XML 56 R43.htm IDEA: XBRL DOCUMENT

Derivatives and Hedge Accounting Activities (Tables)

3 Months Ended

Mar. 31, 2024

The tables below present the Companies’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in their Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:


	Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
March 31, 2024
Commodity contracts:
Over-the-counter	$	229	$	51	$	—	$	178	$	96	$	39	$	—	$	57
Exchange		114		65		—		49		4		4		—		—
Interest rate contracts:
Over-the-counter		895		311		—		584		172		2		—		170
Foreign currency exchange rate contracts:
Over-the-counter		3		3		—		—		3		3		—		—
Total derivatives, subject to a master netting or similar arrangement	$	1,241	$	430	$	—	$	811	$	275	$	48	$	—	$	227
December 31, 2023
Commodity contracts:
Over-the-counter	$	289	$	26	$	—	$	263	$	112	$	13	$	—	$	99
Exchange		118		33		15		70		4		3		—		1
Interest rate contracts:
Over-the-counter		800		191		—		609		181		11		—		170
Total derivatives, subject to a master netting or similar arrangement	$	1,207	$	250	$	15	$	942	$	297	$	27	$	—	$	270

(1)

Excludes derivative assets of $203 million and $143 million at Dominion Energy and $4 million and $1 million at Virginia Power at March 31, 2024 and December 31, 2023, respectively, which are not subject to master netting or other similar arrangements.

Offsetting Liabilities


	Dominion Energy Gross Amounts Not Offset in the Consolidated Balance Sheet								Virginia Power Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet(1)		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
March 31, 2024
Commodity contracts:
Over-the-counter	$	163	$	46	$	—	$	117	$	100	$	34	$	—	$	66
Exchange		65		65		—		—		4		4		—		—
Interest rate contracts:
Over-the-counter		483		316		—		167		21		7		—		14
Foreign currency exchange rate contracts:
Over-the-counter		108		3		—		105		108		3		—		105
Total derivatives, subject to a master netting or similar arrangement	$	819	$	430	$	—	$	389	$	233	$	48	$	—	$	185
December 31, 2023
Commodity contracts:
Over-the-counter	$	266	$	26	$	30	$	210	$	153	$	13	$	30	$	110
Exchange		33		33		—		—		3		3		—		—
Interest rate contracts:
Over-the-counter		359		186		—		173		45		6		—		39
Foreign currency exchange rate contracts:
Over-the-counter		39		5		—		34		39		5		—		34
Total derivatives, subject to a master netting or similar arrangement	$	697	$	250	$	30	$	417	$	240	$	27	$	30	$	183

(1)

Excludes derivative liabilities of $3 million at Dominion Energy at March 31, 2024 and $56 million and $76 million at Virginia Power at March 31, 2024 and December 31, 2023, respectively, which are not subject to master netting or similar arrangements. Dominion Energy did not have any derivative liabilities at December 31, 2023 which were not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of the Companies’ derivative activity at March 31, 2024. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.


	Dominion Energy				Virginia Power
	Current		Noncurrent		Current		Noncurrent
Natural Gas (bcf):
Fixed price(1)		43		14		41		14
Basis(2)		200		360		155		360
Electricity (MWh in millions):
Fixed price		18		37		8		7
FTRs		15		—		15		—
Interest rate(3) (in millions)	$	3,862	$	10,112	$	1,200	$	1,050
Foreign currency exchange rate(3) (in millions)
Danish Krone	1,628 kr.		2,237 kr.		1,628 kr.		2,237 kr.
Euro	€302		€1,551		€302		€1,551

(1)

Includes options at Dominion Energy.

(2)

Includes options.

(3)

Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to gains and losses on cash flow hedges included in AOCI in the Companies’ Consolidated Balance Sheets at March 31, 2024:


	Dominion Energy							Virginia Power
	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term	AOCI After-Tax		Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax		Maximum Term
(millions)
Interest rate	$	(202	)	$	(31	)	381 months	$	22	$	—	381 months
Total	$	(202	)	$	(31	)		$	22	$	—

Fair Value of Derivatives

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of the Companies’ derivatives and where they are presented in their Consolidated Balance Sheets:


