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Derivatives and Hedge Accounting Activities (Tables)
Nov. 18, 2019
Offsetting Assets
The tables below present Dominion Energy’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
 
December 31, 2018
   
December 31, 2017
 
  
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
  
Gross Assets
Presented in the
Consolidated
Balance Sheet
(1)
 
  
Financial
Instruments
 
  
Cash
Collateral
Received
 
  
Net
Amounts
 
  
Gross Assets
Presented in the
Consolidated
Balance Sheet
(1)
    
Financial
Instruments
   
Cash
Collateral
Received
   
Net
Amounts
 
(millions)
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Commodity contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
$
175
 
  
$
12
 
  
$
—
 
  
$
163
 
   $
174
    $
9
    $
—
    $
165
 
Exchange
 
 
68
 
  
 
68
 
  
 
—
 
  
 
—
 
    
80
     
80
     
—
     
—
 
Interest rate contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
18
 
  
 
1
 
  
 
—
 
  
 
17
 
    
17
     
8
     
—
     
9
 
Foreign currency contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
26
 
  
 
2
 
  
 
—
 
  
 
24
 
    
32
     
2
     
—
     
30
 
                                                                 
Total derivatives, subject to a
master netting or
similar arrangement
  
$
287
 
  
$
83
 
  
$
—
 
  
$
204
 
   $
303
    $
99
    $
—
    $
204
 
                                                                 
(1)
Excludes $7 million and $4 million of derivative assets at December 31, 2018 and 2017, respectively, which are not subject to master netting or similar arrangements.
Offsetting Liabilities
 
December 31, 2018
   
December 31, 2017
 
  
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
  
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
(1)
 
  
Financial
Instruments
 
  
Cash
Collateral
Paid
 
  
Net
Amounts
 
  
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
(1)
    
Financial
Instruments
   
Cash
Collateral
Paid
   
Net
Amounts
 
(millions)
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Commodity contracts:
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Over-the-counter
 
$
19
 
  
$
12
 
  
$
—
 
  
$
7
 
   $
76
    $
9
    $
6
    $
61
 
Exchange
 
 
115
 
  
 
68
 
  
 
47
 
  
 
—
 
    
120
     
80
     
40
     
—
 
Interest rate contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
142
 
  
 
1
 
  
 
—
 
  
 
141
 
    
85
     
8
     
—
     
77
 
Foreign currency contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
2
 
  
 
2
 
  
 
—
 
  
 
—
 
    
2
     
2
     
—
     
—
 
 
                                                                
Total derivatives, subject to a master netting or similar arrangement
 
$
278
 
  
$
83
 
  
$
47
 
  
$
148
 
   $
283
    $
99
    $
46
    $
138
 
                                                                 
(1)
Excludes $1 million of derivative liabilities at December 31, 2018 and 2017, which are not subject to master netting or similar arrangements.
Schedule of Volume of Derivative Activity
The following table presents the volume of Dominion Energy’s derivative activity as of December 31, 2018. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
                 
 
            Current            
    
            Noncurrent            
  
Natural Gas (bcf):
   
     
 
Fixed price
(1)
  
 
56
 
  
 
27
 
Basis
 
 
214
 
  
 
557
 
Electricity (MWh):
   
     
 
Fixed price
(1)
  
 
11,101,869
 
  
 
1,537,200
 
FTRs
 
 
45,351,415
 
  
 
—
 
Liquids (Gal)
(2)
  
 
14,413,200
 
  
 
—
 
Interest rate
(3)
  
$
2,700,000,000
 
  
$
3,915,839,913
 
Foreign currency
(3)(4)
  
$
—
 
  
$
280,000,000
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes options.
 
 
 
 
 
 
 
(2)
Includes NGLs and oil.
 
 
 
 
 
 
 
(3)
Maturity is determined based on final settlement period.
 
 
 
 
 
 
 
(4)
Euro equivalent volumes are
€
 250,000,000.
 
