XML 57 R41.htm IDEA: XBRL DOCUMENT

Derivatives and Hedge Accounting Activities (Tables)

6 Months Ended

Jun. 30, 2021

The tables below present Dominion Energy’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	June 30, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	114	$	13	$	—	$	101	$	117	$	9	$	—	$	108
Exchange		22		18		—		4		49		24		—		25
Interest rate contracts:
Over-the-counter		468		26		—		442		230		13		—		217
Total derivatives, subject to a master netting or similar arrangement	$	604	$	57	$	—	$	547	$	396	$	46	$	—	$	350

(1)	Excludes $12 million and $1 million of derivative assets at June 30, 2021 and December 31, 2020, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	June 30, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	49	$	13	$	9	$	27	$	30	$	9	$	—	$	21
Exchange		168		18		150		—		24		24		—		—
Interest rate contracts:
Over-the-counter		329		26		11		292		431		13		17		401
Total derivatives, subject to a master netting or similar arrangement	$	546	$	57	$	170	$	319	$	485	$	46	$	17	$	422

(1)	Excludes $28 million and $1 million of derivative liabilities at June 30, 2021 and December 31, 2020, respectively, which are not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of Dominion Energy’s derivative activity at June 30, 2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		59		14
Basis		202		471
Electricity (MWh):
Fixed price		12,116,472		30,423,292
FTRs		98,414,736		—
Interest rate⁽²⁾ (millions)	$	1,250	$	8,000

(1)	Includes options.

(2)	Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to losses on cash flow hedges included in AOCI in Dominion Energy’s Consolidated Balance Sheet at June 30, 2021:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(371	)	$	(43	)	390 months
Total	$	(371	)	$	(43	)

Schedule of Amounts Recorded on Balance Sheet Related to Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:

	Carrying Amount of the Hedged Asset (Liability)⁽¹⁾						Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets (Liabilities)⁽²⁾
	June 30, 2021			December 31, 2020			June 30, 2021			December 31, 2020
(millions)
Long-term debt	$	(1,153	)	$	(1,153	)	$	(3	)	$	(3	)

(1)	Includes $(1.2) billion related to discontinued hedging relationships at both June 30, 2021 and December 31, 2020.

(2)	Includes $(3) million of hedging adjustments on discontinued hedging relationships at both June 30, 2021 and December 31, 2020.

Fair Value of Derivatives

Fair Value and Gains and Losses on Derivative Instruments

The following table presents the fair values of Dominion Energy’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
June 30, 2021
ASSETS
Current Assets
Commodity	$	—	$	76	$	76
Interest rate		—		24		24
Total current derivative assets⁽¹⁾		—		100		100
Noncurrent Assets
Commodity		—		72		72
Interest rate		172		272		444
Total noncurrent derivative assets⁽²⁾		172		344		516
Total derivative assets	$	172	$	444	$	616
LIABILITIES
Current Liabilities
Commodity	$	—	$	172	$	172
Interest rate		253		10		263
Total current derivative liabilities⁽³⁾		253		182		435
Noncurrent Liabilities
Commodity		—		73		73
Interest rate		31		35		66
Total noncurrent derivative liabilities⁽⁴⁾		31		108		139
Total derivative liabilities	$	284	$	290	$	574
December 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	58	$	58
Interest rate		—		9		9
Total current derivative assets⁽¹⁾		—		67		67
Noncurrent Assets
Commodity		—		109		109
Interest rate		66		155		221
Total noncurrent derivative assets⁽²⁾		66		264		330
Total derivative assets	$	66	$	331	$	397
LIABILITIES
Current Liabilities
Commodity	$	—	$	42	$	42
Interest rate		363		10		373
Total current derivative liabilities⁽³⁾		363		52		415
Noncurrent Liabilities
Commodity		—		13		13
Interest rate		19		39		58
Total noncurrent derivative liabilities⁽⁴⁾		19		52		71
Total derivative liabilities	$	382	$	104	$	486

(1)	Current derivative assets include $87 million and $63 million in other current assets in Dominion Energy’s Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, respectively. The remainder is recorded in current assets held for sale in Dominion Energy’s Consolidated Balance Sheets.

(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Dominion Energy’s Consolidated Balance Sheets.

(3)

Current derivative liabilities include $428 million and $412 million in other current liabilities in Dominion Energy’s Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, respectively. The remainder is in current liabilities held for sale in Dominion Energy’s Consolidated Balance Sheets.

