Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Regulatory Assets And Liabilities Disclosure [Abstract]

Regulatory assets and liabilities include the following:

	March 31, 2018		December 31, 2017
(millions)
Dominion Energy
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	78	$	70
Deferred nuclear refueling outage costs⁽²⁾		57		54
Deferred cost of fuel used in electric generation⁽³⁾		16		23
Unrecovered gas costs⁽⁴⁾		5		38
Other		107		109
Regulatory assets-current⁽⁵⁾		263		294
Unrecognized pension and other postretirement benefit costs⁽⁶⁾		1,316		1,336
Deferred rate adjustment clause costs⁽¹⁾		357		401
Deferred cost of fuel used in electric generation⁽³⁾		322		—
PJM transmission rates⁽⁷⁾		229		222
Utility reform legislation⁽⁸⁾		160		147
Derivatives⁽⁹⁾		157		223
Other		157		151
Regulatory assets-noncurrent		2,698		2,480
Total regulatory assets	$	2,961	$	2,774
Regulatory liabilities:
Reserve for rate credits to electric utility customers⁽¹⁰⁾	$	200	$	—
Provision for future cost of removal and AROs⁽¹¹⁾		101		101
PIPP⁽¹²⁾		9		20
Other		98		72
Regulatory liabilities-current⁽¹³⁾		408		193
Income taxes refundable through future rates⁽¹⁴⁾		4,047		4,058
Provision for future cost of removal and AROs⁽¹¹⁾		1,395		1,384
Nuclear decommissioning trust⁽¹⁵⁾		1,113		1,121
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		56		—
Other		366		353
Regulatory liabilities-noncurrent		6,977		6,916
Total regulatory liabilities	$	7,385	$	7,109
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	75	$	56
Deferred nuclear refueling outage costs⁽²⁾		57		54
Deferred cost of fuel used in electric generation⁽³⁾		16		23
Other		76		72
Regulatory assets-current⁽⁵⁾		224		205
Deferred cost of fuel used in electric generation⁽³⁾		322		—
Deferred rate adjustment clause costs⁽¹⁾		255		312
PJM transmission rates⁽⁷⁾		229		222
Derivatives⁽⁹⁾		124		190
Other		79		86
Regulatory assets-noncurrent		1,009		810
Total regulatory assets	$	1,233	$	1,015
Regulatory liabilities:
Reserve for rate credits to customers⁽¹⁰⁾	$	200	$	—
Provision for future cost of removal⁽¹¹⁾		80		80
Deferred cost of fuel used in electric generation⁽³⁾		4		8
Other		20		39
Regulatory liabilities-current		304		127
Income taxes refundable through future rates⁽¹⁴⁾		2,575		2,581
Nuclear decommissioning trust⁽¹⁵⁾		1,113		1,121
Provision for future cost of removal⁽¹¹⁾		922		915
Derivatives⁽⁹⁾		63		69
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		39		—
Other		84		74
Regulatory liabilities-noncurrent		4,796		4,760
Total regulatory liabilities	$	5,100	$	4,887
Dominion Energy Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	3	$	14
Unrecovered gas costs⁽⁴⁾		—		8
Other		3		4
Regulatory assets-current⁽⁵⁾		6		26
Unrecognized pension and other postretirement benefit costs⁽⁶⁾		255		258
Utility reform legislation⁽⁸⁾		160		147
Deferred rate adjustment clause costs⁽¹⁾		102		89
Other		23		17
Regulatory assets-noncurrent⁽¹⁷⁾		540		511
Total regulatory assets	$	546	$	537
Regulatory liabilities:
Provision for future cost of removal and AROs⁽¹¹⁾	$	13	$	13
PIPP⁽¹²⁾		9		20
Other		20		5
Regulatory liabilities-current⁽¹³⁾		42		38
Income taxes refundable through future rates⁽¹⁴⁾		995		998
Provision for future cost of removal and AROs⁽¹⁵⁾		161		160
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		9		—
Other		78		69
Regulatory liabilities-noncurrent⁽¹⁸⁾		1,243		1,227
Total regulatory liabilities	$	1,285	$	1,265

(1)

Primarily reflects deferrals under the electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects net of income taxes refundable from the 2017 Tax Reform Act for Virginia Power and deferrals of costs associated with certain current and prospective rider projects for Dominion Energy Gas. See Note 13 for more information.

