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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table presents Dominion's quantitative information about Level 3 fair value measurements at December 31, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility and credit spreads.



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average ⁽¹⁾
Assets:
Physical and Financial Forwards and Futures:
Natural Gas⁽²⁾	$	70	Discounted Cash Flow	Market Price (per Dth)	⁽⁴⁾	(2) - 12	—
				Credit Spreads	⁽⁵⁾	1% - 4%	2	%
FTRs	7		Discounted Cash Flow	Market Price (per MWh)	⁽⁴⁾	(9) - 7	1
Physical and Financial Options:
Natural Gas	3		Option Model	Market Price (per Dth)	⁽⁴⁾	2 - 7	3
				Price Volatility	⁽⁶⁾	18% - 50%	24	%
Electricity	67		Option Model	Market Price (per MWh)	⁽⁴⁾	21 - 55	34
				Price Volatility	⁽⁶⁾	14% - 104%	31	%
Total assets	$	147
Liabilities:
Physical and Financial Forwards and Futures:
Natural Gas⁽²⁾	$	2	Discounted Cash Flow	Market Price (per Dth)	⁽⁴⁾	(2) - 4	4
Liquids⁽³⁾	3		Discounted Cash Flow	Market Price (per Gal)	⁽⁴⁾	0 - 2	1
FTRs	3		Discounted Cash Flow	Market Price (per MWh)	⁽⁴⁾	(9) - 3	—
Total liabilities	$	8


(1)	Averages weighted by volume.


(2)	Includes basis.


(3)	Includes NGLs and oil.


(4)	Represents market prices beyond defined terms for Levels 1 and 2.


(5)	Represents credit spreads unrepresented in published markets.


(6)	Represents volatilities unrepresented in published markets

Fair Value Inputs, Liabilities, Quantitative Information



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average ⁽¹⁾
Assets:
Physical and Financial Forwards and Futures:
Natural Gas⁽²⁾	$	70	Discounted Cash Flow	Market Price (per Dth)	⁽⁴⁾	(2) - 12	—
				Credit Spreads	⁽⁵⁾	1% - 4%	2	%
FTRs	7		Discounted Cash Flow	Market Price (per MWh)	⁽⁴⁾	(9) - 7	1
Physical and Financial Options:
Natural Gas	3		Option Model	Market Price (per Dth)	⁽⁴⁾	2 - 7	3
				Price Volatility	⁽⁶⁾	18% - 50%	24	%
Electricity	67		Option Model	Market Price (per MWh)	⁽⁴⁾	21 - 55	34
				Price Volatility	⁽⁶⁾	14% - 104%	31	%
Total assets	$	147
Liabilities:
Physical and Financial Forwards and Futures:
Natural Gas⁽²⁾	$	2	Discounted Cash Flow	Market Price (per Dth)	⁽⁴⁾	(2) - 4	4
Liquids⁽³⁾	3		Discounted Cash Flow	Market Price (per Gal)	⁽⁴⁾	0 - 2	1
FTRs	3		Discounted Cash Flow	Market Price (per MWh)	⁽⁴⁾	(9) - 3	—
Total liabilities	$	8


(1)	Averages weighted by volume.


(2)	Includes basis.


(3)	Includes NGLs and oil.


(4)	Represents market prices beyond defined terms for Levels 1 and 2.


(5)	Represents credit spreads unrepresented in published markets.


(6)	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)
Credit Spread	Asset	Increase (decrease)	Loss (gain)

Fair Value, by Balance Sheet Grouping

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 December 31, 2016
Assets:
Derivatives:
Commodity	$	—	$	115	$	147	$	262
Interest rate	—		17		—		17
Investments⁽¹⁾:
Equity securities:
U.S.	2,913		—		—		2,913
Fixed Income:
Corporate debt instruments	—		487		—		487
Government securities	424		614		—		1,038
Cash equivalents and other	5		—		—		5
Total assets	$	3,342	$	1,233	$	147	$	4,722
Liabilities:
Derivatives:
Commodity	$	—	$	88	$	8	$	96
Interest rate	—		53		—		53
Foreign currency	—		6		—		6
Total liabilities	$	—	$	147	$	8	$	155
At December 31, 2015
Assets:
Derivatives:
Commodity	$	1	$	249	$	114	$	364
Interest rate	—		24		—		24
Investments⁽¹⁾:
Equity securities:
U.S.	2,625		—		—		2,625
Fixed Income:
Corporate debt instruments	—		439		—		439
Government securities	458		574		—		1,032
Cash equivalents and other	2		2		—		4
Total assets	$	3,086	$	1,288	$	114	$	4,488
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. Excludes $89 million and $101 million of assets at December 31, 2016 and 2015, 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 Dominion's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:



