Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 20. Employee Benefit Plans

Dominion Energy

The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income, except for $3 million and $12 million for the three and nine months ended September 30, 2020, respectively, and $4 million and $12 million for the three and nine months ended September 30, 2019, respectively, presented in discontinued operations. The non-service cost components of net period benefit (credit) cost are reflected in other income in Dominion Energy’s Consolidated Statements of Income. The components of Dominion Energy’s provision for net periodic benefit cost (credit) are as follows:

	Pension Benefits						Other Postretirement Benefits
	2020			2019			2020			2019
(millions)
Three Months Ended September 30,
Service cost	$	45		$	41		$	8		$	7
Interest cost		82			97			15			17
Expected return on plan assets		(197	)		(177	)		(39	)		(37	)
Amortization of prior service cost (credit)		(1	)		—			(12	)		(13	)
Amortization of net actuarial loss		58			42			1			2
Settlements and curtailments(1)		3			2			—			—
Net periodic benefit cost (credit)	$	(10	)	$	5		$	(27	)	$	(24	)
Nine Months Ended September 30,
Service cost	$	131		$	121		$	22		$	20
Interest cost		263			296			45			51
Expected return on plan assets		(582	)		(530	)		(117	)		(105	)
Amortization of prior service cost (credit)		—			1			(37	)		(39	)
Amortization of net actuarial loss		155			124			4			9
Settlements and curtailments(1)		5			75			—			42
Net periodic benefit cost (credit)	$	(28	)	$	87		$	(83	)	$	(22	)

(1) 2019 amounts relate primarily to a voluntary retirement program.

In October 2020, Dominion Energy reached an agreement with a collective bargaining unit to merge a portion of a pension plan sponsored by Dominion Energy into the Dominion Energy Pension Plan. As a condition to this agreement, Dominion Energy will provide certain benefits to the retirees represented by the collective bargaining unit and expects to record a charge of $25 million ($19 million after-tax) in the fourth quarter of 2020.

Voluntary Retirement Program

In March 2019, the Companies announced a voluntary retirement program to employees that meet certain age and service requirements. In the second quarter of 2019, upon the determinations made concerning the number of employees that elected to participate in the program, Dominion Energy recorded a charge of $423 million ($316 million after-tax) included within other operations and maintenance expense ($247 million), other taxes ($21 million), other income ($111 million) and discontinued operations ($44 million) and Virginia Power recorded a charge of $194 million ($144 million after-tax) included within other operations and maintenance expense ($186 million)  and other taxes ($8 million) in their respective Consolidated Statements of Income. See Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

Pension Remeasurement

In the third quarter of 2020, Dominion Energy remeasured certain pension plans due to a curtailment resulting from entering an agreement to sell substantially all of its gas transmission and storage operations to BHE. The remeasurement resulted in an increase in the pension benefit obligation of $497 million and a decrease in the fair value of the pension plan assets of $87 million. The impact of the remeasurement on net periodic pension benefit cost (credit) was recognized prospectively from the remeasurement date. The remeasurement is expected to increase the net periodic benefit credit by approximately $4 million for the year ending December 31, 2020, excluding the impacts of curtailments. The discount rate used for the remeasurement was 3.11% - 3.16% with all other assumptions used for the remeasurement consistent with the measurement as of December 31, 2019. 

Employer Contributions

During the nine months ended September 30, 2020, Dominion Energy made no contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy expects to utilize $250 million of the proceeds from the GT&S Transaction to contribute to its qualified defined benefit pension plans by the end of 2020. Dominion Energy does not expect to make any contributions to VEBAs associated with its other postretirement plans in 2020.