Long-Term Debt

12 Months Ended

Dec. 31, 2023

NOTE 18. LONG-TERM DEBT


	2023 Weighted- average Coupon(1)			Dominion Energy						Virginia Power
At December 31,				2023			2022			2023			2022
(millions, except percentages)
Term Loans, variable rate, due 2024		6.52	%	$	4,750		$	—
Sustainability Revolving Credit Agreement, variable rate, due 2024(2)		6.28	%		450			450
Unsecured Senior Notes:
Variable rate, due 2023					—			1,000
1.45% to 7.00%, due 2023 to 2052(3)		4.14	%		11,476			12,476
Unsecured Junior Subordinated Notes:
3.071% due 2024		3.07	%		700			700
Payable to Affiliated Trust, 8.4%, due 2031		8.40	%		10			10
Enhanced Junior Subordinated Notes:
5.75% due 2054		5.75	%		685			685
Virginia Electric and Power Company:
Unsecured Senior Notes, 2.30% to 8.875%, due 2023 to 2053		4.25	%		16,935			15,135		$	16,935		$	15,135
Tax-Exempt Financings, 0.75% to 3.65%, due 2032 to 2041(4)		1.77	%		625			625			625			625
DECP Holdings, Term Loan, variable rate, due 2024(5)					—			2,349
DESC:
First Mortgage Bonds, 2.30% to 6.625%, due 2028 to 2065		5.23	%		4,134			3,634
Tax-Exempt Financings(6):
Variable rate due 2038		3.87	%		35			35
3.625% and 4.00%, due 2028 and 2033		3.90	%		54			54
GENCO, variable rate due 2038		3.87	%		33			33
Other		3.61	%		1			1
Secured Senior Notes, 4.82%, due 2042(7)		4.82	%		291			308
Tax-Exempt Financing, 3.80% due 2033		3.80	%		27			27
Total Principal				$	40,206		$	37,522		$	17,560		$	15,760
Securities due within one year and supplemental credit facility borrowings(7)(8)					(6,839	)		(2,848	)		(350	)		(700	)
Unamortized discount, premium and debt issuance costs, net					(311	)		(322	)		(167	)		(144	)
Derivative restructuring(9)					—			141			—			—
Finance leases					192			91			72			65
Total long-term debt				$	33,248		$	34,584		$	17,115		$	14,981

(1)

Represents weighted-average coupon rates for debt outstanding as of December 31, 2023.

(2)

This $900 million supplemental credit facility, entered in 2021, offers a reduced interest rate margin with respect to borrowed amounts allocated to certain environmental sustainability or social investment initiatives. Proceeds of the supplemental credit facility also may be used for general corporate purposes, but such proceeds are not eligible for a reduced interest rate margin. In May 2022, Dominion Energy borrowed $900 million. The proceeds from these borrowings were used to support environmental sustainability and social investment initiatives ($450 million) and for general corporate purposes ($450 million). In June 2022, Dominion Energy repaid $450 million borrowed for general corporate purposes. In March 2023, Dominion Energy borrowed $450 million with the proceeds used for general corporate purposes. In April 2023, Dominion Energy repaid $450 million borrowed for general corporate purposes. In September 2023, Dominion Energy borrowed $450 million under this facility with the proceeds used for general corporate purposes. In October 2023, Dominion Energy repaid $450 million borrowed for general corporate purposes.

(3)

Includes debt assumed by Dominion Energy from the merger of its former CNG subsidiary.

(4)

These financings relate to certain pollution control equipment at Virginia Power’s generating facilities.

(5)

In connection with the sale of Dominion Energy’s interest in Cove Point, described further in Note 9, DECP Holdings’ outstanding term loan balance of $2.2 billion was repaid in September 2023. This term loan was scheduled to mature in December 2024.

(6)

Industrial revenue bonds totaling $68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2024.

(7)

Represents debt associated with Eagle Solar. In February 2024, Eagle Solar redeemed the remaining principal outstanding of $279 million. The debt which otherwise would have matured in 2042 was nonrecourse to Dominion Energy and was secured by Eagle Solar's interest in certain solar facilities. As such, these borrowings are presented within securities due within one year in Dominion Energy’s Consolidated Balance Sheets at December 31, 2023.

(8)

Dominion Energy and Virginia Power’s weighted-average rate for securities due within one year was 5.79% and 3.45%, respectively, as of December 31, 2023.

(9)

Excludes $143 million at December 31, 2023 for Dominion Energy and $447 million at December 31, 2022, for both Dominion Energy and Virginia Power, representing the current portion which is presented within securities due within one year in the Companies’ Consolidated Balance Sheets.

Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt, at December 31, 2023 were as follows:


	2024			2025			2026			2027			2028			Thereafter			Total
(millions, except percentages)
Dominion Energy
Term Loans	$	4,750		$	—		$	—		$	—		$	—		$	—		$	4,750
Sustainability Revolving Credit Agreement		450			—			—			—			—			—			450
First Mortgage Bonds		—			—			—			—			53			4,081			4,134
Unsecured Senior Notes		650			1,500			2,120			1,783			1,195			21,164			28,412
Secured Senior Notes(1)		31			19			20			21			22			178			291
Tax-Exempt Financings		—			—			—			—			39			735			774
Unsecured Junior Subordinated Notes Payable to Affiliated Trusts		—			—			—			—			—			10			10
Unsecured Junior Subordinated Notes		700			—			—			—			—			—			700
Enhanced Junior Subordinated Notes		—			—			—			—			—			685			685
Total	$	6,581		$	1,519		$	2,140		$	1,804		$	1,309		$	26,853		$	40,206
Weighted-average Coupon		5.83	%		3.57	%		2.64	%		3.77	%		4.01	%		4.57	%
Virginia Power
Unsecured Senior Notes	$	350		$	350		$	1,150		$	1,350		$	700		$	13,035		$	16,935
Tax-Exempt Financings		—			—			—			—			—			625			625
Total	$	350		$	350		$	1,150		$	1,350		$	700		$	13,660		$	17,560
Weighted-average Coupon		3.45	%		3.10	%		3.08	%		3.61	%		3.80	%		4.37	%

(1)

The Companies’ credit facilities and debt agreements, both short-term and long-term, contain customary covenants and default provisions. As of December 31, 2023, there were no events of default under these covenants.