	2016			2015			2014
(millions)
Balance at January 1,	$	95		$	107		$	(16	)
Total realized and unrealized gains (losses):
Included in earnings	(35		)	(5		)	97
Included in other comprehensive income (loss)	—			(9		)	7
Included in regulatory assets/liabilities	(39		)	(4		)	109
Settlements	38			9			(88		)
Purchases	87			—			—
Transfers out of Level 3	(7		)	(3		)	(2		)
Balance at December 31,	$	139		$	95		$	107
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at the reporting date	$	(1	)	$	2		$	6

Fair Value, Unobservable Inputs, Gain (Loss) Included In Earnings

The following table presents Dominion's gains and losses included in earnings in the Level 3 fair value category:



	Operating Revenue		Electric Fuel and Other Energy-Related Purchases			Purchased Gas			Total
(millions)
Year Ended December 31, 2016
Total gains (losses) included in earnings	$	—	$	(35	)	$	—		$	(35	)
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		)
Year Ended December 31, 2015
Total gains (losses) included in earnings	$	6	$	(11	)	$	—		$	(5	)
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			—			2
Year Ended December 31, 2014
Total gains (losses) included in earnings	$	4	$	97		$	(4	)	$	97
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	4		1			1			6

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:



At December 31,	2016				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⁾	$	26,587	$	28,273	$	21,873	$	23,210
Junior subordinated notes⁽³⁾	2,980		2,893		1,340		1,192
Remarketable subordinated notes⁽³⁾	2,373		2,418		2,080		2,129
Virginia Power
Long-term debt, including securities due within one year⁽³⁾	$	10,530	$	11,584	$	9,368	$	10,400
Dominion Gas
Long-term debt, including securities due within one year⁽⁴⁾	$	3,528	$	3,603	$	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 or premium, and foreign currency remeasurement adjustments. At December 31, 2016, and 2015, includes the valuation of certain fair value hedges associated with Dominion's fixed rate debt of $(1) million and $7 million, respectively.


(3)	Carrying amount includes amounts which represent the unamortized debt issuance costs, discount or premium.


(4)	Carrying amount includes amounts which represent the unamortized debt issuance costs, discount or premium, and foreign currency remeasurement adjustments.

Virginia Electric and Power Company

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table presents Virginia Power's quantitative information about Level 3 fair value measurements at December 31, 2016. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility and credit spreads.



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets:
Physical and Financial Forwards and Futures:
Natural gas⁽²⁾	$	68	Discounted Cash Flow	Market Price (per Dth)	⁽³⁾	(2) - 7	—
				Credit Spreads	⁽⁴⁾	1% - 4%	2	%
FTRs	7		Discounted Cash Flow	Market Price (per MWh)	⁽³⁾	(9) - 7	1

Physical and Financial Options:
Natural Gas	3		Option Model	Market Price (per Dth)	⁽³⁾	2 - 7	3
				Price Volatility	⁽⁵⁾	18% - 34%	24	%
Electricity	67		Option Model	Market Price (per MWh)	⁽³⁾	21 - 55	34
				Price Volatility	⁽⁵⁾	14% - 104%	31	%
Total assets	$	152
Liabilities:
Physical and Financial Forwards and Futures:
FTRs	$	2	Discounted Cash Flow	Market Price (per MWh)	⁽³⁾	(9) - 3	—
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 credit spreads unrepresented in published markets.


(5)	Represents volatilities unrepresented in published markets.