(4)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Dominion Energy’s Consolidated Balance Sheets.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on Dominion Energy’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income.

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended June 30, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(21	)	$	(16	)	$	(219	)
Total	$	(21	)	$	(16	)	$	(219	)
Three Months Ended June 30, 2020
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	8
Discontinued operations					1
Total commodity	$	—		$	9		$	—
Interest rate:
Interest and related charges					(18	)
Discontinued operations					(4	)
Total interest rate		—			(22	)		14
Foreign currency⁽⁴⁾		6			6			—
Total	$	6		$	(7	)	$	14
Six Months Ended June 30, 2021
Derivative type and location of gains (losses):
Commodity:
Purchased gas				$	(1	)
Total commodity	$	—		$	(1	)	$	—
Interest rate ⁽³⁾		31			(32	)		189
Total	$	31		$	(33	)	$	189
Six Months Ended June 30, 2020
Derivative type and location of gains (losses):
Commodity:
Operating revenue				$	14
Purchased gas					(3	)
Discontinued operations					2
Total commodity	$	—		$	13		$	—
Interest rate:
Interest and related charges					(43	)
Discontinued operations					(6	)
Total interest rate		(336	)		(49	)		(550	)
Foreign currency⁽⁴⁾		(17	)		—			—
Total	$	(353	)	$	(36	)	$	(550	)

(1)	Amounts deferred into AOCI have no associated effect in Dominion Energy’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

(3) Amounts recorded in Dominion Energy’s Consolidated Statement of Income are classified in interest and related charges.

(4) Amounts recorded in Dominion Energy’s Consolidated Statement of Income are classified in discontinued operations.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	(146	)	$	(5	)	$	(187	)	$	46
Purchased gas		7			1			7			(10	)
Electric fuel and other energy-related purchases		7			(8	)		(37	)		(73	)
Discontinued operations		—			(6	)		—			5
Interest rate:
Interest and related charges		(157	)		(25	)		162			(78	)
Discontinued operations		—			—			—			(8	)
Total	$	(289	)	$	(43	)	$	(55	)	$	(118	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Dominion Energy’s Consolidated Statements of Income.

Virginia Electric and Power Company

Offsetting Assets

The tables below present Virginia Power’s derivative asset and liability balances by type of financial instrument, if the gross amounts recognized in its Consolidated Balance Sheets were netted with derivative instruments and cash collateral received or paid:

	June 30, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts		Gross Assets Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Received		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	84	$	10	$	—	$	74	$	111	$	6	$	—	$	105
Exchange		1		1		—		—	1		1			—		—
Interest rate contracts:
Over-the-counter		172		19		—		153	66		7			—		59
Total derivatives, subject to a master netting or similar arrangement	$	257	$	30	$	—	$	227	$	178	$	14	$	—	$	164

(1)	Excludes $26 million and $3 million of derivative assets at June 30, 2021 and December 31, 2020, respectively, which are not subject to master netting or similar arrangements.

Offsetting Liabilities

	June 30, 2021								December 31, 2020
	Gross Amounts Not Offset in the Consolidated Balance Sheet								Gross Amounts Not Offset in the Consolidated Balance Sheet
	Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts		Gross Liabilities Presented in the Consolidated Balance Sheet⁽¹⁾		Financial Instruments		Cash Collateral Paid		Net Amounts
(millions)
Commodity contracts:
Over-the-counter	$	42	$	10	$	9	$	23	$	6	$	6	$	—	$	—
Exchange		8		1		7		—	1		1			—		—
Interest rate contracts:
Over-the-counter		283		19		—		264	376		7			—		369
Total derivatives, subject to a master netting or similar arrangement	$	333	$	30	$	16	$	287	$	383	$	14	$	—	$	369

(1)	Excludes $2 million and $22 million of derivative liabilities at June 30, 2021 and December 31, 2020, respectively, which are not subject to master netting or similar arrangements.

Schedule of Volume of Derivative Activity

The following table presents the volume of Virginia Power’s derivative activity at June 30, 2021. These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions.

	Current		Noncurrent
Natural Gas (bcf):
Fixed price⁽¹⁾		29		14
Basis		143		464
Electricity (MWh):
Fixed price		3,852,994		3,271,323
FTRs		98,414,736		—
Interest rate⁽²⁾ (millions)	$	850	$	1,900

(1)	Includes options.

