Investments (Tables)

3 Months Ended

Mar. 31, 2018

Dominion Energy’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Fair Value
(millions)
March 31, 2018
Equity securities:⁽¹⁾
U.S.	$	1,676	$	1,824	$	(15	)		$	3,485
Fixed income securities:⁽²⁾
Corporate debt instruments		442		9		(6	)			445
Government securities		1,061		17		(12	)			1,066
Common/collective trust funds		56		—		—				56
Cash equivalents and other⁽⁴⁾		8		—		—				8
Total	$	3,243	$	1,850	$	(33	)	⁽³⁾	$	5,060
December 31, 2017
Equity securities:⁽²⁾
U.S.	$	1,569	$	1,857	$	—			$	3,426
Fixed income securities:⁽²⁾
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⁽⁴⁾		34		—		—				34
Total	$	3,200	$	1,899	$	(6	)	⁽³⁾	$	5,093

(1)	Effective January 2018, unrealized gains and losses on equity securities, including those previously classified as cost method investments, are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(2)	Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(3)	The fair value of securities in an unrealized loss position was $1.1 billion and $565 million at March 31, 2018 and December 31, 2017, respectively.

(4)	Includes pending sales of securities of $3 million and $5 million at March 31, 2018 and December 31, 2017, respectively.

Unrealized Gain Loss on Equity

The portion of unrealized gains and losses that relates to equity securities held within Dominion Energy’s nuclear decommissioning trusts is summarized below:

	March 31, 2018
(millions)
Net losses recognized during the period	$	(65	)
Less: Net gains recognized during the period on securities sold during the period		(19	)
Unrealized losses recognized during the period on securities still held at March 31, 2018⁽¹⁾	$	(84	)

(1)	Included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

Investments Classified by Contractual Maturity Date

The fair value of Dominion Energy’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	165
Due after one year through five years		375
Due after five years through ten years		375
Due after ten years		652
Total	$	1,567

Marketable Securities

Presented below is selected information regarding Dominion Energy’s equity and debt securities with readily determinable fair values held in nuclear decommissioning trust funds.

	Three Months Ended March 31,
	2018		2017
(millions)
Proceeds from sales	$	419	$	756
Realized gains⁽¹⁾		36		94
Realized losses⁽¹⁾		19		20

(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

Virginia Electric and Power Company

Available-For-Sale Securities

Virginia Power’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Fair Value
(millions)
March 31, 2018
Equity securities:⁽¹⁾
U.S.	$	828	$	829	$	(9	)		$	1,648
Fixed income securities:⁽²⁾
Corporate debt instruments		219		4		(2	)			221
Government securities		496		8		(5	)			499
Common/collective trust funds		25		—		—				25
Cash equivalents and other⁽⁴⁾		7		—		—				7
Total	$	1,575	$	841	$	(16	)	⁽³⁾	$	2,400
December 31, 2017
Equity securities:⁽²⁾
U.S.	$	734	$	831	$	—			$	1,565
Fixed income securities:⁽²⁾
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⁽⁴⁾		22		—		—				22
Total	$	1,549	$	852	$	(2	)	⁽³⁾	$	2,399

(1)

Effective January 2018, unrealized gains and losses on equity securities, including those previously classified as cost method investments, are included in other income and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(2)

Unrealized gains and losses on equity securities (for 2017) and fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability as discussed in Note 2.

(3)

The fair value of securities in an unrealized loss position was $510 million and $234 million at March 31, 2018 and December 31, 2017, respectively.

(4)

Includes pending sales of securities of $4 million and $6 million at March 31, 2018 and December 31, 2017, respectively.

Unrealized Gain Loss on Equity

The portion of unrealized gains and losses that relates to equity securities held within Virginia Power’s nuclear decommissioning trusts is summarized below:

	March 31, 2018
(millions)
Net losses recognized during the period	$	(32	)
Less: Net gains recognized during the period on securities sold during the period		(15	)
Unrealized losses recognized during the period on securities still held at March 31, 2018⁽¹⁾	$	(47	)

(1)

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

Investments Classified by Contractual Maturity Date

The fair value of Virginia Power’s debt securities with readily determinable fair values held in nuclear decommissioning trust funds at March 31, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	43
Due after one year through five years		155
Due after five years through ten years		208
Due after ten years		339
Total	$	745

Marketable Securities

Presented below is selected information regarding Virginia Power’s equity and debt securities with readily determinable fair values held in nuclear decommissioning trust funds.

	Three Months Ended March 31,
	2018		2017
(millions)
Proceeds from sales	$	218	$	330
Realized gains⁽¹⁾		18		45
Realized losses⁽¹⁾		5		10

(1)	Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.

- 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.

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