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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2016
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans funded status
The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans' funded status for Dominion and Dominion Gas (for employees represented by collective bargaining units):
 
 
Pension Benefits
 
Other Postretirement
Benefits
 
Year Ended December 31,
2016

2015

2016

2015

(millions, except percentages)
 
 
 
 
Dominion
 
 
 
 
Changes in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
$
6,391

$
6,667

$
1,430

$
1,571

Dominion Questar Combination
817

—

85

—

Service cost
118

126

31

40

Interest cost
317

287

65

67

Benefits paid
(286
)
(246
)
(83
)
(79
)
Actuarial (gains) losses during the year
784

(443
)
166

(138
)
Plan amendments(1)
—

—

(216
)
(31
)
Settlements and curtailments(2)
(9
)
—

—

—

Benefit obligation at end of year
$
8,132

$
6,391

$
1,478

$
1,430

Changes in fair value of plan assets:
 

 

 

 

Fair value of plan assets at beginning of year
$
6,166

$
6,480

$
1,382

$
1,402

Dominion Questar Combination
704

—

45

—

Actual return (loss) on plan assets
426

(71
)
108

(1
)
Employer contributions
15

3

12

12

Benefits paid
(286
)
(246
)
(35
)
(31
)
Settlements(2)
(9
)
—

—

—

Fair value of plan assets at end of year
$
7,016

$
6,166

$
1,512

$
1,382

Funded status at end of year
$
(1,116
)
$
(225
)
$
34

$
(48
)
Amounts recognized in the Consolidated Balance Sheets at December 31:
 

 

 

 

Noncurrent pension and other postretirement benefit assets
$
930

$
931

$
148

$
12

Other current liabilities
(43
)
(14
)
(5
)
(3
)
Noncurrent pension and other postretirement benefit liabilities
(2,003
)
(1,142
)
(109
)
(57
)
Net amount recognized
$
(1,116
)
$
(225
)
$
34

$
(48
)
Significant assumptions used to determine benefit obligations as of December 31:
 

 

 

 

Discount rate
3.31% - 4.50%

4.96% - 4.99%

3.92% - 4.47%

4.93% - 4.94%

Weighted average rate of increase for compensation
4.09
%
4.22
%
3.29
%
4.22
%
Dominion Gas
 
 
 
 
Changes in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
$
608

$
638

$
292

$
320

Service cost
13

15

5

7

Interest cost
30

27

14

14

Benefits paid
(32
)
(29
)
(19
)
(18
)
Actuarial (gains) losses during the year
64

(43
)
28

(31
)
Benefit obligation at end of year
$
683

$
608

$
320

$
292

Changes in fair value of plan assets:
 

 

 

 

Fair value of plan assets at beginning of year
$
1,467

$
1,510

$
283

$
288

Actual return (loss) on plan assets
107

(14
)
23

1

Employer contributions
—

—

12

12

Benefits paid
(32
)
(29
)
(19
)
(18
)
Fair value of plan assets at end of year
$
1,542

$
1,467

$
299

$
283

Funded status at end of year
$
859

$
859

$
(21
)
$
(9
)
Amounts recognized in the Consolidated Balance Sheets at December 31:
 

 

 

 

Noncurrent pension and other postretirement benefit assets
$
859

$
859

$
—

$
—

Noncurrent pension and other postretirement benefit liabilities(3)
—

—

(21
)
(9
)
Net amount recognized
$
859

$
859

$
(21
)
$
(9
)
Significant assumptions used to determine benefit obligations as of December 31:
 

 

 

 

Discount rate
4.50
%
4.99
%
4.47
%
4.93
%
Weighted average rate of increase for compensation
4.11
%
3.93
%
n/a

3.93
%

(1)
2016 amount relates primarily to a plan amendment that changed post-65 retiree medical coverage for certain current and future Local 50 retirees effective April 1, 2017. 2015 amount relates primarily to a plan amendment that changed retiree medical benefits for certain nonunion employees after Medicare eligibility.
(2)
Relates primarily to a settlement for certain executives.
(3)
Reflected in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.
Benefit obligation in excess of plan asset
The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion and Dominion Gas (for employees represented by collective bargaining units):
 
 
Pension Benefits
Other Postretirement
Benefits
As of December 31,
2016

2015

2016

2015

(millions)
 
 
 
 
Dominion
 
 
 
 
Benefit obligation
$
7,386

$
5,728

$
470

$
359

Fair value of plan assets
5,340

4,571

356

299

Dominion Gas
 
 
 
 
Benefit obligation
$
—

$
—

$
320

$
292

Fair value of plan assets
—

—

299

283
Accumulated benefit obligation in excess of plan assets
The following table provides information on the ABO and fair value of plan assets for Dominion’s pension plans with an ABO in excess of plan assets:
 
As of December 31,
2016

2015

(millions)
 
