Operating Segments

9 Months Ended

Sep. 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 nine months ended September 30, 2021, Dominion Energy reported after-tax net expenses of $642 million in the Corporate and Other segment, including $492 million of after-tax net expenses for specific items with $617 million of after-tax net expenses attributable to its operating segments. In the nine months ended September 30, 2020, Dominion Energy reported after-tax net expenses of $3.6 billion in the Corporate and Other segment, including $3.4 billion of after-tax net expenses for specific items with $1.3 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 $447 million ($336 million after-tax) loss related to economic hedging activities, attributable to Contracted Assets;

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

• A $119 million ($89 million after-tax) net charge associated with the proposed settlement of the 2021 Triennial Review, 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 $309 million ($248 million after-tax) gain related to investments in nuclear decommissioning trust funds, attributable to:

• Contracted Assets ($218 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 expected CCRO to be provided to Virginia retail electric customers under the GTSA, 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;

• A $405 million ($298 million after-tax) charge associated with certain nonregulated solar generation facilities, attributable to Contracted Assets;

• A $221 million ($171 million after-tax) charge associated with the sale of Fowler Ridge, attributable to Contracted Assets; and

• A $200 million ($149 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric utility customers under the GTSA, attributable to Dominion Energy Virginia.

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 September 30, 2021
Total revenue from external       customers	$	2,333		$	372	$	799	$	265	$	(612	)	$	18		$	3,175
Intersegment revenue		(3	)		1		1		17		221			(236	)		1
Total operating revenue		2,330			373		800		282		(391	)		(218	)		3,176
Net income from discontinued       operations		—			—		—		—		65			—			65
Net income (loss) attributable to       Dominion Energy		599			69		151		119		(284	)		—			654
Three Months Ended September 30, 2020
Total revenue from external       customers	$	2,257		$	311	$	758	$	288	$	(11	)	$	9		$	3,612
Intersegment revenue		(3	)		3		1		13		233			(252	)		(5	)
Total operating revenue		2,254			314		759		301		222			(243	)		3,607
Net income (loss) from discontinued       operations		—			—		—		51		(32	)		—			19
Net income (loss) attributable to       Dominion Energy		613			64		157		112		(590	)		—			356
Nine Months Ended September 30, 2021
Total revenue from external       customers	$	6,072		$	1,800	$	2,230	$	790	$	(857	)	$	46		$	10,081
Intersegment revenue		(10	)		4		5		55		686			(737	)		3
Total operating revenue		6,062			1,804		2,235		845		(171	)		(691	)		10,084
Net income from discontinued       operations		—			—		—		—		119			—			119
Net income (loss) attributable to       Dominion Energy		1,464			415		337		373		(642	)		—			1,947
Nine Months Ended September 30, 2020
Total revenue from external       customers	$	6,013		$	1,597	$	2,105	$	810	$	112		$	36		$	10,673
Intersegment revenue		(10	)		9		3		36		703			(763	)		(22	)
Total operating revenue		6,003			1,606		2,108		846		815			(727	)		10,651
Net income (loss) from discontinued       operations		—			—		—		153		(1,906	)		—			(1,753	)
Net income (loss) attributable to       Dominion Energy		1,479			375		326		295		(3,558	)		—			(1,083	)

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 nine months ended September 30, 2021, Virginia Power reported after-tax net expenses of $118 million in the Corporate and Other segment, including $186 million of after-tax net expenses for specific items all of which was attributable to its operating segment. In the nine months ended September 30, 2020, Virginia Power reported after-tax net expenses of $792 million in the Corporate and Other segment, including $815 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 $119 million ($89 million after-tax) net charge associated with the proposed settlement of the 2021 Triennial Review;

• 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 expected CCRO to be provided to Virginia retail electric customers under the GTSA.

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 and a $200 million ($149 million after-tax) charge for the expected CCRO to be provided to Virginia retail electric utility customers under the GTSA.

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

	Dominion Energy Virginia		Corporate and Other			Consolidated Total
(millions)
Three Months Ended September 30, 2021
Operating revenue	$	2,326	$	(350	)	$	1,976
Net income (loss)		601		(45	)		556
Three Months Ended September 30, 2020
Operating revenue	$	2,248	$	—		$	2,248
Net income (loss)		615		(140	)		475
Nine Months Ended September 30, 2021
Operating revenue	$	6,048	$	(501	)	$	5,547
Net income (loss)		1,462		(118	)		1,344
Nine Months Ended September 30, 2020
Operating revenue	$	5,983	$	—		$	5,983
Net income (loss)		1,477		(792	)		685