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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension Plan and Other Postretirement Benefit Plan Obligations and Plan Assets and Includes a Statement of the Plans Funded Status

The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy:

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

Changes in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

8,066

 

 

$

10,890

 

 

$

1,127

 

 

$

1,537

 

Service cost

 

 

96

 

 

 

142

 

 

 

14

 

 

 

22

 

Interest cost

 

 

442

 

 

 

333

 

 

 

61

 

 

 

45

 

Benefits paid

 

 

(493

)

 

 

(511

)

 

 

(94

)

 

 

(97

)

Actuarial (gain) loss during the year

 

 

322

 

 

 

(2,716

)

 

 

1

 

 

 

(361

)

Plan amendments

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

Sale of Hope

 

 

—

 

 

 

(64

)

 

 

—

 

 

 

(19

)

Settlements and curtailments(1)

 

 

(4

)

 

 

(8

)

 

 

—

 

 

 

—

 

Benefit obligation at end of year

 

$

8,431

 

 

$

8,066

 

 

$

1,109

 

 

$

1,127

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

8,694

 

 

$

11,945

 

 

$

1,845

 

 

$

2,323

 

Actual return gain (loss) on plan assets

 

 

882

 

 

 

(2,556

)

 

 

277

 

 

 

(416

)

Employer contributions

 

 

8

 

 

 

9

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(493

)

 

 

(511

)

 

 

(60

)

 

 

(62

)

Sale of Hope

 

 

—

 

 

 

(188

)

 

 

—

 

 

 

—

 

Settlements(2)

 

 

(4

)

 

 

(5

)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

9,087

 

 

$

8,694

 

 

$

2,062

 

 

$

1,845

 

Funded status at end of year

 

$

656

 

 

$

628

 

 

$

953

 

 

$

718

 

Amounts recognized in the Consolidated Balance Sheets
   at December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent pension and other postretirement benefit assets

 

$

647

 

 

$

580

 

 

$

1,132

 

 

$

899

 

Noncurrent assets held for sale

 

 

308

 

 

 

295

 

 

 

13

 

 

 

11

 

Other current liabilities

 

 

(27

)

 

 

(12

)

 

 

(13

)

 

 

(13

)

Noncurrent pension and other postretirement benefit liabilities(3)

 

 

(237

)

 

 

(196

)

 

 

(179

)

 

 

(179

)

Noncurrent liabilities held for sale

 

 

(35

)

 

 

(39

)

 

 

—

 

 

 

—

 

Net amount recognized

 

$

656

 

 

$

628

 

 

$

953

 

 

$

718

 

Significant assumptions used to determine benefit
   obligations as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.37%-5.47%

 

 

5.65%-5.75%

 

 

5.40%-5.42%

 

 

5.69%-5.70%

 

Weighted average rate of increase for compensation

 

4.28%

 

 

4.38%

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

4.12%-4.22%

 

 

4.40%-4.50%

 

 

n/a

 

 

n/a

 

(1) 2023 and 2022 amounts include settlements of nonqualified pension obligations. 2022 amount includes a curtailment for Hope.

(2) 2023 and 2022 amounts relate to settlements of nonqualified pension obligations.

(3) Presented within other deferred credits and other liabilities in Dominion Energy's Consolidated Balance Sheets.
Benefit Obligation in Excess of Plan Asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy:

 

 

 

Pension Benefits

 

 

Other Postretirement
Benefits

 

As of December 31,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation

 

$

7,996

 

 

$

7,655

 

 

$

195

 

 

$

197

 

Fair value of plan assets

 

 

7,697

 

 

 

7,410

 

 

 

4

 

 

 

5

 
Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:

 

As of December 31,

 

2023

 

 

2022

 

(millions)

 

 

 

 

 

 

Accumulated benefit obligation

 

$

792

 

 

$

776

 

Fair value of plan assets

 

 

654

 

 

 

623

 
Benefit Payments Expected Future Service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy’s plans:

 

 

 

Estimated Future Benefit Payments

 

 

 

Pension Benefits

 

 

Other Postretirement
Benefits

 

(millions)

 

 

 

 

 

 

2024

 

$

556

 

 

$

94

 

2025

 

 

546

 

 

 

91

 

2026

 

 

554

 

 

 

90

 

2027

 

 

562

 

 

 

89

 

2028

 

 

571

 

 

 

87

 

2029-2033

 

 

2,958

 

 

 