Senior Note Issuances

In January 2024, Virginia Power issued $500 million of 5.00% senior notes and $500 million of 5.35% senior notes that mature in 2034 and 2054, respectively. The proceeds were used for general corporate purposes and/or to repay short-term debt.

Senior Secured Deferred Fuel Cost Bonds

In February 2024, VPFS issued $439 million of 5.088% senior secured deferred fuel cost bonds with a scheduled final payment date of May 2027 and a final maturity date of May 2029 and $843 million of 4.877% senior secured deferred fuel cost bonds with a scheduled final payment date of May 2031 and a final maturity date of May 2033. The full principal of each tranche of bonds is payable semi-annually according to a sinking fund schedule. Interest on each tranche of bonds accrues from the date of issuance and is payable semi-annually. Payment on the bonds commences in November 2024. The scheduled final payment date for the applicable tranche is the date by which all interest and principal for such tranche is expected to be paid in full. The final maturity date of the applicable tranche is the legal maturity date for such tranche. The bonds are not subject to optional redemption prior to their stated

maturity. VPFS as the issuer of the bonds is a bankruptcy remote, wholly-owned special purpose subsidiary of Virginia Power formed in October 2023 for the sole purpose of securitizing certain of Virginia Power’s under-recovered deferred fuel balance through the issuance of deferred fuel cost bonds. VPFS is considered to be a VIE primarily because its equity capitalization is insufficient to support its operations. Virginia Power is considered the primary beneficiary and consolidates VPFS as it has the power to direct the most significant activities of VPFS, including performing servicing activities such as billing and collecting the deferred fuel cost charges. Pursuant to the financing order issued by the Virginia Commission in November 2023, Virginia Power sold to VPFS its right to receive revenues from the non-bypassable deferred fuel cost charges from Virginia Power’s retail customers in Virginia, except for certain exempt customers, as deferred fuel cost property. The securitization bondholders have recourse solely with respect to the deferred fuel cost property owned by VPFS and no recourse to any other assets of Dominion Energy or Virginia Power. Any deferred fuel cost charges collected by Virginia Power to pay for bond servicing and other qualified costs are deferred fuel cost property solely owned by VPFS. Any deferred fuel cost charges collected by Virginia Power are remitted to a trustee and are not available to other creditors of Virginia Power or Dominion Energy.

Enhanced Junior Subordinated Notes

In October 2014, Dominion Energy issued $685 million of October 2014 hybrids that will bear interest at 5.75% per year until October 1, 2024. Thereafter, provided the October 2014 hybrids remain outstanding, interest will accrue at a SOFR-based rate to be determined at that time.

In July 2016, Dominion Energy issued $800 million of 5.25% July 2016 hybrids. In August 2021, Dominion Energy redeemed the remaining principal outstanding of $800 million of its July 2016 hybrids, which would have otherwise matured in 2076 and were listed on the NYSE under the symbol DRUA. Expenses related to the early redemption of the hybrids were $23 million reflected within interest and related charges in the Consolidated Statements of Income for the year ended December 31, 2021.

Dominion Energy may defer interest payments on the hybrids on one or more occasions for up to 10 consecutive years. If the interest payments on the hybrids are deferred, Dominion Energy may not make distributions related to its capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments during the deferral period. Also, during the deferral period, Dominion Energy may not make any payments on or redeem or repurchase any debt securities that are equal in right of payment with, or subordinated to, the hybrids.

Derivative Restructuring

In June 2020, Dominion Energy amended a portfolio of interest rate swaps with a notional value of $2.0 billion, extending the mandatory termination dates from 2020 and 2021 to December 2024. As a result of this noncash financing activity with an embedded interest rate swap, Dominion Energy recorded $326 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 1.19%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception. In August 2021, Dominion Energy settled certain of the outstanding interest rate swaps which would have otherwise matured in December 2024, resulting in a $39 million reduction in other long-term debt. In August 2022, Dominion Energy settled certain of the outstanding interest rate swaps which would have otherwise matured in December 2024, resulting in a $154 million reduction in other long-term debt.

In August 2020, Virginia Power amended a portfolio of interest rate swaps with a notional value of $900 million, extending the mandatory termination dates from 2020 to December 2023. As a result of this noncash financing activity with an embedded interest rate swap, Virginia Power recorded $443 million in other long-term debt representing the net present value of the initial fair value measurement of the new contract with an imputed interest rate of 0.34%, in its Consolidated Balance Sheets with an embedded interest rate derivative that had a fair value of zero at inception. The interest rate swaps were in a hedge relationship prior to the transaction. Virginia Power de-designated the hedge relationships prior to the transaction and then designated the new interest rate swap in a hedge relationship after the transaction. In March 2023, Virginia Power settled the remaining outstanding interest rate swaps which would have otherwise matured in December 2023, resulting in a $448 million reduction in securities due within one year.