Regulatory Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Regulatory Assets And Liabilities Disclosure [Abstract]

Regulatory assets and liabilities include the following:

	September 30, 2018		December 31, 2017
(millions)
Dominion Energy
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	260	$	23
Deferred rate adjustment clause costs⁽²⁾		124		70
Deferred nuclear refueling outage costs⁽³⁾		58		54
Unrecovered gas costs⁽⁴⁾		3		38
Other		95		109
Regulatory assets-current		540		294
Unrecognized pension and other postretirement benefit costs⁽⁵⁾		1,276		1,336
Deferred rate adjustment clause costs⁽²⁾		312		401
PJM transmission rates⁽⁶⁾		265		222
Utility reform legislation⁽⁷⁾		189		147
Derivatives⁽⁸⁾		83		223
Other		191		151
Regulatory assets-noncurrent		2,316		2,480
Total regulatory assets	$	2,856	$	2,774
Regulatory liabilities:
Provision for future cost of removal and AROs⁽⁹⁾	$	101	$	101
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		80		—
Reserve for rate credits to electric utility customers⁽¹¹⁾		61		—
Other		93		92
Regulatory liabilities-current⁽¹²⁾		335		193
Income taxes refundable through future rates⁽¹³⁾		4,088		4,058
Provision for future cost of removal and AROs⁽⁹⁾		1,414		1,384
Nuclear decommissioning trust⁽¹⁴⁾		1,241		1,121
Other		403		353
Regulatory liabilities-noncurrent		7,146		6,916
Total regulatory liabilities	$	7,481	$	7,109
Virginia Power
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	260	$	23
Deferred rate adjustment clause costs⁽²⁾		101		56
Deferred nuclear refueling outage costs⁽³⁾		58		54
Other		60		72
Regulatory assets-current		479		205
Deferred rate adjustment clause costs⁽²⁾		225		312
PJM transmission rates⁽⁶⁾		265		222
Derivatives⁽⁸⁾		50		190
Other		96		86
Regulatory assets-noncurrent		636		810
Total regulatory assets	$	1,115	$	1,015
Regulatory liabilities:
Provision for future cost of removal⁽⁹⁾	$	80	$	80
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		67		—
Reserve for rate credits to customers⁽¹¹⁾		61		—
Other		42		47
Regulatory liabilities-current ⁽¹²⁾		250		127
Income taxes refundable through future rates⁽¹³⁾		2,561		2,581
Nuclear decommissioning trust⁽¹⁴⁾		1,241		1,121
Provision for future cost of removal⁽⁹⁾		938		915
Derivatives⁽⁸⁾		38		69
Other		112		74
Regulatory liabilities-noncurrent		4,890		4,760
Total regulatory liabilities	$	5,140	$	4,887
Dominion Energy Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽²⁾	$	23	$	14
Unrecovered gas costs⁽⁴⁾		—		8
Other		2		4
Regulatory assets-current⁽¹⁵⁾		25		26
Unrecognized pension and other postretirement benefit costs⁽⁵⁾		248		258
Utility reform legislation⁽⁷⁾		189		147
Deferred rate adjustment clause costs⁽²⁾		87		89
Other		27		17
Regulatory assets-noncurrent⁽¹⁶⁾		551		511
Total regulatory assets	$	576	$	537
Regulatory liabilities:
Provision for future cost of removal and AROs⁽⁹⁾	$	13	$	13
Overrecovered gas costs⁽⁴⁾		6		—
PIPP⁽¹⁷⁾		4		20
Other		9		5
Regulatory liabilities-current⁽¹²⁾		32		38
Income taxes refundable through future rates⁽¹³⁾		1,038		998
Provision for future cost of removal and AROs⁽⁹⁾		164		160
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		15		—
Other		92		69
Regulatory liabilities-noncurrent		1,309		1,227
Total regulatory liabilities	$	1,341	$	1,265

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

(2)

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.

(3)	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.

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

(5)	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.

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

(7)

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.

(8)	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.

(9)	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.

(10)	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.

(11)	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.

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

(13)

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.

(14)

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.

(15)	Current regulatory assets are presented in other current assets in Dominion Energy Gas’ Consolidated Balance Sheets.

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

(17)	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.

