Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:

	Dominion Energy				Virginia Power
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
(millions)
Regulatory assets:
Deferred cost of fuel used in electric generation(1)	$	105	$	245	$	34	$	95
Securitized cost of fuel used in electric generation(2)		100		—		100		—
Deferred rider costs for Virginia electric utility(3)		168		270		168		270
Ash pond and landfill closure costs(4)		188		200		188		200
Deferred nuclear refueling outage costs(5)		64		63		64		63
NND Project costs(6)		138		138
Derivatives(7)		98		162		96		160
Other		231		231		94		80
Regulatory assets-current		1,092		1,309		744		868
Unrecognized pension and other postretirement benefit costs(8)		518		1,036		—		—
Deferred rider costs for Virginia electric utility(3)		553		496		553		496
Interest rate hedges(9)		168		168		—		—
AROs and related funding(10)		381		379
NND Project costs(6)		1,914		1,949
Ash pond and landfill closure costs(4)		2,403		2,410		2,396		2,407
Deferred cost of fuel used in electric generation(1)		—		1,221		—		1,221
Securitized cost of fuel used in electric generation(2)		1,177		—		1,177		—
Derivatives(7)		142		107		104		66
Other		603		590		122		127
Regulatory assets-noncurrent		7,859		8,356		4,352		4,317
Total regulatory assets	$	8,951	$	9,665	$	5,096	$	5,185
Regulatory liabilities:
Provision for future cost of removal and AROs(11)		118		118		118		118
Reserve for refunds and rate credits to electric utility customers(12)		83		83		—		—
Income taxes refundable through future rates(13)		107		107		70		70
Monetization of guarantee settlement(14)		67		67
Derivatives(7)		10		7		—		—
Other		127		140		96		133
Regulatory liabilities-current		512		522		284		321
Income taxes refundable through future rates(13)		3,044		3,076		2,214		2,237
Provision for future cost of removal and AROs(11)		1,826		1,818		1,186		1,185
Nuclear decommissioning trust(15)		2,297		2,098		2,297		2,098
Monetization of guarantee settlement(14)		619		635
Interest rate hedges(9)		313		233		313		233
Reserve for refunds and rate credits to electric utility customers(12)		212		237		—		—
Overrecovered other postretirement benefit costs(16)		162		155
Derivatives(7)		194		136		—		—
Other		376		286		333		225
Regulatory liabilities-noncurrent		9,043		8,674		6,343		5,978
Total regulatory liabilities	$	9,555	$	9,196	$	6,627	$	6,299

(1)Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Virginia Power’s electric generation operations. Additionally, Dominion Energy includes deferred fuel expenses for the South Carolina jurisdiction of its electric generation operations. In February 2024, Virginia Power completed a securitization of $1.3 billion of under-recovered fuel costs for its Virginia service territory.

(2)Reflects under-recovered fuel costs for Virginia Power’s Virginia service territory securitized through the issuance of bonds by VPFS in February 2024. See Note 15 in this report and Notes 13 and 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.

(3)Reflects deferrals under Virginia Power’s electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects.

(4)Primarily reflects legislation in Virginia which requires any CCR asset located at certain Virginia Power stations to be closed by removing the CCR to an approved landfill or through beneficial reuse. These deferred costs are expected to be collected over a period between 15 and 18 years commencing December 2021 through Rider CCR. Virginia Power is entitled to collect carrying costs on uncollected expenditures once expenditures have been made.

(5)Legislation in Virginia requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

(6)Reflects expenditures by DESC associated with the NND Project, which pursuant to the SCANA Merger Approval Order, will be recovered from DESC electric service customers over a 20-year period ending in 2039.

(7)Represents changes in the fair value of derivatives, excluding separately presented interest rate hedges, that following settlement are expected to be recovered from or refunded to customers.

(8)Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy’s rate-regulated subsidiaries. Includes regulatory assets of $10 million and $215 million and regulatory liabilities of $(5) million and $12 million at March 31, 2024 and December 31, 2023, respectively, related to retained pension and other postretirement benefit plan assets and obligations for the East Ohio (at December 31, 2023 only), PSNC and Questar Gas Transactions which will be reclassified to AOCI upon closing of each transaction.

(9)Reflects interest rate hedges recoverable from or refundable to customers. Certain of these instruments are settled and any related payments are being amortized into interest expense over the life of the related debt, which has a weighted-average useful life of approximately 25 years and 24 years for Dominion Energy and Virginia Power, respectively, as of March 31, 2024.

(10)Represents uncollected costs, including deferred depreciation and accretion expense, related to legal obligations associated with the future retirement of generation, transmission and distribution properties. The AROs primarily relate to DESC’s electric generating facilities, including Summer, and are expected to be recovered over the related property lives and periods of decommissioning which may range up to approximately 105 years.

(11)Rates charged to customers by Dominion Energy and Virginia Power’s regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

(12)Reflects amounts previously collected from retail electric customers of DESC for the NND Project to be credited over an estimated 11-year period effective February 2019, in connection with the SCANA Merger Approval Order. Also reflects amounts to be refunded to jurisdictional retail electric customers in Virginia associated with the settlement of the 2021 Triennial Review. See Note 13 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.

(13)Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will primarily reverse at the weighted average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC equity.

(14)Reflects amounts to be refunded to DESC electric service customers over a 20-year period ending in 2039 associated with the monetization of a bankruptcy settlement agreement.

(15)Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon, as applicable) for the future decommissioning of Virginia Power’s utility nuclear generation stations, in excess of the related AROs.

(16)Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.