XML 103 R41.htm IDEA: XBRL DOCUMENT v3.20.1
Derivatives and Hedge Accounting Activities (Tables)
3 Months Ended
Mar. 31, 2020
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:

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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

 

$

55

 

 

$

3

 

 

$

 

 

$

52

 

 

$

35

 

 

$

21

 

 

$

 

 

$

14

 

Exchange

 

 

64

 

 

 

16

 

 

 

34

 

 

 

14

 

 

 

37

 

 

 

21

 

 

 

 

 

 

16

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

29

 

 

 

21

 

 

 

 

 

 

8

 

 

 

11

 

 

 

3

 

 

 

 

 

 

8

 

Foreign currency contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

8

 

 

 

 

 

 

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

148

 

 

$

40

 

 

$

34

 

 

$

74

 

 

$

91

 

 

$

53

 

 

$

 

 

$

38

 

 

(1)

Excludes $2 million and $2 million of derivative assets at March 31, 2020 and December 31, 2019, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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

 

$

27

 

 

$

3

 

 

$

1

 

 

$

23

 

 

$

105

 

 

$

21

 

 

$

 

 

$

84

 

Exchange

 

 

16

 

 

 

16

 

 

 

 

 

 

 

 

 

21

 

 

 

21

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

1,580

 

 

 

21

 

 

 

23

 

 

 

1,536

 

 

 

606

 

 

 

8

 

 

 

35

 

 

 

563

 

Foreign currency contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

17

 

 

 

 

 

 

 

 

 

17

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

1,640

 

 

$

40

 

 

$

24

 

 

$

1,576

 

 

$

735

 

 

$

53

 

 

$

35

 

 

$

647

 

 

(1)

Excludes $6 million and $5 million of derivative liabilities at March 31, 2020 and December 31, 2019, respectively, 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 at March 31, 2020. 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 its long and short positions.

 

 

 

Current

 

 

Noncurrent

 

Natural Gas (bcf):

 

 

 

 

 

 

 

 

Fixed price(1)

 

 

81

 

 

 

36

 

Basis

 

 

268

 

 

 

574

 

Electricity (MWh):

 

 

 

 

 

 

 

 

Fixed price

 

 

3,088,875

 

 

 

 

FTRs

 

 

18,836,472

 

 

 

 

Liquids (Gal)(2)

 

 

39,690,000

 

 

 

 

Interest rate(3)

 

$

2,450,000,000

 

 

$

5,582,850,761

 

Foreign currency(3)

 

-

 

 

250,000,000

 

 

(1)

Includes options.

(2)

Includes NGLs.

(3)

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 gains (losses) on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at March 31, 2020:

 

 

 

AOCI

After-Tax

 

 

Amounts Expected to be

Reclassified to Earnings

During the Next 12 Months

After-Tax

 

 

Maximum Term

(millions)

 

 

 

 

 

 

 

 

 

 

Commodities:

 

 

 

 

 

 

 

 

 

 

Gas

 

$

(2

)

 

$

(2

)

 

21 months

Electricity

 

 

14

 

 

 

14

 

 

9 months

NGL

 

 

1

 

 

 

1

 

 

9 months

Interest rate

 

 

(655

)

 

 

(50

)

 

381 months

Foreign currency

 

 

(9

)

 

 

(1

)

 

75 months

Total

 

$

(651

)

 

$

(38

)

 

 

Schedule of Amounts Recorded on Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:

 

 

 

Carrying Amount of the Hedged Asset

(Liability)(1)

 

 

Cumulative Amount of Fair Value Hedging

Adjustments Included in the Carrying Amount

of the Hedged Assets (Liabilities)(2)

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

March 31, 2020

 

 

December 31, 2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$

(1,154

)

 

$

(1,154

)

 

$

(4

)

 

$

(4

)

 

(1)

Includes $(1.1) billion and $(397) million related to discontinued hedging relationships at March 31, 2020 and December 31, 2019, respectively.

(2)

Includes $(4) million and $3 million of hedging adjustments on discontinued hedging relationships at March 31, 2020 and December 31, 2019, respectively.