 
 
 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at December 31, 2018:
                         
 
 
 
AOCI After-
T
ax  
    
Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax
   
    Maximum Term    
  
(millions)
 
 
  
 
  
 
Commodities:
   
     
     
 
 
Gas
 
$
—
 
  
$
1
 
  
 
36 months
 
 
Electricity
 
 
27
 
  
 
26
 
  
 
24 months
 
 
Other
 
 
2
 
  
 
2
 
  
 
3 months
 
Interest rate
 
 
(276
)
 
 
(29
)
 
 
396 months
 
Foreign currency
 
 
12
 
  
 
(2
)
 
 
90 months
 
                         
 
Total
 
$
(235
)
 
$
(2
)
   
 
                         
 
 
 
 
 
Fair Value of Derivatives
The following tables present the fair values of Dominion Energy’s derivatives and where they are presented in its Consolidated Balance Sheets:
                         
 
Fair Value –
Derivatives under
  Hedge Accounting  
 
  
Fair Value –
  Derivatives not under  
Hedge Accounting
 
  
  Total Fair Value  
 
(millions)
 
 
  
 
  
 
At December 31, 2018
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Current Assets
 
 
 
  
 
 
  
 
 
Commodity
 
$
55
 
  
$
154
 
  
$
209
 
Interest rate
 
 
14
 
  
 
—
 
  
 
14
 
                         
Total current derivative assets
(1)
  
 
69
 
  
 
154
 
  
 
223
 
                         
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Commodity
 
 
6
 
  
 
35
 
  
 
41
 
Interest rate
 
 
4
 
  
 
—
 
  
 
4
 
Foreign currency
 
 
26
 
  
 
—
 
  
 
26
 
                         
Total noncurrent derivative assets
(2)
  
 
36
 
  
 
35
 
  
 
71
 
 
                        
Total derivative assets
 
$
105
 
  
$
189
 
  
$
294
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Commodity
 
$
17
 
  
$
112
 
  
$
129
 
Interest rate
 
 
26
 
  
 
—
 
  
 
26
 
Foreign currency
 
 
2
 
  
 
—
 
  
 
2
 
                         
Total current derivative liabilities
(3)
  
 
45
 
  
 
112
 
  
 
157
 
                         
Noncurrent Liabilities
 
 
 
  
 
 
  
 
 
Commodity
 
 
5
 
  
 
1
 
  
 
6
 
Interest rate
 
 
116
 
  
 
—
 
  
 
116
 
                         
Total noncurrent derivative liabilities
(4)
  
 
121
 
  
 
1
 
  
 
122
 
                         
Total derivative liabilities
 
$
166
 
  
$
113
 
  
$
279
 
                         
At December 31, 2017
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Current Assets
 
 
 
  
 
 
  
 
 
Commodity
  $
5
    $
158
    $
163
 
Interest rate
   
6
     
—
     
6
 
                         
Total current derivative assets
(1)
    
11
     
158
     
169
 
                         
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Commodity
   
—
     
95
     
95
 
Interest rate
   
11
     
—
     
11
 
Foreign currency
   
32
     
—
     
32
 
                         
Total noncurrent derivative assets
(2)
    
43
     
95
     
138
 
                         
Total derivative assets
  $
54
    $
253
    $
307
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Commodity
  $
103
    $
92
    $
195
 
Interest rate
   
53
     
—
     
53
 
Foreign currency
   
2
     
—
     
2
 
                         
Total current derivative liabilities
(3)
    
158
     
92
     
250
 
                         
Noncurrent Liabilities
 
 
 
  
 
 
  
 
 
Commodity
   
1
     
1
     
2
 
Interest rate
   
32
     
—
     
32
 
                         
Total noncurrent derivative liabilities
(4)
    
33
     
1
     
34
 
                         
Total derivative liabilities
  $
191
    $
93
    $
284
 
                         
 
 
 
 
 
 
 
 
 
(1)
Current derivative assets are presented in other current assets in Dominion Energy’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
(2)
Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
(3)
Current derivative liabilities are presented in other current liabilities in Dominion Energy’s Consolidated Balance Sheets.
 