(2)	Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

(3)	Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Dominion Energy's and Virginia Power's generation operations.

(4)	Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.

(5)	Current regulatory assets are presented in other current assets in the Companies’ Consolidated Balance Sheets.

(6)	Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy's and Dominion Energy Gas' rate-regulated subsidiaries.

(7)	Reflects amounts related to the PJM transmission cost allocation matter. See Note 13 for more information.

(8)

Ohio legislation under House Bill 95, which became effective in September 2011. This law updates natural gas legislation by enabling gas companies to include more up-to-date cost levels when filing rate cases. It also allows gas companies to seek approval of capital expenditure plans under which gas companies can recognize carrying costs on associated capital investments placed in service and can defer the carrying costs plus depreciation and property tax expenses for recovery from ratepayers in the future.

(9)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.

(10)	Charge associated with Virginia legislation enacted in March 2018 that requires one-time rate credits of certain amounts to utility customers. See Note 13 for more information.

(11)	Rates charged to customers by the Companies' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

(12)	Under PIPP, eligible customers can make reduced payments based on their ability to pay. The difference between the customer's total bill and the PIPP plan amount is deferred and collected or returned annually under the PIPP rate adjustment clause according to East Ohio tariff provisions.

(13)	Current regulatory liabilities are presented in other current liabilities in Dominion Energy’s and Dominion Energy Gas’ Consolidated Balance Sheets.

(14) Amounts recorded to pass the effect of reduced income taxes from the 2017 Tax Reform Act to customers in future periods, which will reverse at the weighted average tax rate that was used to build the reserves over the remaining book life of the property, net of amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC-equity.

(15)

Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon) for the future decommissioning of Virginia Power's utility nuclear generation stations, in excess of the related AROs.

(16)	Balance refundable to customers related to the decrease in revenue requirements for recovery of income taxes at the Companies’ regulated electric generation and electric and natural gas distribution operations. See Note 13 for more information.

(17)	Noncurrent regulatory assets are presented in other deferred charges and other assets in Dominion Energy Gas' Consolidated Balance Sheets.

(18)	Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas' Consolidated Balance Sheets.

Schedule of Regulatory Liabilities

Regulatory assets and liabilities include the following:

