XML 56 R40.htm IDEA: XBRL DOCUMENT v3.22.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Inputs, Assets, Quantitative Information

The following table presents Dominion Energy’s quantitative information about Level 3 fair value measurements at March 31, 2022.  The range and weighted average are presented in dollars for market price inputs.

 

 

 

Fair Value

(millions)

 

 

Valuation Techniques

 

Unobservable Input

 

 

Range

 

Weighted

Average(1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

12

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2) - 6

 

 

(1

)

FTRs

 

 

17

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(1) - 7

 

 

2

 

Electricity

 

 

180

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

30 - 85

 

 

47

 

Total assets

 

$

209

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

5

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2) - 5

 

 

(1

)

FTRs

 

 

2

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(3) - 3

 

 

1

 

Total liabilities

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Averages weighted by volume.

(2)

Includes basis.

(3)

Represents market prices beyond defined terms for Levels 1 and 2. 

Fair Value, Option, Qualitative Disclosures

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable

Inputs

 

Position

 

Change to Input

 

Impact on Fair Value

Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)
Fair Value, by Balance Sheet Grouping

The following table presents Dominion Energy’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

232

 

 

$

209

 

 

$

441

 

Interest rate

 

 

—

 

 

 

768

 

 

 

—

 

 

 

768

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

5,013

 

 

 

—

 

 

 

—

 

 

 

5,013

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

839

 

 

 

—

 

 

 

839

 

Government securities

 

 

198

 

 

 

1,162

 

 

 

—

 

 

 

1,360

 

Cash equivalents and other

 

 

(15

)

 

 

—

 

 

 

—

 

 

 

(15

)

Total assets

 

$

5,196

 

 

$

3,001

 

 

$

209

 

 

$

8,406

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

941

 

 

$

7

 

 

$

948

 

Interest rate

 

 

—

 

 

 

362

 

 

 

—

 

 

 

362

 

Foreign currency exchange rate

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

Total liabilities

 

$

—

 

 

$

1,307

 

 

$

7

 

 

$

1,314

 

At December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

52

 

 

$

230

 

 

$

282

 

Interest rate

 

 

—

 

 

 

323

 

 

 

—

 

 

 

323

 

Foreign currency exchange rate

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

5,241

 

 

 

—

 

 

 

—

 

 

 

5,241

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

881

 

 

 

—

 

 

 

881

 

Government securities

 

 

199

 

 

 

1,256

 

 

 

—

 

 

 

1,455

 

Cash equivalents and other

 

 

(29

)

 

 

—

 

 

 

—

 

 

 

(29

)

Total assets

 

$

5,411

 

 

$

2,520

 

 

$

230

 

 

$

8,161

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

461

 

 

$

8

 

 

$

469

 

Interest rate

 

 

—

 

 

 

399

 

 

 

—

 

 

 

399

 

Total liabilities

 

$

—

 

 

$

860

 

 

$

8

 

 

$

868

 

(1)

Includes investments held in the nuclear decommissioning and rabbi trusts. Excludes $361 million and $366 million of assets at March 31, 2022 and December 31, 2021, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Dominion Energy's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

Beginning balance

 

$

222

 

 

$

103

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

48

 

 

 

(21

)

Included in regulatory assets/liabilities

 

 

(20

)

 

 

(47

)

Settlements

 

 

(48

)

 

 

21

 

Ending balance

 

$

202

 

 

$

56

 
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments For the Companies' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Carrying

Amount

 

 

Estimated

Fair

Value(1)

 

 

Carrying

Amount

 

 

Estimated

Fair

Value(1)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

36,945

 

 

$

38,421

 

 

$

35,996

 

 

$

40,947

 

Junior subordinated notes(3)

 

 

1,386

 

 

 

1,407

 

 

 

1,386

 

 

 

1,470

 

Virginia Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(3)

 

$

14,736

 

 

$

15,478

 

 

$

13,753

 

 

$

16,021

 

 

(1)

Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. At March 31, 2022 and December 31, 2021, the carrying amount includes the valuation of certain fair value hedges associated with fixed rate debt of $1 million and $2 million, respectively.

(3)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs, discount or premium.
Virginia Electric and Power Company  
Fair Value Inputs, Assets, Quantitative Information

The following table presents Virginia Power’s quantitative information about Level 3 fair value measurements at March 31, 2022.  The range and weighted average are presented in dollars for market price inputs.

 

 

 

Fair Value

(millions)

 

 

Valuation Techniques

 

Unobservable Input

 

 

Range

 

Weighted

Average(1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

12

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2) - 6

 

 

(1

)

FTRs

 

 

17

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(1) - 7

 

 

2

 

Total assets

 

$

29

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

5

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2) - 5

 

 

(1

)

FTRs

 

 

2

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(3) - 3

 

 

1

 

Total liabilities

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Averages weighted by volume.

(2)

Includes basis.

(3)

Represents market prices beyond defined terms for Levels 1 and 2.
Fair Value, Option, Qualitative Disclosures

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable

Inputs

 

Position

 

Change to Input

 

Impact on Fair Value

Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)
Fair Value, by Balance Sheet Grouping

 

 

The following table presents Virginia Power’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

75

 

 

$

29

 

 

$

104

 

Interest rate

 

 

—

 

 

 

300

 

 

 

—

 

 

 

300

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,325

 

 

 

—

 

 

 

—

 

 

 

2,325

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

509

 

 

 

—

 

 

 

509

 

Government securities

 

 

93

 

 

 

461

 

 

 

—

 

 

 

554

 

Total assets

 

$

2,418

 

 

$

1,345

 

 

$

29

 

 

$

3,792

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

297

 

 

$

7

 

 

$

304

 

Interest rate

 

 

—

 

 

 

200

 

 

 

—

 

 

 

200

 

Foreign currency exchange rate

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

Total liabilities

 

$

—

 

 

$

501

 

 

$

7

 

 

$

508

 

At December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

36

 

 

$

110

 

 

$

146

 

Interest rate

 

 

—

 

 

 

146

 

 

 

—

 

 

 

146

 

Foreign currency exchange rate

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,420

 

 

 

—

 

 

 

—

 

 

 

2,420

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

531

 

 

 

—

 

 

 

531

 

Government securities

 

 

93

 

 

 

506

 

 

 

—

 

 

 

599

 

Cash equivalents and other

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

Total assets

 

$

2,510

 

 

$

1,227

 

 

$

110

 

 

$

3,847

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

125

 

 

$

8

 

 

$

133

 

Interest rate

 

 

—

 

 

 

337

 

 

 

—

 

 

 

337

 

Total liabilities

 

$

—

 

 

$

462

 

 

$

8

 

 

$

470

 

 

(1)

Includes investments held in the nuclear decommissioning trusts. Excludes $194 million and $185 million of assets at March 31, 2022 and December 31, 2021, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Virginia Power’s assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

Beginning balance

 

$

102

 

 

$

103

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

45

 

 

 

(21

)

Included in regulatory assets/liabilities

 

 

(80

)

 

 

(47

)

Settlements

 

 

(45

)

 

 

21

 

Ending balance

 

$

22

 

 

$

56