 
Accumulated benefit obligation
$
5,987

$
5,198

Fair value of plan assets
4,653

4,571
Benefit payments expected future service
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans:
 
 
Estimated Future Benefit Payments
 
 
Pension Benefits

Other  Postretirement Benefits

(millions)
 
 
Dominion
 
 
2017
$
380

$
92

2018
361

96

2019
373

97

2020
398

99

2021
415

100

2022-2026
2,345

490

Dominion Gas
 
 
2017
$
33

$
17

2018
35

18

2019
37

19

2020
38

19

2021
40

20

2022-2026
211

101
Fair values of pension and post retirement plan assets by asset category
The fair values of Dominion's and Dominion Gas’ (for employees represented by collective bargaining units) pension plan assets by asset category are as follows:
 
At December 31,
2016
2015
 
Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

(millions)
 
 
 
 
 
 
 
 
Dominion
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
12

$
2

$
—

$
14

$
16

$
—

$
—

$
16

Common and preferred stocks:
















U.S.
1,705

—

—

1,705

1,736

—

—

1,736

International
928

—

—

928

786

—

—

786

Insurance contracts
—

334

—

334

—

330

—

330

Corporate debt instruments
35

682

—

717

44

695

—

739

Government securities
13

522

—

535

85

390

—

475

Total recorded at fair value
$
2,693

$
1,540

$
—

$
4,233

$
2,667

$
1,415

$
—

$
4,082

Assets recorded at NAV(1):
 
 
 
 
 
 
 
 
Common/collective trust funds(2)
 
 
 
1,960

 
 
 
1,200

Alternative investments:
 
 
 
 
 
 
 
 
Real estate funds






121







153

Private equity funds






506







465

Debt funds






153







170

Hedge funds






25







86

Total recorded at NAV
 
 
 
$
2,765

 
 
 
$
2,074

Total investments(3)






$
6,998







$
6,156

Dominion Gas
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
3

$
—

$
—

$
3

$
4

$
—

$
—

$
4

Common and preferred stocks:
















U.S.
375

—

—

375

413

—

—

413

International
203

—

—

203

187

—

—

187

Insurance contracts
—

73

—

73

—

78

—

78

Corporate debt instruments
8

150

—

158

10

165

—

175

Government securities
3

115

—

118

20

93

—

113

Total recorded at fair value
$
592

$
338

$
—

$
930

$
634

$
336

$
—

$
970

Assets recorded at NAV(1):
 

 

 

 

 

 

 

 

Common/collective trust funds(4)






430







286

Alternative investments:
















Real estate funds






27







36

Private equity funds






111







111

Debt funds






34







40

Hedge funds
 
 
 
6

 
 
 
21

Total recorded at NAV






$
608







$
494

Total investments(5)
 
 
 
$
1,538

 
 
 
$
1,464


(1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.
(2)
Also included in the common collective trust funds is the Northern Trust Collective Short-Term Investment Fund, totaling $167 million and $125 million at December 31, 2016 and 2015, respectively, which is comprised of money market instruments with short-term maturities used for temporary investment. Liquidity is emphasized to provide for redemption of units on any business day. Principal preservation is also a prime objective. Admissions and withdrawals are made daily. Interest is accrued daily and distributed monthly.
(3)
Includes net assets related to pending sales of securities of $46 million, net accrued income of $19 million, and excludes net assets related to pending purchases of securities of $47 million at December 31, 2016. Includes net assets related to pending sales of securities of $112 million, net accrued income of $16 million, and excludes net assets related to pending purchases of securities of $118 million at December 31, 2015.
(4)
Also included in the common collective trust funds is the Northern Trust Collective Short-Term Investment Fund, totaling $37 million and $30 million at December 31, 2016 and 2015, respectively, which is comprised of money market instruments with short-term maturities used for temporary investment. Liquidity is emphasized to provide for redemption of units on any business day. Principal preservation is also a prime objective. Admissions and withdrawals are made daily. Interest is accrued daily and distributed monthly.
(5)
Includes net assets related to pending sales of securities of $10 million, net accrued income of $4 million, and excludes net assets related to pending purchases of securities of $10 million at December 31, 2016. Includes net assets related to pending sales of securities of $27 million, net accrued income of $4 million, and excludes net assets related to pending purchases of securities of $28 million at December 31, 2015.

