XML 62 R43.htm IDEA: XBRL DOCUMENT v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Inputs, Assets, Quantitative Information

The following table presents Dominion Energy’s quantitative information about Level 3 fair value measurements at December 31, 2021. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.

 

 

 

Fair Value (millions)

 

 

Valuation Techniques

 

Unobservable Input

 

 

Range

 

Weighted Average(1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

54

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2)-8

 

 

(1

)

FTRs

 

 

51

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(2)-11

 

 

2

 

Electricity

 

 

120

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

28-72

 

 

43

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

5

 

 

Option model

 

Market price (per Dth)

(3)

 

3-9

 

 

6

 

 

 

 

 

 

 

 

 

Price volatility

(4)

 

19% - 27%

 

 

24

%

Total assets

 

$

230

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

3

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2)-4

 

 

(1

)

FTRs

 

 

5

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(3)-7

 

 

1

 

Total liabilities

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Averages weighted by volume.

(2)

Includes basis.  

 

(3)

Represents market prices beyond defined terms for Levels 1 and 2.

(4)

Represents volatilities unrepresented in published markets.

Fair Value, Option, Qualitative Disclosures

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable Inputs

 

Position

 

Change to Input

 

Impact on Fair Value Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)

Price volatility

 

Buy

 

Increase (decrease)

 

Gain (loss)

Price volatility

 

Sell

 

Increase (decrease)

 

Loss (gain)

 
Fair Value, by Balance Sheet Grouping

The following table presents Dominion Energy’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

52

 

 

$

230

 

 

$

282

 

Interest rate

 

 

—

 

 

 

323

 

 

 

—

 

 

 

323

 

Foreign currency exchange rate

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

5,241

 

 

 

—

 

 

 

—

 

 

 

5,241

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

881

 

 

 

—

 

 

 

881

 

Government securities

 

 

199

 

 

 

1,256

 

 

 

—

 

 

 

1,455

 

Cash equivalents and other

 

 

(29

)

 

 

—

 

 

 

—

 

 

 

(29

)

Total assets

 

$

5,411

 

 

$

2,520

 

 

$

230

 

 

$

8,161

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

461

 

 

$

8

 

 

$

469

 

Interest rate

 

 

—

 

 

 

399

 

 

 

—

 

 

 

399

 

Total liabilities

 

$

—

 

 

$

860

 

 

$

8

 

 

$

868

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

57

 

 

$

110

 

 

$

167

 

Interest rate

 

 

—

 

 

 

230

 

 

 

—

 

 

 

230

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

4,648

 

 

 

—

 

 

 

—

 

 

 

4,648

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

629

 

 

 

—

 

 

 

629

 

Government securities

 

 

508

 

 

 

730

 

 

 

—

 

 

 

1,238

 

Cash equivalents and other

 

 

32

 

 

 

15

 

 

 

—

 

 

 

47

 

Total assets

 

$

5,188

 

 

$

1,661

 

 

$

110

 

 

$

6,959

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

48

 

 

$

7

 

 

$

55

 

Interest rate

 

 

—

 

 

 

431

 

 

 

—

 

 

 

431

 

Total liabilities

 

$

—

 

 

$

479

 

 

$

7

 

 

$

486

 

 

(1)

Includes investments held in the nuclear decommissioning trusts and rabbi trusts. Excludes $366 million and $340 million of assets at December 31, 2021 and 2020, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Dominion Energy’s assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

 

2021

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1,

 

$

103

 

 

$

(37

)

 

$

64

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue

 

 

(9

)

 

 

—

 

 

 

(1

)

Electric fuel and other energy-related purchases

 

 

10

 

 

 

(33

)

 

 

(22

)

Purchased gas

 

 

—

 

 

 

—

 

 

 

2

 

Discontinued operations

 

 

—

 

 

 

1

 

 

 

—

 

Included in regulatory assets/liabilities

 

 

119

 

 

 

140

 

 

 

(90

)

Settlements

 

 

(10

)

 

 

33

 

 

 

17

 

Purchases

 

 

—

 

 

 

—

 

 

 

(10

)

Sales

 

 

—

 

 

 

(1

)

 

 

6

 

Transfers out of Level 3

 

 

9

 

 

 

—

 

 

 

(3

)

Balance at December 31,

 

$

222

 

 

$

103

 

 

$

(37

)
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments For the Companies’ financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows:

December 31,

 

2021

 

 

2020

 

 

 

Carrying

Amount

 

 

Estimated Fair Value(1)

 

 

Carrying

Amount

 

 

Estimated Fair  Value(1)

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(2)(3)

 

$

35,996

 

 

$

40,947

 

 

$

31,996

 

 

$

38,773

 

Supplemental 364-Day credit facility borrowings

 

 

—

 

 

 

—

 

 

 

225

 

 

 

225

 

Junior subordinated notes(4)

 

 

1,386

 

 

 

1,470

 

 

 

3,411

 

 

 

3,633

 

Virginia Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt(4)

 

$

13,753

 

 

$

16,021

 

 

$

13,207

 

 

$

16,455

 

 

(1)

Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. All fair value measurements are classified as Level 2. The carrying amount of debt issuances with short-term maturities and variable rates refinanced at current market rates is a reasonable estimate of their fair value.