 
 
 
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
 
 
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables present the gains and losses on Dominion Energy’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:
                         
Derivatives in cash flow hedging relationships
 
Amount of Gain
(Loss) Recognized
in AOCI on
Derivatives (Effective
Portion)
(1)
 
  
Amount of Gain
(Loss) Reclassified
From AOCI to
Income
 
  
Increase
(Decrease) in
Derivatives
Subject to
Regulatory
Treatment
(2)
 
(millions)
 
   
   
 
Year Ended December 31, 2018
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity:
   
     
     
 
Operating revenue
   
   
$
(90
)
   
 
Electric fuel and other energy-related purchases
   
   
 
14
 
    
 
                         
Total commodity
 
$
64
 
  
$
(76
)
 
$
—
 
 
                        
Interest rate
(3)
  
 
(18
)
 
 
(48
)
 
 
39
 
Foreign currency
(4)
  
 
(6
)
 
 
(13
)
 
 
—
 
 
                        
Total
 
$
40
 
  
$
(137
)
 
$
39
 
                         
Year Ended December 31, 2017
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity:
   
     
     
 
Operating revenue
   
    $
81
     
 
Purchased gas
   
     
(2
 )    
 
                         
Total commodity
  $
1
    $
79
    $
—
 
 
                        
Interest rate
(3)
    
(8
 )    
(52
 )    
(58
 )
Foreign currency
(4)
    
18
     
20
     
—
 
 
                        
Total
  $
11
    $
47
    $
(58
 )
                         
Year Ended December 31, 2016
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity:
   
     
     
 
Operating revenue
   
    $
330
     
 
Purchased gas
   
     
(13
 )    
 
Electric fuel and other energy-related purchases
   
     
(10
 )    
 
                         
Total commodity
  $
164
    $
307
    $
—
 
 
                        
Interest rate
(3)
    
(66
 )    
(31
 )    
(26
 )
Foreign currency
(4)
    
(6
 )    
(17
 )    
—
 
 
                        
Total
  $
92
    $
259
    $
(26
 )
                         
 
 
 
 
 
 
 
 
 
 
(1)
Amounts deferred into AOCI have no associated effect in Dominion Energy’s Consolidated Statements of Income.
 
 
 
 
 
 
 
 
 
(2)
Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.
 
 
 
 
 
 
 
 
 
(3)
Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.
 
 
 
 
 
 
 
 
 
(4)
Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in other income.
 
 
 
 
 
 
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
                         
Derivatives not designated as hedging instruments
 
Amount of Gain (Loss) Recognized in Income on
Derivatives
(1)
  
Year Ended December 31,
 
            2018            
 
  
            2017            
    
            2016            
  
(millions)
 
 
  
 
  
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity:
   
     
     
 
Operating revenue
 
$
(28
)
  $
18
    $
2
 
Purchased gas
 
 
11
 
    
(3
 )    
4
 
Electric fuel and other energy-related purchases
 
 
(9
)
   
(59
 )    
(70
 )
Other operations & maintenance
 
 
—
 
    
(1
 )    
1
 
 
                        
Total
 
$
             (26
)
  $
             (45
 )   $
             (63
 )
                         
 
 
 
 
 
 
 
(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.
 
 
 
 
 
 
 
 
 
Virginia Electric and Power Company  
Offsetting Assets
The tables below present Virginia Power’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
                                                                 
 
December 31, 2018
   
December 31, 2017
 
 
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
 
Gross Assets
Presented in the
Consolidated
Balance Sheet
(1)
 
  
Financial
Instruments
 
  
Cash
Collateral
Received
 
  
Net
Amounts
 
  
Gross Assets
Presented in the
Consolidated
Balance Sheet
(1)
    
Financial
Instruments
   
Cash
Collateral
Received
   
Net
Amounts
 
(millions)
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Commodity contracts:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Over-the-counter
 
$
64
 
  
$
6
 
  
$
—
 
  
$
58
 
   $
155
    $
4
    $
—
    $
151
 
Interest rate contracts:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Over-the-counter
 
 
3
 
  
 
—
 
  
 
—
 
  
 
3
 
    
—
     
—
     
—
     
—
 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
67
 
  
$
6
 
  
$
—
 
  
$
61
 
   $
155
    $
4
    $
—
    $
151
 
                                                                 
 
 
 
 
 
 
 
 
 
 
(1)
Excludes $26 million and $11 million of derivative assets at December 31, 2018 and 2017, respectively, which are not subject to master netting or similar arrangements.
 
