X
	Noncontrolling interest in Cove Point	X

(1)    Includes Virginia Power’s nonjurisdictional generation operations.

(2)   Includes renewable natural gas operations as well as Wexpro’s natural gas development and production operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service companies and other functions (including unallocated debt) as well as nonregulated retail energy marketing operations, including Dominion Energy’s noncontrolling interest in Wrangler. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources, as well as the net impact of the gas transmission and storage operations held in discontinued operations which are discussed in Note 3.

In 2020, Dominion Energy reported after-tax net expenses of $3.7 billion in the Corporate and Other segment, including $3.4 billion of after-tax net expenses for specific items with $1.2 billion of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2020 primarily related to the impact of the following items:

• A $751 million ($564 million after-tax) charge primarily related to the planned early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia;

• A $405 million ($325 million after-tax) charge associated with certain nonregulated solar generation facilities, attributable to Contracted Assets;

• A $221 million ($171 million after-tax) charge associated with the sale of Fowler Ridge, attributable to Contracted Assets; and

• A $130 million ($97 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric customers under the GTSA, attributable to Dominion Energy Virginia;

• A $127 million ($94 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to legislation enacted in November 2020, attributable to Dominion Energy Virginia; and

• A $117 million ($93 million after-tax) of charges associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina; partially offset by

• A $335 million ($264 million after-tax) net gain related to investments in nuclear decommissioning trust funds attributable to:

• Dominion Energy Virginia ($27 million after-tax); and

• Contracted Assets ($237 million after-tax).

In 2019, Dominion Energy reported after-tax net expenses of $1.8 billion in the Corporate and Other segment, including $1.5 billion of after-tax net expenses for specific items with $1.9 billion of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2019 primarily related to the impact of the following items:

• A $1.0 billion ($756 million after-tax) charge for refunds of amounts previously collected from retail electric customers of DESC for the NND Project, attributable to Dominion Energy South Carolina;

• $641 million ($480 million after-tax) of charges associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina;

• $427 million ($320 million after-tax) of charges for merger and integration-related costs associated with the SCANA Combination, including a $394 million ($295 million after-tax) charge related to a voluntary retirement program, attributable to:

• Dominion Energy Virginia ($151 million after-tax);

• Gas Distribution ($56 million after-tax);

• Dominion Energy South Carolina ($75 million after-tax); and

• Contracted Assets ($38 million after-tax).

• A $346 million ($257 million after-tax) charge related to the early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia;

• A $194 million tax charge for $258 million of income tax-related regulatory assets acquired in the SCANA Combination for which Dominion Energy committed to forgo recovery, attributable to Dominion Energy South Carolina;

• A $160 million ($119 million after-tax) charge related to Virginia Power’s planned early retirement of certain automated meter reading infrastructure, attributable to Dominion Energy Virginia;

• A $135 million ($100 million after-tax) charge related to Virginia Power’s contract termination with a non-utility generator, attributable to Dominion Energy Virginia;

• A $114 million ($86 million after-tax) charge for property, plant and equipment acquired in the SCANA Combination primarily for which Dominion Energy committed to forgo recovery, attributable to Dominion Energy South Carolina; partially offset by

• A $553 million ($411 million after-tax) net gain related to investments in nuclear decommissioning trust funds attributable to:

• Dominion Energy Virginia ($49 million after-tax); and

• Contracted Assets ($362 million after-tax); and

• A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019, attributable to Dominion Energy Virginia.

In 2018, Dominion Energy reported after-tax net income of $117 million in the Corporate and Other segment, including $322 million of after-tax net income for specific items with $196 million of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2018 primarily related to the impact of the following items:

• A $215 million ($160 million after-tax) charge associated with Virginia legislation enacted in March 2018 that required one-time rate credits of certain amounts to utility customers, attributable to Dominion Energy Virginia;

• A $170 million ($134 million after-tax) net loss related to our investments in nuclear decommissioning trust funds attributable to:

• Dominion Energy Virginia ($14 million after-tax); and

• Contracted Assets ($120 million after-tax);

• An $81 million ($60 million after-tax) charge associated primarily with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities in connection with the enactment of Virginia legislation in April 2018 attributable to Dominion Energy Virginia; and

• A $70 million ($52 million after-tax) charge associated with major storm damage and service restoration attributable to Dominion Energy Virginia; partially offset by

• A $282 million ($229 million after-tax) benefit associated with the sale of certain nonregulated generation facilities, attributable to Contracted Assets.

The following table presents segment information pertaining to Dominion Energy’s operations:

Year Ended December 31,	Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina			Contracted Assets			Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
2020
Total revenue from external customers	$	7,802		$	2,345	$	2,782		$	1,020		$	200		$	48		$	14,197
Intersegment revenue		(15	)		10		5			51			963			(1,039	)		(25	)
Total operating revenue		7,787			2,355		2,787			1,071			1,163			(991	)		14,172
Depreciation, depletion and amortization		1,247			344		474			182			85			—			2,332
Equity in earnings of equity method investees		—			—		(1	)		35			6			—			40
Interest income		13			6		12			91			73			(88	)		107
Interest and related charges		527			76		219			75			568			(88	)		1,377
Income tax expense (benefit)		496			121		107			(16	)		(625	)		—			83
Net income (loss) from discontinued    operations		—			—		—			167			(2,045	)		—			(1,878	)
Net income (loss) attributable to Dominion    Energy		1,891			560		419			402			(3,673	)		—			(401	)
Investment in equity method investees(1)		—			55		—			2,784			95			—			2,934
Capital expenditures		3,406			1,151		700			649			425			—			6,331
Total assets (billions)		46.0			17.1		16.0			13.1			8.6			(4.9	)		95.9
2019
Total revenue from external customers	$	8,170		$	2,367	$	2,948		$	1,083		$	(239	)	$	79		$	14,408
Intersegment revenue		(13	)		18		4			73			1,071			(1,160	)		(7	)
Total operating revenue		8,157			2,385		2,952			1,156			832			(1,081	)		14,401
Depreciation, depletion and amortization		1,216			335		452			180			100			—			2,283
Equity in earnings of equity method investees		—			2		(4	)		(1	)		11			—			8
Interest income		11			4		9			97			112			(136	)		97
Interest and related charges		530			116		242			98			636			(136	)		1,486
Income tax expense (benefit)		482			114		163			20			(570	)		—			209
Net income from discontinued operations		—			—		—			183			533			—			716
Net income (loss) attributable to Dominion    Energy		1,786			487		430			460			(1,805	)		—			1,358
Investment in equity method investees		—			37		—			74			1,223			—			1,334
Capital expenditures		3,002			853		562			367			537			—			5,321
Total assets (billions)		43.7			16.0		15.8			10.2			24.0			(5.9	)		103.8
2018
Total revenue from external customers	$	8,401		$	1,769	$	—		$	813		$	27		$	177		$	11,187
Intersegment revenue		(552	)		16		—			621			602			(675	)		12
Total operating revenue		7,849			1,785		—			1,434			629			(498	)		11,199
Depreciation, depletion and amortization		1,158			263		—			213			26			—			1,660
Equity in earnings of equity method investees		—			—		—			18			58			—			76
Interest income		10			—		—			84			94			(108	)		80
Interest and related charges		516			79		—			124			668			(108	)		1,279
Income tax expense (benefit)		380			95		—			75			(28	)		—			522
Net income from discontinued operations		—			—		—			116			336			—			452
Net income attributable to Dominion Energy		1,596			373		—			361			117			—			2,447
Capital expenditures		2,640			647		—			247			871			—			4,405

(1) Excludes liability to Atlantic Coast Pipeline.

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In 2020, Virginia Power reported after-tax net expenses of $863 million in the Corporate and Other segment, including $915 million of after-tax net expenses for specific items all of which were attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2020 primarily related to a $751 million ($559 million after-tax) charge related to the planned early retirement of certain electric generation facilities, a $130 million ($97 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric customers under the GTSA and a $127 million ($94 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to legislation enacted in November 2020.

In 2019, Virginia Power reported after-tax net expenses of $634 million in the Corporate and Other segment, including $627 million of after-tax net expenses for specific items all of which were attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2019 primarily related to the impact of the following items:

• A $346 million ($257 million after-tax) charge related to the early retirement of certain electric generation facilities;

• A $198 million ($146 million after-tax) charge related to a voluntary retirement program;

• A $160 million ($119 million after-tax) charge related to the planned early retirement of certain automated meter reading infrastructure;

• A $135 million ($100 million after-tax) charge related to a contract termination with a non-utility generator; and

• A $62 million ($46 million after-tax) charge related to the abandonment of a project at an electric generating facility, partially offset by

• A $113 million ($84 million after-tax) benefit from the revision of future ash pond and landfill closure costs as a result of Virginia legislation enacted in March 2019.

In 2018, Virginia Power reported after-tax net expenses of $312 million in the Corporate and Other segment, all of which was for specific items attributable to its operating segment.

The net expenses for specific items attributable to its operating segment in 2018 primarily related to the impact of the following items:

• A $215 million ($160 million after-tax) charge associated with Virginia legislation enacted in March 2018 that required one-time rate credits of certain amounts to utility customers;

• An $81 million ($60 million after-tax) charge associated primarily with the asset retirement obligations for ash ponds and landfills at certain utility generation facilities in connection with the enactment of Virginia legislation in April 2018; and

• A $70 million ($52 million after-tax) charge associated with major storm damage and service restoration.

The following table presents segment information pertaining to Virginia Power’s operations:

Year Ended December 31,	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
2020
Operating revenue	$	7,763	$	—		$	7,763
Depreciation and amortization		1,245		7			1,252
Interest income		11		—			11
Interest expense (benefit) and related charges		524		(8	)		516
Income tax expense (benefit)		500		(271	)		229
Net income (loss)		1,884		(863	)		1,021
Capital expenditures		3,372		—			3,372
Total assets (billions)		43.7		—			43.7
2019
Operating revenue	$	8,137	$	(29	)	$	8,108
Depreciation and amortization		1,215		8			1,223
Interest income		11		—			11
Interest expense (benefit) and related charges		529		(5	)		524
Income tax expense (benefit)		481		(217	)		264
Net income (loss)		1,783		(634	)		1,149
Capital expenditures		2,981		—			2,981
Total assets (billions)		41.4		—			41.4
2018
Operating revenue	$	7,835	$	(216	)	$	7,619
Depreciation and amortization		1,157		(25	)		1,132
Interest income		10		—			10
Interest expense (benefit) and related charges		516		(5	)		511
Income tax expense (benefit)		378		(78	)		300
Net income (loss)		1,594		(312	)		1,282
Capital expenditures		2,542		—			2,542