Operating Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Operating Segments

Note 21. Operating Segments

The Companies are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies’ primary operating segments is as follows:

Primary Operating Segment	Description of Operations	Dominion Energy	Virginia Power
Dominion Energy Virginia	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
	Regulated electric generation fleet(1)	X	X
Gas Distribution	Regulated gas distribution and storage(2)	X
Dominion Energy South    Carolina	Regulated electric distribution	X
	Regulated electric transmission	X
	Regulated electric generation fleet	X
	Regulated gas distribution and storage	X
Contracted Assets	Nonregulated electric generation fleet	X
	Noncontrolling interest in Cove Point	X

(1) Includes Virginia Power’s nonjurisdictional generation operations.

(2) Includes renewable natural gas operations as well as Wexpro’s gas development and production operations.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

Dominion Energy

The Corporate and Other Segment of Dominion Energy includes its corporate, service company and other functions (including unallocated debt) as well as nonregulated retail energy marketing operations, including Dominion Energy’s noncontrolling interest in Wrangler. In addition, Corporate and Other includes specific items attributable to Dominion Energy’s operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources as well as the net impact of the gas transmission and storage operations held in discontinued operations, which are discussed in Note 3.  

In the three months ended March 31, 2021, Dominion Energy reported after-tax net income of $71 million in the Corporate and Other segment, including $115 million of after-tax net income for specific items with $87 million of after-tax net expenses attributable to its operating segments. In the three months ended March 31, 2020, Dominion Energy reported after-tax net expenses of $1.1 billion in the Corporate and Other segment, including $1.1 billion of after-tax net expenses for specific items with $1.0 billion of after-tax net expenses attributable to its operating segments.

The net expenses for specific items attributable to Dominion Energy’s operating segments in 2021 primarily related to the impact of the following items:

• A $151 million ($112 million after-tax) loss from an unbilled revenue reduction at Virginia Power, attributable to Dominion Energy Virginia;

• A $76 million ($56 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process, attributable to Dominion Energy Virginia;

• A $60 million ($45 million after-tax) charge associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina; and

• A $51 million ($38 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia; partially offset by

• A $134 million ($100 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

• Contracted Assets ($88 million after-tax) and;

• Dominion Energy Virginia ($12 million after-tax); and

• A $130 million ($97 million after-tax) benefit for a change in the CCRO reserve associated with the 2021 Triennial Review, attributable to Dominion Energy Virginia.

The net expense for specific items attributable to Dominion Energy’s operating segments in 2020 primarily related to the impact of the following items:

• A $754 million ($566 million after-tax) charge primarily related to the planned early retirement of certain Virginia Power electric generation facilities, attributable to Dominion Energy Virginia; and

• A $538 million ($410 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

• Contracted Assets ($364 million after-tax) and;

• Dominion Energy Virginia ($46 million after-tax).

In September 2020, Dominion Energy updated its segments. The historical information presented herein has been recast to reflect the current segment presentation. The following table presents segment information pertaining to Dominion Energy’s operations:

	Dominion Energy Virginia			Gas Distribution		Dominion Energy South Carolina		Contracted Assets		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
Three Months Ended March 31, 2021
Total revenue from external customers	$	1,987		$	975	$	752	$	268	$	(130	)	$	17		$	3,869
Intersegment revenue		(2	)		1		2		21		230			(251	)		1
Total operating revenue		1,985			976		754		289		100			(234	)		3,870
Net income from discontinued operations		—			—		—		—		28			—			28
Net income attributable to Dominion       Energy		434			251		102		150		71			—			1,008
Three Months Ended March 31, 2020
Total revenue from external customers	$	1,938		$	886	$	713	$	288	$	109		$	15		$	3,949
Intersegment revenue		(3	)		4		1		8		242			(263	)		(11	)
Total operating revenue		1,935			890		714		296		351			(248	)		3,938
Net income from discontinued operations		—			—		—		51		178			—			229
Net income (loss) attributable to Dominion Energy		429			224		94		111		(1,128	)		—			(270	)

Intersegment sales and transfers for Dominion Energy are based on contractual arrangements and may result in intersegment profit or loss that is eliminated in consolidation, including amounts related to entities presented within discontinued operations.

Virginia Power

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment’s performance or in allocating resources.

In the three months ended March 31, 2021, Virginia Power reported after-tax net expenses of $58 million in the Corporate and Other segment, including $117 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the three months ended March 31, 2020, Virginia Power reported after-tax net expenses of $707 million in the Corporate and Other segment, including $634 million of after-tax net expenses for specific items all of which was attributable to its operating segment.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2021 primarily related to the impact of the following items:

• A $151 million ($112 million after-tax) loss from an unbilled revenue reduction;

• A $76 million ($56 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process; and

• A $51 million ($38 million after-tax) charge associated with storm damage and service restoration in its service territory; partially offset by

• A $130 million ($97 million after-tax) benefit for a change in the CCRO reserve associated with the 2021 Triennial Review.

The net expenses for specific items attributable to Virginia Power’s operating segment in 2020 primarily related to the impact of the following items:

• A $754 million ($561 million after-tax) charge related to the planned early retirement of certain Virginia Power electric generation facilities; and

• A $62 million ($46 million after-tax) loss related to investments in nuclear decommissioning trust funds.

The following table presents segment information pertaining to Virginia Power’s operations:

	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended March 31, 2021
Operating revenue	$	1,981	$	(151	)	$	1,830
Net income (loss)		432		(58	)		374
Three Months Ended March 31, 2020
Operating revenue	$	1,930	$	—		$	1,930
Net income (loss)		427		(707	)		(280	)