XML 78 R57.htm IDEA: XBRL DOCUMENT v3.22.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2022
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,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

Changes in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

10,890

 

 

$

11,363

 

 

$

1,537

 

 

$

1,746

 

Service cost

 

 

142

 

 

 

170

 

 

 

22

 

 

 

25

 

Interest cost

 

 

333

 

 

 

317

 

 

 

45

 

 

 

46

 

Benefits paid

 

 

(511

)

 

 

(488

)

 

 

(97

)

 

 

(105

)

Actuarial (gains) losses during the year

 

 

(2,716

)

 

 

(413

)

 

 

(361

)

 

 

(161

)

Plan amendments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(14

)

Sale of Hope

 

 

(64

)

 

 

—

 

 

 

(19

)

 

 

—

 

Settlements and curtailments(1)

 

 

(8

)

 

 

(59

)

 

 

—

 

 

 

—

 

Benefit obligation at end of year

 

$

8,066

 

 

$

10,890

 

 

$

1,127

 

 

$

1,537

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

11,945

 

 

$

10,979

 

 

$

2,323

 

 

$

2,100

 

Actual return (loss) on plan assets

 

 

(2,556

)

 

 

1,202

 

 

 

(416

)

 

 

294

 

Employer contributions

 

 

9

 

 

 

284

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(511

)

 

 

(488

)

 

 

(62

)

 

 

(71

)

Sale of Hope

 

 

(188

)

 

 

—

 

 

 

—

 

 

 

—

 

Settlements(2)

 

 

(5

)

 

 

(32

)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

8,694

 

 

$

11,945

 

 

$

1,845

 

 

$

2,323

 

Funded status at end of year

 

$

628

 

 

$

1,055

 

 

$

718

 

 

$

786

 

Amounts recognized in the Consolidated Balance Sheets
   at December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent pension and other postretirement benefit assets

 

$

875

 

 

$

1,246

 

 

$

910

 

 

$

1,064

 

Other current liabilities

 

 

(12

)

 

 

(12

)

 

 

(13

)

 

 

(15

)

Noncurrent pension and other postretirement benefit liabilities

 

 

(235

)

 

 

(179

)

 

 

(179

)

 

 

(263

)

Net amount recognized

 

$

628

 

 

$

1,055

 

 

$

718

 

 

$

786

 

Significant assumptions used to determine benefit
   obligations as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.65%-5.75%

 

 

3.06%-3.19%

 

 

5.69%-5.70%

 

 

3.04%-3.11%

 

Weighted average rate of increase for compensation

 

4.38%

 

 

4.51%

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

4.40%-4.50%

 

 

1.81%-1.94%

 

 

n/a

 

 

n/a

 

 

(1)
2022 amounts include curtailment for Hope as well as settlements of nonqualified pension obligations. 2021 amounts include settlements of nonqualified pension obligations.
(2)
2022 and 2021 amounts relate to settlements of 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,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation

 

$

7,655

 

 

$

9,420

 

 

$

197

 

 

$

261

 

Fair value of plan assets

 

 

7,410

 

 

 

9,229

 

 

 

5

 

 

 

7

 
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,

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

Accumulated benefit obligation

 

$

776

 

 

$

127

 

Fair value of plan assets

 

 

623

 

 

 

53

 
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)

 

 

 

 

 

 

2023

 

$

518

 

 

$

99

 

2024

 

 

527

 

 

 

97

 

2025

 

 

542

 

 

 

96

 

2026

 

 

551

 

 

 

94

 

2027

 

 

560

 

 

 

93

 

2028-2032

 

 

2,925

 

 

 

433

 
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,

 

2022

 

 

2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14

 

 

$

11

 

 

$

—

 

 

$

25

 

 

$

25

 

 

$

5

 

 

$

—

 

 

$

30

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

1,653

 

 

 

170

 

 

 

—

 

 

 

1,823

 

 

 

2,592

 

 

 

244

 

 

 

—

 

 

 

2,836

 

International

 

 

1,034

 

 

 

5

 

 

 

—

 

 

 

1,039

 

 

 

1,773

 

 

 

19

 

 

 

—

 

 

 

1,792

 

Insurance contracts

 

 

—

 

 

 

166

 

 

 

—

 

 

 

166

 

 

 

—

 

 

 

279

 

 

 

—

 

 

 

279

 

Corporate debt instruments

 

 

65

 

 

 

805

 

 

 

—

 

 

 

870

 

 

 

81

 

 

 

1,439

 

 

 

—

 

 

 

1,520

 

Government securities

 

 

46

 

 

 

1,377

 

 

 

—

 

 

 

1,423

 

 

 

39

 

 

 

914

 

 

 

—

 

 

 

953

 

Total recorded at fair value

 

$

2,812

 

 

$

2,534

 

 

$

—

 

 

$

5,346

 

 

$

4,510

 

 

$

2,900

 

 

$

—

 

 

$

7,410

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

1,780

 

 

 

 

 

 

 

 

 

 

 

 

3,010

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

66

 

 

 

 

 

 

 

 

 

 

 

 

116

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

1,284

 

 

 

 

 

 

 

 

 

 

 

 

1,233

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

192

 

 

 

 

 

 

 

 

 

 

 

 

162

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

14

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

$

3,324

 

 

 

 

 

 

 

 

 

 

 

$

4,535

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

$

8,670

 

 

 

 

 

 

 

 

 

 

 

$

11,945

 

 

(1)
Includes $170 million and $258 million of Dominion Energy preferred stock at December 31, 2022 and 2021, respectively.
(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 and advanced subscription of $177 million, net accrued income of $27 million, and includes net assets related to pending purchases of securities of $180 million at December 31, 2022. 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.

