Operating Segments

9 Months Ended

Sep. 30, 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 effective September 2023 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
Dominion Energy South Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted Energy(2)	Nonregulated electric generation fleet(3)	X

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

(2)Includes renewable natural gas 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 effective September 2023 includes its corporate, service company and other functions (including unallocated debt) as well as its noncontrolling interest in Dominion Privatization, its noncontrolling interest in Wrangler (through March 2022) and Hope (through August 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 operations included in the East Ohio, PSNC and Questar Gas Transactions, its noncontrolling interest in Cove Point and gas transmission and storage operations, including its noncontrolling interest in Atlantic Coast Pipeline, reported as discontinued operations which are discussed in Notes 3 and 10 as well as 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 nine months ended September 30, 2023, Dominion Energy reported after-tax net income of $26 million in the Corporate and Other segment, including $231 million of after-tax net income for specific items with $245 million of after-tax net income attributable to its operating segments. In the nine months ended September 30, 2022, Dominion Energy reported after-tax net expenses of $1.0 billion in the Corporate and Other segment, including $1.0 billion of after-tax net expenses for specific items with $1.9 billion 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 $335 million ($255 million after-tax) gain related to economic hedging activities, attributable to Contracted Energy;

•A $183 million ($142 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

•Contracted Energy ($124 million after-tax); and

•Dominion Energy Virginia ($18 million after-tax);

•A $183 million ($136 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;

•A $36 million ($27 million after-tax) charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023, attributable to Dominion Energy Virginia; and

•A $31 million ($23 million after-tax) benefit related to real estate transactions, including gains on the transfer of property to satisfy litigation associated with the NND Project, attributable to Dominion Energy South Carolina.

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 $691 million ($536 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

•Contracted Energy ($465 million after-tax); and

•Dominion Energy Virginia ($71 million after-tax);

•A $649 million ($513 million after-tax) loss associated with the sale of Kewaunee, attributable to Contracted Energy;

•A $391 million ($296 million after-tax) loss related to economic hedging activities, attributable to Contracted Energy;

•A $213 million ($159 million after-tax) charge for RGGI compliance costs deemed recovered through base rates, attributable to Dominion Energy Virginia;

•A $191 million ($142 million after-tax) charge in connection with a comprehensive settlement agreement for Virginia fuel expenses, attributable to Dominion Energy Virginia;

•A $183 million ($136 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;

•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; and

•A $60 million ($45 million after-tax) charge for dismantling costs associated with certain retired electric generation facilities, attributable to Dominion Energy Virginia.

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

	Dominion Energy Virginia			Dominion Energy South Carolina		Contracted Energy		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended September 30, 2023
Total revenue from external       customers	$	2,649		$	944	$	226	$	(9	)	$	—		$	3,810
Intersegment revenue		(4	)		1		6		231			(234	)		—
Total operating revenue		2,645			945		232		222			(234	)		3,810
Net loss from discontinued       operations		—			—		—		(554	)		—			(554	)
Net income (loss) attributable to       Dominion Energy		532			143		54		(566	)		—			163
Three Months Ended September 30, 2022
Total revenue from external       customers	$	2,870		$	915	$	240	$	(62	)	$	—		$	3,963
Intersegment revenue		(5	)		2		5		206			(208	)		—
Total operating revenue		2,865			917		245		144			(208	)		3,963
Net income from discontinued       operations		—			—		—		152			—			152
Net income (loss) attributable to       Dominion Energy		618			175		65		(80	)		—			778
Nine Months Ended September 30, 2023
Total revenue from external      customers	$	7,285		$	2,559	$	660	$	355		$	—		$	10,859
Intersegment revenue		(5	)		4		14		691			(704	)		—
Total operating revenue		7,280			2,563		674		1,046			(704	)		10,859
Net loss from discontinued      operations		—			—		—		(105	)		—			(105	)
Net income attributable to      Dominion Energy		1,308			302		123		26			—			1,759
Nine Months Ended September 30, 2022
Total revenue from external      customers	$	7,212		$	2,525	$	645	$	(247	)	$	—		$	10,135
Intersegment revenue		(12	)		6		15		625			(634	)		—
Total operating revenue		7,200			2,531		660		378			(634	)		10,135
Net income from discontinued      operations		—			—		—		775			—			775
Net income (loss) attributable to      Dominion Energy		1,576			408		95		(1,043	)		—			1,036

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 nine months ended September 30, 2023, Virginia Power reported after-tax net expenses of $150 million in the Corporate and Other segment, including $156 million of after-tax net expenses for specific items with $154 million of after-tax net expenses attributable to its operating segment. In the nine months ended September 30, 2022, Virginia Power reported after-tax net expenses of $601 million in the Corporate and Other segment, including $641 million of after-tax net expenses for specific items with $635 million of after-tax net expenses 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 items:

•A $183 million ($136 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review;

•A $36 million ($27 million after-tax) charge for the write-off of certain previously deferred amounts related to the cessation of certain riders effective July 2023; and

•A $24 million ($18 million after-tax) gain related to investments in nuclear decommissioning trust funds.

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 $213 million ($159 million after-tax) charge for RGGI compliance costs deemed recovered through base rates;

•A $191 million ($142 million after-tax) charge in connection with a comprehensive settlement agreement for Virginia fuel expenses;

•A $183 million ($136 million after-tax) charge for amortization of a regulatory asset established in connection with the settlement of the 2021 Triennial Review;

•A $96 million ($71 million after-tax) loss related to investments in nuclear decommissioning trust funds;

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

•A $60 million ($45 million after-tax) charge for dismantling costs associated with certain retired electric generation facilities.

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

	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended September 30, 2023
Operating revenue	$	2,645	$	—		$	2,645
Net income (loss)		532		(59	)		473
Three Months Ended September 30, 2022
Operating revenue	$	2,865	$	10		$	2,875
Net income (loss)		618		(47	)		571
Nine Months Ended September 30, 2023
Operating revenue	$	7,280	$	—		$	7,280
Net income (loss)		1,308		(150	)		1,158
Nine Months Ended September 30, 2022
Operating revenue	$	7,200	$	17		$	7,217
Net income (loss)		1,576		(601	)		975