XML 76 R57.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Pension Plan and Other Postretirement Benefit Plan Obligations and Plan Assets and Includes a Statement of the Plans Funded Status

The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

11,363

 

 

$

10,446

 

 

$

1,746

 

 

$

1,769

 

Service cost

 

 

170

 

 

 

173

 

 

 

25

 

 

 

28

 

Interest cost

 

 

317

 

 

 

351

 

 

 

46

 

 

 

58

 

Benefits paid

 

 

(488

)

 

 

(461

)

 

 

(105

)

 

 

(120

)

Actuarial (gains) losses during the year

 

 

(413

)

 

 

992

 

 

 

(161

)

 

 

33

 

Plan amendments

 

 

—

 

 

 

—

 

 

 

(14

)

 

 

(6

)

Settlements and curtailments(1)

 

 

(59

)

 

 

(138

)

 

 

—

 

 

 

(16

)

Benefit obligation at end of year

 

$

10,890

 

 

$

11,363

 

 

$

1,537

 

 

$

1,746

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

10,979

 

 

$

9,631

 

 

$

2,100

 

 

$

1,880

 

Actual return (loss) on plan assets

 

 

1,202

 

 

 

1,602

 

 

 

294

 

 

 

300

 

Employer contributions

 

 

284

 

 

 

278

 

 

 

—

 

 

 

13

 

Benefits paid

 

 

(488

)

 

 

(461

)

 

 

(71

)

 

 

(93

)

Settlements(2)

 

 

(32

)

 

 

(71

)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

11,945

 

 

$

10,979

 

 

$

2,323

 

 

$

2,100

 

Funded status at end of year

 

$

1,055

 

 

$

(384

)

 

$

786

 

 

$

354

 

Amounts recognized in the Consolidated Balance Sheets

   at December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent pension and other postretirement benefit assets

 

$

1,246

 

 

$

1,054

 

 

$

1,064

 

 

$

650

 

Other current liabilities

 

 

(12

)

 

 

(14

)

 

 

(15

)

 

 

(15

)

Noncurrent pension and other postretirement benefit liabilities

 

 

(179

)

 

 

(1,424

)

 

 

(263

)

 

 

(281

)

Net amount recognized

 

$

1,055

 

 

$

(384

)

 

$

786

 

 

$

354

 

Significant assumptions used to determine benefit

   obligations as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

3.06%-3.19%

 

 

2.73%–2.95%

 

 

3.04%-3.11%

 

 

2.69%–2.80%

 

Weighted average rate of increase for compensation

 

4.51%

 

 

4.53%

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

1.81%-1.94%

 

 

1.93% - 2.15%

 

 

n/a

 

 

n/a

 

 

 

(1)

2021 amounts include curtailments and settlements recognized primarily as a result of the employee choice program and settlements of nonqualified pension obligations. 2020 amounts include curtailment and settlements recognized as a result of the GT&S Transaction as well as settlements of qualified and nonqualified pension obligations.  

 

(2)

2021 amounts relate to settlements of nonqualified pension obligations and 2020 amounts relate primarily to settlements of qualified and nonqualified pension obligations.

Benefit Obligation in Excess of Plan Asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy:

 

 

 

Pension Benefits

 

 

Other Postretirement

Benefits

 

As of  December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation

 

$

9,420

 

 

$

10,697

 

 

$

261

 

 

$

305

 

Fair value of plan assets

 

 

9,229

 

 

 

9,259

 

 

 

7

 

 

 

9

 
Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:

 

As of  December 31,

 

2021

 

 

2020

 

(millions)

 

 

 

 

 

 

 

 

Accumulated benefit obligation

 

$

127

 

 

$

9,970

 

Fair value of plan assets

 

 

53

 

 

 

9,259

 
Benefit Payments Expected Future Service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy’s plans:

 

 

 

Estimated Future Benefit Payments

 

 

 

Pension Benefits

 

 

Other Postretirement

Benefits

 

(millions)

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

2022

 

$

513

 

 

$

101

 

2023

 

 

516

 

 

 