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

 

 

At December 31,

 

2022

 

 

2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3

 

 

$

1

 

 

$

—

 

 

$

4

 

 

$

3

 

 

$

1

 

 

$

—

 

 

$

4

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

685

 

 

 

10

 

 

 

—

 

 

 

695

 

 

 

898

 

 

 

14

 

 

 

—

 

 

 

912

 

International

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

 

 

256

 

 

 

1

 

 

 

—

 

 

 

257

 

Insurance contracts

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

16

 

Corporate debt instruments

 

 

4

 

 

 

38

 

 

 

—

 

 

 

42

 

 

 

5

 

 

 

61

 

 

 

—

 

 

 

66

 

Government securities

 

 

3

 

 

 

79

 

 

 

—

 

 

 

82

 

 

 

2

 

 

 

47

 

 

 

—

 

 

 

49

 

Total recorded at fair value

 

$

876

 

 

$

138

 

 

$

—

 

 

$

1,014

 

 

$

1,164

 

 

$

140

 

 

$

—

 

 

$

1,304

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

649

 

 

 

 

 

 

 

 

 

 

 

 

840

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

158

 

 

 

 

 

 

 

 

 

 

 

 

152

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

9

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

$

829

 

 

 

 

 

 

 

 

 

 

 

$

1,015

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

$

1,843

 

 

 

 

 

 

 

 

 

 

 

$

2,319

 

 

 

(1)
Includes $10 million of Dominion Energy preferred stock at December 31, 2022.
(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 and advanced subscription of $10 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $10 million at December 31, 2022. 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.
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,

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

142

 

 

$

170

 

 

$

173

 

 

$

22

 

 

$

25

 

 

$

28

 

Interest cost

 

 

333

 

 

 

317

 

 

 

351

 

 

 

45

 

 

 

46

 

 

 

58

 

Expected return on plan assets

 

 

(886

)

 

 

(834

)

 

 

(777

)

 

 

(191

)

 

 

(173

)

 

 

(156

)

Amortization of prior service (credit) cost

 

 

—

 

 

 

—

 

 

 

1

 

 

 

(38

)

 

 

(42

)

 

 

(49

)

Amortization of net actuarial (gain) loss

 

 

159

 

 

 

193

 

 

 

206

 

 

 

(2

)

 

 

4

 

 

 

6

 

Settlements, curtailments and special termination
   benefits(1)

 

 

—

 

 

 

10

 

 

 

14

 

 

 

(8

)

 

 

—

 

 

 

(59

)

Net periodic benefit (credit) cost

 

$

(252

)

 

$

(144

)

 

$

(32

)

 

$

(172

)

 

$

(140

)

 

$

(172

)

Changes in plan assets and benefit obligations
   recognized in other comprehensive income
   and regulatory assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year net actuarial (gain) loss

 

$

726

 

 

$

(782

)

 

$

166

 

 

$

246

 

 

$

(282

)

 

$

(110

)

Prior service (credit) cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

(6

)

Settlements and curtailments(1)

 

 

(3

)

 

 

(36

)

 

 

(81

)

 

 

10

 

 

 

—

 

 

 

59

 

Less amounts included in net periodic benefit
   cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of net actuarial gain (loss)

 

 

(159

)

 

 

(193

)

 

 

(206

)

 

 

2

 

 

 

(4

)

 

 

(6

)

Amortization of prior service credit (cost)

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

38

 

 

 

42

 

 

 

49

 

Sale of Hope

 

 

(47

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total recognized in other comprehensive
   income and regulatory assets and liabilities

 

$

517

 

 

$

(1,011

)

 

$

(122

)

 

$

296

 

 

$

(257

)

 

$

(14

)

Significant assumptions used to determine
   periodic cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

3.06%-3.19%

 

 

2.73%-3.29%

 

 

2.77%-3.63%

 

 

3.04%-5.03%

 

 

2.69%-2.80%

 

 

3.07%-3.52%

 

Expected long-term rate of return on plan assets

 

7.00%-8.35%

 

 

7.00%-8.45%

 

 

7.00%-8.60%

 

 

8.35%

 

 

8.45%

 

 

8.50%

 

Weighted average rate of increase for
   compensation

 

4.51%

 

 

4.53%

 

 

4.23%

 

 

n/a

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar
   plans

 

1.81%-1.94%

 

 

1.93%-2.15%

 

 

2.31-2.83%

 

 

n/a

 

 

n/a

 

 

n/a

 

Healthcare cost trend rate(2)

 

 

 

 

 

 

 

 

 

 

6.25%

 

 

6.25%

 

 

6.25%

 

Rate to which the cost trend rate is assumed to
   decline (the ultimate trend rate)(2)

 

 

 

 

 

 

 

 

 

 

5.00%

 

 

5.00%

 

 

5.00%

 

Year that the rate reaches the ultimate trend rate(2)

 

 

 

 

 

 

 

 

 

 

2026-2027

 

 

2026-2027

 

 

2025-2026

 
(1)
2022 amounts relate primarily to Dominion Energy’s sale of Hope. 2021 amounts relate primarily to the Dominion Energy executive nonqualified pension plan. 2020 amounts primarily relate to the GT&S Transaction.
(2)
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,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

2,714

 

 

$

2,198

 

 

$

84

 

 

$

(166

)

Prior service (credit) cost

 

 

3

 

 

 

2

 

 

 

(157

)

 

 

(203

)

Total(1)

 

$

2,717

 

 

$

2,200

 

 

$

(73

)

 

$

(369

)
(1)
As of December 31, 2022, of the $2.7 billion and $(73) million related to pension benefits and other postretirement benefits, $1.7 billion and $14 million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. 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.