418

 
Fair Values of Pension and Post Retirement Plan Assets by Asset Category

The fair values of Dominion Energy’s pension plan assets by asset category are as follows:

 

At December 31,

 

2023

 

 

2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

21

 

 

$

9

 

 

$

—

 

 

$

30

 

 

$

14

 

 

$

11

 

 

$

—

 

 

$

25

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

1,145

 

 

 

—

 

 

 

—

 

 

 

1,145

 

 

 

1,653

 

 

 

170

 

 

 

—

 

 

 

1,823

 

International

 

 

944

 

 

 

2

 

 

 

—

 

 

 

946

 

 

 

1,034

 

 

 

5

 

 

 

—

 

 

 

1,039

 

Insurance contracts

 

 

—

 

 

 

162

 

 

 

—

 

 

 

162

 

 

 

—

 

 

 

166

 

 

 

—

 

 

 

166

 

Corporate debt instruments

 

 

74

 

 

 

750

 

 

 

—

 

 

 

824

 

 

 

65

 

 

 

805

 

 

 

—

 

 

 

870

 

Government securities

 

 

43

 

 

 

1,720

 

 

 

—

 

 

 

1,763

 

 

 

46

 

 

 

1,377

 

 

 

—

 

 

 

1,423

 

Total recorded at fair value

 

$

2,227

 

 

$

2,643

 

 

$

—

 

 

$

4,870

 

 

$

2,812

 

 

$

2,534

 

 

$

—

 

 

$

5,346

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commingled funds/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

2,012

 

 

 

 

 

 

 

 

 

 

 

 

1,780

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

67

 

 

 

 

 

 

 

 

 

 

 

 

66

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

1,395

 

 

 

 

 

 

 

 

 

 

 

 

1,284

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

192

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

239

 

 

 

 

 

 

 

 

 

 

 

 

2

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

$

3,949

 

 

 

 

 

 

 

 

 

 

 

$

3,324

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

$

8,819

 

 

 

 

 

 

 

 

 

 

 

$

8,670

 

 

(1)
No amounts of Dominion Energy preferred stock were held at December 31, 2023. Includes $170 million of Dominion Energy preferred stock at December 31, 2022.
(2)
These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.
(3)
Excludes net assets related to pending sales of securities of $298 million, net accrued income of $24 million, and includes net assets related to pending purchases of securities of $54 million at December 31, 2023. Excludes net assets related to pending sales of securities and advanced subscription of $177 million, net accrued income of $27 million, and includes net assets related to pending purchases of securities of $180 million at December 31, 2022.

The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:

 

 

At December 31,

 

2023

 

 

2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3

 

 

$

1

 

 

$

—

 

 

$

4

 

 

$

3

 

 

$

1

 

 

$

—

 

 

$

4

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

757

 

 

 

—

 

 

 

—

 

 

 

757

 

 

 

685

 

 

 

10

 

 

 

—

 

 

 

695

 

International

 

 

194

 

 

 

—

 

 

 

—

 

 

 

194

 

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

Insurance contracts

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

10

 

Corporate debt instruments

 

 

4

 

 

 

36

 

 

 

—

 

 

 

40

 

 

 

4

 

 

 

38

 

 

 

—

 

 

 

42

 

Government securities

 

 

3

 

 

 

100

 

 

 

—

 

 

 

103

 

 

 

3

 

 

 

79

 

 

 

—

 

 

 

82

 

Total recorded at fair value

 

$

961

 

 

$

147

 

 

$

—

 

 

$

1,108

 

 

$

876

 

 

$

138

 

 

$

—

 

 

$

1,014

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commingled funds/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

725

 

 

 

 

 

 

 

 

 

 

 

 

649

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

173

 

 

 

 

 

 

 

 

 

 

 

 

158

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

$

937

 

 

 

 

 

 

 

 

 

 

 

$

829

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

$

2,045

 

 

 

 

 

 

 

 

 

 

 

$

1,843

 

 

 

(1)
No amounts of Dominion Energy preferred stock were held at December 31, 2023. Includes $10 million of Dominion Energy preferred stock at December 31, 2022.
(2)
These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.
(3)
Excludes net assets related to pending sales of securities and advanced subscription of $17 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2023. Excludes net assets related to pending sales of securities and advanced subscription of $10 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $10 million at December 31, 2022.
Net Periodic Benefit (Credit) Cost and Amounts Recognized in Other Comprehensive Income and Regulatory Assets and Liabilities

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

96

 

 

$

142

 

 

$

170

 

 

$

14

 

 