Fair Value of Derivatives

Fair Value and Gains and Losses on Derivative Instruments

The following table presents 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)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

80

 

 

$

80

 

Interest rate

 

 

 

 

 

11

 

 

 

11

 

Total current derivative assets(1)

 

 

 

 

 

91

 

 

 

91

 

Noncurrent Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

 

41

 

 

 

41

 

Interest rate

 

 

 

 

 

18

 

 

 

18

 

Total noncurrent derivative assets(2)

 

 

 

 

 

59

 

 

 

59

 

Total derivative assets

 

$

 

 

$

150

 

 

$

150

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

45

 

 

$

45

 

Interest rate

 

 

515

 

 

 

232

 

 

 

747

 

Foreign currency

 

 

1

 

 

 

 

 

 

1

 

Total current derivative liabilities

 

 

516

 

 

 

277

 

 

 

793

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

 

4

 

 

 

4

 

Interest rate

 

 

722

 

 

 

111

 

 

 

833

 

Foreign currency

 

 

16

 

 

 

 

 

 

16

 

Total noncurrent derivative liabilities

 

 

738

 

 

 

115

 

 

 

853

 

Total derivative liabilities

 

$

1,254

 

 

$

392

 

 

$

1,646

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

30

 

 

$

37

 

 

$

67

 

Interest rate

 

 

1

 

 

 

 

 

 

1

 

Total current derivative assets(1)

 

 

31

 

 

 

37

 

 

 

68

 

Noncurrent Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

1

 

 

 

6

 

 

 

7

 

Interest rate

 

 

10

 

 

 

 

 

 

10

 

Foreign currency

 

 

8

 

 

 

 

 

 

8

 

Total noncurrent derivative assets(2)

 

 

19

 

 

 

6

 

 

 

25

 

Total derivative assets

 

$

50

 

 

$

43

 

 

$

93

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

6

 

 

$

77

 

 

$

83

 

Interest rate

 

 

321

 

 

 

1

 

 

 

322

 

Foreign currency

 

 

3

 

 

 

 

 

 

3

 

Total current derivative liabilities

 

 

330

 

 

 

78

 

 

 

408

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

1

 

 

 

47

 

 

 

48

 

Interest rate

 

 

267

 

 

 

17

 

 

 

284

 

Total noncurrent derivative liabilities

 

 

268

 

 

 

64

 

 

 

332

 

Total derivative liabilities

 

$

598

 

 

$

142

 

 

$

740

 

 

(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.

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(1)

 

 

Amount of Gain

(Loss) Reclassified

From AOCI to

Income

 

 

Increase

(Decrease) in

Derivatives

Subject to

Regulatory

Treatment(2)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Commodity:

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

$

7

 

 

 

 

 

Purchased gas

 

 

 

 

 

 

(3

)

 

 

 

 

Total commodity

 

$

 

 

$

4

 

 

$

 

Interest rate(3)

 

 

(336

)

 

 

(27

)

 

 

(563

)

Foreign currency(4)

 

 

(23

)

 

 

(6

)

 

 

 

Total

 

$

(359

)

 

$

(29

)

 

$

(563

)

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Commodity:

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

$

54

 

 

 

 

 

Purchased gas

 

 

 

 

 

 

3

 

 

 

 

 

Total commodity

 

$

66

 

 

$

57

 

 

$

 

Interest rate(3)

 

 

(84

)

 

 

(10

)

 

 

(84

)

Foreign currency(4)

 

 

(11

)

 

 

(6

)

 

 

 

Total

 

$

(29

)

 

$

41

 

 

$

(84

)

 

(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 (expense).

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)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

Commodity:

 

 

 

 

 

 

 

 

Operating revenue

 

$

65

 

 

$

3

 

Purchased gas

 

 

(14

)

 

 

3

 

Electric fuel and other energy-related purchases

 

 

(65

)

 

 

(9

)

Interest rate(2)

 

 

(61

)

 

 

 

Total

 

$

(75

)

 

$

(3

)

 

(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.

(2)

Amounts recorded in Dominion Energy’s Consolidated Statements of Income are classified in interest and related charges.

