SCANA sponsors a noncontributory defined benefit pension plan covering regular, full-time employees hired before January 1, 2014. DESC participates in SCANA's pension plan. SCANA’s policy has been to fund the plan as permitted by applicable federal income tax regulations, as determined by an independent actuary.

The pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and all eligible employees hired subsequently. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits. Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment. Benefits under the cash balance formula will continue to accrue through December 31, 2020, after which date no benefits will be accrued except that participants under the cash balance formula will continue to earn interest credits. Benefits under the final average pay formula will continue to accrue through December 31, 2023, after which date no benefits will be accrued. Once

the benefits under SCANA's pension plan no longer accrue, eligible participants will accrue benefits under a cash balance plan sponsored by Dominion Energy.

In addition to pension benefits, SCANA provides certain unfunded postretirement health care and life insurance benefits to certain active and retired employees. DESC participates in these programs. Retirees hired before January 1, 2011 share in a portion of their medical care cost, while employees hired subsequently are responsible for the full cost of retiree medical benefits elected by them. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits.

The same benefit formula applies to all SCANA subsidiaries participating in the parent sponsored plans and, with regard to the pension plan, there are no legally separate asset pools. The postretirement benefit plans are accounted for as multiple employer plans.

In March 2019, Dominion Energy announced a voluntary retirement program to employees, including employees of DESC, that meet certain age and service requirements. The voluntary retirement program will not compromise safety or DESC’s ability to comply with applicable laws and regulations. In 2019, upon the determinations made concerning the number of employees that elected to participate in the program, DESC recorded a charge of $63 million ($47 million after-tax), of which $51 million was included within other operations and maintenance expense, $3 million within other taxes and $9 million within other income (expense), net. In addition, as a result of the voluntary retirement program, DESC recorded pension plan settlement losses of $16 million within other income (expense), net in 2019.

In the second quarter of 2019, DESC remeasured its pension and other postretirement benefit plans as a result of the voluntary retirement program. The remeasurement resulted in an increase in the pension benefit obligation of $16 million and an increase in the accumulated postretirement benefit obligation of $10 million. In addition, the remeasurement resulted in an increase in the fair value of pension plan assets of $27 million. The impact of the remeasurement on net periodic benefit cost was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 4.07% for the pension plan and 4.08% for the other postretirement benefit plan. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2018.

In the third quarter of 2019, DESC remeasured a pension plan as a result of a settlement from the voluntary retirement program. The settlement and related remeasurement resulted in an increase in the pension benefit obligation of $25 million and an increase in the fair value of the pension plan assets of $35 million for DESC. The impact of the remeasurement on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 3.57%. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2018.

The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for pension benefits and the accumulated benefit obligation for other postretirement benefits are presented below.

	Pension Benefits						Other Postretirement Benefits
(millions)	2020			2019			2020			2019
Benefit obligation, January 1	$	727		$	732		$	214		$	187
Service cost		12			15			3			3
Interest cost		24			28			8			9
Plan participants’ contributions		—			—			2			1
Actuarial (gain) loss		41			47			(31	)		22
Benefits paid		(22	)		(21	)		(13	)		(13	)
Settlements		(40	)		(80	)		—			—
Curtailment		—			6			—			3
Amounts funded to parent		—			—			1			2
Benefit obligation, December 31	$	742		$	727		$	184		$	214

The accumulated benefit obligation for pension benefits for DESC was $732 million at the end of 2020 and $711 million at the end of 2019. The accumulated pension benefit obligation differs from the projected pension benefit obligation above in that it reflects no assumptions about future compensation levels.

Significant assumptions used to determine the above benefit obligations are as follows:

	Pension Benefits						Other Postretirement Benefits
	2020			2019			2020			2019
Annual discount rate used to determine benefit obligation		2.73	%		3.47	%		2.80	%		3.52	%
Assumed annual rate of future salary increases for projected benefit obligation		4.52	%		3.00	%	N/A			N/A
Crediting interest rate for cash balance plans		1.93	%		2.67	%	N/A			N/A

Actuarial losses recognized during 2020 and 2019 in DESC’s pension benefit obligations include a $43 million and a $52 million loss, respectively, resulting from decreases in discount rates. Actuarial gains recognized during 2020 in DESC’s other postretirement benefit obligations include a $51 million gain as a result of a completed experience study and other healthcare-related assumption changes and were partially offset by a $19 million loss resulting from a decrease in the discount rate. Actuarial losses recognized during 2019 in Dominion Energy’s other postretirement benefit obligations include a $25 million loss resulting from a decrease in the discount rate.

