XML 48 R40.htm IDEA: XBRL DOCUMENT v3.23.3
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2023
Fair Value Inputs, Assets, Quantitative Information

The following table presents the Companies' quantitative information about Level 3 fair value measurements at June 30, 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:

 

 

 

 

 

 

 

 

 

 

 

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

$

141

 

25-138

47

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Option model

Market price
   (per Dth)

(3)

 

15

 

1-8

4

 

 

15

 

1-8

4

 

Price volatility

(4)

 

 

19%-72%

51%

 

 

 

19%-72%

51%

Total assets

 

 

 

$

156

 

 

 

 

$

15

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Discounted
   cash flow

Market price
   (per Dth)

(3)

$

18

 

(2)-2

(1)

 

$

18

 

(2)-2

(1)

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

4

 

32-138

64

 

 

 

Total
   liabilities

 

 

 

$

22

 

 

 

 

$

18

 

 

 

(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

1

 

 

$

194

 

 

$

156

 

 

$

351

 

 

$

1

 

 

$

73

 

 

$

15

 

 

$

89

 

Interest rate

 

 

 

 

 

904

 

 

 

 

 

 

904

 

 

 

 

 

 

135

 

 

 

 

 

 

135

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

4,354

 

 

 

 

 

 

 

 

 

4,354

 

 

 

2,317

 

 

 

 

 

 

 

 

 

2,317

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

 

 

 

539

 

 

 

 

 

 

539

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Government securities

 

 

170

 

 

 

1,144

 

 

 

 

 

 

1,314

 

 

 

90

 

 

 

619

 

 

 

 

 

 

709

 

Cash equivalents and other

 

 

27

 

 

 

 

 

 

 

 

 

27

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Total assets

 

$

4,552

 

 

$

2,781

 

 

$

156

 

 

$

7,489

 

 

$

2,409

 

 

$

1,150

 

 

$

15

 

 

$

3,574

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

332

 

 

$

22

 

 

$

354

 

 

$

 

 

$

150

 

 

$

18

 

 

$

168

 

Interest rate

 

 

 

 

 

381

 

 

 

 

 

 

381

 

 

 

 

 

 

11

 

 

 

 

 

 

11

 

Foreign currency exchange rate

 

 

 

 

 

59

 

 

 

 

 

 

59

 

 

 

 

 

 

59

 

 

 

 

 

 

59

 

Total liabilities

 

$

 

 

$

772

 

 

$

22

 

 

$

794

 

 

$

 

 

$

220

 

 

$

18

 

 

$

238

 

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 $375 million and $404 million of assets at Dominion Energy, inclusive of $152 million and $161 million at Virginia Power, at June 30, 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

 

 

 

Quarter-to-Date

 

 

Year-to-Date

 

 

Quarter-to-Date

 

 

Year-to-Date

 

Period Ended June 30,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

206

 

 

$

202

 

 

$

422

 

 

$

222

 

 

$

55

 

 

$

22

 

 

$

221

 

 

$

102

 

Total realized and unrealized gains
    (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-
related
 purchases

 

 

(36

)

 

 

117

 

 

 

(87

)

 

 

165

 

 

 

(36

)

 

 

106

 

 

 

(88

)

 

 

151

 

Included in regulatory assets/
    liabilities

 

 

(74

)

 

 

261

 

 

 

(290

)

 

 

241

 

 

 

(58

)

 

 

206

 

 

 

(224

)

 

 

126

 

Settlements

 

 

36

 

 

 

(117

)

 

 

71

 

 

 

(165

)

 

 

36

 

 

 

(106

)

 

 

72

 

 

 

(151

)

Purchases

 

 

 

 

 

17

 

 

 

16

 

 

 

17

 

 

 

 

 

 

17

 

 

 

16

 

 

 

17

 

Ending balance

 

$

134

 

 

$

480

 

 

$

134

 

 

$

480

 

 

$

(3

)

 

$

245

 

 

$

(3

)

 

$

245

 

Dominion Energy had $2 million of unrealized gains included in earnings in the Level 3 fair value category related to assets/liabilities still held at the reporting date for the three and six months ended June 30, 2023 and no unrealized gains or losses for the three and six months ended June 30, 2022. Virginia Power had no unrealized gains or losses for the three and six months ended June 30, 2023 and June 30, 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)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

41,887

 

 

$

38,876

 

 

$

16,399

 

 

$

14,909

 

Supplemental credit facility borrowings

 

 

450

 

 

 

450

 

 

 

 

 

 

 

Junior subordinated notes(2)

 

 

1,387

 

 

 

1,349

 

 

 

 

 

 

 

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 presented in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. Additionally, the Dominion Energy carrying amount includes portions classified as held for sale and presented in current liabilities held for sale and noncurrent liabilities held for sale.