 
 
 
 
 
Offsetting Liabilities
                                                                 
 
December 31, 2018
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
December 31, 2017
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
 
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
(1)
 
  
Financial
Instruments
 
  
Cash
Collateral
Paid
 
  
Net
Amounts
 
  
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
(1)
    
Financial
Instruments
   
Cash
Collateral
Paid
   
Net
Amounts
 
(millions)
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
Commodity contracts:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Over-the-counter
 
$
6
 
  
$
6
 
  
$
—
 
  
$
—
 
   $
4
    $
4
    $
—
    $
—
 
Interest rate contracts:
 
 
 
  
 
 
  
 
 
  
 
 
    
     
     
     
 
Over-the-counter
 
 
88
 
  
 
—
 
  
 
—
 
  
 
88
 
    
57
     
—
     
—
     
57
 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
  
$
94
 
  
$
6
 
  
$
       —
 
  
$
88
 
   $
61
    $
4
    $
—
    $
57
 
                                                                 
 
 
 
 
 
 
 
 
 
 
(1)
Excludes $9 million and $5 million of derivative liabilities at December 31, 2018 and 2017, respectively, which are not subject to master netting or similar arrangements.
 
 
 
 
 
 
Schedule of Volume of Derivative Activity
The following table presents the volume of Virginia Power’s derivative activity at December 31, 2018. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
                 
 
            Current            
    
            Noncurrent            
  
Natural Gas (bcf):
   
     
 
Fixed price
(1)
  
 
29
 
  
 
8
 
Basis
 
 
136
 
  
 
488
 
Electricity (MWh):
   
     
 
Fixed price
(1)
  
 
367,019
 
  
 
—
 
FTRs
 
 
45,351,415
 
  
 
—
 
Interest rate
(2)
  
$
700,000,000
 
  
$
1,200,000,000
 
 
 
 
 
 
 
 
(1)
Includes options.
(2)
Maturity is determined based on final settlement period.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents selected information related to losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at December 31, 2018:
 
  AOCI After-
T
ax  
    
Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax
   
    Maximum Term    
  
(millions)
 
 
  
 
  
 
Interest rate
 
$
(13
)
 
$
(1
)
 
 
396 months
 
                         
Total
 
$
(13
)
 
$
(1
)
   
 
                         
Fair Value of Derivatives
The following tables present the fair values of Virginia Power’s derivatives and where they are presented in its Consolidated Balance Sheets:
 
Fair Value –
Derivatives under
Hedge Accounting
 
  
Fair Value –
Derivatives not under
Hedge Accounting
 
  
Total Fair Value
 
(millions)
 
   
   
 
At December 31, 2018
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Current Assets
 
 
 
  
 
 
  
 
 
Commodity
 
$
—
 
  
$
60
 
  
$
60
 
Interest rate
 
 
3
 
  
 
—
 
  
 
3
 
                         
Total current derivative assets
(1)
  
 
3
 
  
 
60
 
  
 
63
 
                         
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Commodity
 
 
—
 
  
 
30
 
  
 
30
 
                         
Total noncurrent derivative assets
(2)
  
 
—
 
  
 
30
 
  
 
30
 
 
                        
Total derivative assets
 
$
3
 
  
$
90
 
  
$
93
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Commodity
 
$
—
 
  
$
15
 
  
$
15
 
Interest rate
 
 
10
 
  
 
—
 
  
 
10
 
                         
Total current derivative liabilities
(3)
  
 
10
 
  
 
15
 
  
 
25
 
                         
Noncurrent Liabilities
 
 
 
  
 
 
  
 
 
Interest rate
 
 
78
 
  
 
—
 
  
 
78
 
                         
Total noncurrent derivatives liabilities
(4)
  
 
78
 
  
 
—
 
  
 
78
 
 
                        
Total derivative liabilities
 
$
88
 
  
$
15
 
  
$
103
 
                         
At December 31, 2017
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Current Assets
 