(2)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs and discount or premium. At December 31, 2021 and December 31, 2020, the carrying amount includes the valuation of certain fair value hedges associated with fixed rate debt of $2 million and $3 million, respectively.

(3)

Includes amounts classified as held for sale at December 31, 2020, see Note 3.

(4)

Carrying amount includes current portions included in securities due within one year and amounts which represent the unamortized debt issuance costs, discount or premium.
Virginia Electric and Power Company  
Fair Value Inputs, Assets, Quantitative Information

The following table presents Virginia Power’s quantitative information about Level 3 fair value measurements at December 31, 2021. The range and weighted average are presented in dollars for market price inputs and percentages for price volatility.

 

 

 

Fair Value (millions)

 

 

Valuation Techniques

 

Unobservable Input

 

 

Range

 

Weighted Average(1)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

54

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2)-6

 

 

(1

)

FTRs

 

 

51

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(2)-11

 

 

2

 

Physical options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

5

 

 

Option model

 

Market price (per Dth)

(3)

 

3-9

 

 

6

 

 

 

 

 

 

 

 

 

Price volatility

(4)

 

19% - 27%

 

 

24

%

Total assets

 

$

110

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Physical and financial forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas(2)

 

$

3

 

 

Discounted cash flow

 

Market price (per Dth)

(3)

 

(2)-4

 

 

(1

)

FTRs

 

 

5

 

 

Discounted cash flow

 

Market price (per MWh)

(3)

 

(3)-7

 

 

1

 

Total liabilities

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Averages weighted by volume.

(2)

Includes basis.

(3)

Represents market prices beyond defined terms for Levels 1 and 2.

(4)

Represents volatilities unrepresented in published markets.

 
Fair Value, Option, Qualitative Disclosures

Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:

 

Significant Unobservable Inputs

 

Position

 

Change to Input

 

Impact on Fair Value Measurement

Market price

 

Buy

 

Increase (decrease)

 

Gain (loss)

Market price

 

Sell

 

Increase (decrease)

 

Loss (gain)

Price volatility

 

Buy

 

Increase (decrease)

 

Gain (loss)

Price volatility

 

Sell

 

Increase (decrease)

 

Loss (gain)

 
Fair Value, by Balance Sheet Grouping

The following table presents Virginia Power’s assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

36

 

 

$

110

 

 

$

146

 

Interest rate

 

 

—

 

 

 

146

 

 

 

—

 

 

 

146

 

Foreign currency exchange rate

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,420

 

 

 

—

 

 

 

—

 

 

 

2,420

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

531

 

 

 

—

 

 

 

531

 

Government securities

 

 

93

 

 

 

506

 

 

 

—

 

 

 

599

 

Cash equivalents and other

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

Total assets

 

$

2,510

 

 

$

1,227

 

 

$

110

 

 

$

3,847

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

125

 

 

$

8

 

 

$

133

 

Interest rate

 

 

—

 

 

 

337

 

 

 

—

 

 

 

337

 

Total liabilities

 

$

—

 

 

$

462

 

 

$

8

 

 

$

470

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

5

 

 

$

110

 

 

$

115

 

Interest rate

 

 

—

 

 

 

66

 

 

 

—

 

 

 

66

 

Investments(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,171

 

 

 

—

 

 

 

—

 

 

 

2,171

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt instruments

 

 

—

 

 

 

348

 

 

 

—

 

 

 

348

 

Government securities

 

 

201

 

 

 

309

 

 

 

—

 

 

 

510

 

Cash equivalents and other

 

 

13

 

 

 

—

 

 

 

—

 

 

 

13

 

Total assets

 

$

2,385

 

 

$

728

 

 

$

110

 

 

$

3,223

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity

 

$

—

 

 

$

22

 

 

$

7

 

 

$

29

 

Interest rate

 

 

—

 

 

 

376

 

 

 

—

 

 

 

376

 

Total liabilities

 

$

—

 

 

$

398

 

 

$

7

 

 

$

405

 

 

(1)

Includes investments held in the nuclear decommissioning trusts. Excludes $185 million and $167 million of assets at December 31, 2021 and 2020, respectively, measured at fair value using NAV (or its equivalent) as a practical expedient which are not required to be categorized in the fair value hierarchy.

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the net change in Virginia Power’s assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category:

 

 

 

2021

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1,

 

$

103

 

 

$

(37

)

 

$

60

 

Total realized and unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Electric fuel and other energy-related purchases

 

 

4

 

 

 

(33

)

 

 

(22

)

Included in regulatory assets/liabilities

 

 

(1

)

 

 

140

 

 

 

(88

)

Settlements

 

 

(4

)

 

 

33

 

 

 

13

 

Balance at December 31,

 

$

102

 

 

$

103

 

 

$

(37

)