Operating Segments

6 Months Ended

Jun. 30, 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 presented in discontinued operations, which are discussed in Note 3.  

In the six months ended June 30, 2021, Dominion Energy reported after-tax net expenses of $358 million in the Corporate and Other segment, including $228 million of after-tax net expenses for specific items with $314 million of after-tax net expenses attributable to its operating segments. In the six months ended June 30, 2020, Dominion Energy reported after-tax net expenses of $3.0 billion in the Corporate and Other segment, including $2.9 billion of after-tax net expenses for specific items with $780 million 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:

• $266 million ($199 million after-tax) of charges associated with the settlement of the South Carolina electric base rate case, attributable to Dominion Energy South Carolina;

• A $169 million ($127 million after-tax) loss related to economic hedging activities, attributable to Contracted Assets;

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

• A $77 million ($57 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 $70 million ($53 million after-tax) charge associated with litigation acquired in the SCANA Combination, attributable to Dominion Energy South Carolina;

• A $68 million ($50 million after-tax) charge associated with storm damage and service restoration in Virginia Power’s service territory, attributable to Dominion Energy Virginia; and

• A $44 million ($35 million after-tax) charge related to a revision in estimated recovery of spent nuclear fuel costs associated with the decommissioning of Kewaunee, attributable to Contracted Assets; partially offset by

• A $328 million ($256 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

• Contracted Assets ($226 million after-tax) and;

• Dominion Energy Virginia ($30 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 $751 million ($564 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 $145 million ($115 million after-tax) loss related to investments in nuclear decommissioning trust funds, attributable to:

• Contracted Assets ($100 million after-tax) and;

• Dominion Energy Virginia ($15 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 June 30, 2021
Total revenue from external       customers	$	1,752		$	453	$	679	$	257	$	(115	)	$	11		$	3,037
Intersegment revenue		(5	)		2		2		17		235			(250	)		1
Total operating revenue		1,747			455		681		274		120			(239	)		3,038
Net income from discontinued       operations		—			—		—		—		26			—			26
Net income (loss) attributable to       Dominion Energy		431			95		84		104		(429	)		—			285
Three Months Ended June 30, 2020
Total revenue from external       customers	$	1,818		$	400	$	634	$	234	$	14		$	12		$	3,112
Intersegment revenue		(4	)		2		1		15		228			(248	)		(6	)
Total operating revenue		1,814			402		635		249		242			(236	)		3,106
Net income (loss) from discontinued       operations		—			—		—		51		(2,052	)		—			(2,001	)
Net income (loss) attributable to       Dominion Energy		437			87		75		72		(1,840	)		—			(1,169	)
Six Months Ended June 30, 2021
Total revenue from external       customers	$	3,739		$	1,428	$	1,431	$	525	$	(245	)	$	28		$	6,906
Intersegment revenue		(7	)		3		4		38		465			(501	)		2
Total operating revenue		3,732			1,431		1,435		563		220			(473	)		6,908
Net income from discontinued       operations		—			—		—		—		54			—			54
Net income (loss) attributable to       Dominion Energy		865			346		186		254		(358	)		—			1,293
Six Months Ended June 30, 2020
Total revenue from external       customers	$	3,756		$	1,286	$	1,347	$	522	$	123		$	27		$	7,061
Intersegment revenue		(7	)		6		2		23		470			(511	)		(17	)
Total operating revenue		3,749			1,292		1,349		545		593			(484	)		7,044
Net income (loss) from discontinued       operations		—			—		—		102		(1,874	)		—			(1,772	)
Net income (loss) attributable to       Dominion Energy		866			311		169		183		(2,968	)		—			(1,439	)

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 six months ended June 30, 2021, Virginia Power reported after-tax net expenses of $73 million in the Corporate and Other segment, including $94 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the six months ended June 30, 2020, Virginia Power reported after-tax net expenses of $652 million in the Corporate and Other segment, including $654 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 $77 million ($57 million after-tax) charge for the forgiveness of Virginia retail electric customer accounts in arrears pursuant to Virginia’s 2021 budget process; and

• A $68 million ($50 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 expense for specific items attributable to Virginia Power’s operating segment in 2020 primarily related to a $751 million ($559 million after-tax) charge related to the planned early retirement of certain Virginia Power electric generation facilities.

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

	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended June 30, 2021
Operating revenue	$	1,741	$	—		$	1,741
Net income (loss)		429		(15	)		414
Three Months Ended June 30, 2020
Operating revenue	$	1,805	$	—		$	1,805
Net income		435		55			490
Six Months Ended June 30, 2021
Operating revenue	$	3,722	$	(151	)	$	3,571
Net income (loss)		861		(73	)		788
Six Months Ended June 30, 2020
Operating revenue	$	3,735	$	—		$	3,735
Net income (loss)		862		(652	)		210