 
 
  
 
 
  
 
 
Commodity
  $
—
    $
75
    $
75
 
                         
Total current derivative assets
(1)
    
—
     
75
     
75
 
                         
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Commodity
   
—
     
91
     
91
 
                         
Total noncurrent derivative assets
(2)
    
—
     
91
     
91
 
 
                        
Total derivative assets
  $
—
    $
166
    $
166
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Commodity
  $
—
    $
9
    $
9
 
Interest rate
   
44
     
—
     
44
 
                         
Total current derivative liabilities
(3)
    
44
     
9
     
53
 
                         
Noncurrent Liabilities
 
 
 
  
 
 
  
 
 
Interest rate
   
13
     
—
     
13
 
                         
Total noncurrent derivative liabilities
(4)
    
13
     
—
     
13
 
 
                        
Total derivative liabilities
  $
             
57
    $
               
9
    $
             
66
 
                         
(1)
Current derivative assets are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.
(2)
Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power’s Consolidated Balance Sheets.
(3)
Current derivative liabilities are presented in other current liabilities in Virginia Power’s Consolidated Balance Sheets.
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheets.
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables present the gains and losses on Virginia Power’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:
Derivatives in cash flow hedging relationships
 
Amount of Gain
(Loss) Recognized
in AOCI on
Derivatives (Effective
Portion)
(1)
 
  
Amount of Gain
(Loss) Reclassified
From AOCI to
Income
 
  
Increase
(Decrease) in
Derivatives
Subject to
Regulatory
Treatment
(2)
 
(millions)
 
   
   
 
Year Ended December 31, 2018
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Interest rate
(3)
  
$
2
 
  
$
(1
)
 
$
39
 
 
                        
Total
 
$
2
 
  
$
(1
)
 
$
39
 
                         
Year Ended December 31, 2017
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Interest rate
(3)
   $
(8
 )   $
(1
 )   $
(58
 )
 
                        
Total
  $
(8
 )   $
(1
 )   $
(58
 )
                         
Year Ended December 31, 2016
 
 
 
  
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
     
 
Interest rate
(3)
   $
(3
 )   $
(1
 )   $
(26
 )
 
                        
Total
  $
(3
 )   $
(1
 )   $
(26
 )
                         
(1)
Amounts deferred into AOCI have no associated effect in Virginia Power’s Consolidated Statements of Income.
(2)
Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.
(3)
Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in interest and related charges.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
Derivatives not designated as hedging instruments
 
    Amount of Gain (Loss) Recognized in Income on    
Derivatives
(1)
  
Year Ended December 31,
 
2018
 
  
2017
 
  
2016
 
(millions)
 
   
   
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity
(2)
  
$
2
 
   $
(57
 )   $
(70
 )
 
                        
Total
 
$
2
 
   $
(57
 )   $
(70
 )
                         
(1)
Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.
(2)
Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in electric fuel and other energy-related purchases.
Dominion Energy Gas Holdings, LLC  
Offsetting Assets
The tables below present Dominion Energy Gas’ derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:
 
December 31, 2018
   
December 31, 2017
 
  
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
  
Gross Assets
Presented in the
Consolidated
Balance Sheet
 
  
Financial
Instruments
 
  
Cash
Collateral
Received
 
  
Net
Amounts
 
  
Gross Assets
Presented in the
Consolidated
Balance Sheet
   
Financial
Instruments
   
Cash
Collateral
Received
   
Net
Amounts
 
(millions)
 
   
   
   
   
   
   
   
 
Commodity contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
$
3
 
  
$
—
 
  
$
 —
 
  
$
3
 
   $
 —
     $
—
     $
—
     $
—
  
Interest rate contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
2
 
  
 
—
 
  
 
—
 
  
 
2
 
    
1
     
—
      
—
      
1
 
Foreign currency contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
26
 
  
 
2
 
  
 
—
 
  
 