	March 31, 2018		December 31, 2017
(millions)
Dominion Energy
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	78	$	70
Deferred nuclear refueling outage costs⁽²⁾		57		54
Deferred cost of fuel used in electric generation⁽³⁾		16		23
Unrecovered gas costs⁽⁴⁾		5		38
Other		107		109
Regulatory assets-current⁽⁵⁾		263		294
Unrecognized pension and other postretirement benefit costs⁽⁶⁾		1,316		1,336
Deferred rate adjustment clause costs⁽¹⁾		357		401
Deferred cost of fuel used in electric generation⁽³⁾		322		—
PJM transmission rates⁽⁷⁾		229		222
Utility reform legislation⁽⁸⁾		160		147
Derivatives⁽⁹⁾		157		223
Other		157		151
Regulatory assets-noncurrent		2,698		2,480
Total regulatory assets	$	2,961	$	2,774
Regulatory liabilities:
Reserve for rate credits to electric utility customers⁽¹⁰⁾	$	200	$	—
Provision for future cost of removal and AROs⁽¹¹⁾		101		101
PIPP⁽¹²⁾		9		20
Other		98		72
Regulatory liabilities-current⁽¹³⁾		408		193
Income taxes refundable through future rates⁽¹⁴⁾		4,047		4,058
Provision for future cost of removal and AROs⁽¹¹⁾		1,395		1,384
Nuclear decommissioning trust⁽¹⁵⁾		1,113		1,121
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		56		—
Other		366		353
Regulatory liabilities-noncurrent		6,977		6,916
Total regulatory liabilities	$	7,385	$	7,109
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	75	$	56
Deferred nuclear refueling outage costs⁽²⁾		57		54
Deferred cost of fuel used in electric generation⁽³⁾		16		23
Other		76		72
Regulatory assets-current⁽⁵⁾		224		205
Deferred cost of fuel used in electric generation⁽³⁾		322		—
Deferred rate adjustment clause costs⁽¹⁾		255		312
PJM transmission rates⁽⁷⁾		229		222
Derivatives⁽⁹⁾		124		190
Other		79		86
Regulatory assets-noncurrent		1,009		810
Total regulatory assets	$	1,233	$	1,015
Regulatory liabilities:
Reserve for rate credits to customers⁽¹⁰⁾	$	200	$	—
Provision for future cost of removal⁽¹¹⁾		80		80
Deferred cost of fuel used in electric generation⁽³⁾		4		8
Other		20		39
Regulatory liabilities-current		304		127
Income taxes refundable through future rates⁽¹⁴⁾		2,575		2,581
Nuclear decommissioning trust⁽¹⁵⁾		1,113		1,121
Provision for future cost of removal⁽¹¹⁾		922		915
Derivatives⁽⁹⁾		63		69
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		39		—
Other		84		74
Regulatory liabilities-noncurrent		4,796		4,760
Total regulatory liabilities	$	5,100	$	4,887
Dominion Energy Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	3	$	14
Unrecovered gas costs⁽⁴⁾		—		8
Other		3		4
Regulatory assets-current⁽⁵⁾		6		26
Unrecognized pension and other postretirement benefit costs⁽⁶⁾		255		258
Utility reform legislation⁽⁸⁾		160		147
Deferred rate adjustment clause costs⁽¹⁾		102		89
Other		23		17
Regulatory assets-noncurrent⁽¹⁷⁾		540		511
Total regulatory assets	$	546	$	537
Regulatory liabilities:
Provision for future cost of removal and AROs⁽¹¹⁾	$	13	$	13
PIPP⁽¹²⁾		9		20
Other		20		5
Regulatory liabilities-current⁽¹³⁾		42		38
Income taxes refundable through future rates⁽¹⁴⁾		995		998
Provision for future cost of removal and AROs⁽¹⁵⁾		161		160
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁶⁾		9		—
Other		78		69
Regulatory liabilities-noncurrent⁽¹⁸⁾		1,243		1,227
Total regulatory liabilities	$	1,285	$	1,265

(1)

(2)	Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.

(3)	Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Dominion Energy's and Virginia Power's generation operations.

(4)	Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.

(5)	Current regulatory assets are presented in other current assets in the Companies’ Consolidated Balance Sheets.

(6)	Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered or refunded through future rates generally over the expected remaining service period of plan participants by certain of Dominion Energy's and Dominion Energy Gas' rate-regulated subsidiaries.

(7)	Reflects amounts related to the PJM transmission cost allocation matter. See Note 13 for more information.

(8)

(9)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.

(10)	Charge associated with Virginia legislation enacted in March 2018 that requires one-time rate credits of certain amounts to utility customers. See Note 13 for more information.

(11)	Rates charged to customers by the Companies' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.

(12)	Under PIPP, eligible customers can make reduced payments based on their ability to pay. The difference between the customer's total bill and the PIPP plan amount is deferred and collected or returned annually under the PIPP rate adjustment clause according to East Ohio tariff provisions.

(13)	Current regulatory liabilities are presented in other current liabilities in Dominion Energy’s and Dominion Energy Gas’ Consolidated Balance Sheets.

(15)

(16)	Balance refundable to customers related to the decrease in revenue requirements for recovery of income taxes at the Companies’ regulated electric generation and electric and natural gas distribution operations. See Note 13 for more information.

(17)	Noncurrent regulatory assets are presented in other deferred charges and other assets in Dominion Energy Gas' Consolidated Balance Sheets.

(18)	Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas' Consolidated Balance Sheets.