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:

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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

 

$

48

 

 

$

1

 

 

$

 

 

$

47

 

 

$

19

 

 

$

18

 

 

$

 

 

$

1

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

48

 

 

$

1

 

 

$

 

 

$

47

 

 

$

21

 

 

$

18

 

 

$

 

 

$

3

 

 

(1)

Excludes $3 million and $3 million of derivative assets at March 31, 2020 and December 31, 2019, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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

 

$

4

 

 

$

1

 

 

$

1

 

 

$

2

 

 

$

59

 

 

$

18

 

 

$

 

 

$

41

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

991

 

 

 

 

 

 

 

 

 

991

 

 

 

363

 

 

 

 

 

 

 

 

 

363

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

995

 

 

$

1

 

 

$

1

 

 

$

993

 

 

$

422

 

 

$

18

 

 

$

 

 

$

404

 

 

(1)

Excludes $20 million and $44 million of derivative liabilities at March 31, 2020 and December 31, 2019, 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 March 31, 2020. 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 its long and short positions.

 

 

 

Current

 

 

Noncurrent

 

Natural Gas (bcf):

 

 

 

 

 

 

 

 

Fixed price(1)

 

 

37

 

 

 

14

 

Basis

 

 

160

 

 

 

536

 

Electricity (MWh):

 

 

 

 

 

 

 

 

FTRs

 

 

18,836,472

 

 

 

 

Interest rate(2)

 

$

900,000,000

 

 

$

1,150,000,000

 

 

(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 gains (losses) on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at March 31, 2020:

 

 

 

AOCI

After-Tax

 

 

Amounts Expected to be

Reclassified to Earnings

During the Next 12

Months After-Tax

 

 

Maximum Term

(millions)

 

 

 

 

 

 

 

 

 

 

Interest rate

 

$

(79

)

 

$

(1

)

 

381 months

Total

 

$

(79

)

 

$

(1

)

 

 

Fair Value of Derivatives

The following table presents 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)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

14

 

 

$

14

 

Total current derivative assets(1)

 

 

 

 

 

14

 

 

 

14

 

Noncurrent Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

 

37

 

 

 

37

 

Total noncurrent derivative assets(2)

 

 

 

 

 

37

 

 

 

37

 

Total derivative assets

 

$

 

 

$

51

 

 

$

51

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

23

 

 

$

23

 

Interest rate

 

 

458

 

 

 

 

 

 

458

 

Total current derivative liabilities

 

 

458

 

 

 

23

 

 

 

481

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

1

 

 

 

1

 

Interest rate

 

 

533

 

 

 

 

 

 

533

 

Total noncurrent derivatives liabilities(3)

 

 

533

 

 

 

1

 

 

 

534

 

Total derivative liabilities

 

$

991

 

 

$

24

 

 

$

1,015

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

20

 

 

$

20

 

Total current derivative assets(1)

 

 

 

 

 

20

 

 

 

20

 

Noncurrent Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

 

2

 

 

 

2

 

Interest rate

 

 

2

 

 

 

 

 

 

2

 

Total noncurrent derivative assets(2)

 

 

2

 

 

 

2

 

 

 

4

 

Total derivative assets

 

$

2

 

 

$

22

 

 

$

24

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

 

 

$

58

 

 

$

58

 

Interest rate

 

 

185

 

 

 

 

 

 

185

 

Total current derivative liabilities

 

 

185

 

 

 

58

 

 

 

243

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

 

 

 

 

45

 

 

 

45

 

Interest rate

 

 

178

 

 

 

 

 

 

178

 

Total noncurrent derivatives liabilities(3)

 

 

178

 

 

 

45

 

 

 

223

 

Total derivative liabilities

 

$

363

 

 

$

103

 

 

$

466

 

 

(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)

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(1)

 

 

Amount of Gain

(Loss) Reclassified

From AOCI to

Income

 

 

Increase (Decrease)

in Derivatives

Subject to

Regulatory

Treatment(2)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

(61

)

 

$

 

 

$

(565

)

Total

 

$

(61

)

 

$

 

 

$

(565

)

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate(3)

 

$

(9

)

 

$

 

 

$

(84

)

Total

 

$

(9

)

 

$

 

 

$

(84

)

 

(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)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

Commodity(2)

 

$

(65

)

 

$

(9

)

Total

 

$

(65

)

 

$

(9

)

 

(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:

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

 

 

$

 

 

$

 

 

$

 

 

$

8

 

 

$

8

 

 

$

 

 

$

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

 

 

$

 

 

$

 

 

$

 

 

$

8

 

 

$

8

 

 

$

 

 

$

 

Offsetting Liabilities

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

$

190

 

 

$

 

 

$

 

 

$

190

 

 

$

83

 

 

$

5

 

 

$

 

 

$

78

 

Foreign currency contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Over-the-counter

 

 

17

 

 

 

 

 

 

 

 

 

17

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

Total derivatives, subject to a

   master netting or similar

   arrangement

 

$

207

 

 

$

 

 

$

 

 

$

207

 

 

$

86

 

 

$

8

 

 

$

 

 

$

78

 

Schedule of Volume of Derivative Activity

The following table presents the volume of Dominion Energy Gas’ derivative activity at March 31, 2020. 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 its long and short positions.

