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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Fair Value Inputs, Assets, Quantitative Information
The following table presents Dominion's quantitative information about Level 3 fair value measurements at September 30, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.
 
Fair Value (millions)
Valuation Techniques
Unobservable Input
 
Range
Weighted Average(1)
Assets
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
 
Natural gas(2)
$
85

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 7
—

FTRs
7

Discounted cash flow
Market price (per MWh)
(3) 
(6) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
4

Option model
Market price (per Dth)
(3) 
2 - 7
3

 
 
 
Price volatility
(4) 
19% - 46%
24
%
Total assets
$
96

 
 
 
 
 
Liabilities
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
 
Natural gas(2)
$
4

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 4
1

FTRs
2

Discounted cash flow
Market price (per MWh)
(3) 
(11) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
1

Option model
Market price (per Dth)
(3) 
2 - 4
3

 
 
 
Price volatility
(4) 
30% - 46%
38
%
Total liabilities
$
7

 
 
 
 
 
(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents volatilities unrepresented in published markets.
Fair Value Inputs, Liabilities, Quantitative Information
The following table presents Dominion's quantitative information about Level 3 fair value measurements at September 30, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.
 
Fair Value (millions)
Valuation Techniques
Unobservable Input
 
Range
Weighted Average(1)
Assets
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
 
Natural gas(2)
$
85

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 7
—

FTRs
7

Discounted cash flow
Market price (per MWh)
(3) 
(6) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
4

Option model
Market price (per Dth)
(3) 
2 - 7
3

 
 
 
Price volatility
(4) 
19% - 46%
24
%
Total assets
$
96

 
 
 
 
 
Liabilities
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
 
Natural gas(2)
$
4

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 4
1

FTRs
2

Discounted cash flow
Market price (per MWh)
(3) 
(11) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
1

Option model
Market price (per Dth)
(3) 
2 - 4
3

 
 
 
Price volatility
(4) 
30% - 46%
38
%
Total liabilities
$
7

 
 
 
 
 
(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents volatilities unrepresented in published markets.
Significant Unobservable Inputs
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)
Recurring Fair Value Measurements
The following table presents Dominion’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions: 
 
Level 1
Level 2
Level 3
Total
(millions)
 
 
 
 
At September 30, 2016
 
 
 
 
Assets
 
 
 
 
Derivatives:
 
 
 
 
Commodity
$
—

$
172

$
96

$
268

Interest rate
—

19

—

19

Foreign currency
—

8

—

8

Investments(1):
 
 
 
 
Equity securities:
 
 
 
 
United States:
 
 
 
 
Large cap
2,712

—

—

2,712

REIT
67

—

—

67

Other
6

—

—

6

Non-United States:
 
 
 
 
Large cap
10

—

—

10

Fixed income:
 
 
 
 
Corporate debt instruments
—

518

—

518

United States Treasury securities and agency debentures
438

231

—

669

State and municipal
—

372

—

372

Other
—

109

—

109

Cash equivalents and other
8

—

—

8

       Total assets
$
3,241

$
1,429

$
96

$
4,766

Liabilities
 
 
 
 
Derivatives:
 
 
 
 
Commodity
$
—

$
104

$
7

$
111

Interest rate
—

307

—

307

Foreign currency
—

4

—

4

Total liabilities
$
—

$
415

$
7

$
422

At December 31, 2015
 

 

 

 

Assets
 

 

 

 

Derivatives:
 

 

 

 

Commodity
$
1

$
249

$
114

$
364

Interest rate
—

24

—

24

Investments(1):
 

 

 

 

Equity securities:
 

 

 

 

United States:
 

 

 

 

Large cap
2,547

—

—

2,547

REIT
63

—

—

63

Other
5

—

—

5

Non-United States:
 

 

 

 

Large cap
10

—

—

10

Fixed income:
 

 

 

 

Corporate debt instruments
—

437

—

437

United States Treasury securities and agency debentures
458

201

—

659

State and municipal
—

376

—

376

Other
—

100

—

100

Cash equivalents and other
2

2

—

4

Total assets
$
3,086

$
1,389

$
114

$
4,589

Liabilities
 

 

 

 

Derivatives:
 

 

 

 

Commodity
$
—

$
141

$
19

$
160

Interest rate
—

183

—

183

Total liabilities
$
—

$
324

$
19

$
343

(1)
Includes investments held in the nuclear decommissioning and rabbi trusts.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the net change in Dominion's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
(millions)
 