A 6.25% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2020. The rate was assumed to decrease gradually to 5.0% in 2025-2026 and to remain at that level thereafter.

	Pension Benefits					Other Postretirement Benefits
At December 31,	2020		2019			2020			2019
(millions)
Fair value of plan assets	$	747	$	725		$	—		$	—
Benefit obligation		742		727			184			214
Funded status	$	5	$	(2	)	$	(184	)	$	(214	)

	Pension Benefits					Other Postretirement Benefits
At December 31,	2020		2019			2020			2019
(millions)
Noncurrent assets	$	5	$	—		$	—		$	—
Current liability		—		—			(11	)		(13	)
Noncurrent liability		—		(2	)		(173	)		(201	)

	Pension Benefits				Other Postretirement Benefits
At December 31,	2020		2019		2020		2019
(millions)
Net actuarial loss	$	4	$	2	$	—	$	2

	Pension Benefits				Other Postretirement Benefits
At December 31,	2020		2019		2020		2019
(millions)
Net actuarial loss	$	114	$	125	$	1	$	29

In connection with the joint ownership of Summer, costs related to pensions attributable to Santee Cooper as of both December 31, 2020 and 2019 totaled $19 million and were recorded within deferred debits. Costs related to other postretirement benefits attributable to Santee Cooper as of December 31, 2020 and 2019 totaled $12 million and $15 million, respectively, and was recorded within deferred debits.

Pension Benefits
(millions)	2020			2019
Fair value of plan assets, January 1	$	725		$	677
Actual return (loss) on plan assets		84			149
Benefits paid		(22	)		(21	)
Settlements		(40	)		(80	)
Fair value of plan assets, December 31	$	747		$	725

The assets of the pension plan are invested in accordance with the objectives of (1) fully funding the obligations of the pension plan, (2) overseeing the plan's investments in an asset-liability framework that considers the funding surplus (or deficit) between assets and liabilities, and overall risk associated with assets as compared to liabilities, and (3) maintaining sufficient liquidity to meet benefit payment obligations on a timely basis. DESC uses a dynamic investment strategy for the management of the pension plan assets. This strategy will lead to a reduction in equities and an increase in long duration fixed income allocations over time with the intention of reducing volatility of funded status and pension costs.

The pension plan operates with several risk and control procedures, including ongoing reviews of liabilities, investment objectives, levels of diversification, investment managers and performance expectations. The total portfolio is constructed and maintained to provide prudent diversification with regard to the concentration of holdings in individual issues, corporations, or industries.

Transactions involving certain types of investments are prohibited. These include, except where utilized by a hedge fund manager, any form of private equity; commodities or commodity contracts (except for unleveraged stock or bond index futures and currency futures and options); ownership of real estate in any form other than publicly traded securities; short sales, warrants or margin transactions, or any leveraged investments; and natural resource properties. Investments made for the purpose of engaging in speculative trading are also prohibited.

The pension plan asset allocation at December 31, 2020 and 2019 and the target allocation for 2021 are as follows:

	Percentage of Plan Assets
	Target Allocation	December 31,
Asset Category	2021	2020			2019
U.S. equities	25 - 40%		34	%		40	%
Non-U.S. equities	10 - 20%		18	%		19	%
Fixed income	45- 65%		47	%		32	%
Cash and cash equivalents	2-10%		1	%		1	%
Company stock	0%		0	%		5	%
Real estate	0%		0	%		3	%

For 2021, the expected long-term rate of return on assets will be 7%. In developing the expected long-term rate of return assumptions, management evaluates the pension plan’s historical cumulative actual returns over several periods, considers the expected active and passive returns across various asset classes and assumes the target allocation is achieved. Management regularly reviews such allocations and periodically rebalances the portfolio when considered appropriate. Additional rebalancing may occur subject to funded status improvements as part of the dynamic investment strategy described previously.

Assets held by the pension plan are measured at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2020 and 2019, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:

At December 31,	2020		2019
(millions)
Investments with fair value measure at Level 1:
Cash and cash equivalents	$	10	$	3
Investments with fair value measure at Level 2:
Mutual funds		—		152
Corporate debt instruments		315		233
Government and other debt instruments		35		26
Total assets in the fair value hierarchy		360		414
Investments at net asset value:
Common collective trust		387		311
Total investments	$	747	$	725

For all periods presented there were no assets with fair value measurements classified as Level 3. There were no transfers of fair value amounts into or out of Levels 1, 2 or 3 during 2020 or 2019.