Fair Value Inputs, Liabilities, Quantitative Information



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Assets:
Physical and Financial Forwards and Futures:
Natural gas⁽²⁾	$	68	Discounted Cash Flow	Market Price (per Dth)	⁽³⁾	(2) - 7	—
				Credit Spreads	⁽⁴⁾	1% - 4%	2	%
FTRs	7		Discounted Cash Flow	Market Price (per MWh)	⁽³⁾	(9) - 7	1

Physical and Financial Options:
Natural Gas	3		Option Model	Market Price (per Dth)	⁽³⁾	2 - 7	3
				Price Volatility	⁽⁵⁾	18% - 34%	24	%
Electricity	67		Option Model	Market Price (per MWh)	⁽³⁾	21 - 55	34
				Price Volatility	⁽⁵⁾	14% - 104%	31	%
Total assets	$	152
Liabilities:
Physical and Financial Forwards and Futures:
FTRs	$	2	Discounted Cash Flow	Market Price (per MWh)	⁽³⁾	(9) - 3	—
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 credit spreads unrepresented in published markets.


(5)	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)
Credit Spread	Asset	Increase (decrease)	Loss (gain)

Fair Value, by Balance Sheet Grouping

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 December 31, 2016
Assets:
Derivatives:
Commodity	$	—	$	43	$	145	$	188
Interest rate	—		6		—		6
Investments⁽¹⁾:
Equity securities:
U.S.	1,302		—		—		1,302
Fixed Income:
Corporate debt instruments	—		277		—		277
Government Securities	136		291		—		427
Total assets	$	1,438	$	617	$	145	$	2,200
Liabilities:
Derivatives:
Commodity	$	—	$	8	$	2	$	10
Interest rate	—		21		—		21
Total liabilities	$	—	$	29	$	2	$	31
At December 31, 2015
Assets:
Derivatives:
Commodity	$	—	$	13	$	101	$	114
Interest rate	—		13		—		13
Investments⁽¹⁾:
Equity securities:
U.S.	1,163		—		—		1,163
Fixed Income:
Corporate debt instruments	—		238		—		238
Government Securities	180		254		—		434
Total assets	$	1,343	$	518	$	101	$	1,962
Liabilities:
Derivatives:
Commodity	$	—	$	19	$	8	$	27
Interest rate	—		59		—		59
Total liabilities	$	—	$	78	$	8	$	86


(1)	Includes investments held in the nuclear decommissioning trust. Excludes $26 million and $34 million of assets at December 31, 2016 and 2015, 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 Virginia Power's assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:



	2016			2015			2014
(millions)
Balance at January 1,	$	93		$	102		$	(7	)
Total realized and unrealized gains (losses):
Included in earnings	(35		)	(13		)	96
Included in regulatory assets/liabilities	(37		)	(5		)	109
Settlements	35			13			(96		)
Purchases	87			—			—
Transfers out of Level 3	—			(4		)	—
Balance at December 31,	$	143		$	93		$	102

Dominion Gas Holdings, LLC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table presents Dominion Gas' quantitative information about Level 3 fair value measurements at December 31, 2016. The range and weighted average are presented in dollars for market price inputs.



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Liabilities:
Physical and Financial Forwards and Futures:
NGLs	$	2	Discounted Cash Flow	Market Price (per Gal)	⁽²⁾	0 - 2	1
Total liabilities	$	2


(1)	Averages weighted by volume.


(2)	Represents market prices beyond defined terms for Levels 1 and 2.

Fair Value Inputs, Liabilities, Quantitative Information



	Fair Value (millions)		Valuation Techniques	Unobservable Input		Range	Weighted Average⁽¹⁾
Liabilities:
Physical and Financial Forwards and Futures:
NGLs	$	2	Discounted Cash Flow	Market Price (per Gal)	⁽²⁾	0 - 2	1
Total liabilities	$	2


(1)	Averages weighted by volume.


(2)	Represents market prices beyond defined terms for Levels 1 and 2.

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)

Fair Value, by Balance Sheet Grouping

The following table presents Dominion Gas' assets and liabilities for commodity, interest rate, and foreign currency 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 December 31, 2016
Liabilities:
Commodity	$	—	$	3	$	2	5
Foreign currency	—		6		—		6
Total liabilities	$	—	$	9	$	2	$	11
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, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Dominion Gas' derivative assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:



	2016			2015			2014
(millions)
Balance at January 1,	$	6		$	2		$	(6	)
Total realized and unrealized gains (losses):
Included in earnings	—			1			2
Included in other comprehensive income (loss)	—			(5		)	10
Settlements	—			(1		)	(4		)
Transfers out of Level 3	(8		)	9			—
Balance at December 31,	$	(2	)	$	6		$	2