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Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Equity and Debt Securities and Cash Equivalents and Cost Method Investments in Decommissioning Trust Funds Dominion Energy’s decommissioning trust funds are summarized below:

 

 

 

Amortized

Cost

 

 

Total

Unrealized

Gains

 

 

Total

Unrealized

Losses

 

 

Allowance for Credit Losses

 

 

Fair

Value

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,701

 

 

$

2,221

 

 

$

(71

)

 

$

—

 

 

$

3,851

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

577

 

 

 

48

 

 

 

(1

)

 

 

—

 

 

 

624

 

Government securities

 

 

1,119

 

 

 

62

 

 

 

(1

)

 

 

—

 

 

 

1,180

 

Common/collective trust funds

 

 

146

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

148

 

Insurance contracts

 

 

223

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

223

 

Cash equivalents and other(3)

 

 

(8

)

 

 

2

 

 

 

(2

)

 

 

—

 

 

 

(8

)

Total

 

$

3,758

 

 

$

2,335

 

 

$

(75

)

(4)

$

—

 

(5)

$

6,018

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

1,807

 

 

$

2,451

 

 

$

(20

)

 

$

—

 

 

$

4,238

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

434

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

463

 

Government securities

 

 

1,108

 

 

 

39

 

 

 

(2

)

 

 

—

 

 

 

1,145

 

Common/collective trust funds

 

 

115

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

119

 

Insurance contracts

 

 

214

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

214

 

Cash equivalents and other(3)

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13

 

Total

 

$

3,691

 

 

$

2,523

 

 

$

(22

)

(4)

$

—

 

 

$

6,192

 

 

(1)

Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Effective January 2020, changes in allowance for credit losses are included in other income.

(3)

Includes pending purchases of securities of $35 million and $1 million at June 30, 2020 and December 31, 2019, respectively.

(4)

The fair value of securities in an unrealized loss position was $181 million and $298 million at June 30, 2020 and December 31, 2019, respectively.

(5)

The allowance for credit losses associated with fixed income securities decreased from March 31, 2020 by $21 million.  These recoveries are a result of improvements in credit spreads experienced in the market between March 31, 2020 and June 30, 2020.     
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:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) recognized during the period

 

$

610

 

 

$

156

 

 

$

(288

)

 

$

570

 

Less: Net (gains) losses recognized during the period

   on securities sold during the period

 

 

(5

)

 

 

(25

)

 

 

9

 

 

 

(44

)

Unrealized gains (losses) recognized during the period

   on securities still held at June 30, 2020 and 2019(1)

 

$

605

 

 

$

131

 

 

$

(279

)

 

$

526

 

 

(1)

Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date

The fair value of Dominion Energy’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2020 by contractual maturity is as follows:

 

 

 

Amount

 

(millions)

 

 

 

 

Due in one year or less

 

$

212

 

Due after one year through five years

 

 

486

 

Due after five years through ten years

 

 

485

 

Due after ten years

 

 

769

 

Total

 

$

1,952

 

 
Marketable Securities

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

1,058

 

 

$

376

 

 

$

1,660

 

 

$

882

 

Realized gains(1)

 

 

74

 

 

 

56

 

 

 

140

 

 

 

99

 

Realized losses(1)

 

 

61

 

 

 

27

 

 

 

130

 

 

 

50

 

 

(1)

Includes realized gains and losses recorded to the nuclear decommissioning trust regulatory liability.
Virginia Electric and Power Company  
Equity and Debt Securities and Cash Equivalents and Cost Method Investments in Decommissioning Trust Funds Virginia Power’s decommissioning trust funds are summarized below:

 

 

 

Amortized

Cost

 

 

Total

Unrealized

Gains

 

 

Total

Unrealized

Losses

 

 

Allowance for Credit Losses

 

 

Fair

Value

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

901

 

 

$

1,028

 

 

$

(46

)

 

$

—

 

 

$

1,883

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

328

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

354

 

Government securities

 

 

467

 

 

 

23

 

 

 

(1

)

 

 

—

 

 

 

489

 

Common/collective trust funds

 

 

57

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

57

 

Cash equivalents and other(3)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Total

 

$

1,752

 

 

$

1,077

 

 

$

(47

)

(4)

$

—

 

(5)

$

2,782

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

894

 

 

$

1,144

 

 

$

(11

)

 

$

—

 

 

$

2,027

 

Fixed income securities:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

241

 

 

 

15

 

 

 

—

 

 

 

—

 

 

 

256

 

Government securities

 

 

534

 

 

 

14

 

 

 

(2

)

 

 

—

 

 

 

546

 

Common/collective trust funds

 

 

51

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51

 

Cash equivalents and other

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Total

 

$

1,721

 

 

$

1,173

 

 

$

(13

)

(4)

$

—

 

 

$

2,881

 

 

(1)

Unrealized gains and losses on equity securities are included in other income and the nuclear decommissioning trust regulatory liability.

(2)

Unrealized gains and losses on fixed income securities are included in AOCI and the nuclear decommissioning trust regulatory liability. Effective January 2020, changes in allowance for credit losses are included in other income.

(3)

Includes pending purchases of securities of $1 million at June 30, 2020.

(4)

The fair value of securities in an unrealized loss position was $74 million and $185 million at June 30, 2020 and December 31, 2019, respectively.

(5)

The allowance for credit losses associated with fixed income securities decreased from March 31, 2020 by $12 million.  These recoveries are a result of improvements in credit spreads experienced in the market between March 31, 2020 and June 30, 2020.     
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,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) recognized during the period

 

$

269

 

 

$

70

 

 

$

(154

)

 

$

256

 

Less: Net (gains) losses recognized during the period

   on securities sold during the period

 

 

(3

)

 

 

(7

)

 

 

3

 

 

 

(8

)

Unrealized gains (losses) recognized during the period

   on securities still held at June 30, 2020 and 2019(1)

 

$

266

 

 

$

63

 

 

$

(151

)

 

$

248

 

 

(1)

Included in other income and the nuclear decommissioning trust regulatory liability.
Investments Classified by Contractual Maturity Date

The fair value of Virginia Power’s fixed income securities with readily determinable fair values held in nuclear decommissioning trust funds at June 30, 2020 by contractual maturity is as follows:

 

 

 

Amount

 

(millions)

 

 

 

 

Due in one year or less

 

$

79

 

Due after one year through five years

 

 

227

 

Due after five years through ten years

 

 

273

 

Due after ten years

 

 

321

 

Total

 

$

900

 

 
Marketable Securities

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

236

 

 

$

194

 

 

$

530

 

 

$

447

 

Realized gains(1)

 

 

24

 

 

 

15

 

 

 

55

 

 

 

25

 

Realized losses(1)

 

 

17

 

 

 

3

 

 

 

48

 

 

 

12

 

 

(1)

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