Investments (Tables)

12 Months Ended

Dec. 31, 2017

Dominion Energy’s decommissioning trust funds are summarized below:


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾			Fair Value
(millions)
At December 31, 2017
Marketable equity securities:
U.S.		$1,569		$1,857		$ —			$3,426
Fixed income:
Corporate debt instruments		430		15		(1	)		444
Government securities		1,039		27		(5	)		1,061
Common/collective trust funds		60		—		—			60
Cost method investments		68		—		—			68
Cash equivalents and other⁽²⁾		34		—		—			34
Total		$3,200		$1,899		$ (6	)⁽³⁾		$5,093
At December 31, 2016
Marketable equity securities:
U.S.		$1,449		$1,408		$ —			$2,857
Fixed income:
Corporate debt instruments		478		13		(4	)		487
Government securities		978		22		(8)			992
Common/collective trust funds		67		—		—			67
Cost method investments		69		—		—			69
Cash equivalents and other⁽²⁾		12		—		—			12
Total		$3,053		$1,443		$(12	)⁽³⁾		$4,484

(1)

Included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(2)

Includes pending sales of securities of $5 million and $9 million at December 31, 2017 and 2016, respectively.

(3)

The fair value of securities in an unrealized loss position was $565 million and $576 million at December 31, 2017 and 2016, respectively.

Investments Classified by Contractual Maturity Date

The fair value of Dominion Energy’s marketable debt securities held in nuclear decommissioning trust funds at December 31, 2017 by contractual maturity is as follows:


	Amount
(millions)

Due in one year or less	$	151
Due after one year through five years		385
Due after five years through ten years		370
Due after ten years		659
Total	$	1,565

Marketable Securities

Presented below is selected information regarding Dominion Energy’s marketable equity and debt securities held in nuclear decommissioning trust funds:


Year Ended December 31,	2017		2016		2015
(millions)

Proceeds from sales	$	1,831	$	1,422	$	1,340
Realized gains⁽¹⁾		166		128		219
Realized losses⁽¹⁾		71		55		84

(1)

Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability as discussed in Note 2.

Other Than Temporary Impairment Losses On Investment Securities

Dominion Energy recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:


Year Ended December 31,	2017			2016			2015
(millions)

Total other-than-temporary impairment losses⁽¹⁾	$	44		$	51		$	66
Losses recorded to the nuclear decomissioning trust regulatory liability		(16	)		(16	)		(26	)
Losses recognized in other comprehensive income (before taxes)		(5	)		(12	)		(9	)
Net impairment losses recognized in earnings	$	23		$	23		$	31

(1)

Amounts include other-than-temporary impairment losses for debt securities of $5 million, $13 million and $9 million at December 31, 2017, 2016 and 2015, respectively.

Investments Accounts Under Equity Method of Accounting

Investments that Dominion Energy and Dominion Energy Gas account for under the equity method of accounting are as follows:


Company	Ownership %			Investment Balance					Description
As of December 31,				2017			2016
(millions)
Dominion Energy
Blue Racer		50	%	$	691		$	677		Midstream gas and related services
Iroquois		50	%⁽¹⁾		311			316		Gas transmission system
Atlantic Coast Pipeline		48	%		382			256		Gas transmission system
Fowler Ridge		50	%		81			116		Wind-powered merchant generation facility
NedPower		50	%		—	⁽²⁾		112		Wind-powered merchant generation facility
Other		various			79			84
Total				$	1,544		$	1,561
Dominion Energy Gas
Iroquois		24.07	%	$	95		$	98		Gas transmission system
Total				$	95		$	98

(1)

Comprised of Dominion Energy Midstream’s interest of 25.93% and Dominion Energy Gas’ interest of 24.07%. See Note 15 for more information.

(2)

Liability of $17 million associated with NedPower recorded to other deferred credits and other liabilities, on the Consolidated Balance Sheets as of December 31, 2017. See additional discussion of NedPower below.

Virginia Electric and Power Company

Available-For-Sale Securities

Virginia Power’s decommissioning trust funds are summarized below:


	Amortized Cost		Total Unrealized Gains⁽¹⁾		Total Unrealized Losses⁽¹⁾			Fair Value
(millions)
At December 31, 2017
Marketable equity securities:
U.S.		$ 734		$831		$—			$1,565
Fixed income:
Corporate debt instruments		216		8		—			224
Government securities		482		13		(2	)		493
Common/collective trust funds		27		—		—			27
Cost method investments		68		—		—			68
Cash equivalents and other⁽²⁾		22		—		—			22
Total		$1,549		$852		$(2	)⁽³⁾		$2,399
At December 31, 2016
Marketable equity securities:
U.S.		$ 677		$624		$—			$1,301
Fixed income:
Corporate debt instruments		274		6		(4	)		276
Government securities		420		9		(2	)		427
Common/collective trust funds		26		—		—			26
Cost method investments		69		—		—			69
Cash equivalents and other⁽²⁾		7		—		—			7
Total		$1,473		$639		$(6	)⁽³⁾		$2,106

(1)

Included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(2)

Includes pending sales of securities of $6 million and $7 million at December 31, 2017 and 2016, respectively.

(3)

The fair value of securities in an unrealized loss position was $234 million and $287 million at December 31, 2017 and 2016, respectively.

Investments Classified by Contractual Maturity Date

The fair value of Virginia Power’s marketable debt securities at December 31, 2017, by contractual maturity is as follows:


	Amount
(millions)

Due in one year or less		$ 32
Due after one year through five years		165
Due after five years through ten years		199
Due after ten years		348
Total		$744

Marketable Securities

Presented below is selected information regarding Virginia Power’s marketable equity and debt securities held in nuclear decommissioning trust funds.


Year Ended December 31,	2017		2016		2015
(millions)

Proceeds from sales	$	849	$	733	$	639
Realized gains⁽¹⁾		75		63		110
Realized losses⁽¹⁾		30		27		43

(1)

Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability as discussed in Note 2.

Other Than Temporary Impairment Losses On Investment Securities

Virginia Power recorded other-than-temporary impairment losses on investments held in nuclear decommissioning trust funds as follows:


Year Ended December 31,	2017			2016			2015
(millions)

Total other-than-temporary impairment losses⁽¹⁾	$	20		$	26		$	36
Losses recorded to the nuclear decomissioning trust regulatory liability		(16	)		(16	)		(26	)
Losses recognized in other comprehensive income (before taxes)		(2	)		(7	)		(6	)
Net impairment losses recognized in earnings	$	2		$	3		$	4

(1)

Amounts include other-than-temporary impairment losses for debt securities of $2 million, $8 million and $6 million at December 31, 2017, 2016 and 2015, respectively.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details