	Dominion Energy						Virginia Power
	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value		Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
At March 31, 2024
ASSETS
Current Assets
Commodity	$	—	$	256	$	256	$	—	$	86	$	86
Interest rate		94		332		426		94		—		94
Foreign currency exchange rate		—		3		3		—		3		3
Total current derivative assets(1)		94		591		685		94		89		183
Noncurrent Assets
Commodity		—		290		290		—		18		18
Interest rate		78		391		469		78		—		78
Total noncurrent derivative assets(2)		78		681		759		78		18		96
Total derivative assets	$	172	$	1,272	$	1,444	$	172	$	107	$	279
LIABILITIES
Current Liabilities
Commodity	$	—	$	191	$	191	$	—	$	136	$	136
Interest rate		21		96		117		21		—		21
Foreign currency exchange rate		—		35		35		—		35		35
Total current derivative liabilities(3)		21		322		343		21		171		192
Noncurrent Liabilities
Commodity		—		40		40		—		24		24
Interest rate		—		366		366		—		—		—
Foreign currency exchange rate		—		73		73		—		73		73
Total noncurrent derivative liabilities(4)		—		479		479		—		97		97
Total derivative liabilities	$	21	$	801	$	822	$	21	$	268	$	289
December 31, 2023
ASSETS
Current Assets
Commodity	$	—	$	312	$	312	$	—	$	91	$	91
Interest rate		143		298		441		143		—		143
Total current derivative assets(1)		143		610		753		143		91		234
Noncurrent Assets
Commodity		—		238		238		—		26		26
Interest rate		38		321		359		38		—		38
Total noncurrent derivative assets(2)		38		559		597		38		26		64
Total derivative assets	$	181	$	1,169	$	1,350	$	181	$	117	$	298
LIABILITIES
Current Liabilities
Commodity	$	—	$	244	$	244	$	—	$	188	$	188
Interest rate		45		76		121		45		—		45
Foreign currency exchange rate		—		11		11		—		11		11
Total current derivative liabilities(3)		45		331		376		45		199		244
Noncurrent Liabilities
Commodity		—		55		55		—		44		44
Interest rate		—		238		238		—		—		—
Foreign currency exchange rate		—		28		28		—		28		28
Total noncurrent derivative liabilities(4)		—		321		321		—		72		72
Total derivative liabilities	$	45	$	652	$	697	$	45	$	271	$	316

(1)

Includes $23 million and $54 million recorded in current assets held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative assets presented in other current assets in the Companies’ Consolidated Balance Sheets.

(2)

Noncurrent derivative assets are presented in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(3)

Includes $1 million and $30 million recorded in current liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively, with the remaining current derivative liabilities presented in other current liabilities in the Companies’ Consolidated Balance Sheets.

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on the Companies’ derivatives, as well as where the associated activity is presented in their Consolidated Balance Sheets and Statements of Income.


	Dominion Energy									Virginia Power
Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)			Amount of Gain (Loss) Recognized in AOCI on Derivatives(1)			Amount of Gain (Loss) Reclassified from AOCI to Income		Increase (Decrease) in Derivatives Subject to Regulatory Treatment(2)
(millions)
Three Months Ended March 31, 2024
Derivative type and location of gains (losses):
Interest rate(3)	$	8		$	(11	)	$	88		$	8		$	—	$	88
Total	$	8		$	(11	)	$	88		$	8		$	—	$	88
Three Months Ended March 31, 2023
Derivative type and location of gains (losses):
Interest rate(3)	$	(12	)		(11	)	$	(120	)	$	(12	)	$	—	$	(120	)
Total	$	(12	)	$	(11	)	$	(120	)	$	(12	)	$	—	$	(120	)

(1)

Amounts deferred into AOCI have no associated effect in the Companies’ Consolidated Statements of Income.

(2)

Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies’ Consolidated Statements of Income.

(3)

Amounts recorded in the Companies’ Consolidated Statement of Income are classified in interest and related charges.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance


	Amount of Gain (Loss) Recognized in Income on Derivatives(1)(2)
Derivatives not designated as hedging instruments	Dominion Energy						Virginia Power
Period Ended March 31,	2024			2023			2024			2023
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	76		$	395		$	41		$	9
Electric fuel and other energy-related purchases		(148	)		(45	)		(146	)		(46	)
Discontinued operations		(24	)		94
Interest rate:
Interest and related charges		(78	)		(76	)
Discontinued operations		—			(26	)
Total	$	(174	)	$	342		$	(105	)	$	(37	)

(1)

Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in the Companies’ Consolidated Statements of Income.

Excludes amounts related to foreign currency exchange rate derivatives that are deferred to plant under construction within property, plant and equipment and regulatory assets/liabilities that will begin to amortize once the CVOW Commercial Project is placed in service.