Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Inputs, Assets, Quantitative Information

The following table presents the Companies' quantitative information about Level 3 fair value measurements at March 31, 2023. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.

				Dominion Energy				Virginia Power
	Valuation Techniques	Unobservable Input		Fair Value (millions)		Range	Weighted Average(1)	Fair Value (millions)		Range	Weighted Average(1)
Assets
Physical and financial forwards:
Natural gas(2)	Discounted    cash flow	Market price    (per Dth)	(3)	$	6	(2)-5	—	$	6	(2)-3	—
FTRs	Discounted    cash flow	Market price    (per MWh)	(3)		37	1-7	4		37	1-7	4
Electricity	Discounted    cash flow	Market price    (per MWh)	(3)		152	18-110	48		—	—	—
Physical options:
Natural gas(2)	Option model	Market price    (per Dth)	(3)		16	1-10	4		16	1-10	4
		Price volatility	(4)			23%-74%	53%			23%-74%	53%
Total assets				$	211			$	59
Liabilities
Physical and financial forwards:
Natural gas(2)	Discounted    cash flow	Market price    (per Dth)	(3)	$	3	(2)-3	(1)	$	3	(2)-0	(1)
FTRs	Discounted    cash flow	Market price    (per MWh)	(3)		1	0-7	3		1	0-7	3
Electricity	Discounted    cash flow	Market price    (per MWh)	(3)		1	34-129	63		—	—	—
Total    liabilities				$	5			$	4

(1)Averages weighted by volume.

(2)Includes basis.

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

Represents volatilities unrepresented in published markets.

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)
Price volatility	Buy	Increase (decrease)	Gain (loss)
Price volatility	Sell	Increase (decrease)	Loss (gain)

Fair Value, by Balance Sheet Grouping

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

	Dominion Energy								Virginia Power
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
March 31, 2023
Assets
Derivatives:
Commodity	$	—	$	237	$	211	$	448	$	—	$	83	$	59	$	142
Interest rate		—		748		—		748		—		90		—		90
Foreign currency exchange rate		—		1		—		1		—		1		—		1
Investments(1):
Equity securities:
U.S.		4,052		—		—		4,052		2,155		—		—		2,155
Fixed income:
Corporate debt instruments		—		544		—		544		—		329		—		329
Government securities		165		1,137		—		1,302		92		605		—		697
Cash equivalents and other		36		—		—		36		11		—		—		11
Total assets	$	4,253	$	2,667	$	211	$	7,131	$	2,258	$	1,108	$	59	$	3,425
Liabilities
Derivatives:
Commodity	$	—	$	388	$	5	$	393	$	—	$	177	$	4	$	181
Interest rate		—		403		—		403		—		62		—		62
Foreign currency exchange rate		—		93		—		93		—		93		—		93
Total liabilities	$	—	$	884	$	5	$	889	$	—	$	332	$	4	$	336
December 31, 2022
Assets
Derivatives:
Commodity	$	—	$	332	$	437	$	769	$	—	$	32	$	236	$	268
Interest rate		—		1,407		—		1,407		—		614		—		614
Investments(1):
Equity securities:
U.S.		3,810		—		—		3,810		2,028		—		—		2,028
Fixed income:
Corporate debt instruments		—		576		—		576		—		360		—		360
Government securities		161		1,059		—		1,220		90		542		—		632
Total assets	$	3,971	$	3,374	$	437	$	7,782	$	2,118	$	1,548	$	236	$	3,902
Liabilities
Derivatives:
Commodity	$	—	$	911	$	15	$	926	$	—	$	333	$	15	$	348
Interest rate		—		377		—		377		—		7		—		7
Foreign currency exchange rate		—		101		—		101		—		101		—		101
Total liabilities	$	—	$	1,389	$	15	$	1,404	$	—	$	441	$	15	$	456

(1)Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $381 million and $404 million of assets at Dominion Energy, inclusive of $152 million and $161 million at Virginia Power, at March 31, 2023 and December 31, 2022, 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 the Companies' assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

	Dominion Energy						Virginia Power
Three Months Ended March 31,	2023			2022			2023			2022
(millions)
Beginning balance	$	422		$	222		$	221		$	102
Total realized and unrealized gains (losses):
Included in earnings:
Electric fuel and other energy-related purchases		(51	)		48			(52	)		45
Included in regulatory assets/liabilities		(216	)		(20	)		(166	)		(80	)
Settlements		35			(48	)		36			(45	)
Purchases		16			—			16			—
Transfers out of Level 3		—			—			—			—
Ending balance	$	206		$	202		$	55		$	22

Dominion Energy had less than $1 million of unrealized gains and losses included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three months ended March 31, 2023 and no such amounts for the three months ended March 31, 2022. Virginia Power had no such amounts for the three months ended March 31, 2023 and 2022.

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:

	Dominion Energy				Virginia Power
	Carrying Amount		Estimated Fair Value(1)		Carrying Amount		Estimated Fair Value(1)
(millions)
March 31, 2023
Long-term debt(2)	$	41,920	$	39,771	$	16,400	$	15,314
Supplemental credit facility borrowings		900		900
Junior subordinated notes(2)		1,387		1,350
December 31, 2022
Long-term debt(2)	$	39,680	$	36,426	$	15,616	$	14,067
Supplemental credit facility borrowings		450		450
Junior subordinated notes(2)		1,387		1,340

(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.