Investments (Tables)

6 Months Ended

Jun. 30, 2018

Dominion Energy’s decommissioning trust funds are summarized below:

	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses				Fair Value
(millions)
June 30, 2018
Equity securities:⁽¹⁾
U.S.	$	1,695	$	1,896	$	(14	)		$	3,577
Fixed income securities:⁽²⁾
Corporate debt instruments		447		6		(8	)			445
Government securities		1,058		16		(14	)			1,060
Common/collective trust funds		72		—		—				72
Cash equivalents and other⁽³⁾		5		—		—				5
Total	$	3,277	$	1,918	$	(36	)	⁽⁴⁾	$	5,159
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⁽³⁾		34		—		—				34
Total	$	3,200	$	1,899	$	(6	)	⁽⁴⁾	$	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)

Includes pending purchases of securities of $3 million at June 30, 2018 and pending sales of securities of $5 million at December 31, 2017.

(4)

The fair value of securities in an unrealized loss position was $900 million and $565 million at June 30, 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:

(millions)	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Net gains recognized during the period	$	89		$	24
Less: Net gains recognized during the period on securities sold during the period		(16	)		(35	)
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2018⁽¹⁾	$	73		$	(11	)

(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 June 30, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	321
Due after one year through five years		327
Due after five years through ten years		353
Due after ten years		576
Total	$	1,577

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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
(millions)
Proceeds from sales	$	425	$	363	$	844	$	1,119
Realized gains⁽¹⁾		36		23		72		117
Realized losses⁽¹⁾		23		16		42		36

(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)
June 30, 2018
Equity securities:⁽¹⁾
U.S.	$	837	$	861	$	(7	)		$	1,691
Fixed income securities:⁽²⁾
Corporate debt instruments		228		3		(4	)			227
Government securities		490		7		(5	)			492
Common/collective trust funds		32		—		—				32
Cash equivalents and other⁽³⁾		7		—		—				7
Total	$	1,594	$	871	$	(16	)	⁽⁴⁾	$	2,449
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⁽³⁾		22		—		—				22
Total	$	1,549	$	852	$	(2	)	⁽⁴⁾	$	2,399

(1)

(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)

Includes pending sales of securities of $5 million and $6 million at June 30, 2018 and December 31, 2017, respectively.

(4)

The fair value of securities in an unrealized loss position was $414 million and $234 million at June 30, 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:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
(millions)
Net gains recognized during the period	$	44		$	12
Less: Net gains recognized during the period on securities sold during the period		(8	)		(23	)
Unrealized gains (losses) recognized during the period on securities still held at June 30, 2018⁽¹⁾	$	36		$	(11	)

(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 June 30, 2018 by contractual maturity is as follows:

	Amount
(millions)
Due in one year or less	$	49
Due after one year through five years		158
Due after five years through ten years		216
Due after ten years		328
Total	$	751

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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
(millions)
Proceeds from sales	$	196	$	168	$	414	$	498
Realized gains⁽¹⁾		15		10		33		55
Realized losses⁽¹⁾		7		8		12		18

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