Operating Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Operating Segments

Note 21. 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(3)	X
	Noncontrolling interest in Cove Point	X

(1)Includes Virginia Power’s non-jurisdictional solar generation operations.

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

(3)Includes solar generation facility development 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 company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization and its noncontrolling interest in Wrangler (through March 2022). 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, including its noncontrolling interest in Atlantic Coast Pipeline, reported as discontinued operations which are discussed in Notes 3 and 9 to the Consolidated Financial Statements in Dominion Energy’s Annual Report on Form 10-K for the year ended December 31, 2022.

In the three months ended March 31, 2023, Dominion Energy reported after-tax net income of $86 million in the Corporate and Other segment, including $148 million of after-tax net income for specific items with $272 million of after-tax net income attributable to its operating segments. In the three months ended March 31, 2022, Dominion Energy reported after-tax net expenses of $311 million in the Corporate and Other segment, including $289 million of after-tax net expenses for specific items with $269 million of after-tax net expenses attributable to its operating segments.

The net income for specific items attributable to Dominion Energy’s operating segments in 2023 primarily related to the impact of the following items:

•A $291 million ($221 million after-tax) gain related to economic hedging activities, attributable to Contracted Assets;

•A $123 million ($90 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

•Contracted Assets ($77 million after-tax); and

•Dominion Energy Virginia ($13 million after-tax); and

•A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2022 primarily related to the impact of the following items:

•A $125 million ($102 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

•Contracted Assets ($90 million after-tax); and

•Dominion Energy Virginia ($12 million after-tax);

•A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia;

•A $66 million ($47 million after-tax) loss related to economic hedging activities, attributable to Contracted Assets; and

•A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review, attributable to Dominion Energy Virginia.

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

	Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina		Contracted Assets		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2023
Total revenue from external      customers	$	2,389		$	1,367	$	844	$	308	$	344		$	—		$	5,252
Intersegment revenue		(1	)		1		1		3		250			(254	)		—
Total operating revenue		2,388			1,368		845		311		594			(254	)		5,252
Net loss from discontinued      operations		—			—		—		—		(5	)		—			(5	)
Net income attributable to      Dominion Energy		386			278		91		156		86			—			997
Three Months Ended March 31, 2022
Total revenue from external      customers	$	2,172		$	1,229	$	798	$	245	$	(165	)	$	—		$	4,279
Intersegment revenue		(3	)		1		1		4		237			(240	)		—
Total operating revenue		2,169			1,230		799		249		72			(240	)		4,279
Net income from discontinued      operations		—			—		—		—		19			—			19
Net income (loss) attributable to      Dominion Energy		518			294		109		101		(311	)		—			711

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 the three months ended March 31, 2023, Virginia Power reported after-tax net expenses of $31 million in the Corporate and Other segment, including $32 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the three months ended March 31, 2022, Virginia Power reported after-tax net expenses of $159 million in the Corporate and Other segment, including $130 million of after-tax net expenses for specific items all of which was attributable to its operating segment.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2023 primarily related to the impact of the following item:

•A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2022 primarily related to the impact of the following items:

•A $94 million ($70 million after-tax) charge associated with storm damage and service restoration in its service territory; and

•A $61 million ($45 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review.

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

	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2023
Operating revenue	$	2,384	$	—		$	2,384
Net income (loss)		384		(31	)		353
Three Months Ended March 31, 2022
Operating revenue	$	2,165	$	2		$	2,167
Net income (loss)		516		(159	)		357