 

 

 

Current

 

 

Noncurrent

 

Interest rate(1)

 

$

250,000,000

 

 

$

1,050,000,000

 

Foreign currency(1)

 

-

 

 

250,000,000

 

 

(1)

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 gains (losses) on cash flow hedges included in AOCI in Dominion Energy Gas’ Consolidated Balance Sheet at March 31, 2020:

 

 

 

AOCI

After-Tax

 

 

Amounts Expected

to be Reclassified to

Earnings During the

Next 12 Months

After-Tax

 

 

Maximum Term

(millions)

 

 

 

 

 

 

 

 

 

 

Interest rate

 

$

(157

)

 

$

(11

)

 

297 months

Foreign currency

 

 

(9

)

 

 

(1

)

 

75 months

Total

 

$

(166

)

 

$

(12

)

 

 

Fair Value of Derivatives

The following tables present 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)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate

 

$

57

 

 

$

11

 

 

$

68

 

Foreign currency

 

 

1

 

 

 

 

 

 

1

 

Total current derivative liabilities(2)

 

 

58

 

 

 

11

 

 

 

69

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate

 

 

119

 

 

 

3

 

 

 

122

 

Foreign currency

 

 

16

 

 

 

 

 

 

16

 

Total noncurrent derivative liabilities(3)

 

 

135

 

 

 

3

 

 

 

138

 

Total derivative liabilities

 

$

193

 

 

$

14

 

 

$

207

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent Assets

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency

 

$

8

 

 

$

 

 

$

8

 

Total noncurrent derivative assets(1)

 

 

8

 

 

 

 

 

 

8

 

Total derivative assets

 

$

8

 

 

$

 

 

$

8

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate

 

$

30

 

 

$

 

 

$

30

 

Foreign currency

 

 

3

 

 

 

 

 

 

3

 

Total current derivative liabilities(2)

 

 

33

 

 

 

 

 

 

33

 

Noncurrent Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate

 

 

53

 

 

 

 

 

 

53

 

Total noncurrent derivative liabilities(3)

 

 

53

 

 

 

 

 

 

53

 

Total derivative liabilities

 

$

86

 

 

$

 

 

$

86

 

 

(1)

Noncurrent derivatives assets are presented in other deferred charges and other assets in Dominion Energy Gas’ Consolidated Balance Sheets.

(2)

Current derivative liabilities are presented in other current liabilities in Dominion Energy Gas’ Consolidated Balance Sheets.

(3)

Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy Gas’ Consolidated Balance Sheets. 

 

 

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents 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(1)

 

 

Amount of Gain

(Loss) Reclassified From AOCI

to Income

 

(millions)

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

Derivative Type and Location of Gains (Losses):

 

 

 

 

 

 

 

 

Interest rate(2)

 

$

(100

)

 

$

(2

)

Foreign currency(3)

 

 

(23

)

 

 

(6

)

Total

 

$

(123

)

 

$

(8

)

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

Derivative Type and Location of Gains (Losses):

 

 

 

 

 

 

 

 

Commodity:

 

 

 

 

 

 

 

 

Net income from discontinued operations

 

 

 

 

 

$

2

 

Total commodity

 

$

(1

)

 

$

2

 

Interest rate(2)

 

 

(24

)

 

 

1

 

Foreign currency(3)

 

 

(11

)

 

 

(6

)

Total

 

$

(36

)

 

$

(3

)

 

(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

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

Derivative type and location of gains (losses):

 

 

 

 

 

 

 

 

Interest rate(1)

 

$

(8

)

 

$

 

Total

 

$

(8

)

 

$

 

 

(1)

Amounts recorded in Dominion Energy Gas’ Consolidated Statements of Income are classified in interest and related charges.