100

 

2024

 

 

529

 

 

 

99

 

2025

 

 

541

 

 

 

97

 

2026

 

 

548

 

 

 

96

 

2027-2031

 

 

2,833

 

 

 

450

 
Fair Values of Pension and Post Retirement Plan Assets by Asset Category

The fair values of Dominion Energy’s pension plan assets by asset category are as follows:

 

At December 31,

 

2021

 

 

2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

25

 

 

$

5

 

 

$

—

 

 

$

30

 

 

$

20

 

 

$

1

 

 

$

—

 

 

$

21

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

2,592

 

 

 

244

 

 

 

—

 

 

 

2,836

 

 

 

2,405

 

 

 

—

 

 

 

—

 

 

 

2,405

 

International

 

 

1,773

 

 

 

19

 

 

 

—

 

 

 

1,792

 

 

 

1,727

 

 

 

—

 

 

 

—

 

 

 

1,727

 

Insurance contracts

 

 

—

 

 

 

279

 

 

 

—

 

 

 

279

 

 

 

—

 

 

 

409

 

 

 

—

 

 

 

409

 

Corporate debt instruments

 

 

81

 

 

 

1,439

 

 

 

—

 

 

 

1,520

 

 

 

32

 

 

 

1,385

 

 

 

—

 

 

 

1,417

 

Government securities

 

 

39

 

 

 

914

 

 

 

—

 

 

 

953

 

 

 

30

 

 

 

772

 

 

 

—

 

 

 

802

 

Total recorded at fair value

 

$

4,510

 

 

$

2,900

 

 

$

—

 

 

$

7,410

 

 

$

4,214

 

 

$

2,567

 

 

$

—

 

 

$

6,781

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,905

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

856

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,050

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,831

 

 

(1)

Includes $258 million of Dominion Energy preferred stock and no Dominion Energy common stock at December 31, 2021 and $365 million of Dominion Energy common stock at December 31, 2020.

(2)

These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(3)

Excludes net assets related to pending sales of securities of $35 million, net accrued income of $27 million, and includes net assets related to pending purchases of securities of $62 million at December 31, 2021. Excludes net assets related to pending sales of securities and advanced subscriptions of $198 million, net accrued income of $20 million, and includes net assets related to pending purchases of securities of $71 million at December 31, 2020.

The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:  

 

 

At December 31,

 

2021

 

 

2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3

 

 

$

1

 

 

$

—

 

 

$

4

 

 

$

—

 

 

$

2

 

 

$

—

 

 

$

2

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

898

 

 

 

14

 

 

 

—

 

 

 

912

 

 

 

817

 

 

 

—

 

 

 

—

 

 

 

817

 

International

 

 

256

 

 

 

1

 

 

 

—

 

 

 

257

 

 

 

240

 

 

 

—

 

 

 

—

 

 

 

240

 

Insurance contracts

 

 

—

 

 

 

16

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

23

 

Corporate debt instruments

 

 

5

 

 

 

61

 

 

 

—

 

 

 

66

 

 

 

2

 

 

 

60

 

 

 

—

 

 

 

62

 

Government securities

 

 

2

 

 

 

47

 

 

 

—

 

 

 

49

 

 

 

2

 

 

 

42

 

 

 

—

 

 

 

44

 

Total recorded at fair value

 

$

1,164

 

 

$

140

 

 

$

—

 

 

$

1,304

 

 

$

1,061

 

 

$

127

 

 

$

—

 

 

$

1,188

 

Assets recorded at NAV(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

765

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

903

 

Total investments(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,091

 

 

 

(1)

These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(2)

Excludes net assets related to pending sales of securities of $5 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $3 million at December 31, 2021. Excludes net assets related to pending sales of securities of $10 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2020.
Net Periodic Benefit (Credit) Cost and Amounts Recognized in Other Comprehensive Income and Regulatory Assets and Liabilities The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion Energy plans are as follows:

 

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

170

 

 

$

173

 

 

$

162

 

 

$

25

 

 

$

28

 

 

$

26

 

Interest cost

 