The fair values of Dominion's and Dominion Gas’ (for employees represented by collective bargaining units) other postretirement plan assets by asset category are as follows:
 
At December 31,
2016
2015
 
Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

(millions)
 
 
 
 
 
 
 
 
Dominion
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1

$
1

$
—

$
2

$
1

$
1

$
—

$
2

Common and preferred stocks:
















U.S.
571

—

—

571

531

—

—

531

International
143

—

—

143

134

—

—

134

Insurance contracts
—

19

—

19

—

18

—

18

Corporate debt instruments
2

40

—

42

3

38

—

41

Government securities
1

30

—

31

4

22

—

26

Total recorded at fair value
$
718

$
90

$
—

$
808

$
673

$
79

$
—

$
752

Assets recorded at NAV(1):
 
 
 
 
 
 
 
 
Common/collective trust funds(2)






621







543

Alternative investments:
















Real estate funds






9







14

Private equity funds






59







54

Debt funds






12







14

Hedge funds






1







5

Total recorded at NAV
 
 
 
$
702

 
 
 
$
630

Total investments(3)






$
1,510







$
1,382

Dominion Gas
















Common and preferred stocks:
 
 
 
 
 
 
 
 
U.S.
$
121

$
—

$
—

$
121

$
113

$
—

$
—

$
113

International
24

—

—

24

24

—

—

24

Total recorded at fair value
$
145

$
—

$
—

$
145

$
137

$
—

$
—

$
137

Assets recorded at NAV(1):
 

 

 

 

 

 

 

 

Common/collective trust funds(4)
 
 
 
140

 
 
 
132

Alternative investments:
 
 
 


 
 
 


Real estate funds
 
 
 
1

 
 
 
2

Private equity funds






12







11

Debt funds






1







1

Total recorded at NAV
 
 
 
$
154

 
 
 
$
146

Total investments
 
 
 
$
299

 
 
 
$
283


(1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value
hierarchy.
(2)
Also included in the common collective trust funds is the Northern Trust Collective Short-Term Investment Fund, totaling $16 million and $9 million at December 31, 2016 and 2015, respectively, which is comprised of money market instruments with short-term maturities used for temporary investment. Liquidity is emphasized to provide for redemption of units on any business day. Principal preservation is also a prime objective. Admissions and withdrawals are made daily. Interest is accrued daily and distributed monthly.
(3)
Includes net assets related to pending sales of securities of $5 million, net accrued income of $2 million, and excludes net assets related to pending purchases of securities of $5 million at December 31, 2016.
(4)
Also included in the common collective trust funds is the Northern Trust Collective Short-Term Investment Fund, totaling $2 million and $3 million at December 31, 2016 and 2015, respectively, which is comprised of money market instruments with short-term maturities used for temporary investment. Liquidity is emphasized to provide for redemption of units on any business day. Principal preservation is also a prime objective. Admissions and withdrawals are made daily. Interest is accrued daily and distributed monthly.
Net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities
The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans are as follows:
 
 
Pension Benefits
Other Postretirement Benefits
Year Ended December 31,
2016

2015

2014

2016

2015

2014

(millions, except percentages)
 
 
 
 
 
 
Dominion
 
 
 
 
 
 
Service cost
$
118

$
126

$
114

$
31

$
40

$
32

Interest cost
317

287

290

65

67

67

Expected return on plan assets
(573
)
(531
)
(499
)
(118
)
(117
)
(111
)
Amortization of prior service (credit) cost
1

2

3

(35
)
(27
)
(28
)
Amortization of net actuarial loss
111

160

111

8

6

2

Settlements and curtailments
1

—

1

—

—

—

Net periodic benefit (credit) cost
$
(25
)
$
44

$
20

$
(49
)
$
(31
)
$
(38
)
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
 

 

 

 

 

 

Current year net actuarial (gain) loss
$
931

$
159

$
784

$
178

$
(18
)
$
183

Prior service (credit) cost
—

—

—

(216
)
(31
)
9

Settlements and curtailments
(1
)
—

(1
)
—

—

—

Less amounts included in net periodic benefit cost:
 

 

 

 

 

 

Amortization of net actuarial loss
(111
)
(160
)
(111
)
(8
)
(6
)
(2
)
Amortization of prior service credit (cost)
(1
)
(2
)
(3
)
35

27

28

Total recognized in other comprehensive income and regulatory assets and liabilities
$
818

$
(3
)
$
669

$
(11
)
$
(28
)
$
218

Significant assumptions used to determine periodic cost:
 

 

 

 

 

 

Discount rate
2.87% - 4.99%

4.40
%
5.20% - 5.30%

3.56% - 4.94%

4.40
%
4.20% - 5.10%

Expected long-term rate of return on plan assets
8.75
%
8.75
%
8.75
%
8.50
%
8.50
%
8.50
%
Weighted average rate of increase for compensation
4.22
%
4.22
%
4.21
%
4.22
%
4.22
%
4.22
%
Healthcare cost trend rate(1)
 

 

 

7.00
%
7.00
%
7.00
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)(1)
 

 

 

5.00
%
5.00
%
5.00
%
Year that the rate reaches the ultimate trend rate(1)(2)
 
 
 
2020

2019

2018

Dominion Gas
 
 
 
 
 
