XML 55 R42.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Inputs, Assets, Quantitative Information

The following table presents the Companies’ quantitative information about Level 3 fair value measurements at March 31, 2024. 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)

$

5

 

(2)-2

—

 

$

5

 

(2)-2

—

FTRs

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

2

 

(1)-3

1

 

 

2

 

(1)-3

1

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

209

 

24-111

51

 

 

 

 

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Option model

Market price
   (per Dth)

(3)

 

49

 

1-7

3

 

 

23

 

1-7

3

 

Price volatility

(4)

 

 

10%-75%

46%

 

 

 

23%-73%

52%

Total assets

 

 

 

$

265

 

 

 

 

$

30

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

Discounted
   cash flow

Market price
   (per Dth)

(3)

$

4

 

(2)-0

(1)

 

$

4

 

(2)-0

(1)

FTRs

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

64

 

(1)-4

2

 

 

64

 

(1)-4

2

Electricity

Discounted
   cash flow

Market price
   (per MWh)

(3)

 

7

 

24-115

63

 

 

 

 

 

Total liabilities

 

 

$

75

 

 

 

 

$

68

 

 

 
(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, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

281

 

 

$

265

 

 

$

546

 

 

$

—

 

 

$

74

 

 

$

30

 

 

$

104

 

Interest rate

 

 

—

 

 

 

895

 

 

 

—

 

 

 

895

 

 

 

—

 

 

 

172

 

 

 

—

 

 

 

172

 

Foreign currency exchange rate

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

4,970

 

 

 

—

 

 

 

—

 

 

 

4,970

 

 

 

2,568

 

 

 

—

 

 

 

—

 

 

 

2,568

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

552

 

 

 

—

 

 

 

552

 

 

 

—

 

 

 

300

 

 

 

—

 

 

 

300

 

Government securities

 

 

218

 

 

 

1,200

 

 

 

—

 

 

 

1,418

 

 

 

129

 

 

 

667

 

 

 

—

 

 

 

796

 

Other

 

 

222

 

 

 

—

 

 

 

—

 

 

 

222

 

 

 

176

 

 

 

—

 

 

 

—

 

 

 

176

 

Cash equivalents and other

 

 

2

 

 

 

3

 

 

 

—

 

 

 

5

 

 

 

2

 

 

 

1

 

 

 

—

 

 

 

3

 

Total assets

 

$

5,412

 

 

$

2,934

 

 

$

265

 

 

$

8,611

 

 

$

2,875

 

 

$

1,217

 

 

$

30

 

 

$

4,122

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

156

 

 

$

75

 

 

$

231

 

 

$

—

 

 

$

92

 

 

$

68

 

 

$

160

 

Interest rate

 

 

—

 

 

 

483

 

 

 

—

 

 

 

483

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

21

 

Foreign currency exchange rate

 

 

—

 

 

 

108

 

 

 

—

 

 

 

108

 

 

 

—

 

 

 

108

 

 

 

—

 

 

 

108

 

Total liabilities

 

$

—

 

 

$

747

 

 

$

75

 

 

$

822

 

 

$

—

 

 

$

221

 

 

$

68

 

 

$

289

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

325

 

 

$

225

 

 

$

550

 

 

$

—

 

 

$

96

 

 

$

21

 

 

$

117

 

Interest rate

 

 

—

 

 

 

800

 

 

 

—

 

 

 

800

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

181

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

4,527

 

 

 

—

 

 

 

—

 

 

 

4,527

 

 

 

2,362

 

 

 

—

 

 

 

—

 

 

 

2,362

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

500

 

 

 

—

 

 

 

500

 

 

 

—

 

 

 

274

 

 

 

—

 

 

 

274

 

Government securities

 

 

219

 

 

 

1,238

 

 

 

—

 

 

 

1,457

 

 

 

129

 

 

 

687

 

 

 

—

 

 

 

816

 

Cash equivalents and other

 

 

31

 

 

 

—

 

 

 

—

 

 

 

31

 

 

 

20

 

 

 

—

 

 

 

—

 

 

 

20

 

Total assets

 

$

4,777

 

 

$

2,863

 

 

$

225

 

 

$

7,865

 

 

$

2,511

 

 

$

1,238

 

 

$

21

 

 

$

3,770

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

160

 

 

$

139

 

 

$

299

 

 

$

—

 

 

$

95

 

 

$

137

 

 

$

232

 

Interest rate

 

 

—

 

 

 

359

 

 

 

—

 

 

 

359

 

 

 

—

 

 

 

45

 

 

 

—

 

 

 

45

 

Foreign currency exchange rate

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

 

 

—

 

 

 

39

 

Total liabilities

 

$

—

 

 

$

558

 

 

$

139

 

 

$

697

 

 

$

—

 

 

$

179

 

 

$

137

 

 

$

316

 
(1)
Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $294 million and $457 million of assets at Dominion Energy, inclusive of $94 million and $217 million at Virginia Power, at March 31, 2024 and December 31, 2023, 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

 

Period Ended March 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

86

 

 

$

422

 

 

$

(116

)

 

$

221

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

(8

)

 

 

—

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

(121

)

 

 

(51

)

 

 

(119

)

 

 

(52

)

Discontinued operations

 

 

(1

)

 

 

—

 

 

 

 

 

 

 

Included in regulatory assets/liabilities

 

 

131

 

 

 

(216

)

 

 

77

 

 

 

(166

)

Settlements

 

 

76

 

 

 

35

 

 

 

100

 

 

 

36

 

Purchases

 

 

27

 

 

 

16

 

 

 

20

 

 

 

16

 

Ending balance

 

$

190

 

 

$

206

 

 

$

(38

)

 

$

55

 
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, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

36,529

 

 

$

34,197

 

 

$

18,032

 

 

$

16,665

 

Supplemental credit facility borrowings

 

 

450

 

 

 

450

 

 

 

 

 

 

 

Securitization bonds(3)

 

 

1,282

 

 

 

1,280

 

 

 

1,282

 

 

 

1,280

 

Junior subordinated notes(2)

 

 

1,388

 

 

 

1,389

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)

 

$

42,526

 

 

$

40,539

 

 

$

17,392

 

 

$

16,418

 

Supplemental credit facility borrowings

 

 

450

 

 

 

450

 

 

 

 

 

 

 

Junior subordinated notes(2)

 

 

1,388

 

 

 

1,374

 

 

 

 

 

 

 

 

(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. There were no fair value hedges associated with fixed-rate debt at March 31, 2024 and December 31, 2023. Additionally, Dominion Energy carrying amounts include portions classified as current liabilities held for sale at both March 31, 2024 and December 31, 2023.
(3)
Carrying amount includes current portions included in securities due within one year.