 

317

 

 

 

351

 

 

 

394

 

 

 

46

 

 

 

58

 

 

 

68

 

Expected return on plan assets

 

 

(834

)

 

 

(777

)

 

 

(708

)

 

 

(173

)

 

 

(156

)

 

 

(140

)

Amortization of prior service (credit) cost

 

 

—

 

 

 

1

 

 

 

1

 

 

 

(42

)

 

 

(49

)

 

 

(52

)

Amortization of net actuarial loss

 

 

193

 

 

 

206

 

 

 

172

 

 

 

4

 

 

 

6

 

 

 

10

 

Settlements, curtailments and special termination benefits

 

 

10

 

 

 

14

 

 

 

72

 

 

 

—

 

 

 

(59

)

 

 

42

 

Net periodic benefit (credit) cost

 

$

(144

)

 

$

(32

)

 

$

93

 

 

$

(140

)

 

$

(172

)

 

$

(46

)

Changes in plan assets and benefit obligations

   recognized in other comprehensive income

   and regulatory assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year net actuarial (gain) loss

 

$

(782

)

 

$

166

 

 

$

16

 

 

$

(282

)

 

$

(110

)

 

$

(98

)

Prior service (credit) cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

(6

)

 

 

2

 

Settlements and curtailments

 

 

(36

)

 

 

(81

)

 

 

6

 

 

 

—

 

 

 

59

 

 

 

—

 

Less amounts included in net periodic benefit

   cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of net actuarial loss

 

 

(193

)

 

 

(206

)

 

 

(172

)

 

 

(4

)

 

 

(6

)

 

 

(10

)

Amortization of prior service credit (cost)

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

42

 

 

 

49

 

 

 

52

 

Total recognized in other comprehensive

   income and regulatory assets and liabilities

 

$

(1,011

)

 

$

(122

)

 

$

(151

)

 

$

(257

)

 

$

(14

)

 

$

(54

)

Significant assumptions used to determine

   periodic cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

2.73%-3.29%

 

 

2.77%-3.63%

 

 

3.57%-4.43%

 

 

2.69%-2.80%

 

 

3.07%-3.52%

 

 

4.05% to 4.41%

 

Expected long-term rate of return on plan assets

 

7.00%-8.45%

 

 

7.00%-8.60%

 

 

7.00% -8.65%

 

 

8.45%

 

 

8.50%

 

 

8.50%

 

Weighted average rate of increase for

   compensation

 

4.53%

 

 

4.23%

 

 

4.20%

 

 

n/a

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

1.93%-2.15%

 

 

2.31-2.83%

 

 

2.77-3.63%

 

 

n/a

 

 

n/a

 

 

n/a

 

Healthcare cost trend rate(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

6.25%

 

 

6.25%

 

 

6.50% to 6.60%

 

Rate to which the cost trend rate is assumed to

   decline (the ultimate trend rate)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

5.00%

 

 

5.00%

 

 

5.00%

 

Year that the rate reaches the ultimate trend rate(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

2026-2027

 

 

2025-2026

 

 

2023-2025

 

(1)

Assumptions used to determine net periodic cost for the following year.

Components of AOCI and Regulatory Assets and Liabilities that have Not been Recognized as Components of Periodic Benefit (Credit) Cost

The components of AOCI and regulatory assets and liabilities for Dominion Energy’s plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:

 

 

 

Pension Benefits

 

 

Other

Postretirement

Benefits

 

At December 31,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

2,198

 

 

$

3,207

 

 

$

(166

)

 

$

120

 

Prior service (credit) cost

 

 

2

 

 

 

4

 

 

 

(203

)

 

 

(232

)

Total(1)

 

$

2,200

 

 

$

3,211

 

 

$

(369

)

 

$

(112

)

(1)

 As of December 31, 2021, of the $2.2 billion and $(369) million related to pension benefits and other postretirement benefits, $1.7 billion and $(155) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2020,

of the $3.2 billion and $(112) million related to pension benefits and other postretirement benefits, $1.9 billion and $(40) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.