 
Service cost
$
13

$
15

$
12

$
5

$
7

$
6

Interest cost
30

27

28

14

14

13

Expected return on plan assets
(134
)
(126
)
(115
)
(23
)
(24
)
(23
)
Amortization of prior service (credit) cost
—

1

1

1

(1
)
(1
)
Amortization of net actuarial loss
13

20

19

1

2

—

Net periodic benefit (credit) cost
$
(78
)
$
(63
)
$
(55
)
$
(2
)
$
(2
)
$
(5
)
Changes in plan assets and benefit obligations recognized in other comprehensive income and regulatory assets and liabilities:
 

 

 

 

 

 

Current year net actuarial (gain) loss
$
91

$
97

$
43

$
28

$
(9
)
$
40

Prior service cost
—

—

—

—

—

10

Less amounts included in net periodic benefit cost:
 

 

 

 

 

 

Amortization of net actuarial loss
(13
)
(20
)
(19
)
(1
)
(2
)
—

Amortization of prior service credit (cost)
—

(1
)
(1
)
(1
)
1

1

Total recognized in other comprehensive income and regulatory assets and liabilities
$
78

$
76

$
23

$
26

$
(10
)
$
51

Significant assumptions used to determine periodic cost:
 

 

 

 

 

 

Discount rate
4.99
%
4.40
%
5.20
%
4.93
%
4.40
%
4.20% - 5.00%

Expected long-term rate of return on plan assets
8.75
%
8.75
%
8.75
%
8.50
%
8.50
%
8.50
%
Weighted average rate of increase for compensation
3.93
%
3.93
%
3.93
%
3.93
%
3.93
%
3.93
%
Healthcare cost trend rate(1)
 

 

 

7.00
%
7.00
%
7.00
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)(1)
 

 

 

5.00
%
5.00
%
5.00
%
Year that the rate reaches the ultimate trend rate(1)(2)
 
 
 
2020

2019

2018


(1)
Assumptions used to determine net periodic cost for the following year. 
(2)
The Society of Actuaries model used to determine healthcare cost trend rates was updated in 2014. The new model converges to the ultimate trend rate much more quickly than previous models.
Components of AOCI and regulatory assets and liabilities that have not been recognized as components of periodic benefit (credit) cost
The components of AOCI and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:
 
 
Pension Benefits
Other Postretirement Benefits
At December 31,
2016

2015

2016

2015

(millions)
 
 
 
 
Dominion
 
 
 
 
Net actuarial loss
$
3,200

$
2,381

$
283

$
114

Prior service (credit) cost
4

5

(419
)
(237
)
Total(1)
$
3,204

$
2,386

$
(136
)
$
(123
)
Dominion Gas
 
 
 
 
Net actuarial loss
$
458

$
380

$
60

$
33

Prior service (credit) cost
—

1

7

7

Total(2)
$
458

$
381

$
67

$
40

(1)
As of December 31, 2016, of the $3.2 billion and $(136) million related to pension benefits and other postretirement benefits, $1.9 billion and $(103) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2015, of the $2.4 billion and $(123) million related to pension benefits and other postretirement benefits, $1.4 billion and $(90) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.
(2)
As of December 31, 2016, of the $458 million related to pension benefits, $167 million is included in AOCI, with the remainder included in regulatory assets and liabilities; the $67 million related to other postretirement benefits is included entirely in regulatory assets and liabilities. As of December 31, 2015, of the $381 million related to pension benefits, $138 million is included in AOCI, with the remainder included in regulatory assets and liabilities; the $40 million related to other postretirement benefits is included entirely in regulatory assets and liabilities.
Components of AOCI and regulatory assets and liabilities that are expected to be amortized as components of periodic benefit cost in 2017
The following table provides the components of AOCI and regulatory assets and liabilities for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) plans as of December 31, 2016 that are expected to be amortized as components of net periodic benefit (credit) cost in 2017:
 
Pension
Benefits

Other
Postretirement
Benefits

(millions)
 
 
Dominion
 
 
Net actuarial loss
$
161

$
13

Prior service (credit) cost
1

(47
)
Dominion Gas
 
 
Net actuarial loss
$
16

$
2

Prior service (credit) cost
—

1
Effect of one percentage point change on benefit plans
A one percentage point change in assumed healthcare cost trend rates would have had the following effects for Dominion’s and Dominion Gas’ (for employees represented by collective bargaining units) other postretirement benefit plans:

 
 
Other Postretirement Benefits
 
 
One percentage point increase

One percentage point decrease

(millions)
 
 
Dominion
 
 
Effect on net periodic cost for 2017
$
23

$
(18
)
Effect on other postretirement benefit obligation at December 31, 2016
152

(127
)
Dominion Gas
 
 
Effect on net periodic cost for 2017
$
5

$
(4
)
Effect on other postretirement benefit obligation at December 31, 2016
41

(34
)