Leases (Tables)

12 Months Ended

Dec. 31, 2020

Lease Assets and Liabilities Recorded in Consolidated Balance Sheets

At December 31, 2020 and 2019, the Companies had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:

	December 31, 2020		December 31, 2019
(millions)
Dominion Energy
Lease assets:
Operating lease assets⁽¹⁾	$	564	$	462
Finance lease assets⁽²⁾		148		134
Total lease assets	$	712	$	596
Lease liabilities:
Operating lease liabilities⁽³⁾	$	54	$	53
Finance lease liabilities⁽⁴⁾		32		27
Total lease liabilities - current		86		80
Operating lease liabilities ⁽⁵⁾		516		413
Finance lease liabilities⁽⁶⁾		108		100
Total lease liabilities - noncurrent		624		513
Total lease liabilities	$	710	$	593
Virginia Power
Operating lease assets⁽¹⁾	$	185	$	212
Finance lease assets⁽²⁾		45		19
Total lease assets	$	230	$	231
Lease liabilities:
Operating lease liabilities⁽³⁾	$	28	$	30
Finance lease liabilities⁽⁴⁾		8		3
Total lease liabilities - current		36		33
Operating lease liabilities ⁽⁵⁾		155		180
Finance lease liabilities⁽⁶⁾		36		16
Total lease liabilities - noncurrent		191		196
Total lease liabilities	$	227	$	229

(1)	Included in other deferred charges and other assets in the Companies’ Consolidated Balance Sheets.

(2)

Included in property, plant and equipment in the Companies’ Consolidated Balance Sheets, net of $50 million and $9 million of accumulated amortization at Dominion Energy and Virginia Power, respectively, at December 31, 2020 and net of $26 million and $4 million of accumulated amortization at Dominion Energy and Virginia Power, respectively, at December 31, 2019.

(3)	Included in other current liabilities in the Companies’ Consolidated Balance Sheets.

(4)	Included in securities due within one year in the Companies’ Consolidated Balance Sheets.

(5)	Included in other deferred credits and other liabilities in the Companies’ Consolidated Balance Sheets.

(6)	Included in other long-term debt in the Companies’ Consolidated Balance Sheets.

Summary of Total Lease Cost

For the years ended December 31, 2020 and 2019, total lease cost associated with the Companies’ leasing arrangements consisted of the following:

	Year Ended December 31, 2020		Year Ended December 31, 2019
(millions)
Dominion Energy
Finance lease cost:
Amortization	$	33	$	20
Interest		—		4
Operating lease cost		68		79
Short-term lease cost		20		26
Variable lease cost		8		5
Total lease cost	$	129	$	134
Virginia Power
Operating lease cost	$	36	$	41
Short-term lease cost		12		13
Variable lease cost		4		2
Total lease cost	$	52	$	56

Cash Paid for Amounts Included in Measurement of Lease Liabilities

For the years ended December 31, 2020 and 2019, cash paid for amounts included in the measurement of the lease liabilities consisted of the following amounts, included in the Companies’ Consolidated Statements of Cash Flows:

	Year Ended December 31, 2020		Year Ended December 31, 2019
(millions)
Dominion Energy
Operating cash flows for finance leases	$	—	$	4
Operating cash flows for operating leases		96		111
Financing cash flows for finance leases		33		20
Virginia Power
Operating cash flows for operating leases		52		56

Weighted Average Remaining Lease Term and Weighted Discounted Rate for Finance and Operating Leases

At December 31, 2020 and 2019, the weighted average remaining lease term and weighted discount rate for the Companies’ finance and operating leases were as follows:

	December 31, 2020			December 31, 2019
Dominion Energy
Weighted average remaining lease term - finance leases	5 years			5 years
Weighted average remaining lease term - operating leases	26 years			22 years
Weighted average discount rate - finance leases		3.17	%		3.83	%
Weighted average discount rate - operating leases		4.07	%		4.48	%
Virginia Power
Weighted average remaining lease term - finance leases	6 years			6 years
Weighted average remaining lease term - operating leases	21 years			20 years
Weighted average discount rate - finance leases		2.51	%		4.12	%
Weighted average discount rate - operating leases		4.26	%		4.29	%

Scheduled Maturities of Lease Liabilities

The Companies’ lease liabilities have the following maturities:

Maturity of Lease Liabilities	Dominion Energy						Virginia Power
(millions)	Operating			Finance			Operating			Finance
2021	$	64		$	36		$	31		$	9
2022		56			34			25			8
2023		47			31			20			8
2024		40			29			15			7
2025		34			21			11			6
After 2025		756			14			194			9
Total undiscounted lease payments		997			165			296			47
Present value adjustment		(427	)		(25	)		(113	)		(3	)
Present value of lease liabilities	$	570		$	140		$	183		$	44