24
 
    
32
     
2
     
—
      
30
 
                                                                 
Total derivatives, subject to a master netting or similar arrangement
 
$
             
31
 
  
$
             
2
 
  
$
             
—
 
  
$
             
29
 
   $
             
33
    $
             
2
    $
         
—
     $
         
31
 
                                                                 
Offsetting Liabilities
 
December 31, 2018
   
December 31, 2017
 
  
Gross Amounts Not Offset in the Consolidated
Balance Sheet
   
Gross Amounts Not Offset in the Consolidated
Balance Sheet
 
 
  
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
 
  
Financial
Instruments
 
  
Cash
Collateral
Paid
 
  
Net
Amounts
 
  
Gross
Liabilities
Presented in the
Consolidated
Balance Sheet
    
Financial
 
Instruments
 
    
Cash
Collateral
Paid
    
Net
Amounts
  
(millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
   
     
     
     
     
     
     
     
 
Over-the-counter
 
$
 — 
 
  
$
 —
 
  
$
—
 
  
$
—
 
   $
6
    $
—
     $
—
     $
6
 
Interest rate contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
17
 
  
 
—
 
  
 
—
 
  
 
17
 
    
—
      
—
      
—
      
—
  
Foreign currency contracts:
   
     
     
     
     
     
     
     
 
Over-the-counter
 
 
2
 
  
 
2
 
  
 
—
 
  
 
—
 
    
2
     
2
     
—
      
—
  
                                                                 
Total
 
derivatives,
 
subject
 
to
 
a
master
 
netting
 
or
 
similar
arrangement
 
$
             
19
 
  
$
             
2
 
  
$
             
—
 
  
$
            
17
 
   $
             
8
    $
    
 
      
2
    $
     
 
    
—
     $
 
 
     
 
    
6
 
                                                                 
Schedule of Volume of Derivative Activity
The following table presents the volume of Dominion Energy Gas’ derivative activity at December 31, 2018. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions.
 
Current
   
Noncurrent
 
NGLs (Gal)
 
 
14,413,200
 
  
 
—
 
Interest rate
(1)
  
$
       
600,000,000
 
  
$
       
750,000,000
 
Foreign currency
(1)(2)
  
$
—
 
  
$
280,000,000
 
(1)
Maturity is determined based on final settlement period.
(2)
Euro equivalent volumes are
€
250,000,000.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents selected information related to gains (losses) on cash flow hedges included in AOCI in Dominion Energy Gas’ Consolidated Balance Sheet at December 31, 2018:
                         
 
 AOCI After-
T
ax 
    
Amounts Expected to be
Reclassified to Earnings
During the Next 12 Months
After-Tax
   
  Maximum Term  
  
(millions)
 
   
   
 
Commodities:
   
     
     
 
NGLs
 
$
2
 
  
$
2
 
  
 
3 months
 
Interest rate
 
 
(39
)
  
 
(3
)
 
 
312 months
 
Foreign currency
 
 
12
 
  
 
(2
)
 
 
90 months
 
                         
Total
 
$
   
 
       
(25
)
  
$
(3
)
   
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value of Derivatives The following table presents the fair values of Dominion Energy Gas’ derivatives and where they are presented in its Consolidated Balance Sheets:
                         
 
Fair Value –
Derivatives under
 Hedge Accounting 
 
  
Fair Value –
Derivatives not under
Hedge Accounting
 
  
 Total Fair Value 
 
(millions)
 
   
   
 
At December 31, 2018
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Current Assets
 
 
 
  
 
 
  
 
 
Commodity
 
$
3
 
  
$
—
 
  
$
3
 
Interest rate
 
 
2
 
  
 
—
 
  
 
2
 
                         
Total current derivative assets
(1)
  
 
5
 
  
 
—
 
  
 
5
 
                         
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Foreign currency
 
 
26
 
  
 
—
 
  
 
26
 
                         
Total noncurrent derivative assets
(2)
  
 
26
 
  
 
—
 
  
 
26
 
 
                        
Total derivative assets
 
$
31
 
  
$
—
 
  
$
31
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Interest rate
 
$
9
 
  
$
—
 
  
$
9
 
Foreign currency
 
 
2
 
  
 
—
 
  
 
2
 
                         
Total current derivative liabilities
(3)
  
 
11
 
  
 
—
 
  
 
11
 
                         
Noncurrent Liabilities
 
 
 