Mutual funds held by the plan were open-end mutual funds registered with the SEC. The price of the mutual funds' shares is based on its NAV, which is determined by dividing the total value of portfolio investments, less any liabilities, by the total number of shares outstanding. For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. U.S. Treasury securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt instruments and government and other debt instruments are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. In addition, corporate debt instruments include investments in open-end mutual funds registered with the SEC that invest in corporate debt instruments. The price of the mutual funds' shares is based on its NAV, which is determined by dividing the total value of portfolio investments, less any liabilities, by the total number of shares outstanding. Common collective trust assets and limited partnerships are valued at NAV, which has been determined based on the unit values of the trust funds. Unit values are determined by the organization sponsoring such trust funds by dividing the trust funds’ net assets at fair value by the units outstanding at each valuation date. Joint venture interests are invested in a hedge fund of funds partnership that invests directly in multiple hedge fund strategies that are not traded on exchanges and not traded on a daily basis. The valuation of such multi-strategy

hedge fund of funds is estimated based on the NAV of the underlying hedge fund strategies using consistent valuation guidelines that account for variations that may influence their fair value.

Total benefits expected to be paid from the pension plan or company assets for the other postretirement benefits plan (net of participant contributions), respectively, are as follows:

(millions)	Pension Benefits		Other Postretirement Benefits
2021	$	39	$	11
2022		45		11
2023		43		11
2024		45		11
2025		44		11
2026 - 2030		201		55

Under its funding policies, DESC evaluates plan funding requirements annually, usually in the fourth quarter after receiving updated plan information from its actuary. Based on the funded status of each plan and other factors, DESC determines the amount of contributions for the current year, if any, at that time. DESC made no contributions to the pension trust in 2020. DESC expects to make $15 million of the minimum required contributions for its qualified pension plan in 2021.

Net periodic benefit cost is recorded utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables.

	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2020			2019			2018			2020		2019		2018
(millions)
Service cost	$	12		$	15		$	17		$	3	$	3	$	4
Interest cost		24			28			29			8		9		8
Expected return on assets		(45	)		(40	)		(48	)		—		—		—
Prior service cost amortization		—			—			—			—		—		—
Amortization of actuarial losses		6			11			11			—		—		—
Settlement loss		7			16			—			—		—		—
Curtailment		—			6			—			—		3		—
Net periodic benefit cost	$	4		$	36		$	9		$	11	$	15	$	12

In connection with regulatory orders, DESC recovers current pension costs through a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations. For retail electric operations, current pension expense is recognized based on amounts collected through a rate rider, and differences between actual pension expense and amounts recognized pursuant to the rider are deferred as a regulatory asset (for under-collections) or regulatory liability (for over-collections) as applicable. In addition, DESC amortizes certain previously deferred pension costs. See Note 3.

Other changes in plan assets and benefit obligations recognized in other comprehensive income (net of tax) were as follows:

	Pension Benefits							Other Postretirement Benefits
Year Ended December 31,	2020		2019			2018		2020			2019		2018
(millions)
Current year actuarial (gain) loss	$	2	$	(1	)	$	1	$	(2	)	$	1	$	(1	)

Other changes in plan assets and benefit obligations recognized in regulatory assets were as follows:

	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2020			2019			2018			2020			2019		2018
(millions)
Current year actuarial (gain) loss	$	1		$	(51	)	$	41		$	(27	)	$	20	$	(26	)
Amortization of actuarial losses		(6	)		(11	)		(10	)		(1	)		—		(1	)
Settlement loss		(6	)		(16	)		—			—			—		—
Total recognized in regulatory assets	$	(11	)	$	(78	)	$	31		$	(28	)	$	20	$	(27	)

	Pension Benefits			Other Postretirement Benefits
Year Ended December 31,	2020	2019	2018	2020	2019	2018
Discount rate	3.47%	3.57/4.38%	3.71%	2.80%	4.08/4.41%	3.74%
Expected return on plan assets	7.00%	7.00%	7.00%	n/a	n/a	n/a
Rate of compensation increase	3.00%	3.00%	3.00%	n/a	n/a	n/a
Crediting interest rate for cash balance plans	2.67%	2.77/3.58%	4.00%	n/a	n/a	n/a
Health care cost trend rate				6.25%	6.60%	7.00%
Ultimate health care cost trend rate				5.00%	5.00%	5.00%
Year achieved				2025-2026	2023	2023

SCANA sponsors a defined contribution plan in which eligible employees may defer up to 75% of eligible earnings subject to certain limits and may diversify their investments. DESC participates in this plan. Contributions are matched 100% up to 6% of an employee’s eligible earnings. The matching contributions made by DESC totaled $14 million in both 2020 and 2019 and $20 million in 2018. Employee deferrals, matching contributions, and earnings on all contributions are fully vested and non-forfeitable at all times.