 
 
 
Beginning balance
$
124

$
71

$
95

$
107

Total realized and unrealized gains (losses):
 
 
 
 
Included in earnings
(7
)
(9
)
(23
)
1

Included in other comprehensive income (loss)
—

5

2

(7
)
Included in regulatory assets/liabilities
(37
)
47

(5
)
18

Settlements
9

10

27

1

Transfers out of Level 3
—

(1
)
(7
)
3

Ending balance
$
89

$
123

$
89

$
123

The amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date
$
—

$
1

$
—

$
1
Fair Value, Unobservable Inputs, Gain (Loss) Included In Earnings
The following table presents Dominion's classification of gains and losses included in earnings in the Level 3 fair value category.

 
Operating
Revenue
Electric Fuel
and Other
Energy-Related
Purchases
Total
(millions)
 
 
 
Three Months Ended September 30, 2016
 
 
 
Total gains (losses) included in earnings
$
—

$
(7
)
$
(7
)
Three Months Ended September 30, 2015
 
 
 
Total gains (losses) included in earnings
$
—

$
(9
)
$
(9
)
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date
—

1

1

Nine Months Ended September 30, 2016
 
 
 
Total gains (losses) included in earnings
$
—

$
(23
)
$
(23
)
Nine Months Ended September 30, 2015
 
 
 
Total gains (losses) included in earnings
$
2

$
(1
)
$
1

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets/liabilities still held at the reporting date
1

—

1
Cost and Fair Value of Financial Instruments Disclosure
For the Companies' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:
 
 
September 30, 2016
December 31, 2015
 
Carrying
Amount
Estimated Fair
Value(1)
Carrying
Amount
Estimated Fair
Value(1)
(millions)
 
 
 
 
Dominion
 
 
 
 
Long-term debt, including securities due within one year(2)
$
26,287

$
29,077

$
21,873

$
23,210

Junior subordinated notes(3)
2,980

3,030

1,340

1,192

Remarketable subordinated notes(3)
2,371

2,392

2,080

2,129

Virginia Power
 
 
 
 
Long-term debt, including securities due within one year(3)
$
9,642

$
11,259

$
9,368

$
10,400

Dominion Gas
 
 
 
 
Long-term debt, including securities due within one year(4)
$
3,945

$
4,139

$
3,269

$
3,299

(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 issues with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.
(2)
Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium, and foreign currency remeasurement adjustments. At September 30, 2016 and December 31, 2015, includes the valuation of certain fair value hedges associated with fixed rate debt of $14 million and $7 million, respectively.
(3)
Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium.
(4)
Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium, and foreign currency remeasurement adjustments.
Virginia Electric and Power Company  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Fair Value Inputs, Assets, Quantitative Information
The following table presents Virginia Power's quantitative information about Level 3 fair value measurements at September 30, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.
 
Fair Value (millions)
Valuation Techniques
Unobservable Input
 
Range
Weighted Average(1)
Assets
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
Natural gas(2)
$
81

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 7
—

FTRs
7

Discounted cash flow
Market price (per MWh)
(3) 
(6) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
2

Option model
Market price (per Dth)
(3) 
2 - 7
3

 
 
 
Price volatility
(4) 
19% - 33%
24
%
Total assets
$
90

 
 
 
 
 
Liabilities
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
FTRs
$
2

Discounted cash flow
Market price (per MWh)
(3) 
(11) - 6
1

Total liabilities
$
2

 
 
 
 
 
(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents volatilities unrepresented in published markets.
Fair Value Inputs, Liabilities, Quantitative Information
The following table presents Virginia Power's quantitative information about Level 3 fair value measurements at September 30, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.
 