$

22

 

 

$

25

 

Interest cost

 

 

442

 

 

 

333

 

 

 

317

 

 

 

61

 

 

 

45

 

 

 

46

 

Expected return on plan assets

 

 

(864

)

 

 

(886

)

 

 

(834

)

 

 

(151

)

 

 

(191

)

 

 

(173

)

Amortization of prior service (credit) cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(36

)

 

 

(38

)

 

 

(42

)

Amortization of net actuarial (gain) loss

 

 

—

 

 

 

159

 

 

 

193

 

 

 

(6

)

 

 

(2

)

 

 

4

 

Settlements, curtailments and special termination
   benefits(1)

 

 

1

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

(8

)

 

 

—

 

Net periodic benefit (credit) cost

 

$

(325

)

 

$

(252

)

 

$

(144

)

 

$

(118

)

 

$

(172

)

 

$

(140

)

Changes in plan assets and benefit obligations
   recognized in other comprehensive income
   and regulatory assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year net actuarial (gain) loss

 

$

304

 

 

$

726

 

 

$

(782

)

 

$

(125

)

 

$

246

 

 

$

(282

)

Prior service (credit) cost

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13

)

Settlements and curtailments(1)

 

 

—

 

 

 

(3

)

 

 

(36

)

 

 

—

 

 

 

10

 

 

 

—

 

Less amounts included in net periodic benefit
   cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of net actuarial gain (loss)

 

 

—

 

 

 

(159

)

 

 

(193

)

 

 

6

 

 

 

2

 

 

 

(4

)

Amortization of prior service credit (cost)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

36

 

 

 

38

 

 

 

42

 

Sale of Hope

 

 

—

 

 

 

(47

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total recognized in other comprehensive
   income and regulatory assets and liabilities

 

$

306

 

 

$

517

 

 

$

(1,011

)

 

$

(83

)

 

$

296

 

 

$

(257

)

Significant assumptions used to determine
   periodic cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

5.65%-5.75%

 

 

3.06%-3.19%

 

 

2.73%-3.29%

 

 

5.69%-5.70%

 

 

3.04%-5.03%

 

 

2.69%-2.80%

 

Expected long-term rate of return on plan assets

 

7.00%-8.35%

 

 

7.00%-8.35%

 

 

7.00%-8.45%

 

 

8.35%

 

 

8.35%

 

 

8.45%

 

Weighted average rate of increase for
   compensation

 

4.38%

 

 

4.51%

 

 

4.53%

 

 

n/a

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar
   plans

 

4.40%-4.50%

 

 

1.81%-1.94%

 

 

1.93%-2.15%

 

 

n/a

 

 

n/a

 

 

n/a

 

Healthcare cost trend rate(2)

 

 

 

 

 

 

 

 

 

 

7.00%

 

 

6.25%

 

 

6.25%

 

Rate to which the cost trend rate is assumed to
   decline (the ultimate trend rate)(2)

 

 

 

 

 

 

 

 

 

 

5.00%

 

 

5.00%

 

 

5.00%

 

Year that the rate reaches the ultimate trend rate(2)

 

 

 

 

 

 

 

 

 

 

2030

 

 

2026-2027

 

 

2026-2027

 
(1)
2023 and 2021 amounts relate primarily to the Dominion Energy executive nonqualified pension plan. 2022 amounts relate primarily to Dominion Energy’s sale of Hope.
(2)
Assumptions used to determine net periodic cost for the following year.
Components of AOCI and Regulatory Assets and Liabilities that have Not been Recognized as Components of Periodic Benefit (Credit) Cost

The components of AOCI and regulatory assets and liabilities for Dominion Energy’s plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:

 

 

Pension Benefits

 

 

Other
Postretirement
Benefits

 

At December 31,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

$

3,018

 

 

$

2,714

 

 

$

(35

)

 

$

84

 

Prior service (credit) cost

 

 

5

 

 

 

3

 

 

 

(121

)

 

 

(157

)

Total(1)

 

$

3,023

 

 

$

2,717

 

 

$

(156

)

 

$

(73

)
(1)
As of December 31, 2023, of the $3.0 billion and $(156) million related to pension benefits and other postretirement benefits, $1.8 billion and $(38) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities, except for $173 million presented in assets and liabilities held for sale. As of December 31, 2022, of the $2.7 billion and $(73) million related to pension benefits and other postretirement benefits, $1.7 billion and $14 million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities, except for $170 million presented in assets and liabilities held for sale.