  
 
 
  
 
 
Interest rate
 
 
8
 
  
 
—
 
  
 
8
 
                         
Total noncurrent derivative liabilities
(4)
  
 
8
 
  
 
—
 
  
 
8
 
 
                        
Total derivative liabilities
 
$
19
 
  
$
—
 
  
$
19
 
                         
At December 31, 2017
 
 
 
  
 
 
  
 
 
ASSETS
 
 
 
  
 
 
  
 
 
Noncurrent Assets
 
 
 
  
 
 
  
 
 
Interest rate
  $
1
    $
—
     $
1
 
Foreign currency
   
32
     
—
      
32
 
                         
Total noncurrent derivative assets
(2)
    
33
     
—
      
33
 
 
                        
Total derivative assets
  $
33
    $
—
     $
33
 
                         
LIABILITIES
 
 
 
  
 
 
  
 
 
Current Liabilities
 
 
 
  
 
 
  
 
 
Commodity
  $
6
    $
—
     $
6
 
Foreign currency
   
2
     
—
      
2
 
                         
Total current derivative liabilities
(
5
)
    
8
     
—
      
8
 
 
                        
Total derivative liabilities
  $
8
    $
—
     $
8
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Current derivative assets
include $2 million 
in other current assets
, with the remainder recorded in
 current assets of discontinued operations in Dominion Energy Gas’ Consolidated Balance Sheets.
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)
Current derivative liabilities are presented in other current liabilities and current liabilities of discontinued operations in Dominion Energy Gas’ Consolidated Balance Sheets.
 
 
 
 
 
 
 
 
 
 
 
 
 
(4)
Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.
 
 
(5)
Current derivative liabilities include $2 million in other current liabilities, with the remainder recorded in current liabilities of discontinued operations in Dominion Energy Gas’ Consolidated Balance Sheets.
 
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables present the gains and losses on Dominion Energy Gas’ derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:
Derivatives in cash flow hedging relationships
 
Amount of Gain
(Loss) Recognized in
  AOCI on Derivatives  
(Effective Portion)
(1)
 
  
Amount of Gain
(Loss) Reclassified
  From AOCI to Income  
 
(millions)
 
   
 
Year Ended December 31, 2018
 
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
 
Commodity:
   
     
 
Net
i
ncome from discontinued operations
   
   
$
(8
)
                 
Total commodity
 
$
1
 
  
$
(8
)
 
                
Interest rate
(2)
  
 
(16
)
 
 
(5
)
Foreign currency
(3)
  
 
(6
)
 
 
(13
)
 
                
Total
 
$
(21
)
 
$
(26
)
                 
Year Ended December 31, 2017
 
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
 
Commodity:
   
     
 
Net
i
ncome from discontinued operations
   
    $
(8
 )
                 
Total commodity
  $
(10
 )   $
(8
 )
 
                
Interest rate
(2)
    
1
      
(6
 )
Foreign currency
(3)
    
18
     
20
 
 
                
Total
  $
9
    $
6
 
                 
Year Ended December 31, 2016
 
 
 
  
 
 
Derivative type and location of gains (losses):
   
     
 
Commodity:
   
     
 
Net
i
ncome from discontinued operations
   
    $
4
 
                 
Total commodity
  $
(12
 )   $
4
 
 
                
Interest rate
(2)
    
(8
 )    
(2
 )
Foreign currency
(3)
    
(6
 )    
(17
 )
 
                
Total
  $
(26
 )   $
(15
 )
                 
(1)
Amounts deferred into AOCI have no associated effect in Dominion Energy Gas’ Consolidated Statements of Income.
(2)
Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.
(3)
Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in other income.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
Derivatives not designated as hedging instruments
 
Amount of Gain (Loss) Recognized in Income on
Derivatives
 
Year Ended December 31,
 
2018
 
  
2017
   
2016
 
(millions)
 
 
 
 
 
 
Derivative type and location of gains (losses):
   
     
     
 
Commodity
   
     
     
 
Operating revenue
 
$
(11
)
  $
—
    $
1
 
 
                        
Total
 
$
(11
)
  $
—
    $
1