Fair Value (millions)
Valuation Techniques
Unobservable Input
 
Range
Weighted Average(1)
Assets
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
Natural gas(2)
$
81

Discounted cash flow
Market price (per Dth)
(3) 
(2) - 7
—

FTRs
7

Discounted cash flow
Market price (per MWh)
(3) 
(6) - 6
1

Physical and financial options:
 
 
 
 
 
 
Natural gas
2

Option model
Market price (per Dth)
(3) 
2 - 7
3

 
 
 
Price volatility
(4) 
19% - 33%
24
%
Total assets
$
90

 
 
 
 
 
Liabilities
 
 
 
 
 
 
Physical and financial forwards and futures:
 
 
 
 
 
FTRs
$
2

Discounted cash flow
Market price (per MWh)
(3) 
(11) - 6
1

Total liabilities
$
2

 
 
 
 
 
(1)
Averages weighted by volume.
(2)
Includes basis.
(3)
Represents market prices beyond defined terms for Levels 1 and 2.
(4)
Represents volatilities unrepresented in published markets.
Significant Unobservable Inputs
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)
Recurring Fair Value Measurements
The following table presents Virginia Power’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:
 
Level 1
Level 2
Level 3
Total
(millions)
 
 
 
 
At September 30, 2016
 
 
 
 
Assets
 
 
 
 
Derivatives:
 
 
 
 
Commodity
$
—

$
26

$
90

$
116

Interest rate
—

2

—

2

Investments(1):
 
 
 
 
Equity securities:
 
 
 
 
United States large cap
1,183

—

—

1,183

REIT
67

—

—

67

Fixed income:
 
 
 
 
Corporate debt instruments
—

298

—

298

United States Treasury securities and agency debentures
144

107

—

251

State and municipal
—

174

—

174

Other
—

29

—

29

       Total assets
$
1,394

$
636

$
90

$
2,120

Liabilities
 
 
 
 
Derivatives:
 
 
 
 
Commodity
$
—

$
22

$
2

$
24

Interest rate
—

267

—

267

Total liabilities
$
—

$
289

$
2

$
291

At December 31, 2015
 

 

 

 

Assets
 

 

 

 

Derivatives:
 

 

 

 

Commodity
$
—

$
13

$
101

$
114

Interest rate
—

13

—

13

Investments(1):
 

 

 

 

Equity securities:
 

 

 

 

United States large cap
1,100

—

—

1,100

REIT
63

—

—

63

Fixed income:
 

 

 

 

Corporate debt instruments
—

238

—

238

United States Treasury securities and agency debentures
180

79

—

259

State and municipal
—

175

—

175

Other
—

34

—

34

Total assets
$
1,343

$
552

$
101

$
1,996

Liabilities
 

 

 

 

Derivatives:
 

 

 

 

Commodity
$
—

$
19

$
8

$
27

Interest rate
—

59

—

59

Total liabilities
$
—

$
78

$
8

$
86

(1)
Includes investments held in the nuclear decommissioning and rabbi trusts.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the net change in Virginia Power’s assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
(millions)
 
 
 
 
Beginning balance
$
125

$
73

$
93

$
102

Total realized and unrealized gains (losses):
 
 
 
 
Included in earnings
(7
)
(10
)
(24
)
(1
)
Included in regulatory assets/liabilities
(37
)
47

(5
)
18

Settlements
7

10

24

1

Ending balance
$
88

$
120

$
88

$
120
Dominion Gas Holdings, LLC  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Recurring Fair Value Measurements
The following table presents Dominion Gas' assets and liabilities for derivatives that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:
 
Level 1
Level 2
Level 3
Total
(millions)
 
 
 
 
At September 30, 2016
 
 
 
 
Assets
 
 
 
 
Commodity
$
—

$
6

$
—

$
6

Foreign currency
—

8

—

8

Total Assets
$
—

$
14

$
—

$
14

Liabilities
 

 

 

 

Commodity
$
—

$
2

$
—

$
2

Foreign currency
—

4

—

4

Total liabilities
$
—

$
6

$
—

$
6

At December 31, 2015
 

 

 

 

Assets
 
 
 
 
Commodity
$
—

$
5

$
6

$
11

Total Assets
$
—

$
5

$
6

$
11

Liabilities
 

 

 

 

Interest rate
$
—

$
14

$
—

$
14

Total liabilities
$
—

$
14

$
—

$
14
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 The following table presents the net change in Dominion Gas' assets and liabilities for derivatives measured at fair value on a recurring basis and included in the Level 3 fair value category:
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2016
2015
2016
2015
(millions)
 
 
 
 
Beginning balance
$
—

$
(1
)
$
6

$
2

Total realized and unrealized gains (losses):
 

 
 

 

Included in earnings
—

—

—

1

Included in other comprehensive income (loss)
—

5

2

(7
)
Settlements
—

—

—

(1
)
Transfers out of Level 3
—

—

(8
)
9

Ending balance
$
—

$
4

$
—

$
4