(2)	Maturity is determined based on final settlement period.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents selected information related to losses on cash flow hedges included in AOCI in Virginia Power’s Consolidated Balance Sheet at June 30, 2021:

	AOCI After-Tax			Amounts Expected to be Reclassified to Earnings During the Next 12 Months After-Tax			Maximum Term
(millions)
Interest rate	$	(39	)	$	(2	)	390 months
Total	$	(39	)	$	(2	)

Fair Value of Derivatives

The following table presents the fair values of Virginia Power’s derivatives and where they are presented in its Consolidated Balance Sheets:

	Fair Value – Derivatives under Hedge Accounting		Fair Value – Derivatives not under Hedge Accounting		Total Fair Value
(millions)
June 30, 2021
ASSETS
Current Assets
Commodity	$	—	$	52	$	52
Total current derivative assets⁽¹⁾		—		52		52
Noncurrent Assets
Commodity		—		59		59
Interest rate		172		—		172
Total noncurrent derivative assets⁽²⁾		172		59		231
Total derivative assets	$	172	$	111	$	283
LIABILITIES
Current Liabilities
Commodity	$	—	$	43	$	43
Interest rate		253		—		253
Total current derivative liabilities		253		43		296
Noncurrent Liabilities
Commodity		—		9		9
Interest rate		30		—		30
Total noncurrent derivative liabilities⁽³⁾		30		9		39
Total derivative liabilities	$	283	$	52	$	335
December 31, 2020
ASSETS
Current Assets
Commodity	$	—	$	22	$	22
Total current derivative assets⁽¹⁾		—		22		22
Noncurrent Assets
Commodity		—		93		93
Interest rate		66		—		66
Total noncurrent derivative assets⁽²⁾		66		93		159
Total derivative assets	$	66	$	115	$	181
LIABILITIES
Current Liabilities
Commodity	$	—	$	28	$	28
Interest rate		362		—		362
Total current derivative liabilities		362		28		390
Noncurrent Liabilities
Commodity		—		1		1
Interest rate		14		—		14
Total noncurrent derivative liabilities⁽³⁾		14		1		15
Total derivative liabilities	$	376	$	29	$	405

(1)	Current derivative assets are presented in other current assets in Virginia Power’s Consolidated Balance Sheets.

(2)	Noncurrent derivative assets are presented in other deferred charges and other assets in Virginia Power’s Consolidated Balance Sheets.

(3)	Noncurrent derivative liabilities are presented in other deferred credits and other liabilities in Virginia Power’s Consolidated Balance Sheets.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables present the gains and losses on Virginia Power’s derivatives, as well as where the associated activity is presented in its Consolidated Balance Sheets and Statements of Income:

Derivatives in cash flow hedging relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives⁽¹⁾			Amount of Gain (Loss) Reclassified From AOCI to Income			Increase (Decrease) in Derivatives Subject to Regulatory Treatment⁽²⁾
(millions)
Three Months Ended June 30, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(17	)	$	—		$	(221	)
Total	$	(17	)	$	—		$	(221	)
Three Months Ended June 30, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	2		$	(1	)	$	13
Total	$	2		$	(1	)	$	13
Six Months Ended June 30, 2021
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	26		$	(1	)	$	186
Total	$	26		$	(1	)	$	186
Six Months Ended June 30, 2020
Derivative type and location of gains (losses):
Interest rate⁽³⁾	$	(59	)	$	(1	)	$	(552	)
Total	$	(59	)	$	(1	)	$	(552	)

(1)	Amounts deferred into AOCI have no associated effect in Virginia Power’s Consolidated Statements of Income.

(2)	Represents net derivative activity deferred into and amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.

(3)	Amounts recorded in Virginia Power’s Consolidated Statements of Income are classified in interest and related charges.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance

Derivatives not designated as hedging instruments	Amount of Gain (Loss) Recognized in Income on Derivatives⁽¹⁾
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
(millions)
Derivative type and location of gains (losses):
Commodity:
Operating revenue	$	(4	)	$	—		$	(6	)	$	—
Electric fuel and other energy-related purchases		7			(8	)		(37	)		(73	)
Total	$	3		$	(8	)	$	(43	)	$	(73	)

(1)	Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Virginia Power’s Consolidated Statements of Income.