Schedule of Regulatory Liabilities

Regulatory assets and liabilities include the following:

	September 30, 2018		December 31, 2017
(millions)
Dominion Energy
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	260	$	23
Deferred rate adjustment clause costs⁽²⁾		124		70
Deferred nuclear refueling outage costs⁽³⁾		58		54
Unrecovered gas costs⁽⁴⁾		3		38
Other		95		109
Regulatory assets-current		540		294
Unrecognized pension and other postretirement benefit costs⁽⁵⁾		1,276		1,336
Deferred rate adjustment clause costs⁽²⁾		312		401
PJM transmission rates⁽⁶⁾		265		222
Utility reform legislation⁽⁷⁾		189		147
Derivatives⁽⁸⁾		83		223
Other		191		151
Regulatory assets-noncurrent		2,316		2,480
Total regulatory assets	$	2,856	$	2,774
Regulatory liabilities:
Provision for future cost of removal and AROs⁽⁹⁾	$	101	$	101
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		80		—
Reserve for rate credits to electric utility customers⁽¹¹⁾		61		—
Other		93		92
Regulatory liabilities-current⁽¹²⁾		335		193
Income taxes refundable through future rates⁽¹³⁾		4,088		4,058
Provision for future cost of removal and AROs⁽⁹⁾		1,414		1,384
Nuclear decommissioning trust⁽¹⁴⁾		1,241		1,121
Other		403		353
Regulatory liabilities-noncurrent		7,146		6,916
Total regulatory liabilities	$	7,481	$	7,109
Virginia Power
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	260	$	23
Deferred rate adjustment clause costs⁽²⁾		101		56
Deferred nuclear refueling outage costs⁽³⁾		58		54
Other		60		72
Regulatory assets-current		479		205
Deferred rate adjustment clause costs⁽²⁾		225		312
PJM transmission rates⁽⁶⁾		265		222
Derivatives⁽⁸⁾		50		190
Other		96		86
Regulatory assets-noncurrent		636		810
Total regulatory assets	$	1,115	$	1,015
Regulatory liabilities:
Provision for future cost of removal⁽⁹⁾	$	80	$	80
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		67		—
Reserve for rate credits to customers⁽¹¹⁾		61		—
Other		42		47
Regulatory liabilities-current ⁽¹²⁾		250		127
Income taxes refundable through future rates⁽¹³⁾		2,561		2,581
Nuclear decommissioning trust⁽¹⁴⁾		1,241		1,121
Provision for future cost of removal⁽⁹⁾		938		915
Derivatives⁽⁸⁾		38		69
Other		112		74
Regulatory liabilities-noncurrent		4,890		4,760
Total regulatory liabilities	$	5,140	$	4,887
Dominion Energy Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽²⁾	$	23	$	14
Unrecovered gas costs⁽⁴⁾		—		8
Other		2		4
Regulatory assets-current⁽¹⁵⁾		25		26
Unrecognized pension and other postretirement benefit costs⁽⁵⁾		248		258
Utility reform legislation⁽⁷⁾		189		147
Deferred rate adjustment clause costs⁽²⁾		87		89
Other		27		17
Regulatory assets-noncurrent⁽¹⁶⁾		551		511
Total regulatory assets	$	576	$	537
Regulatory liabilities:
Provision for future cost of removal and AROs⁽⁹⁾	$	13	$	13
Overrecovered gas costs⁽⁴⁾		6		—
PIPP⁽¹⁷⁾		4		20
Other		9		5
Regulatory liabilities-current⁽¹²⁾		32		38
Income taxes refundable through future rates⁽¹³⁾		1,038		998
Provision for future cost of removal and AROs⁽⁹⁾		164		160
Cost-of-service impact of 2017 Tax Reform Act⁽¹⁰⁾		15		—
Other		92		69
Regulatory liabilities-noncurrent		1,309		1,227
Total regulatory liabilities	$	1,341	$	1,265

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

(2)

(3)	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.

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

(5)	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.

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

(7)

(8)	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.

(9)	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.

(10)	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.

(11)	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.

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

(13)

(14)

(15)	Current regulatory assets are presented in other current assets in Dominion Energy Gas’ Consolidated Balance Sheets.

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

(17)	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.